Building the Online Enterprise: Lessons Learned from the Formation - PowerPoint PPT Presentation

Kennedy & Company Kennedy & Company Building the Online Enterprise: Lessons Learned from the Formation of USC’s Palmetto College ACHE South Presentation April 19, 2016 2015 Kennedy & Company Education Strategies LLC

Starting Question: What should our online enterprise accomplish? Better Question: What are the goals for our university and how does an online enterprise help us get there? Marketing Extend Boost Enhance Lower & Reach of Enrollments Retention Costs Delivery & Revenues Brand 2015 Kennedy & Company Education Strategies LLC 2

Outline for Today’s Presentation § Goals for the Online Enterprise = The Goals for the University § Timeline for Development of USC Palmetto College § A Centralized Approach ? or Every School for Itself? § Goals Dictate Architecture of Online Enterprise o But Should we Outsource? § Assumption: Let’s Build Something Together – What are the Issues? o Governance o Revenue Sharing – How Should we Split Revenues & Costs o Accreditation & Authorization o Other Programs, Integration with Traditional Education o Student Retention o Admissions, Financial Aid, Registrar, Bursar o Economies of Scale: Course Development & Marketing o Strategy & Market Research o Final Lessons Learned 2015 Kennedy & Company Education Strategies LLC 3

Timeline of Events: USC’s Online Enterprise USC’s University Chancellors, Dr. USC-Columbia and its four Palmetto College Elkins, and the regional campuses begin finishes its second full Provost agree to a offering online degree- Dr. Susan Elkins year with a 35%+ final revenue sharing completion through Palmetto appointed first increase in students and agreement that splits USC’s Board approves Programs; many of the courses Chancellor of a 35%+ increase course tuition revenue Palmetto College and USC are taught via synchronized Palmetto College consumption, leading to between the 8 pushes for state funding to classrooms a doubling of tuition participating launch the enterprise revenues generated. institutions June, 2014 July, 2011 Fall, 2013 Summer, 2012 June, 2015 May, 2014 2007 Spring, 2013 February, 2012 USC President Harris Pastides begins planning process for Palmetto College, Palmetto College Palmetto College seeking to expand delivery of online The SC legislature formally launches with 7 finishes its first full year education, increase enrollment, and approves a $5M state programs, including 5 with 64 courses and over deliver a low-cost degree to South appropriation to fund the new programs in 1600 students enrolled Carolina residents. A consulting project creation of Palmetto Criminal Justice, creates the initial architecture for College Education, Nursing, Palmetto College, for Board review and Human Behavior, and approval. Business. 2015 Kennedy & Company Education Strategies LLC 4

Designing an Online Enterprise? Start with Your Goals. USC – Palmetto College started with a vision for what it wanted in 2011 and gained Board approval for both its vision and the corresponding architecture for Palmetto College in 2012. 2012 USC Board Presentation Stated Goals: The$Need$for$Palme.o$College$ § Extend USC’s reach beyond By#establishing#Palme0o#College,#the#University#of#South#Carolina#achieves#its# fundamental#goals#and#plays#a#significant#role#in#improving#economic#stability#in#the# State.## its physical campuses and aid • South#Carolina#ranks#40th#in#the#naCon#in#number#of#adults#holding#a#bachelor's#degree#at# Low$Level$of$Bachelor’s$ only#approximately#25%.##The#level#of#educaConal#a0ainment#relates#directly#to#the#number# of#new#employers#that#might#consider#relocaCng#to#South#Carolina.### Degree$A.ainment$in$ degree completion, in South South$Carolina$$ • # An$increase$in$bachelor's$a.ainment$is$$determined$to$be$"cri:cal"$or$"most$cri:cal" ##for#a# majority#of#counCes#to#meet#projected#economic#demands.#### • Individuals#holding#a#bachelor's#degree#in#South#Carolina## earn$$1.2$million$more$ over#a# Quality$of$Life$ Carolina lifeCme#than#those#with#just#a#high#school#diploma.# Improvements$for$ • Research#conCnues#to#indicate#that# holding$a$college$degree$elevates$individuals$ with# Bachelor’s$Degree$ increased#social#and#cultural#capital##that#is#passed#on#to#future#generaCons.##Educated# Holders$$$$ ciCzens#are#rewarded#with#higher#paying#jobs#and#higher#status#in#society.## • By$2018,$630,000$new$jobs$and$job$vacancies$that$require$a$bachelor's$degree$will$exist$i n# Expanding$Job$Market$ South#Carolina#with#strong#growth#in#the#fields#of#health#sciences,#business#administraCon,# educaCon,#criminal#jusCce,#and#informaCon#technology.### Demand$for$Bachelor’s$ Degree$Holders$ • Based#on#projected#degree#compleCon#rates,#South#Carolina#must#increase#bachelor's# degree#a0ainment#by#a#rate#of#7.3%#annually#to#meet#job#market#needs.##### • The#mission#of#Palme0o#College#will#include# increasing$access$to$more$students$who$may$ § Create affordable degrees be$placeXbound #and# increasing$the$level$of$educa:onal$a.ainment$across$the$$State.$$$ Fulfills$Mission$of$the$ • Palme0o#College#will#build#on#the#missions#of#Palme0o#Programs#and#the#regional# University$$ campuses#to#deliver#educaCon#to#underserved#populaCons#and#to#individuals#who# otherwise#might#not#have#access.#### • Palme0o#College#will#hit#on#the# core$principles$of$the$new$funding$model :#degree# a0ainment,#job#placement#and#opportuniCes#for#low#income#and#minority#students.# Accountability$Based$ Review&of&Palme-o&College& & • With#increased#bachelor's#degree#a0ainment#and# access$to$underserved$students$ in#the# Funding$$ State,#USC's#impact#on# economic$development$$ will#be#vast#by#making#South#Carolina#more# As#Palme)o#College#develops,#these#guiding#principles#will#shape#the#final#product.## & a0racCve#to#potenCal#employers#and#providing#access#to#higher#paying#jobs#for#its#ciCzens.#### § Increase net revenue – 4 Sources: Georgetown Center on Education and the Workforce & The Lumina Foundation Education Needs Index important, but secondary Students # Courses & Programs & Structure & • Adult#students#who# • Upper#Division# • VocaEonally#oriented## • Leverages#the# may#be# courses#only## • Fields#with#proven#job# regional#campuses## geographically=bound### Vast#majority#of# market#demand# Organized#as#one# • • University#non= courses#on=line#via# Accredited#through# college#within#the# • • completes#and# asynchronous# the#senior#campus# system## Associate’s#Degree# delivery#methods !! degree#programs### • Overseen#by#a#new# holders# & PosiEoned#to# Chancellor#with#a# • § Utilize existing infrastructure Both#in=state#and#out= compete#with#for= direct#reporEng# • of=state#residents & profit#insEtuEons## relaEonship#to#the# President# and programs to jump-start the • CentralizaEon#of# many#services# & launch of Palmetto College Based&on&its&market&posi;on,&brand&integrity,&exis;ng&infrastructure,&and&strong& market&demand,&Palme-o&College&is&poised&for&success.&&&& 3 2015 Kennedy & Company Education Strategies LLC 5

Goals Dictate the Architecture of Online Based on USC’s experience, we believe that the ultimate goal for the University should dictate how the online enterprise is constructed. Examples of Corresponding Example University Goals Architecture MOOC/Not-for-Credit Enhance University Brand Outsource to Online Program Quick New Revenues, Management Low Investment Build Internally on Top of Extend University Delivery, Existing Structures Increase Long-Run Revenues 2015 Kennedy & Company Education Strategies LLC 6