Higher Education in an Era of Digital Competition: Emerging
Organizational Models
Donald E. Hanna, Ph.D.
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Professor of Educational Communications
University of Wisconsin-Extension
Address: 45 N. Charter St., Rm 19
Extension Services Building
University of Wisconsin-Extension
Madison, WI 53715
Tel.: 608-265-5119
FAX: 608-265-3459
Abstract
Growing demand among learners for improved accessibility and convenience,
lower costs, and direct application of content to work settings is radically changing the
environment for higher education in the United States and globally. In this rapidly
changing environment, which is increasingly based within the context of a global,
knowledge-based economy, traditional universities are attempting to adapt purposes,
structures, and programs, and new organizations are emerging in response. Organizational
changes and new developments are being fueled by accelerating advances in digital
communications and learning technologies that are sweeping the world. Growing demand for
learning combined with these technical advances is in fact a critical pressure point for
challenging the dominant assumptions and characteristics of existing traditionally
organized universities in the 21st century. This combination of demand, costs,
application of content and new technologies is opening the door to emerging competitors
and new organizations that will compete directly with traditional universities and with
each other for students and learners.
This paper describes and analyzes seven models of higher education
organization that are challenging the future preeminence of the traditional model of
residential higher education. These models are emerging to meet the new conditions and to
take advantage of the new environment that has created both opportunity and risk for all
organizations, and which demands experimentation of structure, form, and process.
Each of the seven models discussed offers an alternative to traditional
residential higher education. Several models are in their infancy. Several others operate
at the margin of organizations with other core businesses or priorities. At least one of
the models depends upon extensive collaborations. All of the models incorporate features
that are designed to enable universities to better respond to new educational demands and
opportunities at a national and international level. Taken together, these organizational
models are emerging as significant forces in providing education and training, and as
powerful competitors to traditional universities. They offer the prospect of rapidly
changing where, when, how and for what purpose education is organized within both the
corporate and the higher education communities in the United States and throughout the
world. The result is a dynamic competitive environment among traditional universities that
are adapting learning processes and administrative procedures, alternative nontraditional
universities that are adapting technologies to better serve their existing primarily adult
constituencies, and new universities that are being formed around the promise of virtual
environments. The thesis of this paper is that growth in worldwide demand for learning is
combining with improved learning technologies to force existing universities to rethink
their basic assumptions and marketing strategies. This new digital environment is further
encouraging and enabling the creation of new and innovative organizational models of that
are challenging traditional residential universities to change more quickly and
dynamically.
Keywords
Universities and Organizational Models
Virtual Universities
Learning Technologies
I. INTRODUCTION
"On the Internet, nobody knows you are a
dog."
(From cartoon showing a dog using a computer [1].)
Sequel to above: "On the Internet, anybody can be a
dog." (or, some would argue, a university)
Growing demand among learners for improved accessibility and
convenience, lower costs, and direct application of content to work settings
is radically changing the environment for higher education in the United States
and globally. In this rapidly changing environment, which is increasingly based
within the context of a global, knowledge-based economy, traditional universities
are attempting to adapt purposes, structures, and programs, and new organizations
are emerging in response. Organizational changes and new developments are being
fueled by accelerating advances in digital communications and learning technologies
that are sweeping the world. Growing demand for learning combined with these
technical advances is in fact a critical pressure point for challenging the
dominant assumptions and characteristics of existing traditionally organized
universities in the 21st century. This combination of demand, costs,
content application, and new technologies is opening the door to emerging competitors
and new organizations that will compete directly for students and learners.
The recent developments of the worldwide web, digital satellite
technology, and new applications of virtual reality to build simulated learning
environments are predicted to have particularly dramatic effects upon learning
environments at all levels. Universities are experimenting with improving accessibility
to existing programs, designing new programs to take advantage of these emerging
technologies, and are marketing their programs to new audiences and in new ways.
Corporations are also engaged in experimentation and have formed both new organizations
internal to the corporation and brand new alliances with universities to promote
learning using technology. Completely new models for universities are also being
developed to respond to the opportunities created by a growing worldwide market
for learning and new technologies. The result is a dynamic competitive environment
among traditional universities that are adapting learning processes and administrative
procedures, alternative nontraditional universities that are adapting technologies
to better serve their existing primarily adult constituencies, and new universities
that are being formed around the promise of virtual environments. The focus
of this paper is upon baccalaureate and advanced level universities, but the
conclusions may also be applicable for two-year community and technical colleges.
Conceptually, this analysis views higher education as an open
system with advanced learning as its core purpose. The system has evolved into
a highly complex set of institutions that have organized to achieve this core
purpose. Throughout the industrial era, the system has focused upon serving
the educational needs of youth to prepare for a lifetime of work. Today it is
clear that the future will involve a lifetime of learning in order to work.
Baldridge and Deal [2] argue that to understand opportunities
for change in universities, one must understand that the external environment
is by far the most powerful source of internal change. Toffler [3] suggests
that developed organizations change significantly only when three conditions
are met. "First, there must be enormous external pressures. Second, there
must be people inside who are strongly dissatisfied with the existing order.
And third, there must be a coherent alternative embodied in a plan, a model,
or a vision." The first two of these conditions certainly describe higher
education as a system, and they also apply to many institutions. The third of
these conditions is the focus of this paper, which is an initial attempt to
analyze a very complex and rapidly changing environment and suggest alternative
visions and models that are emerging in this environment.
Seven emerging organizational models of higher education are
described and analyzed. These models are all designed to meet growing demand
among learners for improved accessibility and convenience, lower costs, direct
application of content to work settings, and greater understanding of the dynamic
complexity and often interdisciplinary nature of knowledge. Each model complements
and offers an alternative to traditional residential higher education. Several
models are in their infancy. Several others operate at the margin of organizations
with other core businesses or priorities. Each of them represents organizational
efforts to respond to new educational and learning opportunities at a national
and international level. And each of the models offers important new options
in an education and training marketplace that is increasingly global in scope
and of critical importance to individuals, organizations, communities, and governments.
Taken together, the seven organizational models may become
significant forces in providing education and training, and powerful competitors
to traditional residential universities. They offer the prospect of rapidly
changing where, when, how and for what purpose education is organized within
both the corporate and the higher education communities in the United States
and throughout the world. Experimentation with these organizational models will
affect and change current methods of evaluating institutional and program quality.
The experience gained within and across institutional models will also influence
a redistribution of over-all power and decision-making in higher education.
The net effect for the future is that institutions of all types will be more
responsive and accessible to their customers, more adaptable in their programs,
and more capable of change than they currently are.
The models discussed are derived from analyzing trends, characteristics
and examples of emerging organizational practice. They include:
- Extended traditional universities
- For-profit adult-centered universities
- Distance education/technology-based universities
- Corporate universities
- University/industry strategic alliances
- Degree/certification competency-based universities
- Global multinational universities
While the more than three thousand traditional institutions
in the United States vary greatly in mission, size, curriculum, selectivity,
faculty expertise and background, level of offerings, and type of location,
they share a number of characteristics that serve to define them. Because these
characteristics are widely accepted and understood, they offer a point of departure
for this analysis. The basic characteristics that help to define traditional
universities and colleges are the following:
- a residential student body;
- a recognized geographic service area from which the majority of students
are drawn. This service area can be a local community, a region, a state,
and in the case of a few elite institutions, a nation;
- full-time faculty members who organize curricula and degrees, teach in
face to face settings, engage in scholarship, often conduct public service,
and share in institutional governance;
- a central library and physical plant;
- non-profit financial status;
- evaluation strategies of organizational effectiveness based upon measurement
of inputs to instruction, such as funding, library holdings, facilities,
faculty\student ratios, faculty qualifications, and student qualifications.
(See Table 1 for a more complete analysis)
In traditional universities, students attend campuses with
classrooms where a primarily full-time faculty teaches. Many traditional universities
attract students from across the globe, but they are not global universities
because students must come physically to a campus that operates within a recognized
geographic service area and within a specific local cultural context. Traditional
universities differ in one or more fundamental ways from each of the models
analyzed in this chapter.
