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Extension Education Anytime and Anywhere

Extension Education Anytime and Anywhere. The Business Case for Sustainable Extension e-learning. Stages of Implementation. Thinkin’ about it Pilot project(s) Special Enterprise Full Integration. Conclusions: Consider e-learning when:. Evidence of regional or national demand

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Extension Education Anytime and Anywhere

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  1. Extension Education Anytime and Anywhere The Business Case for Sustainable Extension e-learning

  2. Stages of Implementation • Thinkin’ about it • Pilot project(s) • Special Enterprise • Full Integration

  3. Conclusions: Consider e-learning when: • Evidence of regional or national demand • Full certificate program • Competitive advantage • Enterprise approach • Field tested program

  4. Online Courses Parents Forever TM

  5. Study Questions • What is the business of e-learning? • What does it take to be successful? • Should Extension be in the e-learning “business”? • Why now?

  6. “Education over the Internet is going to be so big that it is going to make e-mail usage look like a rounding error.” John Chambers, CEO Cisco Systems

  7. The Second Bottom Line “In a business, goods and services have instrumental or secondary value; the primary value is making money. In a nonprofit, the service is the primary value; making money is a means to that end.” O’Neill and Fletcher (1998)

  8. Geographic institution Just in case Isolated Brand name universities & celebrity professors Just in time Virtual Learning communities Old Economy / New Economy Source: Merrill Lynch 1999

  9. Four year degree Distance education Correspondence & video One size fits all Forty-year degree Distributed learning High-tech multimedia Tailored programs Old Economy / New Economy Source: Merrill Lynch 1999

  10. “The power of the Internet to transform the educational experience is awe-inspiring, but it is also fraught with risk.” Report of the Web-based Education Commission to the President and the Congress of the United States. 2000.

  11. What is the business of e-learning? • Employee training • “Value-added” e-learning • Customized education / training

  12. Pricing Price • 1-on-1 mentoring • Online degree programs • Instructor-led training $35-$50 per Course hour $75-$100 per Course hour • Tutor-Supported • E-Learning Interactivity/Intensity • Web Delivered • CD-ROM • Paper-based $5 - $15 per Course hour

  13. Outsourced Cost Scale $65,000 / Course hour $10,000 / Course hour

  14. What does it take to be successful? • Double-bottom line • Total cost analysis • Measures of financial performance

  15. Cost Analysis

  16. Cost Drivers • Existing condition of content • Required level of instructional design • Media richness • Types of media • Number of hours developed • Size of audience • Technology features • Registration, scoring, tracking • Collaboration • Mentors • Assessments

  17. Fixed Costs • Intellectual property development • Instructional design • Production / programming • Infrastructure (equipment, facilities) establishment

  18. Course-Variable or Stepped Costs • Instructor costs • Site rental costs • Some telecommunication costs

  19. Learner-Variable Costs • Materials duplication • Mailing costs • Some telecommunication and software license costs • Learner travel & salary

  20. Standard Measures of Financial Performance • Breakeven point • Return on investment • Critical minimum of aggregation

  21. Total Cost Comparison Breakeven Incremental Fixed Cost (online)

  22. Business Strategies • Superstore • Specialty Store • Boutique / “Mom & Pop • Cooperative • Corporate Alliances • Consultants

  23. Conclusions: Consider e-learning when: • Evidence of regional or national demand • Full certificate program • Competitive advantage • Enterprise approach • Field tested program

  24. References: Carr, S. 2001. Is Anyone Making Money on Distance Education? The Chronicle of Higher Education. Feb. 16,2001. Daniel, John S. 1996. Mega Universities and Knowledge Media: Technology Strategies for Higher Education. Kogan Page Limited. Effectiveness of Learning Technologies: The Costs and Effectiveness of Technology-Based Approaches to Teaching and Learning. 1998. Office of Learning Technologies. Ontario, Canada. http://olt-bta.hrdc-drhc.gc.ca/publicat/OPASexece.html Extension: On the Brink of Extinction or Distinction. King, David A. & Boehlje, Michael D. Journal of Extension. Vol. 38 No.5 Oct. 2000 Guidelines for the Evaluation of Electronically Offered Degree and Certificate Programs. Draft guidelines developed by eight regional higher education accrediting commissions. September 2000.

  25. References: Institutional Restructuring: Is Distance Education Like Retailing?! Moore, Michael. American Journal of Distance Education. Vol. 13. No.1. 1999. O'Neill, Michael and Kathleen Fletcher. Nonprofit Management Education: U.S. and World Perspectives, Praeger, Westport, Conn 1998 The Power of the Internet for Learning: Moving from Promise to Practice. 2000. Report of the Web-based Education Commission to the President and the Congress of the United States. Whalen, T. and Wright, D. 1999. Methodology for Cost-Benefit Analysis of Web-Based Tele-Learning: Case Study of the Bell Online Institute. The American Journal of Distance Education. Vol. 13, No.1.

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