Do Universities Need to Re-think Their Business Models in a Rapidly Changing World?

Abstract

Universities have a key role to play in modern society but the existing model appears increasingly anachronistic in the context of today’s truly global and connected world, characterised by knowledge-based economies, rapid change and complexity. The weaknesses of the current higher education system have been exposed and discussed at length in both academic literature and in the business press; the general consensus is that a rupture with the past is needed to prepare learners for tomorrow’s world … quo vadis? Without a doubt, it is becoming increasingly difficult for today’s institutions of higher education (HEIs) to manage resources and prepare for the future while coping with the present uncertainty and waves of change in the operating environment. Of all the changes taking place, the most disruptive is, perhaps, the impact of technological developments which have brought instant communication, social media and technology-led learning including blended courses, online learning and Massive Open Online Courses (MOOCs). This chapter reframes the justification for a new approach or business model in higher education. The challenge is to create a model that will deliver sustainable institutional, regional and national competitive advantage in a global industry that is now market oriented and learner focused. The chapter highlights opportunities and threats facing higher education, and will recommend that HEIs rethink their approach as the world around them changes rapidly, and often unpredictably, owing to financial challenges, encroaching globalisation and pervasive digital technology.