Distance Learning in the Education Economy Griff Richards, PhD Simon Fraser University Canada Distance Learning in the information society: pedagogy, technology and organization. 11 November 2010

Premise Education is subject to the same market pressures as any other commodity Distance Learning allows the education sector to increase its market size (area and students) Distance Learning is less costly than traditional on-site education The traditional education providers are threatened by new education providers who are more efficient and provide better service models.

Supply and demand When demand is high and supply is low, then prices go up. The higher prices attract new providers. Supply increases to meet demand. When supply is high and demand is low then prices go down. Providers leave the market. Distance learning is subject to supply and demand pressures.

Market differentiation There will always be part of the market that prefers a different product. USA tuition for MBA programs range from $ $ – Accreditation, reputation, student experience – Ability to continue working while studying Traditional schools sell reputation. Online schools sell convenience and quality.

DEMAND for education is increasing Hicks, J. & Allen, G. (1999). POST WAR BABY BOOM Knowledge Economy

SUPPLY of education is Increasing 1968 The Open University started in the UK – Open = no barriers to entry – Distance = print + TV + tutors The OU was a political response to a demand for more accessibility to higher education, yet a way to lower costs for mass delivery Few buildings = more money for course development “Mega-Universities” with >100,000 students are now offering DL in many countries including China, Turkey, Pakistan, India, Iran… (Daniel, 2005)

COSTS are decreasing via DL Provincial Government operating grants per student in 2009 to 3 different universities: A - $19,000 B - $12,000 C - $ 6,000 Guess which one is the distance learning university…

U.S. SUPPLY of education is Increasing In 2001, 72 percent of colleges and universities offered distance education courses; in 1999, only 48 percent of institutions offered such courses... (Morrison, 2003) DL is moving from print-based individual learning to “on-line” groups that encourage social interaction and are faster to create.

QUALITY in Distance Learning Top three spot for OU in 2010 student survey “The Open University is once again in the top three places for higher education institutions (HEIs) in the UK for student satisfaction, maintaining its position at the forefront of the National Student Survey ratings since they began in For 2010, more than 30,000 OU students were surveyed – the sample size more than trebling since last year’s survey - with 93% saying they were satisfied overall with the quality of their course…” ( Quality = meeting the needs of the learners!

Distance Learning can be Affordable (low cost, work while learning) Effective (accredited degrees) A quality experience (student satisfaction) However, as more and more education providers launch online courses to compete with DL universities, the quality can vary.

Typical Quality Issues Face to Face (F2F) being admitted shared experience making connections passing exams Quality of faculty & research facilities Distance Learning open access quality experience making progress passing exams Quality of student support systems

DL expands on the internet Formal = credentialsInformal = no credentials LocalSkills or knowledge leading to local certification e.g. Carpenter Specific skills or knowledge – for local needs e.g. construction codes GlobalBroader, transferable skills and knowledge e.g. Master of Business Administration (MBA) Transferable skills or knowledge – can do anywhere e.g. computer programming at P2PU.org Communities of learning can by- pass the credentialing process. Open Education makes content available to those who need it, not just those who take the degree. Internet access enables choice of foreign degree programs.

Open Education Resources “Open” university meant “no pre-requisites” Open Source –> “Open” means “free use” Open Education Resources means “free use” The OER community promotes sharing of resources, especially to developing countries. This may decrease the cost of DL.

Predictions Distance Learning will be more engaging. Learners will increase their demands for flexible access and quality support. Traditional schools will increase supply of DL courses to compete with DL providers. More educated people will have distance degrees than traditional degrees. The world will continue to turn.

Distance Learning in the Education Economy Griff Richards Distance Learning in the information society: pedagogy, technology and organization. 11 November 2010 Questions? Whistler BC Canada

References Daniel, J., Kanwar, A. & Uvalić-Trumbić, S. (2005). Mega University = Mega Quality? Speech to 2 nd World summit of Mega-Universities. Retrieved 10 Nov 2010 from Hicks, J. & Allen, G. (1999). A Century of Change: Trends in UK statistics since Research Paper 99/111. House of Commons Library. Retrieved 10 Nov 2010 from Morrison, J. (2003). U.S. Higher Education in Transition. On the Horizon, 11(1), pp Retrieved 10 Nov 2010 from Peer to Peer University (P2PU.org) is a new volunteer organization to promote professional learning over the internet.