I'm glad e-Literate asked Michael Caulfield to elaborate on his post, though it still feels abridged to me. Here's the traditional take on 'personalization': "You learn a certain set of things, you get tested, the personalization software finds knowledge gaps and runs you through the set of canned explanations that you need." But this isn't right, says Caulfield. "The biggest advantage of a tutor is not that they personalize the task, it's that they personalize the explanation... students often have very similar skill gaps, but the remedy for each student may be radically different." There's a short list of what a truly personalized course would do - this is the part I wish were elaborated. (The earlier version of the first half of this post on Caulfield's Hapgood site).
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