By Monika Pal – N033

Challenges: We will understand how Top Universities are under financial trouble &
reviewing the unique challenges these Universities are facing. We will outline the Digital
transformational approaches that some schools are taking to improve their student
outcomes by boosting enrolment, retention, and student satisfaction, and in the process
resetting their financial trajectories. Troubled universities can reset their financial trajectory.

May 2019

© Peathegee Inc/Getty Images

by Li-Kai Chen, Claudio Brasca, Mark Hojnacki, and Charag Krishnan

Cost-reduction measures can often lead to decreased employee morale and can impact
student outcomes. But targeting strategic growth can expand the impact of an institution’s
mission and establish a more financially resilient university.

We’ll start by reviewing the unique challenges these institutions face. We’ll then outline the
transformational approaches that some schools are taking to improve their student
outcomes by boosting enrollment, retention, and student satisfaction, and in the process
resetting their financial trajectories. These efforts—which require an extraordinary
commitment and a highly focused execution—have allowed them to look past their financial
challenges and toward a future centered on serving students and the community.

Transformation Strategy:

1. Revenue growth/cost management

2. Recruitment of Trained Faculty & Staff

3. Sound Planning of Internal and external Communications/ Public Relations & Press
Releases

4. Repositioning of Brand

4. Create a centralized governance structure that is centralized metric dashboards

5. Launching new revenue-generating initiatives

6. Online and continuing-education programs

7. Marketing materials that highlighted specific educational programs.

8. Digital Transformation or Social Media Presence/Campaigns

9. Create Virtual Campus Tours

10. Introduced new professional-development programs for faculty and staff

Conclusion: To be financially stable, most Universities need revenue growth so rather than
focussing on the graph of declining enrolment we’ll start by reviewing the unique challenges
these institutions face. We’ll then outline the transformational approaches that some
schools are taking to improve their student outcomes by boosting enrolment, retention, and
student satisfaction, and in the process resetting their financial trajectories. These efforts
which require an extraordinary commitment and a highly focused execution have allowed
them to look past their financial challenges and toward a future -centered on serving
students and the community.

Reference: https://www.bplogix.com/blog/digital-transformation-of-higher-education-is-
your-university-ready

https://www.mckinsey.com/industries/public-and-social-sector/our-insights/how-to-
transform-higher-education-institutions-for-the-long-term#

That’s where digital transformation comes in. By leveraging technology and data,
institutions can:

 Use digital avenues like social media, websites, email marketing and more to recruit
and retain students.

 Measure institutional success and make data-driven decisions using big data.

 Digitize library resources so they are available online and for more than one student
at a time.

 Create mobile apps to keep students updated on campus events, news and more.

Every college and university will have a different area they want to focus on first, but some
of the primary goals of digital transformation for higher education include:
 Enhance Student Experiences: This focuses on improving student metrics like
retention and graduation rates, course success rates and other markers that prove overall
success.

 Improve Competitiveness: This goal focuses on differentiating an institution from

the competition by using digital avenues.

 Create a Culture of Data-Driven Decision Making: This includes adopting a digital

mindset across all areas of the campus for students, faculty, leadership and other staff
members.

 Optimize Resources: This covers everything from improving communication

between administrators to cutting costs related to electricity usage.

3 Digital Transformation Examples

 Studying & Note taking

Campuses are working to improve retention and graduation rates by adding interactive
whiteboard displays that provide students with a digital copy of the instructor’s notes during
each class. Since these displays are connected to the internet, instructors can also utilize
more resources during a lesson, like maps, additional data and online information. Students
can also benefit when they’re on the go. Mobile apps allow students to scan images and text
from any document, including books they might not be able to check out at the library. This
also eliminates the need for making photocopies, which reduces paper waste and can
support any on-campus “green” initiatives you have.

 Digital Payment Options

A large portion of banking is now done online and via mobile apps, so it makes sense for
colleges and universities to adapt. Students waiting for financial aid or work study checks
probably need the cash as soon as possible. With a digital process, there’s no need to wait
for a check to come in the mail and then head to the bank to make a deposit.

