Omni University is a for-profit college that has expanded rapidly by marketing online degree programs. In 2013, the university president sent a memo to the board of directors outlining his plans for growth and for avoiding a financial crisis. The memo asserts that online programs successfully attract students, while the on-campus programs fail to do so. The president assumes that online education is more popular because it is convenient, less expensive, and more accessible. These assumptions are reasonable, but hidden assumptions in the memo undermine its validity. Online education is not inherently superior to traditional education, and online programs do not always provide the same level of education as traditional programs.

The president assumes that online education is more popular because it is convenient, less expensive, and more accessible. These are certainly true of online education. A 2016 survey by Gallup reported that 15% of adults in the U.

S. have a bachelor’s degree or higher, and that many who earned a college degree did so without leaving home. However, that does not mean that online education is preferable to traditional education. An online degree program may be more convenient for some people, but for others, it may prove to be less convenient. Some people may prefer to study at home, but others may prefer to study on campus, where the other students may enrich their experience. An online degree program may be less expensive, but less capable programs may be offered online simply because the cost of creating and distributing them is negligible. Online degrees also may be less expensive because the student lacks certain expenses that would not be incurred in a traditional setting, such as room and board. However, if the cost of an online degree program is comparable to traditional education, then these financial advantages may be offset. Furthermore, some people may have access to online degrees but lack the skills and motivation to complete them, and other students may lack the motivation to complete any type of degree program. An investment in traditional education may be more beneficial than an investment in an online program.

Another assumption in the memo is that the cost-saving effects of online education are evident in Omni’s budget. However, if an online program is clearly inferior to a traditional program, then the university’s expenses may increase, not decrease. For example, if an online degree program consists of short video lessons that do not allow the students to gain practical experience or to interact with other students, then the university’s expenditures for staff, facilities, and curriculum materials may increase, even if the number of students enrolled in the online program decreases. The costs of offering an inferior program may also decrease enrollment, as students may opt to enroll in a traditional program instead. This increases the university’s costs, even though the university’s expenses decreased.

Another assumption in the memo is that enrollment in online degree programs increases revenue, while on-campus degree programs do not. This assumption is based on an assumption that online degree programs produce the same amount of revenue as traditional degree programs. According to the same Gallup survey, only 12% of adults have graduated from high school, and 74% have not earned a bachelor’s degree. This means that the majority of adults are not seeking online degrees. It is possible that those who enroll in the online degree programs are motivated to obtain an education, and that a traditional program is not preferable. Some students may prefer a traditional program because they feel more connected to other students and to the instructors. Others may prefer traditional programs because they are less expensive. If a university offers online degree programs, then it must market those programs in addition to traditional programs. Online marketing is very expensive, and this expense may offset the revenue produced by the online degree programs.

The president’s assumption that online education is more profitable than traditional education is based on an incorrect assumption about the quality of the online courses. If an online degree program provides the same level of education as the traditional program, then the university may experience a decrease in enrollment. If an online degree program produces inferior education, then the university may experience a decrease in enrollment, an increase in expenses for the inferior program, or both. The quality of online programs is difficult to assess, and even the best online degree programs offer only a subset of the education offered in the traditional programs. Some online programs may be inferior to traditional programs, and some traditional programs may be inferior to online programs. If the quality is poor, then the university will not experience an increase in revenue, but will experience a decrease in enrollment, an increase in expenses, or both.

The president’s assumptions do not indicate that online programs should be implemented at Humana University, but they may indicate that the strategies currently used by the university to increase enrollment are not effective. If the online programs are inferior, then enrollment may decrease, and the university’s expenses may increase, or enrollment may remain unchanged and the university’s expenses may remain the same. If the online programs are superior, then enrollment may increase, and the university’s expenses may decrease. If the university’s current strategies are not effective, then the university will be forced to change them, and this may cause some students to become dissatisfied with the university, which may negatively affect enrollment. The success of online programs depends on the quality of their education, and this quality does not depend upon whether the programs are traditional or online.