The Economic Advantage of Online Education

Susan Gilbert, Dean of the School of Business and Management at Thomas Edison State College, wrote this article for the Huffington Post. It discusses some of the advantages of online education. Here is an excerpt: 

When an economist refers to a "revolution", he/she means a dramatic change, not a battle; as in Industrial Revolution, Agricultural Revolution, Information Revolution. This change is often attributed to the introduction of a technology that changes the way things are done; e.g., a reaper, a steam engine, a personal computer. However, as Peter Drucker pointed out in 1999, the real revolution and resultant cost savings that occur in an industry do so as a result of industrial engineering and the teachings of Adam Smith, rather than the technology itself. (The Wealth of Nations, 1776). Yes, a sewing machine may increase the seamstress' productivity from 1 shirt to 5 shirts per day; but it is the assembly line and specialization of labor that can magnify those results. Can we apply these lessons of Adam Smith to higher education? Can colleges be compared to tee shirt factories? These are the burning questions of our times, at least for those of us in higher education.

Distance education has been around for nearly 30 years, if we go back to the first Computer Assisted Learning Center in 1982; and web-based services in the area of education
date back at least 15 years. Blackboard was founded in 1997. Around 2000, I began using Webex for Sunday night help sessions with my executive MBA students. I recall the freedom of "working" in my pajamas (no web camera, please) coupled with personal savings of time and gasoline for me and the students. There were no labor savings to the institution; the technology provided greater access.

Click on the link to read the full article: http://www.huffingtonpost.com/susan-gilbert/online-education_b_1282646.html