When courses are free online, what’s left for universities to sell?

When some of the world’s most prestigious universities – including Harvard and MIT in their edX venture or Stanford and Princeton through Coursera – start putting courses online for free, it tells you one thing for sure – whatever they are selling, it is not their course content. Australian universities…

Stzc38k6-1341972595
Universities sell more than just lectures and lessons. Flickr/Butler University

When some of the world’s most prestigious universities – including Harvard and MIT in their edX venture or Stanford and Princeton through Coursera – start putting courses online for free, it tells you one thing for sure – whatever they are selling, it is not their course content.

Australian universities are watching the movement in online open education closely, and with another 15 of the world’s top universities joining the Coursera venture this week many are asking how they can compete. But first, we must ask a fundamental question – what is it that universities are really selling?

Selling points

Though content is clearly important to any higher education course, it is not necessarily distinctive to any particular university. In degrees oriented to particular professions, course content will tend to be similar between institutions – they all teach what is required for professional admission. Similarly, in many disciplines there is established basic knowledge that must be taught.

The detail will vary, but there must be considerable overlap between universities. The long-standing commercial textbook market reflects the fact that core course materials can be shared between institutions, and can also be used by people who are not enrolled in any course.

Online higher education course materials, however, offer more than just the textbook-like reading materials put online. They also have video lectures, sometimes from big-name professors from high-prestige universities. In theory, these videos could replace lecturers in Australian universities, who say much the same thing, but perhaps with less authority and eloquence.

Bare bones teaching

The potential for putting teaching online seems greater in Australia than in the United States, the source of most free online education. Australian academics show a relatively low interest in teaching compared to research. And reflecting university cost pressures, permanent university staff have played a decreasing role as university teachers over the past 20 years.

Casual and temporary staff do much of the teaching in Australian higher education. Universities sometimes contract out teaching altogether. For example, the private higher education provider Navitas delivers Curtin University’s business courses in Sydney.

Casualisation and contracting out of teaching suggest something rather surprising: that though teaching is an essential element of a university, in practice universities are happy to let people with whom they have only a slight employment connection do this work. University teaching is barely a profession in the usual sense of that word, with most academics lacking formal teaching qualifications and student surveys routinely suggesting significant room for teaching improvement.

So although course content and teaching are critical to higher education, they are areas in which there are not only alternatives to university providers, but universities themselves are willing to let others do much of the work.

Certified skills

What universities have not and legally cannot outsource is the awarding of credentials. Qualifications are highly regulated by government. Anyone can organise and teach a body of knowledge, but only organisations that meet detailed government requirements can award qualifications.

It is this credential awarding power that lets universities package up and sell a range of other services to students, some of which they provide themselves, and some of which they can bring in from other organisations.

How safe is this qualifications-awarding power from cheaper competitors overseas? So long as employers recognise government-approved Australian qualifications above all others, this will substantially protect Australian higher education providers from international competition.

The question that nobody can answer yet is whether edX type courses will start to be valued in the labour market. Assessment is becoming more common in free online courses from the United States, but course content developed by Harvard or MIT will not lead to a Harvard or MIT degree.

As for Australian universities, the credential is core to what those two institutions sell students, and they will not give away or even sell such a valuable commodity to all who want to buy. Nor are these universities likely to offer Australia-specific courses, which will limit competition for Australian higher education providers.

Experience just as important

It would also be a mistake to assume that universities are just selling knowledge, and that therefore they are vulnerable to competition from other knowledge providers. Especially for school leavers, university is a social and personal development experience as well as an educational experience.

Happiness studies suggest that work is something of a let-down after an enjoyable few years at university. The social and personal development aspects of higher education are one reason why universities fought hard to be allowed to charge student amenities fees.

In a world where universities have online competitors, non-academic activities are part of their core business.

Employers too might value the on-campus experience. Some international research suggests that most employers rate on-campus degrees above online qualifications. In Australian employer surveys, factors like interpersonal and communication skills rate most highly in choosing which graduates to hire.

Face-to-face teaching and student interaction on campus would seem to be a more promising environment in which to develop these skills. Whether in reality online students are more lacking in interpersonal and communication skills is hard to say, but as with other difficult-to-measure skills employers may use a proxy like on-campus education.

Developments such as edX and Coursera are undoubtedly the big new thing in global higher education. But so far they are as much a complement to what Australian universities offer as an alternative.