From an evaluation perspective, traditional universities are
concerned with measuring inputs to the instructional process, such as the institutions
mission, funding, curricula, faculty experience, student quality, adequacy of
facilities, and governance structure. The concept behind this approach is that,
taken together, these inputs are effective indices for organizational effectiveness
and indirectly measure anticipated student learning, more so than single measures
of student learning based upon final examinations that are common practice in
European universities. Perhaps of greater importance, they help to define the
status of the degree awarded, and therefore the value of the degree in the marketplace.
These inputs, assumptions related to evaluation, and selected implications suggested
by practice and culture within universities are noted below in Table 1.
| Input Measurement |
Characteristics and assumptions of traditional
residential institutions of higher education |
| Philosophy |
Students come to campus |
| Mission |
Mission defined by level of instruction--offering
graduate level programs often implies increased quality, as does student
and faculty selectivity |
| Funding |
Measured by $ expended per full-time student
equivalent |
| Curricula |
Relatively stable and comprehensive curriculum |
| Instruction |
Primarily face-to-face lecture, teacher-centered
formats prevalent at undergraduate level. Instruction is measured
by clock hours of seat-time (Carnegie units of credit) and evaluation
of student content acquisition; seminars at graduate level |
| Faculty |
Full-time faculty; faculty preparation
and credentials, research productivity, and external grants imply
increased instructional quality |
| Students |
Greater selectivity at admission suggests
higher quality programsvery little measurement of change in
overall learning from entry to exit |
| Library |
More volumes in library, with greater depth
of disciplinary holdings, implies greater quality (although with advances
in electronic sharing of resources this assumption is beginning to
be challenged) |
| Learning Technology |
Generally used to supplement or enhance
lecture format; tiered high technology lecture halls are one example |
| Physical Facilities |
Central physical plant includes residence
halls, student unions, health facilities, classrooms, and campus
environment, which together are believed to add to the quality of
the education received |
| Productivity Outcomes |
Productivity is measured in student
credit hours and degrees. Student credit hours are measures of classroom
seat time and content acquisition; degrees are measures of completion
of pre-approved courses |
| Governance |
Independent Board of Trustees--Independence
from political or business environment is a goal |
| Accreditation |
Institutional by region; individual
programs or disciplines are also accredited by professional accreditation
associations |
Table 1. Characteristics and Assumptions of Traditional Residential
Institutions of Higher Education
The fundamental assumptions and major characteristics of traditional
universities noted in Table 1 emerged during the 19th century in the
industrializing countries. The organization of traditional universities, especially in the
United States, responded to the need for increased access, discovery of scientific and
applied knowledge that could advance industrial and agricultural productivity, and
education and acculturation of a diverse community of learners. The basic assumptions and
characteristics of these traditional universities were developed, refined, and implemented
during the 20th century and in general have not been seriously challenged.
However, as the decade of the 90's draws to a close, many national higher education
associations and organizations have noted and called attention to dynamic economic, social
and technological changes occurring throughout the world. They have further noted the
emerging promise (and threat) of new learning technologies applied to traditional
residential universities. These associations have developed conferences and study groups
on learning technologies, on teaching and learning with technology, on the purpose and
functions of universities, and on their impact on the economy. More universities in the
United States are becoming involved in using technologies to deliver courses at a
distance, and almost all universities with existing programs are planning expansion. Such
discussions and actions have been encouraged by recent predictions by notable authorities
such as Peter Drucker, Eli Noam, and Burks Oakley that universities will change radically
or perhaps even cease to exist in the 21st century [4][5][6].
II. THE DEMAND FOR ADULT LEARNING
Organizational patterns of universities are being affected by
the development of new learning technologies and also by an increase in demand for
learning, primarily from adults who must learn continuously to stay current in the
workforce. Increasingly, the marketplace for learning by adults is defined as lifelong
education and training that keeps people current in their professional lives and
stimulated in their personal quests. Clearly, the higher education market can no longer be
defined solely as preparation for a career or for life with a focus on the 18-22 year old
student, as has been the case for most of the 20th century.
The adult learning marketplace is increasingly competitive and full of
opportunity, both for existing institutions and for new entries.[7][8][9] The market is
growing and new technologies dramatically improve access to learning resources and offer
the potential of linking learners and teachers in completely new ways[7]. Demand currently
exceeds supply in this dynamic new market [10][11]. Like most rapidly developing markets
where practices are not yet proven, many organizations are feeling their way, sometimes
making enormous but risky investments and sometimes hedging their bets by minimizing
risks.
A 1995 study by the National Center for Education Statistics
found that a third of higher education institutions offered distance education courses in
fall 1995, another quarter planned to offer such courses in the next 3 years, and 42
percent did not offer and did not plan to offer distance education courses in the next 3
years[12]. Only two years later in a study of 44 universities with distance education
programs, 95.3% of the colleges with an established distance education program planned to
expand the program. Among reasons for expansion, meeting greater demand, staying
competitive, and serving new markets were the three most frequently cited motivations. At
the same time, 40% of college distance education programs in this same study reported
operating at a loss [13].
III. EMERGING AND NEW MODELS
Emerging and new models differ in one or more significant
features from the traditional model for higher education. Beginning with the Extended
Traditional University model that most resembles the current assumptions and
operating framework in place in the core programs of residential universities and
colleges, the seven models outlined in this paper represent a variety of possible
organizational strategies. Each of the alternative models, while allowing for some
overlap, presents at least one major challenge to existing assumptions about what higher
education is and what it should be in the future. The goal of each model is to overcome
one or more perceived weaknesses of the traditional university campus by changing
fundamental assumptions about what a university should be and how a university might
operate in a global education and training marketplace in the 21st century.
A. Extended Traditional Universities
The emerging marketplace for learning clearly includes traditional
non-profit universities and colleges that seek to capture the growing adult learning
market. Such institutions have dominated youth-oriented higher education for a century,
and some of the more aggressive and comprehensive universities have a long history of
offering significant programs for adults, usually operated at the margin of the
institution. Beginning with William Rainey Harper at the University of Chicago before the
beginning of the 20th century, universities such as Penn State, New York
University, UCLA, and the University of Wisconsin built large semi-autonomous extension
units designed to serve adults. More recently, regional universities, urban private
universities, and community colleges have responded to changing demographics by developing
educational programs for adults.
Extended traditional universities, as defined in this study, are
characterized by programs of traditional universities that are specifically organized and
designed to serve a primarily adult audience that is usually non-residential in nature. The
traditional university operates as a parent organization, serving as a sponsor for
programs conducted for this "alternative or nontraditional" constituency or
clientele. Such programs do not threaten the basic academic organization of the
university, but they do serve a different market, one that is primarily external. Most
efforts of extended traditional universities have centered on marketing and delivering
existing on-campus courses and programs to adult audiences. These efforts have usually
been assigned to a continuing education or extension division, either at the institutional
level or at a program level. The continuing education division or program within a
traditional university operates using assumptions that diverge from the parent university
organization in subtle but important ways. Table 2 illustrates ways in which the extended
traditional university modifies assumptions and characteristics of its parent
organization.
