The current situation facing Australia’s universities is a projected loss of $16 – $19 billion by 2023.
Seven universities are reportedly most at risk of having their international student revenue losses exceed available cash and investment reserves. These are: Monash University, RMIT, University of Technology Sydney, La Trobe, Central Queensland and Southern Cross University, and The University of Canberra.
ABS data show for every $1 lost in university tuition fees, there is another $1.15 lost in the broader economy due to international student spending.
Those are some sobering figures.
To stay relevant, universities need to reinvest some of the current cost savings and pivot from traditional capex such as sandstone buildings and large lecture theatres (artifacts of a bygone era) into digital infrastructure and blended delivery models that address the needs of a modern workforce.
Digital solutions could improve productivity and strategic outcomes and position institutions for this new reality.
Industry has been saying this for years – it’s taken a pandemic to disrupt the old paradigm – it seems necessity really is the mother of invention.
The challenge now for many universities (which have relied on those sandstone buildings for their brand positioning) is how they’ll differentiate themselves in a crowded online marketplace? If students (and staff) are working online, do they still need to limit themselves to a university near home or can they choose one interstate or overseas just as easily?
In response to the COVID-19 pandemic, as universities cut budgets, shut or consolidate campuses, terminate staff and reduce the number of courses and subjects on offer, are they further eroding their talent pool and unique selling proposition?
Will universities become McUnis and courses commodities with no great difference between each other’s degrees? Is that already the case?
Do we still need three year courses? Thirteen week semesters? Twenty-four subjects in every undergraduate course? Will a ‘one size fits all’ approach be a competitive model in the new paradigm?
Many institutions had already been exploring micro credentials but in a somewhat lacklustre way often with reluctant buy-in from academics many of whom don’t like the idea of a McNugget approach to education. After all, they’ve spent decades tweaking and perfecting their PowerPoints only to be told now the playing field has shifted.
For years, universities have also struggled to make massive open online courses (MOOCS) appealing to students – historically MOOCS have had poor engagement and high attrition rates compared to face to face learning (many have been little more than depositories for content).
Many academics have struggled to understand that teaching online is not the same as face to face. Students learn differently. They may be accessing content on mobile devices (not ideal for PowerPoints and large PDFs nor writing long responses and essays). They want the flexibility of choosing when and where they study and prefer content chunked into smaller packages (10 min videos not 2 hour lectures). However, they still want ENGAGEMENT and a sense of COMMUNITY and BELONGING. A discussion board monitored once a week is not enough. Nor are pre-recorded videos on their own. They also want live video chats and smaller class sizes where the facilitator actually learns your name and you can ask questions and discuss ideas and case studies with other students. They want PASTORAL CARE and SUPPORT.
There is also a huge hunger for INDUSTRY PARTNERSHIPS and AUTHENTIC LEARNING including practical and real-world / client-based assessments.
We’ve already seen in recent weeks examples of students from topped ranked overseas universities demand their tuition fees be refunded because the institutions failed to meet their expectations online. Many students have argued ‘why should they pay the same tuition fee for an off-campus learning experience?’
An army of learning designers are being deployed across the sector to assist academics in transferring and reimagining their subjects for online and distant delivery. Universities are also partnering with technology, marketing and user experience companies to help them with this process.
History has demonstrated that every crisis also represents opportunity. We’ll have to wait and see which institutions take on the challenge and thrive.
