12. Cost

12.3. Cost Drivers

The primary factors that drive cost are:

  • The development/production of materials
  • The delivery of materials
  • Number of students/scalability
  • The experience of an instructor working with the medium
  • Whether the instructor develops materials alone (self-development) or works with professionals

Production of technology-based materials such as a video program, or a Web site, is a fixed cost, in that it is not influenced by how many students take the course. However, production costs can vary depending on the design of the course. Engle (2014) showed that depending on the method of video production, the development costs for a MOOC could vary by a factor of six (the most expensive production method – full studio production – being six times that of an instructor self-recording on a laptop).

Nevertheless, once produced, the cost is independent of the number of students. Thus the more expensive the course to develop, the greater the need to increase student numbers to reduce the average cost per student. (Or put another way, the greater the number of students, the more reason to ensure that high-quality production is used, whatever the medium). In the case of MOOCs (which tend to be almost twice as expensive to develop as an online course for credit using a learning management system – University of Ottawa, 2013) the number of learners is so great that the average cost per student is very small. Thus there are opportunities for economies of scale from the development of digital material, provided that student course enrolments can be increased (which may not always be the case). This can be described as the potential for the scalability of a medium.

Similarly, there are costs in teaching the course once the course is developed. These tend to be variable costs, in that they increase as class size increases. If student-teacher interaction, through online discussion forums and assignment marking, is to be kept to a manageable level, then the teacher-student ratio needs to be kept relatively low (for instance, between 1:25 to 1:40, depending on the subject area and the level of the course). The more students, the more time a teacher will need to spend on delivery, or additional contract instructors will need to be hired. Either way, increased student numbers generally will lead to increased costs. MOOCs are an exception. Their main value proposition is that they do not provide direct learner support, so they have zero delivery costs. However, this is probably the reason why such a small proportion of participants successfully complete MOOCs.

There may be benefits than for a teacher or for an institution in spending more money upfront for interactive learning materials if this leads to less demand for teacher-student interaction. For instance, a mathematics course might be able to use automated testing and feedback and simulations and diagrams, and pre-designed answers to frequently asked questions, with less or even no time spent on individual assignment marking or communication with the teacher. In this case, it may be possible to manage teacher-student ratios as high as 1:200 or more, without significant loss of quality.

Also, experience in using or working with a particular medium or delivery method is also important. The first time an instructor uses a particular medium such as podcasting, it takes much longer than subsequent productions or offerings. Some media or technologies though need much more effort to learn to use than others. Thus a related cost driver is whether the instructor works alone (self-development) or works with media professionals. Self-developing materials will usually take longer for an instructor than working with professionals.

There are advantages in teachers and instructors working with media professionals when developing digital media. Media professionals will ensure the development of a quality product, and above all can save teachers or instructors considerable time, for instance through the choice of appropriate software, editing, and storage and streaming of digital materials. Instructional designers can help in suggesting appropriate applications of different media for different learning outcomes. Thus as with all educational design, a team approach is likely to be more effective, and working with other professionals will help control the time teachers and instructors spend on media development.

Lastly, design decisions are critical. Costs are driven by design decisions within a medium. For instance, cost drivers are different between lectures and seminars (or lab classes) in face-to-face teaching. Similarly, video can be used just to record talking heads, as in lecture capture, or can be used to exploit the affordances of the medium, such as demonstrating processes or location shooting. Computing has a wide and increasing range of possible designs, including online collaborative learning (OCL), computer-based learning, animations, simulations, or virtual worlds.

Figure 29 attempts to capture the complexity of cost factors, focusing mainly on the perspective of a teacher or instructor making decisions. Again, this should be seen as a heuristic device, a way of thinking about the issue. Other factors could be added (such as social media, or maintenance of materials). I have given my own personal ratings for each cell, based on my experience. I have taken conventional teaching as a medium or ‘average’ cost, then ranked cells as to whether there is a higher or lower cost factor for the particular medium. Other readers may well rate the cells differently.

Cost drivers for educational media

Although the time it takes to develop and deliver learning using different technologies is likely to influence an instructor’s decision about what technology to use, it is not a simple equation. For instance, developing a good quality online course using a mix of video and text materials may take much more of the instructor’s time to prepare than if the course was offered through classroom teaching. However, the online course may take less time in delivery over several years, because students may be spending more time on task online, and less time in direct interaction with the instructor. Once again, we see that design is a critical factor in how costs are assessed.

In short, from an instructor perspective, time is the critical cost factor. Technologies that take a lot of time to use are less likely to be used than those that are easy to use and thus save time. But once again design decisions can greatly affect how much time teachers or instructors need to spend on any medium, and the ability of teachers and students to create their own educational media is becoming an increasingly important factor.