While Australian universities have control over the most valuable credentials in the Australian labour market, and while they offer students an attractive broader experience, we can expect their long-term growth to continue.

Join the conversation

31 Comments sorted by

  1. Sean Lamb

    Science Denier

    I dare say when audio cassette language courses were released people thought the market for language tuition would collapse.

    Somehow bricks and mortar language courses struggle on.

    report
    1. Dale Bloom

      Analyst

      In reply to Guy Curtis

      “Government funded” means taxpayer funded.

      The government does not make money out of thin air, and then as an act of kindness, give it to universities. The government gets money from the taxpayer, and then, whether the taxpayer wants it or not, the government gives this money to universities.

      Then universities keep much hidden from the public, they actually have few required standards except standards they themselves set, a university student may rarely talk to a lecturer, many students find…

      Read more
    2. Melissa Bruton

      PhD - Landscape Ecology/Ecophysiology

      In reply to Dale Bloom

      "Then universities keep much hidden from the public"... this is very often not the choice of the university/academic but an unavoidable consequence of limited and highly competitive research funding and the commercial publication process. Open access publishing starts at around $2000, up to about $7000 PER PAPER and unfortunately this is simply not a feasible cost for most studies. This is a copyright and funding issue, not a university choice. In my experience, most academic staff want to publish…

      Read more
    3. Dale Bloom

      Analyst

      In reply to Melissa Bruton

      Free university lectures have been available for some years on the internet. A student can see a typical lecture from Berkley, Harvard, MIT, Yale etc.

      http://www.academicearth.org/universities/

      It is similar to try before buying, and comparing that to Australian universities, they are far behind. In Australia, the universities seem to rely more on hype, advertising campaigns and portrayed image, rather than actual quality of teaching and education.

      Australia universities are now so PC there…

      Read more
    4. Guy Curtis

      Senior Lecturer at School of Psychology and Exercise Science, Murdoch University

      In reply to Dale Bloom

      “Government funded” means taxpayer funded. - Correct. For these funds taxpayers get a supply of doctors, nurses, teachers, and other vital social-service professions. Business, with their company taxes, get a supply of qualified and more productive employees. On average these university-trained professions earn more money and thus pay higher taxes to government over their lifetime. Economic modelling constantly shows that the return to governments of money invested into universities is returned to…

      Read more
    5. Dale Bloom

      Analyst

      In reply to Guy Curtis

      Terms such as “government spending” and “government funding” are widely used by academics I have noted, but they should be saying “taxpayer spending” and “taxpayer funding”.

      I have seen a testimonial apparently written by a student saying, “I came to … Uni with unclear ideas of what to expect, learn and accomplish.”

      There is a national HECS debt, and education is becoming one of the most expensive costs to an individual person (or their parents). Student drop out, and students beginning a course…

      Read more
    6. Guy Curtis

      Senior Lecturer at School of Psychology and Exercise Science, Murdoch University

      In reply to Dale Bloom

      Dale, I'm not sure why you are unaware of how much information there is out there about university for students before they enroll but let me list some of the things. First, all universities have open days - usual some weeks before school students make their course preference decisions in year 12 - these Open days typically have a range of free public lectures - I've given one once. Second, all universities have regular publicized free public lectures. Third, go to most Australian university website…

      Read more
    7. Dale Bloom

      Analyst

      In reply to Guy Curtis

      Guy, I don’t pay much attention to testimonials either, because testimonial can be highly selective, and state positive things only about a course. But when a student who enrolls in a course and says they have no idea what to expect in the course, it is cause for concern.

      Costs of student attrition at universities (estimated to cost $1.4 billion per year) seems of little consequence to universities and is rarely mentioned, but without proper preparation of students, that cost is likely to continue…

      Read more
    8. Guy Curtis

      Senior Lecturer at School of Psychology and Exercise Science, Murdoch University

      In reply to Dale Bloom

      Universities do pay a lot of attention to retention and attrition because of their reliance on income from fees. Universities I have worked at have introduced all sorts of initiatives to help and retain students who struggle to adjust to study. In a couple of places I've taught students start in general arts or science courses where psychology is one of the subjects they may chose at 1st year and may major in later. In those universities, and I'm sure others are similar, we did what we could to make…

      Read more
    9. Dale Bloom

      Analyst

      In reply to Guy Curtis

      Guy, online education could significantly reduce education expenses for students such as rural students, depending on how it is carried out. Learning from a computer screen has both disadvantages and advantages to learning from a book, or learning from a teacher in a classroom. I learnt that when formatting information on screens for SCADA systems.

