Maximum profit and ROI in distance ed: planning to refine or launch your online learning programs? Learn from the winners - Online

University Business, May, 2003 by Sean Robert Gallagher

DECISIONS ABOUT INFRASTRUCTURE

Once the focus of an online distance learning program is determined, the strategic task leading up to actually implementing the program emerges as one of the most critical: determining how to create an infrastructure--that is, the required technology platform and student and faculty services--to support a successful program.

Many institutions have decided to outsource various components of their technology architecture--most commonly and visibly by licensing course management systems from firms such as Blackboard and WebCT. Others have outsourced the entire technology infrastructure (including hosting on a vendor's databases and servers elements of faculty support and student help desks, etc.) to firms such as eCollege (www.ecollege.com), EMBANet (www.embanet.com), or Collegis (www.collegis.com). Large for-profits and smaller, resource-constrained IHEs such as community colleges have been particularly inclined to outsource these functions, while many research/doctoral universities have decided to address technology in-house.

Yet, technology selection is just the tip of the iceberg, as the online learning infrastructure must encompass all of the institution's student and faculty services. Often, this requires an entire re-envisioning or restructuring of how various institutional functions will operate and how services will be delivered in the online environment.

READY, SET, GO

A successful strategy is only actualized through successful implementation, which presents a whole new set of considerations, choices, and challenges. Thankfully, there are plenty of examples in higher education of institutions that are prospering--many of which are even dramatically "reinventing" themselves along the way--through online learning. This suggests that the road ahead will be less revolutionary and more evolutionary, as the pioneers become veterans of the game and online distance learning truly becomes mainstream.

Fully Online Distance Learning Market Growth

           Tuition Revenues (millions)

1997-98                $260
1998-99                $505
1999-00                $925
2000-01              $1,576
2001-02              $2,443
2002-03E             $3,518
2003-04E             $4,573
2004-05E             $5,396

Source: Eduventures, NCES

Note: Table made from bar graph.

Sean Robert Gallagher is on analyst with Eduventures, Inc. (www.eduventures.com).