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Real options for virtual universities
Paul Lefrere
Institute of Educational Technology, O pen University,W alton Hall, Milton Keynes MK7
6AA, U.K.
Introduction
The term virtual university, or e-university, is used in various ways, a few of which
are described below. Some usages reflect significant changes in views about who
should be providing university-level education, who should be paying for it, what
it should comprise and treat, who should receive it, what entry qualifications they
should have and where, when and how their university-level education should be
available. O ther usages reflect further changes in the external environment,
notably the lowered cost and increased viability of at-a-distance alternatives to
campus-based education (particularly alternatives based upon information and
communications technologies, ICTs). Those changes have led to the emergence of
competitors with little history of involvement in university-level education. For
them, education is a market, and is subject to the same rules of business as any
other market. As in commerce in general, a well-funded ‘green-field’ organization
can enter an established market (university-level education) and quickly take a
market share from the existing players, since it does not have to bear the cost of
maintaining legacy systems or old products (courses). The cost of establishing a
virtual university is now so low that many such organizations are being set up.
Virtual, in the context of universities, typically refers to off-site teaching,
often termed virtual education. In my opinion, virtual education can and should
provide a rich set of learning experiences and opportunities that compare
favourably with traditional education. Unfortunately, online courses are equated
increasingly with an impoverished view of virtual education — one that treats
students as passive consumers of a restricted range of knowledge in ‘bite-sized
chunks’.
This chapter is concerned mainly with virtual education in a rich rather
than an impoverished sense, whether provided by traditional degree-awarding
public institutions such as campus-based universities, or by other organizations,
including virtual education institutions (defined below) and so-called corporate
universities. Its intended readership includes policy makers, people already
involved in virtual and corporate universities, and people working in traditional
educational institutions. The latter, in particular, may be unaware of the threats
that their institutions are now facing, or the opportunities afforded by changes in
conceptualizations of the nature and purpose of education, new technologies and
new working methods and organizational structures. The conclusions apply to
other activities associated historically with universities, such as research and
knowledge-transfer activities (as in virtual science parks).
E-mail
[email protected]
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Virtual education — the influence of Cardinal N ewman
Landow [1] discusses virtual education in the context of the idea of the electronic
university — the university as an institution in the age of digital information. He
begins his discussion with a passage from the autobiography of the person who
apparently coined the term virtual university, in 1852: John Henry Cardinal
Newman [2]. In the opinion of Newman, his alma mater, the University of
O xford, had a mistaken and inadequate notion of university education, equating,
for example, the ready availability of cheap printed books with truly
understanding those books. For him, “the mere multiplication and dissemination
of volumes” was one element of an inadequate “virtual education”; it was no
substitute for thought and discussion. For him, a real university was in essence a
place for minds to meet, and for students to experience personal teaching and
support comparable with that which he received from his much-beloved tutor.
Newman had to leave O xford and his tutor as a consequence of his conversion to
Roman Catholicism (there being restrictions at that time on who could attend
such a university; Jews, Catholics and women were amongst the disadvantaged).
His autobiography describes that departure. Landow comments that [1]:
To anyone concerned with Newman’s idea of a university and its relation to
late-twentieth-century developments in information technology,
educational practice, and institutional change, this scene of departure
conveys…[that a university] is first and b efore all else, … What Newman
describ es as “a place of teaching universal k nowledge. This implies that its
ob ject is, on the one hand, intellectual, not moral; and, on the other, that it
is the diffusion and extension of k nowledge rather than the advancement”.
([2], p. xxxvii)
It is interesting, in connection with the notion of spatial location, to consider the
analysis of Brian Kelley [3], who characterized much current thinking about the
development of universities in terms of the history of a fictional “Paradigm
University”, established 200 years ago. Since that time, the leaders of Paradigm
University have been fixated on its physical assets. The development of its site
over the years, and the architecture of the buildings on that site, reflect the
concerns of each generation. There is a noticeable lag between the needs of the
external environment and the provision being put in place on the campus. In
Paradigm University, no significant provision has been made, even in the most
recent building plans, for off-campus activities using ICT, such as control of
laboratory equipment at a distance, or distance learning. O ne wonders about its
prospects.