Input |
Traditional universities |
Extended traditional universities |
For-Profit adult-centered universities |
Philosophy |
Students come to campus |
Campus goes to students |
Campus and non-campus philosophy |
Mission |
Mission defined by level of instruction |
Externally focused, degree completion and
workforce development |
Almost exclusively workforce focused |
Funding |
$ per full-time student |
More self-sustaining and market driven |
Market driven, workforce focused, and profit
driven |
Curricula |
Relatively stable & comprehensive curriculum |
More flexible curriculum content for workforce
competence and development |
Focused on workplace needs; adult oriented |
Instruction |
Most courses are lecture based |
Greater variety of methods and use of student
experience |
Methods typically standardized across locations--greater
use of student experience |
Faculty |
Primarily full-time faculty; academic preparation
and credentials, |
Greater use of adjuncts with professional
experience |
Usually staffed with part-time faculty
with professional experience |
Students |
Selectivity at admission |
Life and work experience is greater factor
in admission |
Life and work experience is significant
factor in admission |
Library |
Volumes in library |
Access to specific documents and resources
appropriate to program |
Access to specific documents and resources
appropriate to program |
Learning Technology |
Enhance lecture-oriented instruction |
Both lecture oriented and used to extend
access |
Both lecture oriented and used to extend
access |
Physical Facilities |
Extensive physical plant |
Still campus based but less reliance on
physical plant |
Physical plant is provided in response
to market demand |
| Productivity Outcomes |
Student credit hours and degrees. |
Student credit hours and degrees |
Bottom line is revenue generated compared
with expenses--profitability |
Governance |
Board of Trustees |
Board of Trustees |
Board of Directors |
Accreditation |
Institutional by region; individual programs
or disciplines are also accredited |
Institutional by region as part of parent
organization's accreditation; individual programs or disciplines are
also accredited |
Institutional by region; individual programs
or disciplines are also accredited |
Table 2. Comparison of For-Profit Adult-Centered Universities, Extended
Traditional Universities, and Traditional Residential Universities
As noted in Table 2, the continuing education or extension unit
operates within the basic value set and organizational structure of the product and
programs of the University. The primary mission of the unit is to make the product or set
of programs offered on the campus available to people unable to attend regularly scheduled
classes because of schedule or location. Continuing education units are concerned with
improving access for audiences unable to attend the campus, and their students usually
attend parttime and are older working adults who are viewed by the dominant university
culture as distinct from its major 18-22 year old constituency.
Generally, units serving adults are far less dependent upon subsidy
from the parent organization, and often are completely self-sustaining or even required to
generate funds to support the rest of the institution. Because they depend upon revenue
more than traditional university offerings, they tend to behave in a more
market-responsive manner. In short, they tend to be more customer driven than content
driven, and external needs receive greater priority in program decision making than does
internal readiness or support.
As continuing education units gain experience in using technology to
adapt programs to meet student needs for access, convenience and flexibility, their
influence can be expected to increase, and their value to the parent organization may also
grow, especially in those universities that have committed themselves to long-term change.
And as technology permeates traditional institutions, blurring of the boundaries between
types of students, core-teaching locations, funding bases, and instructional methodologies
is occurring. This blurring of boundaries is creating both institutional stress and
opportunities for reframing and restructuring missions and programs. As a result, the
distinctions that have been prevalent between continuing education organizations and
programs and their parent institutions are breaking down, with both the role of the
continuing education unit and the mission of the institution being changed in the process.
Examples of Extended Traditional Universities
Washington State University created the Extended Degree Program and WEB
University, where several degree programs are offered to students beyond the campus and
more than 70 courses have been developed on the Web for offering both on and off campus as
of Fall, semester, 1997. In a statement to the legislature outlining projected programs
for the 1997-99 time period, WSU envisioned "re-engineering" courses to
integrate multimedia presentations that will utilize sound, video, slides and animation as
part of normal lecture presentations. Other classes would be converted so that students
would use technologies like the World Wide Web and electronic mail to learn, giving them
the flexibility of internet-based instruction they can receive where and when they want
it. WSU predicts these transformed classes of Web University will improve the utilization
of physical facilities on campus. For instance, students will be able to take some classes
without leaving their dormitory room. Additionally, most "re-engineered" courses
will be suited for electronic export via satellite, Internet, or a K-20 Network. Many
others could be easily transferred from Pullman and branch campuses to new "Learning
Centers" located in many communities in Washington. The Web University will allow the
university to enhance learning and improve student outcomes while increasing access by:
- Optimizing the utilization of campus based physical facilities by enrolling residential
students in asynchronous courses.
- Expanding the reach of the geographically dispersed branch campuses and learning centers
to address the needs of place bound students.
- Enrolling students pursuing degrees or certificates at living-learning spaces off campus
[14].
Penn State University has created the World Campus, beginning with
several specific degree programs for which the University has special expertise. The World
Campus, according to its President, Graham Spanier, will "not be built with brick and
mortar but with the creative use of technology led by our faculty to extend selected
programs nationally and internationally. Through this approach, we anticipate propelling
Penn State's expertise not only to every citizen of Pennsylvania but potentially to new
students globally" [15]. With assistance from the Sloan Foundation, the University
expects the World Campus to be under way by early 1998, offering selected courses in
fields such as engineering, geographic information systems, chemical dependency, counselor
training, anesthesia case studies, advanced power engineering, and turf-grass management.
Penn State projects that by 2002, more than 30 certificate programs, degree programs, and
continuing professional education modules involving more than 300 individual courses will
be available [16].
The University of Wisconsin has created the Center for Learning
Innovation, a self-funded freestanding organization whose purpose is to develop and
commercialize university created educational software and programs. The Center is intended
to provide a competitive advantage by developing "critical resources necessary to
effectively market, develop, distribute, and support technology-enabled learning products
and services on behalf of the entire UW System."
"Such support is
different from that available for students sharing a common schedule at a campus.
Asynchronous distance learning on a global level requires access to support around the
clock and services provided at a distance. It is more efficient to have such service
available centrally to the institutions than to have them each develop this
capacity"[17].
California State University has created the CSU Institute for similar
purposes. The goal of the Institute is to enable CSU campuses and faculty to capture
market advantage for their academic and educational software and off-campus programs. The
CSU Institute with less than four years of history is the oldest systematic and
system-wide effort of its type in the United States. Its ventures are developed in
collaboration with the CSU campuses and are designed to contribute to California's
economic development and to generate revenue.
Its specific purposes include:
- Develop and commercialize the intellectual assets of the CSU.
- Foster mechanisms to fund further research and development.
- Assist in obtaining patents and licenses,
- Administer commercialization and marketing efforts, and manage intellectual property.
- Develop strategic alliances by linking participating campuses, governments, and business
partners into strategic alliances.
- Facilitate the delivery of education and training to non-CSU audiences.
- Provide "one-stop shopping" consulting service to business, industry,
government, and other countries.
- Provide development services for economic growth.
- Pursue business opportunities within and for CSU's large and distinct market.
- Capitalize on CSU's large capital assets [18].
The examples cited are all indicative of the high level of state and
national attention given to adapting traditional universities to this new competitive
environment. They each represent efforts of state systems and multi-campus investments of
resources, and taken together commit millions of dollars to these new endeavors. Each
University has received the support of its Board of Regents and operates with strong
endorsement from its president.
Several examples are offered of single institutions developing
responses to this new and changing environment. Each example reflects a particular campus
and institutionally determined set of assumptions and organizational framework, and
further illustrates the diversity of approaches being employed by extended traditional
universities operating within a parent organizational framework.
Virtual Michigan State University offers selected courses online. These
courses are clearly exploratory with little programmatic organization. This approach is
common among many universities that have taken note of new technologies but have not
committed whole-heartedly to using them systematically to develop complete programs
offered at a distance.
New York University operates one of the largest continuing education
programs in the United States. The School of Continuing Education at NYU has an annual
enrollment of more than 60,000, and serves a diverse mix of students, including some 3,000
international students representing more than 120 countries. NYU lists more than 30
courses offered via the Web in the fall semester of 1997, and has initiated Virtual
College to enroll students who wish to study online.
The University of California-Berkeley Extension is offering 60 courses
online in the fall of 1997 with 175 online courses expected to be available by the end of
1999. University Extension offers credit courses and certificates but does not offer a
degree online. UC-Berkeley-Extension is a completely self-supporting unit and is able to
direct its own curriculum development with very broad guidelines and latitude provided by
its parent organization.
Many other examples of exploratory efforts to adapt programs to serve a
growing marketplace could be cited. Despite examples of increased experimentation such as
those noted above, however, most universities have not challenged traditional assumptions
and approaches with respect to learning, students, and processes. It is primarily
continuing education programs and divisions that have become sufficiently entrepreneurial
to be successful in serving the adult market. In some cases their budget, enrollments, and
impact exceed that of most if not all other units within the University. Instructional
technologies have enabled many of these units to expand their efforts to provide improved
access to campus-based programs, but the impact is not yet widespread throughout the
University. Despite this success in serving a rapidly expanding adult market and in
adapting new technologies to better serve this market, their influence on core programs,
operating assumptions, and values remains low. Their capacity for adapting to changing
markets is often resented rather than appreciated by campus-based faculty, staff, and
students, who see such efforts as diverting precious resources, offering lower quality
education, threatening time-honored conceptions of teaching and learning, and diminishing
the status of institutions.
