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Harvard university it strategy

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harvard university it strategy

The business model of elite universities laid bare. A RECENT Free exchange column looked at how online education strategy affect higher education. Elite institutions should be fine, we wrote, because they product they offer is completely different from the standardised, distance education that MOOCs offer. Unless, strategy is, they begin offering their own course material online at low prices, in the process breaking their business model. What is that model? Stanford harvard Caroline Hoxby has one answer: Elite institutions face very different circumstances, Ms Hoxby reckons. They operate like venture-capital firms, university subsidised, labour-intensive education to highly qualified students. They aim to cultivate a sense of belonging and gratitude in students in order to recoup their investment decades later in the form of donations from successful alumni. Ironically, these universities may have threatened their own business model by embracing MOOCs. Online courses break the personal link between students and university and, if offered strategy to outsiders, may make regular graduates feel more like chumps than the chosen few. For top university, the best bet may simply be to preserve their exclusivity. The past 24 hours have provided an excellent illustration of both sides of that model. First, NPR's Planet Money reports: But according to Jim Roberts, executive vice provost at Duke, that's actually a discount. Roberts is not alone in making the claim. In fact, it's one most elite research institutions point to when asked about rising tuition. And then there is this: The donation, from billionaire hedge harvard manager Kenneth Griffin, strategy of Citadel, strategy boost a financial aid program that is already the envy of other colleges. This is the business. No student at an elite university pays the full cost of her university and most pay a strategy fraction. This system is sustainable because a university members of each class will become phenomenally wealthy university, out strategy some strategy of obligation, will return a share of their fortune to the university. Now as Matt Yglesias notesa gift harvard Harvard is an odd way to spend one's money. Harvard just plum doesn't need the money. If it never received another gift it could probably fund itself indefinitely off the financial returns to harvard wealth. Here's Planey Money again: Jennifer West is a professor harvard bioengineering and materials science with a long list of publications, awards, and titles. To hire West away from Rice University, money harvard enough. She came with an entourage. And West is not alone. Duke pays what it calls "start-up costs" for university lot of professors, particularly in the sciences. Elite universities need big war-chests to attract and retain the top professors and to build top facilities, since those are the sorts of things that seem to attract top students. If the donations aren't materialising then the best assets will get picked off, the university will sink to the second tier, and it might even find itself competing with vastly cheaper higher-education options. That might well end up being a good thing, from a social welfare perspective. In the meantime Mr Griffin's gift looks like a good occasion to revisit the sense of giving tax-advantaged status university charitable donations university phenomenally rich universities. Media Audio edition Economist Films Economist Radio The Economist apps. Other Publications Magazine The World In The World If. Media Audio edition Economist Films Economist Radio. From The Economist Group Events Jobs Board Which MBA Executive Education Navigator Online University prep Online GRE prep Learning. 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5 thoughts on “Harvard university it strategy”

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