There is little question that education is one of the most important services to ensure we evolve and grow as a society. Education can be considered a service, and services require resources. Within the modern, free-market, capitalist world, “resources” means money. The higher-education mission remains the purpose, but do not confuse it with the practicality of survival or the ability of the institution to continue to deliver that service to the student (customer).
Yet, the economic challenges facing institutions of higher education are significant, and the divide between revenue and expenditures continues to separate. These challenges increasingly demand creative management to ensure viability and sustainability, just like a business.
Taxes across many jurisdictions are pronounced, and donations, grants, and charity are largely insufficient to support the costs and maintenance of higher education institutions and teaching staffs. So, the primary means to pay for college lie with continual escalations of tuition and fees borne by the student body. The student body is finding it difficult to absorb those increasing costs, especially in the face of questions on the return on investment and preparation for the job market.
So, what are institutions to do? They must think creatively and adapt to meet changing economic and environmental factors and students’ expectations. That means more focus on costs and expenditure, just like business. It also means exploring alternate revenue streams and creative finances, just like business. Increasingly, advanced technology provides the key to creative business thinking. Institutions are utilizing new, aggressive technologies to improve efficiency and reduce resource waste. They are utilizing technology to improve the student (customer) experience by embedding analytics to manage systems and support in real time, all focused toward maximizing successful outcomes.
Finally, the economic squeeze for economic resources in higher education is breeding competition for those customers across the institutional landscape. Institutions are increasingly leveraging advanced marketing and social media technologies to maximize outreach to prospective students. The new costs are reviewed as a necessary investment, or a cost of doing business. Without a solid and broad enrolled student foundation, the institution could not exist. It may have been unheard of 20 years ago for a university or college to go out of business, but institutions are failing, and in increasing numbers, today.
Institutions that are creative, open to the advances that technology can provide in maximizing economics, and seeking to manage their operations with an eye toward efficiency will survive and thrive and continue their purpose-driven mission to educate. Other institutions may be lost as a necessary corrective market action.
Learn more, download this higher-education whitepaper to get a more in-depth understanding of how your institution can embark on your digital transformation journey.
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