Abstract
The ways institutions have structured their initial innovation with online learning vary greatly. Initial business model decisions present different challenges in terms of how institutions will integrate online learning. This paper looks at several common business models and the opportunities and challenges that each presents to institutions that want to fully integrate online learning.
Highlights
Most institutions began their online learning programs with one of two goals in mind: (1) to extend access to degree programs to new off-campus students or (2) to improve the quality of teaching for existing students on campus
While there are many different models for continuing and distance education among U.S institutions and state systems, most share one common feature: they are organized as cost centers with the expectation that they recover costs of operations through new revenue generated by tuition and contracts
Institutions have innovated with online learning to extend access because they see an opportunity to generate revenue or because they see online learning as an extension of their social mission
Summary
Most institutions began their online learning programs with one of two goals in mind: (1) to extend access to degree programs to new off-campus students or (2) to improve the quality of teaching for existing students on campus. While there are many different models for continuing and distance education among U.S institutions and state systems, most share one common feature: they are organized as cost centers with the expectation that they recover costs of operations through new revenue generated by tuition and contracts. They tend to report through separate university administrators rather than through academic deans. If quality for on-campus students was the primary initial goal, institutions tended to position the online learning initiative within the Provost’s office or in individual academic units. The result has been to put pressure on the existing budget model and organizational structure
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