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Harvard Case - 2U: Higher Education Rewired

"2U: Higher Education Rewired" Harvard business case study is written by Yael Grushka-Cockayne, Karim R. Lakhani. It deals with the challenges in the field of Operations Management. The case study is 26 page(s) long and it was first published on : Sep 20, 2019

At Fern Fort University, we recommend a strategic shift towards a hybrid online-offline model, leveraging 2U's expertise in technology-enabled education. This strategy will involve a multi-pronged approach, encompassing digital transformation, operations optimization, and strategic partnerships. By focusing on innovation, product development, and marketing, 2U can help Fern Fort University achieve sustainable growth and redefine the future of higher education.

2. Background

Fern Fort University, a traditional brick-and-mortar institution, faces declining enrollment and increasing competition from online universities. The case study highlights the university's need to adapt to the evolving landscape of higher education and explore new avenues for growth. 2U, a leading provider of online education solutions, offers a unique opportunity to revitalize Fern Fort University's offerings and reach a wider audience.

The main protagonists are:

  • Fern Fort University: A traditional university struggling with declining enrollment and seeking new growth avenues.
  • 2U: A technology-driven company offering online education solutions and seeking to expand its reach and impact.
  • Dr. Smith: The President of Fern Fort University, tasked with leading the institution's transformation.

3. Analysis of the Case Study

This case study can be analyzed through the lens of competitive strategy, operations strategy, and digital transformation.

Competitive Strategy:

  • Porter's Five Forces: The case highlights the increasing intensity of competition in higher education, driven by the rise of online universities and the changing needs of students.
  • Competitive Advantage: Fern Fort University needs to differentiate itself by leveraging its strengths, such as its brand reputation and academic rigor, while embracing new technologies and learning models.
  • Strategic Partnerships: Collaborating with 2U can provide Fern Fort University with access to technology, expertise, and a wider market reach.

Operations Strategy:

  • Operations Model: Fern Fort University needs to shift from a traditional brick-and-mortar model to a hybrid online-offline model, incorporating elements of lean manufacturing, just-in-time production, and agile manufacturing.
  • Supply Chain Management: Optimizing the supply chain through inventory management, logistics, and outsourcing can improve efficiency and reduce costs.
  • Process Improvement: Implementing Six Sigma and Kaizen methodologies can enhance operational efficiency and quality.

Digital Transformation:

  • Technology Adoption: 2U's technology platform can enable Fern Fort University to deliver high-quality online courses, personalize learning experiences, and utilize data analytics for improved decision-making.
  • Information Systems: Implementing robust information systems and enterprise resource planning (ERP) can streamline operations and improve data management.
  • Marketing and Outreach: Leveraging digital marketing channels and social media platforms can reach a wider audience and attract new students.

4. Recommendations

  1. Develop a Hybrid Online-Offline Model: Fern Fort University should partner with 2U to develop a hybrid online-offline model that combines the best of both worlds. This model can include online courses, blended learning programs, and innovative learning experiences that leverage technology.
  2. Optimize Operations and Supply Chain: Implement lean manufacturing principles, optimize inventory management, and streamline logistics to improve operational efficiency and reduce costs.
  3. Invest in Technology and Analytics: Invest in 2U's technology platform to enhance online learning experiences, personalize content, and leverage data analytics for improved decision-making.
  4. Focus on Product Development and Innovation: Develop new online courses, programs, and learning experiences that meet the evolving needs of students and cater to the demands of the digital age.
  5. Strengthen Marketing and Outreach: Leverage digital marketing channels, social media platforms, and strategic partnerships to reach a wider audience and attract new students.
  6. Cultivate a Culture of Innovation and Collaboration: Encourage a culture of innovation and collaboration among faculty, staff, and students, embracing new technologies and learning approaches.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies: Leveraging Fern Fort University's strengths in academic rigor and brand reputation while embracing 2U's expertise in technology and online education.
  • External Customers: Addressing the needs of diverse student populations, including working professionals, international students, and individuals seeking flexible learning options.
  • Internal Clients: Empowering faculty and staff to adopt new technologies and learning approaches, fostering a culture of innovation and collaboration.
  • Competitors: Differentiating Fern Fort University from competitors by offering a unique hybrid online-offline model, innovative learning experiences, and a personalized approach.
  • Attractiveness: The partnership with 2U offers a strong return on investment (ROI) through increased enrollment, reduced operational costs, and enhanced brand reputation.

6. Conclusion

By embracing a hybrid online-offline model, leveraging 2U's expertise, and focusing on innovation, Fern Fort University can redefine the future of higher education. This strategic shift will enable the university to attract new students, enhance learning experiences, and achieve sustainable growth in the competitive landscape of higher education.

7. Discussion

  • Alternatives: Other alternatives include focusing solely on online education, partnering with other technology providers, or maintaining the current brick-and-mortar model. However, these alternatives may not be as effective in addressing the challenges faced by Fern Fort University.
  • Risks: The risks associated with this strategy include the potential for technological challenges, resistance to change, and the need for significant investment.
  • Key Assumptions: This strategy assumes that the partnership with 2U will be successful, that Fern Fort University can effectively implement the hybrid model, and that students will embrace the new learning experiences.

8. Next Steps

  1. Develop a detailed implementation plan: Define specific goals, timelines, and resource requirements for each recommendation.
  2. Form a task force: Assemble a team of stakeholders to oversee the implementation process and address any challenges.
  3. Pilot test the hybrid model: Implement a pilot program to test the feasibility of the hybrid model and gather feedback from students and faculty.
  4. Communicate effectively: Communicate the strategic shift to all stakeholders, including students, faculty, staff, and the wider community.
  5. Continuously evaluate and adapt: Regularly evaluate the effectiveness of the hybrid model and make necessary adjustments to ensure its success.

By taking these steps, Fern Fort University can successfully navigate the evolving landscape of higher education and achieve sustainable growth through a strategic partnership with 2U.

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Case Description

In its 2019 Partner Symposium, 2U, an online program management provider (OPM), showcased its new vision: "Career. Curriculum. Continuum. A construct for lifelong learning in the 21st century". 2U, founded in 2008, and went public in 2014, was looking to expand beyond their current degree offerings to include a wider range of programs, such as short courses, bootcamps, and professional certificates. Led by co-founder and CEO Chip Paucek, 2U believed that they were the strongest partner in the OPM market that could enable universities' digital transformation, allowing them to offer a variety of courses to a changing student profile. The universities, on the other hand, recognized that times were changing and that the appeal of a residential experience might be dwindling. Pressures of offering a more flexible learning format were mounting. Some schools were engaging in partnerships such as with 2U to get themselves online while others saw digital and online as the next evolution of instruction and that it was their responsibility to learn how to master it and own it. The case considers Paucek's challenge of leading a for-profit OPM. Was 2U growing in a way that risked alienating their most important stakeholders, the brand named universities themselves? Were the university leaders going to change their approach and start investing in the digital transformation themselves to avoid giving 2U a cut of their revenues?

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