The Future University Business Model: Who Will Survive?
There is general agreement that the landscape of Higher Education and Research is dynamic and rapidly changing. But, despite decades of success supported by standardized tuition and fee-based operating models, what is less discussed is that the long-term viability of many institutions may actually be in question.
Institutions must unquestionably seek new ways to respond to changes in constituent trust and needs, and must adapt to changing demographics and learning models, as Higher education and learning is increasingly moving off-campus with global outreach.
Faculty and students of the future are ubiquitous, digital, and mobile. Although institutions strive to be more constituent-focused and responsive, competition for students and superior faculty has never been greater. The constituent expectations for superior service and immediacy are only growing; but, escalating tuition and fees are no longer sustainable.
The dynamics of advanced learning models and superior service delivery are not the only areas that require significant adaptation.
Institutions that will survive must fundamentally change their marketing and operating structures to function more as leading-edge businesses. New, innovative business models will continue to evolve and will need to be delivered to drive superior learning and research outcomes. Reputation and ranking must be leveraged for successful recruitment of students and faculty, or institutions left on the outside looking in may simply “go out of business.”