Implications of Government Reforms for Online LearningAFR Higher Education Reform Summit

12-13 November 2014

What we’ll cover today

• Competition in digital markets

• Consumer expectations

• Traps to avoid

• Government’s online agenda

Competition works differently in digital markets

The internet doesn’t respect national borders

Competition works differently in digital markets (cont)

No cosy oligopolies here

Competition works differently in digital markets (cont)

Adapt or die

1st Wave(80s-90s)

2nd Wave(00s)

3rd Wave(10s)

Next Wave

“Build the internet infrastructure”

“Build stuff on the internet”

“Build apps for the internet”

“Integrate the internet into other things” ???

Competition works differently in digital markets (cont)(adapted from address by Steve Case, founder of AOL)

Straddling rarely works

Competition works differently in digital markets (cont)

Illustration: Harvey Norman

“most of the online business will be conducted by traditional retailers”

“over 90% of the e-retailers will in fact all go out of business one after the other”

Online retailing “is a complete waste of time”

Phase 1: “What’s all the fuss about?”

Phase 2: “This is unfair, and it’s all the GST’s fault”

Phase 3: “I don’t like it, but we’ll do online”

Phase 4: ???

"I am reluctant to do it but I do it, because if I don't they label me a dinosaur. I'm out there labelled as a bloody dinosaur.“

20122000 2010 2018

“There have been a number of times where I've thought to myself, are we going to go broke? What the hell's happening here? And it just gets worse.”

“What we are talking about is someone buying a guitar in New York, for instance, and having it sent over here 30 per cent cheaper. It is giving that overseas retailer the advantage.”

?

“There are a lot of retailers that are going to go broke between now and the next three months”

Competition works differently in digital markets (cont)

Consumer expectations are different in digital markets

“Why isn’t it free?” – the Google effect

Consumer Expectations in Digital Markets

“Even if it is free, it had better be good”

Consumer Expectations in Digital Markets (cont)

Online learning:

Traps to avoid

“Why can’t I just use my lectures”

Surely, I can just load a PDF of the course materials into Blackboard, film

a few lectures and post them there, and create a discussion board

That sounds kind of cool. What would I need to do?

Students really love your subject. You should teach it online

Well, you’d need to completely redesign and reconstruct the whole course, with no additional funds or

resources, and without any real recognition from your university for

having done so

Well, you’re not really selling it to me ... that sounds like a lot of

work. What’s in it for me?

Reputation. Challenge. More students able to study your

subject. You know ... education

[through gritted teeth]Congratulations ... you’re in step with the current world of online

education

Traps to avoid in online learning

“I need to keep costs down, so I’ll do it on the cheap”

… whereas high production values engage learners

“Students only care about course content”

Course content

Opportunities for discourse

Student community

Platform

Teacher accessibility

Value for money

Traps to avoid in online learning (cont)

OUA’s characteristics of good online learning

Student-centric

Modularised content

Personalised and adaptive, enquiry-based

learning

Usable platform

High production

values

Engaged, accessible, responsive

faculty

Data-driven

Traps to avoid in online learning (cont)

Government’s reform agenda: impact on online

Online not explicitly contemplated in reform package

Funding for sub-degrees

Fee deregulation

Reduced CGS funding to universities

CGS funding for private providers

NEW SECTOR

Outstanding loan balance tied to bond

rate

Lower income threshold for repayments

Merge FEE_HELP and

HECS_HELP

Remove lifetime

FEE_HELP limit

Establish C’wealthSupport Scheme

Government’s reform agenda (cont)

Government’s attitude towards online is unclear

Government’s reform agenda (cont)

Funding to private providers will enhance competition

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

UWA - Current UWA - Proposed Avondale College -current

Avondale College -potential price

approach

Pure online providers -OUA proposed

Education - Cluster 4

CGS

Student Fee

(52)%(67)%

Government’s reform agenda (cont)

Funding to private providers will enhance competition

Government’s reform agenda (cont)

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

UWA - Current UWA - Proposed Avondale College -current

Avondale College -potential price

approach

Pure online providers -OUA proposed

Education - Cluster 4

CGS

Student Fee

Is this reasonable?

Can this be explained by research?

What added value do students receive for this hike in the debt that they will carry?

Imagine the impact on Federal Budget, level/ repayment of student debt, exports

OUA’s view of the future … disruption will happen

Government’s reform agenda (cont)

From campus To online

For whom? Only for the elite Open and accessible to everyone

Delivery Place and time-based (“be in Lecture Hall 1.08 at 2:00pm Tuesdays”)

Anytime, anywhere, on any device

Teaching approach Sage on the stage (knowledge transfer) Facilitated knowledge exchange

Peer-to-peer learning Tutorials, group assignments and copy each other’s notes

Discussion boards, forums, wikis, social media, peer review/assessment

Level of customisation One size fits all (same material, at same pace, in same sequence, with same resources)

Personalised and adaptive path through material

OUA’s view of the future … disruption will happen

From campus To online

Content Length of lectures determined by physical infrastructure utilisation model (24 x 1 hour lectures)

Duration of content determined by capacity of individual to comprehend concepts/applications (350-400 x 8-10 min modules)

Availability/ Frequency Cohort based, generally 2 semesters per year Multiple semester options, or on-demand

Support (student initiated) Specified hours at lecturer’s office 24/7 learning support

Support (institutioninitiated)

Students who fail offered support Data identifies students at risk and interventions occur in real time

Level of customisation Set core plus limited choice of electives Customise my program across offerings of multiple universities

Government’s reform agenda (cont)

Contact details

Paul WappettChief Executive Officer

Open Universities Australia

Level 1, 473 Bourke StreetMelbourne Vic 3000

P: +61 3 8628 2502E: ceo@open.edu.au

Twitter: @PaulWappett