Distance education

Online and Incomplete

Smart Title: 

Community college students who enroll in distance courses are more likely to fail or drop out than are those in in-person classes, study finds.

The Inevitable Change Ahead

In most industries, technology-enabled competition is deemed healthy and vital. Accustomed to a hyper-competitive modern world, we expect even the largest and most prestigious companies to be continually challenged by nimbler, more creative upstarts. Economists teach that disruptive innovation by newcomers and creative destruction of entrenched incumbents leads to better products and services. When a century-old auto company, airline, investment bank, or newspaper files for bankruptcy or disappears altogether, we regret the attendant human suffering but count the loss as the price of progress, knowing that without competitive innovation and destruction we would enjoy a standard of living no better than our great-grandparents did.

Higher education, though, has been different. Large universities rarely cease to operate. Nor are the prestigious ones quickly overtaken. Part of the reason is a dearth of disruptive competition. The most innovative would-be competitors, for-profit education companies, find great success among working adults, many of whom care more about the content and convenience of their education than the label on it.

But many young college students still seek the assurance of traditional university names and the benefits of campus life. Because of loyal support from this large group of higher education customers, the incumbents have felt little pressure from the for-profits’ use of potentially disruptive online technology.

Meanwhile, the terms of competition among traditional institutions, the public and private not-for-profit universities, have been set primarily by those at the top. The strategy of most schools is one of imitation, not innovation. Little-known and smaller institutions try to move up in the ranks by adding students, majors, and graduate programs, so as to look more like the large universities. They also task their faculty with research responsibilities. In the process the emulators incur new costs and thus must raise tuition. This blunts the price advantage that they began with. They are stuck in a dangerous competitive middle ground, neither highest in quality nor lowest in cost. The great schools, rather than being discomfited by the imitation, seem all the more desirable because of it.

In their defense, the institutions that emulate Harvard and strive to climb the Carnegie ladder are doing just as conventional business logic dictates -- trying to give customers what they want. The great universities such as Harvard inspire not just administrators, faculty, and alumni at other schools. They also excite the most elite prospective students, who want to win admission to the most Harvard-like institution they can. Thus, less prestigious schools emulate Harvard’s essential features, such as graduate programs and expert faculty researchers and research facilities. They also give students costly non-educational amenities such as intercollegiate athletic teams, which Harvard no longer supports at the level of the most competitive schools.

The result of this competition-by-imitation is to solidify past educational practice among traditional universities, making them increasingly more expensive but not fundamentally better from a learning standpoint. The great-grandparents of today’s students would easily recognize the essential elements of modern higher education. Though the students are more diverse, the shape of classrooms, the style of instruction, and the subjects of study are all remarkably true to their century-old antecedents.

Great-Grandpa and Grandma would likewise recognize the three schools atop U.S. News’s 2010 college rankings: Harvard, Princeton, and Yale. In fact, asked to guess, they’d probably have picked just those three.

Only the costs of a higher education, one can argue, have kept pace with the times. In the 10 years after 1997, the inflation-adjusted price of a year of college at the average public university rose by 30 percent, while the earning power of a bachelor’s degree remained roughly the same. Cost increases derive partly from higher faculty salaries, but more from activities unrelated to classroom instruction. Scientific research, competitive athletics, and student amenities require both large operating outlays and the construction of high-tech laboratories, football stadiums, and activity centers. As a result, the cost of higher education grows faster than faculty salaries or other instruction-related costs.

The problem is not unique to higher education. In fact, in products ranging from computers to breakfast cereals, history reveals a pattern of innovation that ultimately exceeds customers’ needs. Hoping to get an edge on their competitors, companies offer new features, such as faster processing speeds in a computer or increased vitamin fortification in cereals. These enhancements are sustaining innovations rather than reinventions: the product becomes better while its basic design and uses remain the same.

The catch, as Clayton Christensen has shown in The Innovator’s Dilemma, is that these performance enhancements at some point exceed even the most demanding customers’ performance needs. The producer is incurring greater costs and thus must raise prices. That leaves the typical purchaser of a $5,000 laptop or a $5 box of cereal paying more than they want to, given what they actually need.

