A Case Study of Financial Consideration of eLearning at Assumption University

A Case Study of Financial Consideration of eLearning

at Assumption University

[email protected]

www.charm.au.edu

Prof.Dr. Srisakdi CharmonmanBoard Chairman and CEO

College of Internet Distance EducationAssumption University

Keynote Address

International Conference on eBusiness 2008 (INCEB 2008)

Grand Mercure Fortune Bangkok Hotel

November 6-7, 2008

1. Introduction.

2. The College of Internet Distance Education of Assumption University.

3. Financial Consideration of M.Sc. in Management Program.

4. Financial Consideration of M.Sc. In ICT Program.

5. Financial Consideration of Ph.D. in eLearning Methodology Program.

6. Financial Consideration of Certificate Program.

7. Financial Consideration of Chorus Program.

8. Concluding Remarks.

A Case Study of Financial Consideration of eLearning at Assumption University.

2

The term “eLearning” may be defined as learning thru electronic means and the electronic means of choice is the Internet.

3

1. Introduction.

According to Sloan Consortium, the term “eLearning” should be used only when the Internet is employed 80-100% of all learning activities.

4

Introduction (Cont.)

As of the year 2008, about 96% of large US academic institutions (with at least 15,000 students) are offering eLearning.

5


There is no subject in which eLearning is not used in the US.

There are many highly successful and profitable eLearning universities, notably University of Phoenix which has been making net profit per year of billions of baht.

6


There have also been unsuccessful and unprofitable eLearning programs, notably UKeU (United Kingdom eUniversity).

Therefore, it is highly desirable to make financial consideration of eLearning programs.

7


It may be said that there are three levels of eLearning- University level.- K12 level.- Corporate level.

8


The university level includes mainly degree programs and certificate programs operated

by higher educational institutions. The K12 level includes eLearning

for kindergarten to Grade 12.

9


Corporate level includes

training programs

at business organizations as well as governmentand semi-government organizations.


10

Prof. Srisakdi Charmonman’s proposal to establish the College of Internet Distance Education was approved by the Board of Trustees of Assumption University on April 25, 2002, with himself as - Chairman of the Board. - Chief Executive Officer (CEO) of the College.

2. The College of Internet Distance Education of Assumption University.

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Prof. Srisakdi Charmonman also wrote the first draft of the decree to legalize eLearning in Thailand which was later published in the Royal Gazette in October 2005.

CIDE of AU (Cont.)

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The College is managed more or less like a business

in the sense that it is headed by: - Chief Executive Officer (CEO) similar to a university president. - Chief Technology Officer (CTO) similar to the Vice President for Technology.

CIDE of AU (Cont.)

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- Chief Operating Officer (COO) similar to the Vice President for Administration. - Chief Academic Officer (CAO) similar to the Vice President for Academic Affairs

CIDE of AU (Cont.)

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The College of Internet Distance Education was established to offer eLearning without the purpose of making profit. As a matter of fact, about 15 US$ million was invested to construct “Srisakdi Charmonman IT Center” with 12 floors and about 12,000 square meters as well as all the required IT and audio visual equipments.

CIDE of AU (Cont.)

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Srisakdi CharmonmanIT Center.

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The College of Internet Distance Education of Assumption University, - The first university in Thailand to offer a complete university

degree program.

- The first university in the world to offer

the Ph.D. program in eLearning

Methodology.

CIDE of AU (Cont.)

17

The College uses eBusiness for eLearning in the sense that all the processes are done thru the Internet, including- eAdvertising of the eLearning programs.- eApplication where students submit their applications thru the Internet.

CIDE of AU (Cont.)

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- eInterview in which the admission officers interview the applicants thru the Internet.- eAdmission in which the announcements that the students have been admitted into the programs are made thru the Internet.- eRegistration where students register for the courses thru the Internet.

CIDE of AU (Cont.)

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- eAttendance where students listen to or view the lectures thru the Internet.- eAssignment where students get the assignment and submit their work thru the Internet.- eExamination in which students take the examinations thru the Internet.

CIDE of AU (Cont.)

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- eGrading in which the professors post the grades and students read the grades thru the Internet.- eGraduation in which students may join the graduation ceremony thru the Internet.

CIDE of AU (Cont.)

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There have been over 300 students in the Master of Science in Management Program.

The program requires 36 credits or 12 courses.

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3. Financial Consideration ofM.Sc. in Management Program.

There are 5 majors:1 Small Medium Enterprises

Management. 2 Human Resource Management.3 Technology Management.4 Strategic Marketing Management.5 Business Management.

