Conference with Prof. G. Rumble
1. Introducing Greville Rumble
Dear all,
I am happy welcoming Greville and opening his conference debate on Vulnerability of Distance Teaching Universities. Let me introduce Greville with a few words.
Those who have read Greville's biography saw that he is a truly international figure: "born in Lima and schooled in Ecuador, Switzerland and England" the biographical note starts. - His biography also proves him not to be a narrow specialist but someone who combines with his international and multicultural experiences the capacity of taking the broader historical perspective: in 1968 he graduated at the University of Kent at Canterbury in the United Kingdom, with a Bachelor's degree in History. In 1970 he was awarded a Master's degree from the same University following a one year research studentship during which he studied de facto theories of government in seventeenth century England.
graphic
But the personality we want to profit from most during this coming week is the professional in distance education. Since 1970 he worked for the then newly founded British Open University and gained hands-on experience in managing important departments of the open university: " Greville now has 30 years experience in distance education, largely in an administrative capacity. He was twice, first in the mid-1970s, and then in the late-1980s, head of the Open University's corporate planning office. During the 1990s he was for eight years director of a regional office providing services to students. In 1999 he was appointed to a personal chair as Professor of Distance Education Management at the Open University. In 1998 he became Editor of the journal Open Learning.
But besides being an administrator he remained an academic and researcher in the field. I select only few of his long lists of contributions which are regarded as seminal works within the DE research community: The most recent book The costs and economics of open and distance education (1997) is a core text for this course. A small succinct management guide was published by the IIEP: The management of distance education (Paris, UNESCO: International Institute for Educational Planning, 1992), together with João Oliveira, Vocational education at a distance (London, Kogan Page, 1992) together with Keith Harry, The distance teaching universities (London, Croom Helm, 1982); and together with Tony Kaye, Distance teaching for higher and adult education (London, Croom Helm, 1981).
The recent years must have been very busy for Greville since he worked on several books in parallel:
(i) together with Loise Moran Greville worked on a book on vocational education and training (VET):
Moran, L., Rumble, G. (Ed.). (2003). Vocational Training through Distance Education: A Policy Perspective (Vol. 5). London, New York: Routledge, COL.
(ii) last but not least, we in Oldenburg (i.e. the Center for distance Education in cooperation with our university publisher) were allowed to re-print some of the key papers (including the more recent ones on e-education) as the volume 7 of our series on distance education:
Rumble, G. (Ed.). (2003). Papers and debates on the costs and economics of distance education and online learning (Vol. 7). Oldenburg: bis.
(iii) the new edition of our textbook:
Rumble, G. (1997). The costs and economics of open and distance learning. London: Kogan Page. (It is will be published under a different name and with strongly revised content and I have the honor to cooperate with Greville to do this.)
But Greville reflects not just the British Open University perspective. His work as a faculty member or consultant in distance education spans a wide range. I quote from the bio: "Greville has extensive international experience as a consultant in the planning, management, costs and economics of distance education. In the late 1970s he worked extensively Universidad Nacional Abierta in Venezuela, and at the Universidad Estatal a Distancia in Costa Rica where, in 1980- 81, he was an advisor in the Planning Vicerectorate, having taken leave of absence from the Open University. In the early 1990s he undertook extended consultancies at the Indira Gandhi National Open University, working on the curriculum transformation of IGNOU, and in the mid- 1990s he was Chief Technical Advisor at the Bangladesh Open University. Overall he has worked on distance education projects in over 30 countries."
It is obvious that we have here an expert visiting the classroom. We all can profit from. I want to do facilitate the discussion with Greville by preparing two further main topics. In main topic 6, 'Asking questions', you have the opportunity to ask whatever questions remain with respect to the sections of Rumble (1997). Main topic 7 'Vulnerability debate', opens the discussion on the vulnerability of distance teaching universities.
I look forward to an interesting conference and welcome Greville as a visiting expert.

Kind regards
Thomas
2. Asking questions
Dear all,
This main topic is the 'reception point' for your queries and questions on the sections of our textbook (Rumble, 1997) you have read so far. I remember a number of issues we have discussed, such as the equivalent term for annualization in American English. You may also come back to some of the issues having emerged in our discussion in the last module such as Alan's amazement about the pride so many UK educationalists take in the OUUK model with its low level of direct student professor communication. I suggest that you restate these questions and come forward with new ones. Note that questions related to Greville (2003) should be posted as responses to the next main topic (the 'vulnerability debate').
Kind regards
Thomas
Re: Asking questions

Professor Rumble:
Welcome to the class. It is a distinct honor and privilege to make your acquaintance. I believe my first exposure to your writings involved a series of articles in which you debated Desmond Keegan (later joined by Garrison) on the definition of distance education.
More recently, I have enjoyed your candid comments about the workings of the UKOU-- certainly, they were more illuminating to me than the sugar-coated "spin" consistently offered by Sir John Daniel. I can only imagine some of the conversations you must have had with him.
In a June 16 conference postingI reflected upon some of the differences between higher education in the US, the UK and the rest of the world. I referred to your characterization of the English higher education system as "elitist" (Rumble, 2004, p.14), and expressed some bemusement that even in the Open University, a strict hierarchy of functions has kept the professoriate who develop the course packages from having any interaction with the masses--being shielded from them by a system of tutors who are limited to marking student assignments and helping them to understand how to better assimilate a body of knowledge that has been set out for them.
I am not convinced that entirely prepackaged learning, designed to be used with minimal changes for 8 years or more, is much different from conventional instructor-centered approaches that represent, at their worst, rote learning. It would seem to treat students as so many peas in a pod, with no accommodation to individual differences among them-- something that I suspect can only be done with meaningful interaction between the student and an instructor who has the authority to depart from the prepared script.
Because understanding the context of distance education around the world is so important to our studies, I'd appreciate it if you could share your perceptions of differences between the American, British, European and other world educational philosophies. The relevance to this class is that our teaching examples thus far have centered upon a UKOU model of distance learning in which huge sums are invested in the development of set course materials, to be used with large numbers of students who enjoy only limited communication with their "tutors."
Alan Stover
Reference:
Rumble, G. (Ed.). (2004). Papers and debates on the economics and costs of distance and online learning. Oldenburg, DE: Bibliotheks- und Informationssytem der Universität Oldenburg.
Re: Asking questions
Dear Alan

Thanks for your kind words. You never missed anything by not being there when I was in the same room as Sir John ? he stopped speaking to me.

Lots of questions and points in your message:

a) Elitist UK system. It was when the UKOU was being planned and set up in the 1960s ? about 4% participation rate in the early 1960s, perhaps 7-8% by 1970. Now of course it is over 40% and has a government target of 50%, so it is far from elitist.

b) In the UKOU it is difficult for professors who have to create the materials for a course over the two years before it is launched, and are still finishing them off as the course goes live, to teach students as well; also the use of materials has a multiplication effect, allowing far more people to enrol on a course than could be tutored by a single professor or even by a team. 'You, Your Computer, and the Net' when first launched had 13,000 students. Even the project based course I am a student on ? 'Art and Devotion: Italian Religious Art from 1300 to 1500', written by one person (most of the course is research-based) has 250 students on it, far more than the course developer could supervise when you think that each of us puts in 3 essays of 2000 words, 1 project outline of 1000 wods, and a 6000 word project to be assessed which also has to have a bibliographic essay that does not count against the word- count.
c) Yes, traditional universities can be poor places of learning ? c.f. on the US system George Ritzer?s analyses in the two?McDonaldisation? books he wrote. There is a big literature on this.
d) world education philosophies: what a BIG topic. I can't cover it but
- everywhere almost now subscribes to the education ? economy ? growth ? beat the competition model. This affects curriculum.
- Not everyone subscribes to constructivist models, or models that want to develop individual learners. Culturally some societies regard teachers as sources of authority, which afects the pedagogy.
- There is a big difference between the UK where HE rejects automated assessment, on the whole, and the US (and Latin America) where it seems accepted. The essay is still the key assessment instrument in the UK
- There is a difference between what Americans regard as distance education ? telelearning first, then e-learning, and what Europeans do ? corresondence education, and now e- learning. The historical divide still has implications, I feel.

Greville
Re: Underlying assumptions in the economic model
Prof. Rumble:

Your comment about the lack of confidence in automated testing outside the Western hemisphere was illuminating, and certainly sheds light on the extensive need for tutors or assignment graders.

A limiting factor for my time as an instructor is marking (grading) written assignments--I cannot afford to require too many of them, especially in an online course, which itself takes a lot more time to conduct if one encourages a high level of student-instructor communication. If my textbook publisher includes a good online assessment facility, then I can spend more time in communication with my students, providing them a more individualized and higher quality experience.

While the underlying principles may be the same, the economic model here will be quite different from the examples you present. In the US, there will be very few instances of course development teams in higher ed institutions creating courses designed for thousands of students. For the most part, little money is spent on discreet course development activities-- typically, the most a faculty member with a 15-credit teaching load will receive is 3 credit hours of "release time" for one semester, about once every three years, in order to develop or update a 3-credit course.

At my own large community college, 90 sections of our basic English reading and writing course are offered (over 2000 students). Each section of a course (including online courses) is taught by a full- or part-time faculty member--only the large introductory courses in universities with graduate departments utilize graduate teaching assistants. Adjunct faculty teach approximately 50% of the courses, and cost the college about one- third of what full- time faculty members receive in compensation.

Because we would not want to reduce "student support" (interaction/communication with the instructor), there are few if any savings to be achieved in variable costs per student by the use of distance learning. The savings, if any, are in the cost and/or feasibility of building new classrooms, labs and parking lots, and the people to take care of them--versus the costs of the technology to serve DE. Not all money is created equal--it may be readily available for new computers and servers, but not for facilities and personnel. Time is also a factor--a new building project will take years before it can serve students, while it may take only 6 months to set up an online program.

There may be a closer comparison to UKOU economic model with the textbook authors and publishers, commercial institutions like U of Phoenix, and government and corporate training programs--all of which have a more standardized product and can spread their costs over many more students.

We also need to keep in mind that the system is a larger whole that includes the instructors and their unpaid time, students and the time and costs they bear, and the publishers/course developers. Because many costs can be swapped out from one area to another, the financial picture in one part of the system may be skewed.
Re: Underlying assumptions in the economic model
Hello Alan
I found your comments very interesting and they confirmed the 'communications technology to bridge the gap' to the student US model (so you get remote classroom models (i.e. TV out, audio back) or asynchronous/synchronous e-learning models inthe US, whereas Europeans invest in the correspondence materials (in spite of all the other media, it is basically correspondence tuition). That gives you the kind of faculty ratios that the UKOU has - the last figures I have are roughly 500 academics with course-writing requirements (i.e. I exclude those on full-time but temporary research contracts), but 7000 'adjuncts' (i.e. tutors in European correspondence industry terminology)hired to teach classes (by the hour) and to grade the continous assessment assignments (paid by the script).

The OU is of course intent on creating an academic community in which academic minds interact over the years to produce high quality materials - in art history for example, there are all the 'course texts' for OU courses which are published by Yale University Press in association with the Open University Press (a relationship that now goes back some 20 years, I think). Around those, the OU provides (also written by the course team) course notes that take the student week-by-week through the course, the readings, the video components, etc. Finally there are on some courses some readers (the Modern Art course has 2, including Charles Harrison, Paul Wood, Art in Theory, 1800- 2000, now in its second edition, something like 1300 pages of selected texts.) That is a lot of time invested in creating materials for a course that will now last 8-10 years, but will have say 1000 students a year on it. That kind of integrated course needs a team that knows each other. [When the course is running and they are not writing they will take research leave, write or compile commercial books not related to the course such as the Art in Theory 1649-1815, and A in T 1815-1900, teach at summer school, monitor the course, etc. and possibly tutor the odd class, but not every year and certainly not in ways that would do a part-timer out of a job.]

However, if you go the National Extension College you find the college producing the texts for the intermediate high school and final high school exams (taken at ages 16 and 18 respectively). Each subject will have a manual of texts covering the curriculum (say 800 pages) plus commercial text books. These materials will be written/compiled by one person, who is paid a lump sum to develop the course, and perhaps a retainer to adjust the course. The course lasts until the government and hence the exam board changes the curriculum. NEC does not have an academic community, rather it has a small core of staff who commission and edit the texts.

On not all money is the same, quite - capital vs. recurrent or operating monies, essentially. (In developing countries, aid money is usually tied to specific ends, which means it is not 'free'.)

Greville
"No thank you": To Greville and Alan (6.1.3)
Greville,
This refers to Alan's question (6.1.2) . I remember you writng somewhere that the UKOU model has a sort of perception problem. That the tragedy (I think you did not use such a solonnel term) might be that even where the model produces better courses this could only be experienced by taking such a course while 'surface perception' is that it is just some correspondence material sent to you and you must write some assignments. Alan expressed strongly his skepticism about this model (in: The techniques of Cost-analysis, thread number 14.2.20). Alan allow me to quote:
"This need for customization is why I can't see why the UKOU feels that its courses, designed by experts for thousands of students with an 8-year or longer expected life, supplemented by tutors who have no authority to deviate from the lesson plan and who are basically there to grade assignments, is such a great thing. That whole approach strikes me as a reflection of the "empty vessel" philosophy of teaching, where the teacher (suject matter expert) is the sole source of knowledge and the students are so many empty vessels to receive this knowledge. No thank you!"
I think you know the OU from both the providers and the student's end and is in a good position to comment (especially on the underlying assumption that correspondence teaching would have to subscribe to an 'empty vessel' philosophy. (Here generally I report on Laurillard throwing in her 'gauntlet' (Laurillard, 1993) by calling peer interaction "one of the great untested assumptions of current educational practice". (p.171)
Kind regards
Thomas
____________________
References:
-- Laurillard, D. (1993). Rethinking university teaching: a framework for the effective use of educational technology. London: Routledge.
Re: "No thank you": To Greville and Alan (6.1.3)
Well Thomas, not just lurking - here is the proof - but participating. Anyway, I do know the OU as provider and as consumer. I think that the texts I am now familar with as an art history student are first rate NOT becuase I find I am able to understand them ON THEIR OWN but because the texts, plus other books, plus a lot of hard work, allow me to interrogate the material I am given plus what I find to answer adequately (from my point of view) the very tough questions that the assignments set. BUT IF I RELIED ONLY ON THE OU TEXTS, I AM NOT SURE I WOULD DO NEARLY AS WELL!

So on my last course (Modern Art) I had 7 assignments (essays of 2000 words) to do and scored straight 95s on each except the last where it was 100 (difficult but he gave it me because as he said, any comments were in the nature of a dialogue between equals). BUT I AM SURE I WOULD NOT HAVE GOT THIS WITHOUT READING OTHER WORKS.

Of course I can afford the time unlike many OU students, and the books too (ditto) ...

Also I am not above for the love it arguing a perverse (but well supported) case ...

STILL, it is possible to have an intellectual dialogue with oneself given good enough assignment questions but I am not sure that many people have GUIDED DIDACTIC CONVERSATION a la Holmberg. So for some it will be spoonfeeding and empty vessel.

Does this mean poor quality student or very busy individual = empty vessel approach. Maybe.

Greville
Re: "No thank you": To Greville and Alan (6.1.3)
Hi Professor Rumble,

I am just getting back into the thick of things with this class...I have been absent for quite some time because Murphy's Law has been following me around relentlessly. So I read your comments on the need for guided didactic conversation with interest.

I have been in the MDE program since Fall 2000 (I take only one class per semester), and for the most part it has been good. It can be hard to keep up at times, particularly when you're "out" because of illness, travel, etc. And of course this seems to happen to me at the most inopportune times. So often, during different times in a semester, I have to be a lurker because I don't have the time or ability to be anything else.

I agree with you that participating in conferences (such as this one) really can help you reach a better understanding of whatever it is that you're studying. However, there are some of us (myself included) who are like sponges, absorbing as much information as they can and "share" it with others only when "squeezed" (in the case of this course, I HAVE to share because class participation is part of the grade). I really do enjoy readings the conferences, and I don't always have something to add--and often when I do, someone else has beaten me to the punch. So I may not write anything, and it may look like I'm not actively learning. But I think that the quality of the papers and projects I have turned in over the last 3.5 years is proof that not only am I learning but I am also able to analyze, synthesize, draw meaningful assumptions and conclusions, etc. And much of this was done without the benefit of personal guided didactic conversation.

So while Holmberg does have an excellent point, in the years since I first read his works, I have come to the conclusion that one's ability to learn in DE also has largely to do with his/her personality and learning style. Yes, two- way communication is important, but for the times that you simply cannot engage in it, I feel that one needs to have the ability to engage in a "conversation" with himself. In other words, I can easily learn on my own by reading the texts and conducting research, etc. but there is value added in being able to communicate with others--including other students--and gain exposure to a whole variety of insights different from your own.

Clearly, this was not an economics question but rather my way of saying, "Hey, look---I'm talking with a world-renowned scholar and researcher!" I appreciate the commentaries you have made so far and am glad to know that you are a true lifelong learner!

Sincerely,
Susan Pollack
Re: "No thank you": To Greville and Alan (6.1.3)
Susan, you wrote:

I HAVE to share because class participation is part of the grade). I really do enjoy readings the conferences, and I don't always have something to add--and often when I do, someone else has beaten me to the punch. So I may not write anything, and it may look like I'm not actively learning.

I agree with you. I am the same way. I believe very strongly in the benefits of these discussions. I often do feel that I learn much more through these discussions than I ever did sitting in a lecture. I, too, am often late to discussions becuase of my heavy work load during the week and I tend to keep my weekends for working on school. Many instructors consider late participation a 'bad thing', for me it is more of a real world situation for a working adult.

I do not have a problem with participation as a part of the grade. Personally, I think 25% is high, but then I am not really sure what that is based on. Quality, quantity, timing, original vs. follow up posts, group work, etc. There are so many factors that can be considered, but I am not certain that all of them are true indicators of the learning the occurred.

my two cents..

Jill
Susan
I personally believe not enough time and effort has been spent in analyzing how different adult learning styles affect the effectiveness of distance learning in general, not just in online classes. I also believe that should be a part of student support and usually isn't or is barely addressed. Anyway, I understand what you are saying and think it should be given consideration in course and program development. Diane
Re: Asking questions
First of all I join others in welcoming you to the class. I have often used your writings in my papers for other OMDE classes.

You stated "There is a big difference between the UK where HE rejects automated assessment, on the whole, and the US (and Latin America) where it seems accepted. The essay is still the key assessment instrument in the UK."

Can you explain why the automated assessment is rejected in the UK in more detail.

The interesting phenomenon I see occuring in corporate america is the implementation of knowledge assessments to guage students fundamental understanding of certain concepts learned in training offered by the corporation.

Dan Finn
Re: Asking questions
Hello Dan - its a cultural thing perhaps: the idea that the supreme academic training is putting your thoughts doen on paper, structuring knowledge to make a sound argument. Remember too that the dominant form of formative assessment at Oxford and Cambridge in the nineteenth and early twentieth centuries was the tutorial at which one met one's tutor individually, read one's essay out loud, discussed it, and set the topic for the next tutorial's essay. But generally there is a view still held that computer marked/multiple choice questions cannot capture enough of a student's abilities; nor can they show in say a subject like maths, WHERE a student is going wrong as opposed to THAT HE/SHE has gone wrong.
Question about calculating the human system
Aloha Professor Rumble! It is certainly an honor!

My question pertains to human resources in the development of DE. In your 1997 Chapter 1, you write about human activities "systems" and how they can extend beyond the organizational boundaries. I find this interesting because when costing human resources, a rather "finite" formula is used to calculate the salaries/time of the course developers, secretaries, etc. Do you find that this really accounts for all the time and effort put into developing a program? It just seems to me that there are so many other ways that humans contribute to the development process that might go unbudgeted.

Thanks, and welcome to the class!

Vr, Jenny

Re: Question about calculating the human system
hello Jenny

Human activities systems as a concept comes out of systems theory - especially the UK systems people who worked for the Tavistock Group in the 1960s (people like A K Rice and E J Miller). The ideas were taken up and developed by people like Peter Checkland (Systems thinking, systems practice, 1981; Robert Flood and Michael Jackson, Critical Systems Thinking, 1991; Peter Checkland and Jim Scholes, Soft Systems Methodology in Action, 1990). Incidentally, the last gives a methodology for thinking about hard problems that I find hard to beat.

The key concept perhaps is the systems boundary. Where do you draw it, what is inside or out. I think in terms of costing human resources what I had in mind was:
a) the budget - which represents what the firm pays for your time, where contracts are of the kind 'the hours necessary to do the job' rather than, say the 40 hour week. i.e. you are paid to do a job, not to work hours. Academics regularly work longer hours than the 40 hour week ... but are not paid for it. How long - well, it could be 60 hours; how exploitative is that? What would happen if you had to pay a commensurate salary for a 60 hour week, or hire another half person? My boundary was very much round the budget and what it ostensibly pays for. The budget does not usually pay a realistic price for peoples' effort - which becomes an interesting issue when on the basis of experience in System X, you begin to plan staffing for System Y!

But of course, you are right that there are different systems - the work system, the individual's system (which encompasses the individual as employee, as student, as parent/son/daughter, Muslim/Christian/Buddhist, art-lover, animal owner, etc. etc. How these cross-fertilise is an interesting issue.

Greville
Question about calculating the human system - the 40 hour week
Grenville, you indicated "the budget - which represents what the firm pays for your time, where contracts are of the kind 'the hours necessary to do the job' rather than, say the 40 hour week. i.e. you are paid to do a job, not to work hours. Academics regularly work longer hours than the 40 hour week ... but are not paid for it. How long - well, it could be 60 hours; how exploitative is that? What would happen if you had to pay a commensurate salary for a 60 hour week, or hire another half person? My boundary was very much round the budget and what it ostensibly pays for. The budget does not usually pay a realistic price for peoples' effort - which becomes an interesting issue when on the basis of experience in System X, you begin to plan staffing for System Y!"

The difference between what is budgeted or reported in terms of work and what is actually necessary to complete design and development of courseware is also a challenge in corporations. While I may report 40 devoted to a project, the amount may be signficantly more. In trying to develop a better alignment between the actual work necessary and the budget, efforts are underway to more closely assess the work effort without necessarily tying it to the actual hours worked and in this way develop more realistic estimates of the amount of time necessary to develop a module of teaining.

Dan
Re: Question about calculating the human system - the 40 hour week
Ah, Dan, an enlightened employer concerned about burn-out of staff etc etc. When the UKOU studied academic productivity rates in the early 1970s (i.e. at the very start of the project) it was clear that staff were "overworking" in the sense of working hours that were long-termunsustainable, so the actual productivity rates were adjusted downwards to reflect what the university felt was a fair workload, and it was these latter rates that were used as a basis for the calculations for government aid; the result was a cut in the target course output from 111 full credits to 87 full credits (in OU terms a credit kept a student occupied for about 500 hours)[because the government said it could not afford the staff needed to sustain 111].

