What are the prospects for online schools in the secondary vocational education sector?

Contents:

• What has so far prevented EdTech from collaborating with colleges
• Will there be demand for secondary vocational education programs offered by EdTech companies?
• Why can't you just repackage a continuing education program as secondary vocational education?
• Are there prospects for collaborating with public colleges?
• EdTech companies can open their own colleges, but it's difficult
• Not everything can be taught online

What has hindered EdTech collaboration with colleges so far?

Andrey Sizov emphasizes that the Russian EdTech market is relatively new, less than fifteen years old. Significant growth in this area has only been observed in the last six years, indicating the rapid development of educational technologies and increasing interest in online learning in Russia.

The first market participants initially focused on the most significant and obvious segments, which were characterized by high demand, product availability, and active competition. As a result, their attention has shifted to continuing vocational education and the educational segment for schoolchildren.

Cooperation with universities often develops faster than with colleges. Vitaly Altukhov emphasizes that colleges lack the strong brands that are typical of universities. This means that EdTech companies must independently invest in creating and promoting their brand in the secondary vocational education (SVE) sector. Alexey Konobeev adds that universities are more open to collaboration than colleges. Furthermore, partnerships with universities are perceived as more prestigious, which can also influence the choice of online schools. Therefore, the successful implementation of educational technologies in SVE requires not only the creation of a strong brand but also active engagement with colleges.

Andrey Sizov and Vitaly Altukhov highlight a key reason for the changing attitudes toward SVE. Previously, this form of education was not popular with a wide audience, which limited the number of interested parties. However, in recent years, interest in secondary vocational education has grown significantly, attracting the attention of EdTech companies. Vitaly explains that the growing demand for secondary vocational education programs is due to several factors: changes in the Unified State Exam (USE), more challenging university entrance exams, the financial implications of long-term education, and the increasing demand for specialists with secondary vocational education in the labor market. This trend opens up new opportunities for the development of educational technologies in this segment.

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Secondary vocational education in Russia plays a key role in the training of qualified specialists. Here are five key facts that will help you better understand its importance and features.

First, secondary vocational education in Russia provides young people with the opportunity to obtain in-demand professions, such as medical workers, technicians, and service specialists. This education opens the door to a successful career and a stable income.

Second, the Russian system of secondary vocational education includes both public and private educational institutions. This diversity allows applicants to choose the appropriate program depending on their interests and capabilities.

Third, in recent years, there has been an active implementation of modern educational technologies and programs, which contributes to the improvement of the quality of education. Educational institutions strive to integrate practical classes and internships, which allows students to acquire real-world skills.

Fourth, secondary vocational education often becomes the basis for further education. Many graduates continue their education at universities, which provides the opportunity to deepen their knowledge and improve their qualifications.

Fifth, against the backdrop of changes in the economy and the labor market, the demand for specialists with secondary vocational education is growing. Employers value the practical skills and work readiness of young professionals, making such education relevant in today's environment.

Thus, secondary vocational education in Russia is an important stage in personnel training and contributes to the country's economic development.

Will there be demand for secondary vocational programs offered by EdTech companies?

In recent years, there has been a steady increase in the popularity of secondary vocational education. The reasons for this phenomenon are varied, and among them, both negative and positive aspects can be identified. For many young people and their families, the choice of college is a forced one, but statistics show that approximately 20% of secondary vocational students come from affluent families who could afford a paid higher education. This indicates that there is potential for the development of paid programs in secondary vocational education. It's important to note that colleges provide high-quality training and in-demand skills, making them attractive to students seeking a successful career. Olga Lavrentyeva highlighted an important trend that has drawn the attention of EdTech companies to the vocational education system. The labor market is experiencing a shortage of skilled workers, creating demand for relevant education. Government policy is promoting the expansion of opportunities and resources for colleges, which in turn opens up new prospects for the education and training of qualified personnel in in-demand fields.