Olcott (1997) states:
.
.despite some remarkable success stories, the transformational
capacity of technology to reshape the modern academy's teaching and learning processes has
fallen well short of its earlier promise. Moreover, while the geographical boundaries of
educational access have been rendered obsolete by technology, the "real"
boundaries of turf and traditional service regions remain and are driven by political and
economic factors rather than by educational priorities. Parochialism remains the dominant
mindset for most institutions [19].
A key goal of extended traditional universities is to change the locus
of decisions about educational programs, priorities, budgets, and students in ways that
are more responsive to students and their immediate and lifelong needs. In short, the
basic idea of the extended traditional university, however it may be organized, is to
enable the parent university to respond more ably and nimbly to what students, the adult
marketplace and the university's publics say they want from their university. In doing so,
the university will be less inclined to base important decisions about programs and
priorities strictly upon considerations of content and program quality, or other largely
internally driven criteria. In fact, leadership for development of the extended
traditional university is coming most often from outside the core activities of the
faculty, and in many cases, far away from the internal center of the institution where the
majority of learning and teaching occurs. As long as this is the case, traditional
universities will be slow to embrace the integration of necessary changes required for
academic departments and faculty to take advantage of new program opportunities. One of
the most important and immediate but intensely challenging tasks for the traditional
university is to develop additional strategies for building leadership capacity for change
and decision-making structures that support change at the faculty level.
B. For-Profit Adult-Centered Universities
The marketplace for adult learning is increasingly attractive to existing and new
for-profit universities and organizations and private businesses [10][11]. For-profit
institutions of higher education have carefully delineated a focused educational market
[8]. These institutions are substantially different than traditional nonprofit
institutions of higher education, whether public or private. They derive almost all
of their operating revenue from the tuition and fees that students or their employers pay,
and they are also expected to return a dividend to investors who have provided the capital
to create them. They are very responsive to the demands of the educational marketplace,
but, unlike traditional universities, the marketplace they serve is largely career
oriented.
Because for-profit adult-centered universities operate based upon the bottom line, they
are also highly focused on developing and expanding programs that attract large numbers of
students, or offer entry or advancement to fields where employment is both plentiful and
lucrative. For-profit universities develop market-driven programs with standardized
curricula. Programs are then offered in many cases across multiple locations. Programs are
almost always career focused; they typically offer courses that enable students to either
enter a technical career or to advance to new management responsibilities. They make
minimal investments in expensive physical plants. Their student services are generally
basic learning centers with few frills. For better or worse, they sponsor no football team
or intercollegiate sports program. While they do not offer a full complement or
alternative to the traditional university, they are formidable competitors to universities
(including, in this case, community colleges) that are, or that seek to become, responsive
to the adult marketplace. Table 2 illustrates the dominant characteristics and assumptions
of for-profit institutions in relation to both the extended traditional university and the
traditional university. It should be noted that the frame of reference for comparison for
the extended traditional university is the set of assumptions and characteristics for the
traditional university as the parent organization.
Examples of For-Profit Universities
The University of Phoenix offers traditional classroom-based instruction at the
undergraduate and graduate level in many states. With enrollment growing from zero to more
than 57,000 students in less than 25 years, it is the largest and most successful of the
U.S. based for-profit adult-centered universities. Most students attend classes in
learning centers located in urban areas in more than a dozen western states. Enrollment in
its learning centers is growing almost 28 percent per year, and enrollment in its online
courses and programs grew 51% in fiscal year 1997. Approximately 3200 students are now
enrolled in its online courses and programs, which includes one of the first online MBA
programs in the United States. The University of Phoenix is also rapidly expanding
programs that serve corporations. For example, it has developed a contract with AT&T
to provide academic programs to AT&T learning centers worldwide [20].
Strayer College is a regional proprietary institution of higher learning offering
undergraduate and graduate degree programs to more than 9,000 students at nine campuses in
Washington D.C., Northern Virginia, and Maryland. In November 1997, its board of directors
awarded a 3 for 2 stock split on top of its regular annual dividend to shareholders.
Unlike the University of Phoenix but like many of its for-profit counterpart institutions,
Strayer College has not yet invested heavily in delivery by technology.
Education Management Corporation operates for-profit educational programs that have
provided career related education for more than 35 years. The Company offers associate and
bachelor degree programs and non-degree programs in the areas of design, media arts,
culinary arts, fashion and professional development. Its units include: The Art
Institutes, The New York Restaurant School, The National Center for Paralegal Training,
and The National Center for Professional Development. At the start of the current fall
quarter, 1997, total enrollment at Education Management's 15 company-owned schools
increased 18.5% to 18,763 from 15,838 in the comparable period in 1996.
Educational Medical, Inc. provides diversified, career-oriented post-secondary
education to approximately 6,500 students in 18 schools located in nine states. The
Company's schools offer diploma and/or associate degree programs designed to provide
students with the knowledge and skills necessary to qualify them for entry-level
employment in the fields of healthcare, business, fashion and design, and photography.
Sylvan Learning Systems, Inc. is a provider of educational services to families,
schools and industry. It also delivers computer-based testing for academic admissions, as
well as for professional licensure and certification programs at more than 1,300 testing
centers. The Company also maintains a network of more than 640 Sylvan Learning Centers
that provide personalized instructional services to students of all ages and skill levels.
Sylvan also provides educational services under contract to public and non-public school
systems through the Sylvan Contract Educational Services division, and provides adult
professional education and training through its Caliber Learning Network. Revenues for
Sylvan Learning Systems grew by more than 40% in fiscal 1997.
C. Distance Education/Technology Based Universities
Keegan categorizes distance education universities as originating from two
distinct traditions [21]. The first of these traditions is correspondence study, and the
second is the extension of traditional classrooms to new locations through the use of new
technologies such as satellite, broadcast television, cable television, and more recently,
compressed video and desktop video. More recently, a third category of institution has
emerged that does not neatly fall into either of these traditions. Using asynchronous
learning and taking advantage of new computer mediated conferencing systems and the
emergence of the world-wide Web, online universities offer a third model organized around
a technology approach.
The distance education/technology-based universities are all organized
around a technology-based approach to learning that seeks to minimize the physical
separation of the learner from the instructor or from other learners. They also tend to be
more adult and workforce oriented, although the large national universities enroll
substantial numbers of traditional college-age students largely due to the incapability of
traditional universities, especially in countries with rapidly growing populations. Table
3a notes major differences between the distance education/technology-based universities
and both traditional and extended traditional universities. Table 3b captures major
differences among types of distance education/technology institutions along selected
characteristics and assumptions that serve to differentiate the type of institution.
Input |
Traditional universities |
Extended traditional universities |
Distance education/technology-based
universities |
Philosophy |
Students come to campus |
Campus goes to students |
Campus goes to students |
Mission |
Mission defined by level of instruction |
Externally focused, degree completion and
workforce development |
Externally focused, degree completion and
workforce development |
Funding |
$ subsidy per full-time student |
More self-sustaining and market driven |
Reduce cost of access to higher education |
Curricula |
Relatively fixed & comprehensive curriculum |
More flexible curriculum content for workforce
competence and development |
More flexible curriculum-content for workforce
competence and development |
Instruction |
Most courses are lecture based |
Greater variety of methods and use of student
experience |
Varies by type, See Table 5 |
Faculty |
Primarily full-time faculty; academic preparation
and credentials, |
Greater use of adjuncts with professional
experience |
Some use of full-time faculty but with
greater use of adjuncts with professional experience |
Library |
Volumes in library |
Access to specific documents and resources
appropriate to program |
Access to specific documents and resources
appropriate to program |
Students |
Selectivity at admission |
Life and work experience is greater factor
in admission |
Life and work experience is greater factor
in admission |
Learning Technology |
Enhance lecture-oriented instruction |
Both lecture oriented and used to extend
access |
Varies by type, See Table 5 |
Physical Facilities |
Extensive physical plant |
Still campus based but less reliance on
physical plant |
No physical plant--students are geographically
separated from each other and the instructor |
| Productivity Outcomes
|
Student credit hours and degrees. |
Student credit hours and degrees |
Varies by type, See Table 5 |
Governance |
Board of Trustees |
Board of Trustees |
Varies by type, See Table 5 |
Accreditation |
Institutional by region; individual programs
or disciplines are also accredited |
Institutional by region; disciplines and
programs also part of parent organization's accreditation |
Varies by type, See Table 5 |
Table 3a. Comparison of Distance Education/Technology Based Universities
with Traditional Universities and Extended Traditional Universities
1. Correspondence Tradition
Many distance education universities have developed from a print and
correspondence tradition, and were primarily established to increase access to higher
education. They are usually operated as governmental entities and were originally
organized to serve a national development function. Daniel [22] refers to these
universities as "mega-universities." Several of these universities have
enrollments that number in the hundreds of thousands.
