Agile Leadership Innovation

Redefining Higher Education: The Disruption of Traditional Universities by Online Learning

Last weekend, I had the privilege of attending the graduation ceremony at Western Governor University (WGU) in Chicago United States, where numerous Masters students celebrated the completion of their degrees. Among the 1500 Masters certificates awarded, the main fields include Master of Business Administration (MBA), Masters in Business Leadership, Masters in Information Technology, Masters in Data Analytics as well as in Education. As I observed the event, I couldn’t help but contemplate the impending disruption of traditional universities. WGU, as an online institution, boasts an impressive record of Masters program completion in an average of just 2 years, all while students maintain the flexibility to work alongside their studies. Moreover, it’s highly likely that WGU’s affordability sets it apart from traditional counterparts. While conventional universities still hold a reputation for providing a qualitative education, the scales are gradually tipping as students weigh the merits of institutions like WGU. Conventional universities must adopt a proactive stance, recognizing education as an investment and students as discerning customers seeking returns on their educational investments. The imperative is clear: they must seek sustainable solutions to mitigate the exorbitant costs of higher education and eradicate the longstanding inefficiencies that squander students’ time. Around a decade ago, the late Harvard Professor, Dr. Clayton Christensen, presciently predicted that the lowest-performing 25 percent of every tier in American higher education would either vanish or merge. His rationale lay in the belief that the traditional higher education business model was unsustainable in an era of rising costs and mounting competition. He saw online learning platforms like WGU as disruptors, and this prophecy has indeed come to fruition. Traditional higher education institutions must act wisely by initiating self-disruption and evolving to become more customer-centric. Following Christensen’s wisdom, they must identify the “jobs to be done” for their students and adapt their business models accordingly. This transformation extends to the mindset of education administrators and lecturers who must embrace an entrepreneurial spirit, viewing education as a valuable investment. Failure to do so may render them vulnerable to the ongoing wave of disruption.