Much of what universities are doing is standard management practice: improve the product; give customers more of what they want; watch the competition. But it leads even great enterprises to fail, as detailed in The Innovator’s Dilemma. Inevitably, while the industry leaders focus on better serving their most prized customers and matching their toughest competitors, they overlook what is happening beneath them. Two things are likely to be occurring there. One is growth in the number of would-be consumers -- students, in the case of higher education -- who cannot afford the continuously enhanced offerings and thus become non-consumers. The other is the emergence of technologies that will, in the right hands, allow new competitors to serve this disenfranchised group of non-consumers.

Until the relatively recent emergence of the Internet and online learning, the higher education industry enjoyed an anomalously long run of disruption-free growth. In times of economic downturn, there were cries of alarm and calls for reform. But for the elite, well-endowed private schools, a bit of budget tightening sufficed until the financial markets recovered. The demand for the elite schools confer far exceeds the supply, allowing them to cover rising costs with tuition increases and fund-raising campaigns.

Even many less-prestigious universities benefit from accreditation, which has elevated them over unaccredited institutions. Public universities also enjoy the long-term commitment of taxpayers. In the absence of a disruptive new technology, the combination of prestige and loyal support from donors and legislators has allowed traditional universities to weather occasional storms. Fundamental change has been unnecessary.

That is no longer true, though, for any but a relative handful of institutions. Costs have risen to unprecedented heights, and new competitors are emerging. A disruptive technology, online learning, is at work in higher education, allowing both for-profit and traditional not-for-profit institutions to rethink the entire traditional higher education model. Private universities without national recognition and large endowments are at great financial risk. So are public universities, even prestigious ones such as the University of California at Berkeley.

Price-sensitive students and fiscally beleaguered legislatures have begun to resist costs that consistently rise faster than those of other goods and services. With the advent of high-quality online learning, there are new, less expensive institutional alternatives to traditional universities, their standing enhanced by changes in accreditation standards that play to their strengths in demonstrating student learning outcomes. These institutions are poised to respond cost-effectively to the national need for increased college participation and completion.

For the vast majority of universities change is inevitable. The main questions are when it will occur and what forces will bring it about.

Author/s: 
Clayton M. Christensen and Henry J. Eyring
Author's email: 
info@insidehighered.com

Clayton M. Christensen is the Robert and Jane Cizik Professor of Business Administration at Harvard Business School. Henry Eyring is advancement vice president at Brigham Young University-Idaho. Reprinted by permission of the publisher, John Wiley & Sons, Inc., adapted from The Innovative University: Changing the DNA of Higher Education from the Inside Out, Copyright © 2011 by Clayton M. Christensen and Henry J. Eyring.

'State Authorization' Struck Down

Section: 
Smart Title: 

WASHINGTON -- Higher education hates the U.S. Education Department's recently enacted regulation requiring institutions to seek and gain approval from any state in which they operate, and has fought it on multiple fronts. Late Tuesday colleges and universities got at least a temporary reprieve from the part of the rule to which they most object -- its application to online programs in which even one student from a state enrolls.

Ranking the Online Colleges

Section: 
Smart Title: 

U.S. News brings its analysis to digital programs -- and also accidentally writes article on unaccredited institution.

'Times' Ticks On

Smart Title: 

The New York Times Company plans to continue its slow advance into the realm of higher education this fall. It announced today that it is teaming up with the University of Southern California to offer continuing education programs to try to tap a growing market of adults looking to pick up new skills.

Take a Walk on the Wired Side

Category: 

Want to teach online? Rob Weir provides warnings and tips.

Should You Teach Online?

Chloe Yelena Miller offers advice on deciding whether to make the leap, and how to do so.

Landing Online Teaching Jobs

Chloe Yelena Miller discusses the similarities and differences between the search process for classroom and virtual positions.

Long Tails in Higher Education

What do Chemistry 101 or Introduction to European History have in common with Harry Potter and the Half-Blood Prince or the latest singles from Green Day or 50 Cent?

