This article explores the impact that e-business is likely to have on the provision of open and distance learning (ODL). It argues the likelihood of a major growth in the use of distance education, and the emergence of global consortia, possibly built around disaggregated value chains, that will create one or more global virtual universities. It suggests the technological developments that will underpin this process, the nature of the value-net-based relationships between institutions engaged in consortia, and the qualities of the Web that are impacting on ODL. It discusses such issues as the development of new e-learning pricing models; the use of Web advertising to generate income; the importance of scale and the concomitant pressure for institutional mergers and alliances; and the impact of e-commerce practices on administrative processes. The article suggests the emergence of hubs that bundle services customers want onto a single website, and the pressure for institutions to become 'sticky' in order to secure customer loyalty. Design strategies to ensure 'stickiness' are suggested. Existing ODL providers will need to address the challenges posed by e-business practice if they are to compete.
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