Many schools are also becoming cashless campuses by allowing payment for food, school
supplies and other on-campus items via mobile apps or student ID cards.

 Data-Driven Decision Making

The biggest benefit of any digital transformation strategy is the data that automatically
comes with it. Digital in this instance means measurable, because your data can tell you
whether a certain strategy is a success or not.
For example, think of a digital whiteboard display in a classroom. After every class, the
instructor’s notes can be automatically emailed to students. But if your automated data
analytics reveal that no one is opening the emails in a certain class, this might not be a very
valuable effort.

8 Digital Transformation Trends

eLearning Industry notes that there are two main business areas that digital transformation
is affecting:

 Services: This transformation involves creating new products and changing existing

ones. Examples include offering an online MBA program or migrating from using
tangible textbooks to digital eBooks.

 Operations: Processes are going completely digital. Examples here include applying

for admission or graduation, registering for courses every semester and monitoring
resource allocation using modern technology.

But how are colleges and universities putting their digital transformation strategies into
action? eLearning Industry explains with the following trends:

 The Internet of Things (IoT)

The IoT refers to the extension of internet access to devices and everyday items, like
a Fitbit fitness tracker. Schools can use the IoT to better allocate campus resources
by installing devices like intelligent thermostats and lighting. These smart devices can
detect occupancy and adjust settings accordingly to eliminate wasted electricity.

 Security
With so much student data available, security is a top concern — especially since IoT
devices are expanding the reach and amount of information that can be collected.
Institutions are installing new tools to enhance cybersecurity, most notably user and
entity behavior analytics to detect suspicious activities.

 Augmented Reality & Virtual Reality

Classroom learning can mimic hands-on experience through augmented reality (AR)
and virtual reality (VR). These technologies can put architect students right in the
middle of a construction site or bring medical students inside of a hospital.

 Blockchain Technology
Known for making Bitcoin possible, blockchain offers exceptional security. According
to Forbes, “blockchain is a public ledger that automatically records and verifies
transactions … and operates through a decentralized platform making it fraud
resistant.”In higher education, blockchain is being used to:
 o Verify academic credentials

o Share student records

o Secure infrastructure networks from hackers

o Access employment and criminal records

 Artificial Intelligence & Machine Learning

Artificial intelligence (AI) tools can be set up around campuses to answer simple
student questions, like where the library is or what time the cafeteria closes. This can
be especially impactful for first-year students who are still finding their bearings.

 Chatbots
The University of St. Thomas offers a website widget that lets students chat with
librarians and ask questions about basic research topics, eliminating the need for
them to go to the library or pick up the phone. This practice can be utilized across
any department to streamline processes like making appointments, requesting dorm
room maintenance or checking on financial matters.

 Big Data Analytics

Technology has fast-tracked the amount of data colleges and universities collect, and
digital transformation is all about using it to your advantage. Institutions are using
data analytics platforms to collect, manage, analyze and share reports for crucial
metrics like student success rates and retention rates. With the help of an
automated and secure analytics program, making data-driven decisions can become
the foundation of your digital transformation.
Higher Education is confronting several challenges.

 Alternative learning models

 Reduced government grants
 Questions on return on investment of higher education
 Changing demography causes reduced enrollment

 Consistent growth in services and operating costs

In recent decades, the population of the United States has shifted geographically
toward the south and west causing low enrolment in north and east region.

The number of high school graduates will peak in 2024.

Number will crash in 2030.

6% below than today’s number and 15% reduction in college enrollment.

Projected changes in the demand for higher education vary greatly from one region to
another. 

Administrative positions at colleges and universities grew by 60% between 1993 and 2009.

Concerns over quality education v/s Operating cost.

The cost of college increased by more than 25% in the last 10 years

Increasing number of faculty members to teach the new skills .

Increment in hourly wages of staff members.