The British Open University is the best known of these national
universities that utilize traditional distance learning methods such as correspondence,
audiotapes, and videotapes. Generally the pedagogical method employed by distance
education national universities is a student studying independently of other students,
working with an instructor who guides the student in his or her learning activities and
courses. Most of these universities were established in the past 30 years, and they are
rapidly adapting their content and delivery to new technologies, markets, and alliances.
In North America, the largest of these universities is Athabasca
University in Alberta, Canada. Established in 1972 using correspondence study and
primarily non-interactive supplementary technologies such as audiotape and videotape,
Athabasca now enrolls more than 16,000 students at a distance. In 1994 its Centre for
Innovative Management launched an online MBA. This program is currently Canada's sixth
largest MBA program, and its educational framework signals a direction likely to develop
for other programs. The program emphasizes service to students, its ability to change
courses and even the curriculum quickly to respond to changing circumstances and needs,
and the development of student skill sets necessary for success in the corporate world.
While the program currently is focused upon Canada and North America, courses are also
offered in Japan, and discussions are underway to extend the program to other countries.
In China, three distance education universities, the Shanghai TV
University, Jiangsu Radio and TV University, and the China TV University System (CTVU)
enroll more than 1.5 million students annually. CTVU alone has graduated more than 1.5
million students during the past decade, which represents 17% of China's total number of
college graduates during this period [22]. Unlike many other of the distance education
"mega-universities," students at CTVU attend scheduled classes broadcast to
classrooms at their place of employment [23].
Sukhothai Thammathirat Open University (STOU) in Thailand is a
government sponsored university that enrolls almost 200,000 students annually in degree
programs and an additional 300,000 in short training programs and single courses. More
than three-fourths of the students are from rural areas of Thailand. More than 47
baccalaureate degrees, three graduate programs, and a number of certificate programs are
offered through STOU [22].
The Centre National d'Enseignement à Distance (CNED) operates under
the authority of the Ministry of Education in France and is the largest distance teaching
university in Europe. Operating at all educational levels using a primarily correspondence
education approach, CNED also uses satellite delivery to supplement its educational
program via correspondence. "The reality appears to be that CNED is using its most
glamorous technology, satellite video transmissions, to enrich rather than fundamentally
to change, its traditional correspondence teaching methods" [22].
In the United States, Empire State College in New York and Thomas
Edison State College in New Jersey closely resemble the national distance education
university model common in Europe and Asia. Both receive state funds and are based upon a
historical foundation of independent learning and self-study. Hall [24] compares Empire
State College with the British Open University and acknowledges the direct influence of
the BOU on Empire State's development. He analyzes the approaches to the establishment of
both institutions and finds few differences other than scale, with ESC being a state
university and BOU national in its orientation.
National distance education universities were established in many
countries struggling to meet increasing demand from rapidly increasing populations and
also to pay for improved access to higher education necessary to compete in a new global
economy. In that sense, these distance education universities function as a release valve
for traditional campus-based higher education, for which the number of available positions
or student slots is woefully inadequate. The origination of national distance education
universities occurred for somewhat different and more immediately political purposes than
other models outlined in this paper. They also suffer from significant government control
and bureaucracy and are not able to accommodate change easily, let alone lead new
developments and applications. While they are large, and significant for that reason, they
are unlikely to be able to adapt their instructional approaches quickly in a dynamic
environment.
2. Extended classroom tradition
Just as the distance education national universities were originally
organized to take advantage of improved mail delivery, several universities have been
organized specifically to take advantage of a particular delivery technology while
overcoming other organizational weaknesses of traditional universities. The extended
classroom tradition assumes that face-to-face instruction in traditionally structured
teacher-centered classrooms where students can interact with each other and with the
instructor is a preferred mode of learning, even at a distance. The extended classroom
connects learners who are separated from each other and the instructor through the use of
connective technologies such as satellite or two-way video and audio systems. The extended
classroom tends to be the most traditional of the approaches to distance education; very
often the class members learning at a distance are simply connected to a regular on-campus
classroom and are taught as part of the extended class. In all cases, the benefit is that
the student does not need to commute to the campus. However, students and faculty members
must generally conform to other requirements such as designated meeting times, and
sometimes, a location to which students must commute to in order to participate.
Numerous examples of the extended classroom tradition have developed
across the globe over the past 30 years as technologies have increasingly enabled two-way
interactive video and audio communication among multiple locations. The extended classroom
tradition has flourished, particularly in fields where changing professional practices
require continuous updating and where professionals are geographically dispersed. The
extended classroom tradition builds upon assumptions regarding faculty, content, and
teaching and learning, and therefore presents a less dramatic departure from assumptions
otherwise present in traditional universities. While the cost of implementing these
interactive technologies is high and cost-recovery in most cases is not possible, many
traditional universities with programs in selected fields of professional study have made
these programs available through this extended classroom format within a specific area
they serve. In many cases they have justified costs by comparing this method of delivery
with costs necessary to establish new full-service campuses and programs which otherwise
might be required to respond to the need.
New universities and consortia of universities have also formed around
the extended classroom tradition. One example is the National Technological University,
which was originally framed around national satellite broadcast technology to deliver
graduate level engineering masters degree programs to practicing engineers located in
business and industry. The program combines faculty expertise and course offerings at a
number of leading U.S. Colleges of Engineering. By allowing courses from multiple
universities to be organized and counted toward a degree, regardless of the institution
originating the course, NTU meets a need for portability of credits toward a degree for
mobile engineers who are often transferred across the country by their employers. Courses
of NTU are generally taught in a traditional lecture classroom format and are delivered to
groups of students who are employed at participating corporate locations; the technology
simply allows for enlargement of the on-campus lecture hall across distance. NTU offers
its own degrees, and has been accredited to do so by the North Central Association since
1987. It has also expanded its programming by offering certificates, selected
baccalaureate degree programs, and noncredit professional development workshops.
Other consortia in the United States have been organized to combine
resources to deliver educational programs using the extended classroom tradition, but none
has been as successful as NTU, nor has any other consortium developed its own accredited
degree program.
The National Universities Degree Consortium (NUDC) is a consortium of
13 separately accredited universities across the United States working together to offer
over 1,000 courses, 3 credit certificates, 11 baccalaureate degree programs, and 24
graduate degree programs through distance education. Courses include videotape and print
based independent study and correspondence study courses. Most courses are available
directly from the individual members of NUDC. NUDC has not been able to generate programs
that stand separately from its member institutions, although it has been able to
facilitate substantial cooperation in sharing courses, student services, and marketing.
3. Emerging online web-based universities
With the development of computer conferencing systems and the worldwide
Web, many new online universities have been established in just the past five years. These
universities are coming into existence specifically to utilize new web technologies that
support learning independent of time, location, and distance, but allow for students to
study together. They offer opportunities for students to learn through asynchonous
intereaction with each other and a faculty member. A classroom environment with student
and faculty interaction is created, but students are not all in the classroom at the same
time. On-line universities define their competitive market advantage based upon the
convenience of electronic computer based access they provide to specific programs. Unlike
the national distance learning universities, which have a historical tradition tied to
correspondence study and the post office, these new universities focus on the use of new
technologies to provide not only improved access but also improved interaction between and
among students. While their numbers are relatively few, and their structure is evolving
rapidly, following is a list of exclusively online universities and organizations with the
name of university currently available on the Web.
