Elements of Quality Online Education cation

The Business of Online Education: Are We Cost Competitive?Figure 2. 2003 Cost per SCH, by Institution$300.00$250.00$200.00$150.00$100.00$50.00$0.00UTPAUTTCUTSAUTAUTDUTEPAustinUTPBUTTUTBIII. TRENDS AND IMPLICATIONSThis study is by no means wide or broad enough to be conclusive for generalizing online and face-to-facedelivery costs. However, if it’s assumed that this study is indicative of a common cost structure in onlineprograms, then several interesting points may emerge. First, an average or lower-than-average deliverycost is an additional argument in favor of this mode of delivery and can play into a return-on-investmentcalculation when amortizing development costs.Second, while this study focuses solely on delivery costs, development costs must not be ignored. Thereare significant labor and technology costs in building a quality online course. In some cases, this initialcost can be enough to dissuade a real commitment to quality online delivery. As noted, severalinstitutions which ventured into online from a profit perspective have changed their model or closed theironline operations. Institutions that have taken a more measured approach to online have found variousdegrees of success, and some are indeed generating revenue.It is worth pointing out that the TeleCampus courses are offered with an average faculty-student ratio of1:25. As we endeavor to increase class size (while continuing to maintain quality), the cost/SCH willdecrease, and, since the TeleCampus enrollments are growing at a faster rate than on-campus enrollments,the TeleCampus cost/SCH should decrease faster than the on-campus costs.The cost study also indicates that online courses may have a role in mitigating, or at least delaying, oncampusconstruction costs. According to the Texas Higher Education Coordinating Board, in the State ofTexas there is a documented need to enroll 500,000 new freshmen by the year 2015. If online instructionis assumed to be deliverable at a lower cost/unit than face-to-face, there is then an argument to be madefor increasing online offerings. Hybrid courses could be used to make more efficient use of existingfacilities while completely online courses could defer or delay the need to construct additionalclassrooms.180