Information technology and the end of the traditional university business model

But newspapers have shown that giving something away means eventually that consumers expect all of it to be free. MOOCs may undermine the university business model rather than save it.

I suggest there is a risk that most universities will largely disappear. The world will eventually have only a handful of prestige boutique universities, such as Oxford, which will trade on their brand.

In short, the long-term future of Australian universities cannot be assured.

But there are a few steps to secure the immediate future. Information technology cannot provide the face to face experience for students, such as the exchange of ideas via discussion, networking, developing social skills, being exposed to other cultures, and learning to be accommodated with other people in a safe environment.

University courses provide the "hard" skill (a degree in economics, say). But the direct personal experience of being on a campus provides the "soft" skills. Hard skills may get a person a job; soft skills will help the person rise up through an organization.

Therefore students – domestic and international - will still want quality teaching and a good experience. Indeed, educational providers can achieve a marketing edge by enhancing the student experience

On international education, this is an Australian export success story. It is the country's third largest export industry.

But it is appalling that three decades after the "export of education" became an Australian Government priority we are still wrestling with matters that were identified as problems at the outset (such as the basic issue of ensuring that each jurisdiction treats international students in an equal way to domestic students with respect to things like hospital charges and transport concessions).

Therefore, if we wish to do well in the export of education, we need to address these issues. Otherwise we will stand even less chance of dealing with digital disruption.