Interestingly it was argued that in maths and science and technology the need to ensure that the course built up on previous knowledge (if you like that the internal structure of the course was wholly coherent so that a student with zero knowledge at the start never got stopped by a knowledge gap resulting from content not included at some point in the course or in a previous prerequisite course) meant that the academic production rate of units (= materials sufficient for one weeks student work)would be lower in maths than in for example arts and social sciences. Also arts and soc sci used more radio and less TV than the science/maths/technology side, and making TV programmes were said to be more consuming of academic time by a factor of about 5.

Greville
Re: About the annualizaion
Dear Professor Rumble:

Welcome to the class. I would like to ask you about different approaches to the problem of capital costs treatment you have seen and heard in different countries. For example, did you have trouble explaining about annualizing capital costs?

I am a Japanese. To be honest, "annualization" first sounded like an enigma. After understanding "depreciation," I bumped the word and felt dizzy. Alan interpreted the annualizaion as a loan amortizaion formula and he found that it is built as PMT function in Excel. I could find the function, however, it didn't help me get on my feet.

At my office at Tokyo Institute of Technology, where everything is bought by school budget granted by the Japanese Government and by corporates' contributions or grants. In principle we must use up consumables and depreciate equipment and furnitures down to zero. Therefore, it took long for me to understand the term.

Now, I think I am all right about annualizaion. I remember the 1,000 card readers that the universty's accounting department had bought before they developed new accounting system. Unfortunately, it took several years for developing the system. When the system was finally finished this year, some card readers didn't fit the computers in which Windows 2000 and XP are installed. The card readers were about 30,000 yen for each at that time, but now we have to buy an adaptor to use the outdated card reader. This is simply a waste of money. I doubut if the accounting department had taken account of both social discount rate and depreciated value of the device.

I hope I have advanced a little about the cost analysis.
Best regards,
Yukiko Tanaka
Re: About the annualizaion
Hello Yukiko
The problem is that one meets different terms - if you are happy with depreciation, then use it. Basically there are 2 elements:

- spread capital costs over the years of life of the equipment (investment in course development, etc.) Some people now say training as welll as that has a value beyond one accounting year.
- since youve used money you might have put in a bank to earn interest, take account of the opportunity cost of that money. (But that argument it always seems to me is a bit spurious, why apply it just to capital, and not to all money. I would be richer if I didn't eat, no ...
- since Government funds are given for a specific purpose they are not available to put into a bank, so why take account of opportunity costs?

Anyway, just follow the conventions!

Greville
"annualize (unfortunate verb)": To Greville (6.3.1)
Greville,
In the previous module (Module on The Techniques of Cost- analysis, Main topic 8 Annualization, especially thread 8.3) we had a debate on annualization where I, confronted with the fact that most in the class never seem to have heard of it, I suggested that it might be a British accountancy term. However, recently I was re-reading Jamison & Klees (1973), two American authors, where I noted them saying "annualize (unfortunate verb)" (p. 339). It seems that they fet uneasy about it. Fortunately, we could trace alternative terms for annualization when comparing the underlying formulae (loan amortization formula cf. previous module Alan's (8.3) and mine Payment on Loan formula (8.3.8); it is the PMT- presumably standing for PayMenT - in Excel). Alan in (8.3.4 "Re: "Annualization"--the mystery is solved!) was satisfied and wroter "Thanks for letting us know that "annualization" is a British term.") Afterall, this might be wrong ... Maybe Greville, you have a look at 8.3 in the previous module (Click on EXPAND to see all the thread numbers prefixed).
Thomas
Re: "annualize (unfortunate verb)": To Greville (6.3.1)
Well there you are Thomas. I could have told you it comes up in US originated writings.

Some of us are sick enough to able to reach for our dictionaries of accounting terms off the shelves of our library with the mere swivel of a chair, whence we find

"annualise. Verb. To a express a quantity that is related to time periods as an amount per year." (French 1985)

Hence, capital value $10,000, five year life, annualised capital value per year $2000.

French specifically defines both UK and US isages and the fact that he does not say that this is a british or US term means I assume that it is recognised in both jurisdictions.

******

Yukiko who started this off mentioned depreciation.

Note that anualisation is different to depreciation which is

"The measure [in monetary terms] of the wearing out, consumption or other loss of value of a fixed asset whether arising from use, effluxion of time or obsolescence through technological and market changes" SSAP [Statement of Standard Accounting Practice] 12, para 15). In ED [Exposure Draft - a proposed redefinition] 37, para 10 it was proposed to change 'or other loss of value' to 'or other permanent loss of value'. I have not checked if this went through but I assume it did as it makes sense.

Depreciation reflecting the loss of value of a mining property, gravel pit or similar property resulting from extraction of minerals is often called 'depletion'.

Depreciation of assets with a definite useful life (e.g. a non-renewable lease of land) representing loss of value arising from effluxion of time is often called 'amortisation'.

In the UK amortisation is the depreciation of an asset with a definite useful life representing loss of value arising from the effluxion of time. In the US amortization is the step by step reduction of an amount over a number of accounting periods (e.g. reduction of a debt by instalments, any form of depreciation). The FASB Statement of Financial Accounting Concepts 3 defines it as "an allocation process for accounting for prepayments and deferrals". (French 1985). Banner, Baxter and Davis use amortization in the US sense of "Provision for the repayment of debt by means of accumulating a 'sinking fund' through regular repayments, which without accumulated interest, may be used to settle the debt in instalmentsover time or as a lump sum", but they also note that it is synonym for depreciation.

banner et al also have a very good, clear definition of depreciation, too long to set out here.

Greville

Graham Banner, R E Baxter, and Evan Davis, Dictionary of Economics, Harmondsworth, Penguin, 1992 (fifth edition).

Derek French, Dictionary of Accounting Terms, London, Financial Training, 1985.
Educational Technology failing?
Dear Professor Grenville:
First of all, thank you very much for taking time out of your busy schedule to share your thoughts and answer our questions. It is certainly an honor to have you in our class for a week.
I must admit, that the first time I read about "social discount rate," I wondered why anyone would take the time to calculate it. While it seems that it might be useful if different options are available, I didn't really understand the need for it. However, in my recent reading of the Chronicle for Higher Education, I came across and article about a study that two professors recently completed about how educational technology really has not revolutionized the classroom or made higher education more profitable (Carnevale, 2004, http://chronicle.com/prm/weekly/v50/i43/43a03001.htm). I do have to wonder, that if maybe the schools had taken the time to understand what an investment DE really is, that maybe decisions would have been made more on the true cost of the investment (i.e. social discount rate) rather than trying to keep up with other institutions who had the latest and greatest technology. Do you believe this, or am I missing part of the picture?
Or maybe institutions wanted the technology to promise more than it could?
Thank you very much for your time.
Aynsley
References
Carnevale, Dan. Report Says that Educational Technology Has Failed to Deliver on Its Promises. The Chronicle for Higher Education (50) 43, A30. Retrieved 7 July 2004 from http://chronicle.com/prm/weekly/v50/i43/43a03001.htm.
Re: Educational Technology failing?
Hello Aynsley
The problem I guess is with your phase "the true cost". Truth in good old postmodernist terms is relative (at least in the field of cost analysis - in religion there are those who argue that it is absolute). But in accountancy (which is what we are about, really), it is relative to the question being asked.

So a question on the true costs of investment really depends upon what question you are asking, and where you set the boundary. Is the boundary set in the interest of the institution (as a whole) as reflected in its budget (i.e. what it pays for), or the department, or the professor; is it in the interest of the wider economy; is it in the interests of the student. Has the article been written by equipment suppliers with an axe to grind, or by 'distinterested' [they never are] and objective [uum]academics.

I have not got ready and instant access to the article you cite (as a non subscriber) [there are boundaries to my budget now that I work outside institutions] which is a pity. But within the context of the question they ask, and provided the methodology is OK, and PROVIDED THE ASSUMPTIONS THEY BUILD IN are correct (and there may be a big doubt there) then the analysis will be valid for that question. But the answer may not be in the interests of the colleges to accept, especially if they are driven by their own budget costs.

Quite a lot of technology in education at the moment moves costs from institutions to students. As long as students absorb these costs, and there are still enough students enrolling from their point of view, the colleges will not see a problem. (Governments might see a problem because they can't get participation rates up; students individually may see problems because it gets more expensive and they have less discretionary income for other things.) Only when it is clear to colleges that the price of their courses (including fees and the 'entry costs' of study such as computer costs etc etc) are too high for the market to deliver enough students, will colleges begin to rethink their strategy.

Hope this helps.

Greville
Re: Educational Technology failing?
I would like to respond to the following comment

Only when it is clear to colleges that the price of their courses (including fees and the 'entry costs' of study such as computer costs etc etc) are too high for the market to deliver enough students, will colleges begin to rethink their strategy.

I work with a lot of schools that are using Course Management Systems (primarily WebCT and Bb). I believe that some signficant investments were made in these systems and that many schools have failed to utilize them the way they have envisioned. Recent articles have indicated that the costs of these systems are soaring and becoming cost prohibitive to many schools. Many schools are rethinking their strategies regarding these systems. While they seem to be meeting the needs of thier DL programs (communication, student tracking, assignment submission, etc), they are not meeting the needs of the traditional courses because many faculty simply use them for posting grades, syllabi, etc which could have been accomplished much less expensively through the use of other technologies.

While I believe they are able to achieve some economies of scale by allocating these costs across both traditional and DL students, and in many cases charging technology fees to students, I am wondering what you believe the future of such systems to be?

Jill
Re: Educational Technology failing?
Hello Jill

I think that at the core of your useful question is the distinction between COST and PRICE. Cost is what hits budgets - the institution's budget, the individual student's budget. Price is the figure that theinstitution chooses to ask students to pay, and it is the cost that the student accepts when they sign up.

COST and PRICE have no necessary linkage. Sometimes prices are fixed on a COST + MARKUP basis but by no means always; the comment on airline ticket sales which came up in another post for example is a classic example where price is not necessarily related to cost. After all, if it cost you $20 to make a product and you sold 80 of the 100 you have to sell at $25, this is a clear case of markup; but then you might discount prices to preferential customers (22.50 for repeat orders or bulk orders), or price as aloss leader to get the product known on the market ($15), or you might have a sale where you sell off old stock even though its less than its cost because it is better to get $12 or whatever than nothing. Or you might have 2 or more products (say courses) and use the BIG profit on course A to subsidise the loss on course B (standard pricing even though costs are not the same).

Generally though, the aim in pricing has to be eventually to cover your costs and generate enough money for reinvestment in new products, otherwise you go out of business. (The fact that some of your costs may be covered by government per student payments makes no difference to the argument, unless you are not allowed to charge any fees, in which case all you have to do is keep [overall] costs within grant levels.)

Where is it going: I wish I knew but the early enthusiasm is I believe giving way to greater reality. Some of us who live through the educational television bonanza days of the 1960s and 1970s might have said, I told you so. There seems to be a cycle of

- early adopters, enthusiasts, no concern about costs, hype on benefits, increased grants to research new wonder technology, expectation that will solve all problems, some academics get great kudos and professorships (in European sense, a chair - i.e. the top of the profession - and lots of grants)

- widespread adoption, on basis of hype ....

- gradual understanding that its not all it was hyped to be, leading to

- some disinvestment, gradual understanding of mix of benefits/disadvantages, incorporation of technology into spectrum of possible solutions, general recognition that old systems not so bad after all and need not be dumped ...

[i am not here talking about specific technologies, e.g. vynal records, audio-tapes ... but about the big picture of correspondence tuition 'technology', teleducation (educational TV and educational radio, e-learning).

Greville
Back to AynsleyEducational Technology -the true cost
Aynsley, you wrote "I do have to wonder, that if maybe the schools had taken the time to understand what an investment DE really is, that maybe decisions would have been made more on the true cost of the investment (i.e. social discount rate) rather than trying to keep up with other institutions who had the latest and greatest technology."

It seems important that the true costs of an investment be determined with valid assumptions and taking into account the discount rate in order for everyone to know what the true investment is and can make an adequate assesment of whether to proceed.

It is challenging at times to put together the necessary calculations, review them with the finacne gurus, and then finalize a presentation on the value of an investment for the organization. However, it does assure that the organization knows what the investment necessary and in our case what the benefits are to develop a return on investment.

Dan
Re: Back to AynsleyEducational Technology -the true cost
Yes - the argument is that if you are comparing capital intensive vs capital non-intensive projects, you need to take account of the cost of capital. Greville
Re: Two concurrent threads
While we can debate the appropriateness of of including an interest factor (social discount rate) into a capital investment, it seems as if there is a growing consensus that people are putting in a lot more than 40 hours work for 40 hours of pay (budgeted personnel expense).

In my experience and in the literature, the development and delivery of distance education involves far more effort than face to face teaching. First, distance education must be overdesigned, to cover many of the avenues of inquiry that might (but do not necessarily) arise in a face to face class. Second, interacting with students by asynchronous text messaging is much more time- consuming than responding in person.

It would seem that the hidden cost of all this extra (and usually uncompensated) effort is much more significant than the social discount factor. Does anyone agree?
7/10 To Alan on Two concurrent threads
Alan,
You wrote, "It would seem that the hidden cost of all this extra (and usually uncompensated) effort is much more significant than the social discount factor." I agree wholeheartedly. While I admit to spending an extra 20-30 hours a week for my f2f classes, I know that I would be spending much more than that if I taught them through DE. I also feel that my students (10th-12th graders) would benefit more from a DE experience. Even now I spend time every night and even weekends using chats to help students with concepts they do not understand during class time. I'm not asking for compensation for the effort, but would appreciate that the effort is recognized.
Michele

Re: 7/10 To Alan on Two concurrent threads
But of course, Michele, you are talking (as is Alan ?) about a particular form of DE - elearning with asynchronous support. Synchronous support reduces the time (or at least controls it) because there is start and a finish time). And f2f does the same because workload is driven by a timetable.

But your experience is I think the general one, so will elearning go on being so popular?
To Allan Re: Two concurrent threads
I would think it would also make a difference in the planning or analysis whether personnel pay is by contracted set salary or by hourly wage. Am I looking at this skewed? Diane
Re: To Allan Re: Two concurrent threads
No Diane: you are right. Imagine saying, we will pay you $50 to mark an essay and we assume that you can mark an essay in 2-30 minutes as the UKOU does; most tutors say it takes longer, 45-60 minutes, and I believe them. But they are conscientious and enjoy the work so they do it. Hourly rates can be unfair.

In e-learning one might say, we will assume, Greville, that you will be online this week for 20 hours, and pay you X; but what if I am online 30 hours ... or 10. It depends how reasonable the time estimates are.

But generally a contract for service which pays by the hour (a bit like paying a plumber to fix a faucet) will work out cheaper because you dont cover training, holidays, sickleave, etc. It is certainly cheaper to say to a consultant, we'll pay you $5000 to produce the texts for this course than it is to hire someone on a permanent salary to do the job (but there are gains in full-time staff too, in terms of building up a community of scholars).

Greville
Re: Two concurrent threads
Alan

Several points:
(a) once youve spent money on capital, it becomes a sunk cost. So what you say would be true of the buildings, equipment side. But there are arguments that the whole idea of capital has been restricted too much to physical capital and that any expenditure that involves spending money on something with a useful life of more than one year should be treated as capital. Examples given are staff training, but course development would also fall into this category.

(b) at present the cost of capital is low because interest rates are high. If you look back to the literature around the educational TV stuff, you will find that the sorts of rates Dean Jamison and his colleagues were discussing were 7.5%, 10%, 15%. That is very different to today, and hence made capital very significant.

(c) what applies in the US and UK may not apply in a developing country. Orivel makes the point that putting computers into schools makes sense in a developed country because the cost per student per hour of study on computer is less than the cost per hour per student of being taught in class, but in a developing country the high cost of imports and the low cost of labour means that labour is cheap.

(d) having said that, generally in DE we know that in the development phase of course materials, the use of technology has led to a loss of academic productivity in the course design process because it takes more academic time to produce the materials to occupy a student for one hour. The gain in productivity comes because many more students can study the materials independently without impacting on academic staff time.

Greville
Follow-up to attribution of costs to joint products?
Hi again Professor Rumble!

I was intrigued by the many ways in which you found dual-mode institutions were attributing costs (in your 1997 book, Chapter 8). I was wondering if you had done any follow-up on this since 1986 and if so, how the results differ (if they do) since there are so many more institutions now.

For what it's worth, I thought that the "fairest" and most logical method for attributing development costs was the one set forth in example A: sharing original cost equally in both traditional and DE programs, then putting all the additional DE version costs on the DE program only. Most of the other methods you described seemed to me to make students share the costs of items that they are not using. (Such as traditional-only students having to share the DE development costs wholly or partially, even if they never take a DE course.) Then I read your conclusion at the end of the chapter and noticed that you seem to favor example A as well...so I was glad to know that I was not totally off track.

Is attribution of dual-mode costs still so varied that it is difficult to make good cost comparisons from one institution to the next?

Thanks for your time!
Susan Pollack : )
Re: Follow-up to attribution of costs to joint products?
Hello Susan
I have not followed it up - it would be a good dissertation/PhD topic perhaps for someone ... I found it quite hard to conduct the research, at the time. My impression is from talking to people that there is still a lot of variety in practice, sometimes driven not by financial logic or fairness but by political expediency within a given funding regime.
Greville
Re: Follow-up to attribution of costs to joint products?
As I referrred to in a earlier post related to the rising costs of course management systems. I do not believe that many DMU's could justify the cost of a course management system for use strictly with thier DE courses. That investment in technology used across the university makes it finacially feasilble even though the use with traditional classrooms my be superficial or even nonexistent. I think that many insitutions are also able to justify the costs of course development for online courses by also utilizing those same materials in hybrid courses on campus.
Re: Follow-up to attribution of costs to joint products?
My feeling is that while many DMUs originally went into the field of DE to access new markets, what they found was that they could begin to use DE techniques on campus to reduce teaching costs. In effect, any institution that (a) reduces contact time, or (b) increases class sizes so that small seminars give way to big ones, and where lectures become the norm rather than seminars, is trying to reduce its costs; IF at the same time to compensate for this it changes its pedagogy to emphasise resource based learning and independent study, with an option if you are stuck to contact a teacher by e-mail, then it is in effect shifting to distance learning approaches, though it may not call it that.

To reduce costs to cope with falling budget allocations, while at the sem time coping with the enormous expansion that has hit universities, many universities have dome precisely the things I mention above. This is more than just having a DE division. This is transforming the pedagogy, so that in effect DE pedagogy is used on campus. Generally (in Australia, UK) its called flexible learning or more recently blended learning. In effect DE "wins".

