Evolving Higher Education Business Models

Evolving Higher Education Business Models
with software coding preparation and close ties to employers to prepare liberal arts graduates
for success in fast-paced technology-driven businesses. As such, they are competing
with both career services in traditional undergraduate institutions and, at least partially,
with graduate schools. A final set of disruptive organizations are those exploring ways to
document what individuals know and can do in ways that could challenge the traditional
credentialing process that colleges and universities have fulfilled. Degreed and LinkedIn
are each attempting to document learner competencies regardless of what institution they
attended. Again, these models have close ties to employers seeking skilled staff.
These examples are meant to illustrate that the different resources and processes colleges
and universities use to deliver education are evolving within traditional institutions
and facilitating the rise of alternative education providers. Yet, little is known about the
financial implications of these new delivery models. In fact, the value proposition for
higher education is evolving beyond the place- and time-based, faculty-led experience
that people usually associate with college. Institutions will likely need to adapt at least in
some ways to prosper in this emerging ecosystem in order to remain relevant and seize
opportunities such as:
• Understanding the nature of change and the potential to closely reexamine
current practices and make significant change.
• Using data to significantly strengthen support and service to all aspects of the
learners’ life as they engage with the institution.
• Understanding the potential big data has to redefine the meaning of lifelong
learning from an institutional to a personal service.
• Redefining the meaning and the structure of career and professional development
and support through life.
• Dramatically customizing services to individuals at a scale unimaginable 10
years ago.
• Dramatically improving learning in the humanities, math and science with
learners who have not been able to access high-quality opportunities in the
traditional system. (Smith 2013)
The value proposition for higher education is evolving beyond
the place- and time-based, faculty-led experience that people
usually associate with college. Institutions will likely need
to adapt at least in some ways to prosper in this emerging
ecosystem in order to remain relevant and seize opportunities.
Students, their families, industry, taxpayers, and voters are pressing colleges and universities
to deliver more, better, and cheaper educational and research services to their com-
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