More and more students and business schools are choosing MBA programs that are taught online, either fully or partially / Viktor Hanacek / Picjumbo-com

New technologies have already significantly changed the way people live and work, but business education has not yet undergone a fundamental transformation. Despite digital technologies and the abundance of online distance learning courses (MOOCS), most people who want to get an MBA from a top school choose to study in person, take a career break, and come to campus.

However, there are signs that online MBA programs will become the most popular among students over time. More and more students and schools are choosing programs that are taught entirely or partially online. This is due to several factors. Among them are stricter visa regulations, schools’ desire to conquer overseas markets, the development of technology used in teaching, and the growing trust in online degrees.

Demand for and supply of online MBAs is growing around the world, although the reasons for this growth vary from country to country, says Matt Robb, managing director of consultancy Parthenon-EY. Australia, for example, has long had a strong market for distance learning. And now, thanks to online technology, leading Australian business schools can offer their students more interactive content, Robb adds.

For UK business schools, online MBAs have become an opportunity to attract international students who are unable to come to the UK due to high travel costs or strict student visa requirements. “Almost everywhere, demand from students for online education exceeds supply,” says Robb.

Time pressure is no obstacle

John Colley, Deputy Dean, Warwick Business School
"The flexibility of an online MBA will be in great demand among a generation that is constantly experiencing a lack of time and stricter demands from employers. Obtaining an MBA remotely can be combined with such a busy life."

Another reason for the growth of online MBAs is that schools are becoming more sophisticated in their use of technology. Many are breaking up lectures into video segments and offering interactive online lessons where students can ask questions of professors, Robb says. “Nobody is going to sit through an hour-long lecture online, so you have to do something to keep them interested,” he adds.

Many leading schools are realizing the potential of online learning to give their brand maximum visibility. For example, the UK’s Warwick Business School has over 1,200 students enrolled in its online MBA course, compared to just 75 people studying for the degree in a full-time program on the school’s campus. The school has opened two studios on its campus to create content for online programs. Educational videos can show, for example, a bank’s back office. The studio team travels to various companies and shoots short videos that students can then share.

Business schools are finding it increasingly difficult to attract quality students

Management / Business Education

Imperial College Business School launched its Global Online MBA (GMBA) in January 2015, and it is now the largest such programme in London in terms of student numbers – 220. Most of these students would not have chosen to study a traditional MBA, says David Lefevre, director of the Edtech Lab at Imperial College. “An increasing proportion of MBA students are working and interacting online with people in different time zones. They find a blended approach to learning natural, and the value of a traditional face-to-face MBA is not obvious,” he explains.

But many schools remain cautious about the move to a purely online format. IE Business School in Spain boasts the technological equipment of its Madrid campus, which includes, for example, a room with 48 screens on the walls for interactive online classes. According to IE’s Director of Innovation, Jolanta Golanowska, online content has been used in the school’s MBA programs for 15 years and is an integral part of the educational process. However, the school does not yet offer the opportunity to obtain an MBA degree entirely online. “We are absolutely convinced of the need for people to communicate in person. They do an MBA not only for new knowledge, but also for personal advancement. And for this, business connections are needed. If they are established online, they will not be as strong as those that arise as a result of studying together in the classroom,” says Golanowska.

Growing demand and supply

Last year saw significant growth in the number of students enrolled in online MBA programs at FT’s ranking of online MBA schools. Enrollment in such programs grew by an average of 7% across the 15 schools included in the 2016 ranking. Five more schools were added to the 2017 ranking, indicating that leading institutions are increasingly offering online programs.

Esade, a Spanish school whose full-time MBA program is in the top 20 of the FT rankings, does not have an online MBA program, but uses new technologies in the teaching process at its Barcelona campus. For example, a teacher can record a video of his lecture in advance, so that more time in the classroom can be devoted to discussion and group work.

The school does offer online programs, but they are aimed at senior executives who may find it difficult to take a career break and come to Barcelona for in-person study. Esade also emphasizes the importance of face-to-face interactions while on campus. “The question we’re asking is not whether to offer our courses online or offline, but how to use technology to better educate the students who come here,” says Esade professor Jonathan Wareham.

Translated by Nadezhda Belichenko

Online MBA programs are gaining popularity