Economy of MOOCs: costs, benefits & strategy

Description

MOOCs are without discussion one of the key changers in education, and in particular in higher education. Much has been said about pedagogical implications and benefits for students enrolling these courses, as well as for society in general. But if the 'MOOC tsunami' is supposed to last, it needs to be sustainable in the long term.

To analyze this sustainability, we have explored costs and benefits and, going one step further, who bears the costs and who gets the benefits. A clear view of the economy of MOOCs is critical for higher education institutions in a moment where cutting-costs is a must, while keeping . or improving . overall performance. In this poster, we focus on costs and how they can be integrated into on-Campus teaching.

Regarding costs, the analysis will focus on quantity and typology. Costs can be split into teaching hours, supporting staff, hardware resources and platform (as initial concepts). A deeper analysis will show these costs share some characteristics, but also have key differences. It.s critical to recognize which of the costs are necessarily out of pocket and which of them can be absorbed through management initiatives (i.e. process reengineering).

Regarding the benefits - analyzed but not shown in poster- , the classic analysis shows clear benefits for students in particular and society in general, but there are few analytics about benefits for higher education institutions themselves. There is some literature on benefits derived from teaching changes, such as better teaching for on-campus institutions and possible reduction of groups when flipping classrooms. Can these benefits be quantified? In addition, there can be direct return due to platform usage (i.e. Coursera sharing revenues) or digital marketing. There are also lines who indicate recruitment increase thanks to MOOCs. Again, there is a need to quantify and classify these concepts.

The cost-benefit analysis can lead to two points. Either there is an equilibrium, which could mean the market is mature enough or . more likely . there is no equilibrium in the relation. If so, there is a need to think about ways to make the system fair, and possibly think about new players entering the MOOC arena. Maybe private companies - other than those related to platforms themselves- can fill the cost-benefit gap and play a critical role for MOOCs success. In the meantime, we think blended learning can be a key success factor to produce MOOC, improve quality in teaching and be able to bear costs derived from the production process.

The analysis of the points above should also provide guidelines for higher education institution managers, who will need to explain the bottom line of MOOCs projects. Having a clear vision of costs, benefits and new players -if any- can also help to take management measures to fit costs or provide additional benefits.

Finally, no doubt, there is also the strategic view. With independence of the numbers we offer, Universities -and in particular public institutions- should return value for society and -no doubt- MOOCs can fill the gap. In addition, there is also the opportunity cost, and in particular for institutions deciding not to enroll. Putting together strategy and numbers should allow managers to evaluate the proper impact of MOOCs and whether they are both suitable for the institution and sustainable on the long term or, like real tsunamis, will sooner or later, stop, probably leaving behind a deep impact on education.

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