E-business and online learning: Connections and opportunities for vocational education and training

This study examines the connections between e-business and online learning and considers the opportunities for the vocational education and training (VET) sector arising from these connections. The report shows that, historically, e-business and online learning evolved separately within vocational education and training, although examples of convergence between the two fields are now emerging. The report argues that encouraging this convergence will benefit VET customers and organisations.

Definitions and objectives

E-business is defined as doing business electronically, while online learning is defined as the use of computer networks to provide access to learning materials, activities and support. Online learning is a sub-set of e-learning and flexible learning.

The specific objectives of the project are to identify:

• the existing and potential connection between e-business and online learning and opportunities for applying e-business solutions to the online VET environment
• examples of good practice in applying e-business to online learning
• benefits, barriers, risks and other factors impacting on the application of e-business principles and processes to online learning.

Methods

The research methods for this study included a literature review; an internet search; interviews with representatives from Australian educational organisations which have a full or partial e-business model for online learning systems; an analysis of the e-business models used by overseas educational organisations which have a clearly articulated e-business model and also provide online learning; and an analysis of the e-business models and solutions implemented in sample non-educational organisations that could be transferred to the VET environment.

Major findings

The major findings are set out below, following the sequence of the chapters in the report.

The convergence of e-business and online learning in the 'information age'

In VET provider organisations throughout the 1980s and 1990s, computing and networking for administrative purposes evolved separately from the teaching and learning uses of computing and networking, partially explaining the parallel paths taken by e-business and online learning in VET.

In the mid-to-late-1990s, the information age, heralded by the spread of telecommunications technologies and electronically networked business strategies, provided the context for the growth of e-business. The information age also created the preconditions for online learning to develop within a framework whereby online learning is one of many online customer services available to students, delivered by flexible, customer-centric VET providers.

There is an increasing interest in contemporary vocational education and training in using electronic technology to provide not just online learning, but a range of other services for students, such as enrolment and information provision, as well as online marketing. These new practices are indicators of the growing convergence between e-business and online learning in VET.

Although much research in VET focusses on online learning, e-business is having, and will always have, more impact on the economy, jobs and enterprises than online learning. E-business deserves more research attention in the sector.

Online learning repositioned as a service of customer-centric VET organisations

The focus of this study is online learning as a delivery system, not the act of learning. Online learning is just one of many front office student services in a VET organisation that conducts business electronically.

Online learning systems should be viewed as one among many front office services that are integrated with processes in the back office and the supply chain. Vet staff managing online learning systems are developing an understanding of business processes and a contemporary customer-centric business philosophy.

E-business embraced by customer-centric, efficiency-conscious VET organisations

A number of VET organisations in Australia are using e-business to improve efficiencies in their supply chain, to improve their customer relationship management, to integrate their back office functions and to improve their procurement practices. These e-business practices often impact directly or indirectly on the delivery of online learning.

This positioning of online learning as one component of an integrated, e-business approach of a customer-focussed organisation complements the previous emphasis in VET of stimulating the adoption of online learning by improving pedagogy and quality measures.

New business models from overseas

Examples from overseas of e-business models that involve online learning include:

• providing customers with free online learning opportunities, to build customer relationships
• teaching customers online, free of charge, how to use the product, so they encourage others to buy the product
• using online collaboration to expand market reach for a range of services, including online learning
• providing customers with access to large databases of online learning and print materials
• implementing e-business by using online learning to teach staff about new systems.

While there are lessons for vocational education and training in each of the business models used overseas, a number of Australian VET organisations are already using similar models to those implemented overseas. However, VET organisations need to be wary of directly imitating models developed for different contexts, such as those developed for multinational bookstores, large banks or national post offices.

Examples of good practice

Some VET organisations, such as the Open Learning Institute in Queensland, Swinburne University of Technology in Victoria, WestOne in Western Australia and Central West Community College in New South Wales, are already some way towards bringing about a convergence between e-business and online learning.

