Below is the executive summary from our Cetis paper Beyond MOOCs: Sustainable Online Learning in Institutions, looking at the benefits that institutions might gain from the recent MOOC mania. I think the section on business models has the most to offer to institutions, but this was also the hardest part to explain in a way that would be helpful to Institutions.
1. Executive Summary
The key opportunity for institutions is to take the concepts developed by the MOOC experiment to date and use them to improve the quality of their face-to-face and online provision, and to open up access to higher education. Most importantly, the understanding gained should be used to inform diversification strategies including the development of new business models and pedagogic approaches that take full advantage of digital technologies.
The critical discourse emerging around MOOCs is providing an opportunity for institutions to develop a more strategic approach to online learning. This includes enhancing existing classroom teaching practices, promoting institutional reputation and developing new revenue models. There are indications that some MOOCs are becoming more focussed on corporate training, which suggests that they may not pose a immediate threat to the existing pedagogical, revenue or business models of higher education institutions (HEIs). The number of Massive Open Online Courses (MOOCs) will continue to grow with the development of credit bearing courses likely to be a trend.
The findings from this report are summarised in three sections: key themes that have emerged from the MOOC experiment, opportunities that institutions should consider exploring, and longer-term strategic considerations and likelihood that this will happen for institutions.
Three key themes emerge from the MOOC experiment:
- Openness – new approaches to online learning, including models for scalable provision that may generate revenues, and promote open learning, which goes beyond institutional boundaries through the use of online communities. [Increasing impact & long term, likely for most institutions]
- Revenue models – different revenue models taking the established ideas from technology start-ups, such as applying the concepts of freemium and premium offers into online learning, providing institutions with new ways of thinking about marketing and income generation. [High impact & medium term, more likely for institutions looking for new revenue streams]
- Service Disaggregation – experimentation with business models that include unbundling and re-bundling of courses and delivery related services, such as offering paid for assessment and/or teaching and support, on top of free online course content. This may have a wider impact across institutions in the future through better deployment of existing resources to add value to customers where there is greatest benefit and to reduce costs through outsourcing (unbundling is already happening independently of MOOCs). [High impact & short term, likely for most institutions]
Institutions should consider exploring a set of opportunities that have been brought to the attention of mainstream education by MOOCs, and experiment with new approaches for developing technology-enabled changes in teaching and learning to improve opportunities for individual learners. These include:
- Technology options – new platforms and services with different functions, terms and conditions for experimenting with the development of MOOCs and open online provision in institutions, including opening up an existing VLE, partnering with a commercial MOOC platform; or using an ad hoc collection of tools and services that are suitable for innovative experimentation. [Low impact & short term, likely for most institutions]
- Pedagogic opportunities – for educators to experiment and evaluate different online learning approaches by developing and using MOOCs that challenge the established roles of learner and teacher and offer more flexible forms of learning and assessment that include community as well as content-based models of learning. For some, experimentation will be at the level of the individual lecturer and for others it may be departmental or large-scale cross-institutional change projects. [Medium impact & medium term, likely for some types of institutions]
- Learner choices – developing new and affordable ways for learners to access courses and materials with the possibility of study for credits that are affordable and flexible. A starting point that is not based on existing courses can be a less constraining way of exploring new approaches. [High impact & short term, likely for some institutions]
Institutions are operating in an environment of increased marketisation and global competition, increasing student demand, reduced central government funding and affordability issues for students. Institutions will have to make strategic choices about how they respond to the changing contexts in which they operate; depending on the starting point these will have short, medium and long-term implications:
- Mission, purpose and values – taking full account of the significant wider changes in HEIs’ business environments that may require institutions to review how they interpret their mission, purpose and values when developing their strategic response. [Variable impact & long term, likely for most institutions]
- Strategic directions – using the new opportunities presented by rethinking MOOCs as a useful motivation for institutions to examine their current provision and think about ways in which they can change and diversify. However, failure to recognise the scale of this challenge may well derail any new strategic directions. For institutions with little experience of open and online provision, options for rapid development may be limited to forming partnerships with external organisations with the required capabilities. [High impact & long term, likely for most institutions]
- Capability building requirements – reviewing existing in-house capabilities including: technical infrastructure, academic and support staff working practices. If starting from a low base, these will require significant commitment to change and develop, in order to support new business models for online provision. [Variable impact & short term, likely for most institutions]
- Business model components – there is an opportunity for institutions to examine their current provision and think about ways in which they can change and diversify to develop new sustainable business models for open online provision that take as their starting point the needs of the learner rather than the interests of the institution. [High impact & medium term, likely for some institutions]