Business and Financial Models

• Author: Rebecca Purdom - Greg Brandes - Karen Westwood
• Pages: 66-71

66

Chapter 11

Business and Financial Models

The proliferation of electronic devices at virtually every level of society promises great potential for using

those same devices in higher education. Many institutions have made forays into distance learning―some

with excellent programs and dramatic success, and others with offerings considered rather bland by

students. The latter were not particularly well received.

A wide variety of business and financial models can work for the creation and delivery of distance

education, ranging from free distribution (generally without any attached assessment, certification or

degree) to full-price degree programs. Within legal education, distance programs have so far been on a

paid basis. Pricing models vary, but they generally reflect the same tuition structure as the rest of the

school.

This chapter addresses:

 Business case for distance learning. How does a law school assess its ability to provide

appropriate online programs?

 Start up and ongoing financial models. How should an institution develop budget models that

account for launching and sustaining online programs with reasonable expectations for

investment and returns?

 Home-grown programs, third-party partners, and institutional partnerships. When should an

institution develop a program internally and when should it look to outside partners and

investment for program development and support?

Business Case for Distance Learning

From both business and financial perspectives, the decision to offer distance learning should not be made

lightly but rather should be based at the outset on a sound, complete, and well-supported business case.

Setting forth and critically evaluating all factors of the proposed venture, including the strengths,

weaknesses, opportunities, and risks associated with the proposed offerings, and providing well-supported

revenue and cost projections will help the school accurately evaluate both the fit and opportunity of the

proposal. Of particular import are the potential costs associated with establishing or enhancing the

Information Technology (IT) infrastructure and the supporting personnel needed to ensure seamless

delivery of programs.

For institutions that already have robust systems and expert IT personnel, program development, testing,

and rollout should be readily achievable and affordable, both in financial and personnel terms.

Implementation will cost more for an institution lacking experts, experienced personnel, and a fully

functional, integrated, well-tested and adequately staffed IT infrastructure. It is worth noting that, in