      There are a variety of techniques that have to be used to effectively format information on a computer screen.

      I can also tell in 2 seconds if…

      Read more
  2. Dirk Baltzly

    A/Prof. in Philosophy

    Coincidentally the NYTimes ran some interesting reflections about on-line course content yesterday.
    http://www.nytimes.com/2012/07/20/opinion/the-trouble-with-online-education.html?_r=1&ref=opinion
    The author makes the point (which is obvious to anyone who has done some teaching) that even in a large lecture theatre a good lecturer is one who adjusts the pace and focus of what is being presented to the needs of his or her audience 'on the fly'. Sometimes you do this with methods like peer instruction…

    Read more
  3. Danielle James

    retired

    Indeed, valid comments have been made.

    However, a bad lecturer can see students drop out in droves.

    I tutored at university when it was free - ah ...they were the days!

    We had students with excellent matric results in science subjects wanting to do law. Unfortunately, many could not write well - in some cases, seemingly at all (writing a paragraph without a full-stop was not uncommon). The university resolved this problem by requiring such students do remedial classes and pass a first…

    Read more
  4. Eric Huttlestone

    Public

    I'm not an academic, neither did I have the financial resources to consider a University education. Fortunately FREE higher education is not new.

    Bill Gates, Yahoo and similar philanthropists provide excellent learning material at: www.khanacademy.org

    It should be noted that very few (2%) teacher's are in fact, good teachers. The Khan academy is able to enlist the best teachers and provide consistent methodology.

    This trend of e-education will be the norm in years to come.

    The saving in cost to the individual and the community (Planet) in general has the potential of being enormous!
    The benefit to impoverished nations is beyond measure!

    The greatest burden on society is the lack of education.

    The challenge is qualitive delivery.

    report
    1. Danielle James

      retired

      In reply to Eric Huttlestone

      Eric is absolutely correct.

      Education should be available to all. Education is a human right.

      Many problems in the world are due to ignorance or deliberate disinformation peddled by certain governments.

      We have all seen individuals who had the capacity, but not opportunity nor circumstances to do well at university ... and undoubtedly contribute to society. As a society we should not see these people fall through the cracks.

      Many who enrol for free courses will find they have neither…

      Read more
    2. Eric Huttlestone

      Public

      In reply to Guy Curtis

      Precisely my point Guy.

      It's not that it's an impossibility but a more viable accreditation process must first be introduced (discovered). It's not beyond us.

      With change comes the necessity of new initiative, we're on the right track!

      report
  5. Bruce Waddell

    logged in via LinkedIn

    It will be a sad day when universities no longer have the confidence of the general public and employers. That must remain a first focus of them. But take note there are benefits to the university offering free education that may be overlooked in the haste to condemn the practice.
    Instead of relying on a student body selected from children hot housed in secondary schools the university offering these courses has opportunities, first to discover exceptional talent, and secondly to discover self motivated students. At any rate I think many universities under rate their real value in training minds. It is my experience that after a few years the discipline studied is of lesser value to employers than study itself. In other words lots of people become masters of areas outside their initial field of study. Qualifications being a start to life's journey and not the end game.

    report
    1. Eric Huttlestone

      Public

      In reply to Bruce Waddell

      I certainly agree Bruce.

      The very presence of a good university inspires exceptional achievement and I for one envy those to have been educated in the ambiance of higher learning however, for practical and economic reasons, university education must become more accessible.

      The higher quest is to discover otherwise untapped brilliance.

      I would suggest universities retain a very credible accreditation process but much of the time should go toward research and development.

      report
  6. Rob Crowther

    Architectural Draftsman

    In 2010 I taught myself Calculus.

    I obtained the book by Stewart, some notes by Paul Dawkins and stared with MIT lecturers by Jerison. MIT does not use Stewart’s calculus so I had to use my initiative in coordinating reading and lecture viewing.

    That was the first half of the book. For the second half of the book I then went on with more Dawkins notes and lectures by Frenkl. In the end I did not worry about the lectures. I had become used to the writing style of Stewart and developed my own…

    Read more
  7. John Robert Davidson

    Retired engineer

    Given the growing diversification of educational institutes there is a strong case for externalizing the testing process professional qualifications. There is also a strong case for removing "years of study" requirements for membership of things like the institute of engineers. Such a development provides a mechanism for this country to take advantage of free online courses.

