TAFE NSW Managers Association VET Practice Seminar

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TAFE NSW Managers Association VET Practice Seminar

• TAFE NSW Doing Business in the 21st Century
• Ron Wright

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What if....

• the public funds currently available only to
  TAFE are open to all RTOs through some form of
  competition?
• This is already proposed for some jurisdictions!

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What if....

• students or businesses could choose their RTO and
  public funds followed them?
• This is already happening.
• Vouchers under the Howard Government
• PPP places under the Rudd Government

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What if....

• a truly National VET training market is
  established . ie any provider from any state can
  operate anywhere in Australia
• NARA (the National Audit and Registration agency)
  has already been set up to allow RTOs to have a
  single National registration

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What if.....

• Students could enrol with Private providers
  without ANY upfront fee ?
• FEE Help starts in September and it allows
  eligible students to enrol in NRT Diploma and
  above courses using Fee Help (similar to HECS)

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What does it all mean ?

• All of these factors give the customer greater
  choice in choosing an RTO
• These factors also give our competitors greater
  access to public funds and to our potential
  students.

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TAFE Space
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TAFE Space
UNIVERSITIES
Enterprise RTOs
PRIVATE Providers
SCHOOLS
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The TAFE Space

• Nationally Recognised Training - TAFE Delivers
  38 Private providers 41, Others 21
• Apprenticeship and Traineeship training - TAFE
  delivers 63
• Unaccredited training TAFE delivers 7

Source Daemon MRA Research 2008
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TAFE Space

• We either need to seek out new TAFE spaces (eg
  non accredited training, workforce development
  etc)
• OR
• We need to compete better in the space we
  currently occupy

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Internet democracy

• 78 of people research a product or service
  online before buying
• Conversations are happening about your Institute
  right now
• The opinions and views have the power to
  influence your potential customers
• The more competitive the market the more that
  these views have voice

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What do our customers say?(WSI)

• Great quality but far too slow
• Bureaucracy is seen as too difficult to
  manoeuvre. Difficult to find out who to talk to.
• Teachers are seen as both strengths and
  weaknesses. Good teachers are really good but
  there are some bad ones. With smaller RTOs they
  are able to select the trainers they want to use.

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What our customers say WSI

• TAFE brand has credibility and good reputation
  and recognisable. Great from the HR managers
  perspective when selling training . Wins every
  time over private providers because staff know
  they can take it with them and that it is
  recognised. They like the TAFE stamp.
• Competitors are anyone and everyone. They are
  growing numbers. Industry select providers most
  often by
• word of mouth this is seen as having
  credibility
• from the internet

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TAFE NSW Doing Business in the 21st Century

• The biggest mistake would be for us to think that
  TAFE 21C is all about central units. It
  isnt....
• TAFE 21c is a positioning strategy to cope with a
  rapidly changing external environment.
• Institutes need to develop their own positioning
  strategies based on CUSTOMER NEEDS AND
  EXPECTATIONS