Continuing Professional Education: Are Universities and EdTech Competing?

Contents:

• What the DPO market looks like today
• What might change in the DPO system
• Implement new business approaches
• Develop new types of programs
• Start collaborating with EdTech

In this report, you will learn about key aspects that will help you understand the topic in more depth. We will consider important facts, interesting details and provide useful recommendations. Read on to gain valuable information and expand your knowledge.

• which university is the leader in revenue from continuing education;
• why universities and private courses have different audiences;
• how the continuing education market is changing;
• how universities can strengthen their positions;
• why, from the point of view of universities, some approaches of EdTech companies are “cheating”;
• what plans of EdTech companies cause concern among universities.

The relationship between traditional universities and online courses became a hot topic at the Moscow International Education Fair (MIEF). Several sessions discussed the prospects and challenges facing both professional education systems. Traditional universities and online courses each have their strengths and weaknesses, and their interaction can lead to new approaches to teaching. Participants emphasized the importance of integrating online formats into traditional educational programs, which can facilitate more flexible and accessible learning for students. The relationship between universities and EdTech companies varies: in some cases, they ignore each other, in others, they collaborate on short-term projects, and in some cases, they are already developing joint educational programs. However, there is one sector where the interests of universities and EdTech companies overlap: continuing professional education. Active collaboration is observed in this area, aimed at developing new skills and upgrading the qualifications of specialists. Both sides strive to create flexible and relevant courses that meet labor market demands.

If you decide to change careers or improve your skills in your field, you will likely have to invest in training yourself. This is especially true if your training is not funded by your employer or is not provided through a state retraining program for the unemployed. Investing in retraining can be an important step toward achieving career goals and increasing competitiveness in the labor market.

Over the past year and a half, private spending on education has increased significantly. At the Moscow International Education Fair (MIEF), experts from EdTech companies and universities offering continuing professional education discussed current trends in education and identified who is currently winning the competition for these financial resources. Leading experts analyze possible future developments in the education market and the impact of new technologies on educational costs.

What does the continuing professional education market look like today?

At the session "Continuing Education in the Career Path of Leaders: Universities, Enterprises, Regions," Ilya Korshunov, Deputy Director of the Institute of Education at the Higher School of Economics, presented important statistics on the state of contemporary continuing professional education. In addition to public and private universities, which primarily focus on undergraduate and graduate programs, as well as EdTech companies with their professional online courses, independent continuing professional education organizations and corporate universities occupy a significant share of the market. Russian Railways Corporate University was named the absolute leader in the number of students trained in continuing professional education programs in 2020, with more than 100,000 people trained. These data highlight the growing interest in continuing professional education and its importance for career advancement.

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Corporate universities of companies such as Gazprom Neft, Rosatom, and SIBUR have joined forces to create the L&D Academy. This educational institution aims to develop employee skills and competencies, thereby contributing to improved operational efficiency and the implementation of innovative solutions within the companies. The L&D Academy will offer training programs aimed at meeting the needs of the modern labor market and developing professional competencies in the energy and chemical industries.

The Russian Presidential Academy of National Economy and Public Administration (RANEPA) ranks among the leading universities in terms of the number of students trained. It also significantly outperforms other educational institutions in terms of revenue from continuing professional education (CPE) programs. In 2020, RANEPA's total revenue from such programs reached 2.8 billion rubles. When calculated per faculty member, the institution's income from continuing professional education also appears impressive, demonstrating the high level of demand and quality of the educational services offered.

In 2020, the Academy's income amounted to 1.919 million rubles, significantly exceeding the national average of 199,000 rubles. A number of educational institutions, such as the Academy of Social Management, the Moscow State Academy of Choreography, and the Moscow City University of Management, demonstrated even higher results. Interestingly, medical schools, which actively participate in the continuous medical education system and train a large number of doctors, report lower incomes. This suggests that continuing professional education in medicine is not the most profitable field.

The significance of 2.8 billion rubles per year for continuing professional education (CPE) programs at a large university such as RANEPA requires analysis. In 2020, RANEPA's total income from educational services amounted to over 19 billion rubles. Although revenue from continuing education isn't the primary component of this figure, it still plays a role. Meanwhile, leading Russian EdTech companies have long exceeded the 2.8 billion ruble mark annually, as noted by Evgeny Szhenov, a panelist and scientific director of the Scientific and Educational Policy expert center. Therefore, the conclusion is clear: universities may be losing their position in the continuing education market. In the face of growing competition from private educational platforms, higher education institutions must reconsider their continuing education strategies to remain relevant and attractive to students.