Greville
3. The 'vulnerability debate'
Dear all,
one major assignment for this module was reading about the discussion of what Greville termed the vulnerability of DTUs (Distance Teaching Universities). The debate is not new but the issue is still an interesting one and much can be learned about it about costs and costing.
A number of observations are made by Greville in the introduction to his particle: "Given the enthusiasm and interest which distance teaching universities (DTUs) have aroused, it is perhaps surprising that there are relatively few of them." Greville reports that some countries like Australia and Sweden did opt against this approach preferring more decentralized approaches to distance learning.
Strengths of DTUs
Under this main topic I invite you to discuss this article. I will give the debate a little twist, by including a recent article by Otto Peters in the list of suggested readings. The main thrust of the article is not an economic one. It rather describes Otto Peters vision of the new university which makes use of the new media and provides the appropriate environment for the autonomous learner. I suggest to look at this article because it includes an annex which is intended to demonstrate that DTUs (the example being the German FernUniversität) are being better positioned to develop into this type of university. Peters' article includes a number of arguments underscoring the section 'The strengths of distance teaching universities' in the Vulnerability article.
Scale and scope
I want to turn your attention to a number of points which you profitably can discuss with Greville. First of all, the role of how the number of courses affect the overall cost efficiency of DTUs. The argument is also included in Laidlaw and Layard's article included in the readings. The more courses you offer the more you fragment enrollment therefore eroding scale economies. (Have a look at the formulas 128 and 129 in the textbook.) There might be on the other side a danger of reducing the spectrum of courses offered: if the offer of the institution is too limited then it might not attract the number of students necessary to justify the economies of scales. This seems to be a typical catch 22: in order to attract sufficient students you need to offer a sufficient wide range of courses. However, the very range which is a magnet to attract high numbers is at the same time eroding the economies of scale by fragmenting the high number into too many courses. Hence the fact that traditional universities already have an established structure to cater for all sorts of disciplines puts them into a better position.
Credentialism
One interesting piece of argument in the paper I found the implicit reference to credentialism. There is a school of thought which argues that education is not so much about conveying competencies in various field than a mechanism for screening. Therefore the importance of a degree. Therefore the importance of the name and prestige of the institution which graduates you. Students might put up with lesser quality instruction if only the name of the institution lends some credence to your degree. Given that more often than not the traditional universities have a higher prestige than DTUs students might flock to traditional institutions which have developed into DMUs, especially if they will receive the same certificate.
Piranha Effect
Even if DTUs have a strong position with respect to technological competence, the cumulative effect of traditional institutions going dual mode, and hence taking each of them only small proportion of the market, might erode the almost captive market of the DTUs. Being dependent on scale for spreading their high fixed costs over large numbers of students, this may weaken the DTUs advantage in comparative cost-effectiveness. This would be a pity, since it could mean that though taken alone the DTU would outperform all its DMU competitors but fall prey to the piranha attack of many DMUs.
Cost attribution
A further set of questions could address the issue of cost attribution. I found this an intriguing exercise. We have somewhat neglected the issue of overheads and the issue of cost attribution. We could take it up here. This is a problem which plagues institutional researchers: if the method of cost apportioning is so variable it seems to introduce a sort of postmodern arbitrariness into costing. Especially, costing specific operations of an institution seems to be an impossible exercise since the underlying methods of apportioning costs are not spelt out clearly. Are there standards?
New developments
The vulnerability article saw dual mode institutions competing with DTUs. It sees the pressure coming from traditional universities which, since they also cannot ignore the new technologies, open up an out-of-campus wing. This is a recognition that traditional universities change under the pressure of (i) the new technology and (ii) the policies demanding increasing 'internal efficiency' savings. Even universities which do not develop into dual mode institutions may be more efficient today than when Wagner and Laidlaw & Layard published their comparative research. (cf. Rumble, 2003).
But it seems that also DTUs are affected by the new technologies. learning platforms allowing asynchronous computer mediated become standards. This means that there is a shift from individual study to group learning and, related to that, an increased demand for communication with the instructor.
I hope you will come forward with lots of questions.
Regards
Thomas
_____________________________________
References:
-- Peters, O. (2001 February).
Learning with new media in distance education. Fernuniversität- Gesamthochschule in Hagen. Fachbereich Erziehungs-, Sozial- und Geisteswissenschaft, Institut für Erziehungswissenschaft und Bildungsforschung. Retrieved 06,17, 2002, from the World Wide Web: http://www.uni-oldenburg.de/zef/cde/found/lnm.htm
-- Rumble, G. (Ed.) (2003). Papers and debates on the costs and economics of distance education and online learning (Vol. 7). Oldenburg: bis.
-- Rumble, G. (2003). The competitive vulnerability of distance teaching Universities (1992). In G. Rumble (Ed.), Papers and debates on the costs and economics of distance education and online learning (Vol. 7, pp. 67-88). Oldenburg: bis.
-- White, V. (2003). Responses to Greville Rumble's article 'The competitive vulnerability of distance teaching universities'. In G. Rumble (Ed.), Papers and debates on the costs and economics of distance education and online learning (Vol. 7, pp. 89-92). Oldenburg: bis.
-- Mugridge, I. (2003). Responses to Greville Rumble's article 'The competitive vulnerability of distance teaching universities' (1992). In G. Rumble (Ed.), Papers and debates on the costs and economics of distance education and online learning (Vol. 7, pp. 93-96). Oldenburg: bis.
-- Keegan, D. (2003). The competitive advantages of distance teaching universities (1994). In G. Rumble (Ed.), Papers and debates on the costs and economics of distance education and online learning (Vol. 7, pp. 97-102). Oldenburg: bis.
-- Rumble, G. (2003). The competitive vulnerability of distance teaching universities: a reply. In G. Rumble (Ed.), Papers and debates on the costs and economics of distance education and online learning (Vol. 7, pp. 103-106). Oldenburg: bis.
-- Rumble, G. (2003). Competitive vulnerability: an addentum to the debate (1998). In G. Rumble (Ed.), Papers and debates on the costs and economics of distance education and online learning (Vol. 7, pp. 107-117). Oldenburg: bis.
Re: The Peters article and virtual conferences
One of the arguments Peters makes concerns the continued need for face to face communication:
"What is missing is the consciously perceived presence of the others, their aura, the feeling of being together, which arises in a different manner on every meeting. All this makes communication genuine and lively. A virtual university which does without face-to-face events by pointing to the possibilities of video- conferencing will always remain a surrogate of a university." (Peters, p. 14)
If Peters is arguing that a university necessarily requires face to face discourse (and further, that that is sufficient), I beg to disagree. According to Plato, Socrates made the same argument in criticizing the advent of written communications (See Phaedrus at http://www.units.muohio.edu/technologyandhumanities/plato.htm.
While it is true that I cannot tell if Gary is rolling his eyes, or Tea is shaking her head, and others are stifling yawns while reading this posting, I would not trade this conference for a 2- hour face to face discussion in a classroom. In that setting we would not have the benefit of such a wide range of viewpoints, the expertise of our overseas mentors, the luxury of being able to think over what has been "said" before responding, or the ability to respond to different ideas that had been raised (discussion threads) before the focus of the discussion turned to another topic.
While virtual discussions are necessarily different than face to face, they offer many advantages that are entirely consistent with-- and even promote--the concept of a university. In fact, the virtual conference may be superior to the live debate in an educational setting, in that it promotes a more intellectual discourse. It will tend to sharpen our minds, rather than our tongues. It allows those to speak who might otherwise be intimidated by the setting, by the force of personalities, or by the atmosphere. Virtual discussions are more democratic, inclusive, diverse, and tolerant of divergent views, and they can be revisited, studied, and analyzed--certainly ideals that a university should embrace.
I feel sorry for those classroom-bound university students who do not have the benefit of discussions such as ours. If I had to choose between the two, I think my experence at UMUC would lead me to choose the asynchronous virtual conference over the face to face.
Re: The Peters article and virtual conferences
All of which I agree with - virtual conferences are wonderful, and some seminars are awful, but there is a place still for the cut and thrust of live argument, for showing you can think on your feet even when being attacked by several critics at once - think in microseconds, and win in what is essentially a democratic argument, rather than cogitate at length before giving a well-rounded response. After all, in real life one has to win arguments in live situations ... and virtual conferences don't give one that; phone calls might, so might video-conferences ...
Re: The Peters article and virtual conferences
I think everyone has made good points in this area. I for one am a lurker and I know it. I make an effort to avoid it and yet I still do. I also agree with Prof. Rumble that some f2f interaction can be important. I do get more out of a class in this type of format but if I am a lurker here can you imagine what I am like in a f2f format. I have a strong southern accent that comes out when I am nervous. It has been so bad that in a speech class the teacher actually was laughing at me. I think that maybe doing more in the f2f format would help me overcome that problem.
Leslie
What its all about: Knowledge and skills
I guess all I am saying is that its not just about academic knowledge but about one's ability to pass tghat knowledge on,share it, etc. At least, it is usefless having knowledge if one can't express it or use it in some way. In much of the world of thought that means:

- Writing ... of which their are various kinds. For example, I can write a book or an academic article. I can also when in the mood write a mean letter, postal or e-type. But I would struggle to write a headline, an advert, a poem, a play, a novel, etc.

- Talking - again of which there are various kinds: I can give a good lecture, but am less assured in seminars; hate telephones ...

But these are the way we get our ideas across. And of course DE provides more opportunities for some of these, less for others, so when it comes to skills as opposed to knowledge, one has to rate DE and elearning differently to f2f in terms of the possibilities open to participants and the outcomes. Building in opportunities to develop skills has implications for how one teaches, and hence for cost.

What I am clear about is that ideally we would all be comfortable and gifted in each means of communication.

Greville

Prof. Rumble - Re: Live Arguments
Sir,

You write "After all, in real life one has to win arguments in live situations." I would assert that online distance education is also real life. I tend to avoid live situational arguments whenever possible, and am much more willing to participate in such animated exchanges of ideas online or in other forms of written exchange. My mind is rarely changed during a f2f argument or debate, while I find myself giving much more consideration to online argument or debate. For instance, I would probably not have voiced this thought in a live f2f classroom.

Vr,
Diane
Re: The Peters article and virtual conferences
Alan, Prof. Rumble, and Diane all provide excellent points to this issue. However, I must side with Alan and Diane on this point. Just like socialization, it doesn't take a resident classroom to learn to debate and think 'on your feet' and be good at it. What we learn here in a virtual environment can be well put to use in the work center, contributing to a lively debate.

Nearly my first two years of undergraduate work was in the classroom. I was a lurker for various reasons. The last half of the program I spent in on-line classrooms, with the exception of three classes. Of those three, I only enjoyed one and openly debated in the class on various topics. This was after several on-line courses. The final face-to-face class I took convinced me (my opinion) of the superiority of distance learning, for the very reasons Alan presented in this thread.

Alan - it just took the right topic to get me going. :>)

Gary
Re: The Peters article and virtual conferences
Well, there is plenty of evidence that individuals don't necessarily contribute to electronic conferences either, but lurk ... and it may be easier to lurk in an electronic environment than in a f2f class ... anyway, its what you like as an individual. I for example, absolutely hate telephones. Thats a weakness I think.
To Prof. Rumble: Re: The Peters article and virtual conferences
Prof. Rumble,

You stated: "Well, there is plenty of evidence that individuals don't necessarily contribute to electronic conferences either, but lurk ... and it may be easier to lurk in an electronic environment than in a f2f class ... anyway, its what you like as an individual. I for example, absolutely hate telephones. Thats a weakness I think."

In previous courses, we have had some lively debate about lurkers. And while I enjoy learning in the virtual environment, like you, I hate phones. I would rather talk with someone in person. I use email as a means of communicating when there is sufficient distance and no answer on the phone. I like to follow up emails with personal contact or phone a call.

Gary
Re: Prof. Rumble - Re: Live Arguments
hello Diane
I'm not trying to say that e-fora are not good places to argue about issues - that having time to reflect on inputs (both those you read and those you write) is not good ... nor am I making a judgement about what people as individuals prefer (like you, I actually prefer online teaching-learning). My only point I suppose is that people can't just live their lives online, and that in many fields - media, politics, etc. being able to present arguments f2f is an important skill, and its one f2f education tends to teach. I attended my nieces wedding a while back and the MD (this was Canada, so they used the terms and not 'Best Man' like we do) gave a funny, assured, well structured speech - so after I congratulated him on it and he kind of looked like, why whats so special - so we got talking about skills and his skill in speechmaking came from the fact that on his Business programme he had to make one 15 minute presentation every week to his class - and answer their questions. Impressive. Not a skill distance educators necessarily have.
greville
Back to Prof. Rumble - Re: Live Arguments

I do understand your point. I think there is still often a distinction, though, in whether online interaction is seen as potentially equal to f2f interaction. I see both as having comparable value, although perhaps depending on the specific context involved. I appreciate your response.

Vr,
Diane
To all on discussion of online participation
Aloha everyone! I just read all the interesting points regarding participating in an online environment versus classroom, and agree with many of the points made. My opinion is kind of a middle of the road view in that we need exposure to both, discussions in a "live" sense which is important in socialization and communication (most of us get this in the job environment) as well as conversing online in the classroom. Communicating online is a format that we must use because we are DE students. But, I find that in my case atleast, the physical typing of words allow me the opportunity to better formulate my thoughts. There are many times that I avoided the "foot in mouth" syndrome online because I can "edit" my thoughts before submission.

VR, Jenny
Back to Alan regarding on value of DE vs f2f
Alan extolled to value of these conferences vs f2f classes.

I totally agree and find the depth of discussion and the diversity of ideas incredible. Sometimes I react to what others have written (and reasearched) and other times I provide fodder for others to respond to. It is much more of an intelectual discourse than I have found in f2f classes.

Dan
Re: Digitializing Resources and more
Professor Rumble,

Like Alan, I am delighted and honored to make your acquaintance, if only digitally (how appropriate for this conversation).
In the opening paragraphs of the Competitive Vulnerability of Distance Teaching Universities, you list as one of the advantages of ODL students is they do not "need ready access to a library" (Ruble, 2004, p. 67) that all materials are prepared and sent to them. Moving ahead almost 10 years Peters (2001) in Annex: Learning with new media in distance education sets 1996 as the advent of Broadband and quickly follows with 1997 as the advent of digitalization for ODL courses. How are DTUs handling the digitalization of resource material in general? Do they digitalize their own libraries to allow access? Do they develop partnerships with existing digital libraries? Or do they continue to limit the resources they provide their students? How does the cost of doing any of the above impact their short and long term costs? Does digitalizing data and providing online access to that data provide any actual long term cost savings? Or considering the costs of online access creating a semi-variable need for more and expensive technology do any potential cost savings become lost as the variables increase? Is there a balance point?
At DMUs the cost of digitalizing libraries could be justifiably spread across the entire system limiting the financial impact on their ODL classes. And as digitalized libraries and resources become available do they not enhance the actual, as well as the perceived (name recognition), value of degrees from DMUs? What is the best way to counter act this?
And lastly (Sorry to throw so many questions at once, but this is a very vocal class and if I don't get them in now I may not get a word in the rest of the time you are here. 8^D (Tea laughing)), how do DTUs over come the prestige (name brand) problem? In the past DTUs had a specific niche that it filled; older students without time or location to DMUs; or who were perhaps not qualified and wanted to work their way into and education. Now with more and more DMUs entering the ODL world the DTUs' normal market is no longer safe. How do DTUs survive what Thomas has called the Piranha Effect? (I must admit I am an educational elitist snob, I would rather have a degree from Harvard, or Cambridge or Yale or Oxford or Dartmouth, or McGill. But that is not going to happen (location and finances are the main reasons, but I am not all the certain I could get into Oxford or Yale if I had the dollars and lived next door --long,long sigh). That said I agree with Alan, the quality of our virtual conferences are far superior to discussions in prior face to face graduate classes in "name brand" schools .
Thank you for your time,
Tea

References:
Peters, O. (2001 February). Learning with new media in distance education. Fernuniversität-Gesamthochschule in Hagen. Fachbereich Erziehungs-, Sozial- und Geisteswissenschaft, Institut für Erziehungswissenschaft und Bildungsforschung. Retrieved on 07/04/04 from http://tychousa5.umuc.edu/OMDE606/0406/9040.

Rumble, G. (Ed.). (2004). Papers and debates on the economics and costs of distance and online learning. Oldenburg, DE: Bibliotheks- und Informationssytem der Universität Oldenburg

Re: Digitializing Resources and more
Libraries:
For remote students unable to get to a library or buy all the books they need, DE courses that provide you with the materials you need to study are great. But the argument against this is that students get a limited selection of views and so are spoonfed; and that they miss the serendipity moment of finding a book on the library shelves and reading it and getting that wow factor; and they definately miss out on books published after the material went to press, which becomes more and more of a problem become subjects move on at a breathtakeing rate.
The advantage then is a limited one. E-libraries open up possibilities of access to more books and especially journal articles and this is a great advance. But there are problems with too much access; how does one know a book is worth reading ? that X on Abstract Impressionism is rubbish but Y is good. Book lists become a great way forward, as do what scholars say in book reviews and in their own books.
E-libraries with everthing on them, and ordinary libraries too with every publication, are vast (even in this country there are over 100,000 new books published in English each year). So a filtering mechanism provided by a course team is a good idea. But I think it depends on the level of course one is operating at: e.g. foundation level ? spoonfeed to a degree; senior undergraduate, try for more works than people could reasonably read so there is an element of choice; project based course verging towards research ? find your own materials. Even where libraries are digitalised, though, providing people with guidance seems like a good idea ? this will limit searches to a degree (or make their searches more profitable and efficient!)
DTUs and digitalisation
Most are moving towards electronic libraries ? not be going to the backlist of books themselves but by getting access for their students to journals and digital libraries. On the costs, I haven?t come across particular studies but the Library of Virginia found which digitalised its old records found that order fulfilment costs fell markedly and so that there were real savings over postal delivery to remote users and also to over-the ?counter orders. Also digitalisation will reduce stock holding/warehousing costs, but replace these with the cost of digitalising in the first place. There is an unknown about the future of course ? systems held in one format will need to be transferred to new formats ... that might be a problem in the future.
None of this means that DTUs are not still sending out stuff in book form; note that digitalisation passes the cost of printing out onto the student ? and would make things impossible for many poor students/students in Africa, etc.
Brand.
Yes ? a problem because of (a) view that DE is not as good as traditional forms of education (though as more and more people use DE/fllexible learning approaches this will become less problematic; (b) the name of the University. Frankly names count, so I am with you on where one gets a degree. Time though tells ... these days most people in the UK might privately admit that all the world?s great universities are in the USA ? they don?t say it publicly though. But even in public there is a lot of angst about maintaining ?world class status?, even at Oxford ? especially at Oxford. So brands do fall (and rise). Andyes, with DMUs that have established names as providers of traditional education emerging to compete with DTUs, even ?world famous? DTUs get an uh ? who response. Who in the US would realy want an OU (UK) degree? My ex-Vice- Chancellor found this a difficult concept ? which perhaps is why he lost so much money taking the OU into America!

Greville

Prof. Rumble Re: Digitializing Resources and more
Sir,

Not only remote students cannot get the books they need. I (and assumably others in this class) am still waiting for my copy of your 1997 The Costs and Economics of Open and Distance Learning that I ordered in May . I was informed today that the university bookstore still has not received the book from the publisher and I certainly would have benefited from having the book from the beginning of the semester. Even though Thomas was helpful in posting the text of the relevant chapters, lacking the tables referenced in the text was a drawback. It gives me greater appreciation for the extra effort that a remote student must make.

Vr,
Diane
Re: Prof. Rumble Re: Digitializing Resources and more
Ouch. I'm sorry about that: Thomas I think has electronic versions of the chapters(!) and I suppose he might have done a deal since the publishers dont want to produce more copies to have it available digitally; and Thomas and I have a contract to write the replacement text ... which is why the publisher is not reprinting! Mea culpa, mea maxima culpa ... we really must get on with it, Thomas (if you're lurking in this conference too shy to interject!)

Shy lurker: To Greville (7.2.3)
Greville,
not too shy to interject: I proudly announced it in my short intro for you. I worte:
Rumble, G. (1997). The costs and economics of open and distance learning. London: Kogan Page. (It is will be published under a different name and with strongly revised content and I have the honor to cooperate with Greville to do this.)
Thomas
Re: Shy lurker: To Greville (7.2.3)
You're right - I forgot ... but it does not solve the problem for the students .. we MUST get writing Thomas: I have finished my 2 UNESCO chapters; written my dissertation on the iconography of Mary Magdalen in Italian religious art 1300-1500; and will start on the book when I get back from Rwanda on 9 August!
Re: To Shy lurker: To Greville (7.2.3)-with a sly smile
To Thomas and Greville
Hey an accounting book with Mary Magdalen (iconically no less) in it -- Now that is my kind of book-- Does she balance the books for UNESCO? -- Will Thomas meet Greville in Rwanda and will economics every be the same.

Tea -- with a very evil grin...
And Yes I intentionally miss read the post. It is so heartening for us all to hear even the pros must do a balancing act.


Back to Grenville re eLibraties
Greenville,

It is interesting to read your thoughts on resources avaialbe via elibraries and distance education.

In the OMDE classes I have taken I have found the texts, supplemented by key reading provided as part of the class provide a rich resource of the best materials (at least as determined by the professor) for the learners. This then supplemented by research on via the eLibraries provided through UMUC and materials avaialble via the web provide such a rich resource, much richer and easier to access than any traditional library, at least in my opinion.

Dan
Re: Back to Grenville re eLibraties
Dan - I agree with you, but someone has used their knowledge to select what is useful ... its a different experience to being on your own with no guidance except that of bibliographies at the end of works you do read, and key-word searches. Of course serendipity may strike and you find something really good, but there is a lot of dross out there too! Greville
Unterzweig
And then there is access to the research librarians. The University of Maine has a state wide library system in co-operation with the state library, Bangor Library, etc. They provide services to all residents of the State of Maine (a tax bill or Drivers license will do). On their web site they have that lovely link to ask a librarian. It many take 24 hours to get an answer, but it often helps if you are not sure what you are looking for. UMUC librarians can provide the same kind of help, along with many other services.

In OMDE611 (libraries in DE) you have the opportunity to learn a great deal about what services are available at most libraries, and how as a member of the DE community to use and/or incorporate them into your work/program.

For someone like myself who is more than and hour (45 miles) from a small research library having e-access to libraries and library assistance is critical.

Tea
Re: The vulnerability debate
Good to have you with us, Professor Rumble. Please allow me to compliment the objectivity and frankness in the readings. And with that, the vulnerability article brought to light some issues that I have not considered, and I appreciate the opportunity to discuss one of them.

The higher fixed costs borne by the DE program are spread over many students in order to remain sustainable. The direct cost per student increases with respect to the amount of direct support. "The more direct support given to students, the less likely it is that distance education will be able to offset its higher fixed costs over the student body to obtain a lower average total cost" (p. 75). Time and again, the importance of the quality of education is stressed. This being said, with the shift from individual study to group study, and a greater demand on the instructor, how does this affect the feasibility, sustainability, and/or profitability of DE programs?

I, too, agree with Alan and Tea on the attributes of the virtual discussion, and a hooray for Otto Peters; I truly enjoy his writing. Thank you. Marti Worlein

Re: The vulnerability debate
G'day Martha
(1) The higher fixed costs borne by the DE program are spread over many students in order to remain sustainable. YES.
(2) The direct cost per student increases with respect to the amount of direct support. "The more direct support given to students, the less likely it is that distance education will be able to offset its higher fixed costs over the student body to obtain a lower average total cost" (p. 75). (YES)
(3) Time and again, the importance of the quality of education is stressed. YES, BUT WHAT CONSTITUTES QUALITY?
(4) This being said, with the shift from individual study to group study, and a greater demand on the instructor, ... WHICH IS THE PROCESS THAT WENT ON IN TRADITIONAL UNIVERSITIES AT LEAST IN THE UK AS THEY SOUGHT TO MAKE 'EFFICIENCY SAVINGS' OR AS SOME WOULD PUT IT, CUT THE QUALITY OF THEIR TEACHING TO SAVE ON COSTS ...
how does this affect the feasibility, sustainability, and/or profitability of DE programs? IT MIGHT HELP DTUs BECAUSE AS QUALITY DIVES IN TRADITIONAL INSTITUTIONS WITHOUT ANY COMMENSURATE INPUT OF EDUCATIONAL TECHNOLOGY THINKING INTO SPECIFYING AIMS, OUTCOMES, CONTENT, STUDY POINTS, ETC, SO THE DIFFERENCE BETWEEN WHAT DTUs THAT DO DO THESE THINGS MORE OR LESS AUTOMATICALLY AND TRADITIONAL INSTITUTIONS WHO DON'T, BECOMES MORE CLEAR. HOWEVER, YOU STILL HAVE TO GET THAT MESSAGE OUT AND IT IS A HARD ONE TO SELL.
Greville
Re: The vulnerability debate-can new DTUs survive?
Hi Dr. Rumble,

Thank you for participating in our class discussion. I look forward to learning from you.

My question is in regards to establishing new Distance Teaching Universities. (Sorry, this is lengthy)

On page 82 of your 2004 text, under the heading of Strategic Options a Competitive Environment you state "A more fruitful development for DTUs might be to gain further students by internationalising their business" (Rumble, 2004). On page 83, of this same text, you suggest that DTUs might attempt to establish joint ventures to gain a competitive advantage over DMUs.

Last semester I, along with several other students presently enrolled in this class (Alan Stover and Yukiko Tanaka) completed a case study of Universitas 21 Global, an organization I am sure you are familiar with.

Universitas 21 Global is a joint venture between Thomson Learning and Universitas 21, a consortium of 17 research universities established to "facilitate collaboration and cooperation between the member universities and to create entrepreneurial opportunities for them on a scale that none of them would be able to achieve operating independently or through traditional bilateral alliances" (About Universitas 21, 2004)

It is also an organization aiming to internationalize its student body-by focusing on students in Asia and the Pacific Rim.

Universitas 21 Global is a DTU that is focusing on an international student body, it is a joint venture between several highly respected universities and yet, Universitas 21 Global appears to be failing. On May 29, 2003, U21 Global launched its MBA program, with the expectation of enrolling 800 students. But, the enrollment status as of November 2003 was as follows: the total number of applications submitted 154, the total accepted 102, the total number of students that paid tuition was 86, or 56 percent of the submitted applications (Aghi, 2003).

So I say all of this to ask: Do you think there is a future for new DTUs? Or is the market already saturated with established DTUs and DMUs making it difficult for a new player to enter the field? Or is Universitas 21 just an anomaly?

Sorry for the length, and thank you in advance for your insight into this matter.

