Identifying Successful Business Strategies for Distance Learning

Identifying Successful Business Strategies for Distance LearningSteve SchiffmanBabson CollegeKaren VignareMSU Global, Michigan State CollegeNational 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 institutionsRespondentsCollege ClassificationSample PercentageDoctoral31Master’s24Baccalaureate22Associates17Specialty2Goals 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 graduationDevelopment 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 deliverFinancial ModelsHighest ResponsesOver-head funded unitSelf-funded unitIndependent self-funded unitCombinationBusiness Decision Making0%10%20%30%40%50%60%70%80%90%Business PlanningIntegrated MarketingFunctionsPrice SettingAbility to enterpartnershipsAbility to removeproducts from themarketInd Self FundedCollege Unit Self FundedCollege overheadStudent Services0%10%20%30%40%50%60%70%80%90%Student servicesTechnical supportQuality control for the learning experienceRetention for non-credit students/customers/...Retention for students enrolled in credit bea...Ind Self FundedCollege Unit Self FundedCollege OverheadCurriculum Issues0%10%20%30%40%50%60%70%80%Ability to hirefaculty instructorsAbility to createnew customizedcurriculumAbility to createnew non-creditcurriculumAbility to createnew creditcurriculumInd Self fundedCollege Unit Self FundedCollege OverheadOpen Text--ChallengesAcross respondentsFacultyQualityReturn on InvestmentBusiness PlanInstitutional issues—support, integration & organizational structureSloan-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(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)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?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 businessNext StepsPublish research in JALN special editionsPublish the business casesExpand and deepen survey researchSharpen business models and test hypotheses