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M.Sc. in Management (Cont.)

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6 Core Courses

MS6501 Organization Management

MS6502 Marketing Management

MS6503 Financial Management

MS6504 Operations Research

MS6505 Research Methods

MS6506 Strategic Management


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Small Medium EnterprisesElective Courses

MS6511 SME and New Venture Management.

MS6512 Venture Capital for Entrepreneurs.

MS6513 Managing Growing Enterprises.

MS6514 Managing the New Product Development Process and Innovation.

MS6515 Advanced Topics in Entrepreneurship.

MS6516 SME Venture Plan.

MS6517 Seminar in SME Management.


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Human Resource Management Elective Courses

MS6521 Human Resource Management.

MS6522 Leadership and Interpersonal Dynam.

MS6523 Organization Design and Behavior.

MS6524 Motivation and Productivity.

MS6525 Employee Development and Training.

MS6526 Negotiation.

MS6527 Advanced Topics in Human Resource Management.

MS6528 Seminar in HRM Management.


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Technology Management Elective Courses

MS6531 Technology Entrepreneurship.

MS6532 Operations & Technology Management.

MS6533 Marketing of High Technology.

MS6534 Information Communication Technology Management.

MS6535 Strategic Management of Technology and Innovation.

MS6536 Advanced Topics in Technology Management.

MS6537 Seminar in Technology Management.


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Strategic Marketing Management

Elective CoursesMS6541 Consumer Behavior.

MS6542 Pricing Strategies.

MS6543 Product and Brand Management.

MS6544 Integrated Marketing Communication.

MS6546 Marketing Strategy.

MS6547 Customer Relationship Management.

MS6548 Advanced Topics in Strategic Marketing Management

MS6549 Seminar in Strategic Marketing Management.


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Business Management

Elective CoursesMS6551 SME and New Venture Management.

MS6552 Venture Capital for Entrepreneurs.

MS6553 Managing Growing Enterprises.

MS6554 Managing the New Product Development Process and Innovation.

MS6555 Advanced Topics in Entrepreneurship.

MS6556 SME Venture Plan.

MS6557 Seminar in SME Management


Consideration I : Courseware Only.

The Contract for each Subject Expert

is to develop a courseware

to be used 9 times

or 3 years, each with 3 trimesters.

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M.Sc. (Management) Financial

Each course includes 45 hours. In the classroom case,

the honorarium is 1,500 baht/hour

or 67,500 baht/trimester

or 607,500 baht for 3 years.

31

M.Sc. (Management) Financial Consideration I (Cont.)

It was decided to pay the Subject

Expert 180,000 baht per courseware

to use 3 years. The amount 180,000 baht is only

about 30% of 607,500 baht.

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A total of 30 coursewares have been

developed.

The cost for the Subject Expert

is 30 x 180,000 = 5,400,000 baht With 300 students each taking

12 courses the income would be

300 x 36 x 4,000 = 43,200,000 baht33


The income over expenses or Gross Profit

is 43,200,000 – 5,400,000 baht

= 37,800,000 baht

34


For the M.Sc. (Management) program,

the CLMS (Content and Learning Management System) was “AUplus” developed by Sarmart Telecoms (Samtel).

CIDE and Samtel made an agreement for Samtel to be paid about 3,000 baht

per student per trimester.

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Assuming that a student takes

4 courses/ trimester, each student

requires 3 trimesters.

The payment to Samtel would be about

300 x 3 x 3,000 = 2,700,000 baht The income over expenses or Gross Profit for

courseware development and CLMS

is 37,800,000 – 2,700,000

= 35,100,000 baht

36


Consideration II : Income/Expenses

For One Year

Income

1) Entrance Fees

200 students @ 1,000 baht = 200,000 baht

2) Matriculation Fees

100 students @ 8,000 baht = 800,000 baht

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M.Sc. (Management) Financial

3) Student Activities Fees 100 students @ 6,000 baht = 600,000 baht

4) Tuition Fees From all the batches 14,220,000 baht

5) Miscellaneous Fees Proposal defenses, 3,800,000 baht Final defenses, etc.

6) University Fees 12,500 baht each 4,218,000 baht Total Income About 23,838,000 baht 38

M.Sc. (Management) Financial Consideration II (Cont.)

Expenses

1) Samtel Expenses 1,200,000 baht

2) Facilitator Expenses 2,300,000 baht

750 baht/hour

3) Research Supervision, 3,800,000 baht

Exams, etc.

