The Increasingly Competitive Online MBA Alternative
For busy career professionals who can’t afford to take time off of work or who travel or live away from a world-class university, an Online MBA program is a viable option. The latest programs offer incredible flexibility, rigorous curriculum, and a very comparable experience to an in-person MBA.
So, it should be no surprise that the online MBA is growing in popularity exponentially.
To better understand the landscape of the online MBA and to follow up on our first piece, The Online MBA: Which Programs Matter?, we reached back out to USC Marshall, UNC Kenan-Flagler, Michigan Ross, Indiana Kelley, and CMU Tepper. They allowed us to pick their collective brains even further to unravel the mystery around the online MBA.
The Evolution of the Online MBA
Just a few years ago, it seems, earning an MBA online was not considered a valid option. After all, what employer would take an online MBA seriously? It was only for those students who wanted an “easy” degree and didn’t want to go through the effort of a “real” full-time MBA program.
In 2011 when UNC Kenan-Flagler launched their online MBA program with 19 students, The Wall Street Journal wrote, “UNC Makes Risky Online Bet.” But times have changed, and so has the landscape of the MBA. While the full-time MBA isn’t going anywhere anytime soon, it does have some solid competition.
“Today that so-called ‘risky bet’ has yielded almost 2,000 graduates who are thriving in their careers and deeply connected to the UNC Kenan-Flagler community,” explains Kenan-Flagler Dean Douglas A. Shackelford.
An online MBA is not only a respectable choice, but a sought after choice. It’s all due to a better understanding of what an online MBA is and the perceptions of the quality and power of an online MBA.
“Online MBAs have certainly become a more viable option for students as the technology evolves and students see that they can get the same quality education remotely as they can on-campus,” explains Cindy McCauley, Executive Director of Online Masters Programs at CMU Tepper. “You no longer have to trade off learning from top faculty, or building a strong network, when you choose an online MBA program.” You get it all.
Benefits of an Online MBA
The surging economy has had a major impact on the growth of the online MBA. More so than ever before, professionals are reluctant to step out of work to complete a full-time MBA program.
There’s a segment of the business community—particularly mid-career and late-career professionals—who don’t want to put their career on hold for school, but they still want the benefits. These individuals need a convenient alternative that allows them to earn their MBA while still working. That’s where the online MBA comes into play.
Accessibility and Flexibility Are Hallmarks of the Online MBA
According to Patti Russo, the Managing Director of Part-Time MBA programs at Michigan Ross, online MBA programs offer two distinct features:
- Access
- Flexibility
“In terms of access, online programs extend a school’s reach to students who want to pursue a top-tier MBA program, but are not located geographically close to a school,” explains Russo. “The online program also makes earning an MBA really flexible by giving working professionals the opportunity to stay at their jobs while obtaining a world-class business education.”
Online MBA students can work around their schedule, taking time away if needed to pursue career advancement.
According to Ramesh Venkataraman, Chair of the IU Kelley Direct Online MBA & MS Programs, this flexibility especially comes in handy for professionals who have recently received a promotion or accepted a new position. Representing around two-thirds of the IU Kelley MBA class, these students cannot afford to spend time on campus, considering they don’t know where they’ll be at any given time.
“We also enroll a large population of active duty members of the military and working professionals who travel often for work, and who need the ability to complete coursework while living or working abroad,” says Venkataraman.
For example, one UNC Kenan-Flagler student attended class from five continents thanks to his busy work schedule, but he never had to stop his education. An online MBA program means that you can attend class from wherever you are as long as you have a computer and Internet access.
“The online MBA is available to anyone, regardless of where they live,” explains CMU Tepper’s McCauley. “And it offers the same rigorous, analytics-based curriculum as the full-time program.”
Business is Global
The third crucial feature of online MBA programs is their ability to prepare students for the digital business world. As Russo says, “The business world is becoming increasingly more digital with individuals working virtually with others spread across the globe, and online curriculum will prepare students to succeed in this new environment.”
This thought is echoed by USC Marshall’s Vice Dean for Online Learning Programs, Sandra Chrystal. She explains that it was USC Marshall’s recognition of how global corporations rely on virtual teams and training to conduct business that sparked the creation of their online MBA.
“USC Marshall prides itself on innovation and continuous improvement,” says Vice Dean Chrystal. “We created a 21st-century multi-disciplinary integrated curriculum designed for a virtual platform, which mirrors business practices. Management communication and business analytics are components of all of the courses, and virtual team building begins immediately.”
More High Profile Players than Ever Before
The online MBA is also more competitive than ever before, which means the product offerings are better, according to IU Kelley’s Venkataraman.
“The increase in high-profile, credible organizations releasing rankings for online MBA programs have brought more attention and credibility to the online MBA space and, therefore, more interest in it by prospective students,” says Venkataraman.
A decade ago, few high profile top business schools offered an online MBA. Now, these same schools that were once reluctant to enter the online space are offering rigorous MBA programs, flooding the marketplace with exceptional curriculum, faculty, and opportunities.
And that change is being reflected in the rankings. Now, U.S. News & World Report, Princeton Review, and The Financial Times all release online MBA rankings. Students no longer have to choose between a well-ranked MBA and an online program—they can have both.
