Is there a need for New Higher-Education Business Systems
PART A: Is there a need for New Higher-Education Business Systems
This market research report will investigate whether there is an opportunity to deploy new education products and services with existing institutional education facilities. The objective is to increased qualification services through alternative engagement models with educa
tional institutions.
Fig 1: graphs population information provided by ABS Data from 2009 estimates.[1] For the purposes of this research report, it is assumed that the potential education market is equal to the population between the ages of 16 and 60 years of age. The number of potential educational participants in this market is approximately 13.56 million, of a total geographic population of approximately 21.875 Million.
In a web-based publication entitled “Newman reader – idea of a university”[2] a university is described as a place of “teaching universal knowledge”.
Whereas in more modern times, a university also provides a qualification, or certificate, which is in-turn required by employers seeking skilled staff. Over time, the requirements for qualifications have increased substantially. The Chart below has been generated from further ABS Data[3] outlining the current understanding of educational demand drivers. Using this model, the highest rate of participation and unmet demand totalled to approximately 2.88 million potential participants; Whereas, the population statistic outlines a much higher potential level of participation not taken into account through this ABS data-model.
The newman reader publication described the history of universities with church and how, through historical development ‘the office of intellectual education’, is maintained by the university sector. Yet, in 2008 the total number of students within all higher education providers only amounted to just over 1.05 million people[4]. This is a seemingly small portion of total population which in past would be reasonable overall; however, in the information age we live in today, qualifications have become increasingly relevant and through technology, information is more accessible.
Through the development of Internet or “online” communications, our lives are increasingly information rich. We are provided a range of new opportunities to learning on a continual basis, throughout their daily lives. As a result, Online Education Markets are growing rapidly with an estimated market valuation of $3.5bn in 2010[5] suggesting demand for accessible higher education services is significantly beyond that which is catered for by traditional education sectors.
Traditional institutions are more readily integrated TAFE and University facilities, with on-going web-based development to encourage further engagement. However a range of external providers are starting to emerge.
These external providers include;
Online Education Providers (ie: http://www.kaplanprofessional.edu.au/About_Us )
Registered Training Authorities (ie: www.mwtinstitute.com.au )
Private Colleges (ie: http://www.tradecollege.com.au/atcnb/info )
The primary driver for this educational diversification is the development of Internet technology and industry demand. An increasing portion of the overall educational services demand is becoming fulfilled external organisations not directly associated to university infrastructure. This trend continues to risk the revenue stability and growth of university-orientated institutions through a reduction in assignable revenue.
Online education as defined by IBIS WORLD for the purposes of their report is courses where 80% of the education service is delivered over Internet. The industry statistics outlined by this report also states that the market valuation is estimated to be $1.15 Billion in 2004-5 to $3.54 Billion in 2009-10. This fundamental statistic outlines a clear market need for new educational models to be provided to the community at large, which traditional university programs are failing to engage on an effective basis.
The experience of participating within a University Environment is difficult to replicate elsewhere. Learning outcomes gained through short-courses; do not provide the same or similar level of educational outcome than what could be engendered through long-term associations to university environment. Regardless of the virtualisation or cloning of education service styles that may be less effective overall, the significant take-up and market development outlines a clear opportunity that is under-capitalised by university institutions.
Does this point to limitations in the existing university enrolment and educational development process?
In a report by Crikey entitled “university reform; yes – but what is it for”[6] discusses the issue, “the now clear signs that the quality of the educational experience is declining”. The term decline is remarkable word to associate to the undertaking and provision of educational services. It goes on to talk about developing the accessibility of education, and how the values of education policy has seemingly changed, using linguistics moreover linked to industrial performance, than terms used when describing the development of humanity and intellect. The article continues to discuss reports, which highlight some of the issues facing Australia and how this mandates action within the education sector.
A Consortium of universities has banded together through an organisation entitled “group of eight Australia, or “Go8″. In a “backgrounder’ document discussing their initiatives for “strengthening the Australian Qualification framework”[7] is outlines in one of its key points elements it sees, that act to “reduces the choices and pathways available to students”. In yet another paper, produced to discuss future growth rates[8], it talks about participation rates rising by single digit numbers, whilst the totals continue to be less than 1 in 5 people between 15 and 64, similarly broken down into age-groups.
In recent news reports, Monash University exposes its cost cutting measures, “slashing staff across its campuses”[9]. Yet the question must be asked, why if such a small percentage of the population obtain educational qualification related services, why not just get more students?
The same paper describes, the cuts in expenditure are in part a result of a “downturn in international student numbers”. Yet, as the knowledge nation, why is this a problem? Especially when the market overall is growing through the application of alternative education providers. The article continues to discuss how “more than 20% of revenue is sources via international student fees”, which in effect is resulting in a damaging impact on our Australian institutions for education services in cases where these student numbers, and revenues drop, suggesting that overall the revenue models for which the university functions, has a fundamental preference for encouraging international student growth, over the tuition and skills development of the local population due to a basic financial necessity.
