A tale of 50 online degrees...
Imagine working at a university as a strong advocate for online education, striving to get this on the agenda but often facing frustration due to a lack of appetite, myopia, and closed mindsets. Then picture hearing that another university nearby has announced a significant move into online education, creating numerous online degrees and supporting them with a dedicated team and operation. It would be hard not to feel a very strong sense of envy.
This feeling was certainly palpable in 2017 when I was in a room hearing Coventry University announce its major venture into online education, partnering with FutureLearn to launch 50 online degrees over the next five years.
Although I've witnessed numerous online portfolio launch announcements over the years, this one felt particularly significant due to the ambitious scale and pace. It also coincided with a time when offering online degrees via MOOC platforms was still in its infancy. In this context, Coventry University was genuinely at the leading edge in the UK.
In terms of portfolio size ambitions, launching 50 online degrees, with the majority at the postgraduate level, constituted a move to position Coventry University alongside the other major online distance universities in the UK, the Open University and the University of London.
The announcement also hinted at large ambitions in terms of student numbers, emphasising that these online degrees would be accessible to thousands of learners worldwide via a platform with millions of registered users.
In 2017, a subsidiary company, Coventry University Online Limited, was established, followed by a recruitment phase to build its operations. According to the most recent company accounts, Coventry University Online has over 80 employees, a number that few UK universities can match in terms of a team dedicated solely to online education.
It was clear to see that this was an example of a UK university making a significant move and investment into online education. This case is particularly interesting because an increasing number of UK universities are aiming to expand into online education, with ambitions to grow their online student numbers into the thousands in the coming years.
Having set the scene, it's worth delving into this case, examining how things have unfolded, and considering what might be learned from it.
Targets weren’t met
What's evident from the most recent data from HESA is that Coventry University hasn't significantly expanded its online student body to be classed as a major player in online learning.
The following chart shows the numbers of online postgraduate students Coventry University has had between 2017-18 and 2021/22, based on data from HESA.
In terms of market share they have less than 1% of both the online postgraduate market and online undergraduate market.
Looking at the number of degree programs, it's apparent that the stated target of 50 online degrees was never met. Currently, there are 17 online postgraduate degrees listed on FutureLearn. While this number was slightly higher in 2021, it falls significantly short of the target of 50 online degrees.
Coventry's ambitious and bold venture into online education in 2017 clearly hasn't met their target of expanding to a portfolio of 50 online degrees in five years. While specific student number targets are unknown, it's reasonable to assume they also fall well short. The current numbers do not seem commensurate with the level of investment the university has made in online education.
At this stage, it's worth noting a few points. Coventry University is a large and ambitious institution, home to over 38,000 UK-based students with campuses in London and Scarborough. Additionally, they have a significant transnational operation, with over 21,000 students abroad. It's a forward-looking university and has been successful in recruiting students in various areas.
However, its foray into online education could serve as a cautionary tale for the increasing number of UK universities aiming to develop an online education portfolio and attract a substantial number of online students.
There are several aspects of this tale that are worth reflecting on, and I want to focus on three key elements: partnerships, strategy, and capability.
A tale of partnerships
The most common approach for universities entering the online education market, especially when aiming for a substantial number of online students, is through partnerships with private companies.
Getting the partnership right can lead to achieving mutual goals and benefits, but a misstep can have negative consequences that significantly hampers ambitions.
Partnerships are a tricky area to navigate. Some are successful and deliver results, while others fall short or fail completely. Often, people automatically attribute the failure of partnerships to the company, particularly among those who view private-public collaborations skeptically.
However, failures can often be attributed to issues from both parties. Choosing the right partner and managing a successful partnership is challenging.
In Coventry’s case it was undoubtedly risky to place such significant online education ambitions in the hands of a company that was completely unproven when it came to online degrees. While MOOC platforms saw impressive growth in registered users during this period, running an online degree portfolio is a different challenge altogether.
It's now evident that FutureLearn, during this period, was far from developing a profitable and sustainable online education operation. The company also used to boast of having a minimal marketing budget during this period.
At the time there were essentially two options for online education partners: an Online Programme Management (OPM) company or a MOOC platform.
Comparing the two options, it’s clear that OPMs had a stronger track record with online degrees. OPMs also invest significantly in marketing to recruit sufficient numbers of students for online degrees.
This contrast should prompt reflection on the decision to choose a MOOC platform partner for such ambitious goals. While MOOC platforms have seen rapid user growth in the past decade, this hasn't yet translated into the same successes in terms of online degrees.