The study provides examples of VET organisations developing customer relationship management systems and online enrolment systems that link to their online learning systems. The study also provides examples of VET organisations using e-marketing strategies to connect with their online learning students. Examples are provided of VET organisations using e-business to deliver a wide range of electronic services to their students. One of the services bundled for the student is online learning.

The major Australian organisations examined for this study and the connections they make between e-business and online learning are listed below:

• Central West Community College, New South Wales leverages off its strong e-business infrastructure to deliver many electronic services, including online learning.

• Open Learning Institute, Queensland uses customer relationship management systems to achieve internal efficiencies and to provide many customer services such as online learning.

• WestOne, Western Australia uses e-business to satisfy the holistic needs of the student, not just students' interest in online learning; for example, facilitating internet and email access for technical and further education students statewide.

• Swinburne University's School of Business and eCommerceTafe Division, Victoria provides a wide range of web-based services, including support for online learning.

• Manly Warringah Community College, New South Wales uses websites to partner third parties to provide an expansive program of courses and services, including online learning.

• Douglas Mawson Institute of Technology, South Australia is trialling the use of e-procurement to release back office staff from manual form filling, potentially re-assigning them to customer-related activities, such as administrative support for online learners.

• Securities Institute of Australia, New South Wales uses customer relationship management systems to improve information handling, reduce manual processes and improve relationships with customers, as well as to support online learning.

• Sydney Community College, New South Wales uses e-business to provide customers with information 24 hours a day, 7 days a week, which has priority over providing online learning.

• Challenger TAFE, Western Australia is currently implementing online enrolment and providing online learning as part of its strategic objective to provide customers with choice about how to access resources.

• Australian Taxation Office, Australian Capital Territory uses online learning to train staff to deliver e-business services to the public, including electronic lodgement of taxation returns.

• Anz Bank, Victoria uses online learning to train staff to deliver e-business services to the public, including electronic banking.

Benefits, barriers and risks

The benefits of applying e-business principles and processes to online learning are different for customers and for the provider organisation. Benefits for customers include user choice and access to personalised services delivered electronically. Benefits for organisations include increased market reach and enhanced relationships with customers.

Barriers to achieving the customer services and improved business efficiencies made possible by incorporating online learning systems within an e-business framework include costs, user resistance, technology availability, limited staff skills and organisational inexperience.

Significant risks associated with e-business, such as vendor instability and premature technology obsolescence, privacy invasions and legal issues, need to be covered by a risk management program for embedding online learning within an e-business framework.

Educational, organisational, cultural and other factors

It is no simple matter to merge online learning and e-business, as online learning on its own is a complex field. In addition, educational issues regarding online learning are often interconnected with business, technological and marketing issues. For instance, there are ongoing debates in contemporary VET about business issues such as whether online content should be built in-house or the production outsourced or the content bought off the shelf. There are also debates about the benefits of rival off-the-shelf learning management systems.

Many organisational issues impact on the development of e-business models for online learning systems in VET, such as the range of new skills needed to develop, market and deliver online learning. VET managers will be challenged by the progressive rise of e-business, for instance, by customers finding it easy to access online the new suppliers of electronic learning products.

Recent research has identified the cultural characteristics of customers and providers which could constrain the development of online learning and e-business in VET.

Technology creates the opportunity for the use of e-business practices with online learning, but the technology is not always available for all users and it keeps changing as new functionalities are made available.

Planning strategies

The study highlights the development of a new business philosophy among many VET managers where flexible learning and its sub-set, online learning, are seen as components of the essential way of being in business; that is, to be demand-driven and market-driven not supply-driven and technology-driven. E-business is an aid in achieving these business goals.

The study also shows that e-business and its linkages with online learning will vary from one organisation to the next. Instead of seeking a planning template therefore, managers are advised to examine their own organisation, their markets and their partnerships, and let this strategic analysis influence the identification of alternative directions.