Foxford's CEO notes that the experience of educational companies pioneering the development of secondary vocational education (SVE) demonstrates its potential and confirms the feasibility of creating in-demand educational products. This, in turn, is driving growing interest in SVE among participants in other EdTech market segments and stimulating them to develop their own solutions. The development of SVE opens new horizons for educational innovation and creates opportunities for the effective growth of both startups and established companies.

Andrey Sizov identifies several key factors driving the development of educational institutions in the field of secondary vocational education (SVE). These drivers may include the introduction of modern technologies into the educational process, adapting educational programs to labor market requirements, and professional development for teachers. Collaborating with employers to create effective internships and internships is also important, allowing students to gain the necessary skills and experience. Improving infrastructure and accessibility of educational resources also play a significant role in the development of educational companies in secondary vocational education.

• Some specialties taught in college can be taught entirely online (these are often the same professions successfully taught in continuing education programs).
• Secondary vocational education programs that begin with the ninth grade include a general education component, which has already been methodologically developed by representatives of the school EdTech segment. It can also be taught online.
• Russian EdTech leaders in other segments have experience that will allow them to create high-quality products in the vocational education and training (SVE) segment, providing users with a convenient platform and support.
• The implementation of SVE programs can extend the customer lifetime value (LTV) for some users: for example, those users who purchased products for preschoolers and students in grades one through nine will later become interested in SVE programs.

Vitaly Altukhov notes that it is currently unclear whether it is possible to develop a profitable EdTech product in the specialized vocational education (SVE) sector and whether commercial SVE can compete with free education in state colleges. This is especially true given that the majority of students in public colleges come from families that are unable or unwilling to pay for long-term education.

According to statistics According to the collection of the Institute for Statistical Studies and Economics of Knowledge at the Higher School of Economics "Education in Figures - 2023", in 2022 a significant number of students were enrolled in programs for training skilled workers and employees at secondary vocational education institutions (SVE). These data emphasize the importance of vocational education for the formation of a qualified workforce and meeting the needs of the labor market. The increase in the number of students in such programs indicates a growing interest among young people in acquiring the practical skills and knowledge necessary for a successful career. The educational process in SVE provides students with not only a theoretical base but also practical skills, which contributes to their successful integration into the professional environment.

• at the expense of budgetary funds - 537,400 people;
• under contract (fee-based) - 39,300 people.

The programs for training mid-level specialists pay special attention to the development of practical skills and theoretical knowledge necessary for a successful career. These programs are aimed at training qualified personnel capable of working effectively in various sectors of the economy. Education includes both lectures and practical training, allowing students to gain valuable experience and confidence. Moreover, such programs often involve collaboration with employers, which promotes graduate employment and increases their competitiveness in the labor market. As a result, graduates of mid-level specialist training programs become sought-after professionals, ready to solve current problems in their field.

• at the expense of budgetary funds - 1,785,300 people;
• under contract (fee-based) - 1,197,800 people.

The most in-demand programs are not vocational specialties, but mid-level specialist training programs. Moreover, 40% of students in these programs study on a fee-paying basis. It should be noted that the cost of tuition at colleges in some cases is almost equal to the cost of tuition at universities. This indicates the growing popularity of community colleges as an alternative to traditional higher education institutions.

Demand for fee-based educational programs in secondary vocational education (SVE) is already evident. However, the number of students choosing private colleges is significantly lower compared to public institutions. In 2022, only about 400,000 people chose private colleges. This indicates that public educational institutions continue to be more popular among students.

Why can't you simply repackage a continuing education program as SVE?

The co-founder of Profilum argues that in order for people to be willing to invest in private secondary vocational education (SVE), it is necessary to develop an educational program that will be valued by employers and that will provide graduates with high employment prospects. Olga Lavrentyeva also emphasizes that educational institutions must focus on creating truly in-demand and useful products in this area. Companies must recognize not only the financial benefits but also the significant benefits they can derive. The core value of EdTech solutions lies in their ability to adapt the educational process to modern conditions, making it more accessible and effective. In the current economic climate, online learning is becoming especially relevant. We are already seeing positive changes in continuing professional and higher education: now people from various regions, regardless of their social status, have the opportunity to learn from leading experts and teachers. Similar transformations can occur in secondary vocational education, opening up new horizons for students.