Delecia

References
Aghi, M. (2003). On-line education-A non- virtual experience. Address to the Association of Pacific Rim Universities, December 2, 2003. Retrieved April 12, 2004 from
http://www.cit.nus.edu/sg/dli2003/apru_PPT_Final/2DecKeyNote2/Mukesh%20
APRU%20talk%20v2.pdf (site no longer active)

Rumble, G. (Ed.) (2004). Papers and debates on the costs and economics of distance education and online learning (Vol. 7). Oldenburg: Bibliotheks- und Informationssystem der Carl von Ossietzky Universität Oldenburg.

Universitas 21 Global Press Release, April 5, 2004. Retrieved April 12, 2004 from
http://www.u21global.com
Re: The vulnerability debate-can new DTUs survive?
Hi there Delecia
and if you want other failures, the UK e- university (to provide digitally to the rest of the world the best of British universities) has failed too.

1. Would a country such as the UK set up a DTU now. No - probably (99.9%) not because so many other institutions are doing distance / e-learning, and we have a mass education system now, and we have broken so many of the barriers that kept the system elitist (for school-leavers, not adults - [incidentally my dashes translate as question marks when I input to Webtycho] so no going back; for those with high school qualificatiosn at a high level, so no late starters please; lets not have a buyers market, lets have a sellers in which universities choose who they want, which means we choose bright people we don't have take time teaching). Note Australia which had a history of DMUs decidec NOT to set up a DTU - 1975 Karmel Committee. Sweden did the same, giving the job to its traditional universities.

2. Would one set one up. YES, (a) where traditional universities were like the UK ones in the 1960s not interested (e.g. Bangladesh Open University); (b) where there are so many to be educated, and the budgets are so tight, that a DTU is the way to reduce costs.

3. Why do consortium fail. Because there is not enough in it for the partners. Why would you let the e-uni in the UK cream off money as a middleman when you could be doing it yourself under your own, better known name. Why does the National Technological University in the US work - because its win- win for companies who put their workers in as students, the providing universities (they get money for almost no effort), the professors who teach (they get more money), the NTU which is a small HQ so not costly, and for the students who get masters from leading engineering colleges. On corsotia in DE, see Louise Moran and I Mugridge - a bit old now but useful points in it.

Greville
Re: The vulnerability debate-can new DTUs survive?
Dr. Rumble:

Thank you for your very honest response-I will look up Mugridge and Moran-I would like to see what they have to say in regards to consortia and DE.

Thank you again
Delecia
Re: The vulnerability debate-can new DTUs survive?
Hello Delecia: in case you can't here are their inhibitors (along with those provided by Michael Neil [This is from my PhD thesis]:

More widely, Neil (1981: 172-6) and Moran and Mugridge (1993: xiii, 5, 9-10; 152-7) have identified a range of factors inhibiting collaboration. These include the existence of cultural differences between institutions; traditions of institutional autonomy; the 'Not Invented Here' syndrome; poorly constituted collaborative objectives; a failure to articulate mutual benefits; lack of clarity in specifying the terms of an agreement; incompatible organisational structures and administrative procedures; inadequate funds to implement an agreement; poor interpersonal relations between those involved in collaboration; weak leadership; lack of any real commitment on the part of one or more of the parties to making the agreement work; and lack of trust.

References
Moran, L. amd Mugridge, I. (1993) Collaboration in distance education. International case studies, London, Routledge.

Neil, M. (1981) Education of adults at a distance. A report of the Open University's tenth anniversary conference, London, Kogan Page

Greville

To Greville: dashes (7.4.1)
Greville,
You write "incidentally my dashes translate as question marks when I input to Webtycho". You can do the following: Go to Options/Account preferences (upper right navigation pane). Scroll down to 'Select classroom settings' and enable the 'Text formatting editor'. This would not only deal with the quotation marks problem but would provide you the standard text formatting tools you are used to in Word.
Regards
Thomas
Re: To Thomas: thanks

Thanks Thomas
Back to Grenville - Whats in it for me?
Greenville, you wrote"Why do consortium fail. Because there is not enough in it for the partners. Why would you let the e-uni in the UK cream off money as a middleman when you could be doing it yourself under your own, better known name. Why does the National Technological University in the US work - because its win-win for companies who put their workers in as students, the providing universities (they get money for almost no effort), the professors who teach (they get more money), the NTU which is a small HQ so not costly, and for the students who get masters from leading engineering colleges. On corsotia in DE, see Louise Moran and I Mugridge - a bit old now but useful points in it."

At some other point you mention the 80/20 rule which seems to continue to be sucha universal rule of life. Here you mention the "whats in it for me" rule that also seems to be universally true. If organizations or individuals do not perceive value in the investment of their time and intellectual efforts, they may not participate at all or if they do participate it will not be their best effort. It really takes a clear undertanding from all parties involved of the benefits for each party.

Dan

Re: Back to Grenville - Whats in it for me?

We are agreed Dan
Greville

Re: The vulnerability debate: Scale and Scope
Professor Rumble,

First of all, welcome and it is a pleasure to have you here in our class. The "Papers and Debates" book presented some very interesting reading. Here I would like to bring up the scale and scope topic that Thomas posted in this thread (although more interesting for me is the DMU topic which I would like to discuss later and will post in this conference in the next day or two).

In your "Competitive Vulnerability" article, you state, and also cite Perry, that a drawback to DTU's economic efficiency is a limited range of subjects. Thomas comments in this thread that increasing the range of course offerings can fragment enrollment, eroding the cost efficiency of a DTU.

Keegan argues against this citing Ilyin on the USSR DTUs providing specialized honors degrees and doctorates for decades, indicating that DTUs are capable of providing a wide range of courses without losing cost efficiency. Your reply (chapter 9) to the responses of your original article did not address this specific issue.

As these articles were written 10 to 12 years prior to the publication of "Papers and Debates", do you still see expanding course offerings fragmenting enrollment and eroding the cost efficiency of a DTU? If so, could you explain a bit further? I am not sure I understand how expanding course offerings will fragment enrollment. Additional course offereings would most likely equate to additional departments or faculties. Properly managed, it seems course expansion could maintain cost efficiency. However, I also see a greater advantage of expanding a DTU into a DMU, of which I will hold off additional discussion of this topic until later.

Thank you for your time!

Warm regards
Gary
Re: The vulnerability debate: Scale and Scope
hi Gary

Remember that one is talking about three things: (1) students enrolled in an institution; (2) students following a subject (they may be formally enrolled on a degree course leading a bachelor's degree in X, or a master's degree in Y, or they may just be enrolled as at the UKOU on the undergraduate bachelor's programme with almost complete freedom to choose courses from whever they want in the undergraduate course options, so you could get a student who takes level 100 social science introduction, level 200 sociology, politics, statistics (from maths), level 300 earth sciences because of interest, literature ditto, and politics. In fact most UKOU students choose courses from within a single faculty, so their degree will be cross disciplinary within the faculty - e.g. in Arts Faculty, Literature, religion, Philosophy, History, Art History, Music; in Math, Pure Math, Statistics, Computing.); (3) finally on a course or module within the subject, e.g. The Nineteenth Century Novel, Challenging Ideas in Mental Health, etc.)

Now putting on a new subject - say, adding Business Studies, will tend to increase the numbers coming into the institution, because you attract a new market sector; but putting on a new option, say Death and Dying, or Post Colonial Literatures in English, will not radically change numbers on the subject; so say you have 3000 literature students in total and 4 option - average 500; add a course and its average 400 ... and so on

What the OU has found with its 150,000 students now, is that the 20:80 rule more or less applies: i.e. 80% of the students are on 20% of the courses, so you have a handful of courses with big populations of several thousands, and a number with respectable populations, but you also have many courses with small populations, including when I once did the figures several with less than 100. If you invest in similar quality materials for all the courses, you are spending a lot of money on few students. In effect a few courses carry a lot of uneconomic ones, that are offered because (a) they are part of a full degree course, and (b) they attract people with specific interests to take the whole degree.

Of course, that is why some courses are project based - and have few materials, more commercial text books that students buy, etc. - and BECAUSE THEY HAVE FEW STUDENTS ON THEM, more interaction and possibly more high cost assessment. (In effect these courses then have a totally different cost structure, more like, say, a US e- learning course.)

I will accept Keegan's point about the Russian DTUs, and I did not comment because I did not know enough about them; but here are some possible points.

a) their modules are smaller, so it looks like they have more choices - imagine if you broke Modern Art 1900-2000 which takes 500 hours to study into: Fauvism, Blue Rider group, Constructivism, Cubism, Dada, Surrealism, Mondrian and abstraction, Pop Art, Abstract Impressionism, Minimalism, Body Art, Happenings and related art forms, etc etc ... unless you know what a course means, you can't say wwhether Keegan is right.
b) in a command economy you can just do things, irrespective of the market. So its uneconomic, so what, you put the money in to course development.
c) in a country of 200 million people, you can do more than in a country of 40 million - you would need to look at the economics, the 80:20 rule as it applies in a bigger market. It would make a big difference if you very big courses had say 20,000 students rather than the 6000 that the UKOU's big courses have ... the whole scale is a little different ... maybe you could afford more options.

Greville
Re: The vulnerability debate: Scale and Scope
Prof. Rumble,

If I understand correctly, there are essentially two ways to determine or estimate whether or not efficiency is eroded based on course offerings. One is to average the student enrollment in a program over the number of courses in that program of study. Another is through statistical analysis of past enrollments, your 20:80 rule at the OUUK. This analysis can be used to help in determining whether to start up a new course or program offering. Is this correct?

This issue also seems to be problematic is some cases as you note in your response. Some courses will naturally erode efficiency due to the necessity to have that course as a part of a degree program. On page 127 and 128 of "Cost and Economics ?", you cite Laidlaw and Layard's study on the OUUK concerning student course enrollments, the break-even point and the justification for some courses based on their necessity in a degree program. Laidlaw and Layard essentially present this same information as I read through the 1974 Higher Education article you cited.

What we have learned so far in this class is pretty basic. In essence, there is quite a bit of work that goes into cost analysis in order to determine whether a program or course is to be produced and made available to students.

Thank you for your response.

Warm regards,

Gary
Re: The vulnerability debate: Scale and Scope
Hello Gary

Q1: If I understand correctly, there are essentially two ways to determine or estimate whether or not efficiency is eroded based on course offerings. One is to average the student enrollment in a program over the number of courses in that program of study. Another is through statistical analysis of past enrollments, your 20:80 rule at the OUUK. This analysis can be used to help in determining whether to start up a new course or program offering. Is this correct?

A1a. Well, I'm not sure that I follow you: efficiency would be more students for the same input of money, say - so you would measure it not by absolute enrolments on course A vs course B, but on average cost of an enrolment on course A vs course B.

A1b: As a general rule of thumb in patterns of product purchase, one finds that there are products that dominate markets and there are products that relatively few people buy. This would be true I guess of CDs, downloaded music, cameras, etc. etc. A rule of thumb on enrolments would say that if you count the produc (courses) offered on the market, you'll find that 80% of enrolments (student-courses, not heads) are on 20% of the courses. So the question then is, in terms of efficiency in your course offering, could you 'get away' with cutting some of those unpopular course offerings.


Q2: This issue also seems to be problematic is some cases as you note in your response. Some courses will naturally erode efficiency due to the necessity to have that course as a part of a degree program. On page 127 and 128 of "Cost and Economics ?", you cite Laidlaw and Layard's study on the OUUK concerning student course enrollments, the break-even point and the justification for some courses based on their necessity in a degree program. Laidlaw and Layard essentially present this same information as I read through the 1974 Higher Education article you cited.

Q2. Yes.

Q3. What we have learned so far in this class is pretty basic. In essence, there is quite a bit of work that goes into cost analysis in order to determine whether a program or course is to be produced and made available to students.

Q3. It is basic - most accountancy is 'basic' but in the end it comes back to three things, I think: (1) The first is, as someone in business do you know whether you are getting more money in than you are spending out - as Charles Dickens' character Mr McCorber said in the days when the UK had a currency based on 12 pennies = 1 shilling, and 20 shillings = one pound, gain 20 shillings and sixpence for every pound and the result is happiness, gain nineteen shillings and sixpence and the result is misery; (2) The second is, are you reflecting the proper worth of the enterprise to investers so they can decide whether to buy shares in the company? (3) and the third is about decision making and the direction of the firm - should you invest in yechnology, or not; should you introduce a new product or not; are you in better shape than your competitors, and if not does it matter? On such things rest economic health, jobs, and so on.

Greville
Future influences on competitiveness
The foundation for the arguments concerning the competitive position of CBU's (campus based universties), DMU's (dual-mode universities), and DTU's (distance teaching universities) rests on a number of assumptions that may soon diminish in importance or disappear altogether. These include the following:
    • Students must obtain their education from a single source to qualify for a degree.
    • Faculty are associated primarily with one institution.
    • An antiquated pricing and value structure.

    • Students must obtain their education from a single source to qualify for a degree (although a limited number of transfer credits are usually allowed). CBU's offer a much larger range of courses, while DTU's can attract students who cannot attend a CBU.
While an organization such as the SUNY (State University of New York) Learning Network http://sln.suny.edu/ provides access to over 4,000 courses, one must still be registered at a home campus from which a degree is obtained. While the SLN can facilitate the transfer of credits earned in a course originating from another campus, this is not guaranteed.
The logical next step would be for SUNY (a comprehensive state university system which includes graduate schools, 4- year colleges, community colleges, and technical schools) to set up a state- wide course catalogue and registration system, and treat the entire system as one large university. This would allow SUNY to award degrees based on a portfolio of learning acquired from any of the 64 SUNY institutions.
Eventually, organizations will emerge that will provide (or at least certify) academic credit for courses taken at accredited institutions anywhere in the country, continent, or the world.
It is likely that many institutions within the system would develop their own niche programs: one campus might abandon a marginal program in anthropology, and focus more on criminal justice. As a result, the constituent colleges of the system could become more efficient by specializing, no longer having to carry the burden of courses that do not attract many students or that cannot be done well. The effect of such a change is that the competition would shift from the institutional level to the program and individual course level. Why would I take a philosophy course from Marginal State U. if I could take it from Exceptional State U.?
    • Faculty are associated primarily with one institution. In the new educational order, a faculty member need not be stuck teaching courses outside of his or her specialty or area of interest simply because there are not enough students at his or her particular institution who can take the course at the time it is scheduled--and students interested in a particular specialty are not stuck learning it from someone whose primary interest and expertise is in another area. As a result, competition also shifts from the institutional level to the level of the professoriate. If I wanted to study extensively under Prof. Rumble or Peters, I could take their courses without having to suffer others at their home institutions.
From this, I could foresee individual academics banding together to create programs of high quality. They would have greater academic freedom, and could even assume the role of "free agents"--perhaps contracting with educational publishers to provide the support to produce their course materials. Of course, this is exactly what happens now on a limited scale--but imagine if a group of Harvard business professors banded together to market the Harvard Business School curriculum (with royalties to Harvard, of course, for the use of its name)--to compete with the University of Chicago people at Cardean!
And of course, there will be little to prevent US institutions from outsourcing course design and delivery to other countries with highly- qualified (but less expensive) educators!
    • An antiquated pricing and value structure. Online programs in DMU's--which most American universities have become, according to a Sloan Foundation report-- are currently hampered by the pricing structure of the past, which is based on a fixed geographic location and a single price for each academic credit, regardless of the cost (or value to the student) of the course. For example, UMUC's online programs cannot compete for distance learners from other states or countries because courses are priced based on Maryland state residency. Highly-subsidized higher education overseas makes U.S. tuition unaffordable to all but a few.
Eventually, market pricing will come into play. Just as an airliner is filled with passengers who have paid different prices for their seats, I can see that educational institutions will provide price incentives to fill empty seats-- perhaps even offering "frequent- learner" tuition credits. This variable pricing structure already happens when a corporation makes a deal to send a group of students to an institution at a discount from the regular tuition rates. U21 Global has tuition rates that vary depending on the student's country of origin (with the highest rates charged to US students, of course).
Like the airlines, I see educational institutions cutting out unprofitable courses (abandoning them to the "niche" providers), and competing aggressively on the most popular and profitable areas. We may see universities "selling off" whole departments in order to acquire others that are more in line with their mission and economic goals.
From an economic standpoint, then, the value of human capital will need to be assessed. Furthermore, the investment that an institution has made in an individual course or a complete program (in both tangible and human resources) will become less important than its economic value, measured by its ability to generate income.
Re: Future influences on competitiveness
Hello Alan

Personnally I think that that is a great contribution to this debate.

1. Students must obtain their education from a single source to qualify for a degree (although a limited number of transfer credits are usually allowed). CBU's offer a much larger range of courses, while DTU's can attract students who cannot attend a CBU.

a. the throw-away line at the end of my competitive article - DTUs best option would be to become DMUs, was my preferred option and still is;

b. amalgamations and mergers and collaborative ventures are much more important now (though they seem still to be unstable - see some of the other postings we have had). Collaboration though is a competitive strategy.

c. Credit transfer structures are widespread - persuading institutions to allow their students to move around is much more difficult. IF and when credit transfer structures also set the rules about what constitutes a degree (number of credits at level 1, level 2, level 3 etc and imposes that on colleges, and then allows individuals to mix and match, then you'll get more fluid movement between institutions - whose degree do you get? does it matter? could you link your degree to the people you studies under? Possibly ... if the professor is high profile enough.

2. Faculty are associated primarily with one institution.

a. In the UK higher education is after the building / construction industry, catering and allied trades such as hotel maids etc; and acting; the industry with the highest number of casualised workers in the country. So many academics already have portfolio jobs made up of contracts here and there - as indeed I do now (current contracts World Bank, UNESCO, CfBT consulting, U of Oldenburg). None of these have any security longterm.

b. the net provides considerable possibilities. You might be interested in the attached paper (at least parts of it towards the end) which I first wrote up as a conference paper in 1988 and then as an article: Greville Rumble. 1998. Academic work in the Information Age. A speculative essay. Journal of Information Technology in Teacher Education, 7 (1), 129- 45. For me getting your name known, and the breaking the monopoly power over degree awarding without compromising quality, are key issues.


3. An antiquated pricing and value structure.

a. Agreed: there are signs in some places that it is breaking down.

Greville



ACADEMIC WORK IN THE INFORMATION AGE: A SPECULATIVE ESSAY


Greville Rumble
The Open University




Both campus-based universities and distance teaching universities are highly bureaucratised organisations that have eroded the traditional autonomy of the academic and created environments in which education is de-humanised. Developments in telecommunications and computer-based communications open up the possibility of creating new forms of interactive universities that can operate globally, irrespective of the place of abode of either students or staff. Exploiting these possibilities to advantage will require the development of new social relations, and in particular of different cash relationships between academics, students, and validating or licensing authorities that will, in many ways, mirror the artisanal organisation of the twelfth century university. Such interactive universities will, however, be well suited to meet the lifelong learning needs of mobile knowledge workers.

The Costs and Economics of Open and Distance Learning, was published in 1997.

These generational shifts in distance education have been equated with particular modes of production: first and second generation distance education has been characterised as an industrialised mode of production while third generation systems are seen as opening up the possibility of developing flexible post-Fordist modes of production. The strength with which this link is asserted suggests an element of technological determinism in the views of distance educators. While technology clearly is a factor in the organisation of work in technology-based educational systems, the organisation and control of work are also determined by social factors and by conceptions about the impact of size and the need for economies of scale on organisational structures. This is true both in respect of the history of distance education and with regard to its future. The organisational forms that we have could be different if people wanted them to be. One way of approaching these issues is to situate the debate within the discourse of industrial sociology, and in particular the issues around the industrialisation of education.



The industrialisation of teaching


Traditionally the work of academics has involved teaching, research and administration. It is clear that their work has changed markedly in response to a number of factors: the shift from an elite to a mass higher education system; the growth of team teaching, requiring co-ordination and joint-decision making rather than individual academic autonomy; increased emphasis on the need to be responsive to the market; increased entrepreneurialism, including the exploitation of intellectual property rights and patents and the rise of academic-related business; the increased intervention of the State with its concern for value for money, efficiency, and quality; the increased complexity of administration, resulting in the rise of a professional managerial class in higher education; and increasingly successful attempt to split teaching and research.


Until quite recently the academic labour market was essentially that of a craft industry in which the worker (academic) directly controlled the process of work (Rumble, 1981: 181; Peters, 1983: 96). But traditional forms of higher education have changed, as Halsey (1995) reminds us. The craft-based approach exemplified by the Oxbridge tutorial system in which 'one of the tutors was responsible for examining the needs of individual students, suggesting the tutorials and seminars which they should attend and advising on reading lists and the whole pattern of study towards a degree' (Sewart, 1992: 230) could not survive the massification of higher education. Marginson (1995: 34) comments on the loss of individual autonomy of academics working in traditional institutions. Miller (1995: 57) sees 'degrees of deskilling, degradation through loss of status and some loss of control [over the labour process]', so that, for example, higher education in the United Kingdom has been subject to 'similar processes happening to the academic labour process as Braverman [1974] asserts has been happening to skilled craft labour in his analysis of capitalism in the twentieth century' (Miller, 1991: 133). Shumar (1995: 84) believes that 'the university increasingly follows a factory model where scholars are labourers in the sweatshop of thought'. Miller (1995: 50, 53-4), Buckbinder and Rajagopal (1995: 61, 70) and Shumar (1995: 89-92) all point to the increased managerialism of higher education and the proletarianisation of the academic profession. Ritzer (1993: 55-7, 73-7, 115-6, 141-2) holds that in the United States education, including higher education, has been subjected to a process of 'McDonaldisation' marked by 'the culmination of a series of rationalisation processes that have been occurring throughout the twentieth century' that are best exemplified in the practices of the McDonalds fast food chain (Ritzer, 1993: 31-2). Ritzer's McDonaldisation thesis is situated in Weber's theory of rationalisation: analysing universities he points (pp. 55-7, 73-7, 115-6, 141-2) to the pressures for efficiency (larger classes, reliance on resource-based learning and particularly customised textbooks, use of machine-graded multiple choice questions for assessment), calculability (use of Grade Point Averages to summarise in one figure a student's achievement, quantified examinations to filter applicants, student rating forms to evaluate professors), predictability (imposed by the format and grading of multiple choice questions, thus eliminating subjective judgement on the part of professors), control (training students to accept highly rationalised procedures such as objective testing, timed lesson plans, the definition of what is to be taught in particular lessons), and as an outcome, the growth of irrationality with many staff and students put off by 'the huge factory-like atmosphere of these universities' where education can be 'a de- humanising experience' in which it is difficult for students to get to know other students and virtually impossible for them to know their professors (pp. 141- 2).


In organisational terms this reflects the shift from a communal model of organisation based on personal relationships (including partnerships, federations, and craft networks) to a bureaucracy based on the rational definition of office. The nineteenth century emergence of bureaucracy was inevitable because, in situations where communication travels up and down hierarchies it is a much better system for organising large numbers of people in the pursuit of goals. By the late nineteenth century it had emerged as the clear organisational winner in the civil service, in large firms, in the armed forces and in schools (Hamilton, 1989: 139). Traditional universities only began to be significantly affected by this trend in the latter half of the twentieth century as they began to grow bigger.


