Business Models for Online Learning: An Exploratory Survey

Abstract

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.

Why Do Higher-Education Institutions Pursue Online Education?

“…In the previous findings [2,3], standard organizational data did not fully explain the differences among contexts. Carnegie Classification did not entirely explain the different institutional missions and motivations for online learning.…”

“…The rapid growth of online learning has created a complex organizational landscape in higher education [1]. A review of the literature by the authors [2] uncovered a lack of research into this new organizational landscape for online learning. There are case studies, suggested taxonomies, and surveys of some business practices.…”

“…The authors' research during the past three years has provided initial insight into the context question. Research has included exploratory interviews [3], case studies [4], feedback from seminars and workshops [5,6,7,8], literature review and initial survey work [2].…”

“…Initial exploratory survey work with 110 institutions by Vignare, Geith and Schiffman [2] concluded that how an online learning unit is funded and how close it is to the academic core appears to have impacts on the level of control or influence it has over certain business-related and quality functions of online learning. This conclusion reinforced the relationship between business issues and organizational context.…”

Access to Education With Online Learning and Open Educational Resources: Can They Close the Gap?

“…Many institutions offering distance learning, and now online learning, pay departments with revenue, or at least a portion of it, versus receiving a general fund budget for online enrollments. In online learning, there appear to be a wide variety of funding models, overhead funding from the institution's general budget, independent or not subsidized and in many cases a mixture of those two models [15].…”