Mikhail Sumbatyan emphasizes that while a continuing professional education (CPE) program could be integrated into the secondary vocational education (SPE) program and implemented, such a project would not be successful due to high costs and a shortage of experts in the field of secondary vocational education. This points to the need for new strategies. Mikhail notes that EdTech companies typically focus on three main areas: marketing, sales, and the content of educational programs, with an emphasis on online formats. However, they don't always consider the specifics of their target audience—teenagers. "Children come to us, and adults leave." This means that when working with teenagers, it is necessary to take into account age-related psychology and developmental characteristics, which can become an obstacle to cooperation between EdTech and the secondary vocational education system,” he explains.

It's important to consider the interaction with the teacher, mentor, or tutor. Research shows that key factors such as the teacher's personality, the educational environment, core classes, and additional development programs influence student development. Shifting these factors to an online format presents a significant challenge. EdTech companies often overlook this aspect, which can become a barrier to further collaboration with secondary vocational education institutions. Mikhail emphasizes that ignoring these factors can negatively impact the quality of education and student success.

Victoria Khokhryakova, Senior Producer at Skillbox College, highlights a number of challenges EdTech companies face when transitioning to the secondary education segment. One of the main issues is the significantly increased workload on the back office, which is associated with the need to comply with state educational standards. Furthermore, the number of programs for secondary education typically exceeds those offered for continuing vocational education. This requires additional resources and a reorientation of the team to address new requirements and risks. Effectively managing such changes is critical to successful implementation in this segment.

Are there prospects for cooperation with public colleges?

Experts are confident that EdTech companies can successfully collaborate with both private and public colleges. Olga Lavrentyeva and Alexey Konobeev emphasize that it is easier to begin working with private educational institutions due to their flexibility and less bureaucracy. Olga notes that EdTech already has experience interacting with universities and is quite capable of adapting to cooperation with colleges. Although this process may be more complex and time-consuming, it will ultimately open up new perspectives and opportunities for both parties.

Alexey Konobeev argues that when public colleges realize that private educational organizations gain a significant competitive advantage, this will create the need to actively compete for applicants. As a result, colleges will be more open to collaborating with EdTech partners, which could improve the quality of educational services and increase the availability of technology in education.

Mikhail Sumbatyan believes that collaboration with public educational institutions holds significant promise. However, a key factor in this process is the college director's vision and ability to determine with whom and how to effectively collaborate to achieve planned goals. There is a risk that partnerships will fail due to a misalignment between the educational institution's approaches and the principles applied in EdTech companies' business processes.

Andrey Sizov believes that partnerships with public colleges represent a promising direction. Online schools can effectively take over the teaching of general education programs, allowing colleges to focus on specialized subjects. This collaboration can lead to improved quality of education and expanded opportunities for students.

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The regulatory field in EdTech: how to integrate technology into government Education

The EdTech field is developing rapidly, but successful integration of technology into public education requires overcoming a number of regulatory barriers. Effective interaction between educational institutions and technology companies requires clear regulations and flexible approaches.

An important step is the creation of legislative initiatives that take into account current trends and the needs of the educational process. New standards and recommendations are needed to help educational institutions implement innovative solutions without the risk of violating the law.

Furthermore, it is important to establish cooperation between government agencies, educational institutions, and EdTech companies. This collaboration will create an ecosystem in which technology effectively supports educational goals rather than conflicts with them.

Thus, integrating EdTech into public education requires a comprehensive approach that includes legislative changes, partnerships, and adaptation to new challenges.

EdTech companies can open their own colleges, but it's difficult.

Is it worth opening your own colleges? Many experts doubt that this is easier and more profitable than collaborating with existing educational institutions in the field of secondary vocational education. Only a few, such as Vitaly Altukhov and Victoria Khokhryakova, are confident in the prospects of creating their own colleges. It is important to carefully analyze the market and study the advantages and disadvantages of various approaches to make an informed choice.

