Extension Education Anytime and Anywhere

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Extension Education Anytime and Anywhere

• The Business Case for Sustainable Extension
  e-learning

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Stages of Implementation

• Thinkin about it
• Pilot project(s)
• Special Enterprise
• Full Integration

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Conclusions Consider e-learning when

• Evidence of regional or national demand
• Full certificate program
• Competitive advantage
• Enterprise approach
• Field tested program

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Online Courses
Parents Forever TM
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Study Questions

• What is the business of e-learning?
• What does it take to be successful?
• Should Extension be in the e-learning
  business?
• Why now?

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Education over the Internet is going to be so
big that it is going to make e-mail usage look
like a rounding error. John Chambers, CEO
Cisco Systems
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The Second Bottom Line
In a business, goods and services have
instrumental or secondary value the primary
value is making money. In a nonprofit, the
service is the primary value making money is a
means to that end.
ONeill and Fletcher (1998)
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Old Economy / New Economy

• Geographic institution
• Just in case
• Isolated

• Brand name universities celebrity professors
• Just in time
• Virtual Learning communities

Source Merrill Lynch 1999
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Old Economy / New Economy

• Four year degree
• Distance education
• Correspondence video
• One size fits all

• Forty-year degree
• Distributed learning
• High-tech multimedia
• Tailored programs

Source Merrill Lynch 1999
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The power of the Internet to transform the
educational experience is awe-inspiring, but it
is also fraught with risk. Report of the
Web-based Education Commission to the President
and the Congress of the United States. 2000.
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What is the business of e-learning?

• Employee training
• Value-added e-learning
• Customized education / training

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Pricing
Price

• 1-on-1 mentoring

• Online degree programs

• Instructor-led training

35-50 per Course hour
75-100 per Course hour

• Tutor-Supported
• E-Learning

Interactivity/Intensity

• Web Delivered

• CD-ROM

• Paper-based

5 - 15 per Course hour
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Outsourced Cost Scale
65,000 / Course hour
10,000 / Course hour
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What does it take to be successful?

• Double-bottom line
• Total cost analysis
• Measures of financial performance

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Cost Analysis
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Cost Drivers

• Existing condition of content
• Required level of instructional design
• Media richness
• Types of media
• Number of hours developed
• Size of audience
• Technology features
• Registration, scoring, tracking
• Collaboration
• Mentors
• Assessments

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Fixed Costs

• Intellectual property development
• Instructional design
• Production / programming
• Infrastructure (equipment, facilities)
  establishment

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Course-Variable or Stepped Costs

• Instructor costs
• Site rental costs
• Some telecommunication costs

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Learner-Variable Costs

• Materials duplication
• Mailing costs
• Some telecommunication and software license
  costs
• Learner travel salary

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Standard Measures of Financial Performance

• Breakeven point
• Return on investment
• Critical minimum of aggregation

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Total Cost Comparison
Breakeven
Incremental Fixed Cost (online)
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Business Strategies

• Superstore
• Specialty Store
• Boutique / Mom Pop
• Cooperative
• Corporate Alliances
• Consultants

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Conclusions Consider e-learning when

• Evidence of regional or national demand
• Full certificate program
• Competitive advantage
• Enterprise approach
• Field tested program

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References
Carr, S. 2001. Is Anyone Making Money on Distance
Education? The Chronicle of Higher Education.
Feb. 16,2001.   Daniel, John S. 1996. Mega
Universities and Knowledge Media Technology
Strategies for Higher Education. Kogan Page
Limited.   Effectiveness of Learning
Technologies The Costs and Effectiveness of
Technology-Based Approaches to Teaching and
Learning. 1998. Office of Learning
Technologies. Ontario, Canada. http//olt-bta.hrdc
-drhc.gc.ca/publicat/OPASexece.html   Extension
On the Brink of Extinction or Distinction. King,
David A. Boehlje, Michael D. Journal of
Extension. Vol. 38 No.5 Oct. 2000   Guidelines
for the Evaluation of Electronically Offered
Degree and Certificate Programs. Draft
guidelines developed by eight regional higher
education accrediting commissions. September
2000.  
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References
Institutional Restructuring Is Distance
Education Like Retailing?! Moore, Michael.
American Journal of Distance Education. Vol. 13.
No.1. 1999.   O'Neill, Michael and Kathleen
Fletcher. Nonprofit Management Education U.S.
and World Perspectives, Praeger, Westport, Conn
1998   The Power of the Internet for Learning
Moving from Promise to Practice. 2000. Report of
the Web-based Education Commission to the
President and the Congress of the United
States.   Whalen, T. and Wright, D. 1999.
Methodology for Cost-Benefit Analysis of
Web-Based Tele-Learning Case Study of the Bell
Online Institute. The American Journal of
Distance Education. Vol. 13, No.1.