In this article from CNBC, we learn that a Harvard professor thinks it very likely that half of all colleges and universities will go out of business because of the development of online learning. And indeed, online education is far more cost-effective and convenient for many potential students. For many kinds of educational subjects, you really don’t need a physical building to go to as long as you have a computer and a connection to the internet. The costs of housing and transportation are eliminated and the tuition of such courses could be greatly reduced from the levels that we see now.
There are over 4,000 colleges and universities in the United States, but Harvard Business School professor Clayton Christensen says that half are bound for bankruptcy in the next few decades.
Christensen is known for coining the theory of disruptive innovation in his 1997 book, “The Innovator’s Dilemma.” Since then, he has applied his theory of disruption to a wide range of industries, including education.
In his recent book, “The Innovative University,” 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.
