COVID-19 has directly or indirectly impacted almost every business across the globe. Some will grow as a result, but many will never recover. Industries react to adverse conditions much like nature: only the fittest survive. Interestingly, the EdTech sector was one of the few industries that showed signs of growth during the pandemic. An increasing need to shift education online and incorporate remote learning has brought education technology to the forefront.
Growth within the EdTech industry is highlighted by the acceleration of the technological adoption lifecycle, which has been reduced by 5-10 years within the space of 5 months. Furthermore, the largest EdTechs in Asia are raising over 1 billion US Dollars per round and achieving valuations of over 10 billion US Dollars. Both demand and supply are finally coming together. Change is also being seen at governmental and non-governmental level, with organisations being forced to adapt their frameworks for the adoption of EdTech solutions. Education has traditionally been characterised by bureaucracy and a lack of agility, but technology giants are beginning to help execute national strategies around online education.
Google, Microsoft, and Zoom are just some of the large tech companies that saw huge growth globally with schools, universities, and corporations using their platforms to provide remote learning solutions. Zoom alone rolled out in over 100,000 schools in 25 different countries worldwide. Looking at the data from our first cohort, just over 80% of those who applied saw their client base grow between March and September, whilst 75% experienced an increase in revenue over the same period.
But what are the key takeaways for education institutions?
• Technology will play a key role in the future of education
• Education had to become flexible and engaging
• Traditional content is becoming obsolete faster
• Institutions must become more efficient in their vetting of EdTech solutions
After conversations with school governors, we know that integration of technology into education environments will not be a temporary trend. COVID-19 has and still is permanently changing the face of education, with institutions actively building their core competencies to defend against future waves of Coronavirus and other potential pandemics. They have started to engage in the conscious building of digital infrastructure to make themselves smarter and more agile in the face of transformation. Some learners will want to join programs remotely, whereas some may want it delivered face-to-face, and others just want the campus experience. Over the coming years, institutions will be adapting their content to make sure that it is accessible globally and across a range of mediums.
However, the current TVET education content does not adequately prepare learners for the next stage of their journey. COVID-19 has disrupted the TVET education value proposition: the quality of education and experience is falling whilst the cost remains the same. Failing to meet the needs of the workforce is leading to an increasing skills gap which is expected to reach $8.5 trn in lost productivity by 2030 and is responsible for over 85m unfilled positions. Over the next decade, the focus of TVET education must revolve around developing skills that won’t be made redundant by technology. This includes critical-thinking, problem-solving, and other thought processes that enhance intellectual capacities rather than training individuals for a specific task. Education institutions have to stop training for the jobs available now, but those that will arise in the future.
Education institutions are realising the potential EdTech solutions hold, but also the threat they pose. Failure to evolve may just spell the demise of the traditional institutions we see today. COVID-19 has catalysed the adoption of EdTech, but this is just the beginning. Our research suggests technological adoption will accelerate within the next 2-3 years with institutions heavily investing in solutions that create value for their students and staff. Integrating EdTech into organisations will naturally take time, however students have demonstrated a level of resilience during the pandemic, which allows schools and universities to experiment with technological solutions and hopefully provide an improved experience in the long run.