Newman [2] was committed to the idea of a scholarly community, and
ICT is recreating just such a community even as it destroys the importance of
physical place. Today it is possible for anyone with an Internet connection to
experience the pleasure, once known only to those with a conference budget, of
meeting like-minded individuals outside one’s institution, where perhaps no one
else shares or perhaps even understands your interests. An academic conference
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Real options for virtual universities
on the Internet with those who have similar interests can provide the nurturing
experiences, and the sense of collegiality, so hankered after by Newman.
Although some of what Newman advocated is becoming achievable by
all, we must be aware of any tendency to over-sentimentalize our early
experiences and strive for impossible or worthless goals in virtual universities. As
Landow ([1], p. 11) says:
Facing the possib ility of electronic universities, we tend, I would argue, to
sentimentalise present universities much in the way those who oppose
electronic text sentimentalise…the pleasures of reading a b eautifully
designed…leather volume…when in fact we and our students generally
read…pack ets of photocopied materials. Similarly, although we lik e to
think …that our educational institutions are characterised b y O xb ridge
tutorials, small seminars, and large amounts of contact b etween student
and faculty, …the great majority of American and European students
(many of whom, incidentally, are nonresident or attend institutions without
campuses or adeq uate student facilities) receive their education from large
lectures.
[Yet, encouragingly]…those comparatively few schools that maintain an
ideal of small seminars, close contact b etween student and teacher, do not
have to ab andon their ways in an onrushing electronic world,
…since…electronic text, hypertext, computer conferencing, and other forms
of the digital word support and supplement these activities, rather than
doing away with them.
As it turns out, perhaps ironically, …certain of our most fundamental
cultural assumptions about authorship, intellectual property, creativity, and
education depend in important ways upon particular information
technology… For example, although Newman thus clearly envisages b oth
the university he has left and the one he wishes to create as places of wise
speech, he assumes that this preaching, lecturing, instruction, and conversation will largely concern book s….
Landow [1] concludes, after some discussion, with an explanation of his stance:
…I remark on the way we fall short of our ideals of collegiality and close
and continuous interaction with students…to remind us that the digital
university is coming into b eing to remedy the shortcomings of the present
non-digital one. …[O ur] needs as teachers and scholars demand new
solutions, though lik e all solutions to major prob lems they promise to
confront us with a range of new questions and issues.
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Towards a working definition of Virtual Education
A recent Commonwealth of Learning appraisal of virtual education determined
that “The label virtual is widely and indiscriminately used around the world.
Indeed it is frequently used interchangeably with other labels such as open and
distance learning, distributed learning, networked learning, web-based learning,
and computer learning” ([4], pp. 2–3). The breadth of practice revealed in that
study gave rise to the following definition of a virtual education institution ([4], p.
11), as either a direct or an indirect player in teaching and learning.
(a) An institution which is involved as a direct provider of learning
opportunities to students and is using…[I C T] to deliver its programmes
and courses and provide tuition support. Such institutions are also lik ely to
be using…[I C T] for such other core activities as:
• administration (e.g. mark eting, registration, student records, fee
payments etc.);
• materials development, production and distribution;
• delivery and tuition;
• career counselling/advising, prior learning assessment and examinations.
That single-institution definition is wide enough to encompass most of
the aspirations of Newman [2] and those people influenced by Newman. The
Commonwealth of Learning also offers an organizational definition:
(b) An organization that has been created through alliances/partnerships to
facilitate teaching and learning to occur without itself b eing involved as a
direct provider of instruction.
Changes in the external environment
The literature on product innovation and technology management (e.g. [5–7])
provides ample evidence of the importance of being able to detect important
changes in the external environment of organizations, recognizing the significance
of those changes and taking appropriate actions.