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4) Exam Supervising 1,000,000 baht

5) PR, Miscellaneous 3,000,000 baht

Total Expenses 11,300,000 baht

Income over expenses or Gross Profit about 23,800,000 – 11,300,000

= 12,500,000 baht40


There have been over 100 students in the Master of Science in ICT Program with 4 majors :- Information Technology Major.- Computer Communications and Network Major.- Computer Graphics and Animation Major.- Technology Management Major.

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4. Financial Consideration ofM.Sc. in ICT Program.

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ICT 6000 Computer System Organization.

ICT 6001 Information System Development.

ICT 6002 Internet Technologies.

The 3 Core Courses

M.Sc. in ICT Program (Cont.)

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In each major, a student must take3 core courses, 3 major required

courses plus 5 elective courses from other majors or from M.Sc. in Management and a 3-credit project.


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Information TechnologyRequired Courses

ICT 6100 Database Design and Management.

ICT 6101 Mobile and Wireless Technology.

ICT 6200 Computer Communication Network.


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Computer Communications and Network Required Courses

ICT 6200 Computer Communication Network.

ICT 6201 Mobile and Wireless Technology.

ICT 6203 Computer and Network Security.


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Computer Graphics and Animation Required Courses

ICT 6300 Computer Graphics.

ICT 6302 Internet Multimedia.

ICT 6304 3D Modeling.


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Technology Management

Required CoursesICT 6400 Management Information System.

ICT 6401 Information Technology Management.

ICT 6404 Enterprise Database System.


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The CLMS used in M.Sc. (ICT)

is “SCITplus” developed at SCIT

from Moodle. The payments to Subject Experts

and Facilitating, Instructors are paid

only when the coursewares are used.


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The rate is

30,000 baht to Subject Expert

30,000 baht to Facilitating Instructor

Total = 60,000 baht

for each time the courseware is used. In case of the classroom mode,

the instructor is paid

45 hours x 1,500 baht = 67,500 baht


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Approximate Revenue Per Year

1) Entrance Fees 70,000 baht

70 students at 1,000 baht

2) Matriculation Fees 360,000 baht

45 students at 8,000 baht

3) Student Activities Fees 270,000 baht

at 36,000 baht


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4) Tuition Fees 6,000,000 baht

5) Miscellaneous Fees 2,000,000 baht

6) University Fees 2,400,000 baht

Total Income about 10,100,000 baht


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Approximate Expenses Per Year

1) Subject Expert 1,080,000 baht

3 trimesters x 12 course x 30,000

2) Facilitators Expenses 1,080,000 baht

3) Research Supervision, 1,500,000 baht

Exams, etc.

4) PR, Miscellaneous 1,500,000 baht

Total Expenses 5,160,000 baht

Gross Profit 4,940,000 baht


As of October 2008, the Doctor of Philosophy Program in eLearning Methodology is the only such program in the world.

5.1 Graduation Requirements.5.2 Nationalities of Ph.D. in eLearning

Methodology Students. 5.3 Nationalities of Ph.D. in eLearning

Methodology Applicants.5.4 Income Expenses

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5. Financial Consideration for Ph.D. in eLearning Methodology

Assumption University confers the degree of Doctor of Philosophy in eLearning Methodology upon students who meet all the requirementsas follows:

1) Pass the qualifying examination.2) Pass the dissertation proposal defense

and dissertation final defense.

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5.1 Graduation Requirements.

3) Pass English language test such as TOEFL score of at least 550 PBT/213 CBT or IELTS score of 6.5 or other English tests that are of equivalent standard.

4) Have the dissertation or a part of dissertation published or obtain an acceptance by a scholarly publication with peer review.

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Graduation Requirements (Cont.)

5) Complete at least 48 credits approved for the dissertation.

6) Library and financial clearance with the University.

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Graduation Requirements (Cont.)

As of the year 2008, the Ph.D. in eLearning Methodology program has six batches which include 12 nationalities: - American - Canadian- British - Australian- New Zealander - Iranian- Filipino - Paraguayan- Vietnamese. - Burmese- Romanian - Thailand

Approximately 45 % of the students are Foreigners.

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5.2 Nationalities of Ph.D. in eLearning Methodology Students.

Nationalities of Ph.D. in eLearning Methodology Students.

Ph.D. Students at CIDE, 2007

Thai

Iranian

Filipino

Australian

New Zealander

Canadian

Paraguayan

American

Vietnamese

Myanmese

British

Romanian 58

Based on the database the applicants included 20 nationalities: - Thai - Iranian- Filipino - Australian- New Zealander - Canadian - Paraguayan - American - Vietnamese - Burmese - British - Romanian

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5.3 Nationalities of Ph.D. in eLearning Methodology Applicants.