In contrast to traditional education, distance education (other than very small systems which can be run as craft enterprises) has for many years been regarded as an industrialised process. Peters, in his early writings (Peters 1967, 1973, 1983) argued that all distance education is an industrialised form of education involving such characteristics of Weberian bureaucracy as rationalisation, the division of labour, increased managerialism, the loss of labour power, increased mechanisation, the use of capital intensive technology, and an assembly line approach to production. Rationalisation involves careful analysis of the entire production process, planning and specifying each work process to ensure efficient and effective contribution towards the achievement of business aims. In distance education this involves a redefinition of the labour process such that the integrated craft of teaching is broken up into constituent parts. Generally speaking, the overall task can be divided into at least six distinct phases which could be undertaken by separate people: curriculum design (specifying what is to be taught), instructional design (saying how it is to be taught), content preparation (authoring teaching materials), tutorial backup (supporting students with subject-based problems and learning difficulties), continuous assessment (involving both evaluation and teaching through feedback on assignments), and examination. There are a number of reasons for this division of labour. It takes longer to design and develop one hour's worth of student learning taught by print or broadcasting or computer assisted learning technologies than it does to prepare a one hour seminar or lecture, so any course covering a sizeable curriculum requires several and perhaps many academics working in a team to develop it. Smaller modular courses, of from 30 to 50 hours of student learning, may of course be developed by a single academic. Also, the use of materials enables very large numbers of students to enrol on a course, requiring the appointment of a team of academics to mark assignments and examination scripts and perhaps conduct local tutorials. As a result the teaching process is often divided between many people - one group that designs and writes the materials and another that tutors and assesses the students.


Teaching students at a distance cannot be done without the use of technologies to deliver media such as text, audio, video, computing. Many of the technologies require production expertise that academics lack so that production becomes a team activity involving professionals and technical staff from a range of industries (broadcasting, print, computing, etc.). This adds to the fractured complexity of the labour process. However, it also changes the nature of the lesson from something that, however well- planned in advance, is essentially subject to the exigencies of the moment within the classroom, to something that is a standardised product that can be delivered to theoretically unlimited numbers of students. As Peters's comments (1983: 99), 'the rationalisation effect of mass production becomes apparent here'. Similarly, Lewis's work on the planning and scheduling of course production at the UK Open University showed how rationalised and planned the process of production could be (Lewis, 1971a, 1971b); different institutions approach the development and production task differently, with some employing a chain approach in which work is passed from one person to the next in line, as on an assembly line; others using teams of academics, editors, producers, etc. On the delivery side, the number of tutorials are defined and their pacing pre-determined by course calendars; tutors on some courses are given detailed course notes suggesting topics and approaches for tutorials; assessment is standardised as much as possible through marking schemes; and tutors are told how to comment on scripts. The emphasis on planning, the formalisation and standardisation of processes and procedures, and the organisation of activities, underlines the Weberian characteristics of distance education.


The division of labour - and the need to plan and control the production and delivery processes - means that the individual academic no longer controls the whole process of teaching (Rumble, 1981: 182). This reduces the autonomy of the individual academic to decide how courses will be taught and assessed - the decision-making powers often passing to administrative staff and committees. Distance teaching universities are characterised by the strength and power of the committees controlling academic processes. As a direct result some commentators have seen a process of academic de- skilling and loss of labour power associated with the division of labour and the rise of managerialism in distance education (Peters, 1983: 100-5, 108; Peters, 1989: 5; Campion and Renner, 1992: 10, Raggett, 1993: 25-7). The extent of this de-skilling is disputed, though there is general agreement that those who just tutor and mark assignments and scripts have narrower, less skilled jobs. On the other hand, many of the academics responsible for designing courses have  acquired some of the production skills previously held by specialist professional producers. This may account for the enthusiastic support some academics give 'instructional design' and distance education (Campion and Renner, 1995: 81). Certainly, highly specialised workers often have considerable levels of discretion over their work process (Child, 1984: 26-7). However, the disempowerment of academic labour has been increased recently by the search for market-generated income, so that what academics do is determined by their institutions and the requirement to bring in money, at the expense of non-market directed activity, diversity and innovation on the one hand, and the individual autonomy of the academic on the other (Marginson, 1995: 32-6).


Mechanisation enables many thousands of standardised teaching packages to be produced. Indeed, distance education lends itself to mass production but, as Peters (1983: 102) points out, mass production is only possible 'where there is a sufficiently large "mass of consumers"'. Attempting to meet demand, traditional universities have increased the size of their teaching groups so that 'today's practice of applying methods designed for small groups to large groups must be seen as a perversion of an educational concept' (ibid.: 102). Distance education achieves the same end through different means.

The intermediate product of this process is the teaching package which is the main vehicle for teaching students; the final product is a student who has been taught. The more the nature of the product is pre- determined, and the processes governing its development and production standardised and formalised, the more the production process as a whole loses its subjective element, and the more the craft-like nature of the process is objectified (Peters, 1983: 108). In distance education the scope of individual teachers to follow their own inclinations, to digress, to change their methods, to adapt the content, is limited, pushed to the sidelines of an infrequent tutorial or marginal comment on an assessment script. What the student consumes is a standardised package. The student, though, is all too often a passive or minimalist consumer at that. Thus Harris (1987: 112-4) describes the fictional Open University student, Mr. Wavendon, a man who 'wanted a degree to consolidate his position as a teacher, even though he believed that degrees were now "devalued", because everyone in teaching now seemed to have one', and who takes an entirely instrumental approach to his studies, focusing exclusively on the assignments (where marks count towards passing the course) in which he tells the assessors 'exactly what they want to hear', and who manages to pass the course without ever entering into a dialogue with the content. In higher education, though, 'what is important is argument between people, unconstrained discussions that raise "validity claims" of several types, and which settle these claims only by the force of better argument' (ibid.: 142). For Harris, however, 'distance education on the OU pattern at least, is the only form of higher education specifically designed on any other basis than the democratic discussion' (p. 142). This is dangerous. As Ritzer (1998: 3) remarks, 'the functional rationalisation that would be associated with a process like McDonaldization poses a threat to substantial rationality, or the ability to think intelligently. ... That is, McDonaldized systems (through rules, regulations, scripts, and so on) do encroach upon, and ultimately threaten, the ability of those involved in them to think intelligently'.



From Bureaucratic to interactive, Post- Bureaucratic university structures


The bureaucratisation of academic work and the loss of individual autonomy has led commentators such as Campion and Renner (1992: 11) to argue the need for an alternative approach that will give academics greater control over their work. If academics are to regain control over the whole teaching- learning process then at least three things need to happen: First, the course modules must be small enough so that a single academic can develop them. The Open University's model of very large distance-taught modules requiring many hours of development time and hence large course teams divide the work up between too many people, leading to the need to vest control elsewhere. Second, the number of students studying the course must be no greater than one person can handle in terms of marking assignments, responding to mail, e-mails and telephone calls, and successfully moderating a computer conference. Third, control over the various administrative processes has to be devolved to (perhaps, given back to) the academic - who sets and marks the assignments, monitors the students' progress, and is responsible for updating students' records. It is here that third generation distance education systems come into their own.  The pedagogic payoff could be (at least, in the best of circumstances) that dialogue is placed once again at the heart of the educational process. Some commentators are now linking IT and constructivist theories of learning (e.g. Jones, 1995; Collis, 1996: 135) and collaborative communication patterns - suggesting that the payoff is there to be had.


By putting the user in direct contact with the prime service provider, the Internet has eliminated the need for any organisational intermediary between teacher and student. Individual academics can develop a curriculum and materials for an Internet based course and teach it from their own Web site. This is an electronic version of the way some of the early correspondence schools developed as one person bands. The main problems for the individual academic are, first, ensuring an organisational framework that allows them freedom with remuneration; second, establishing their reputation; third, publicising their course; and fourth, getting their course accredited. The Internet - by resolving these issues - provides opportunities for the evolution of a new kind of university that in some way parallels the emergence of the intellectual as an artisan in the twelfth century and of the corporate university in the thirteenth century.


The term intellectual, as used here, 'denotes those whose profession it was to think and share their thoughts' (Le Goff, 1993: 1). Such persons begin to be identifiable in the twelfth century as masters and students congregated in urban centres such as Paris, Chartres, Reims, Orleans; others, the goliardic or wandering clerks or vagabonds, exploiting the social mobility that characterised the age, moved from town to town. The town intellectuals of the twelfth century saw themselves as artisans, professional men whose function was to study and teach in schools that 'were workshops out of which ideas, like merchandise, were exported' (ibid: 62). Some time in the twelfth century, these intellectual artisans began to organise themselves within corporations or colleges of masters and students, out of which the universities developed. 


The universities that emerged from this process were essentially ecclesiastical corporations whose goal was a local monopoly - secured through the right to confer university degrees. Although practices varied, the examination process was usually a staged process, broken down into two major parts, the first leading to the conferment of the bachelor's degree, the second to the conferment of a licence to teach (the master's degree) (Le Goff, 1993: 77-9). Once embarked on a career as a master, the intellectual faced a practical problem: how to live. Masters were paid from two sources: salaries and stipends. Salaries, reflecting the master's position as a worker, were derived from on the one hand the master's students and on the other the civil authorities. Stipends or scholarships were gifts from private benefactors, public organisations and civil authorities. These different options, as Le Goff (1993: 93) shows, had important consequences: 'If a master received a salary, he could be a merchant, if his students paid him; or a functionary, if he were remunerated by the communal or princely powers; or a sort of domestic, if he lived off the generosity of a benefactor'. Masters who lived off the money they were paid by their students had the advantage that they were free of temporal and ecclesiastical powers and private patrons: 'This solution seemed natural to them for it conformed the most with the habits of the urban workplace of which they considered themselves to be members. Masters sold their knowledge and instruction the way artisans sold their wares' (Le Goff, 1993: 94).


Current technological developments in telecommunications and computing, coupled with developments in the labour market, have opened up opportunities for academics to redefine their relationship with the university in ways that parallel the relationship between the twelfth and thirteenth century university and the intellectual. At the technological level these developments include:

•      advances in telecommunications and computing and the development of information technologies
•      the installation of information and communications platforms which allow everyone in an enterprise to be linked both to a common source of organisational memory and to each other
•      the existence of personal, portable technologies allowing mobile tele-working

which enable academics to break physically with the university. Like their students they can work at a distance from their university.


The organisational framework within which such people work is very different from the highly bureaucratised world of the late twentieth century university. Organisational analysts such as Heckscher (1994) believe that we are witnessing the emergence of new organisational forms - the post- bureaucratic organisation. Heckscher suggests that the best analogies for post-bureaucratic organisations are the organisation of science (where people and projects are selected with great efficiency through formalised peer review processes) and the professions. Such organisations differ from bureaucracies in that, whereas in a bureaucracy with its rational definition of office and hence of work, 'people are responsible only for their own jobs' (Heckscher, 1994: 20), the key to post- bureaucratic organisations is 'an organisation in which everyone takes responsibility for the success of the whole' and in which the relationships between people 'are determined by problems rather than predetermined by structures' (ibid, p. 24).


Modern telecommunication and information technologies enable communication to take place in spite of personal mobility, the distance between people, and time differences in their availability. In the context of emerging third generation distance education systems and virtual universities and colleges, the technological framework requires individuals to have access to the Internet from wherever they happen to be, but most importantly from their homes. This becomes the platform upon which:

•      students and teachers can communicate with each other and with other students and other tutors, one-to-one or within any defined group, on a global basis
•      students and tutors can access electronically stored resources on a global basis. . 
•      students and tutors can access information, advice, and administrative and support services

Developments in telecommunications and computing thus offer opportunities for networked interaction. Building on traditional academic values that mesh well with the values of post-bureaucratic organisations, this provides the basis for the emergence of a new kind of university. Borrowing from Heckscher's preferred term, the interactive organisation (Heckscher, 1994: 24), I call this the interactive university.


We can begin to see inklings of what might be in some of the new computer mediated communications (CMC) based courses that are coming on stream, and in organisations like the Global Network Academy (providing postgraduate courses over the Internet), the Diversity University (a MOO or Multi-user Object Oriented based system delivering courses and providing an environment for informal personal interaction), and the GENII Lab School (an on-line teacher training centre). Such systems link CMC- based environments with electronic library environments providing access to course materials. CMC provides a basis for interactive communication between students, those who are tutoring them, those who create the learning materials, and those who manage and administer the system. But there are other changes of a structural kind: The Global Network Academy initially had a very small core of permanent staff who took the decisions while depending on volunteers to offer courses based on hypertext-based libraries accessed through the Internet, with an on-line library and an index of experts whom students could consult. In late 1994, however, GNA was re-organised into a consortium of different schools - chartered on a variety of administrative and financial platforms (Hall, 1994).


Clear organisational patterns are hard to detect. However, the real key to progress may be in the emergence of new financial relationships between teacher, student and university. What follows is speculative - a vision of what an interactive university might look like. The technology is important because it provides a framework for the rest. Individual academics can create an electronic course and put it up on the Internet. The global reach of the Net means that they can live at a distance from the university. In other words, just as first and second generation distance education liberated students from the need to live near the university, but required academics to continue to do so if they were to play a significant part in the development of courseware and the governance of the institution, so now third generation distance education systems enable academics to break away from the university. 


The fact that the individual academic can put their own course up on the Internet is also important. Potentially, we have the modern day equivalent of the twelfth century goliardic or wandering scholar, a global artisan in the knowledge industry, able to publish on the Internet and attracting students who wish to learn from them. Moreover, like their forebears who saw themselves as artisans in workshops for ideas, so academics exploiting the Internet can operate in a society geared to consumerism.


The main difficulties faced by the academic were mentioned earlier: first, ensuring an organisational framework that allows them freedom with remuneration; second, establishing their reputation; third, publicising their course; and fourth, getting their course accredited. The first problem is the most interesting one. One model might be to develop a community of partners (academics) licensed to teach by the university. Students wishing to take their course would be assigned to them rather as lawyers working in a chambers are given cases. The success of the 'chambers' as a whole would be everyone's responsibility - thus reinforcing the post-bureaucratic nature of the relationship between the individual teacher and the university. Within this structure the individual academic would then be responsible for preparing the students towards the examinations. Individual academics would have the flexibility to choose how many courses they teach and how many students they support. This flexibility would enable them to undertake other, perhaps more highly paid work as symbolic analysts (c.f. Reich, 1991: 177-9, 182- 4). This would have the advantage that their practical experience in the world of work would feed back into their courses.


The other problems are easily solved. While there will always be some academics who have an international reputation and who are able to offer courses on the Internet and make money from it, the majority will need to work through an organisation that can in essence guarantee their status as a teacher. This would be solved by having a system that licenses someone as a university teacher. The licence might be granted by the university itself or by an external authority. The third problem (of publicising the course) is a technical matter, though the success in publicising courses may well depend on the reputation of the university as much as that of the individual academic. The final problem (of accreditation) also rests with the university as a body licensed to approve courses and grant degrees.


The central function of an interactive university is thus to provide would-be learners with opportunities to engage in the study of courses towards a degree and to validate their learning. Many students, perhaps the majority, will be in employment and highly mobile and they will expect to be able to continue to study when they move within a jurisdiction or between jurisdictions. Computer Mediated Communications-based courses using the new Knowledge Media will support these students on a global basis. The global reach of such courses will enable universities (as many already do) to enrol students irrespective of the jurisdiction where they are resident. Because students may wish to move between universities, carrying their accumulated credits with them, there will be pressure for regional (e.g. Latin American) and global Credit Accumulation and Transfer (CAT) schemes. There will be some difficulties in doing this, because of the number and range of quality of institutions, and so there will be an increasing number of national and international validating bodies that help (enable) students to package their credits into meaningful awards of assured quality. Whether an institution's credits are recognised or not by a validating body may become a significant factor in access to the global education market.


Key to this structure is the way in which academics are paid and the way in which resources are generated. The final section looks at this issue.
.


Financing the interactive university


In the scenario outlined above the university is organised not so much around physical resources and their use, but around information, linking the progenitors of information with those that want to use it. The ethereal assets of the university and of its teachers become very important. For the purposes of definition


'an ethereal good  ... is one that is not tangible, not expropriable and can be copied easily, at a cost that is less than that of a bona fide version. .... It is not tangible, in that it cannot be touched. Nor is it expropriable in that, although I can get back what I gave you, you may have made copies: so just getting back what I gave you is no insurance that you no longer have it. Such a good is clearly appropriable, but never expropriable with certainty. It is these unusual characteristics that lead to the fundamental problems in dealing with ethereal goods, namely the problem of property rights and the difficulty of evaluation' (Thompson, 1982: 16)


As Thompson remarks, property rights and evaluation are closely linked: 'Property rights are only important when there is some value in the property' (ibid, p. 16). In first and second generation distance education systems the problem of ethereal goods did not arise because property rights over information were closely tied to the physical entities (books, records) that carried the information. It was these physical embodiments that were assigned value. In effect the information went along free. But technology, having initially made illegal copying much easier, has now cut the relationship between information and any physical embodiment in its carrier. The problem is thus both to protect what can be easily appropriated and to find ways of assigning value to it and collecting that value when it is used.


The University of South Australia exemplifies the problems (URL at January 1998: http://www.unisa.edu.au/flc/). Given the restrictions imposed by current copyright law, the University decided not to use third party material in its on-line courses because there can be no question of individual students making a copy under 'fair dealing' provisions (Moran, 1996). But even if there were no legal problems of this kind, there is a need to protect against indiscriminate copying and re-use of copyrighted materials. There are technical solutions to some of the issues raised: Protection can be afforded through encryption (scrambling documents), stenanography (preserving their integrity), and 'watermarking' (building in electronic traces to trace infringement). Another issue will be to ensure within an electronic environment that copyright owners are paid for use of their intellectual property. Direct billing on access to materials will solve the second issue. Indeed, electronic billing and payment methods will enable students to be charged for materials, ethereal good, and services, as the occasion demands.


What is interesting about these developments is that the money flows from the user to the originator of the information, goods or service. In an electronic interactive university this would be the equivalent of the twelfth century intellectual being paid direct by his students. The University also provides services - for example, brokering and examination services. These services need to be paid for too. Thus the university needs to charge students for central services. But the teacher is also getting something from the university: support in the form of publicising courses and finding students. Academics might also be 'charged' a percentage for these 'overhead' services. The various services would be paid for as they are consumed, with money flowing electronically from the student to the academic or the university, and even from the academic partner to the university 'chamber', as appropriate. These arrangements, once in force, would enable a much looser, interactive structure to develop. Academics would have regained greater control over their work. Both teachers and students might be involved part- time, with other jobs and responsibilities. Expansion and contraction would be easier.


Administratively, then, the university becomes a broker between the academic and the would be learner. Its functions would be:

•      to have an efficient (low cost), effective (responsive) logistical system that responds to would-be learners. Telephone and computer based services and advice lines will need to respond on a global basis, 24 hours a day.
•      to identify  and license teachers.   
•      to act as a broker between students interested in studying a subject, and academics willing to teach a subject - in effect putting the one in touch with the other.
•      to examine the students, or to put students forward for public examinations.
•      to provide a hub around which academics may work.

Could it happen? The technology is available. What is needed is the commitment to create the organisational structures, payment structures, and relationships, that will enable the post-bureaucratic university corporation to emerge. Such structures, reflecting the enabling function of the underlying technologies, and based upon a commitment to establish and maintain new social forms within the university, will be well suited to meeting the lifelong learning needs of the labour force, and most particularly those of highly mobile knowledge workers.

Even within the highly industrialised Open University, there are pointers to a way forward: the University's PGCE programme can be deconstructed into the constituent relationships of a student, a tutor, a licensing authority (the University), a school (within which the student does his or her practice), and a school-based mentor for the trainee. Students have to build up their portfolios, which are then assessed. In the National Extension College, students preparing themselves to take a London External degree can ask for tutorial support, which they pay for as they use it. Students and tutors negotiate the subject of the assignment. The College's job is to validate the tutor and put him or her in touch with the student. If the payment routes are not yet directly from the student to the tutor, some of the other ingredients in a networked approach to education are slotting into the place. Such models retain the advantages of flexibility that distance education has for the consumer, together with the freedom to opt out and find another teacher, yet put the academic back in control of the management of their relationships with their students. If the prospects of employment are uncertain, the conditions within which that work is exercised must be better than the alternative vision of a university articulated by Ritzer (1998) in his most recent book, The McDonaldization thesis, where he discusses universities within the context of the wider post-modern, consumerist, society. Universities, he says, are means to educational consumption (Ritzer, 1998: 151). He cites Levine (1993: 4) to the effect that all students want of higher education 'is simple procedures, good service, quality courses, and low costs'. In responding to such demands, universities will, he suggests, learn most by looking for answers among those who have successfully responded to consumerism (p. 153). This will include cost cutting (to reduce costs to students), the removal of barriers to success (though grade inflation and dumbing down in order to reduce failure), decentralisation to satellite campuses (to be nearer the student), use of technology (to provide home-based education) (Ritzer, 1998: 154-57). Credentialling will become much more important as a result, since it is this that will distinguish one consumer from another. To ensure uniformity across the satellite campuses, professors will be scripted and course content pre-determined. Courses will respond to student needs and wants, and not be part of a wider canon built into a curriculum (p. 158). Within this scenario, 'those who teach at McUniversity and its satellites are unlikely to be full- time tenured faculty members ... Most will be part- timers brought in to teach a course or two. Their pay, like that of employees of fast-food restaurants, will be low and their benefits few, if any' (ibid.: 158).

Virtual universities such as the Teacher's University, the Virtual On-line University, and the Mind Extension University are now being set up. Many of these approaches will also be McDonaldized. But there is a choice: it is possible to devise approaches based around constructivist models that will enable academics and students jointly to construct a curriculum and a path through learning, and that will leave the academic and the student in control of the relationship. The key will be to keep it small in order to maintain personal relationships between teacher and students. And herein lies a potential problem: such systems are likely to cost more because labour will be (relatively) expensive.




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Question on sucessful collaborations
In Alan and Greville?s discussion of possible future innovations in higher learning and distance education they include collaborations:

Greville writes: "b. amalgamations and mergers and collaborative ventures are much more important now (though they seem still to be unstable - see some of the other postings we have had). Collaboration though is a competitive strategy."

I would be interested to hear more about actual collaborations that are successful and what appears to be working for them and what does not. Thomas spoke a bit about the rates of exchange effecting salaries, more work less money.

And Alan wrote: "Eventually, organizations will emerge that will provide (or at least certify) academic credit for courses taken at accredited institutions anywhere in the country, continent, or the world."

Is this another layer of administration or third party certification? And who and how will this become acceptable? Who is the degree from? Is it true collaboration?

