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UTK Elearning (EY-Parthenon) University of Tennessee-Knoxville eLearning Academic Leadership Retreat 29 August 2018 Agenda ► Background ► Market context ► UTK’s right to win ► Elements of success EY-Parthenon | Page 2 Background: our education practice We have deep industry experience in numerous sectors, including education Diversified Consumer Industrial Products Education Financial Services Information Health care and Media $ Life Sciences Oil and Gas Private Equity Technology EY-Parthenon | Page 3 Background: our education practice EY-Parthenon has completed 1000+ projects in over 95 countries in the last decade = Education Projects Completed by EY-Parthenon Early Years K-12 Higher Education Transnational Education ELT and Vocational Training EY-Parthenon | Page 4 Background: project overview EY-Parthenon’s engagement is focused on supporting UTK to develop a university-wide eLearning strategy and roadmap Goal ► Develop a university-wide eLearning strategy and a roadmap that operationalizes this strategy, by identifying specific actions the university can take to accelerate implementation Approach Phase 0: Phase 1: Phase 2: Project Mobilization Programmatic Priorities Operating Model Options ► Align on vision and goals ► Identify short-term, ► Enable UTK to put in place for online education at UTK medium-term and long- a sustainable, surplus- and identify key term programmatic generating eLearning stakeholders and opportunities, with operation for the long-term champions at UTK with emphasis on quick wins whom the project will to demonstrate momentum Objectives engage and commitment to online EY-Parthenon | Page 5 Background: project overview EY-Parthenon conducted both internal and market analysis, through research with stakeholders, employers, peers, students, and secondary sources Primary research interviews (n=39) Stakeholder interviews (n=16) ► Fabrizio D’Aloisio, Assistant Vice Provost for Enrollment Management and ► Steve Mangum, Dean, Haslam College of Business Director of Undergraduate Admissions ► Victoria Niederhauser, Dean, College of Nursing ► Kari Alldredge, Vice Provost, Division of Enrollment Management ► Joel Reeves, Chief Information Officer ► David Cihak, Director of Graduate School of Education ► Matthew Theriot, Interim Vice Provost for Faculty Affairs, Associate Provost for ► Chris Cimino, Senior Vice Chancellor for Finance and Administration Teaching and Learning Innovation ► Dave Dupper, Interim Dean, College of Social Work ► Dixie Thompson, Vice Provost and Dean of the Graduate School ► Jennifer Gramling, Director of Online Programs ► Melanie Wilson, Dean, College of Law ► Diane Kelly, Director, School of Information Sciences ► John Zomchick, Interim Provost and Senior Vice Chancellor ► John Kobza, Department Head of Industrial and Systems Engineering ► Terri Lee, Dean, College of Arts and Sciences Peer institution interviews (n=15) OPM interviews (n=8) ► Clemson University ► Southern New Hampshire University ► Academic Partnerships ► Noodle Partners ► Drexel University ► University of North Carolina ► Extension Engine ► Wiley Education Services ► Drexel University Online ► University System of Georgia ► HotChalk ► Florida International University ► University of Minnesota ► iDesign ► Florida State University ► University of Missouri ► Keypath ► Johns Hopkins University ► University of Southern California ► Pearson Online Learning Services ► Northeastern University ► University of Central Florida ► North Carolina State University Student surveys (n=1,153) ► Prospective students survey (n=624) ► Current/recent students survey (n=529) ► Current students (n=345) ► Recent students (n=184) Secondary research Sources ► IPEDs ► U.S. Department of Education ► School websites ► Online program manager websites ► Babson Survey Research Group ► Eduventures EY-Parthenon | Page 6 Agenda ► Background ► Market context ► UTK’s right to win ► Elements of success EY-Parthenon | Page 7 Market context Higher education enrollment growth has been driven exclusively by online/hybrid formats over the last decade Growth of hybrid/online vs. on-ground enrollment for all post-secondary institutions, 2002-2016 CAGR CAGR 16.6m 16.9m 17.3m 17.5m 17.8m 18.2m 19.1m 20.3m 21.0m 21.0m 20.7m 20.4m 20.3m 20.0m 19.9m 100% ('02-'12) ('12-'16) Total 2.2% -1.0% 80 60 On -0.1% -2.9% ground Online- 40 16.1% Hybrid 20 Hybrid 4.8% Online- 3.3% only 0 Fall 2002Fall 2003Fall 2004Fall 2005Fall 2006Fall 2007Fall 2008Fall 2009Fall 2010Fall 2011Fall 2012Fall 2013Fall 2014Fall 2015Fall 2016 Note: Online-hybrid is counted as students who are enrolled in at least one distance learning class EY-Parthenon | Page 8 Source: Babson Survey Research Group Online Learning Survey 2014; IPEDS; EY-Parthenon analysis Market context Students increasingly agree