Are universities of the past still the future?

• Universities are moving to make quality digital learning a part of their core offering. Some are partnering with online learning platforms. Others are using media production companies to produce slicker, more engaging content. A few are partnering with or acquiring digital-first universities with fully formed online programs ready to go.
• The concept of the “flipped classroom” is widely accepted. Content is disseminated online, either asynchronously (recorded or self-guided) or synchronously (“live” or together in time but not place), but not via mass in-person lectures, with learning reinforcement happening via classroom discussions rather than via self-study.
• Digital is becoming increasingly embedded in in-person content delivery. Gamification is being used to engage students in applying and testing their learning. Digital simulations and models are allowing students to experiment cheaply and safely.  

• Benchmark studies, such as the UK’s Student Academic Experience Survey (pdf), show that the proportion of dissatisfied students is growing and the proportion of satisfied students is declining. If customer choice and switching become as easy as they are in other industries, universities will no longer be able to ignore customer satisfaction.
• Universities around the world are cocreating bespoke programs for specific employers or to satisfy emerging workplace needs. But, just as fast, employers are providing their own accredited training in areas of innovation because universities have been too slow to do so.
• Pathways are starting to blur. In the US, to reduce the cost of their degrees, many students are undertaking their first two years in a community college (or completing general studies while still in high school) before transferring into a more prestigious university to graduate.   

• Already, some online course providers provide a “pass or your money back” guarantee.
• Detailed comparative metrics on the outcomes for providers and their courses are available from a mix of salary data, from the market and statistics, and from regulators or industry bodies.
• Attempts to measure educational value addition are becoming increasingly sophisticated. In the UK, K-12 schools are measured in terms of a value-added score, on the basis of math, reading scores and progress, which feeds into the published rankings that parents use to select schools. In the US, the National Center for Education Statistics publishes data on retention and graduation rates. 

• The outlook for government funding for research remains positive. Yet, every university we spoke to told us that government funding does not cover the costs. So, in the face of financial pressures, universities need to seek additional potential revenue streams.
• In Australia, the Prime Minister has recently announced the Universities Trailblazer program.  It will invest AU$247m in the creation of university research hubs, incentivizing researchers to collaborate across institutions and in partnership with businesses, for greater commercialization. This will help Australia to address the challenges of national importance, such as defense, clean energy and medical products.
• In the US, academic researchers are collaborating in entities, such as Boston’s CIMIT consortium, which includes academic medical centers, universities, and a growing network of national and international affiliates who collaborate to drive health care technology commercialization.

• Some universities in emerging markets have a long tradition of partnering with overseas universities, although mainly only around student exchange and collaborative research.
• Many are already partnering with online learning platforms to develop and deliver courses online, as a means to scale up and reach more of the population.
• While certain Western universities are currently seeing overseas students exiting their campuses, especially from countries such as China, we are also seeing the emergence of new partnerships and modes of delivery into these markets. 

Macquarie University, a public research university in Sydney, Australia prides itself on being an innovative and progressive university, challenging conventional thinking around higher education delivery.  It was quick to recognize the seismic shifts occurring in its operating environment and that it needed to change rapidly to continue to survive and thrive in future.

Hence, Macquarie University embarked upon a journey of digital transformation, embracing new and emerging technology to enable ways of connecting, engaging and collaborating, as part of a new operating model that supports the university’s strategic priorities.

A cross-functional EY team worked with Macquarie University to co-design a 10-year digital vision, strategic plan and prioritized roadmap. They started by considering potential future operating environments, understanding the ‘art of the possible’ from visionaries in education and other sectors and seeking views from faculty, administrators and students around pain points, preferences and priorities.

Listen to Macquarie CIO Tim Hume giving a first-hand account of key drivers, challenges, and success factors in undertaking such a significant transformation.