Issue link: https://www.e-digitaleditions.com/i/161013
technology Can MOOCs Be Profitable? by B.J. Zirger Can the problem of skyrocketing tuition be solved by the proliferation of massive open online courses, otherwise known as MOOCs? Often offered for free, MOOCs enable students worldwide to access affordable education and the opportunity to learn at their own pace from the world's finest teachers and guest speakers, regardless of physical location. Moreover, MOOCs give students opportunities to interact with hundreds or even thousands of others from all corners of the globe—from traditional college students to working professionals to retirees. The benefit that students derive from the diverse experiences and viewpoints they can encounter in a single MOOC cannot be overstated. But schools offering MOOCs face a conundrum: How can they justify the high costs associated with delivering an online class to thousands of students? In addition to the expense of technical resources, schools must invest the time, energy, and faculty expertise necessary to create and adapt course material for a MOOC setting. How to raise revenue with a MOOC is the question we grappled with as we prepared to launch our first MOOC2Degree offering this fall at the University of Cincinnati Carl H. Lindner College of Business in Ohio. Co-taught by faculty from the Lindner College of Busi- MOOCs in the News Gates Foundation Funds MOOC Research As the popularity of massive open online courses increases, there is a call for data on how MOOCs will affect education. To that end, the Bill and Melinda Gates Foundation has funded the MOOC Research Initiative (MRI) with US$400,000 to coordinate research examining the impact of MOOCs and other emerging forms of digital learning. 56 September/October 2013 Over the summer, MRI considered proposals from institutions vying for grants of up to $25,000. MRI administrators plan to hold an international conference on MOOC research, including interim reports by successful grantees, at the University of Texas, Arlington, December 5–6. The MRI grant program is administered by Canada's Athabasca University. For information, visit www.mooc research.com. BizEd ness and the UC College of Engineering and Applied Sciences, the multidisciplinary class "Innovation and Design Thinking" is designed to build understanding of the idea generation, design, prototyping, and commercialization steps involved in product and service development. Charging students to enroll could raise revenue, but would likely drive away those attracted to these free courses. We chose another, more elegant, option: We hope to convert a portion of our MOOC participants into degree-seeking, tuition-paying students by designing our MOOC2Degree course as a "stepping stone." Students who successfully complete "Innovation and Design Thinking" and enroll in a UC master's program will receive two graduate-level credits for free. They can immediately apply these credits toward a Lindner MBA or a master's in engineering degree. For this approach to succeed, we know our MOOC must demonstrate the value of our program. Its credits cannot be generic—they must satisfy one or more specific core or elective requirements. And the students must save time and money by shortening their path to a degree by one course. The school will benefit by attracting potential students who "sample" our MOOC content and are impressed enough to pursue a degree. Our measure of success will be whether we generate enough incremenCoursera Receives $43 Million for Expansion Coursera, the industry's leading MOOC provider, recently secured US$43 million in a second round of funding from GSV Capital, International Finance Corporation (IFC), Learn Capital, the investment arm of the World Bank, global higher education firm Laureate Education, and entrepreneur and venture capitalist Yuri Milner. Coursera plans to use this funding to expand into international markets—especially in developing countries. "Demand for education in developing countries is growing rapidly due to population growth and the rising share of students seeking university education," says Elena Sterlin, IFC senior manager for health, education, and services. The IFC's investment is driven by its desire to increase access to low-cost educational options. Launched in April 2012, Coursera now works with 83 educational institutions and offers nearly 400 free college-level courses, in which