They're all bestsellers in their domains. Education experts often wonder whether bestseller status among college courses might provide lessons about educational markets and planning, just as popularity shapes entertainment and cultural products. Such speculation has grown with the advent of online education. Some argue that by making the most popular courses virtual, colleges can slash costs, helping to pay for low enrollment courses.

The alternative has been to raise revenues for low-enrollment courses by adding enrollment. This "add seats" approach has become more attractive in the new world of online education. Which alternative makes more sense for colleges considering online versions of some courses?

Cost-cutting advocates suggest that great efficiencies may result from delivering online a small set of popular undergraduate courses. Courses such as Chemistry 101 or Introduction to European History would have large enrollments and "basic" curricula. These popular courses illustrate the "80-20 rule" -- 20 percent of a resource typically generates 80 percent of the possible benefits. Popular courses may not even constitute 20 percent of the catalogue's contents, yet they often represent 80 percent of enrollments. If that 80 percent can be served through automated, virtual means, that should release tremendous savings, offsetting the cost of courses that don't lend themselves as easily or cheaply to virtual delivery.

Sales data on books and music tracks cast marketing and planning issues in a new light. Chris Anderson, editor of Wired magazine, describes a new phenomenon first noticed in Web-based retailing of pop culture products such as books and songs: Very low-volume sales -- typically associated with backlist items -- can add up over time to stupendously large total sales. Anderson calls these large totals the "Long Tail." In Internet marketing and flexible warehousing, Anderson says, the Long Tail results in aggregate possible sales that can rival or surpass the total sales of popular items. The more books or songs available for purchase, the bigger the market opportunity.

A conventional marketer might carve out space for known or likely bestsellers and concentrate on selling those units -- the 80-20 rule. Selling the 80 percent of products that appeal to the slimmest markets simply costs too much. But the virtual marketplace makes it possible to reduce overhead drastically. For the low marginal cost of adding non-bestsellers, a business can make major gains from trickle-like sales of an enormous, traditionally neglected body of products. Call it massive multiple-niche marketing.

In higher education, the Long Tail view suggests that an 80-20 rule overplays the importance and benefits of moving online the 20 percent of classes that draw the highest volume. If we can find effective, high quality ways to make bestseller courses virtual, there are good reasons to do so. But there is also a broad and deep market for all those smaller classes-not in the individual instances but in the aggregate. We know this because so many of those courses are offered by colleges and universities, and so many such classrooms are reasonably well populated. Surprisingly, the Long Tail perspective suggests that, with Web-based delivery, potential exists for great expansion in specialized subject areas, as long as the costs of instruction (course delivery) resemble or improve on current rates.

An important distinction separates Long Tails in pop culture from those in higher education. It's possible to cut delivery costs for "niche appeal" units in entertainment but not education. Technology has an equal effect on pricing for all entertainment products regardless of bestseller status; the same is not so of educational offerings, which are inherently more specialized and expensive. This cost imbalance occurs since we are less likely to move high-end, low-demand educational offerings to an automated or virtual delivery mode-precisely because they are higher-end, requiring more intensive instruction.

Even if we did recreate them for virtual delivery, it would be at great cost. This suggests that a potential for profitable Long Tails may be unlikely in highly specialized university-level courses. But if current trends are any indication, this difference could have a limited lifespan. Three factors could create a Long Tail for course offerings:

  • Growing demand for higher education beyond undergraduate and professional education. This factor is seen in the great success of continuing education programs, reflecting demand for degree and non-degree programs alike.
  • Continued and diverse attempts to improve the quality and delivery of higher education online, by traditional, non-traditional, and commercial institutions.

Even if these factors intensify, many challenges lie in the way of a Long Tail market. No one has set a standard for a salable unit of online education -- entire courses, elements of course materials, or something else altogether? Should those units even be sold per se? Some approaches to these issues include: Open access to self-contained courses (Carnegie Mellon's Open Learning Initiative ); open access to curricular materials organized by courses (MIT's OpenCourseWare); open access to curricular materials organized into course modules (Rice University's Connexions ); continuing education courses for sale (the AllLearn project of Yale, Stanford, and Oxford); and program courses for sale (the eCornell project).

