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Business models for open education: three takeaway from the D-transform project
We have to start with what a business model means and we have to adapt that definition
which comes from business to the role of institutions, some of which are public sector institutions
and some of which are private.
So it's basically a means of capturing value, it has to link the sales, a commercial work
but universities produce material which students consume, to the what are called the factors
of production which is not a title that academic professors would like to be called
but it's the business term and business models basically are a key part of an institutional strategy.
So they can't be ignored: basically it's about money and even in the public sector
- as we know in Europe - money is very important, and the lack of money is more important.
Courses cost money and the money has to come from somewhere,
and I detect in many countries reluctance to actually engage with this issue
and this has not to do with the recent budget cuts and recessions,
but it's a tradition in the public sector, where the private sector actors,
which some people like and some people don't like, are much more realistic about money;
and simply money has to come from three or four main sources.
In some countries in Europe the money comes from the students, the students pay fees
and very often international students pay very high fees.
The money may come from the government and that again that depends:
some universities just get an annual grant and they're told to teach as many students as they can;
not a model I favour, because it tends to produce rather poor courses.
Many other countries have a model where each student carries a little package of money from the government,
and so the university gets more students and it gets more money:
that's quite an attractive model for universities.
And then … these are the main models; there are some other models which people talk a lot about,
researchers, but really are quite marginal: people talk about getting money from foundations,
forgetting that most of these foundations are US foundations and most of their money
goes to US projects, with a little bit of overspill to Europe.
And then one may get money by some commercial tricks, such as selling student data to third parties
or to employers or something, but this is fraught with difficulty especially in Europe,
because of the issues of data protection and in my view quite rightly, so not a model I favour,
and it doesn't seem to be particularly successful.
So at the end of the day money from the students or on behalf of the students is the key driver
for producing courses be the open education courses or closed courses.
The problem in Europe is every country is different
and, as we discovered recently, every region of every country is different:
when Wallonia decided to hold up the big treaty because they felt different from Flanders
and different from other countries, and in the UK especially we have four different countries
with very different models.
So I chose the topic of Ireland because Ireland, the republic of Ireland, has an interesting
model which is partly British and partly continental, it's a kind of hybrid model:
so students do pay fees but the government by large pays the fees if they are students from the EU.
International students pay quite high fees and again, surprisingly to some,
part-time students pay fees but the government pays no attention to that, so basically they pay
quite low fees and the government doesn't give the University any money.
So part-time students are not in that sense particularly attractive to Irish institutions,
and until you understand that you can't really understand why certain business models work
and certain models don't work.
So for example there isn't much distance learning in Ireland and again, because Europe is one continent
and we're all in the EU at the moment, a lot of countries suffer what are called edge effects.
So the British Open University has quite a lot of students in Ireland, so much of the
demand in Ireland is soaked up by identity outside Ireland, and we have similar situations
in Germany and in Austria and in Wallonia and France.
So there are quite lot of overlap, which mean you can't just restrict the business model
to one country.
So all of this makes it one complicated and I'm talking about one small country in 28 member states,
and some of the member states are considerably different in terms of different regions.
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