There is a clear and significant opportunity for growth through the development of new engagement models that improve accessibility and utility of university institutions. This can be used to assists organic revenue growth and community engagement.
PART B:
This paper will continue by examining the current market to identify whether there is a realistic opportunity to increase participation in higher education, to beneficially develop this mantel of social doctrine. Through the use of further research, case studies have been developed to examine both potential opportunities in rural and regional Australia, as well as some of the dynamics surrounding outstanding achievement and its association to university and/or further studies.
Attached are two appendices. APPENDIX A is a case study developed about The Mansfield Armchair Cinema. The ability to associate new market segments to previous centuries to the social schema of practical tutorial was tested in terms of traineeships and new industry. It found that there is an inability to associate the full-scope of learning outcomes achieved, with university relevant pre-requisites for entry into an undergraduate degree course. The case-study also found that the government has examined the issue and maintains a key interest in the area for the benefit of rural and remote communities overall, with special consideration of the youth population and the maintenance of this population for communities on an inclusive basis.
Appendix B explores leadership and undertakes a virtual survey of leaders, summarising their skills, which are then associated to their roles. A Group of 41 profiles were identified on LinkedIn who have shown an internationally recognisable level of excellence for their particular field.
Interestingly 8 out of 41 selected, did not have any education listed and/or listed “school of hard knocks”, or similar. Those who were qualified, listed courses in company management as one of the highest results, whilst other results included Communications, Computer Science, Engineering, Economics, History, and perhaps more interestingly, ‘Experimental Psychology’. Many of these individuals, even at the top of their fields, did not have a full embodiment of relevant qualifications most beneficial to their roles.
Even though these individuals lead the world in their particular fields and represent a very minor percentage of the overall population the skills of these individuals largely are not represented in qualification terms.
As another article sourced via the Internet describes, many industry heavyweights continue throughout very successful careers without any formal qualifications.
The question then becomes, whether it is the loss of the individual for not obtaining qualification, or a loss for the institution for not finding an appropriate means, to qualify these individuals for the field in which they quite obviously show brilliance[10].
Findings
A process of educational retooling is necessary and already underway; however these initiatives are seemingly misaligned with key stakeholders on an educational basis. On a broad level, the retooling initiative has formed around a preclusive concept of “e-learning”, and externally governed RTO’s, where a more inclusive strategy could be defined to assist the local population through the provision of enhanced opportunities to become involved with higher-education services provided by university infrastructure.
It is also imperative to understand the link between research, innovation and intellectual capital.
The economic performance of our nation depends on our capacity to leverage intellectual capital. If and where this pipeline leaks, opportunities are lost in research time, which diminishes incremental development, or valuations on innovation and overall incrementally affects commercial considerations for continual development of intellectual capital. New supervised learning paradigm are seemingly required for the future of our nation, such measures should aim to deliver the necessary grounds required by university institutions to plug the gap and involve a minimum of 2 out of 5 people rather than the current number of approximately 1 out of 5.
This in-turn should assist with both revenue creations, in addition to the provision of a method to make university qualifications more relevant overall. Through fixing some of the gaps in this leaky pipe, limitations exhibited by those previously incapable of engaging educational facilities should be improved and economic development, including the balance sheet of universities, should prosper in a manner aligned with student’s engagement figures.
Part 3: Recommendations
There is a clear opportunity to enhance the delivery of a mobilised identification and recognition of intellectual development throughout the local population.
There is an opportunity to enable an educational subscription services to 4 out of 5 people within the educationally segmented age bracket, in Australia.
Online Learning is Growing, whilst universities are scaling back staff due to issues pertaining to international student revenues. Revenue structures could be addressed further to better align learning opportunities with population (the people’s) demands.
These opportunities need to be developed for the benefit of all Australian’s. Paradigms may likely be assistive for other markets overseas.
There are further opportunities for universities to engage potential students, and for students to be provided new ways to engage universities. These potential opportunities should be explored and tested.
[1] 3201.0 Population by Age and Sex, Australian States and Territories
[2] http://www.newmanreader.org/works/idea/preface.html
[3] ABS cat. no. 4102.0, Australian Social Trends, Data Cube – Education and training
[4] 2008 Full Year Student Summary tables – All Higher Education Providers - XLS
[5] Page:16 X0008 Online Education in Australia july 2010 Industry Report IBIS WORLD
[6] http://www.crikey.com.au/2009/10/14/university-reform-yes-but-what-is-it-for/
[7] http://www.go8.edu.au/storage/go8statements/2010/go8backgrounder12_strengtheningAQF.pdf
[8] http://www.go8.edu.au/storage/go8statements/2010/go8backgrounder10_HE_demand_revised_version.pdf
[9] http://www.monashweekly.com.au/news/local/news/general/monash-university-weighs-up-ways-to-cut-costs/1971375.aspx
[10] http://www.openforum.com/idea-hub/topics/lifestyle/article/12-business-founders-who-succeeded-without-a-college-degree-glen-stansberry
