BUILDING ECOSYSTEMS IN HIGHER EDUCATIONAL

INSTITUTIONS BY MEANS OF STUDENT PERCEIVED VALUE OF

THE SERVICE

VANYA SLANTCHEVA-BANEVA

Spring Scientific Session of Faculty of Mathematincs and Informatics, Sofia University I 2015

HYPOTHESIS

When setting up an ecosystem of partnerships and interrelations, Higher Educational Institutions (HEIs) take into account the Value Proposition they deliver to their targeted segments. Than,…

a HEI could efficiently design an ecosystem upon its confirmed Value Proposition by measuring and evaluating it through the Student Perceived Value of the service delivered.

BUILDING HYPOTHETIC HEI’S ECOSYSTEM THROUGH BUSINESS MODEL CANVAS

KEY PARTNERS

Providing capacity-building solutions and extending image and global reach – universities, institutes, educational centers, Acquisition of academic activities, training and consulting organizations, NGOs Reduction of uncertainty – High schools, First-cycle degree institutions

KEY ACTIVITIES

Teaching (advising, examining, grading students; course designing content development Exchange and mobility R&D Publishing Cooperation with business Staff training (Facilitating, Career enhancement, Administrating, Student and staff affairs, IT, Additional services) Maintenance and repair

VALUE PROPOSITION

1. Progressive and proactive higher educational service co-created with the student

2. Highly performed bundle of programmes within a modern physical environment

3. Practitioner-centered educational service with up-to-date course design

4. Better-infrastructured and better-attributed educational service and awareness

CUSTOMER RELATIONSHIPS

Personal academic or mentor assistance Automated administrative services Extra-educational self-service (library, Café, IT services, bank services, gym) Communities and alumni Co-creation initiatives (logo idea generation)

STUDENT SEGMENTS

1. ALERT HIGH -SCHOOL GRADUATE

2. SCHOOL-LEAVER & COLLEGE SEEKER

3. “GO-TO-WORK” STUDENT

4. SWITCHER FROM OTHER HEI

KEY RESOURCES

Teaching staff (academics, practitioners, Non-teaching staff, B&M store (learning areas and facilities, classrooms, equipment, IT system and infrastructure, Brand (copyrights) Financing (state, project or corporate)

CHANNELS

“Brick & Mortar” education: HEI building, University campus, Subsidiaries “Click & Mortar” education: Distant or e-learning Platforms

COST STRUCTURE

Value Driven (focused on value creation) High fixed costs structure (salaries, rents, utilities) Variable costs – part-time lecturer wages Economies of scale – reducing the average cost per programme Economies of scope - reducing the average cost per course Per Student Economics

REVENUE STREAMS

fixed pricing Student Fees (Term fee, Usage fees, Subscription fees, Administrative services fees, L icensing) Part-time teaching staff fees Publishing Social-life activities fees

dynamic pricing (Negotiation)

AN EXAMPLE OF A HEI’S ECOSYSTEM IN A BULGARIAN CONTEXT

HEI INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

MARKETING AND SELLING

INBOUND LOGISTICS

 

Student

enrollment and

hunting

Building service

expectations

HIGHER EDUCATIONAL

SERVICE PRODUCTION

AND DELIVERY

 

 

Teaching and Examination

Administration process

OUTBOUND

LOGISTICS

 

 

Managing

alumni

ONGOING

MARKETING

SERVICE

 

Administrating

and additional

educational

services

MA

RG

IN

GENERAL ACTIVITIES IN A HEI’S VALUE CHAIN. SERVICE MARKETING SPLITS ACROSS

IF STUDENT PERCEIVED QUALITY OF A SERVICE MEANS…

Image

Expected quality

Experiences quality

Tech

nic

al q

ualit

y

WH

AT

Fun

ctio

nal q

ualit

y

HO

W

Ph

ysi

cal

En

vir

on

men

t

WH

ER

E

Eco

nom

ic o

utc

om

e

HO

W M

UC

H

Marketing Communications SalesImage

Worth of mouthPR

Customer needs and values

TOTAL PERCEIVED QUALITY

Image

Adapted from Grönroos, C., Service Management and Marketing: Customer Management in Service Competition., 2000: 67.

