Universities, once traditional public educational entities, have evolved over the years to acquire business models with dynamic management systems. The once non-profit intellectual environments have changed with the adoption of new systems. This essay looks at the differences and similarities between universities and traditional businesses and how they affect business continuity planning.
Universities today are concerned with financial independence and profitability. Some worthy programs may, for example, be eliminated if they have low enrollment and are not profitable. Students who need more time and attention are avoided and lecturers are evaluated more on their popularity with the ‘customer’ than on their ability to teach (Lapovsky, 2018) . Just like the traditional business model, universities play the role of service providers while the students are the customers. The business model prioritizes efficiency and customer gratification, and has widened the student-university relationship through the development of a system which creates entitlement and immediate satisfaction.
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Unlike businesses, universities are run by academics. Most of them are entirely public entities (Swain, 2016). The average university has existed for far much longer than the average business. The tuition fee for programs is not set according to their demand or the enrollment by students. This is unlike businesses where demand affects supply and prices. The emphasis on the importance of knowledge and innovation in universities is what has enabled them last, unlike businesses which can rise and fall over a period of years.
Business continuity planning ensures that a university or business is well prepared to deal with disruptive events and ensure the continuity of its operations. The traditional business model can help universities perform better at dealing with disasters and further ensure their continued existence. Businesses that adopt some features of the traditional university also stand a better chance of continued existence. Universities have adopted the business model while maintaining some of their traditional practices. For instance, fees are not set according to demand. This has helped them maintain their relevance and consequently exist much longer than businesses. A good mix of these differences and similarities can make institutions better prepared for disruptive events, ensuring their continued existence.
References
Lapovsky, L. (2018). The Changing Business Model For Colleges And Universities . Retrieved Nov 24, 2018, from Forbes: https://www.forbes.com/sites/lucielapovsky/2018/02/06/the-changing-business-model-for-colleges-and-universities/#1fee24085ed5
Swain, H. (2016). The Business of Running a University . Retrieved Nov 24, 2018, from The Guardian: https://www.theguardian.com/higher-education-network/2016/may/14/the-business-of-running-a-university
