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Online Education as a Technology Innovation in Higher Education 17 th IRMA International Conference Steven F. Tello, Ed. D. University of Massachusetts.

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Presentation on theme: "Online Education as a Technology Innovation in Higher Education 17 th IRMA International Conference Steven F. Tello, Ed. D. University of Massachusetts."— Presentation transcript:

1 Online Education as a Technology Innovation in Higher Education 17 th IRMA International Conference Steven F. Tello, Ed. D. University of Massachusetts Lowell

2 Agenda Case Introduction Innovation Theory & Online Education Analysis Summary

3 Online Education Continues to Grow More Students Taking Online Courses Fall 2002: 1,602,970 Fall 2003: 1,971,397 Fall 2004: 2,329,783 18% annual growth (corrected projection) More Institutions offering Online Programs 62% schools offering UG courses offer online courses 30% schools offering BA/BS degrees offer online degrees 44% schools offering Masters degrees offer online degrees (Seaman & Allen, 2005)

4 UMass Lowell 1 of 5 University of Massachusetts Campuses, Doctoral/Research University Launched Online Program in 1996 Situated in Continuing Studies, outside academic mainstream 115 enrollments in 96 to over 7000 in online degrees, 15 online certificates $5.9 million online revenue 2004, 54% of Continuing Studies Revenue

5 Along with Growth Comes Challenges Expanded Geographic Boundaries increase bargaining power of students New For-Profit Entrants invest in proven CRM, increasing yield on student recruits New Technologies & Techniques challenge traditional lecture method

6 Innovation Theory & Online Education Provides a framework for: –Understanding the impact of online education –Examine Technological & Business implications –Allows institutions to think strategically Innovation... is generally understood as the introduction of a new thing or method... Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services. (Luecke & Katz, 2003) Technological Innovations are technologically new products and processes and significant technological improvements in products and processes. (OECD, Oslo Manual, 1995)

7 Innovation Theory: Technology Perspective Networked Communications, Global Internet –Global Classroom, Global Resources, New Global Markets –Enrich On-Campus and Online Classroom Asynchronous Communications Technologies –Threaded Discussions, , Blogs –Support Time Shifting, Support Reflection, New Student Markets New Collaboration Technologies –WebEX, Elluminate, Support Virtual Teams, Group Work –Enrich On-Campus and Online Classroom Emerging Mobile Technologies –Podcasts, eBook, Blogs, RSS, Swarming –Support 3 rd Generation e-learning, Personalized learning, appeals to todays UG, and harried Adults

8 Innovation Life Cycle Time AdoptionAdoption AdoptionAdoption Early Stage Mid Stage End Stage - Growth/Adoption is slow - Adoption accelerates, incremental innovation accelerates -Adoption levels off, may decline -New Innovation introduced -Adoption levels off, may decline -New Innovation introduced (Rogers, 1995; Moore, 1999)

9 Adoption of Online Ed. by Students Early Stage – HTML, BBS, Innovators, Early Adopters Mid Stage – LMS, Centralization, Early/Late Majority End Stage - Online, Blended, Web-Enhanced, Laggards

10 Innovation Theory: Business Perspective Technology Innovation creates uncertainty regarding consequences among adopters while offering opportunity to adopters. (Rogers, 1995) Competitive Threats –Bargaining Power of Customers –Threat of New Entrants, Threat of Substitutes –Rivalry Among Competitors (Porter) Strategic Responses –Differentiation, Innovation –Growth, Alliance

11 Adoption of Online Ed. by Institutions Time # of Institutions Online Early Stage - Innovator Institutions Mid Stage -eLearning Boom -THREATS - Rise of For-Profits Student Choices -RESPONSE - Higher Ed Alliances, Growth Cost Efficiencies -eLearning Boom -THREATS - Rise of For-Profits Student Choices -RESPONSE - Higher Ed Alliances, Growth Cost Efficiencies End Stage -Main Stream Adoption -Market Consolidation -Integrates into Academy -Differentiation

12 Innovation Theory: Business Perspective Disruptive Innovations (Christensen & Raynor, 2003) –May not meet market demands when first introduced but over time establish new standards or industries Appeal to New Markets –Who have not adopted an existing technology, product or service due to price or skill –Product or service requires travel to inconvenient location –Who would purchase a product of lesser quality For-Profit Institutions targeted these very markets, which much of traditional higher ed. ignored

13 Innovation Theory: Business Perspective Sustaining Innovations (Incremental) –Improve product performance or service consistent with customer or market demands –As the threat from for-profit institutions grew, public & private non-profit institutions changed strategy –Expand online offerings, Offer flexible schedules, Deliver relevant professional curriculum –Penn State World Campus, UMassOnline, SUNY Learning Network

14 Differentiated Market PublicPrivate FPPrivate NP Business51.3%80.5%27.3% Liberal Arts/Sciences54.6%55.2%20.2% Comp. Info. Sci.43.0%51.9%21.6% Education30.4%50.8%17.6% Social Sciences40.7%31.6%11.1% Health Professions35.5%32.3%23.4% Psychology34.4%26.5%9.3% (Seaman & Allen, 2005)

15 Summary Dot.Com hype of 1990s warned of demise of the Academy Many for-profit ventures collapsed as venture capital disappeared Market consolidation left several successful for-profit players (U.Phoenix, Cappella) Public Higher Education embraced online education as a Sustaining Technology

16 Thank you


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