The difficulty is that the initial signs of important change may be so
gradual that they are hard to spot against the noise of other signals in our
information flow. Handy [8] gives an apocryphal example of a frog that will let
itself be boiled to death if it is put into water that is heated slowly. More recently,
the management of a well-known global software company is said to have
attached little significance initially to the emergence of a new market in the form
of the Internet, although its importance was clear to people lower down in the
organization. Personal communications indicate that junior staff sent many
memoranda ‘upstairs’ but that it was over a year before their advice was heeded.
The organization in question was agile, powerful and sufficiently influential to be
able, within a year, to secure the position of leader in that new market, but many
other less-capable organizations would have gone into terminal decline.
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An example of lack of agility, lack of vision and lack of attendance to
external signals is provided by the reaction of the owners of ocean liners to the
emergence of air travel. In the early years of air travel there were no air-based
passenger services across the Atlantic O cean. The only way to travel reliably,
quickly and in comfort was by liner. As the technology of aeroplanes developed,
they became capable of inter-continental travel and passengers could begin to be
carried, but at huge expense. The number of ‘early adopters’ was low, and ocean
liners continued to be the dominant form of travel.
The introduction of the Boeing 707 jetliner saw the emergence of
cheaper, mass-market air services, with much lower levels of comfort than on a
liner. Each subsequent refinement to air travel reduced the comparative advantage
of sea travel. The scope for refining sea travel and increasing its speed was limited,
and slowly but surely the air-based alternative — with its greater technical
potential — became more sophisticated and more attractive, and there was a
change in competitive leadership. This is an example of the S-curve phenomenon,
which characterizes the disruptive changes that arise because of technological
transitions (e.g. ICT and the Internet, in the case of universities). Foster [9] wrote
a classic paper on this topic.
It took some years for it to become apparent to everyone that the market
for ship-based travel was in decline, and by then it was too late to do anything
about it. Interestingly, it seems that no ocean liner company became an airline, and
no ship builder became an airframe builder. Presumably this was because those in
the ship industry did not take the new industry seriously, and so did not value the
notion of diversification into the new form of transport. They did not recognize
they had two different and separable missions: providing fast transportation and
providing a high-quality shipboard experience. Speed won; ocean liners lost out to
aeroplanes. Travel became affordable for many people. Today, far fewer liners are
in operation, and they target a different market: the cruise market rather than the
travel market. In that market, people often fly on package tours to take a cruise.
They are interested primarily in the shipboard experience, not speed or indeed
getting anywhere at all (they return to their original destination).
Below I set out some possible lessons from this case study and analogy
with university education. Before doing so, it is instructive to look at the external
environment of universities, in which some important changes may be slow and
initially hard to detect, whereas others are more apparent.
At one time, most of the competition faced by campus-based universities
was from other campus-based universities, with similar visions, standards, time
scales and constraints. The level of competition was relatively low and so was the
rate of change. The emergence of distance-teaching institutions such as the O pen
University in the U.K. was seen initially as a temporary aberration that could
safely be ignored, and indeed for about 20 years that is exactly what traditional
universities did in relation to distance teaching. The slow rate of change, and
reluctance of campus-based universities to engage in teaching at a distance, created
favourable conditions for distance-teaching institutions. For example, they could
assume that if the initial enrolment was high on a distance-teaching course treating
a subject that was slow to change (e.g. Shakespeare), the enrolment would stay
high in subsequent years because no new competitors would emerge. A high
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initial investment could then be justified, making it relatively easy to offer highquality courses at a lower cost per student than in a campus-based institution.
More recently, we have seen significant changes in higher education in
general, including requirements to widen participation (to admit students from
previously under-represented groups, perhaps with lower qualifications), to admit
more mature students and to encourage lifelong learning [10]. As Hicks [10] has
observed, we can also see a broad shift in pedagogical emphasis within higher
education from teaching to learning. This implies a gradual move away from
lectures and towards the creation of ‘resource-based learning environments’ in
which students can take greater control over the time, place and pace of their own
learning. All those changes now have to be achieved in the context of the
emergence of new competitors and, in many cases, year-on-year reductions in
resources from public funds. In any single year, the effects of such changes may be
painful but tolerable. Taken over several years, their cumulative effect may be
difficult to bear.
