Global trends and future of higher education

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

2. Higher education landscape worldwide will undergo massive changes in the next few years Existing ‘dominant university model’ - a broad-based teaching and research institutional setup, will turn unviable Rapid growth in student number 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 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 Digital learning methods Challenging times ahead! 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

3. Future of education Education landscape of the future characterized by blurring of boundaries 2010 2050 Levels of education Higher education and industry Geographies Education spaces Teacher- 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 Limited face-to-face interaction between students and teachers as online learning becomes the order of the day Blurring effect Changing the role of academicians 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 Opportunities • 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 Challenges Future of education

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

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

6. MOOCs promise to revolutionise the delivery and reach of quality education across the globe • 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

7. Other new powerful technologies will emerge These technologies will disrupt the traditional trillion-dollar education model by changing the basic fundamentals Cloud Computing 3D printing Adaptive learning

8. 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

9. Students, teachers and universities are increasingly becoming globally mobile 4.3 • 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 2011 2.1 2000 1.3 1990 1.1 1980 Number of students (million) enrolled outside their country of citizenship

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

11. Driven by the key trends, university business models will become more diverse Universities are expected to evolve in three broad lines 1. Streamlined Status Quo Niche Dominators 2. Transformers 3.

12. 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 Invest in digital sales and delivery channels Open up new markets and more efficiently serve existing markets Outsource back-office functions Realise lower operating costs and drive efficiencies through shared services arrangements with like-minded institutions

13. Niche Dominators: Some universities will fundamentally change the services and markets they operate in The challenge of staying competitive in domestic and international markets will drive the shift towards this model • 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

14. 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 New Customers Content wholesalers, financiers, employers and parents will be new customers Content aggregation, mass distribution, certification will be new areas of specialisation New areas of specialization Combine education with industry services 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 Outsource student services

15. 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.