Participants in a discussion on the MMSO platform entitled "Continuing Professional Education in Regional Russian Universities: Confronting EdTech Projects" concluded that universities are not losing ground. Universities, especially regional ones, and EdTech companies primarily serve different market segments, allowing them to coexist. This difference in focus opens up opportunities for collaboration and the integration of new educational technologies into traditional education, which could improve the quality of educational programs at Russian universities.

Andrey Minaev, Rector of S. A. Yesenin Ryazan State University, noted that the university is not currently focused on competing with educational platforms. He identified several categories of students in continuing professional education (CPE) programs with whom the university actively collaborates and plans to continue this collaboration in the near future. These categories include both students and professionals seeking to improve their qualifications and expand their knowledge in various fields. The University is focused on providing high-quality education and tailoring its programs to the needs of its target audience, which confirms its commitment to developing and maintaining a high level of specialist training.

• Applicants who are admitted not based on the Unified State Exam results, but with a secondary vocational education diploma or a foreign certificate (they usually need preparatory courses before starting their studies);
• Students in the main programs who want to earn two diplomas during their studies - for example, in addition to a bachelor's degree in history, complete the continuing education program "Translator in Professional Communication";
• Employees of regional ministries and municipalities who are improving their qualifications in management disciplines.

Ryazan University continues to work on programs for various categories of students, striving to provide each student with the opportunity to obtain additional qualifications during their studies. This will allow graduates to be more competitive in the labor market and expand their professional horizons. The university is committed to continuously improving its educational programs to meet modern requirements and student expectations.

Sergey Chebotarev, Rector of the K. G. Razumovsky Moscow State University of Technology and Management, shared his experience implementing practice-oriented programs. Such programs, which allow students to simultaneously pursue a sommelier career, are becoming increasingly popular. This makes training more effective and helps graduates integrate more easily into the professional world. Practical training fosters the development of essential skills and knowledge, which in turn enhances students' competitiveness in the labor market.

Universities have a strong position in the continuing professional education (CPE) sector, where they have been working for many years. Mikhail Artemenkov, Rector of Smolensk State University, noted that this niche has been developing over a long period of time, with the main clients being regional government agencies and students at the universities themselves. Sustainable cooperation with government agencies allows universities to adapt their continuing professional education programs to current market needs and improve the quality of educational services. Artemenkov noted that continuing professional education (CPE) departments operate in a market economy. State funding accounts for only 20-30% of their revenue, and they must compete for these funds in open auctions with other providers. However, it is important to emphasize that the market for services for students and regional managers, many of whom received higher education at the same universities, differs from the open market at the national level. Artemenkov also added that he does not see the possibility of regional universities expanding their influence beyond CPE programs aimed at traditional target groups. What might change in the CPE system? Regional and small capital city universities should consider entering the continuing professional education (CPE) market. Even if they successfully occupy their niche, expanding their horizons can open up new opportunities for development. Attracting students from other regions and increasing the number of continuing professional education programs will not only help increase revenue but also strengthen the university's reputation. In a competitive market, it is important to adapt to changes and offer relevant educational solutions. Therefore, entering the continuing professional education market can be a strategically important step in strengthening a university's position and ensuring its sustainable growth.

According to experts speaking at the Moscow International Conference on Continuing Professional Education, maintaining the status quo is complicated by two main factors.

At the session "Continuing Professional Education in Regional Russian Universities: Confronting EdTech Projects," the moderator noted that revenue from continuing professional education (CPE) has become an important aspect for universities. Inna Andrejanova, Head of the Competency Development Department at Yaroslav the Wise Novgorod State University, emphasized that this revenue is no longer solely an internal matter for educational institutions. In the face of increasing competition from EdTech projects, universities must adapt and find new ways to attract students, making continuing professional education (CPE) an important part of university financial development strategies.

The founding Ministry of Science and Higher Education evaluates universities for their ability to generate revenue, particularly through continuing professional education (CPE). According to a ministry representative, it is important that income from CPE constitute at least 30% of a university's budget. Universities that win the "Priority 2030" program are required to report their income from CPE and other sources. The question is whether universities can increase their revenue by attracting their established audience. However, this resource is not unlimited, and new approaches must be sought to expand the target audience and increase financial revenue.