Here in the US back in the late '70's and early '80's there was a movement in State Universities to encompass all state funded schools under one umbrella -- a "State University System" -- or more irreverently called --Super U's. These were supposed, on a state level, to provide students with the ability to access campuses for their strengths. Core courses were to be designed and developed at one source and presented in a uniform manner. Most administrative and support facilities were to reside under one roof, thus creating needed economies for the state funding. Although most state systems still have remnants of this process it has been disintegrating from the early '90's on. Collaboration and credit exchanges were never considered quite equal. Even with in the same system collaborations were not particularly successful.

Perhaps there will be a point where market demand will drive CBUs, DMUs and DTUs to work with each other, but I see many problems in the way. First there needs to be a shift in society that removes the influence in branding and then there will need to be a change of thinking about or acquiescence to different levels of learning ( Rumble's level 1, level 2 etc.).

Is there anywhere a fully established open exchange collaboration (Yes I know UMUC and Oldenburg - but that is for one program only) where courses at any or all schools are equally acceptable? I thought that WGU was totally collaborative, but apparently not.

If there was, ideally this would allow institutions to develop their strengths and let their lowest 20% go. However, as any good marketer knows about the 20:80 rule -- The moment the bottom 20 is removed there is a change in dynamics that alters the successful 20. This doesn't mean not to lose the slow performers, it means there is a need to be agile enough to react to the changes.

Tea
Re: Question on sucessful collaborations
Cynthea:
while drinking early morning tea, though today I only started at 6am, not 5 like other days. Well, its Saturday so get a lie-in.

I would have thought that the best example of a successful collaboration was the National Technological University, which links companies (who enrol their staff as students), the NTU headwquarters, the most prestigious engineering schools in US universities, and the professors who work in them. Everyone gains something, and that is why the system works. When Europeans tried to emulate the NTU they failed - probably because the national differences in HE structures made it more difficult to work than the more or less common US credit structures.

You might like to skim the attached paper, Cynthea, which mentions consortia etc. Of course its a snapshot in time. Its reference is given below and this version may vary a little from the printed version.

Credit transfer: most institutions that give the degree demand that a proportion of the courses are their courses - say 60 to 70% at least, including most of the high level courses. So its a limited success only for flexibility.

Greville

ORGANISATIONAL MODELS FOR DISTANCE AND OPEN LEARNING

Greville Rumble
The Open University, UK

Colin Latchem
Open learning and educational development consultant, Australia


INTRODUCTION

This chapter examines the strengths and weaknesses of various organisational models used to provide distance and open learning and why these have emerged. It concludes by looking into the future and at the emergent structures for e-distance education.


ALL ON ITS OWN - the single mode option

In 1987, Perry and Rumble wrote A Short Guide to Distance Education and one of its chapters dealt with the question, ‘Which organisational model to choose’. Life was simpler then, and only three possibilities were considered:

  • single-mode institutions, founded to provide either face-to-face education or distance education;
  • dual-mode institutions, designed to teach both on- and off-campus; and
  • distance education consortia of educational, publishing, broadcasting and other organisations.

The authors concluded that:

  • single-mode distance education systems ‘have a first loyalty to distance education’, battle against scepticism to achieve real standards and professionalism in distance education, are expensive to develop and therefore need to be big to achieve economies of scale;
  • dual-mode institutions in theory offer courses of exactly the same standards on- and off-campus, but in practice have to overcome many difficulties to do this (not least the lower level of interest that academics often demonstrated towards the demands of their off-campus students, and the lower status accorded the distance operation within a traditional institution); and
  • consortia ‘are a splendid idea which all too seldom work in practice’.

The arguments for single-mode distance education institutions stem partly from the history of distance education, partly from beliefs in their inherent superiority, and partly from arguments about economies of scale.

The first distance teaching organisations – the commercial correspondence schools dating from about 1840 when Pitman’s correspondence school for the teaching of shorthand was established – were single-mode institutions, created to provide training for those entering the expanding commercial and business world of 19th century Europe and America. The correspondence schools were run essentially as businesses and many pursued profit at the expense of quality. Students paid all or most of their fees up-front, tutors were paid on a piecework basis, and high dropout rates coupled with up-front payments maximised profits from what the industry called ‘drop-out money’ (Noble, 2000: 15). Of course, some commercial colleges were concerned to deliver on quality, and by the early 20th century voluntary regulation came into being with the foundation of the National University Extension Association (1915) and National Home Study Association (1926) in the US and similar bodies in Europe. However, poor quality ‘correspondence education’ gave the business a bad name and as a consequence, when the British Open University was first proposed, it met with considerable scepticism (Perry, 1976: 18-9, 32-3) as did the start-up of, for example, the Bangladesh Open University (Shamsher Ali, 1997: 153) and the Open University of Hong Kong (Boshier & Pratt, 1997).

Concern for the quality of single-mode institutions leads some to suggest that standards are better maintained within a dual-mode setting, as discussed below. However, in a number of jurisdictions across the globe, as for example Perry (1976: 5) noted of the United Kingdom, and Leibbrandt (1997: 102) of the Netherlands, traditional institutions were originally extremely reluctant to teach adults (one of the main markets for distance education), or engage with distance education. Setting up new institutions thus proved to be an effective strategy for bypassing intransigent traditional institutions, although their success was always dependent upon strong political backing (Dodd & Rumble, 1984). As Hanna & Associates (2000: 134) observes, most of the open universities were established by national governments to serve goals that were more immediately political and overtly developmental than the other models of open and distance education. For example, establishing a single-mode open university:

  • does away with the need to push change through traditional institutions which, as Lewis (1994), Bashir (1998), Lueddeke (1998), and Ellis (2000) show, requires institutions to rethink their priorities and change their cultures;
  • means that there is no ‘wasteful duplication of effort and resources through co-operation and collaboration’, which was the concern of the British Columbia Minister of Education when setting up the Open Learning Institute of BC (Ellis, 1997: 87);
  • means that there is no need to ‘bring together institutions differing in so many ways in their traditions, regional interests and political experiences under a national umbrella organisation which still has to be tried and tested’ – a course of action that the Minister of Higher Education and Research, in the government of North-Rhine-Westphalia that set up the FernUniversität, did not believe could work (Peters, 1997: 57).

Throughout the 1970s and early 1980s, writers such as Peters (1973: 310; 1983), Perry (1976: 55), Daniel and Smith (1979: 64), and Snowden and Daniel (1980), argued that the administrative structures of conventional institutions were not best suited for the development and management of distance education. The view was that distance education systems involved a number of quasi- industrial processes and that the best results would be obtained where the corporate culture encouraged adherence to production schedules, and where academics and managers understood the very different cost structures and hence budgetary needs of distance teaching methods. Strong arguments were also advanced that the needs of part-time, adult students were better served through institutions teaching wholly at a distance. The marginalisation of distance education students in dual-mode institutions lent support to this view, as evidenced by, e.g., the Indian Correspondence Directorates (Singh, 1979: 87), University of Zambia (Siaciwena, 1988: 201), and the US experience (Hall, 1991: 31). These arguments were also bolstered by the success of the UK Open University, whose much evaluated system showed that a dedicated distance education system could deliver high quality teaching materials, responsive and effective student support, and excellent administration and logistics.

The case for separatism was further strengthened by arguments based upon the distinctive technology of distance education. In the 1970s and 1980s, the argument that distance education was a technologically based form of education with a distinct pedagogy was easier to make than today with the mix of on- and off-campus resource-based independent and collaborative learning. Since then the expansion of higher education, the failure of governments to provide commensurate resources, and the consequent scramble to compete for new fee-for service and national and international markets, has led ‘traditional’ institutions to adopt approaches that lessen the amount of direct contact between teacher and student and erode the difference between the ‘on-campus’ and ‘off-campus’ learning experience.

Single-mode institutions have one distinct advantage, and that is their capacity to be very large indeed. All of the large-scale dedicated distance education systems, from India’s National Open School to the ‘mega-universities’– single- mode distance teaching universities with more than 100,000 enrolees (Daniel, 1996) such as China’s TV University System, the University of South Africa, Turkey’s Anadolu University, The Centre National d’Enseignement à Distance in France and the UK Open University –  aim for economies of scale. However, such economies can only be achieved by restricting the scope of the curriculum. Single-mode distance education systems cannot offer the variety of courses provided by traditional institutions without:

  • incurring heavy investment costs in courseware production and spreading their student bodies more thinly so that course populations come down; and/or
  • adopting course design strategies that reduce the amount of in-house production of materials and require students to buy textbooks or other generic resources unsuited to remote learners.

Daniel (1996: 32; 1998) makes the case for the long-term future of the ‘mega- universities’. He points out that the eleven mega-universities, as a group, enrol 2.8 million students at an average institutional cost per student that is at most half that of the combined 182 higher education institutions in the UK (about $10,000 per student with 1.6 million students) or the 3,500 institutions in the US higher education system (about $12,500 with some 14 million students). However, this argument only applies to first generation (correspondence- based) and second generation (multimedia-based) distance teaching institutions which depend heavily upon materials-based learning, reduce the amount of direct contact between students and teachers, and enrol large numbers of students. Such institutions can achieve economies of scale because they replace traditional teaching methods, which are labour intensive (and have low fixed costs but high variable cost structure), with a capital intensive form of teaching based on high up-front investment in materials production but low teaching costs (giving high fixed and low variable cost structure). 

In the small-scale ‘cottage industry’ distance education found both in the public and private sectors, a few people can create the materials, tutor the students, and manage the administration. However, distance teaching institutions with significant curricula and large enrolments have to resort to divisionalisation and division of labour. Generally, administration is hived off to become a separate and powerful function that regulates what academics do – with the aim of achieving economies of process –  while the traditional academic task of designing and teaching the course is divided between those who design and write the materials and those who tutor and assess the students. These differences are then reflected in the employment patterns with administrative staff almost invariably on permanent full- time contracts; the academics who create the material on full-time contracts (as at the UK Open University) or short-term authorial contracts (as at the National Extension College, UK); and the tutors on hourly contracts (for conducting tutorials), or piecework rates (for scripts marked). This reliance on part-time staff on the periphery is one of the key structural features of single-mode distance education, and a key factor in its cost efficiency. It may also be its Achilles’ heel because such staff may receive inadequate induction and training in the institutional values and practices, have no control over the course content and assessment criteria, and may not perceive themselves as stakeholders, all of which factors impact on the quality of their work.

Until a few years ago, all single-mode distance teaching institutions were ‘correspondence’ or ‘multimedia’ based. The advent of third generation systems, based on interactive technologies offering the possibility of much enhanced teacher-student contact at a distance, has changed the cost structure of distance education, moving it from high fixed, low variable cost to a (potentially) high fixed, high variable cost. Institutions adopting the new interactive online technologies are likely to see their unit costs increase sharply once their teachers demand wages in line with the amount of time they put into supporting the students. The rise in unit costs pushes up the costs to the students, and/or of the governmental subsidies. The former will run into elasticities of demand, the latter into pressures to curb subsidies – and the only way that this will be done will be to reduce the size of the institutions, or to find some very different structural solutions, some of which are discussed below.

The second problem with Daniel’s thesis is that he compares the 'mega- universities' with systems that are still highly traditional in their teaching methods. If the traditional system were to become fully re- engineered, adopting open and flexible learning methods to teach both off-campus and on-campus students, the comparison might be somewhat different. In the absence of proper research to inform decision makers, the better option is scepticism, not least because the studies that we do have suggest that the adoption of flexible learning and independent study within traditional institutions has brought unit costs down sharply. Scott (1997: 38), for example, points out that in the UK:

. . . the massification of British higher education is demonstrated [by] the sharp reduction in unit costs. Overall productivity gains of more than 25 per cent have been achieved since 1990 . . . This pattern, which exactly matches the expansion of student numbers, closely follows the cost curves in other countries where mass higher education systems developed earlier than in Britain. It supports the claim that mass systems have a quite different economy from that of élite systems. (our italics)

One of the reasons why first and second generation single-mode distance education systems have been so successful in massifying education and reducing unit costs has been their adoption of industrialised approaches to education. The thesis that distance education is an industrialised form of education was first advanced by Otto Peters who, drawing on Weber’s concept of bureaucracy, argued that it was a highly rationalised form of education involving mechanisation, standardisation, the use of capital-intensive technologies, centralised planning and control, division of labour, reduction in the autonomy of the academic producers, and an objectivisation of the production process leading to increased alienation (see, for example, Peters, 1973; 1983).

The bureaucratisation of education is, however, by no means restricted to distance education: it is now endemic in traditional campus-based systems (c.f. Ritzer, 1993, 1998). Ritzer holds that in the United States education, including higher education, has been marked by ‘the culmination of a series of rationalisation processes that have been occurring throughout the twentieth century’ that are best exemplified in the practices of the McDonalds fast food chain (Ritzer, 1993: 31-2). He points to:

  • the pressures for efficiency (larger classes, reliance on resource-based learning and particularly customised textbooks, and the use of machine- graded multiple-choice questions for assessment);
  • calculability (use of Grade Point Averages to summarise in one figure a student's achievement, quantified examinations to filter applicants, and student rating forms to evaluate professors);
  • predictability (imposed by the format and grading of multiple-choice questions, thus eliminating subjective judgement on the part of professors);
  • control (training students to accept highly rationalised procedures such as objective testing, timed lesson plans, and the definition of what is to be taught in particular lessons); and, as an outcome
  • the growth of irrationality, with many staff and students put off by ‘the huge factory-like atmosphere of these universities’ where education can be ‘a de-humanising experience’, and in which it is difficult for students to get to know other students, and virtually impossible for them to know their professors (Ritzer, 1993: 55-7, 73-7, 115-6, 141-2).

Thus education – including distance education – is perceived to have succumbed to a characteristically 20th century form of administration based upon large-scale hierarchies and large-scale mass production, both of which are encompassed within the concept of Fordism (Campion, 1995). Some distance educators have been deeply critical of the implications of Fordism for distance education, namely, the increased administrative control and disempowerment and deskilling of academic staff (see, for example, Campion, 1991; Campion and Renner, 1992). Fordist structures are also seen as resulting in low levels of product variety and process innovation (Campion and Renner, 1992: 9).

Given such criticism, it is not surprising that post-Fordist models involving product innovation, process variability, and labour responsibility have proved attractive to academics, both as a means of retaining autonomous control over their courses (ibid.: 11), and providing a rapid response to the demands of the consumer. Third generation distance education, giving power to the academic to control and change course content and pace, and providing a more constructivist learning environment, approaches a post-Fordist ideal by reducing ‘the need for reliance upon bureaucratic structures and practices’ (Campion, 1995: 211). These ideas will be explored further below.


Locating DISTANCE EDUCATION within The existing institution – the dual-mode option

There are basically two ways in which dual-mode institutions can teach both on-campus and off- campus students: through asynchronous ‘correspondence’ methodologies using print, correspondence, multimedia and the Internet/Web (which can encourage autonomous and constructivist learning), and by extending the traditional classroom by using face-to-face instruction via satellite TV and other connective technologies (which tends to reinforce teacher-centred approaches).

If some jurisdictions have found the single-mode approach more appropriate, others – for example, Australia and Sweden (see Dodd and Rumble, 1984) – believe that the dual-mode approach providies a more satisfactory outcome. The first American university to widen access through an extension service using correspondence methods was the Illinois Wesleyan University which in 1874 introduced undergraduate and graduate courses at a distance. The real expansion, however, began in the 1890s following the leadership of the University of Chicago. Other US institutions – notably the state universities – followed Chicago’s lead, and by 1919, 73 colleges and universities were offering distance education courses (Noble, 2000: 15). Similar developments occurred in Australian, Canadian and Soviet higher education. At the schools level, correspondence education was also introduced Europe, Australia, Canada and the Soviet Union to support home-based learners or learners in small disadvantaged schools, typically in remote and rural areas.

The quality of these programmes was again a matter for concern. In the US, although the universities were not-for-profit organisations, they were caught in the same economic web as the commercial colleges, so that:

Before long, with a degraded product and a dropout rate as bad as the commercial firms, they had come to depend on dropout money. At the end of the 1920s, … Abraham Flexner, a distinguished and influential observer of higher education, excoriated the universities for commercial preoccupations, for compromising their independence and integrity, and abandoning their unique and essential function of disinterested critical and creative enquiry (Noble, 2000: 15, reporting Flexner, 1930).

This reads like a critique of the university of the late 20th century (see for example, Halsey, 1995; Smyth, 1995; Barnett and Griffin, 1997; Readings, 1997; Barnett, 2000). However, it was essentially a criticism of the values of the departments set up within the universities in the earlier decades of the 20th century to extend the teaching and learning beyond the physical boundaries of the institutions, and this view has never been totally countered. According to Noble (2000: 15), some 30 years after Flexner’s criticism, ‘the General Accounting Office was warning Vietnam veterans not to waste their federal funds on such [distance education] courses’. More recently, Perraton (2000: 199) reminds us that while distance education has had a measure of success, a harsher view is of an approach to education that is ‘regarded as a second-rate system used to offer a shadow of education while withholding its substance’. Perraton ends his survey of distance education in the developing world:

Paraphrasing Gandhi, my answer to the question ‘can we make open and distance learning as good as conventional education?’ will be ‘I think it would be a good idea’. (Perraton, 2000: 200)

The different approaches to the organisation of dual-mode systems have been exactly this – attempts to make distance education as good as conventional education. Distance education programmes could be set up by individual departments (as happened at the University of Waterloo in Canada) or by the institution as a whole. In the latter case, a central administrative unit might be set up to co-ordinate the distance teaching activities of a number of departments – as at the University of Zambia and the University of New England – while in other cases, a separate unit was established to both teach and administer the distance programme, as occurred at the University of Queensland, Deakin University (until 1982), and in the Indian Correspondence Directorate system. This second model, isolating the distance system from the mainstream university, tended to reinforce the second class status of distance education; in India, for example, the Correspondence Directorates were accorded low status (Singh, 1979: 87). Integration along the lines of the ‘New England model’ was seen as the solution to this problem (Smith, 1979: 200). However, this model has also been criticised because it ‘tends to transfer an internal teaching model to the external teaching situation’ (Ortmeier, 1982). Certainly, integration has not always worked well. Siaciwena (1983: 70), reporting on problems encountered at the University of Zambia where the New England structure was adopted, said that ‘the system of assigning the same lecturers to both internal and external students has, in fact, been disadvantageous to the correspondence programme’ because overworked staff tended to use the available time for internal teaching and ignore external teaching, which they found exacting and difficult. Such negative attitudes, he concluded, ‘undermine both the status of correspondence education and the very concept of parity of standards’ (ibid.: 71).

The integrated model developed at New England nevertheless retained a degree of separation, inasmuch as the external students were administered through a separate unit. However, when in 1982 Deakin University adopted the integrated model it integrated the administrative services as well as the academic into the mainstream structures of the university. Although this change was criticised by those who thought ‘that off-campus students need a special unit of their own because “out of sight, out of mind” can all too easily become true’ (Jevons, 1984: 27), the fully integrated approach worked well. Nevertheless, it is worth interjecting a note of caution here: what works well in one setting may not do so elsewhere, and particularly where there is no shared vision and support from senior management and distance learning is still perceived as marginal activity diverting scarce resources, embraced by a few and threatening to time- honoured roles and practices.

These different approaches – once deeply contentious – are ceasing to have relevance in a number of countries. In Australia, for example, as in many other countries, higher education has been confronted with changes in student demographics, the need to provide for nontraditional students and demands for expansion while experiencing severe cuts in government funding and staffing. The universities have had to search for cheaper ways to teach these greater numbers of more diverse students and new ways of generating income, and with the mainstreaming of technology into teaching and learning. The answer has been seen to lie in flexible resource-based learning. Thus on-campus teaching has become more distant – not in geographical terms, but in transactional terms which is a function of two variables, dialogue and structure (Moore, 1983:157). Dialogue involves interaction between the learner and the teacher. First and second generation distance education systems, and de- humanised forms of ‘traditional’ higher education such as Ritzer’s McUniversity, permit little dialogue. Structure is a measure of the programme’s responsiveness to individual needs – what is sometimes referred to in the UK as ‘openness’ (Lewis, 1990). Fordist distance education systems – rationalised, predictable, and formalised – are highly structured. These features, combined as they are in first and second generation distance education systems, make for highly distant systems.

The distance in these systems can be mitigated to a degree by increasing the amount of dialogue and loosening the regulatory tightness of the systems – but both of these strategies cost money. The current tendency, as Scott (1997: 38) reminds us, is to drive down costs. Australian universities have realised that they can reduce the costs of their on-campus provision by using the same methods and materials to teach their on-campus and off-campus students, replacing the labour-intensive lecture with the videotape, self-instructional text or Internet/Web material, and generally reducing the amount of contact time between students and teachers (see Taylor and White, 1991). Moreover, they can do this without cutting back on the curriculum. Rumble (1992) argued that this ability to deliver a wide curriculum cheaply gave dual-mode institutions a distinct competitive advantage over their single- mode counterparts. Renwick (1996: 59-60) suggests that traditional universities adopting dual-mode approaches may have an edge on single-mode providers because ‘they already offer a wide range of degrees and qualifications that rival open universities, could diversify at less cost, would not necessarily have to rely on large numbers of enrolments to be viable as providers of distance programmes, and could offer a wider range of options to potential students’. In the process, the distinction between distance and traditional education, on-campus and off- campus, is blurred and replaced by flexible learning.


Collaboration – the networked alternative

As mentioned earlier, Perry and Rumble (1987) suggested that consortia ‘are a splendid idea which all too seldom work in practice’. This judgement derived from such ill-fated consortia as the University of Mid-America and the Universita’ a Distanza in Italy, both of which demonstrated the inherent instability of collaborative ventures in distance and open education. On the other hand, the National Technological University (NTU) in the US provided an early example of the potential benefits of collaboration, even though it ultimately failed to achieve the graduate enrolments originally envisaged (Cunningham et al, 2000). NTU was established as an independent university with its own accreditation and degree programme authorisations and functions as an administrative and co-ordinating unit for the engineering departments of over thirty participating universities that provide graduate and non-credit distance education programmes for such major corporations as IBM and Motorola by means of live, satellite video courses uplinked from the originating universities.

Today, the imperatives of global competition, the opportunities provided by telecommunications, and the need to leverage complementary strengths for greater market share and geographic coverage are leading to an increasing number of inter-institutional, inter-sector and international consortia such as:

  • The Scottish Knowledge global higher education consortium, comprising Scotland’s fourteen universities, Australia’s Edith Cowan University and other providers, plus News International plc, which is targeting the corporate sector in the US, Middle East and Asia with its postgraduate distance education courses.

  • Twelve UK, Dutch, Australian, New Zealand, Canadian and American universities which have formed a partnership with Hong Kong-based online education company NextEd and other corporate providers to deliver programmmes into Asia, Europe and America.

