The business of education ...

The introduction of MOOCS has captured the imagination and attention of education stakeholders worldwide.  Much has been made of the enormous uptake of the various offerings available on the EDx and Coursera platforms (amongst others) and the potential offered by open access on-line learning experiences.  However, the long-term sustainability of the MOOC model has also come under scrutiny, with significantly high rates of participant attrition (up to 93%), highly variable levels of quality and, most importantly, significant levels of investment (e.g. Coursera $US65M to date) without any apparent means of achieving a financial return (Ruth, 2012). 

In fact there appears to be a distinct lack of consideration around how "moving on-line" fits into University’s broader strategic agenda.  Rather, most appear to be engaging in the space early (we don't know where we're going but we're on the journey!) with some expectation of developing a degree of capability.  In the hope perhaps that when a viable business model does in fact emerge, they will have reduced the lag-time associated with responding (Magner, 2013).  

However, while MOOCS in their current incarnation have been underwhelming (bar the hype) both financially and pedagogically they have effectively signalled at least three important emerging trends in the tertiary sector:

•      They have effectively raised awareness as to the evolving nature of education, the increasing commercial and market pressures being placed on the tertiary sector and have opened up the idea that there might be (gasp!) alternate models of tertiary education (see Bokor 2012 for a snapshot of these issues);

•      The "sharks are circling”.  The significant amount of private funds invested in the MOOC space indicate the significant interest from private investors anticipating a number of opportunities in the tertiary education space.  Investing in MOOCs now helps those interested in "the business of education" to learn about our (sometime arcane) world and develop an appropriate business model that will suit their agenda;

•      There is widespread desire for short term, consumable learning experiences amongst the general population, particularly for those able to facilitate and support collaborative learning opportunities (Chafkin, 2013). 

This last point is particularly important in the context of the QUT Transform project.  Trounson (2013) in the Higher Ed. supplement (27th Nov, p20) reports that the growth of “taster courses” offered by Open Universities Australia “Open2Study” is over 30% with just short of 20000 students in their fourth cohort.

 

“We have found that online learning that focuses on collaboration and co-operation enhances student’s ability to explore ideas and knowledge more effectively” (Open2Study GM Jose Herrera)

So.... The sky isn't falling, but the climate is changing and more importantly, for those organisations that are agile enough a wealth of opportunities exist.  As Transform fellow Jason Sternberg says “good teaching is good teaching”. MOOCs have shown that it’s not enough to whack up a video of a smart cookie and a couple of quizzes for an engaging on-line experience.  By effectively adapting to digital delivery models we can remain competitive and to continue doing what we do best: educating (not just certifying).  By default however it does require investment and open thinking around the best way to respond. As such the Transform teams are building and growing a model that leverages QUT's existing strengths and capabilities and takes advantage of the learning gained from observing other institutions’ experiences in this space over the last 2 to 3 years.  A strong common theme throughout the process has been the need to develop a learning architecture that is flexible and responsive to the needs of student expectations, employer needs, and aligns strongly with the value proposition and unique capabilities offered by QUT in an increasingly fragmented and diverse education sector.

Dr Glen Murphy  -- Senior Lecturer, School of Management - QUT Business School /Transformational Teaching Fellow

Reference List

Bokor, J. (2012) University of the future: a 1000 year industry on the cusp of change.  Ernst & Young.  http://www.ey.com/Publication/vwLUAssets/University_of_the_future/$FILE/University_of_the_future_2012.pdf (Accessed 17/10/2013)

Chafkin, M. (2013)  Udacity’s Sebastian Thrun, Godfather of free online education, changes course.  Fast Company, http://www.fastcompany.com/3021473/udacity-sebastian-thrun-uphill-climb. (Accessed 14/11/2013).

Magner, L. (2013)  A wider web: Technological developments have spurred rapid industry growth.  On-line education in Australia.  IBIS World Industry Report X0008, September

Ruth, S. (2012) Can MOOCs and existing e-learning efficiency paradigms help reduce college costs? International Journal of Technology in Teaching and Learning, 8(1), 21-32.

Trounson (2013) Appetite growing for ‘taster courses’.  The Australian (Higher Education supplement, 27th November, p20.