that eLearning programs deliver a quality academic experience in line with on-ground education Current students’ perception of online programs Q: What is your perception of Q: What is your perception of the overall quality of the the overall convenience of the following delivery formats? following delivery formats? Quality Convenience 100% 7 80 6 5 60 4 40 3 2 20 1 0 Online Hybrid On Online Hybrid On only ground only ground Average 5.4 5.5 5.4 6.2 5.1 3.8 EY-Parthenon | Page 9 Source: EY-Parthenon Student Survey (n=529) Market context UTK’s online + hybrid share of enrollment is in line with 100% Total enrollment, by delivery format, UTK competitive set, 298k 80 236k 60 2013 329k 40 On ground 218k 20 2013 Hybrid 106k -2016 0 27k % online Online Note: Source: + hybrid Public Program peers… IPEDs Innovators counts from IPEDs reflect count of programs for whichPrivate institutions indicated a completion occurred in the measured year 388k Innovators 51% Comparative 237k 2016 Peers 40% Aspirational 347k Peer 19% Tennessee 225k 20% UTK 102k 31% 28k 21% Public Innovators Private Innovators 64% Comparative Peers 42% Aspirational Peer 26% Tennessee 26% UTK 35% 28% EY -Parthenon | Page 10 Market context …but lags in number of programs Average count of online + hybrid programs, UTK competitive set, 2016 50 47 Online innovators average ~35+ online 40 programs per institution 30 27 Program 23 23 count 20 18 14 10 0 UTK Public Private Peers Peers Tennessee Innovators Innovators Comparative Aspirational Note: Program counts from IPEDs reflect count of programs for which institutions indicated a completion occurred in the measured year EY-Parthenon | Page 11 Source: IPEDs Market context Peer institutions’ growth underscores the potential opportunity for UTK Peer institutions’ online and graduate hybrid enrollment UT- Penn FIU UF UCF Arlington State 20K Graduate - fully online 17k Graduate - hybrid Undergrad - fully online 15 13k 12k 11k 10k 10 9k 8k 7k 7k 7k 5 0 2012 2016 2012 2016 2012 2016* 2012 2016 2012 2016 Graduate - fully 28% 25% 9% 8% 10% online ’16) - Graduate - hybrid 14% -29% 2% 0% (’12 Undergrad - fully 26% 27% 35% 19% 13% Annual Annual Growth online Note: Does not include undergraduate hybrid enrollment. *Includes undergraduate online enrollment reported as UF-Online EY-Parthenon | Page 12 Source: IPEDs Agenda ► Background ► Market context ► UTK’s right to win ► Elements of success EY-Parthenon | Page 13 UTK’s right to win Compared to other states in the Southeast, Tennessee residents have more frequently attended an out-of-state institution for an online degree Percent of students who attend out of state institutions, by delivery format Q: In which US state do/did you primarily live while completing your program? Q: In which US state was the institution you most recently attended? 80% 75% Top student institutions 70% included University of % of Phoenix and Western online Governors University students 60 56% attending 52% out-of-state 50% 47% institutions 44% 40% 40 36% 36% 33% 25% 20 0 West North South Florida Virginia Georgia Virginia Missouri Carolina Carolina Kentucky Arkansas Louisiana Mississippi Tennessee EY-Parthenon | Page 14 Source: EY-Parthenon Student Survey (n=529) UTK’s right to win UTK is well positioned to capture TN enrollment, given high awareness overall; however, UTK may need to increase awareness of eLearning programs TN resident awareness of universities TN resident awareness of university online Q: Please evaluate your knowledge of the following schools. programs Q: Please evaluate your knowledge of the following schools as it relates to their online programs? 100% 100% Not aware of their 80 80 online programs Aware but 60 60 not considered applying 40 40 Aware and considered applying 20 20 0 0 UTK UTK Online Online Peers Aspirational Peers Peers Peers Comparative Innovators Innovators Aspirational Comparative % 98% 86% 82% 69% % 63% 57% 39% 38% Aware Aware Note: See appendix for the list of peer institutions EY-Parthenon | Page 15 Source: EY-Parthenon Prospective Students Survey (n=624) UTK’s right to win UTK’s awareness is not as strong in the Southeast region, indicating an opportunity to bolster awareness of UTK’s online/hybrid offerings Southeastern resident awareness of universities Southeastern resident awareness of university Q: Please evaluate your knowledge of the following schools. online programs Q: Please evaluate your knowledge of the following schools as it relates to their online programs? 100% 100% Not aware of their online 80 80 programs Aware but not considered 60 60 applying Aware and considered 40 40 applying 20 20 0 0 UTK UTK Online Online Peers Peers Peers Peers Aspirational Comparative Innovators InnovatorsAspirational Comparative % 87% 79% 65% 62% % 59% 45% 42% 38% Aware Aware Note:
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