Thriving or Surviving in Challenging Economic Times: Retrenchment is Not an Option Accomplishing You

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Thriving or Surviving in Challenging Economic
Times Retrenchment is Not an OptionAccomplishi
ng Your Enrollment and Financial Goals During
Tough Economic Times
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Introduction

• Dr. Ed Gould Presenter
• Vice President, Academic and Government Affairs
• Executive Director, Center for Internet
  Technology in Education (CiTE)
• Former President of San Joaquin Delta College,
  Monterey Peninsula College, and Victor Valley
  Community College
• Former Vice Chancellor of Student Services and
  Special Programs at the California Community
  Colleges Chancellors Office

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Introduction - eCollege
eCollege Designs, Builds and Supports Some of the
Most Successful, Fully Online Degree Programs in
the Country

• Hosts the Most Online Accredited Degree Programs
• Supports More Students Through Its Data Center
  than Any Other eLearning Provider
• Customers Include Publicly-Traded for-Profit
  Institutions, Community Colleges, Public and
  Private Universities, School Districts and State
  Departments of Educations

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Introduction - eCollege
eColleges Integrated Technology and Service
Solution Helps Its Customers Build and Grow
Programs That Meet Their Academic, Enrollment and
Financial Goals

• IT Infrastructure Reliability, Scalability and
  Security
• High Level of Support Students, Faculty, IT and
  Administrators
• Pedagogical Leadership Academic Integrity
• Accessibility Exceeding the Standard

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Overview of Discussion
I. Hard Economic Times II. Revenue
Opportunities III. Cost Challenges
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I. Hard Economic Times Are Here
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Hard Economic Times Are Here
A Look at the Headlines
State and Federal
Education K-12 and Post- Secondary
IT Programs
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And Hits Post-Secondary Education

• Theres a hole in the bucket.
• On one hand, in the face of the recession,
  colleges and universities are seeing record
  enrollment
• on the other hand states are dramatically
  reducing their higher education spending.

University Business, 03.02
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II. Driving Revenue Via Online Programs
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Succeeding Despite Tough Economy
The for-profit colleges have proven to be
aggressive marketers and if University of
Phoenix Online is any indication, the future for
online education at career-focused schools is
quite bright.
The Chronicle of Higher Education, 08.01
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What the Analysts Are Saying
"From my perspective, customer-orientated
curriculum and online learning are the two mega
trends in the higher education
industry." -Peter Martin, Managing Director,
Equity Research, Jeffries Company, Inc.The
Wall Street Transcript, Education and Learning,
10.07.02
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But Its Not Only the For-Profits
Bismarck State College leads the state of North
Dakota in online learning having grown
enrollment in excess of 100 for more than four
straight years. -Eduventures Report, 9.02
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The Double Squeeze
Pressure on Both Sides of the Ledger
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Revenue Opportunities
Distance Ed Other Grants

• The Good
• Not tied to state budgets
• Best of all possible worlds

• The Bad
• What happens when the money runs out?

• The Solution
• Inform
• Involve
• Transition
• Write another one

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Revenue Opportunities
Find a niche market with little competition

• Read the want ads
• Need expertise
• Take advantage of skills and programs developed
  unique to your institution

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Revenue Opportunities
Form Consortium or Pool Buying Power

• Share courses or Programs
• Share policies (reciprocity agreements)
• Pool resources and purchase pre-packaged or
  custom-made courses

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Revenue Opportunities
Flexible Scheduling Share

• Think outside the box!
• Fit Schedule to Student Needs
• Practice Collaboration with other Colleges
• Share Faculty
• Consider a Lead Institution Model

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Revenue Opportunities
Build Alliances with Corporations

• Corporate Training Dollars are Shrinking
• Online Companies that serve them are disappearing
• Continual Training Needs

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Revenue Opportunities
Blended or Hybrid Courses

• An opportunity to save on Capital Investments
• Parking Problems?
• How to jam more students in high demand times.

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Revenue Opportunities
New Enrollment Sources to Gain New Revenue Sources
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Revenue Opportunities
Current Students

• Demands are Changing becoming a consumer world
• Flexibility
• Like Courses at Convenient Times for Family and
  Work Demands

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Revenue Opportunities
Corporate Workforce Training

• Read the want ads
• Need expertise
• Take advantage of skills and programs developed
  unique to your institution

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Revenue Opportunities
Continuing Education

• Recognize the needs of new Citizens
• Non-Credit Courses are Ripe for Online
• Meet the Need for Lifelong Learning

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The Online Student
Fits the Working Adult, Non-Traditional Student
Profile
Key Profile Elements
Source eCollege Whos Online Research
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III. Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
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Success Life Cycle
Institutions Seek Growth ThroughDistance
Learning Programs
Institutions Determine Optimal Strategy for
Delivering Direct and Indirect Services
Student and FacultySuccess Drives Institutional
Success
SUCCESS
Implementation of Integrated Direct and Indirect
Services Drives Student Enrollment and Empowers
Faculty
Source Eduventures Report, September 2002
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Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
TCO
Quality Drivers
FacultySupport
StudentSupport

ProgramSupport
TechnologyInfrastructure


Marketing

Total Cost of Ownership
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Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
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Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
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Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
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Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
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Cost Challenges
Minimizing Cost Risks - Total Cost of Ownership
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Variable Model
Outsource
Enrollments

• Revenue directly variable with enrollments
• Variable costs allow the matching of revenue
  with expense

Dollars
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Variable Model
Outsource
Enrollments

• Variable costs allow the matching of revenue
  with expense
• Minimal upfront investment allows for profit
  from initial enrollments

Dollars

• Drives profit at all levels of enrollment

• REDUCED FINANCIAL RISK

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Fixed Model
Do It Yourself
Enrollments

• Costs increase in steps
• Results in periods of losses and profits
• Substantial investment to get started

Dollars

• Inaccurate enrollment expectations

• INCREASED FINANCIAL RISK

0
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The Double Squeeze
Pressure on Both Sides of the Ledger
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