In the past twenty years, various industries have been forever altered by technology: newspapers, book publishing, the photography business, and many more. Higher education too faces unprecedented challenges primarily driven by rapid changes in technology. To meet these challenges and adapt to these changes, new models are needed. Six challenges lie at the core of the innovative disruption facing higher education: (1) University Model; (2) Structural Model; (3) Funding Model; (4) Cost Model; (5) Business Model; and (6) Success Model. In this article, the author describes these six core challenges and discuss seven areas of change, primarily technological change: (1) The Players; (2) The College Models; (3) The Course Models; (4) Data and Learning Analytics; (5) The Cost: Reduced and Free; (6) Measuring Success; and (7) Threats to the Credential. He also discusses six new course models that may represent the beginning steps in institutional transformation. These 6 courses include: (1) Flipped Courses; (2) Open Learning Initiative (OLI); (3) Science Classes; (4) Math Emporiums and Other NCAT Redesigns; (5) Blended Courses; and (6) Massive Open Online Courses (MOOCs). (Contains 31 notes.)