- German - Chinese - Japanese -

Kenyan

- Srilankan Tamil - Pakistani

- Sri Lankan - Gambian Similar to the nationality

of Ph.D. students, approximately 44 % of applicants are foreigners.

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Ph.D. Methodology Applicants (Cont.)

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5.4 Income Expenses

There is no course requirement

for the Ph.D. program

and thus no courseware expense. The Ph.D. income:

1) Admission Processing 36,000 baht

24 students @ 1,500

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Income Expenses (Cont.)

2) Matriculation Fees 192,000 baht

24 students x 8,000

3) University Fees 300,000 baht

24 students x 12,500

4) Tuition Fees 3,024,000 baht

48 students

x 9 credits x 7,000

63

5) Qualified Exams 720,000 baht


6) Dissertation Proposal 288,000 baht


7) Dissertation Final Defense 175,000 baht

7 x 25,000

Total Revenues 4,735,000 baht


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The Ph.D. Expenses

1) Q ualified Written Exams 126,000 baht

21 students x 3 instructors

x 2,000

2) Oral Exams 168,000 baht

21 students x 4 instructors

x 2,000

3) Dissertation Proposals 210,000 baht 21 students x 5 instructors x 2,000


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4) Seminar Speakers 60,000 baht

12 speakers x 5,000

5) Dissertation Advisors 1,000,000 baht

6) PR, Miscellaneous 500,000 baht

Total Ph.D. Expenses/year 2,064,000 baht

Income over Expenses or Gross Profit

4,735,000 – 2,064,000

= 2,671,000 baht/year


CIDE Cooperates with SME to provide 18 courses:

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6. Financial Considerationof Certificate Program

SME101 Concepts of Starting SME Business

SME102 Introduction to Marketing for SME

SME103 Financial Management for SME

SME104 Accounting and Budgeting for SME

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Certificate Program (Cont.)SME105 Production and Service Management for

SME

SME106 Sustainable Growth in SME Business

SME107 Analysis of Trends, Opportunities and Strategies for SME

SME108 Creativities and Innovations for SME

SME109 Information Technology and eCommerce for SME

SME110 SME Business and Advanced Marketing

SME111 Risk Management and Internal Control for SME

SME112 Business Plan for SME

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Certificate Program (Cont.)

SME201 The Roles of the Office of Small and Medium Enterprise Promotion

SME202 Promotion of Brand Names

SME203 Knowledge Management for SMEs

SME204 Cost Management

SME205 Import and Export

SME206 Supply Chain Management and Logistic

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The 18 courses are available free

of charge because the project

has been paid by OSMEP (Office of Small and Medium Enterprise Promotion)

The approximate budget: 1) Personal 1,742,900 baht

2) Operating 5,957,100 baht

Total 7,700,000 baht


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There are 9 million members of SME. Over 20,000 have registered. We hope to get at least 1 million

participants.


CIDE has cooperated with the Hospice Foundation of Thailand to produce “eLearning for Bedside Chorus for Palliative Care”.

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7. Financial Consideration for Chorus Program

Ten songs have been implemented “อิ่��มอิ่� �น” หน�งในร้ อิ่ย“ ”“เร้าม�เร้า” วิ�มานดิ�น“ ”“ร้�กไม�ร้� ดิ�บ” ชั่��วิฟ้�าดิ�นสลาย“ ”“ย��มส� ” ฝากฟ้�าทะเลฝ"น“ ”“ขอิ่ไม�เป็%นเหม&อิ่นใคร้” ร้�ก“ ”

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7. Financial Consideration for Chorus Program(Cont.)

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CIDE provides the service free

of charge or as a charity:

- Courseware on how to sing

- Singing lessons

- Delivery of the courseware

Chorus Program (Cont.)

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As of the year 2008, 96% of large

US academic Institutions

(15,000 students up)

are offering eLearning. Some institutions are highly successful and

profitable like Phoenix in the US. Some institutions are sadly unsuccessful and

waste a lot of money, like UKeU in the UK. Every institution should make financial

consideration of their eLearning programs.

8. Concluding Remarks

75

A case study at the College of

Internet Distance Education of

Assumption University is given:

- Ph.D. Programs

- Master’s Programs

- Certificate Programs

- Charity Program

Concluding Remarks (Cont.)

76

All parties should examine

case studies at various institutions

to apply the experiences

for the benefits of their own

organizations and, eventually,

their country.

Chorus Program (Cont.)

Documents

A Case Study of Financial Consideration of eLearning at Assumption University