Arguably, universities and colleges are still trying to be ocean liners,
combining quality of life, learning and research with (relatively) rapid progress
towards traditional degrees. A variety of competitive airline-like learning organizations are springing up to cater for new student demands. Technology and
economics are the main driving factors. The market for learning is growing and
changing. Continuing leadership cannot be taken for granted. And finally, the
institutional status q uo is being challenged — we need to decide what we want to
be in the future.
In terms of the liner analogy, the obvious choices are to be an airline, a
cruise operator, or to try not to change. The equivalent of a mass-market airline
could be a fast, flexible, customer-oriented virtual university, with a focus on webbased learning, competencies and professional credentials. The equivalent of a
cruise operator could offer a unique experience, such as a course that cannot be
taken elsewhere, or a resource-rich model as advocated by Cardinal Newman [2].
The latter might comprise highly personalized education, with an emphasis on
learning, quality, community and intellectual stimulation. In the U.K. and the
U.S.A. this might correspond to an enhanced and more expensive form of
O xbridge or Ivy League education, perhaps with a mixture of face-to-face and
ICT-based educational experiences, some of which might be on campus. The
equivalent of staying as we are might be to travel on the Titanic — apparently
unsinkable until it faced the serious challenge of travelling at night through foggy
ice-filled seas. O f course, that ship would not have sunk had there been a reliable
way to detect and avoid icebergs, or had it travelled in warmer seas.
Universities will have to choose one of these options, be faster and better
at what they do, or develop new income streams to allow them to survive the
challenges. Without new income they will have to do more with less. Their
income streams (e.g. from teaching, research and consultancy) are no longer
assured and many are finding it harder to retain their share of the student market.
Universities that offer only campus-based courses or open learning courses,
created by them alone, are under particular threat from organizations that can
meet the needs of a wider range of students, more effectively and at lower costs,
and which have greater resources and a higher income. The needs of a wider range
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of students can be met in many ways. For example, unnecessary obstacles to their
learning can be reduced by increasing the quality of their teaching, by providing
support and mentoring, and by ensuring that ready opportunities exist for
applying what is studied and thereby making it more meaningful. Lower costs can
arise by re-packaging existing materials or by sharing development costs. Higher
incomes can be obtained by offering courses only in high-demand areas, such as
management, or by having a far larger market, spread over several institutions or
even countries.
A recent article [11] suggested that universities that can adapt to meet
such challenges have reason to be optimistic about their future, but:
Even the…universities that have come closest to creating the core-andcloud university of the future find it difficult to define the core and to
manage relations with the cloud. …Universities…have expanded
hugely…while continuing to insist on their b roader civilising mission and
their right — no, their duty — to b e accountab le to nob ody. Nice work , so
long as taxpayers are willing to pay for it. [11]
The importance of either securing continued support from taxpayers or
alternative funding (e.g. via public–private partnerships) is clear. Many examples
now exist of universities that have entered into multi-national alliances and
partnerships, to offer courses to students in several countries. Increasingly, the
partners include commercial organizations not historically associated with
education and training, and bring new aspirations and new resources. They also
bring new conceptualizations of what is important, new expectations of what can
be achieved, and new ways of doing things. In some cases, this can lead to tensions
with academic partners. There can also be differences of view about the role that
technology can play in reaching solutions to the perceived problems. Although
few would contend that technology is sufficient to provide all the answers,
commercial partners may find it easier to effect changes in attitude that facilitate
the adoption and effective deployment of new and perhaps more appropriate
technologies and associated working methods.
We can expect a well-run virtual education institution to be more
competitive than a traditional university in three ways. (i) By developing effective
and sustainable working methods that have the backing of all involved.
O rganizations whose approaches are based upon the Viable Systems Model
(VSM) of Stafford Beer [12] seem to be particularly well-placed to do this [13]. (ii)
By operating on a sufficiently large scale, through alliances, partnerships and
marketing, to achieve economies of scale using quality-assured courses. (iii) By
having access to a sufficiently wide range of materials, expertise and facilities to be
able to achieve economies of scope.
