Sunday, September 2, 2018
CNBC, Harvard Business School Professor: Half of American Colleges Will Be Bankrupt in 10 to 15 Years:
In his recent book, The Innovative University, [Harvard Business School Professor Clayton] Christensen and co-author Henry Eyring analyze the future of traditional universities, and conclude that online education will become a more cost-effective way for students to receive an education, effectively undermining the business models of traditional institutions and running them out of business.
At the Innovation + Disruption Symposium in Higher Education in 2017, Christensen specifically predicted that "50 percent of the 4,000 colleges and universities in the U.S. will be bankrupt in 10 to 15 years."
More recently, he doubled down on his statements, telling 1,500 attendees at Salesforce.org's Higher Education Summit, "If you're asking whether the providers get disrupted within a decade — I might bet that it takes nine years rather than 10." ...
Fortunately, Christensen says that there is one thing that online education will not be able to replace. In his research, he found that most of the successful alumni who gave generous donations to their alma maters did so because a specific professor or coach inspired them.
Among all of these donors, "Their connection wasn't their discipline, it wasn't even the college," says Christensen. "It was an individual member of the faculty who had changed their lives. Maybe the most important thing that we add value to our students is the ability to change their lives," he explained. "It's not clear that that can be disrupted."