What really distinguishes high and low enrollment courses? Does the distinction simply consist of enrollment size? Advocates of small-sized, traditional classes argue that a highly specialized course requires an intensively personal approach that even a maximally "high touch" online learning experience cannot provide.

Even if these challenges are met, it's far from clear that traditional colleges and universities would willingly help bring about a Long Tail online market in higher education. From educational and economic perspectives, the outcome would not necessarily be positive. In literature or music sales, rescuing the backlist means exposing new audiences to unknown or forgotten worlds. By contrast, online delivery of higher education's "backlist" might well hasten consolidation of the market. How many different courses on Beowulf or Mallarmé can attain even tiny market share? With a drastic focusing of such "sales," the market could consolidate around colleges offering the best specialized courses, spelling an unhappy fate for institutions unable to compete.

Still, the potential for a Long Tail lies dormant in courses that are not yet offered online but can be found at 2,400 U.S. institutions. Year after year, a wealth of such courses, in highly focused topics such as Tagalog, Random Matrix Theory, and African traditional religion, appear in scores of college catalogues. This indicates a clear and widespread interest among current students in courses on diverse, super-specialized, arcane subject matter. There is no telling what the potential is for additional audiences of adult and returning students.

The 80-20 rule, then, is not a fixed picture, if it holds at all. The backlist 80 percent of courses represent an enormous number of classroom seats in their current, traditional mode of course delivery-and possibly many more virtual seats, if the transition is ever successfully made to online delivery. We're not likely to capture 80 percent of classroom seats by putting online 20 percent of all courses (this was obvious anyway, given that most courses taken by undergraduates are not giant lecture courses). Efficiencies may be gained by concentrating on putting large enrollment courses online. But we must be sober about the extent of those efficiencies-and about what is left out when online offerings neglect the backlist.

Is it really possible to deliver highly specialized courses online at the same levels of quality as traditional formats? Perhaps -- competent online courses or materials abound for focused topics ranging from Akkadian to causal reasoning to the history of the Jazz Age. But in case it is too costly to build those assets, colleges should look at what they are getting from ostensibly low-cost online versions of popular courses-the vaunted 20 percent. Should they demand more than "satisfactory" and "efficient" as grades of quality in those online courses-and would meeting those greater demands cost more?

Although in principle an "add sales" approach based on a Long Tail may beat a "cut costs" approach, low enrollment courses are not being created for online delivery in great numbers -- a notable exception being at MIT, where course materials alone are being digitized. As long as costs and quality remain perceived barriers to digitizing highly specialized courses, a Long Tail scenario in higher education may be a ways off. But it's worth contemplating how such a scenario might arise, and what it might mean for distributors and students ("consumers") of university-level courses. A Long Tail in niche-interest courses could build revenue opportunities for colleges and universities, consolidate markets among institutions offering such courses, and transform how students choose among courses and programs.

Author/s: 
Saul Fisher
Author's email: 
info@insidehighered.com

Saul Fisher is director of fellowship programs at the American Council of Learned Societies. He is formerly a program officer at the Andrew W. Mellon Foundation, where he directed the Teaching and Technology Program.

Going Hybrid

This column will provide Inside Higher Ed readers with advice on a range of strategy and financial issues facing colleges. Eduventures, a leading consulting services firm, has agreed to answer questions from readers. Questions for future columns may be submitted via e-mail. We hope this column provides an opening for all to seek consulting advice and to understand the way consultants approach issues.

Question: How can colleges best mix on-campus and online delivery of instruction?

Answer:

Too many college and university leaders think, “We have an online program and we have a campus program, so we can probably just combine the two to create a hybrid program.” This usually doesn’t work well because online and on-campus programs often appeal to different people for different reasons, and the delivery challenges for each are also quite different.  

