Transforming Business Models in Response to Market Shifts
The educational “business model” is a favorite topic in higher education these days. It’s now passé to say the model is broken; instead, the conversation has moved on to exploring and adopting new operating models and delivery systems to better suit current realities. Cultural, demographic, technological and economic change throughout the world is driving a rethinking of how colleges and universities “do business” — fulfilling the same mission in a different way.
Institutions are updating their business models to demonstrate increased relevance, address competitive threats, and enhance outcomes and sustainability. They are assisted in their efforts by third-party educational organizations, such as The National Association of College and University Business Officers (NACUBO) and their Economic Models Project(1), in tracking developments, sharing ideas and re-envisioning the future. For one vision of future outcomes, see Time-Traveling to Higher Education 2050.
As institutions consider how to adapt to best serve current and future constituents, such rethinking is prompting many new approaches, including hybrid teaching, mini- and microeducational packages that recognize accomplishment through certificates or digital badges, tuition-charging massive online open courses, and microcredentialing.
Click here to read the full article for our observations about trends and innovations for institutions that are or will be responding to the imperative to re-evaluate and ascertain desired models for the future.
(1) NACUBO. “Economic Models Project.”