This page contains a Flash digital edition of a book.
40 | SPECIAL REPORT: MOOCs |


✥What are your main observations from working in the online education space? I have three key observations. Firstly, I believe the online channel represents a huge opportunity for universities – with MOOCs in particular, the sheer numbers involved are staggering. Secondly, the market is still very immature, with new and innovative off erings popping up every day. Thirdly, universities have tended to be quite opportunistic so far in their approach to online, meaning they don’t always have a joined up and coherent online strategy.


✥Given these observations, what are the implications for universities from a monetisation point of view? The fact that the market is so immature presents a real opportunity for universities to be innovative in the way they monetise MOOCs and online education more generally. I’ve seen a lot of innovation on the product front, but sometimes universities can be a lit le too cautious about the commercial side of things. It’s also important that universities transition from being opportunistic to being more strategic. They need to consider their online portfolio holistically in order to maximise outcomes and minimise risks.


✥So monetisation is a key area for improvement. Do you have any insights on how universities could bet er monetise? Most early MOOCs have adopted a 'freemium' approach whereby basic access is provided free of charge but more advanced features such as certifi cates must be paid for. In theory this is a great model for the education sector as it allows you to hit multiple objectives at once. The free entry point should help maximise student numbers, with no barriers to up-take, whilst the availability of paid-for extras should generate the income required to cover development costs. In my experience, striking the right balance between student numbers and income is a constant challenge in the sector, and freemium is a great win-win solution to this.


✥But can’t universities just charge for MOOCs? The eternal question! In my experience, charging for MOOCs is a bit of a taboo subject amongst universities. I think there is a lingering concern that charging for MOOCs will drastically reduce volumes, but I would challenge that. Firstly, it’s becoming increasingly clear that high volumes do not equate


Monetising MOOCs


David Smith, Director Simon-Kucher & Partners, explains how universities can make money from online education


to high completion rates, hence chasing volume at all costs is more of a vanity point. Secondly, universities should look to providers such as Udemy for insights on how paid-for MOOCs could work out.


✥So is there anything we can learn from Udemy? Yes, defi nitely, we did some simple analysis of Udemy’s student numbers and the fi ndings were fascinating. Firstly, it sounds simple but the experience of Udemy shows once and for all that it is possible to charge for MOOCs. Udemy do it, they still have substantial student numbers, and they generate signifi cant fee income doing so. But the best thing about Udemy is that they take a diff erentiated approach. Some courses are free, some are cheap, and some are expensive. Too often universities think in binary terms – paid vs. free – but why not mix up the two? This allows Udemy to monetise MOOCs where there is willingness to pay while the free courses stimulate demand. Universities should ask themselves: What is the opportunity cost of not charging for MOOCs?


✥Very interesting. But are there other business models worth considering? Yes, of course. It’s important to remember that monetisation does not necessarily mean MOOC users need to pay for


“Universities should ask themselves: What is the opportunity cost of not charging for MOOCs?”


anything! There are a whole host of indirect ways of generating income from MOOCs, for example, driving sales of other courses, enhancing the value of other courses, boosting donations. You could even look to third parties, for example, other universities paying to use licensed content, advertisers paying for advertising space and employers paying to access user data. There’s a whole spectrum of indirect monetisation approaches out there.


✥Sounds good… so all universities should now go and launch MOOCs? Good question, and the answer is 'it depends'. I mentioned earlier that universities have tended to be quite opportunistic with MOOCs so far. To maximise outcomes, all elements of a university’s portfolio (on-campus education, paid-for online education and free online education such as MOOCs) should be used collectively. Each element should have a clear role in the portfolio with a business case underpinning it and the elements should complement one another and not confl ict or cannibalise. Any new elements should be introduced strategically, fi lling in gaps in the portfolio and performing specifi c roles. At best, a scat ergun approach to launching MOOCs will lead to unsustainable MOOCs. At worst, it will lead to confusion internally and externally, and ultimately to cannibalisation and devaluation of a university’s core off ering. ET


David Smith


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64
Produced with Yudu - www.yudu.com