The demands of students in continuing professional education (CPE) programs are changing. Mikhail Sverdlov, Business Development Director at Skypro, noted that over 50% of online course participants seek to acquire a new profession rather than deepen their knowledge in their current field. This indicates a growing interest in career changes and the need to adapt educational programs to the current needs of the labor market. EdTech companies are actively responding to requests and recognizing the challenges and needs of their clients. However, it is unclear to what extent universities understand the needs of their continuing professional education program consumers. It is possible that traditional undergraduate students will begin to seek retraining opportunities on online platforms en masse. This creates a need for universities to adapt to changes in the educational services market and offer relevant programs that meet the new requirements and expectations of students.

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University rectors express different opinions on the future of higher education. Many emphasize the importance of adapting curricula to a rapidly changing world. In the context of digitalization and globalization, the introduction of new technologies into the educational process is essential. Rectors also note the importance of an interdisciplinary approach, which will help students develop the skills necessary for a successful career.

Furthermore, rectors emphasize the need to improve the quality of teaching and professional development of teachers. It is important to create conditions for scientific research and innovation that will facilitate the development of universities.

In the future, universities should become knowledge centers, open to collaboration with business and society. This will better prepare students for the real challenges and demands of the labor market. Thus, rectors are confident that the successful development of universities is possible only if they are flexible and ready for change.

Regional universities should focus on the development of continuing professional education (CPE) in today's conditions. Experts propose three key strategic directions that will help strengthen the position of universities in the educational market. First, it is important to adapt educational programs to employer demands, which will improve graduates' competitiveness. Second, it is essential to actively implement modern technologies and teaching methods, which will make the process more effective and engaging for students. Third, it is necessary to develop partnerships with businesses and government agencies, which will create additional opportunities for practical training and student employment. These steps will help regional universities not only remain relevant but also take a leading position in the field of continuing professional education.

Implement new business approaches

The MMSO participants identified the slowness and bureaucracy of university processes as one of the key problems in the field of continuing professional education (CPE). An example of such a situation is the experience of Evgeny Szhenov: several years ago, to enroll in a fee-based continuing education program at a university, a person had to go through several departments, sign a contract, receive a paper receipt, pay it at a bank, and then submit a payment receipt to the university. This complex and lengthy procedure significantly hinders access to educational programs and reduces their attractiveness to potential students. Optimizing processes and switching to electronic formats could significantly improve the situation in university continuing education. Currently, educational institutions continue to lag behind commercial companies in terms of customer focus and the effectiveness of their program promotion. According to Szhenov, the leaders of EdTech companies are not particularly intelligent, but they have demonstrated speed and flexibility, promptly introducing business approaches into the educational process. Universities should pay attention to this experience and adapt it to improve their services and attract students. Irina Andrejanova believes that many processes in the continuing professional education system can be optimized at the local level, without the need for changes in government policy. She and her team are working to create a universal model of continuing professional education for regional universities that can be easily adapted and implemented across a variety of educational institutions. The model Andreivanova describes will incorporate modern marketing tools, as well as new methods for developing and promoting unique flagship programs. The inclusion of a digital builder for mass-market competencies and other components will enable regional universities to effectively build their brands in the continuing professional education market. The developers are confident that this model will improve the quality of interaction with new audiences and enhance the competitiveness of educational institutions.

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The strength of a university brand lies in its ability to attract students, faculty, and partners, creating a unique image and reputation. Effective university brand promotion involves a strategic approach to communications, active use of digital platforms, and the creation of high-quality content. It is important to highlight the institution's values ​​and achievements, as well as unique programs and opportunities for students. Effective promotional methods can include creating informative and attractive websites, an active social media presence, hosting events and webinars, and collaborating with alumni to cultivate a positive image. A key aspect is the ongoing monitoring and analysis of advertising campaign effectiveness, which allows for the adjustment of strategies and the strengthening of brand influence.

Dmitry Gudzenko, Director of the Specialist Training Center at Bauman Moscow State Technical University, expressed the opinion that higher education institutions cannot fully adopt the methods of EdTech companies. At the session "Continuing Education in the Career Path of Leaders: Universities, Enterprises, and Regions," he noted that university continuing professional education (CPE) departments are rethinking traditional work models, increasing marketing budgets, and adapting to new sales trends. However, Gudzenko believes that some methods used by EdTech companies are perceived by universities as "cheating." This highlights the complex relationship between educational institutions and technological innovations in education.