We’ve seen some great successes, and a few spectacular failures, in the hybrid market model (in which 20-80 percent of content is delivered online). From these examples, we’ve learned that planning up front and being clear about objectives are preconditions for success. Institutions considering hybrid models for a program, or even several courses, must first create a “business plan” and clearly state what they want to achieve, which students they plan to serve, and how they plan to compete. When building this plan for your institution, you should keep the following in mind:

The Goal. Why are you considering a hybrid model? What is the business rationale? Are you trying to reach different, or more, students, or trying to solve space constraints? Are you doing it because you see an unmet need in your marketplace or because your competitors are going hybrid and you feel the need to keep up? Are you looking for a local, regional, or national audience? The national market is becoming quite competitive, and programs in this space are becoming more commodity like, so a program focusing on the regional or local market may position your program for success.  

Philosophy. A program with 20 percent of delivery online and 80 percent on-campus is quite different from a program with 80 percent online and 20 percent on-campus, yet they both qualify as hybrid. Will you use the online component only for communication purposes or for content delivery as well? How will you use adjunct faculty members -- to create the content, deliver it, or both? The philosophy you choose should provide a blueprint or roadmap for how you will achieve your goals. Too often in our work, we have seen institutions miss this step -- they did not identify their philosophy before jumping into the hybrid model, and later found that it significantly impeded success. Without a philosophy, it is difficult to communicate the value proposition internally or externally, and it becomes challenging to make some of the difficult trade-offs inherent in any new venture.  

Target Consumer. What type of consumer is your hybrid offering designed to attract? Adult learners tend to be more open to an online experience because it allows them to balance their professional and personal lives with their educational pursuits. Traditional students -- those aged 18 to 24 – tend to want face-to-face, classroom-based learning. Corporations may prefer a little of both, to allow employees to work and study at the same time. Segmenting the market by consumer types and needs -- adult, traditional, current, new, credit, non-credit -- and designing programs that fit these segments and needs are important early steps.  

Integration. Integrating between bricks and clicks is probably the single biggest point of failure for institutions pursuing a hybrid model. Where does campus-based learning begin and end relative to the online component? How do student services coordinate with these components? What do you need to change about your student information system? The challenges range from technology and training, to content design and delivery, to student services. Be sure to prepare by thinking through the entire system and how it will affect the students, the faculty, and the staff.

Programs. Some courses and programs have done very well online and would be logical candidates for a hybrid model (e.g., business, IT, education), but not every course or program is well-suited to a hybrid approach. It’s best to begin with an audit of existing programs, dissecting the curriculum to determine how a hybrid model might be applied. At the same time, you should do an external evaluation of market demand and supply to determine where the best opportunities are for introducing new programs. Again, if you consider local versus national distribution, you may find that, on a local level, a particular hybrid program may provide a competitive advantage in attracting students.  

Core Competencies. What is your institution known for? What do you do better than most of your peer schools? Focus your efforts on maximizing the benefit of these core competencies and consider outsourcing those areas that are not strengths, such as marketing, lead management, student services, or technology.

Faculty Buy-In. Faculty members have a large stake in content delivery because most of the time they supply the curriculum. Whether you plan to offer incentives for faculty to adapt content to a hybrid model or to outsource this function, faculty should be involved in the discussions.

Hybrid courses and programs represent more of an evolution than a revolution in educational content delivery. Hybrid delivery represents a natural progression for many campus-based institutions to investigate and perhaps pursue, and often can serve as a competitive advantage in reaching a wider student population. Rigorously thinking through process design and delivery components and planning carefully for implementation will make the difference between those programs that succeed in the hybrid arena and those that invest a lot of resources with little to show for it.

Author/s: 
Kristin L. Greene
Author's email: 
info@insidehighered.com

Kristin L. Greene is a senior member of Eduventures' consulting practice. Her most recent engagements involve analyzing growth opportunities and devising market entry strategies for a leading for-profit institution, evaluating geographic expansion for a private two-year college, and assessing opportunities in the K-12 sector.

Pages

Subscribe to RSS - Distance education
Back to Top