Global trends and future of higher education 27 November 2013 Business and University Kyiv, Ukraine

Page 2 Global trends in higher education Higher education landscape worldwide will undergo massive changes in the next few years Higher education students will increase by 300% from 100 million in 2000 to 400 million in 2030 with high growth in emerging markets like Asia and Latin America Rapid growth in student number Classroom teaching will not be able to leverage potential benefits of digital technologies. It will not be able to compete with the reach of the digital platform Challenging times ahead! Digital learning methods Existing ‘dominant university model’ - a broad-based teaching and research institutional setup, will turn unviable Broad range of disciplines and a broad mix of student segment will not be able to deliver in future when developing expertise will be the requirement Change in broad-based teaching approach

Page 3 Global trends in higher education Future of education Education landscape of the future characterized by blurring of boundaries ► Greater opportunities for international exchange of students ► Greater synergy between industry and education ► Access to automatic proof of accreditation for employers during hiring process ► Multiple channels to gain knowledge and build skill-sets ► Delivery of quality education ► Access of educational platforms to less advantaged ► Prevent over shadowing over local languages by English ► Balance between virtual and human exchanges ► Global validation of credentials Opportunities Challenges Future of education 1 Star academics Presenters who would be recorded for broadcasting of lectures 2 Research Academics Academicians who focus solely on research activities 3 Curriculum designers Academics responsible for translating the syllabi into formats suitable for the online learning environment Changing the role of academicians Levels of education Higher education and industry GeographiesEducation spacesTeacher- student Move to a culture of life- long learning Rise in contribution of industry in educational development Increase in globally delivered education and accreditation Limited face-to-face interaction between students and teachers as online learning becomes the order of the day Blurring effect

Page 4 Global trends in higher education Four key trends, especially ‘use of digital technologies’ will lead to this transformation Democratization of knowledge Global mobility Integration with industry Use of digital technologies

Page 5 Global trends in higher education Asian and African countries will see massive growth in e-learning services RegionsGrowth rate of e- learning market ( E) Global23% Asia17.3% Eastern Europe 16.9% Africa15.2% US15% Middle East8.2% ► US is the global leader in online education, with 6.7m students (32% of those in higher education), taking courses online ► Africa is the world’s fastest growing e-learning market, with a growth rate of around 38.6% for cloud-based e- learning products ► Turkey aims to equip more than 15 million students with tablets by 2016, with a US$1.4 billion investment Vietnam, Malaysia, Romania, Azerbaijan, Thailand, Kenya, Slovakia, the Philippines, India and China represent the top 10 fastest growing markets, with growth rates above 30% The emergence of MOOCs has increased the penetration of e-learning services to a great extent

Page 6 Global trends in higher education MOOCs promise to revolutionise the delivery and reach of quality education across the globe Overview of prominent online course providers MOOC platform Enrolled students Number of courses Number of institutions Coursera3,670, EdX900, Udacity400, ► It has been estimated that four new 30,000-student universities need to be constructed per week, to accommodate children who will reach enrolment age by 2025 ► MOOCs have the potential to help address this issue by significantly reducing the workload on educational institutes * Based on data for the three players

Page 7 Global trends in higher education Other new powerful technologies will emerge These technologies will disrupt the traditional trillion-dollar education model by changing the basic fundamentals Streamline admission and enrollment process Enable access to costly subscription of journals Learn and interact with 3D models Students to have their individual digitised, lifelong learning profile Cloud Computing 3D printing Adaptive learning

Page 8 Global trends in higher education Democratization of knowledge will start an ‘education revolution’ Access to education is no longer limited to students of developed economies Implications ► An ‘education revolution’ to open up new markets and opportunities for global partnerships ► New gates for competition especially from the best emerging market universities

Page 9 Global trends in higher education Students, teachers and universities are increasingly becoming globally mobile Increasing mobility of students ► Number of students going abroad for education has grown more than three times in last three decades Changing preferences for destination of study ► Traditional source countries like China, Malaysia and South Korea will become destination countries Rising spread of academic brands ► There are 200 International branch campuses (IBC) mostly of Ivy league universities with 38 more to set up in next two years Number of students (million) enrolled outside their country of citizenship

Page 10 Global trends in higher education Changing industry – university relationship: industry is no more only a customer for universities In order to survive, universities need to build significantly deeper relationships with industry in form of Industry based learning and internships Old model New model Industry as a… customer partner competitor

Page 11 Global trends in higher education Driven by the key trends, university business models will become more diverse Universities are expected to evolve in three broad lines Streamlined Status Quo Niche Dominators Transformers

Page 12 Global trends in higher education Streamlined Status Quo: Some universities will maintain status quo while streamlining operations Universities will focus on increasing profitability and efficiency while remaining broad-based and provide multiple disciplinary courses Discontinue unprofitable disciplines Save resources required to maintain international competitiveness in key disciplines Open up new markets and more efficiently serve existing markets Realise lower operating costs and drive efficiencies through shared services arrangements with like- minded institutions Invest in digital sales and delivery channels Outsource back-office functions

Page 13 Global trends in higher education Niche Dominators: Some universities will fundamentally change the services and markets they operate in ► Reduce range of disciplines and focus on particular customers such as distance learning students ► Build deep alliances with industry, including partnerships to support R&D ► Streamline back office, including using outsourcing/shared services models to drive efficiency Focus on specific customer segment Industry alliance Streamline back office The challenge of staying competitive in domestic and international markets will drive the shift towards this model

Page 14 Global trends in higher education Transformers :Some universities will carve new markets that merge part of the higher education sector with other sectors This disruptive model will be led by private providers, new entrants and savvy public universities Content wholesalers, financiers, employers and parents will be new customers New Customers New areas of specialization Content aggregation, mass distribution, certification will be new areas of specialisation Combine traditional education services with services in related industries such as media and entertainment and financial services Outsource student services while retaining ownership of their customer relationships Combine education with industry services Outsource student services

Page 15 Global trends in higher education Conclusion ► With “massification” of education we need to identify new operating models for education institutions which will allow them to provide high quality education and appropriate skills at affordable rates.