  • The University of Melbourne-led consortium, Universitas 21, which aims to establish itself as a major force in international distance education by partnering with elite universities across the globe and capitalising on their brandnames.

  • Illinois-based Internet university UNEXT.com and its newly-created Cardean University which is partnering with leading academic institutions such as Columbia Business School, Stanford University, University of Chicago Graduate School of Business, Carnegie Mellon University, the London School of Economics and Political Science, and other high-profile universities to sell business-oriented online MBA courses to multinational and overseas corporations.

  • The National Universities Degree Consortium (NUDC) which enables 11 accredited US universities to collaborate in offering well over 1,000 certificate, baccalaureate degree and graduate degree programmes, and facilitates substantial cooperation in marketing and student support.

  • The American Education Consortium (ADEC) with sixty institutional and affiliate members sharing in providing specialised courses and programmes, internationalising their offerings and purchasing expensive satellite time (Poley, in press).

What we are witnessing here is the internationalisation, competitiveness and commercialisation of distance education leading to plethora of mating calls and courtship rituals between public and private organisations as they reposition themselves in a volatile market and adapt to the realities of what Alvin Tofler (1980) calls the Third Wave economy. Tofler (ibid: 263) characterises the Second Wave organisations as: large; hierarchical; permanent; top-down; mechanistic; and designed to deliver repetitive products and decisions in a relatively stable environment. In the Third Wave economy, dominated by service organisations and transformed by new technology, he suggests that there is need for organisational systems rather than physical entities and that these new systems cut across traditional managements, departments and functions and operate through a variety of networks, partnerships and alliances which are interactive, interorganisational and international. These systems are ‘messily open’ rather than ‘neatly closed’, comprising temporary configurations of organisations that share common interests that members join and leave as opportunities rise and wane.

Such network configurations are not restricted to postsecondary education. India’s National Open School (NOS), a system developed to serve educational dropouts and provide alternative foundation, secondary and vocational education, operates through its headquarters in New Delhi, regional centres in Calcutta for the eastern region, Pune for the western region, Hyderabad for the southern region, Agra for the northern region, and Guwahati for the north- eastern region, and 1,000 centres, comprising a mix of:

  • Institutions committed to the poor and educational dropouts.
  • Commercial or non-government agency centres.
  • Institutions lacking the minimum necessary infrastructure and qualified teachers
  • Institutions with good buildings, laboratories, libraries, workshops and qualified teachers to teach the relevant subjects.
  • Private schools running a parallel fee-for-service ‘open school stream’ for regular day scholars who find difficulty with science and mathematics.

Only through such networking and partnership can the NOS reach out to serve the huge numbers of pupils who drop out from India’s 112,000 secondary schools. In 1998-1999, the NOU had more than 500,000 students on its rolls and an annual enrolment of over 130,000, of which 35% was female.

Consortia, partnerships, strategic alliances etc. are formed by educational, training and corporate providers for a variety of reasons, but principally to: 

share costs or spread these over a larger number of students;
share courses, resources and academic and commercial experience and expertise;
share risk;
form alliances with potential competitors and interlopers;
  • attract funding opportunities (particularly in the European Union which makes inter-institutional collaboration a condition of funding);
  • form public-private partnerships to provide online courses, as with Colorado’s community college system contracting with e-College (Bates, 2000: 173) and the global consortium using online education company NextEd’s technology to deliver programmes into international markets.
achieve a competitive edge and greater market share;
  • be fast to market or cope with major market demand by joint course development and optimising complementary strengths, as shown by Open Learning Australia in its earlier years of operation (Latchem & Pritchard, 1994), and the joint Master’s in Social Work developed by Cleveland State University and Akron University (Bates, 2000: 166).
  • promote and operate credit transfer/recognition of prior learning systems, as with the three research universities and Open Learning Agency in British Columbia (Bates, 2000: 168), and the Australian universities involved with Open Learning Australia;
  • jointly market and broker programmes, as with Open Learning Australia, California Virtual University (Bates, 2000: 171-172) and Western Governors’ University (Cunningham et al. 2000: 46);
capitalise on partners’ knowledge of, and reputations in, local markets;
  • accommodate other countries’ governmental requirements for local institution involvement as a condition of entry;
  • ensure adequate provision of local services such as marketing, counselling, admissions, registration, and examination invigilation;
  • de-bundle learning materials, tutorial support and course assessment to provide expanded market opportunities, as with Athabasca University’s partnership with TAC, a private Japanese company whose adult learners sit the American CPA exams and use AU’s courseware and summative assessment while TAC provides on-site learner support and tutoring (Abrioux: in press);
  • achieve a franchise arrangement, as between University of British Columbia and Monterrey Institute of Ttechnology in Mexico with its 26 campuses in Mexico and Latin America  (Bates, 2000:164).

Establishing consortia, partnerships and other such inter-dependent systems can be difficult and time- consuming for institutions, sub-groups and individuals accustomed to more autonomous ways of working and many consortia and alliances fail or fall short of achieving their potential. Neil (1981: 172-6) and Moran and Mugridge (1993: xiii, 5, 9-10; 152-7) identify a range of factors which may inhibit collaboration. These include: the existence of cultural differences between institutions; traditions of institutional autonomy; the ‘not invented here’ syndrome; poorly-constituted collaborative objectives; failure to articulate mutual benefits; lack of clarity in specifying the terms of an agreement; incompatible organisational structures and administrative procedures; inadequate funds to implement agreements; poor interpersonal relations; weak leadership; lack of real commitment on the part of one or more of the parties; and lack of trust.

Bates (2000: 176-179) suggests that there are many potential advantages in collaboration and partnerships but that these depend upon: defining the strategic benefits; picking the right and best partners; gaining general support for the partnerships throughout the organisations; putting in the time and up- front investment; planning for both the short term and the long term; determining the relative roles of the institutions and their sub-organisations; sound project management with clearly defined tasks and agreed-on budgets; and formal agreements signed off by the CEOs. For institutions that can face up to these challenges, there may well be exciting opportunities for collaboration and paradigmatic change within the context of e-distance education.


CORPORATE UNIVERSITIES AND CORPORATE TRAINING

Some US corporations, for example, Aetna, American Express, Apple, Arthur Anderson, Cisco Systems, Dow Chemicals, Ford, General Electric, General Motors, IBM, McDonald’s, Merrill Lynch, Motorola, Sears, Sun Microsystems Inc, and Xerox, have centralised their training under one umbrella and renamed these departments or divisions ‘corporate universities’. Despite their adopting such a nomenclature, few of these institutions have ever offered accredited degree programmes and of those that have, several have either withdrawn from offering these or have merged them with the academic programmes of more conventional universities.

Many academics scoff at the idea of courses provided by the Disney University or McDonald’s Hamburger University and question whether these institutions meet the standards required to call themselves universities. However, the message from these corporate providers is loud and clear. Learning is important, needs to be given greater prestige and demands major investment.  The corporate sector is in the market for programmes that are relevant to business efficiency and employee performance, that acculturate the employees into the changing environment, that develop the necessary skills and knowledge about the companies’ products and services, that help to recruit, retain and advance the best employees, and that are customised, flexible and appropriate to today’s fast- moving, knowledge-based economy.

Meister (1998: ix) observes that the corporate university is established ‘with the goal of achieving tighter control and ownership over the learning process by more clearly linking learning programs to real business goals and strategies’. Corporate University Xchange (2000:S2) states that the corporations have the money, subject matter expertise and speed-to-market mindset to create a business in education. And an increasing number of these corporate providers are ceasing to be cost centres and operating as profit centres, generating revenue by providing training for customers, suppliers and distributors. The corporate university is largely an American phenomenon although the UK- based Unipart Group of Companies has established a ‘Virtual U’ to deliver electronic courses to its 10,000 employees which is part of the company’s ‘Unipart U’ corporate university. Some corporations such as IBM, Cisco Systems, Dell and Motorola, extend their training to employees throughout the world through networked/satellite learning systems. Motorola University, for example, delivers Web- based training to 142,000 employees in more than 70 countries and in 24 different languages.

Cunningham et al (2000: 15) conclude that while it is easy to dismiss the more extreme examples of corporate universities, ‘organisations which seriously invest in their corporate programs have much to offer the traditional education sector in the professionalism with which they approach their teaching and learning programs, and the funds expended on these activities’. Worldwide, major investments are being made in the corporate education market and flexible learning is increasingly seen as an integral part of HRD or training policy. Another emerging model is the sector-based online university such as the US Real Estate University (Cunningham et al, 2000: 40).

Many smaller companies also provide Internet, Intranet or other forms of flexible training, targeting priority areas of need and relating learning to the job. However, as Rowntree (1992: 23) notes, most in- company programmes may be ‘flexible’ in terms of time, place and pace, but are only ‘open’ to those who are eligible for such training within their organisations, and typically offer little choice in objectives, content, teaching and learning methods and assessment.

Some private sector organisations offering their own courses seek credit from public sector institutions. For example, Microsoft and Novell have contracted with Tucson’s Pima County Community College, an arrangement which also enables the students to have their fees paid for by their employers or receive a tax break on their fees (Bates, 1995: 173). The alternative model is for corporations to contract with universities and colleges to provide courses matched to their needs. Thompson (1998), identifies three reasons for this seachange:

  • a growing tendency of corporations to focus their attention and resources upon their core business and to ‘outsource’ corporate education;
  • the demands of the accreditation process; and
  • a growing willingness of colleges and universities to assist corporations in meeting their educational needs.

Thus, UK management consultants Ernst and Young partner with Henley Management College to offer their staff worldwide MBA and PhD programmes in business and leadership, an arrangement which both parties regard as mutually beneficial. Ernst and Young see it as a means of accumulating intellectual capital, retaining staff, and maintaining competitive advantage. Henley Management College staff look upon it as an opportunity to gain first- hand knowledge of the issues currently confronting the corporate sector (White, 1999). And at the national level, through its Green Paper, ‘The Learning Age’, the UK Government has established a major public-private partnership, the University for Industry (UfI). UfI has not been conceived as a single, self- contained institution such as the UK Open University, but again as a system, drawing upon a wide range of educational and training providers to offer courses and programmes which stimulate and meet demand for lifelong learning among businesses and individuals through online delivery into homes, workplaces and 400 ‘learndirect centres’.

Such developments are also being transacted through separate for-profit entities attached to existing universities and colleges, an arrangement which again may give rise to conflict within the academic culture of the more traditional institutions.

THE NEW KIDS ON THE BLOCK – FOR-PROFIT INSTITUTIONS

For-profit distance teaching institutions are again largely an American phenomenon although this model seems likely to be replicated elsewhere across the globe. The prime US examples are University of Phoenix (UoP), DeVry Inc, Strayer Education Inc and Sylvan Learning Systems Inc, all of which are dual-mode. UoP now has the largest enrolment of any US private nonprofit or for-profit university (Sperling and Tucker, 1997: 36). Its undergraduate and graduate enrolments in the US, Puerto Rico and elsewhere have reached 65,000. UoP operates primarily through a network of learning centres but about 10% of its students are enrolled in UoP Online Division programmes which generate US$12.8 million a quarter. DeVry, through its undergraduate DeVry Institutes and postgraduate division, Keller Graduate School of Management, also remains committed to teaching through local outlets but is positioning itself in the asynchronous online market.  Strayer has an aggressive strategy of programme and campus replication across the US, but in 1999 opened an online division called Strayer Online. Sylvan Learning Systems Inc provides personalised instructional services to students of all ages and skill levels through a network of over 640 Sylvan Learning Centers and adult  professional education and training through its Caliber Learning Network.

For-profit institutions arise through a combination of:

  • dissatisfaction with the responsiveness of traditional institutions to the professional and vocational needs of working adults who require convenience, year-round compressed courses, and individually-tailored and individually-satisfying flexible learning;
  • recognition of the enormous potential of the education market (US$772 billion per year in the US or 10% of the country’s gross domestic product and the fifth largest service sector export in Australia);  
  • e-commerce entrepreneurism.

The major US for-profits are listed on the New York Stock Exchange and Cunningham et al (2000: 16) observe that such institutions have as their primary goal profit from selling education and training as a service, are run strictly according to strict business principles, offering niche client groups a limited range of educational ‘products’, and in Meister’s (1998: 231) terms, focus on ‘convenience, self-service and uniformity’.

Hanna & Associates (2000:139-140) suggests that these for-profit universities are important in the mix of higher education models because they:
  • have access to private capital and funds needed for start-up and expansion;
  • can purchase, lease, or modify facilities quickly;
  • focus upon a specific niche of the adult marketplace for education, namely, those knowledge workers who require high levels of education and whose employees can afford to pay the tuition for them in many cases;
  • stay close to their customer base, thereby producing a high-quality educational product;
  • are managed as well as governed; are focused upon making necessary changes as needed rather than as mandated;
  • operate year-round;
  • are experiencing significant enrolment growth overall.

Such institutions are borderless and have the potential to present formidable competition to the traditional universities. Cunningham et al (op cit: xvii-xviii) suggest that these new providers are not bound by the norms and ideals of traditional higher education such as collegial governance, linked research and teaching, or academic autonomy and control, and (op cit: 4) adopt a strategic and systematic approach to the professionalism of education and training that does more than pay lip service to the rhetoric of being a ‘learning organisation’.  White (1999) suggests that these institutions ‘have the advantage of being able to hire and fire managers and teachers and offer them a share of the profits’, and notes that Wall Street analysts eye the multi-billion education sector as ripe for investment because ‘it is seen as a low-tech industry managed by amateurs’. However, the for-profits have fared poorly on the NYSE over the past few years and there are still serious questions about their quality, governance and treatment of staff (for example, see Cunningham et al., 2000). 


Is there anyone OUT there?  virtual INSTITUTIONS

The ‘virtual institution’ has become the metaphor for online enrolment, distribution, tuition and administration. Cunningham et al (2000: 16) suggest that the virtual institution can be conceived of in two ways:

  • as an institution which offers all of the conventional university services via information and communications technology (for example, NYUOnline or Jones International University, America’s only accredited private online university); or
  • as a ‘hollow’ organisation which unbundles services conventionally provided in-house and subcontracts these to other organisations (for example, Western Governors University, brokering competency-based programmes).

In a third model, the institution acts on behalf of a number of different providers (for example, the Californian Virtual University providing online catalogues and courses on behalf of its partners, and Britain’s emerging e-university which is envisaged as doing something similar for the entire UK higher education sector, while retaining the right to refuse to accept courses on quality grounds (see O’Shea, 2000: 10).

Web searches will yield a number of ‘virtual’ or online institutions – for example, in the US, Athena University, Virtual Online University and Magellan; in Malaysia, Universiti Telekom (Multimedia University) and Universiti Tun Abdul Rasak; and in Korea, the Korea Virtual University Consortium. However, Cunningham et al (op cit.) found that despite all the rhetoric and hype, these institutions remain embryonic. Farrell (1999: 2-3) observed that the term ‘virtual’ is used broadly and indiscriminately, that there few examples of virtual institutions or campuses in the purest sense, that development is still experimental, unfocused, not necessarily matched to clientele learning needs, and that those using the Web, do so as a publishing medium rather than an interactive tool. However, he records a great deal of interest and activity in this area from four different sources:

  • institutions that have historically been involved with single-mode or dual- mode provision;
  • from within traditional institutions ranging from schools to universities, on a programme-specific basis and in order to add quality, increase productivity, reduce costs, increase revenue and attract new students;
  • the corporate sector developing internal programmes based upon information and communications technology and marketing these under a virtual label;
  • individuals, who for reasons ranging from altruism to profit, have created online learning opportunities for anyone interested.

Farrell (op cit: 8) suggests that there is also evidence through SchoolNet initiatives in Canada, South Africa and India and similar developments elsewhere across the globe that virtual education models will start to pervade primary and secondary education. However, here the technology may be used either to support the teacher, enable the teacher to teach across distances or networked schools, or deliver information, knowledge and learning opportunities directly to the learner.


GAZING INTO THE CRYSTAL BALL

The development of third generation distance education opens up new prospects for structuring distance education systems. The models described above are fluid, transmuting and converging. The question is, can new structures be established that will enable distance educators to make use of the new technologies to provide cheap, mass educational access or, on the other hand, profitable global enterprises? Like it or not, higher education has now been thoroughly ‘corporatised’ and is perceived as a mass business, with private investment from firms such as Merrill Lynch, Banc One, and a range of venture capitalists only likely to increase. Oblinger (2001) observes that e- learning has been described as the next Internet ‘Killer App’ (c.f. Peterson et al, 1999) and that net-generation companies, the new providers, global knowledge portals such as 1 to 80.com in Singapore, and global consortia such as Cenquest (Giegerich, 2000) are transforming open and distance learning. She foresees even more change in the wake of mergers and acquisitions among existing e-distance businesses, and by media, publishing and communications businesses currently outside distance education. Such consolidation will, she believes, ‘provide scale, and in education, scale matters … [enabling] leverage for research and development, curriculum development, sales efforts and overall operating expenses’ (Oblinger, 2001: X).

The costs of online education are currently being investigated but it is already clear that the costs of putting suitable materials on-line may be very high, while the costs of supporting students online look as if they are going to cause the unit costs of distance education to increase substantially (Rumble, 1999). Against this, e-commerce practices such as online registration are likely to bring some costs down. Nevertheless, the extensive adoption of online learning by single-mode distance education systems is likely to push their unit (and total) costs up, thus undermining their efficiency relative to traditional educational systems. Dual-mode systems may, however, be able to use online teaching as a substitute for face-to-face contact without affecting their overall cost structures too much – particularly if they also eschew the development of materials in favour of using pre-existing textbooks, and if they keep course numbers down. The initial thrust within e-distance education may well be, therefore, to find less expensive ways of undertaking routine operating transactions, while the greatest overall success may come within dual-mode systems. If the latter is true, then single-mode institutions are going to face greatly increased and very cost effective competition.

Technology and e-business approaches make it possible for integrated processes of open and distance education to be disaggregated into their constituent parts: curriculum development; content development; learner acquisition and support; learning delivery; assessment and advising; articulation; and credentialing. These processes can then be managed by different organisations.

Conversely, e-distance education may enable academics to regain control over the teaching-learning process, provided that:

  • course modules are small enough and so designed as to enable a single academic to develop them;
  • the number of students following the course is no greater than one person can handle in terms of marking assignments, responding to students, etc.; and
  • control over administrative processes is devolved to the academic, who reports the outcomes only to a central record-keeping administration (Rumble, 1998: 136).

The emergence of such ‘reaggregated’ jobs could parallel the 12th century emergence of the intellectual – one ‘whose profession it was to think and share their thoughts’ (Le Goff, 1993: 1) and who taught in schools that ‘were workshops out of which ideas, like mechandise, were exported’ (ibid.: 62). During the 12th century these intellectual artisans began to organise themselves within corporations or colleges of masters and students, out of which emerged the universities in the 13th century. The salaries of these masters derived from two sources – the students, and stipends or scholarships from private benefactors, and civil and public organisations. Masters who could live off what their students paid them were free of temporal and ecclesiastical powers and private patrons.


It is perhaps too fanciful to predict that the Internet/Web will enable the 21st century ‘master’ to sell his or her wares in the e-marketplace, and be paid directly by the learner. With the possible exception of a few international ‘gurus’, most teachers will need to operate within a framework which advertises their availability, assures potential students of their worth, and provides acceptable and transferable certification and accreditation. Once accepted into such a framework, it will be in the interests of these teachers to ensure that the organisation as a whole succeeds. Systems ‘in which everyone takes responsibility for the success of the whole’ is the key characteristic of what Hechscher (1994: 24) refers to as post-bureaucratic organisations. Applied to third generation e-distance education, this would mark a significant departure from the way in which first and second generation systems have been organised. The function of the institution would be to provide learner acquisition, quality assurance, articulation, and credentialing. The academics’ function would be to develop and deliver the courses and support and assess the learners via the Internet/Web. Global alliances, and globalised credit accumulation and transfer schemes between organisations of a similar standard, would allow for the emergence of multi-cultural partnerships of globally distributed teachers serving students across a borderless world. Such organisations might be so re-engineered as to allow academics to be paid directly by their students, the university to be reimbursed for the registration and recognition of their learning (and possibly levy a charge on the academics for their continued recognition as accredited teachers) and grant academics the freedom to regulate their student load to suite their needs and combine this work in other fields or for other organisations.

Having opened up these possibilities, Rumble (1998: 142) asks whether such models could happen. There is no clear answer to this – but what is clear is that the field of distance education is changing and will change even more as new players enter the field, exploiting the possibilities of e-commerce, and that time- honoured structures and systems may wither or be swept away. 


CONCLUSIONS

All of the organisational structures described above have worked in particular cases; and all have been shown to have advantages and disadvantages. There can be no absolute policy guidelines, although it seems inevitable that most traditional institutions will become involved with mixed-mode provision, and that there will be an increase in alliances and partnerships, some of which will transient. The international agency offering community-based open learning programmes in HIV/AIDS awareness in developing countries will almost inevitably need to work in collaboration with various health, education, government, community and telecommunications organisations. The national government setting up an open schooling system will need to involve a range of partners, including the existing schools, to maximise scarce resources. College and university educators and trainers, telecommunications and media providers, publishers and the corporate sector will endeavour to capture each other’s primary strengths. However, each of these structures has economic consequences which will in turn determine what works best in given circumstances. It seems likely that the development of e- distance education will significantly affect the way in which distance education is structured. The one certainty facing policy makers is that the environment is changing, and that this will fundamentally impact on the structures through which distance education is delivered.

The knowledge economy demands lifelong learning and the private sector is assuming a growing responsibility for this. There are calls for significant educational reform and greater accountability and an increasing number of institutions are now reinventing or realigning themselves to expand and enhance their education and training operations. Some will opt to maintain a local or national focus; others will aim to become global and multinational; most, if not all, will seek commercial benefit from their operations. The internationalisation of education is really only at what Davis and Botkin (1995) define as stage one: export, or stage two: setting up partnerships and in- country development and delivery. The greater vision will be realised when institutions achieve stage three – truly two-way exchange and development of programmes and services through borderless education.

All organisations have lifecycles which proceed from startup and experimentation to maturity and aging, during which process they become increasingly rigid and entrenched in their organisation and operations. It is yet to be seen whether the institutions emerging from the Second Wave or Fordist economy will recognise and respond to the need for risk-taking, responsiveness, results-oriented programmes and services, reciprocity and relationships and transform their organisational, administrative and academic systems, or whether new providers will prove quicker, more flexible and more effective in responding to the need for a working-learning culture and infrastructure. Hanna & Associates (2000: 134), and Cunningham et al (2000: xviii), caution that great care will be needed to obviate unproved or disreputable operators from exploiting this industry and individuals’ educational aspirations. It will be equally important to ensure that, with so many in the world still denied educational opportunity, open and distance education still upholds the principles of access and equity and is not totally subjugated to the politics of economic liberalism.