The companies' primary goal is to capitalize and attract significant investment, sometimes with high promotion costs. For a university center for continuing professional education (CPE), there is no opportunity to develop through resale to a large investor, so its business model must be fundamentally different. It is important to focus on creating unique educational programs that meet market needs and promote the professional growth of specialists. This approach will not only attract students but also enhance the center's reputation, which in turn will open up new opportunities for funding and collaboration with other organizations.

Develop new types of programs

Elena Zagaynova, Rector of Lobachevsky State University of Nizhny Novgorod, spoke at a discussion of her proposals for the development of university continuing professional education (CPE). As a doctor of medical sciences, she emphasized to her colleagues the importance of continuing medical education. Elena Zagaynova emphasized that advanced training for physicians is possible not only within medical schools but also at multidisciplinary universities, which expands access to quality education and ensures a variety of educational programs.

It's important to choose the right niches for development at multidisciplinary universities, based on the expertise of their faculty. For example, you could focus on digital competencies for medical professionals or offer relevant knowledge in molecular biology and immunology. Continuing professional education (CPE) not only improves management and soft skills but also serves as a source of modern scientific knowledge, emphasizing the importance of integrating science and education.

At the session "Continuing Professional Education in Regional Russian Universities: Confronting EdTech Projects," Nina Aniskina, Rector of the Pastukhov State Academy of Industrial Management, presented her approaches to implementing CPE programs. The Academy is unique in that it does not offer traditional undergraduate and graduate programs, but focuses exclusively on continuing education and professional retraining courses. This focus allows the Academy to quickly respond to changing labor market needs and provide relevant knowledge and skills that meet modern requirements.

In a competitive environment with traditional universities and EdTech, significant investment in marketing and constant updating of the formats and content of educational programs is necessary. One of the most effective approaches, as Nina Aniskina notes, is practice-oriented training for entire teams in a project-based format. For example, during an intensive course, a team of employees, under the guidance of an experienced instructor, can develop a quality management system adapted to the needs of their organization. This approach not only increases employee knowledge but also facilitates the practical application of acquired skills directly in the workplace.

Aniskina emphasizes that the need for continuing professional education (CPE) programs is an integral part of the modern educational system. She states: "The Bologna system functions effectively where it is complemented by CPE, which helps orient graduates to labor market requirements. This refinement is only possible through projects and practice-oriented activities." She also noted that such project work makes it easier to attract industry practitioners, which facilitates deeper interaction between education and the real needs of employers.

Start Collaborating with EdTech

Participants from educational institutions at the Moscow International Education Fair (MIEF) believe that "smart collaboration" with online education companies is a key area for the development of university continuing professional education (CPE). Inna Andrejanova expressed this opinion, emphasizing the importance of partnerships between universities and educational platforms to improve the quality and accessibility of educational services. Joint initiatives can contribute to the creation of innovative programs that meet modern labor market requirements and educational standards.

Mikhail Artemenkov asserts that EdTech companies can assist universities in scaling up the specialized competencies and expertise of university specialists to a wider audience. In this collaboration, businesses will offer effective marketing processes and support for online students, while universities will provide unique knowledge and experience. This interaction can significantly improve the quality of education and the availability of specialized skills for students, which is an important aspect of the modern educational process.

We can effectively complement each other in areas where there is a shortage of teaching staff and necessary competencies. Furthermore, there is the possibility of partially sharing each other's resources. Higher education institutions provide excellent theoretical training and basic knowledge. However, in the area of ​​practical application, especially in light of current trends, gaps sometimes arise. In my opinion, it is through collaboration that these shortcomings can be overcome and a higher level of education can be achieved.

The convergence of universities with EdTech raises certain concerns among educational institutions. Mikhail Sverdlov expressed the opinion that undergraduate students may pursue a second profession not directly at the university, but on partner online platforms. This could change the traditional approach to education and necessitate the adaptation of university programs to new realities. It's important to consider that integrating technology into the educational process can both improve the quality of education and provoke resistance from universities seeking to maintain traditional teaching methods.

We are ready to provide free tuition to university students using the ISA model, Mikhail stated. Mikhail Artemenkov noted that this model does not take into account the interests of educational institutions. He emphasized that this effectively allows EdTech colleagues to encroach on university territory, and it is unclear what benefits we receive in return. Universities are free to offer retraining programs independently, including on market terms.

The discussion revealed that universities are interested in promoting continuing professional education (CPE) programs to the wider market. However, they also seek to maintain their traditional niches. This demonstrates the need for a strategic approach to the development and implementation of CPE programs, which will allow higher education institutions to compete successfully while maintaining the uniqueness of their educational offerings.

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