- Athena University
- California Coast University
- American Coastline University
- Commonwealth Open University
- Cyber State University
- Greenleaf University
- Kennedy Western University
- International University
- Open University
- Southern California University of Professional Studies
- Virtual Online University
Of course, few of these universities are accredited, and some may never
be. Their numbers do illustrate the idea expressed at the beginning of this paper,
however, that on the internet, not only can "anybody be a dog.," but also that
anyone can be a university as well.
As one example of the online university, International University (IU)
is a not-for-profit university owned by a for-profit company, Jones Cable. IU was
established by Jones Cable CEO Glenn Jones in 1995. International University offers an
online undergraduate and graduate degree in business communications. Enrollments in the
program are small, but International University's affiliation with other Jones companies
that market the program in the US and in Europe give the university a substantial base for
program delivery and enrollment growth. IU was approved as a candidate for institutional
accreditation in March of 1997 by the North Central Association, the regional accrediting
organization for the midwest states, making IU the first entirely online institution to
receive this status.
Magellan University was established in 1993 to use the tools of the
internet to deliver education beyond the boundaries of the conventional college campus.
The institution's motto, "Excellence in Education, Anywhere, Anytime,"
undergirds its intention to make programs available worldwide. To date, only courses have
been offered, but the intent is to develop degree programs in the future.
Distance education/technology based and online institutions may be
state funded (such as Thomas Edison in New Jersey), privately held (such as International
University), or they may be organized as a consortium institution (such as National
Technological University) which offers engineering degrees by satellite. They may be
focused upon a state, a country, a national, or an international market; whatever market
they select, their focus is on reaching that market through providing remote access to the
programs they offer. While all distance education/technology based universities share many
characteristics, as noted in Table 3a, Table 3b illustrates selected differences among
these three types of distance education technology-based institutions with respect to
funding, technologies employed and instructional approaches utilized, and productivity
measures.
Input |
Correspondence tradition |
Extended classroom tradition |
Emerging online/web-based universities |
Funding |
National and state investments common |
Industry often a driving force in funding
programs |
Tuition and industry funding likely to
drive funding |
| Instruction and learning modes |
Most courses are print and readings based,
interaction between instructor and student only |
Greater variety of methods, including real-time,
student-student, and student-instructor interaction |
Courses are online on the WWW, interaction
among students and with instructor occurs asynchronously and in real
time using computer conferencing; use of other technologies as appropriate |
Readings |
Print syllabi and readings often provided |
Print syllabi and readings often provided |
Online access to specific documents and
resources appropriate to program |
Productivity Measures |
Costs per student compared with traditional
higher education |
Dependent upon funding model selected,
but access to instruction is a key consideration |
Not yet established, but revenue generation
and cost reduction are two probable criteria |
Learning
Technology |
Generally one-way technologies to enhance
lecture-oriented instruction |
Generally two-way technologies to enhance
simulation of face-to-face classroom environment |
Generally two-way interaction supplemented
by online instructional references and resources |
Table 3b. Comparison of Major Differences Among Types of Distance
Education/Technology Based Universities
D. Corporate Universities
During the 1980's a number of corporations established umbrella
organizations to provide for the corporation's comprehensive human resource development,
education and training needs. Their reasons for developing comprehensive training and
educational programs included the need to develop basic educational competencies in the
workforce, acculturate employees into the company, improve cooperation, communication and
competencies of individual employees and teams of employees, and improve recruitment,
advancement, and retention incentives.
Many corporations have labeled these education and training units or
sub-units as universities, and a few of these units have developed academic degree
programs that sought and received accreditation. Corporations that have created units
designated as universities include American Express, Apple, Disney, First Bank of America,
Intel, MasterCard, Motorola, Xerox, McDonalds and Hart Schaeffer & Marx. While most of
these do not offer degrees, it is clear that these corporations view learning by employees
as important to their future. Thompson [25] suggests that the term corporate university be
defined as "an educational institution that offers one or more accredited academic
degree programs, and which is a wholly-owned subsidiary of a parent corporation whose core
business is not education." This provides a working definition for corporate
universities as described in this paper.
Eurich [26] identified at least 18 corporations that in 1985 offered
academic degree programs and predicted dramatic increase in the numbers of corporations
offering accredited degree programs in the future, possibly numbering in the hundreds.
Nash and Hawthorne [27] identified seven additional corporations in 1987, and also
predicted dramatic increases for the future. This expansion has not happened to the
degree predicted, and accredited degree-granting corporate universities are no more
prevalent today than they were in the 1980's. A few of the corporate universities
described by Eurich have become independent of their corporate parent organizations (DeVry
from Bell and Howell, for example), and several others have either ceased to offer degree
programs or have merged programs with existing universities. Other corporate universities
that were projected by Eurich to evolve into degree granting organizations have failed to
do so. In fact, Thompson [25] concludes that of the twenty-five universities identified by
Eurich and Nash and Hawthorne, only five continue to operate as distinctly corporate
universities, and these five have not expanded in academic scope or enrollments to any
great degree. Thompson identifies three major reasons for this somewhat surprising
outcome, given the optimistic predictions for corporate universities prevalent in the
1980's:
- a growing tendency of corporations to focus their attention and resources upon their
core business and to "outsource" corporate education;
- the demands of the accreditation process; and
- a growing willingness of colleges and universities to assist corporations in meeting
their educational needs.
These conclusions relate directly to the expansion of options and
program expansion noted earlier for extended traditional universities, and also for the
dramatic expansion of university-industry partnerships where the strengths of the private
sector and the universities are combined to form new structures and relationships.
E. University/Industry Strategic Alliances
Many businesses that are related either to emerging technology and
communications applications or to mainline applications such as publishing companies are
also testing the water in this new marketplace in a variety of ways. Market opportunities
are developing around both content and access, with content being the province of
universities and their full-time faculties. But with multiple forms of access increasingly
important and with no one technology or mode of access dominating the market, companies
with technologies that support learning that can be independent of time, location, and
distance are finding the marketplace attractive.
Partnerships and strategic alliances are also developing between and
among organizations that capture each organization's primary strengths. Increasingly,
these partnerships marry universities and for-profit organizations in ways that force
contact and interaction between very different cultures, goals, and operating principles
and assumptions. One potential benefit of this interaction is the opportunity for both
organizations to acquire much needed information and knowledge from the other, and also to
change some of the unexamined practices that may be inhibiting the organization from
developing a successful strategy in a changed marketplace. Another view offered by Sir
Douglas Hague [28] is that universities must develop partnerships in order to survive the
onslaught of competition.
To avoid being driven out of activities which they have imagined their
own by right, the universities will have to make substantial changes in what they do and
how they do it. Where they find that difficult, one solution will be to form alliances
with the interlopers. Increasingly, the choice will be alliance or annihilation.
