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One risk, according to the auditor, was that colleges and universities would create programs that were just correspondence courses, without any meaningful interaction between students and faculty. Another risk was that students might receive Title IV federal funding for their life experience, without using the school’s learning resources.

the Higher Learning Commission of the North Central Association of Colleges and Schools, had approved the school’s first competency-based degree program: a master's of health professions. The distance learning program is aimed at working professionals in medicine, nursing, dentistry, pharmacy, and social work.

The program doesn’t have traditional campus-based classes — its students interact with mentors by phone, email, video chat, or, for students and mentors near each other, in person.

The Flexible Option program at University of Wisconsin System offers five competency-based online certificates and degrees, targeting adult students with college credits but no degrees.

Wisconsin won approval from the Education Department and an accreditor for its self-paced, direct assessment arts and sciences associate’s degree.

The program is “transdisciplinary” — open to students in any discipline — with a theme-based organization and learning driven by problem-solving instead of how much time is spent in the classroom.

students receive credit based on learned and demonstrated competencies.

Western charges a flat-rate tuition for every six months of enrollment, and students’ advancement is based on what they can prove they know

The 2-year-old program has partnered with 55 employers to create programs for job-specific skills. College for America claims to be the only program of its kind to be approved by a regional accrediting agency and by the Department of Education for Title IV federal financial aid, although the Education Department says there is one other.

The university allows students to receive credit for knowledge already gained through their experience with a “prior learning assessment.” As of Jan. 23, Capella and Southern New Hampshire had the only two programs approved by the Department of Education to receive Title IV financial aid, according to the department.

Northern Arizona University offers a competency-based online learning program, called Personalized Learning, that allows students to use their previous experience to pass pretests and opt out of certain lessons.

is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools.

Especially attractive is competency-based education’s prospect of accelerating time to degree, since students can potentially receive credit for skills and knowledge acquired through life experience or alternative forms of education.

But with the U.S. Department of Education and accreditors increasingly willing to allow institutions to experiment with competency-based models and direct assessment, such programs are poised to take off. The trend is moving beyond just a few institutions like Western Governors University, as even Harvard Business School, for example, launched its HBX CORe program, a “boot camp” for liberal arts college students who want to understand the fundamentals of business. 

Personalization has been the hallmark of contemporary retailing and marketing, and now it’s coming to higher education

But recognition of the fact that all students do not learn best by following the same path at the same pace is beginning to influence instructional design even in traditional courses, which are beginning to offer students customized trajectories through course material.

Convinced that a curricular smorgasbord of disconnected classes squanders faculty resources and allows too many students to graduate without a serious understanding of the sweep of human history, the diversity of human cultures, the major systems of belief and value, or great works of art, literature, and music, a growing number of institutions have sought to create a more coherent curriculum for at least a portion of their student body.

companies like Learning Ace are creating new portals that allow faculty and students to easily search for content in e-books, subscription databases, and on the web.

By promoting system-wide or state-wide purchasing, institutions seek to take advantage of scale in procurement of software and other services.

large-scale data storage, and high bandwidth data access, enables researchers within 15 UT System institutions to collaborate with one another

As more and more students enroll in community college to save money, a great challenge is to insure that courses at various institutions are truly equivalent, which will require genuine collaboration between faculty members on multiple campuses.

By inverting the classroom, off-loading direct instruction and maximizing the value of face-to-face time, the flipped classroom are supposed to help students understand course material  in greater depth.

Institutions like MIT, “Future of MIT Education” and Stanford, “Stanford2025,” aware of such tensions and risks, are taking both bottom-up and top-down approaches to ensure they get the best of the flipped classroom without sacrificing face-to-face interactions.

A growing number of institutions are launching a single contact point for student services, whether involving registration, billing, and financial aid, academic support, or career advising.  The most innovative, inspired by the example of the for-profits, make services available anytime. When it opens in Fall 2015, the new University of Texas Rio Grande Valley, which will serve an expansive 60-mile-wide region, will offer students a holistic student lifecycle management and CRM and support system accessible across the region.

Even as these ten innovations gradually become part of the higher education ecosystem, several new educational models are appearing, which potentially challenge business as usual.

Early college/dual enrollment programs that grant high school students college credit.  Expanded access to Advanced Placement courses. Bachelor degree-granting community colleges. Three-year bachelors degree programs. All of these efforts to accelerate time to degree are gaining traction. Particularly disruptive is the way students now consume higher education, acquiring credits in a variety of ways from various providers, face-to-face and online.

The University of North Texas’s Dallas campus, designed with the assistance of Bain & Company, the corporate management consulting  firm, has served as a prototype for a lower-cost option, with an emphasis on teaching and mentoring, hybrid and online courses (to minimize facilities’ costs), and a limited number of majors tied to local workforce needs. 

Minerva Project, seek to reinvent the university experience by combining a low residency model, real-world work experience through internships, and significantly reduced degree costs through scaled online learning

the University of Phoenix, Kaplan, and other online-only institutions have created physical locations and even MOOC providers stress the importance of learner MeetUps and are focused on implementing hybrid courses on traditional campuses.

While some corporations partner with academic institutions (GM, for example, offers a MBA through Indiana University), the number of stand-alone corporate universities now exceeds 4,200

Although these corporate units do not offer degrees, they may well pose a threat to traditional universities in two ways.  First, by their very existence, the corporate universities infer that existing undergraduate institutions fail to prepare their graduates for the workplace. Second, these entities may well displace enrollment in existing graduate and continuing education programs.

The irony may be that all the so-called disruption will actually bring higher education back to its core mission. In the words of the public intellectual du jour, William Deresiewicz, “My ultimate hope is that [college] becomes recognized as a right of citizenship, and that we make sure that that right is available to all.”

what is more intriguing is the rationale for this growth. Is it an attempt to expand institutional reach and better meet customer needs, especially those of students, parents and employers, or is it simply a means to fill budgetary gaps?

In the Eli Broad College of Business at Michigan State University, we have taken a very customer-oriented approach to online learning and have put customer needs, as well as the overall student experience and learning outcomes, at the forefront of our online development efforts.

Can you provide different degree or certificate offerings for different customer groups and how do you effectively manage these different offerings?

Is your institution open to alternative business models, not to replace the primary one, but to supplement and enhance the overall portfolio?

In the past, the inclination would be to create a generic program that would serve the needs of many different individuals; however, the risk is that such a program might not address the full set of needs for any one individual.

As a result, we need to become much more flexible and agile in defining requirements and how best to meet those requirements. Competency-based learning, micro-learning, MOOCs and any number of other emerging approaches must be considered in this “solution” context. Flexible, online learning is an important part of the solutions mix, too.

While it is impossible to accurately predict what might happen if higher education is unable to adjust to these new realities, the experience from business suggests that the result could be dramatic. The Fortune 500 of today looks dramatically different than the Fortune 500 of even 20 years ago. Bankruptcies, consolidations and new technologies continue to transform the commercial marketplace. It would be foolish to think that something similar couldn’t happen in higher education, too. The challenges are significant, but the opportunities for those who can embrace these new realities could be equally significant and exciting!