Kneu model
- 1. KNEU BUSINESS DEVELOPMENT MODEL: LOOK INTO THE FUTURE The research provided by: Sazonova Mariia, Grinka Marina, Kariuk Diana, Bratasyuk Inna Economics and Management faculty, 5th year, EPC 504i Academic supervisor: Skytova G.S., PhD, Associate Professor)
- 2. Background Considering KNEU as a non-profitable organization which operates in an intensive competitive environment, we should keep in mind that institutions of higher education are brought to the forefront of the innovation system, which makes it necessary to transform the management model of the university in accordance with new challenges of the external environment. We believe that enhancing KNEU’s business model will help our university to become more innovative, competitive and thus attract more applicants and improve brand name of the university.
- 3. KNEU business model (the end of 2017): Key Partners Public organizations: Ukrainian Marketing Association, KAIZEN Club in Ukraine, Tiltin BV etc.; Government; International partners; Educational organizations; Publishers; Outsourcing, IT and consulting, insurance companies; Partner Sites. Key Activities Educating of future specialists; Organization of events (conferences, job fairs, trainings with involvement of external actors etc); Scientific research; Training of staff; Maintaining of existing partnerships and developing of the new ones. Value Proposition Training of competitive specialists and creative personalities; Customer Relationships Middle term (2-6 years) mostly free public relationship with high frequency and fidelity. The approaches to communication are highly personalized and respectful. Customer Segments В2C: intelligent young people (mainly from all regions of Ukraine) in the age of 16-24 years old who are looking for a high quality education (and their parents), prestigious diploma, dynamic and socially active university Key Resources Human resources (professors of various ranks, lecturers, and/or researchers); Brand; Database; Intellectual property (library). Channels Web-site, Open door days, rating agencies, Facebook promotion, Word of mouth, Online publications Cost Structure Wages (near 30-40%), IT-support (15%), Utility bills (20-25%), Scientific researches, Publications, Trainings, Organization of events, Campuses (10%), Colleges (5%), Sports, Intellectual property, Royalties, Subscriptions. Revenue Streams Students’ payments (42%), Government assignations (57%), Foreign exchange gains (1%).
- 4. KNEU business model (future 10-15 years): Customer segments • The main segment will be the same – students (mainly school graduates). • Foreign students and students of different ages. • And also taking into account our new types of activities that will be described below, our customers also will be employers from business companies and employees. Customer relationships • Individual approach to each student with the help of IT technology will be adopted. Each student will have own education electronic record whole education process from the first course till the last. • A special platform (market place), which makes it feasible that students seeking for a job and employing companies meet.
- 5. KNEU business model (future 10-15 years): Value proposition • Differentiation of provided services. • Providing different professional courses and and trainings for those, who already had their degree. • Quite an affordable opportunity to get double diploma, which will be accurately quoted on the international labour market. Bigger opportunities to spend part of educational process in foreign university. Providing students with ability to have their internship abroad. • An university platform that will simplify the process of recruitment for companies. Key activities • Providing wide range of education services, profession and distant courses, research activities, trainings. • Consulting services for entities. • Student business incubator. • Development of organizational and legal support of intellectual property management system with the purpose of its commercialization. • Organization and development of international research with the participation of scientists, teachers and students. • Development of leading university scientific publications; implementation of student research programs and summer research schools. • Integration into educational programs of mass open online courses. • Moreover, KNEU will provide market place for employing companies in order to find potential
- 6. KNEU business model (future 10-15 years): Key Partners: • Business • Foreign universities; • Big domestic and international companies; • Government; • IT companies Key Resources: . • Human resources; • Brand; • Database; • Intellectual property (library, courses, patents etc.) Channels: • Social media; • Scientific conferences; • Website; • World of mouth
- 7. KNEU business model (future 10-15 years): Cost Structure: • General fixed costs (30%); • Salary (25%); • Marketing (5%); R&D (35%); • Improving of living conditions of dorms (5%); • We assume that all cost elements will stay the same as in the present business but new cost structure will be more oriented on R&D investments. Revenue Streams: • Educational services (50%); • Consulting (15%); • Patents (5%); • Professional courses (20%); • Marketplace (job research) (10%); • We believe that university is going to stay a non-profit organization; however, its will increase, due to payments of for courses and certification services. This will raise the level of autonomy of the university.
- 8. Recommendations in conclusion development strategies as "entrepreneurial universities"; full integration of educational and scientific units, development of postgraduate education programs; priority of external criteria for assessing the performance of universities; multichannel financing; identification of interested groups (stakeholders) and development of the system of relations with them; creation of "atypical" (for the traditions of the state university) units: a career center.