Three weeks ago in this publication, Stephen Parker described the challenges facing professions and occupations that suffer from what is sometimes referred to as Baumol cost disease. This is the idea that some kinds of personal services find it difficult to generate productivity improvements beyond a certain point but they must pay salaries that compete with other occupations that can.
With an ever-evolving pandemic, what are the prospects of a second or subsequent wave, here or abroad? There is a real possibility that higher education will continue to be delivered online next year and perhaps beyond.
Recent statements in the media on the “financial risk” of universities given the current disruption created as a consequence of COVID-19 have received attention in a number of quarters.
The pathway to success for disrupters revolves around customer-focused innovation. The complexity of search is simplified, customer choice is widened and costs are lower. The customer experience is improved. The customers and the new suppliers win out.
Even with the recent federal government package, the current disruption in higher education seems overwhelming. The impacts are immediate and real.
The coronavirus is causing significant disruption. The question to be asked is: will this crisis be the catalyst for major positive change?