Options open to universities
The change-related options available in practice to a particular university will
depend in part on four factors: (i) whether there is consensus across the organi©2001 Portland Press
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zation about what changes are necessary; (ii) the time it has available before it has
to change (slow changes may be more manageable); (iii) the financial, social and
other resources available to facilitate the change, including the intellectual capital
represented by people who have experience of change and (iv) the behavioural
systems of the organization.
A classic paper by Nadler and Tushman [14] offers a relevant framework
for modelling the last of these, an understanding of which is crucial before
embarking on major change. Using this framework, it is possible to determine
how well each of six systems fit in the organization. These comprise the fit
between, respectively, individual needs and organizational needs; individual needs
and task demands; individual needs and the needs of the informal organization;
task and organization; task and informal organization; and the needs of the
informal versus formal organization. The greater the congruence between each
area, the more effective will be the organization and the easier it will be to effect
change.
In trying to create new options for universities, we need to determine
whether any options are currently precluded, perhaps because of a lack of
congruence between its systems. We should also determine whether there are any
circumstances in which our current assets (whether physical plant and buildings,
good will, contacts, contracts, agreements, practices or general intellectual capital)
could become liabilities, for example because they represent commitments that
reduce our agility.
Where possible, a university should manage its affairs to reduce
unnecessary complexity (or ‘variety’, in systems terms), and so reduce the need to
manage changes along several dimensions at once. O ne way in which a university
can reduce complexity is by restricting what its staff can do externally. With such
an approach, staff might for example be unable to offer their services or their
lectures and other course components to competing organizations, or to
compromise the ‘brand’ of their university by allowing their affiliation to be
mentioned by other organizations. Without such a policy, a prestigious university
could find its name mentioned in the marketing literature of another organization,
thereby giving the impression that the courses of that other organization were in
some sense affiliated with or validated by the prestigious university.
Having put in place policies to reduce complexity, a university can act
decisively in other areas, bearing in mind the dictum (widely attributed to the
management theorist Peter Drucker) that “The best way to predict the future is to
create it”. A possibly more attractive rendering of that notion is the observation
by Gandhi that “We must be the change we wish to see in the world”. If a
university wishes to determine its own future by being a leader in creating all our
futures, it will need to be pro-active in its use of appropriate methods and
technologies, rather than re-active. A ‘follow-the-herd’ strategy, or even a ‘fastfollower’ strategy, will not be as successful in differentiating what it offers or in
restricting the scope for competitors to innovate in other ways.
A possibility for a university with a strong research tradition and
capable staff is to select those technologies and methods that best enable it to stand
out from the crowd. It could, for example, develop world-class expertise in a
research or teaching niche that is hard for others to enter, and promote its
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strengths with vigour. The world’s leading universities are likely to be safe from
competition in their fields of excellence, as long as they can generate sufficient
income to maintain their pre-eminence and make others aware of that preeminence.
A complementary approach is to work with other organizations in a
non-competitive way, to ensure that more effective use is made of their joint
intellectual capital. That co-operation could be informal, between researchers or
teachers, or could involve helpful codification of the experiences of others.
Codifying and sharing knowledge and expertise about teaching can reduce or even
remove the need for expenditure. By way of illustration, Draper [15] provides a
number of examples of how others managed to increase teaching effectiveness in
particular domains.
Co-operation can be taken to another level by entering into formal
partnerships with other higher-education institutions and/or commercial organizations, perhaps even going so far as to become a virtual education institution or a
distributed learning organization. In terms of the ocean liner example, this might
correspond to establishing a hybrid ‘travel service’ that provides inclusive
‘package tours’ for learners, with each component (the educational analogues of
travel, food, accommodation, local guides etc.) being provided by a different
supplier. O nly some of those components might be technology-based. This could
imply less time in class, more quality contact between faculty and students, the
separation of content creation and the delivery of learning services, and the
emergence of new services.
