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1、strategy+businessissue69WINTER2012TheUniversity’sDilemmaInthefaceofdisruptivechange,highereducationneedsanew,moreinnovativebusinessmodel.bytImLASEtErreprint00147essayGLOBALPERSPECTIVEglobalperspectivehealthcare—andtotalU.S.studentdebtnowstandsatmorethanUS$1tr
2、illion.Worsestill,oneoutoftworecentcollegegraduatesisunem-ployedorworkinginajobthatdoesnotrequireadegree.Third,institutionsofhighereducationfailtomeettheneedsofanothercriticalconstituency:em-ployers.EvenastheU.S.unem-ploymentrateremainsstubbornlyhigh,employme
3、ntforecastspredictashortageofeducated,medium-to1high-skilledemployeesinthefieldsofscience,technology,engineer-ing,andmath(knowncollectivelyTheUniversity’sasSTEM).Therearesimplynotenoughmathematicallycapableyoungpeopleinthepipeline.De-Dilemmaspitetheprospectof
4、millionsofun-filledjobs,manyinstitutionscontin-uetoallocatetheirscarceresourcesInthefaceofdisruptivechange,highereducationtothesofterfields—thehumanitiesneedsanew,moreinnovativebusinessmodel.andsocialsciences—whileunder-fundingtheinvestmentinscienceeducationt
5、hatwouldenableandbyTimLaseterFirst,theyfailtohelpstudentsencouragestudentstopursuethesefulfilltheirgoals.EvenintheU.S.,high-demandpositions.yone,andonlyone,mea-whichhas60percentofthetop-Inthebusinessworld,suchpoorsure,theinstitutionsofrankeduniversitiesinthew
6、orld,performancetypicallyleadstoin-Bhighereducationaroundtheoverallmetricsonsuccessfuldustryrestructuringfueledbynewtheworldareremarkablysuccess-matriculationaredismal.Lessthanentrants,aswellasinnovationbyaful:Theyreachfarmorepeopleto-two-thirdsofstudentsenro
7、lledinasubsetofincumbents.Thosemov-daythaneverbefore.Aboutathirdfour-yearinstitutionattainthetar-ingtooslowlyorinthewrongdi-ofAmericansovertheageof18geteddegree.Ofstudentsenteringrectiondon’tsurvive.Highereduca-haveattainedabachelor’sdegreeoracommunitycollege
8、,lessthanhalftionmightseemimmunefromsuchhigher—upfromlessthan20per-graduateortransfertoafour-yeardynamics.Anditprobablywouldbecent30yearsago.Intherestoftheschoolwithinsixyears.Althoughimm