Table 4 provides a comparison of characteristics and assumptions
related to both corporate universities and alliances between universities and corporations
that are becoming increasingly prevalent.
| Input |
Extended traditional universities |
For-Profit adult-centered universities |
Corporate universities |
University/ industry strategic alliance |
| Philosophy |
Campus goes to students |
Campus and non-campus philosophy |
Campus and non-campus philosophy |
Campus goes to students |
| Mission |
Externally focused, degree completion and
workforce development |
Almost exclusively workforce focused |
Exclusively workforce focused on corporation
needs |
Externally focused, degree completion and
workforce development |
| Funding |
Largely self-sustaining and market driven |
Market driven, workforce focused, and profit
driven |
Funded by corporation--centrally or by
department assessment |
Market driven, workforce focused, and entrepreneurial
but not necessarily profit driven |
| Curricula |
More flexible curriculum content for workforce
competence and development |
Focused on workplace needs; adult oriented |
Build corporate citizenship and employee
skills |
Adult workforce competence and development |
| Instruction |
Great variety of methods and use of student
experience |
Methods typically standardized across locations |
Methods typically standardized across locations |
Typically custom designed for market; use
of instructional design teams |
| Faculty |
Great use of adjuncts with professional
experience |
Usually staffed with part-time faculty
with professional experience |
Usually staffed with part-time faculty
with professional experience |
Combination of faculty with special expertise
and practicing professionals |
| Students |
Life and work experience is significant
factor in admission |
Life and work experience is significant
factor in admission |
Generally required to be employed by corporation |
Targeted groups of students, usually employed
adults |
| Library |
Access to specific documents and resources
appropriate to program |
Access to specific documents and resources
appropriate to program |
Access to specific documents and resources
appropriate to program |
Access to specific documents and resources
appropriate to program |
| Learning Technology |
Both lecture oriented and used to extend
access |
Both lecture oriented and used to extend
access |
Technology a method of reducing costs |
technology enables crossing boundaries
|
| Productivity Outcomes |
Student credit hours and degrees. |
Bottom line is profitability |
Profitability and contribution to bottom
line of corporation |
Profitability a primary concern, also innovation
|
| Governance |
Board of Trustees |
Board of Directors |
Directed by Corporation |
Limited liability companies-contractual
arrangements |
| Accreditation |
Institutional by region |
Institutional by region |
Institutional by region--Many not yet accredited |
University brings its accreditation to
the alliance |
Table 4. Comparison of Corporate Universities, University/Industry
Alliances, Extended Traditional Universities and For-Profit Adult-Centered
Universities
Partnerships are not just with universities. The private sector is
increasingly developing partnerships to deliver educational programs and services that are
created cooperatively and collaboratively across two or more organizations. For example,
UOL Publishing, a publisher of interactive and on-demand Web-based courseware for the
academic and corporate education market, and Course Technology, a publisher of information
systems learning materials for the post-secondary education market, have teamed up to
assist community colleges, proprietary colleges, extension and continuing education
programs in meeting the growing demand for distance learning. The UOL/Course Technology
partnership is intended to enable institutions wishing to take advantage of these growing
markets to get these courses up and running very quickly and reliably.
Universities are also forming strategic alliances with major companies
in fields such as publishing (Addison, Wesley and Longman), communications (Echo Star,
Prime Star), entertainment (Disney), and telecommunications (AT&T, GTE). For example,
UOL Publishing, Inc and Georgetown University are jointly creating and distributing an
interactive online course on the Internet through Georgetowns Virtual Campus. As
part of the agreement, UOL and Georgetown will, upon completion of the course, jointly own
the 10-module, 22-hour course in International Business for Georgetowns School of
Business. However, UOL will exclusively own all online distribution rights of the Online
Course. The Online Course will be made available to continuing education students
worldwide who are interested in enhancing their knowledge, skills and abilities in
international business management, marketing and finance. Upon completion of the Online
Course the students will receive a Certificate of Completion from Georgetown University.
IBM has developed its global campus program, a partnership program designed to help
colleges and universities use computer networks to redesign learning, teaching, and
administrative functions.
As with the Georgetown/UOL Publishing example, the traditional
university brings content and faculty to the enterprise, and the company contributes
technology, marketing, packaging, and business knowledge and thinking. Whether these
alliances will work is still to be discovered, but new contracts, limited liability
companies, and other approaches are being organized every day.
A growing number of corporations are also establishing strategic
partnerships with colleges and universities to jointly develop degree programs tailored to
meet their specific corporate needs[29]. Thompson [25] outlines AT&T's activities in
conjunction with a number of universities as an example, detailing relationships with
universities such as Penn State, Indiana University, University of Wisconsin, George
Washington School of Business and Public Management, Virginia Tech, University of Rhode
Island, Georgia Institute of Technology, Arizona State University, Rutgers, Columbia
University, the Wharton School of Business, and the University of Phoenix.
F. Degree/Certification Competency-Based Organizations
Organizations are also emerging to take advantage of recent changes in the
labor market brought about by the increasing pace of change, especially in technology
areas. With learning a requirement to stay current, and with workers changing both careers
and employers more often than ever before, individuals need to certify and re-certify
their competencies on a regular basis. In the professions, this has become a requirement
known as mandatory continuing professional education. In information technology, the
categories of certification include various network certifications, software competencies,
and system capabilities. Mechanisms for ensuring that individuals have requisite
knowledge, abilities, and experiences are being developed in many professional fields, and
it is inevitable that these approaches would be applied to higher education.
Whether mandated by law or by the marketplace, individuals, their
current and prospective employers, and the public rely on certification to document an
individual's knowledge and his or her ability to apply knowledge in real situations.
For-profit companies have developed around the need for certification, primarily in the
area of corporate training, and new nonprofit organizations are developing with
certification and competency-based learning as major products. Certifying learning and
knowledge through assessment appears to be a growth opportunity, one that existing higher
education organizations have little experience or infrastructure to develop and have
largely ignored. There appears to be a growth opportunity for existing or new
organizations that focus upon measuring student achievement. However, these measurements
will increasingly need to reflect and measure abilities to apply content to real
situations as well as to gauge skills more difficult to measure such as synthesis and
application, problem-solving, teamwork, and creativity.
An example of an organization set up for this purpose is Sylvan
Prometric, a worldwide for-profit distribution network for computer-based testing services
for academic admissions and professional licensure/certification. The challenge offered by
organizations such as these is captured by Olcott [19], who suggests:
Particularly if colleges and universities are to be competitive in the
marketplace, future models of financing must be reconstructed to recognize diverse sources
of learning (outside the traditional academic environment) that are not defined by FTE
(full time equivalent staff), credit hour, or clock hour restrictions. A competency-based
approach strikes at the heart of traditional funding structures in higher education. For
example, legislative appropriations are tied to FTE formulas while vocational funding is
defined in terms of student clock hours.
Certification assumes that people need to be able to demonstrate
knowledge and mastery, whether acquired through life experiences, self-directed learning,
employer-based learning, or university classes. Especially in information technology
areas, the need for certification has grown dramatically as technology shifts rapidly and
on the job experience becomes a more widely accepted method of acquiring knowledge and
skills.
One example of certification applied to higher education is credit for
proficiency based on life experience awarded by many institutions as part of their
academic degree programs. Such credit is awarded for experiences and knowledge gained on
the job and in other ways that can be demonstrated through testing, portfolio assessment,
and other evaluation mechanisms. Credit earned can then be applied toward certification or
toward a degree, usually in limited numbers. This approach is, however, very different
from the model of a degree-granting institution that awards the degree based upon
assessment of the student's mastery of core skills and competencies and demonstrated
critical knowledge.
New York's Regents College is an example of an institution offering a
complete baccalaureate degree program by examination. Regents College has no physical
campus, and teaches no courses. Students engage in a variety of guided activities in
preparation for examinations that are intended to measure the knowledge necessary to be
awarded a degree. Upon passing the appropriate exams, regardless of how the student
developed his or her knowledge base, the student is awarded a New York Regent's degree. A
standard for graduation supplants a standard for admission.
Another example of an organization that intends to offer a
competency-based certification degree is Western Governors University. Formed by the
governors of 13 western states in 1996, WGU intends to define the skills and competencies
of particular degree programs and award an accredited degree program to students who
demonstrate competency. Unlike the examination model of Regents College, competency may be
judged through a variety of mechanisms, including completion of coursework from
traditional universities, portfolio assessments, examination, and evaluation of workplace
experience. Competency necessary for the degree will be defined by WGU using faculty
specialists who will develop the degree program assessment process. Critical to the
success of an organization such as WGU is an advising and assessment process that will
guide students in a very personal and tailored way to appropriate learning resources,
materials, and institutions, thereby enabling the student to take the shortest and least
costly path to demonstrating competencies required for the degree.