Conversation-rich virtual education
In principle, a single campus-based university can become a viable virtual
university if it uses ICT intelligently to offer an experience that compares well
with on-campus attendance to students who would not otherwise enrol with it.
Newman [2] tells us that the elements of such an experience include
knowing each student in the way that parents know their children — not in loco
parentis, but challenging and understanding them. The crucial elements of such an
experience include the following. (i) Knowing who everyone is: being able to
maintain a database of student profiles that adequately represents the current
status, progress, needs and abilities of each student; doing likewise for tutor
profiles. Both databases can then be used to inform interactions between students
and tutors, before or during those interactions rather than retrospectively. (ii)
Knowing where to look: being able to provide rapid access to resources (e.g.
people and materials) that provide each student with an appropriate level of
challenge. (iii) Knowing what to say: being able to facilitate conversations
between tutors and students. This includes being able to draw their attention to
significant elements in those communications, and providing an acceptable level of
immediacy and intimacy, and a general feeling of participation.
Regarding the technical aspects of facilitating conversations, ICT
provides increasingly convincing technical solutions to virtual education’s lack of
immediacy, intimacy and general feeling of participation. An example is ‘voice©2001 Portland Press
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over-IP’ (voice over the Internet), as offered by such companies as HearMe
(http://www.HearMe.com/products/distance/). Their products are typical of
others, offering quick ways to create an interactive classroom where students can
talk directly to presenters or form small study groups. Students can join
discussions directly through their Internet-connected computer or from any
standard telephone. Those discussions can be recorded, archived and retrieved so
that classes, seminars and events can be reviewed later.
O rganizations such as the O pen University are studying how to
personalize such discussions, in the sense of Newman. It is already feasible to use
ICT to automatically monitor spoken or written discussions on the Internet, and
to draw the attention of participants to similar discussions in other classes or
institutions. The ICT system can even interject via a computer-generated
discussion leader in the form of an avatar (a virtual human model with highly
articulated movements complemented by life-like expressions). ICT used in such
ways can bring like-minded people together, in real-time. By directing attention to
what they have written (in text-based discussion groups) or uttered (in spoken
discussion groups), it can also help to reduce the problem of information
overload.
If we improve the conversational element, we may facilitate collaboration between students. As the songwriter Malvina Reynolds put it in The Soul
Book (Schroder Music Co. 1967),
C onversation is think ing in its natural state.
Think ing is the conversation within us.
Words distinguish us from the blessed beasts.
Words began in human beings in the process of transforming gregariousness
into co-operation.
More formally, there is a research literature on what characterizes effective
conversations in education. Useful starting points are provided by Bohm et al.
[16], Laurillard [17], Isaacs [18], Harri-Augstein and Webb [19] and Winieki [20].
T he future
As yet, few organizations have succeeded in providing more that one component
of rich virtual education on any scale, yet many of the pre-conditions for success
are present. Relevant literature and expertise exists concerning the human aspects
(e.g. ‘learning conversations’ and ‘sense-making’). The technical building blocks
are emerging for building student profiles, for providing rapid access to resources
and for facilitating communications (see e.g. [21]). Also, hundreds of companies
are developing affordable, mass-market hardware, software and learning
materials. Such developments make it relatively easy for any university to set up
its own virtual university and to try to reach new markets, across the globe,
offering ‘borderless’ education, research and consultancy.
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We can anticipate that virtual universities will become widespread and
widely accepted. As and when this happens, they will be able to offer a wider
range of courses, and/or courses with a significant degree of personalization.
Further, they will be able to do this quickly and economically, even if individual
courses have low enrolment and are of a specialist nature or need frequent
updating. The success any given virtual university has in attracting students will
depend on the strength of its offer and on how effectively that offer is marketed.
We can expect universities that take Newman seriously, and which treat students
as individuals, to gain a reputation for quality. Likewise, we can expect wellknown and respected universities with strong local partnerships to do better than
lesser-known institutions with weaker brand images.
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