HEI INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

MARKETING AND SELLING ACTIVITIESEXPECTED Q

UALITY IS BEING

FORMED

INBOUND LOGISTICS

 

Student

enrollment and

hunting

Building service

expectations

HIGHER EDUCATIONAL

SERVICE PRODUCTION

AND DELIVERY

 

Teaching and Examination

Administration process

OUTBOUND

LOGISTICS

 

Managing

alumni

ONGOING

MARKETING ACTIVITIES

SERVICE

 

Administrating

and additional

educational

services

MA

RG

IN

THEN, AN INTERPRETATION OF STUDENT PERCEIVED QUALITY THROUGHOUT THE CHAIN IS TO BE MARGINAL.

QUALITY IS BEING EXPERIENCED BY STUDENT

TO

TA

L P

ER

CEIV

ED

QU

ALIT

Y IS

BEIN

G A

SS

ESS

ED

IT OTHER WORDS,STUDENT PERCEIVED QUALITY OF A SERVICE IS:

Total Perceived Quality =

Experienced Quality – Expected Quality

Quality = Perception – Expectation

or

IF MARGINAL WE SHALL CONSIDER THE QUALITY PERCEPTION BY MEANS OF THE VALUE PERCEPTION

AND, STUDENT PERCEIVED VALUE OF THE SERVICE IS:

SPV = TPV – TPC,

where

SPV – Student Perceived Value

TPV – Total Perceived Value

TPC – Total Perceived Costs,

Student Perceived

Value

Total Student Costs

Total Student Value

Purchase and Service Encounter

Costs

Search Costs

Aftercosts

Mon

ey

Tim

e

Ph

ysi

cal Eff

ort

Psy

cholo

gic

al

Bu

rden

s

Sen

sory

B

urd

en

s

Pu

rch

ase

Op

era

tin

g C

ost

s

Inci

denta

l Exp

ense

s

Pro

du

ct V

alu

e

Serv

ices

Valu

e

Pers

on

nel

Valu

e

Serv

ice T

ime

Ph

ysi

cal

en

vir

on

men

t Valu

e

Imag

e V

alu

e

Necessary Follow-Up

Problem Solving

Adapted by Kotler and Keller, 2007:64 и Lovelock and Wirtz, 2007:135.

WHICH SENSIBLY CAN BE UNFOLDED AS:

THEN, WE NEED THE EFFICIENCY MODEL OF THE SERVICE DELIVERY TO ADOPT (CORRESPOND) STUDENT PERCEIVED VALUE TOWARDS HEI’S TOTAL PRODUCTIVITY METRICS.

EFFICIENCY MODEL OF HIGHER EDUCATIONAL SERVICE DELIVERY

SERVICE PROCESS

Student-Administration Interaction

Student- Teaching staff

Encounter

Teacher preparation Students preparation

INPUTS

OUTPUTS

Organizational Ecosystem

Student Contribution S

tudent Perc

eiv

ed

Quality

Output quality

Imag

e Internal HEI efficiency

(cost efficiency) External HEI efficiency

(revenue efficiency

STUDENT

PERCEIVED VALUE

IS BEING

ACCOUNTED

HEI’S

PRODUCTIVITY

IS BEING

EVALUATEDAdapted from Grönroos, C., Service Management and Marketing: Customer Management in Service Competition. 2nd ed., John Wiley & Sons, 2000: 214.

COMMENT

From the perspective of the efficiency model Student Perceived Quality has been consequently influenced by HEI’s organizational ecosystem.

Hence, when being accounted, Student Perceived Value reflects the consistency of the Value Proposition–Organizational Ecosystem relation.

HYPOTHESIS RESOLUTION Both the efficiency, and the efficacy of the HEI’s organizational ecosystem need to be referred to Student Perceived Value because the metric envisions as feedback how its Value Proposition and Ecosystem structure interrelate.