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Re: The vulnerability debate DTU vs DMU
Dear Professor Rumble:

It is indeed an honor to have the opportunity of having you in our class. I completely agree with your views about the competitive vulnerability of DTUs, I have been involved in a project, sponsored by the US Agency for International Development (USAID), studying the use of distance education as an option for the training of Local Governments in Latin America and the Caribbean. Distance education seems the only possible option to cover the educational needs of 16000 municipalities and about 24 million public employees who often come into office with limited or no experience or knowledge about local government policies and/or management.


As a part of this study we collected information about existing distance education programs aimed for public officials in the region and with a presence in the Internet. So far, we found 110 programs of variable quality and for different educational levels. Of these, only 3 programs are being offer by DTUs and all of them at the graduate level - 2 for an international market and one for a national audience. All the others programs are offered exclusively by DMUs or by DMUs in joint venture with other CBUs, bilateral agencies, NGOs (non governmental agencies) and/or national institutes for public administration.


There are two cases in particular that show some of the comparative disadvantages of DTUs vs DMUs, for this specific situation. The first one is the National Institute for the Governance in Spain, that joined forces with the Open Universitat of Catalunya (UOC) in a program that works basically in the same way as the MDE at UMUC: one Masters degree that it is also offered either as three individual certificates or as nine individual classes. The second one is the Universidad Nacional Autónoma de México (UNAM), with a pool of about 400 different courses, within the Governmental Development Program, available in several modalities: in-campus, hybrid or blended, and completely on-line. Governmental or private institutions can choose, mix and match, and thus, tailor the classes according with the individual needs when requesting more than 30 courses with at least 30 participants. Although the courses are in general only "improved" versions of their regular on-campus classes, UNAM has at least five other advantages over the UOC that are almost a pre- requisite for the Latin American population. They can: offer programs for different Spanish- speaking international audiences, "adjust" contents to specific local contexts, up-date contents on a regular basis as new policies and regulation enter into effect, offer face-to- face support on an as needed basis, offer very competitive prices and train students at several educational levels. Considering the size, academic, ethnical and cultural background of the targeted audience, the wide thematic range to be covered and the scarce funding available, governments are usually forced to choose quantity over quality.

It seems to me that it is almost impossible for a DTU to provide a comparable offering. I would like to know if you have different views about these initiatives?

Thanks again for your input and comments,

Luz Adriana
Re: The vulnerability debate DTU vs DMU
Hola Luz, estoy de acuerdo - a mi me parece que las ventajas cayen en el campo de los sistemas mas flexible.

[For others: yes - I agree with Luz - personally I think that the more flexible a system can be, the more it can adapt its delivery to meet the needs of particular target populations and sub-groups within the student population, the better. The issue then becomes, not to seek economies of scale (what the DTUs were good at) but to find economies of scope.]

Greville
Re: The vulnerability debate DTU vs DMU

Profesor Rumble:
Muchas gracias por su oportuna respuesta!
Luz Adriana
Re: The vulnerability debate: DMUs and flexible learning
Prof. Rumble,

I found your comments on the DMUs to be very interesting. I developed an interest in this area during our Distance Education Systems and Learning and Training with Multimedia courses. That of course is if we consider DMUs to be synonymous with flexible or blended learning (I will refer to this as flexible learning). And I would assume this to be the case if I understand your discourse on the strengths of DMUs that you list in the article of discussion. Do you find this a correct assumption?

I find that flexible learning may not only provide for both modes of learning - on campus and distance - but may also give campus students the opportunity to take advantage of technologies on campus, from the dorm or home. These students may now have the option of attending a class session or accessing learning materials from a web site, video or audio tapes. While I am not sure if any DMU uses these particular strategies, it seems one that would make sense and would eventually find its way into the DMUs or CBUs. Bates (2000) suggests this very topic (p. 17f). Peters (2001) second special meaning of flexible learning, in that students should be allowed to choose when, where and how they want to study (p. 156), also seems to support this idea.

I also agree with your treatment on cost comparisons of DTUs to DMUs. However, how would my discussion of flexible learning impact this treatment? This idea of flexible learning would seem to complicate costing exercises, especially in the area of different media, tuition and the level of student support. Apportioning of costs may become more complicated as well. Or would it? At this point, it may make complete sense to apportion the cost equally amongst the entire student population.

Part of your reply to Luz Adriana states: "The issue then becomes, not to seek economies of scale (what the DTUs were good at) but to find economies of scope." I couldn't agree more. But do you think there is a possibility to reach a middle ground between economies of scale and scope within flexible learning? This would be quite a topic of research or feasibility study.

Thanks for your time again.

warm regards
Gary

Bates, A.W. (Tony). (2000). Managing technological change. San Francisco: Josey- Bass.

Peters, O. (2001). Learning and teaching in distance education: Analysis and interpretations from an international perspective. London: Kogan Page.
Re: The vulnerability debate: DMUs and flexible learning
Gary

Do we consider DMUs to be synonymous with flexible or blended learning
YES.

I find that flexible learning may not only provide for both modes of learning - on campus and distance - but may also give campus students the opportunity to take advantage of technologies on campus, from the dorm or home.
I AGRE. I SUSPECT SOME OF THE AUSTRALIAN UNIVERSITIES ARE AT THIS POINT - E.G. DEAKIN UNIVERSITY. ALSO POTCHESTROOM IN RSA IS GOING THIS WAY.

I also agree with your treatment on cost comparisons of DTUs to DMUs. However, how would my discussion of flexible learning impact this treatment? This idea of flexible learning would seem to complicate costing exercises, especially in the area of different media, tuition and the level of student support. Apportioning of costs may become more complicated as well. Or would it? At this point, it may make complete sense to apportion the cost equally amongst the entire student population.
IN A SENSE IT MAKES THE BOUNDARIES MORE DIFFICULT TO ASCERTAIN, AND HENCE FUNDING. AUSTRALIA SOLVES THIS BY MAKING NO DISTINCTION BETWEEN THE FUNDING OF AN AND OFF CAMPUS STUDENTS, BUT OF COURSE THAT WOULD MEAN THAT ONE NEVER TOOK ADVANTAGE OF THE ECONOMIES OF SCALE IMPLICIT IN DE FIRST AND SECOND GENERATION INSTITUTIONS. WOULD THAT MATTER - POSSIBLY NOT.

HOWEVER ONE COULD STILL COST AT THE COURSE LEVEL, RULING OUT HIGH COST DE SOLUTIONS FOR VERY SMALL COURSES AND USING E- LEARNING ROUND TEXT BOOKS AS THE ALTERNATIVE APPROACH TO F2F, WHERE THE TRADE OFFS ECONOMICALLY ARE MORE OR LESS THE SAME; BUT WITH BIG CAMPUS BASED COURSES ENCOURAGING PEOPLE TO DO MORE RESOURCE BASED LEARNING, WHERE TRADE OFFS DO EXIST.

IF THE ACCOUNTING SYSTEM WERE GOOD ENOUGH, IT COULD EASILY ALLOCATE COSTS ACCURATELY AT COST AND EVEN INDIVIDUAL STUDENT ON A COURSE LEVEL.

Part of your reply to Luz Adriana states: "The issue then becomes, not to seek economies of scale (what the DTUs were good at) but to find economies of scope." I couldn't agree more. But do you think there is a possibility to reach a middle ground between economies of scale and scope within flexible learning? This would be quite a topic of research or feasibility study.

INTUITIVELY YES, I THINK ONE CAN LOOK FOR BOTH - IN SOME CASES EMPHASISING SCALE, IN OTHERS SCOPE - SEE ABOVE. THIS FOR ME IS THE VIRTUE OF FLEXIBLE LEARNING AS VS A STRONG BOUNDARY BETWEEN CAMPUS AND DE.

GREVILLE
Re: The vulnerability debate: DMUs and flexible learning
Prof Rumble,

Thank you for your responses. This is plenty to think about and the discussion thread has been very enjoyable and enlightening.

Have a great weekend!

warm regards
Gary
The Failure of DTU's
Professor Rumble,

I have appreciated reading my classmates' thoughtful questinos and your timely responses, both contributing greatly to my learning and understanding.

With a combination of business and education experience, I feel that education institutions do a very poor job at "running the numbers" to determine future growth and stability in terms of enrollment, profitability, and return on investment. I am interested in your perspective on the following questions:

1. Was the demise of the Open University - United States predictable from an economic standpoint? With the US distance education market growing exponentially, how is it so different than other parts of the world where the OU has experienced much greater success?

2. Do education institutions place the proper emphasis on finding economies of scale, a competitive advantage, or a specific return on investment, compared to other non- economic factors such as political/government pressure, acting as a follower and not as a leader, and attractiveness of a particular market (i.e. offering courses/degree used for promotion/high profile purposes)?

I thank you in advance for your reply.

Chris Thompson
Re: The Failure of DTU's
Hello Chris

USOU
1. Was the demise of the Open University - United States predictable from an economic standpoint? With the US distance education market growing exponentially, how is it so different than other parts of the world where the OU has experienced much greater success?

Its difficult for me to respond because I never saw the Business case, thoughthere would have been one. But I believe that experience in the past (the failure of the OU to get into real and sustainable partnerships with the colleges it worked with int the early 1970s, and the failure of the sales office it set up in New York in the late 1970s early 1980s, should have warned it that the US market was difficult to penetrate, partly because the structure of the degrees does not equate with US credit structures easily, and also the OU has no name among customers in the US (as oppsoed to academics interested in experimentation in organisational and technological approaches to HE. My feeling as an outsider that the failure derived from the hubris of one man. (The success elsewhere is limited, incidentally, though better. Usually its been in a partnership.)

2. Do education institutions place the proper emphasis on finding economies of scale, a competitive advantage, or a specific return on investment, compared to other non- economic factors such as political/government pressure, acting as a follower and not as a leader, and attractiveness of a particular market (i.e. offering courses/degree used for promotion/high profile purposes)?

No - the OU is better because it is a business in many ways, but even it follows govt leads down useless paths because it believes that there is political (followed by financial in grant) capital to be made. But generally educational planning is fairly poor, in my opinion.

Greville
Real or perceived "value" of education?
Aloha Professor Rumble!
My comments come from Vernon J. White's response starting on page 89. If I am reading it correctly, he is making the point that it is easier for a DTU to go to a DMU, than a CBU to a DTU. His reasoning is more towards funding versus academic inferiority. Also, would you agree that DTU's should aspire to go to a DMU format as part of a growth process of the institution?
Mahalo (thanks)! Jenny
Re: Real or perceived "value" of education?
hi there Jenny:

he seems to me to be saying:
a) there is a big hurdle to overcome for CBUs because they will have to produce quality materials - which is costly because time consuming, and will require them to redirect resources
b) it will be difficult for CBUs to match the quality of DTUs, so quality becomes the DTUs strength
c) it will be easier for DTUs to use their existing high quality teaching materials to teach on campus students

So DTU to DMU is an easier route than CBU to DMU.

I think that is what you had got to, so I think youre right, aren't you

Greville
7/9 Question to Prof. Rumble Joint ventures and franchising
Hello Prof. Rumble,
First, I would like to extend my sincere appreciation for finding the time in your busy schedule to visit our class. It is both an honor and a pleasure to be able to learn from you.
While I am not new to distance education courses, I am fairly new to the MDE program. I have taken courses that have included CMC and audio and video tapes. I must say that I prefer the asynchronous conferences most of all.
I have a question regarding joint ventures and franchising options.
    • First, I understand that a sharing of courses among institutions would reduce development costs, however, I am not sure that I understand how those costs would be apportioned. Would it make sense for the institution that develops the course to determine a cost per student and then use some kind of markup when licensing the course to other institutions? I'm sure they would want to recoup some of the cost of development in this way.
    • Second, in the case of franchising, would the owner of the course lease rights to other institutions? Would they include the possible students from the other institutions when figuring total student costs.
I will freely admit that I am not a dollars and cents person, I am more the technology type. I am very grateful to you and my many classmates who have insight into finances and can shed light onto this subject.
Regards,
Michele
Re: 7/9 Question to Prof. Rumble Joint ventures and franchising
Hi Michele, These are great questions. I am interested to hear Dr. Rumbles response. I believe that in the situation where a course is developed and leased to another institution that there would be some sort of royalty payment based on the number of students that access it just as if someone authored a book. In most cases, that would probably make it more cost-efficient for other institutions to use the materials. I think it will be interesting to see how initiatives like Merlot (for reusable learning objects), open course CMS's, and other initiatives will change the costs of developing courses. Jill
Re: 7/9 Question to Prof. Rumble Joint ventures and franchising

Just a comment on Reusable Learning Objects: what is the cost of indexing them, searching for them, etc. Won't it be easier just to do what we do already: individual academics who presumably know their field recycle their own work, and reference other people's work ... where they know it. That includes in designing courses as well as delivering them. But the search to find materials is often time-consuming too. I know there are lots of people who are very enthusiatic about reusable learning objects, but have we proof that this will lower costs ... ? I would love to see it, one way or the other, if it exists

Greville
Re: 7/9 Question to Prof. Rumble Joint ventures and franchising
Michele

There is not as far as I know any set pattern. There are a few cases where 2 institutions run a joint degree and both make inputs. Thomas could explain the UMUC-Oldenburg venture better than I. Exactly what arrangements happened when South Australia and Deakin shared a women's studies course I am not sure, for example.

You are right that most people want a pay out. That limits transfers. Its interesting that when Dublin City University wanted to use UKOU courses, they found that the cost was so high that it was better to create their own courses if there were more than 123 students on the course. The African Virtual University was going to take the best western courses to Africa, but the original partnership organisations in the US and elsewhere found that it was neither financially nor philathropically wirth their while, and they withdrew. RMIT Uni in Australlia does have a partnership, and I assume the bill is picked up by AusAID. That gives AVU the license to use the programme for I think five years. At the end of that time they will own the course - but since its on computing, by then it will obsolete and worthless anyway.

Greville
Abundance Vs Scarcity Mentality
As I read the thread on July 7th (and I know there have posts since then which may address this issue) and Papers and Debates on the Economics and Costs of Distance and Online learning, I perceive an underlying assumption of a scarity mentality versus an abundance mentality.

First for those unfamiliar with the concept, a scarcity mentality would say that the realm of distance learning is like a pie, DTUs, DMUs and CBUs are in competition for a slice of the learning pie and if one gets more then another gets less - there is only one pie. The abundance mentality would say that DTUs, DMUs and CBUs may be in competition but not necessariyl for a learning pie that is fixed in size. Rather, as they compete effectively, the pie will grow, there will be an abundance of opportunities.

The reason I bring this up is that the debate about whether if DTUs should move to become DMUs and whether CBUs can effectively compete is a good one to understand the fundamental strengths of each method and their strengths in the marketplace.

I would hypothesize that for the foreseeable future all types can be successfull if the continue to evolve, continue to improve the quality of their offerings, continue to change and not stagnate. Lifelong learning has become much more of a necessity. The need for education past high school and college has become more important. The need for education in developing countries is critical. All of these offer opportunites. I look at Phoenix University which has expanded from a small operation to a large operaiton in a short period of time as evidence that there is demand for the right learning for the audiences.

So the challenge is to recognize your strenths and weaknesses an institution, anaylyze the strenghts and weakness of your markets, look at opporuntiies and pitfalls and develop strategies that are built on these strenghts and pursue the opportunies while avoiding the pitfalls.

Greenville et al, I look forward to your reaction.

Dan
Re: Abundance Vs Scarcity Mentality
Dan: I agree in general that there is no scarcity market. If the world's population is going to grow to 8.9 billion (there has been a recent adjustment down because of the impact of AIDS), then gibven we have 6 billion now, and could have nearly 3 billion moreby 2050, there is clearly an enormous task to do to educate all these people. Also as you say, lifelong learning is a key factor now. Against that, population growth is not true of all societies: Italy for example, is no longer reproducing itself, nor the UK (except to the extent that immigration changes the balance). The US continues to grow, but nothing like some countries.

You could say, well, go international, if there are not the people in your jurisdiction, start teaching where there are people, hence of course the push for GATS (General Agrement on Trade in Services) which would open up the education market - but generally teaching internationally is a commercial venture done for profit.

Is there are market out there? Many of the new people in the world - the nearly 3 billion growth, and many existing people, are born into a life that the philospher Ted Honderich in "After the Terror" (Edinburgh University Press, 2002) calls half lives and quarter lives ... where life expectancy is low, and where the quality of life is poor. These people are out of the market equation if the market is driven by private as opposed to state funded interventions. And we are seeing how dofficult it is to achieve the Education for All targets already!

Finally, in a country like the UK, we are talking about saturation as institutions struggle to reach the government's 50% in higher education target.

So in principle, yes I agree with you but in practice I think its more complex

Greville
Factoring In Student Tuition
Prof. Rumble,

1)When considering projected income from student fees, we seem to have been considering it from the viewpoint of a single per-credit tuition rate. Is the concept of "in- state" tuition and "out-of-state" tuition unique to the United States or is a two-tier tuition rate a more global concept? How should it be factored in when considering cost analysis for U.S. distance education programs? It would seem that while the cost per student would be the same for all students, the income per student might vary.

2)It seems that while your 1992 article The Competitive Vulnerability of Distance Teaching Universities refers to CBUs, DMUs and DTUs, by the writing of your 1998 Competitive Vulnerability: An Addendum to the Debate you are also using the term 'mixed- mode.' You write "Over the years I have come to the conclusion that those looking at the costs of distance education relative to other approaches have generally failed to address the costs of "hybrid" systems - that is, "mixed- mode" or "dual-mode" systems that teach both by distance and traditional means." (p.107) Are you considering "hybrid," mixed-mode" and "dual-mode" as interchangeable or do you see distinctions between them?

Thank you,
Diane
Re: Factoring In Student Tuition
Diane

1)Is the concept of "in-state" tuition and "out-of-state" tuition unique to the United States or is a two-tier tuition rate a more global concept?

NOY JUST A US CONCEPT: LOTS OF SYSTEM CHARGE DIFFERENT RATES FOR CITIZENS OF THE JURISDICTION VS FOREIGN CITIZENS, UK UNIVERSITIES INCLUDED, THOUGH IN THE EURPOEAN UNION COUNTRIES, THE FEES CHARGED HAVE TO BE THE SAME FOR ALL CITIZENS OF THE EU.

How should it be factored in when considering cost analysis for U.S. distance education programs? It would seem that while the cost per student would be the same for all students, the income per student might vary.

YES; YOU JUST BUILD THE FACTORS INTO YOUR PLANNING MODEL.

2)It seems that while your 1992 article The Competitive Vulnerability of Distance Teaching Universities refers to CBUs, DMUs and DTUs, by the writing of your 1998 Competitive Vulnerability: An Addendum to the Debate you are also using the term 'mixed-mode.' You write "Over the years I have come to the conclusion that those looking at the costs of distance education relative to other approaches have generally failed to address the costs of "hybrid" systems - that is, "mixed-mode" or "dual-mode" systems that teach both by distance and traditional means." (p.107) Are you considering "hybrid," mixed- mode" and "dual-mode" as interchangeable or do you see distinctions between them?

I THINK ONCE I TRIED TO MAKE A DISTINCTION BETWEEN MIXED AND DUAL MODE BUT I CAN'T NOW RECALL WHY - TREAT THE TERMS AS INTERCHANGEABLE.

Greville
4. Thanks to Greville
Greville and all,

The conference with Greville draws to an end and I want to thank our visiting expert for his engagement during this conference. My message of thanks became a bit like a ritual (for Greville not so for the class). But I found the citation from a participant of the first course quite to the point:

"Here, Here; My head is still spinning. Drinking from the fire hose is the only way to describe the experience. If Greville remains a part of our UMUC experience I can see that many of us will be tapping his keg of knowledge often. Well done and thank you."



The comment turned out to be generic and may describe your experience as well. I believe Greville lives up to the highest expectations we had in the role of the visiting expert. Friendly, responsive, interesting, and as the name says, expert.

Since I made the experience that all conference are a bit different and it may be a pity especially for Greville to leave the virtual classroom without proper documentation. Though he might have saved his postings but probably out of context. As a special service and thanks I have attached a MindManager version of this conferences which better shows how the differet questions and responses hang together. (1)

This first time, I could not be sure that Greville would take up the role of the visiting a next time. I then remembered a Ndebele saying which reflected my hopes. It says: "Siabonga lingadinwa na kusasa." "Thank you; do it again tomorrow" (meaning in my case next term). To may amazement I begin to discover that the expression may in reality be a spell..:->

Thanks Greville, but also thanks to the others who asked the questions
Thomas

(Ndebele are a southern African nation.)

(1) The reason why I chose MindManager to document this conference is the lack of complete threading in WebTycho. (I requested several times that WebTycho should arrange for complete threading - which is technically easily done - but my request was turned down for reasons I could not unnderstand.) In the attached file you can choose between several display modes (Map and 'Gliederung' = table of content). Unfortunately our own way of posting messages contributes to confusion: often we have repetitive headers; not indication to whom the message is addressed, no signature who wrote the message. Especially if you want to write a summary this lack of structure makes the task time consuming and cumbersome. Swich to Map' for getting an overview and switch to Gliederung to have the colpletely threaded version of the conference.







Re: Thanks to Greville
Thomas

I have added responses to the questions that were hanging in the air from Cynthia for example!

As usual it has been an enormous pleasure to take part in this virtual conversation. It was Friere who said that as one progresses in education, so the-teacher-of-the students increasingly becomes the- student-of-the-teachers, and so it is in this conference as in others: Even the questions can spark one's creativity in thinking about new things, and expressing old things in new ways.

To the students then - all the best in your studies: Que les vayan bien.

Thomas, can you begin to think about how we carve up the new book for writing? I'll be back in the UK 9 August.

Greville
Re: Thanks to Greville
Thank you, Prof. Rumble for being with us. The week was all too short and just flew by. It has been a wonderful experience picking such a great brain. Please don't stop publishing your articles!

(And thanks for the candid comments about working with Sir John. They confirm what I have suspected for a long time.)

Also, thank you Thomas, for bringing us Prof. Rumble.
Re: Thanks to Greville
Prof. Rumble,

I want to thank you as well for being a part of our class this week. I truly enjoyed the experience.

Again, thank you for your time.

Warm regards,

Gary

?All that is gold does not glitter,
Not all those who wander are lost.?

JRR Tolkien

?How much better to
get wisdom than gold!
And to get understanding is to
be chosen rather than silver.?

Proverbs 16:16
Thank you and Safe Journey
Although Thomas has said this all much more eloquently than I, thank you for your time and your thoughtful replies.

I appreciate your ability to answer both the simplest questions (like mine on successful consortiums) and complex questions with equal graciousness and quality of information.

We have all been enriched by this "visit". Have a safe and productive trip to Rwanda and I am looking forward to your new collaboration with Thomas.

Til then have a lovely cuppa'

Tea--
Re: Thank you and Safe Journey

Its been a pleasure Cynthia
Greville