Transformation in the Higher Education sector

“…the higher education sector is undergoing a fundamental transformation in terms of its role in society, mode of operation, and economic structure and value.” (Ernest & Young, 2012:4).

2.1 INTRODUCTION

The higher education sector is challenged by a variety of global developments that either harmonise the present higher education constitutions or straining their significance. Technology innovations made available the possibility of online distribution of large quantities of information and diagnostic instruments which transformed the economy and competencies required for economic performance (American Council on Higher Education, 2014:2). Technology innovations prompted the change in the economy to a knowledge economy and have the capability to remodel the numerous forms of higher education institutions and the higher education sector overall (Computing research association, 2013:2). This chapter considers present-day research conducted on the technology- and global developments that influence higher education institution models by means of a conceptual framework (Baumgardt, 2013:75).

2.2 HIGHER EDUCATION INSTITUTIONS

Over centuries higher education institutions’ role in society have been contemplated as being the collective centre for knowledge and learning and that higher education institutions entrusted students with these knowledge and learning through its structures, mode of delivery and procedures (Anderson, Boyles & Rainie, 2012:2). The twentieth century brought about a number of developments, inter alia technology, science and medicine that transformed the world people live in and the way people live. The impact of these developments gave rise to an increase in economic productivity, technological improvements, an escalation in mass communication and –entertainment, and improved health and living standards (Digital History, 2014). However, the status quo of higher education institutional structures, mode of delivery and students assessments were retained, even though, technology innovations changed the economic world around higher education institutions during the commencement of the twenty-first century (Anderson, Boyles & Rainie, 2012:2; The Economist, 2014).

2.2.1 Twenty-first century

Being informed by these developments the global economy of the twenty-first century endures remarkable transformation. As a result, these developments steered towards the globalisation of the economy in terms of an open, integrated, and borderless international economy that supports the international trade of goods, services, finances such as exchanges of currencies and capital movements, people by means of international travel and migration and the transfer of technology, ideas and information through the endorsements of international- and national policy (Intriligator, 2003:2; World Health Organisation, 2014). Subsequently, globalisation directed the transformation of the ideologies on which countries’ economic models were positioned which in turn impacted on these countries’ economic growth and –performance, and manifested by mirroring onto their workforce (Chang, 2003:41-60; HTSPE Limited, 2011:25-46). As a consequence, a country’s economic productivity and –performance, which were primarily determined by its geography, trade laws, research labs and patents, were redirected into the direction of building on the knowledge and skills of its workforce (Organisation for Economic Co-operation and Development, 2004:16; Ogunade, 2011:1-20). Bringing about the shifting of emphasises’ of countries’ economies to the role of knowledge, information and technology and learning as drivers for economic growth and –performance (Organisation for Economic Co-operation and Development, 2013; Nachef, Jantan and Boularas, 2014:225). In addition, the globalisation of world markets fast tracked the dissemination of information and technology as well as the frequency level of innovation (International Labour Office, 2011:iii-2). For that reason, a county’s workforce requires the capacity to apply the ever evolving information and communication technology (ICT) and innovative ideas to create new products and processes to achieve economic growth and –performance (Aubert & Reiffers, 2004:9-12; Dede, 2007:5-6). The materialising of new paradigms in terms of innovation and the advance of knowledge in relation to economic production transformed the global economy towards a knowledge-based economy (Organisation for Economic Co-Operation and Development, 2004:3; Kronos Incorporated, 2005:2; World Bank, 2013:1-2).

2.2.1.1 Knowledge-based economy

The knowledge-based economy provides for the development of new occupations and for other occupations to become obsolete bringing about evolving skills and competencies as the knowledge content of production processes and services are rising (International Labour Office, 2011:iii-2; Wegner, 2008:2). The knowledge-based economy requires high-level skills and -knowledge for work, citizenship and self-actualisation due to the extent and speed of change and the constant increase of the number and percentage of occupations and professional activities (United Nations Educational, Scientific and Culture Organisation, 1998:2-4; Levy & Hopkins, 2010:5-6; Cloete, 2014:16). For that reason, the knowledge-based economy requires a vast number of educated workers irrespective of their age, which are leading to a considerable global demand for education (Minoqu, 2006:2; Gilpin, 2011:204). Thus, education systems are faced with the responsibility to act in response to the globalisation of the workforce and the quest for high-level skills and –knowledge against the uninterrupted innovation of technology (Organisation for Economic Co-Operation and Development, 2014b:1).

2.2.1.2 Technology innovation

Technology innovation resulted inter alia the transformation of many economic sectors, improvement of economic growth and leading the way towards the twenty-first century. Noticeable transformation occurred in economic sectors inter alia commerce, medical and finance. In the commerce sectors technology innovation enables companies to increase their businesses’ knowledge in terms of their customer’s profiles and needs in present-day time to ensure lower costs, better customised and effective products and interactive services within less working hours. In terms of the medical sector, medical practitioners are able to increase the accuracy of their diagnoses and increase the treatment time of the diagnosed conditions and within the financial sector the relevant role-players are able to identify risk factors in advance and/or manage their potential impact with the help of financial instruments through the appropriate channels (Greenspan, 2000; Institute for a Competitive Workforce, 2011:2; McKinsey Global Institute, 2013:i).

Subsequently, technology innovation in the economic sectors filtered to the higher education sector and made it possible for higher education institutions to use technology for more than just back office functions. Technological innovations in areas inter alia e-learning, computer software and, physical and organisational structures provided higher education institutions with mobile computers, –phones and application software to enhance teaching and learning activities, and research corporations within and between other higher education institutions. This resulted in new founded prospects available for obtaining, developing and transporting learning content through different modes of delivering. In addition, different instruments became available for lecturers to facilitate lecturing which all resulted in a reduction of costs and increase of productivity for the relevant higher education institution (The Economist Intelligence Unit, 2008:4; Institute for a Competitive Workforce, 2011:2; Grajek, 2013:32). This was followed by the invention of online learning by means of mobile devices and laptops. Resulting in open resources inter alia free massive open online courses (MOOC’s), video modules, open courses and on-demand online assistance and expertise, which made higher education more accessible to the general population. Numerous technology innovative influences are prominent in a higher education institution’s strategic planning when deciding on which higher education institutional model would be best suited to meet the needs and requirements of the institution (Stansbury, 2014:1-4; The Economist, 2014; American Council on Higher Education, 2014:2). Omona, van der Weide and Lubega (2010:89) recognised a conceptual framework as components that are fostered within the planned research methodology to provide a universal report regarding the initial recognised studies that originated from the literature reviewed.

2.2.1.3 Conceptual framework

The conceptual framework for this chapter is to investigate the technology innovation influences on the current higher education institution models and which of these influences could envisage the possible evolving of higher education institutions towards developing a model that uses contemporary educational technologies to establish and maintain a private higher education institution in South Africa. In addition, the study investigates these influences’ impression on the institution’s managerial planning and its interpretation into policies and procedures, teaching- and learning practices and efficiency of the institution.

This is evaluated by taking into account that technology innovations are daily revolutionised which would differentiate the impact on individual higher education institution and that higher education institutions have different histories, cultures and demographics. Therefore, higher education institutions have various dimensions and cannot be exclusively positioned against a specific set of characteristics as there can be no “one size fits all” approach (Center for higher education policies, 2002:10-14; American Council on Education, 2014b:2). Due to the globalisation of the economy and technological innovation, new possibilities for higher education opened up in the occurring of new higher education institution models in terms of structures, mode of delivery, student’s assessments, access to resources and student profiles that are poles apart from the conventional higher education models (Soares, 2013:70).