Transcript Higher education landscape worldwide

Global trends and future of higher education
27 November 2013
Business and University
Kyiv, Ukraine
Higher education landscape worldwide will undergo massive changes in the
next few years
Existing ‘dominant university model’ - a broad-based teaching and research institutional setup, will turn unviable
Challenging times ahead!
Rapid growth in student
number
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Higher education students will increase by 300% from 100 million in 2000 to 400 million
in 2030 with high growth in emerging markets like Asia and Latin America
Digital learning
methods
Classroom teaching will not be able to leverage potential benefits of digital technologies. It
will not be able to compete with the reach of the digital platform
Change in broad-based
teaching approach
Broad range of disciplines and a broad mix of student segment will not be able to deliver in
future when developing expertise will be the requirement
Global trends in higher education
Future of education
Education landscape of the future characterized by blurring of boundaries
2010
Levels of education
Move to a culture of lifelong learning
Higher education
and industry
Rise in contribution
of industry in educational
development
Geographies
Education spaces
Increase in globally
delivered education
and accreditation
Limited face-to-face
interaction between
students and teachers as
online learning becomes
the order of the day
2050
Teacher- student
Limited face-to-face
interaction between
students and teachers as
online learning becomes
the order of the day
Blurring effect
Changing the role of academicians
Opportunities
Star
academics
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Presenters who would be
recorded for broadcasting
of lectures
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Research
Academics
Greater opportunities for international exchange
of students
Greater synergy between industry and education
Access to automatic proof of accreditation
for employers during hiring process
Multiple channels to gain knowledge and build skill-sets
Academicians who focus
solely on research
activities
Future
of
education
Global trends in higher education
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Curriculum
designers
Academics responsible
for translating the syllabi into
formats suitable for the online
learning environment
Delivery of quality education
Access of educational platforms to less advantaged
Prevent over shadowing over local languages
by English
Balance between virtual and human exchanges
Global validation of credentials
Challenges
1
Four key trends, especially ‘use of digital technologies’ will lead to this transformation
Use of digital technologies
Global mobility
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Global trends in higher education
Democratization of knowledge
Integration
with industry
Asian and African countries will see massive growth in e-learning
services
Regions
Growth rate of eof e-learning market
market (2011-16 E)
Global
23%
Asia
17.3%
Eastern Europe
16.9%
Africa
15.2%
US
15%
Middle East
8.2%
Vietnam, Malaysia, Romania, Azerbaijan, Thailand, Kenya, Slovakia, the Philippines, India
and China represent the top 10 fastest growing markets, with growth rates above 30%
► US
is the global leader in online education, with 6.7m students (32% of those in higher
education), taking courses online
► Turkey
aims to equip more than 15 million students with tablets by 2016, with a
US$1.4 billion investment
► Africa
is the world’s fastest growing e-learning market, with a growth rate of around
38.6% for cloud-based e-learning products
The emergence of MOOCs has increased the penetration of e-learning services to a great extent
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Global trends in higher education
MOOCs promise to revolutionise the delivery and reach of quality education
across the globe
Overview of prominent online course providers
MOOC platform
Enrolled
students
Number of
courses
Country-wise origin of course enrolment*
1%
Number of
institutions
2% 1%
6%
13%
Coursera
3,670,803
374
70
EdX
900,000
53
27
8%
69%
US
Udacity
400,000
25
Brazil
India
China
Germany
Nigeria
Britain
1
*Based on data for the three players
► It has been
estimated that four new 30,000-student universities need to be constructed per week, to accommodate children
who will reach enrolment age by 2025
► MOOCs have the potential to help address this issue by significantly reducing the workload on educational institutes
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Global trends in higher education
Other new powerful technologies will emerge
These technologies will disrupt the traditional trillion-dollar education model by changing the basic
fundamentals
Cloud Computing
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3D printing
Adaptive learning
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Streamline admission and enrollment process
Enable access to costly subscription of journals
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Learn and interact with 3D models
Students to have their individual digitised, lifelong learning profile
Global trends in higher education
Democratization of knowledge will start an ‘education revolution’
Access to education is no longer limited to students of developed economies
Proportion of 18-22 year olds in post secondary
education
29.0%
East Asian & Pacific
30.0%
21.0%
40.5%
Latin America
China
2010
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15.8%
MENA
India
Implications
22.6%
17.9%
9.4%
25.9%
8.0%
2000
Global trends in higher education
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An ‘education revolution’ to open up new
markets and opportunities for global
partnerships
New gates for competition especially from
the best emerging market universities
Students, teachers and universities are increasingly becoming globally
mobile
Increasing mobility of students
2011
4.3
►
2000
2.1
Changing preferences for destination of study
►
1990
Number of students going abroad for education has grown more than
three times in last three decades
Traditional source countries like China, Malaysia and South Korea will
become destination countries
1.3
Rising spread of academic brands
1980
1.1
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There are 200 International branch campuses (IBC) mostly of Ivy
league universities with 38 more to set up in next two years
Number of students (million)
enrolled outside their country
of citizenship
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Global trends in higher education
Changing industry – university relationship:
industry is no more only a customer for universities
New model
Old model
Industry as a…
Industry as a…
customer
partner
customer
competitor
In order to survive, universities need to build significantly deeper relationships with industry in form of Industry
based learning and internships
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Global trends in higher education
Driven by the key trends, university business models will become more diverse
Universities are expected to evolve in three broad lines
1.
Streamlined Status Quo
2.
Niche Dominators
3.
Transformers
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Global trends in higher education
Streamlined Status Quo: Some universities will maintain status quo while
streamlining operations
Universities will focus on increasing profitability and efficiency while remaining broad-based and provide multiple
disciplinary courses
Discontinue unprofitable disciplines
Save resources required to maintain international competitiveness in key
disciplines
Invest in digital sales and delivery
channels
Open up new markets and more efficiently serve existing markets
Outsource back-office functions
Realise lower operating costs and drive efficiencies through shared
services arrangements with like-minded institutions
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Global trends in higher education
Niche Dominators: Some universities will fundamentally change the services and markets
they operate in
The challenge of staying competitive in domestic and international markets will drive the shift towards this model
Focus on specific
customer segment
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Industry alliance
Streamline back
office
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Reduce range of disciplines and focus on particular customers
such as distance learning students
Build deep alliances with industry, including partnerships to
support R&D
Streamline back office, including using outsourcing/shared
services models to drive efficiency
Global trends in higher education
Transformers :Some universities will carve new markets that merge part of the higher education
sector with other sectors
This disruptive model will be led by private providers, new entrants and savvy public universities
New Customers
Content wholesalers, financiers, employers and parents will be new customers
New areas of
specialization
Content aggregation, mass distribution, certification will be new areas of specialisation
Combine education with
industry services
Combine traditional education services with services in related industries such as media
and entertainment and financial services
Outsource student
services
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Outsource student services while retaining ownership of their customer relationships
Global trends in higher education
Conclusion
►With “massification” of education we need to identify
new operating models for education institutions which
will allow them to provide high quality education and
appropriate skills at affordable rates.
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Global trends in higher education