Despite the rapid growth in the adoption of online learning, there is a dearth of detailed information on effective business models, business strategies and effective practices on which to build sustainable online education programs. A survey instrument was developed as an initial attempt to define business models and business strategies for online learning. The survey results yielded some interesting data about which online learning financial models seem to have more or less “control” of which business functions. The sample was a convenience one and as such will require further filtering of data. It is also clear that more needs to be done to define business strategies and models and thus provide guidance to this growing segment of higher education.
The ways institutions have structured their initial innovation with online learning vary greatly. Initial business model decisions present different challenges in terms of how institutions will integrate online learning. This paper looks at several common business models and the opportunities and challenges that each presents to institutions that want to fully integrate online learning.
Using a unique item included for the first time in the Sloan Consortium’s 2006 national survey of online learning, the authors analyze the reasons why higher-education institutions engage in online learning. Nine reasons are explored from contributing to extension efforts to returning a surplus. Eight of the nine reasons are found to vary in importance depending on the type of institution. Significant differences were found for associate-level institutions, for-profit institutions and large-enrollment institutions. The authors examine the findings for access and quality themes.
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