    An important part of education are the intangibles. What a tutor/lecturer has to say that has no relevance to the course or passing tests. Arguments about the meaning of life and everything with equally immature students from other faculties and...

    Universities need to rethink what they actually have to sell and what people need to prepare them for (and keep them going) in a rapidly changing world.

    report
  8. Gil Hardwick

    Anthropologist

    I doubt this trend will take real root among employers, or indeed among colleagues and peers who require practical skills in research quite as much as observation, critical awareness and analytical skills.

    NONE of that is to be had from what the old timers around the bush used to call 'book larnin'. Veterinary Science in Australia is a telling example, and I cite it often, pioneered by the great Dr Hugh McLeod Gordon as a sleeves-rolled-up, practical working discipline alongside practical working…

    Read more
  9. Peter Hewson

    Citizen

    A couple of observations.

    Firstly. In the past there was the expression where one might have said that "I read Economics at The University of Sydney". The implication being that a scholar did a fair amount of self-teaching. Just how much knowledge one acquired in this manner I have no idea. Perhaps it was just a pompous statement. Perhaps not.

    Secondly. When I can I follow the PBS Newshour programme. They have been running a serious of presentation on the issue of poor education in the US…

    Read more
  10. Danielle James

    retired

    Obviously, for many science subjects, including medicine, attendance at a university is essential. Perhaps this would provide opportunities for universitiers to gain reputation in particular specialites.

    Another issue that has not been addressed is that of access to primary sources and documents. In depth research in both history and politics requires this - even at undergraduate level. Unless such material is accessible online, archives and connection through/via university are the best research resources available. Unfortunately, we have all seen bias in secondary and tertiary material. To obtain a clear understanding of events, primary material read within context of space and time is essential.

    report
  11. Craig Edwards

    PhD student (completed awaiting examination), casual philosophy lecturer

    Personally, I think the 'online course' concept is massively overblow by people who either lack thorough immersion in online culture, or lack familiarity with tertiary education.

    The ability for students to track down the lectures of exceptional teachers at top universities can be a great boon for some, and online provision of materials can free up much-needed dollars from admin. But the notion that online lectures will gain significant popularity as the primary basis for a unit is insane…

    Read more
    1. Craig Edwards

      PhD student (completed awaiting examination), casual philosophy lecturer

      In reply to Craig Edwards

      I should note my comment above is aimed at the variety of overhyped 'online education' news articles that have been appearing with increasing frequency - not the perception of online education by those in the academic community or this site.

      report
  12. Antony Howe

    Retired uni history lecturer

    It is disappointing that no one seems to have focused on the statement (accurate I believe) that Aussie universities are not really interested in teaching, but effectively out source it to casuals and temps. This is true, I have been hired on that basis by three universities in Sydney (on and off). Despite being rated in the top 10% of teaching staff in one Faculty, when I applied for a real job there I was not even interviewed. All that counted was publications, teaching quality and the student…

    Read more
  13. Marcus Barber

    logged in via Twitter

    I think we need to be careful about this idea that 'research; matters to anyone but those who work in Universities.

    I think we need to be careful in thinking that 'credentials' are the sole domain of the University sector, in particular the form of credential.

    I work with an awful lot of employers. Most have seen examples of so called 'degree qualified' graduates with poor communication skills and unrealistic expectations of their overall skill sets. A strong (though perhaps not majority) view…

    Read more
  14. Esther Theiler

    Postgraduate student

    While some on-line learning can be helpful I agree that it is not an adequate substitute for the benefits of an on-campus education. It's not only universities who employ casual and temporary staff. Who do you think work for some of these on-line education companies? And not all provide high-profile academics - the trend in educational philosophy of some of these providers (who have entered into partnership with Victorian universities) is towards employing "facilitators" in learning rather than actual academics.

    report
  15. Michael Lenehan

    retired

    Publicly Funded Universities "selling product" on line and trying to work out their best "business model"!!!!!!!!!!!!

    Whatever happened to the revolution?

    It all sounds a bit "anti-educational" for an old fogey like me who went was a doctoral student way back in the 1970s when you typed up your thesis on 15th century pre-Shakesperian poetry.

    How quaint it all was back then.

    What was that Sir Thomas Wyatt said?

    Whoso List to Hunt

    Whoso list to hunt, I know where is an hind,
    But…

    Read more