| Input |
Characteristics of traditional residential
universities |
Characteristics of degree/certification
competency-based organizations |
| Philosophy |
Students come to campus |
No physical campus |
| Mission |
Mission defined by level of instruction |
Externally and market focused |
| Funding |
$ per full-time student |
Intended to be self-sustaining and market
driven |
| Curricula |
Relatively fixed comprehensive curriculum |
Curriculum is defined by competencies and
knowledge, not courses offered |
| Instruction |
Most courses are lecture-based |
Emphasizes student independent learning
and initiative |
| Faculty |
Primarily full-time faculty; academic preparation
and credentials |
No full-time teaching faculty advising
and support services are assumed by professional advisors |
| Students |
Selectivity at admission |
Life and work experience is major factor
in admission--graduation standards more important than admissions
standards |
| Library |
Volumes in library |
No library---access to materials through
cooperative relationships with other institutions |
| Learning Technology |
Enhance lecture-oriented instruction |
Access to information about courses and
programs provided using technology--technology important in providing
the maximum access to learning resources |
| Physical Facilities |
Extensive physical plant |
No physical plant |
| Productivity Outcomes |
Student credit hours and degrees. |
Student assessments, competencies
acquired, degrees awarded |
| Governance |
Board of Trustees |
Varies, from administrative board to consortial
representative board |
| Accreditation |
Institutional by region; individual programs
or disciplines are also accredited |
Institutional by region, although Western
Governors University is seeking accreditation from four regional accreditation
agencies in one process |
Table 5. Comparison of Degree/Certification Competency-Based
Organizations With Traditional Universities
As noted in Table 5, accreditation plays a vital role in establishing
the long-term viability of all of these models. Accreditation is generally concerned with
measuring traditional inputs to instruction, as earlier discussed. This approach emanates
from traditional universities, and institutional accreditation processes now in place in
the United States are geared to assessing the attributes of traditional residential
universities. Because all of the models discussed in this paper differ in fundamental ways
from traditional institutions, as earlier discussed, and because universities are
increasingly offering programs internationally, regional accrediting associations are
under increasing pressure to change the way in which they accredit institutions, and the
criteria they use to establish eligibility for accreditation. An excellent example of this
major challenge is the establishment of the Western Governors University. Western
Governors University is based upon measuring student learning outcomes in very personal
and direct ways, and its quality must be assessed upon how well it accomplishes this goal.
WGU also intends to serve students across a wide geographic base. These characteristics,
among others, challenge the traditional regional institutional accreditation process. The
response of the accrediting associations has been, in the case of Western Governors
University, to convene a cross-regional accreditation team to develop guidelines for
evaluating and assessing this new institution.
It should also be noted that the models framed by this paper do not
capture all aspects of every institutional example. There are many variations, and they
are organized in increasingly diverse ways. Of particular note are the numbers of
universities that intend or are established to capture a global rather than a regional or
national market for university education.
G. Global Multinational Universities
The marketplace for learning is becoming global [30]. With new
technologies, neither language nor distance is a barrier to access, although cultural
norms and patterns are among the formidable obstacles to learning across political and
cultural boundaries.
There are currently few examples of universities that are truly global
and multinational in character, although there are hints of what such a program might look
like. San Diego based National University has developed a "global MBA," offered
online, that is available in Argentina, Turkey, Mexico, Ecuador, and Portugal. The program
establishes linkages with local host institutions; these institutions provide faculty
members and services for enrolled students on a contractual basis. Other universities are
attempting to expand from a national to an international base of operation.
Presidio World College for Sustainable Development, based in San
Francisco, is a new university that has as its goal creating learning opportunities for
people worldwide to learn about sustainable development.
Athena University is a virtual online university established in 1994 to
offer online education. Operated by Virtual Online Services International, it has entered
into a partnership with the Groupe Ecole Superieure de Commerce of Pau, France, to offer
an international MBA. ESC-Pau is a private business school and a member of the Conference
de Grande Ecoles in France, a group of elite private business and technical schools with
rigorous admission requirements. Their graduates are placed in management and
administrative positions in international corporations around the world. The emphasis of
the MBA program will be the integration of technology and management strategies. The
stated goals are to involve content experts from around the world as instructors, offering
a global student population access to global best practices.
The Global (electronic) University was announced in 1992 as an
institution that would begin as a global university. Its founder, Takeshi Utsumi, stated
its goals as:
Global (electronic) University (GU) (trademark symbol) consortium, a
divisional activity of GLOSAS/USA, seeks to improve the quality and availability of
international educational exchange through the use of telecommunication and information
technologies. GU's main activity is to achieve global electronic education across national
boundaries by developing a cooperative infrastructure, so as to enlarge and expand the
present exchange of educational courses into a worldwide system. GU will provide
under-served people of the developing countries with access to the educational excellence
available from all the world's finest sources. Students could access the sources with a
far greater variety of educational philosophies, courses and instructional styles than
they could ever encounter on a single campus [31]. The Institute for Global Learning is an
educational undertaking of The Laurasian Institution. The mission of the Institute for
Global Learning is the development and administration of educational programs that result
in participants who understand the cultural foundations of economic, political, and social
policy and are competent in dealing with and among diverse cultures. The Institute for
Global Learning offers courses of study especially appropriate for individuals interested
in careers related to international business and public service.
Other educational programs of The Laurasian Institution include:
Providing intensive training to business people engaged in international management and
marketing;
Offering information and advice to business and other adult travelers on cultural and
professional aspects of particular destinations;
Language training, cross-cultural consulting, policy research, and other services
provided through Global Resource Integrators, a not-for-profit membership organization
consisting of The Laurasian Institution, The Monterey Center, and Global Education Systems
[32].
UOL Publishing, Inc. and Global One, the international joint venture of
Deutsche Telekom, France Telecom and Sprint, have formed the Global One Virtual Campus.
The Virtual Campus will offer Web-based training for Global One locations in Germany and
Virginia and will be expanded to include employees located in the Pacific Rim. The Global
One Virtual Campus will initially offer access to approximately 30 courses from UOL's
content library. Courses in telecommunications and management will be made available via
Global One's worldwide infrastructure of over 1,200 points of presence in more than 65
countries.
Another example of transnational organization is the Global Alliance
for Transnational Education (GATE) formed in 1996. GATE's purpose is to be a source of
information about educational programs and certifications worldwide for corporate human
resource professionals and higher education officers and students. Its purpose is to
maximize information and assure quality in a rapidly globalizing education and human
resource market. GATE's programs and services are designed to:
Explore current issues companies face in international hiring and
universities face in international admissions;
Network across national borders with other corporations and educational
associations and institutions;
Access global information on educational systems, institutions and
transnational educational offerings; and
Develop principles of good practice and recognition for quality
international education and training.
While GATE does not offer programs, it was formed in recognition that
the number of educational programs offered on a worldwide basis is about to explode, and
that some mechanism for global information sharing and quality standards needed to be
established. According to GATE literature, there is a need for the organization because:
The global marketplace and new technologies are contributing to the
rapid globalization of higher education. Today's business environment draws its
professional work force from all corners of the globe. Human resource development
divisions of multi-national corporations face the increasing challenge of evaluating
courses and degrees from other countries when identifying personnel. Further, higher
education is no longer provided solely within national borders. Provided both by the
higher education and corporate sectors, transnational education can be found in multiple
forms, provided both electronically and through traditional instruction and training
programs. Issues of quality, purpose and responsibility abound in this new borderless
educational arena and the time is ripe for an international alliance of business, higher
education and government dedicated to principled advocacy for transnational educational
programs [33].
GATE represents an early pioneering effort to develop international
standards for quality that recognize that higher education is no longer a local or
regional or even national enterprise, and to promote the use of technology in expanding
global access. The organization may be the foundation for a new form of institutional
assessment and accreditation on a global basis, or it may be no more than a clearinghouse
for globally accessible higher education.
While there are no concrete examples of fully operating global
universities that have been established purposefully to operate in a global context, the
examples offered demonstrate some future possibilities. It is conceivable that while there
are no good models currently available, all of the models described in this paper are
headed in this direction, much as prospectors for gold looking for the mother lode.
IV. CONCLUSION
This paper has presented and analyzed characteristics of seven
emerging models for higher education in the future. The models were derived from analyzing
trends, characteristics and examples of emerging organizational practice. They include:
- Extended traditional universities
- For-profit adult-centered universities
- Distance education/technology-based universities
- Corporate universities
- University/industry strategic alliances
- Degree/certification competency-based universities
- Global multinational universities
One model, distance education/technology-based universities, was
further analyzed according to the type of technol |