No 14 - Journal of Social Informatics / Revista de Informatica Sociala

Stage III: Unbundled Learning, Market Competitive PricingInstitutions like the Western Governors University, Florida State College at Jacksonville’s OpenCollege, Ocean County College in New Jersey, and Lamar University in Texas have re-invented theelements of the production function and faculty roles to achieve many of the financial advantagesrealized by the for-profits.They have used technology to unbundle and re-invent teaching, learning, assessment andaccreditation. While their methods vary from institution to institution, the basic principles arefundamentally the same. These public institutions pass the savings on to learners in the form ofmore competitive tuition – a strong value proposition. They charge a market-competitive tuition ratethat covers the marginal costs of learning.These public institutions can grow based on tuition alone, rather than appropriations from theirrespective states or municipality. This is critical during times of financial recession, when studentdemand spikes and state resources decline. Many community colleges are within striking distanceof being able to attain the ”marginal cost of learning < tuition” goal.Achieving this stage is essential for public institutions attempting to attain financial sustainability. Itis a strong value position – but even this value position must be improved over time in the face ofthe withering competition that is emerging globally.The Western Governors University has spent a long decade developing and getting acceptance forits model. It features faculty as mentors to cohorts of 80-90 students, unbundled learning,assessment, and certification of learning and the potential for scalability. WGU-Indiana is a spin-offformed to test the waters for this approach in the Hoosier State.An interesting variation on the theme of reinvention at a market price is Fort Hays State Universityin Western Kansas, although it has taken a somewhat different path. The leadership of FHSU hasmanaged a three-element portfolio of on-campus earning, virtual offerings and internationalofferings (FHSU has achieved the largest enrollment in China of any American university), alwaysmindful of its position as a highly affordable provider in its different markets.Fort Hays State University has received kudos from state leadership by keeping the lid on tuitionincreases through redirecting the margins from its international operations to improve the quality oflife of its home campus.Summary of Stage III: Unbundled Learning, Market Competitive PricingCharacteristics: Reinvent and unbundle learning, using many of the same principles as used bythe pioneering for-profit institutions, but pass savings on to the learners in the forms of amarket-competitive tuition.Transformative Impact: Transformed roles and approaches at a market price. Financial modelis sustainable. Can grow on tuition alone.Impact on Institutional/Learner Costs: Tuition covers the marginal cost of additionallearners.Exemplary Institutions/Participants: Western Governors University – transformative, competency based Florida State College at Jacksonville Open College – many CCs are reinvented andmarket competitive Lamar University – big impact in Texas Fort Hays State University – portfolio of on-campus, virtual, international.