Issue link: https://www.e-digitaleditions.com/i/373915
67 BizEd September/October 2014 ALEXRATHS/TH I N KSTOCK content be more alike than different. At the same time, MOOCs and other online programs deliver general- ized, low-cost content to as many people as possible. By producing commoditized content at a greater rate, universities increase not only access to that content, but also the number of students educated by that con- tent. Ultimately, this abundant supply of students sim- ply increases competition among them without giving them any way to distinguish themselves. Fortunately, the value proposition that higher educa- tion offers to society is much richer than simple con- tent creation, dissemination, and delivery. The value proposition of higher education has always been this: It fosters a well-informed and well-prepared citizenry to function in the world. Colleges and universities deliver their value not only through classroom experi- ences, but also through an entire chain of offerings. These include student-related services such as advis- ing and mentoring; educational opportunities such as internships, study abroad programs, experiential learning, and undergraduate research; and job-related services such as career development and placement cen- ters. Higher education institutions also help students develop the social capital that matters at least as much as technical knowledge. Some colleges and universities have de-emphasized these student-centered activities due to financial pressures. However, this is a risky strategy that mis- diagnoses the disruptive pressures facing universi- ties. Rather than competing with these pressures and falling into the commoditization trap, universities should reinvigorate the aspects of their value chain that are difficult to generalize or outsource to technology, but that represent real value to those they serve. MOOCs cannot easily replicate or improve upon the traditional classroom experience, particularly in upper- level undergraduate and graduate courses. MOOCs also face real challenges in providing advising, mentor- ing, placement, and other personalized services. That's why we think that, in the foreseeable future, the added value of traditional higher education lies in unique, personalized services. We're not saying that administrators should ignore the potential of MOOCs and other alternate sources of content delivery. These programs have a purpose—they can free resources that can be redirected to other areas of the university's value chain. For instance, faculty can flip the classroom by asking students to view high- quality MOOC lectures on their own time, reserving class time for discussions and more interactive experi- ences. This approach allows universities to put more of their resources into their core source of value: the personalized experience they deliver to students. Embrace and Differentiate In today's economic climate, higher education appears to be losing much of its vitality. This is partly because academic leaders misunderstand where their institu- tions offer the most value. We believe university lead- ers should embrace MOOCs and similar programs for the time and cost savings they offer, but they shouldn't stop there. Once they've used MOOCs to free up staff and budgetary resources, they should refocus those resources on what they do best—provid- ing the individualized attention that prepares students for the working world. Students like John are depend- ing on them. Douglas E. Thomas is the Anderson Alumni Endowed Profes- sor at the University of New Mexico's Anderson School of Management in Albuquerque. B. Tom Hunsaker is an adjunct faculty member at the Thunderbird School of Global Manage- ment in Glendale, Arizona.