Interestingly, 2U is currently adopting a platform strategy via edX, using this platform with its wide reach to deliver online degrees and reduce marketing costs. Despite some reported benefits, 2U’s overall poor financial health and performance hardly instills confidence in the strategy as it stands.
Ultimately, there is a lack of widespread evidence of success for an online degree platform approach with minimal marketing spend. This approach was certainly contrary to traditional online student recruitment methods, highlighting the risk of partnering with a MOOC platform company back then.
Coventry's decision may have been influenced by a previous partnership with the OPM Keypath, leading them to explore alternatives. The key takeaway here is the importance of deeply understanding the online education space, familiarising yourself with common models and practices, and thoroughly researching the various company options.
A tale of strategy
Another aspect to consider is strategy, specifically, how you plan to succeed in offering online degrees in this particular market. Having a plan, such as launching a number of online degrees, is not the same as having a strategy that positions you for success.
Looking at the Coventry example, it's difficult to identify a distinct strategy in terms of degree curriculum and pricing. Their key differentiator was offering these degrees via a MOOC platform.
In hindsight, this seems akin to a "build it and they will come" approach, relying on the reach of an online education platform in a way that wasn’t being pursued by other UK universities.
While many strategies involve assumptions and navigating factors beyond your control, there were indicators suggesting that this approach was risky.
The importance of strategy cannot be overstated. In an increasingly competitive online education market, it's imperative for institutions to develop a well-researched strategy that positions their unique characteristics and advantages for success.
Although challenging, this critical step is often overlooked or overshadowed by planning, and not given the necessary attention it deserves.
A tale of capability
The final aspect of this tale involves a university not only developing a partnership but also building significant in-house capability. For some universities, a middle path that avoids a long-term OPM relationship while not doing everything alone—is appealing, especially given the current riskiness due to online education company turbulence.
However, internal investment strategy is crucial. Setting up and staffing an online education arm isn’t simply about hiring people to help design and produce degrees.
In Coventry's case, in-house investment appeared heavily focused on the creation and production of online degrees. Given their ambitions in terms of pace and size, this is understandable. That does however raise questions about the origins and rationale of the goal to offer 50 online degrees in that timescale.
Beyond creation and production, other capabilities like marketing, recruitment, and student success are equally vital and shouldn’t be overlooked. There can be a tendency towards overemphasis on course design and production that leads to under-resourcing in other key areas. Ultimately, If things don’t work out, a large team designing and producing online degrees that attract far too few students can look like a white elephant.
There's also a tension regarding the focus on the learning experience. While it's crucial to offer high-quality learning, differentiating solely on this aspect might not be as impactful for prospective students as one might think. The unique learning experience is abstract for students until they enrol and take part in a course.
Prospective students are more likely to be concerned with aspects like curriculum relevance, cost, and the institution's reputation than with specific pedagogical approaches or technological platforms.
Ultimately, I don’t think there’s lots of prospective students out there saying to themselves - I really want to do a Masters that’s taught from a social constructivist standpoint on a technology platform built around social learning.
The tendency to focus on creating a unique learning experience recipe through technology and pedagogy can lead to an imbalanced emphasis on certain capabilities.
It’s relatively common to see institutions prioritise hiring for design and production roles over areas like marketing or admissions when developing online education operations. I think it’s more widely recognised that designing and producing online degrees requires a different approach, but this recognition should extend to other capabilities.
For example, marketing for an online postgraduate audience requires different strategies compared to promoting a campus-based experience to undergraduate applicants already planning to go to university. This capability may be required as much, if not more, than learning design.
Capability development is crucial for institutions building online education portfolios, but it's important to remember the breadth of capabilities needed. Design and production are just one aspect of organisational capability. While they help create courses, they're of little use if not enough students enrol in them.
Making the right choices and learning from the past
In this period where numerous UK universities want to invest in online education and significantly increase their online student numbers, the choices they make and the reasons behind those choices are vital for their success.
Coventry University's foray into online education is a notable example, but it is not the only instance in UK higher education where initial ambitions have not been fully realised. However, many of these cases are not widely known.
This particular example is instructive in the ways I’ve outlined, and its relevance is heightened by the current climate. Considering that Coventry University also recently advertised for a new partner to significantly grow their online student numbers, it seems like a natural point for reflection.
Ultimately, making moves into online education requires a highly-informed approach, and part of this is drawing lessons from the experiences of other institutions. This tale might serve as a further reminder that those who do not learn from the past are doomed to repeat its mistakes.
