University

University of the future

A thousand year old industry on the cusp of profound change

Over the next 10-15 years, the current public university model in Australia will prove unviable in all but a few cases

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University of the future

Contents

Introduction and executive summary Drivers of change Evolution of the university model Current state Case for change Streamlined Status Quo Niche Dominators Transformers Conclusions Implications for universities Implications for policy makers Implications for the private sector Ernst & Young’s framework for assessing and designing a model for the future Ernst & Young Higher Education contacts Methodology Ernst & Young research team

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University of the future

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Introduction and executive summary

The current Australian university model — a broad-based teaching and research institution, with a large base of assets and back office — will prove unviable in all but a few cases.

Ernst & Young’s view is that the higher education sector is undergoing a fundamental transformation in terms of its role in society, mode of operation, and economic structure and value. To explore these themes and future directions, we have conducted an industry-wide study of the main forces impacting the higher education industry globally and locally, and the opportunities, challenges and implications for Australian universities. We conducted a mix of primary and secondary research, including interviews with more than 40 leaders from public universities, private universities, policy makers and sector representative groups. Our interviewees included representatives from more than 20 universities, including 15 Vice-Chancellors. The topic attracted immense interest around Australia. Our primary hypothesis is that the dominant university model in Australia — a broad-based teaching and research institution, supported by a large asset base and a large, predominantly in-house back office —...