In Russia, the number of private colleges is limited, which creates opportunities for EdTech. This sector can initiate the creation of its own educational institutions capable of competing with state institutions.

Collaborating with other colleges has its pros and cons. While convenient, it also requires coordinating promotion and development strategies, considering the specifics of the partner's target audience, and analyzing the entire product portfolio. Furthermore, it is necessary to differentiate the content of educational programs. Launching their own secondary vocational education (SVE) program provides EdTech companies with unique opportunities to leverage their knowledge of labor market needs and consumer demands for educational quality and format. This allows them to implement modern approaches to educational program design and develop new assessment systems based on assessing students' practical skills.

Some experts emphasize that obtaining an educational license for an EdTech company is not a difficult task. However, partnerships with colleges offer their own advantages. Alexey Konobeev notes that colleges take on a significant portion of the responsibility, including arranging accommodation for out-of-town students, interacting with regulatory authorities, and teaching subjects that aren't core to EdTech companies, such as physical education and life safety fundamentals. Such collaboration allows EdTech organizations to focus on their core competencies, delegating certain tasks to educational institutions.

Mikhail Sumbatyan emphasizes that to successfully launch your own college, it's necessary to conduct a comprehensive assessment of both the traditional education system and innovative approaches that develop dynamically and creatively, without being constrained by strict regulations. "Only through such collaboration can a unique educational product emerge, one that emerges at the intersection of experience and experimentation. Creating such a product within existing boundaries is a task that not everyone can handle. This is due to the peculiarities of human thinking and accumulated experience. Currently, there are practically no teams on the market capable of implementing such ideas,” he adds.

Andrey Sizov admits that developing a product alone It may be more difficult than in partnership. However, he also notes that an independent approach has its advantages. It is important that the product being created is of high quality, and the business model is effective. This will help achieve success and sustainability in the market.

Not everything can be taught online

EdTech companies have a significant advantage due to the ability to develop curricula that are fully adapted to the online format. Modern digital specialties are ideally suited to this approach, which makes learning more accessible and effective. Online learning allows students to learn new skills at a convenient time and in a comfortable environment, which contributes to the quality of education in the field of technology.

Currently, the majority of IT specialists work remotely, and the main requirement is stable access to the internet. In a situation where employers expect candidates to have remote work skills, the question arises about the need for offline education. The ability to effectively collaborate in a team, stay engaged in work processes, and communicate in written form are skills that are much better developed in an online environment. Online learning allows students to more quickly adapt to the culture of remote communication and learn to manage their time and workload in today's environment. Thus, online education is becoming more relevant and effective for training qualified IT specialists. The EdTech industry is successfully teaching digital skills, but what about more traditional blue-collar jobs? Effective offline practical training requires a platform equipped with the appropriate tools and technologies, notes Olga Lavrentyeva. Creating such an infrastructure independently presents significant challenges. Therefore, collaboration with colleges is the optimal solution for organizing secondary vocational education (SVE) programs. This will ensure access to necessary resources and improve the quality of specialist training.

Vitaly Altukhov notes that, in theory, virtual reality training could replace in-person training for access to specialized equipment, such as machine tools. However, implementing this training format is associated with high costs and implementation difficulties.

Blended learning combines online learning with practical training in real workplaces. This approach requires collaboration with partners, which may complicate the process of training EdTech specialists. Training for vocational skills is becoming more complex than teaching digital skills, which poses a challenge for the market. However, where there is demand for qualified specialists, there will inevitably be supply. Therefore, it is expected that effective solutions will be developed.

Alexey proposes organizing internships for students at enterprises and creating regional training centers to conduct practical classes. This will improve the quality of education and prepare students for the real-world conditions of their profession.

Mikhail Sumbatyan believes that teaching simple work skills is also possible online. However, considering developmental psychology in such educational programs is a complex task. Therefore, it is necessary to develop hybrid learning formats that include elements of live immersion and mentoring. Without offline mechanisms, it is impossible to achieve systematic positive learning results. Education not only changes thinking, but also provides tools for effective work, and forms professional communities, which cannot be achieved through distance vocational education (DVE).