Identifying Successful Business Strategies for Distance Learning

1. Identifying Successful Business Strategies for Distance Learning Steve Schiffman Babson College Karen Vignare MSU Global, Michigan State College

2. National Exploratory Survey • Survey questions were researched and beta tested with Sloan-c board members • 17 Likert type questions • 3 Open-ended questions • Publicized in Sloan listserv, NUTN listserv, and UCEA listserv • Convenience sample • 128 responses; ~110 individual institutions

3. Respondents

4. Goals of Online Learning • Rank Order (Most Important) • Extension, surplus, brand value, diversity, on-campus retention & speed to graduation • Rank Order (Not Important) • Speed to graduation, retention, diversity, surplus, brand value & extension • Rank Order (Most & Important) • Brand, extension, surplus, retention, diversity & speed to graduation

5. Development Models • Predominate Models • Faculty/staff (for non-credit) • Faculty/staff where others might deliver • Teams of faculty/staff • Very little with teams developing for others to deliver

6. Financial Models Highest Responses • Over-head funded unit • Self-funded unit • Independent self-funded unit • Combination

10. Open Text--Challenges • Across respondents • Faculty • Quality • Return on Investment • Business Plan • Institutional issues—support, integration & organizational structure

11. Sloan-C “Successful Business Strategies) online workshop Sept-Oct, 2005 • Enrolled 40+ participants (online program directors etc) • Synchronous sessions of 15-20 participants • Included materials: survey data, (new) business cases, several relevant papers (Schiffman, Miller/Schiffman) • Tried to “collect” data from participants on their: • Starting points/current goals • Value chains/Leverage points – for their online business programs

12. (New) Business Cases • Business Decision Making: • U. Michigan (college/self-funded) • U. Illinois Springfield (overhead/direct funded) • U. Mass Lowell (independent/self-funded) • Student Services: • Duquesne U. (college/self-funded) • U. Central Florida (overhead/direct funded) • Colorado State U. (independent/self-funded) • Curriculum Issues: • Dallas County CC (college/self-funded) • U. Georgia (overhead/direct funded) • Georgia Inst. Tech. (independent/self-funded)

13. Starting points and goals • Most institutions began online learning programs with 1 of 2 goals (Miller, Schiffman unpublished paper) • To extend access to programs • To improve quality of existing programs • e.g., retention, throughput • What was your starting point? • What were (are) your initial goals?

14. Matching business models to strategy • What business model was chosen to launch your program? • e.g. within continuing education, provost’s office, academic department, etc. • How well matched was (is) the model to attaining your goals? • A business model is a way of capturing value of a product/service and turning it into a revenue stream that can sustain/grow the business

15. Next Steps • Publish research in JALN special editions • Publish the business cases • Expand and deepen survey research • Sharpen business models and test hypotheses