The students are also more high profile. An online MBA provides students with access to classmates who live and work around the globe and in a range of industries. This means that students can connect with a wider variety of individuals, building an expansive network.
It’s important to note that the class profile of an Online MBA program is more similar to an Executive MBA or part-time MBA program compared to a full-time program.
“Comparing the class profile of the online and on-campus programs is like comparing apples and oranges,” Kenan-Flagler Dean Shackleford says. “GMAT and GPA scores have little relevancy for evaluating them. They’ve been out of school for a long time and have significant work experience; what matters now is what they have achieved in those years—their career growth.”
Students Are Comfortable Online
Last, but certainly not least, is the change in how students perceive the online MBA. Applicants nowadays are used to technology and the increasingly digital world, so they’re not afraid of using technology for their education. In fact, they expect it.
“Students today are comfortable with online learning,” says UNC Dean Shackelford. “Even if they’re not digital natives, working professionals are accustomed to collaborating with remote workers and teams as part of their jobs.”
As for those students who aren’t as comfortable in an online environment and digital learning, an online MBA is a perfect opportunity to change that.
“Students will learn teamwork and leadership skills in a virtual environment,” said Michigan Ross’ Russo. “They will have to work remotely with their classmates on the course material and group projects, including our signature action-based learning experience MAP, which pairs student teams with global companies and organizations to tackle those entities’ greatest challenges.”
The Future of the Online MBA
So, where is the online MBA headed? What can applicants expect in the future? We asked USC Marshall, UNC Kenan-Flagler, Michigan Ross, Indiana Kelley, and CMU Tepper: “What is the long-term vision for your Online MBA?”
Here’s what they had to say:
Sandra Chrystal
USC Marshall School of Business Online MBA
“Although our Online MBA will continue to increase its diverse demographics, cohorts will not exceed fifty students. The number of cohorts may increase, however, and growth will be prudent. Since Marshall faculty teach all of these classes and Marshall instructional designers and production media teams create the asynchronous materials, the online MBA will consistently seek quality learning over larger enrollments.”
–Sandra Chrystal, Vice Dean for Online Learning
UNC Kenan-Flagler Business School MBA@UNC
“From the very start, our vision has been that the MBA@UNC is the same MBA program offered in a different format. We built the online MBA with the concept of no compromise: offering our MBA in a new format with the same quality (students, faculty, curriculum) and experience (deep engagement among our students and their professors to build lifelong relationships and networks) as our on-campus programs.
Now we are advancing that vision. First, we integrated all of our MBA programs’ operations, and now we are changing our processes so students can take courses in any MBA format we offer. We are blurring the lines of program format to meet the needs of students.
Our model is blended. You watch lectures recorded in high-quality format and meet for discussion in live classes on our platform where you see and interact with a small group of classmates and your professor. You also study together in person at our Global Summits—two in the U.S. and two in other countries every year. These small class sessions, group projects, and in-person summits are among the ways we ensure the UNC Kenan-Flagler culture is integral to our students’ experiences.”
—Douglas Shackelford, Dean, UNC Kenan-Flagler
Michigan Ross School of Business Online MBA
Patti Russo
“Our first Online MBA class is shaping up to be a group of highly diverse, very talented, and accomplished professionals. We are confident that future cohorts will be as well. In addition, the majority of students who attend Michigan Ross credit the program for widening not only their career prospects, but also expanding their worldview.
Our online students will join the Michigan Ross community, connecting them to a powerful global alumni network and tuition-free Ross executive education open enrollment courses for life.”
—Patti Russo, Managing Director, Part-Time MBA Programs
IU Kelley School of Business Online MBA
“The long-term vision for the Kelley Direct Online MBA is to continue offering a high quality, engaging, and rewarding student experience to students across the globe who are looking to progress in their careers and make a positive impact on their organizations and communities. We are pleased with the quality of candidates who have chosen Kelley Direct and will continue to seek out current and future leaders from a variety of industries to add to our powerful network of Kelley alumni.”
—Ramesh Venkataraman, Chair, Kelley Direct MBA & MS Programs
Cindy McCauley
CMU Tepper School of Business Online MBA
“We want our Online MBA program to provide the best educational experience and career outcomes for our students. We maintain a small class size to ensure that all classes are taught by our own faculty who teach in the full-time program and are not willing to trade quality for scale.
In our program, every class starts with in-person classes, so students can meet their faculty and connect with colleagues. Following these classes, students meet online in a format that allows faculty to see everyone in the class, and for students to interact as if they are in a classroom.”
—Cindy McCauley, Executive Director, Online Masters Programs
#1 Ranked IU Kelley Online MBA Undergoes Major Curriculum Update
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Already ranked #1 by the U.S. News & World Report, the IU Kelley Direct Online MBA has revamped its program for a more customizable experience. Now, their online program is even more robust while still offering the same flexibility and strengths that have made Kelley Direct a long-time business leader.
As always, the same faculty that teach in the IU Kelley on-campus programs also teach in the Kelley Online program. The Kelley Direct Online program also still includes live case studies within every in-residence week, offers global and domestic immersions, and focuses on quality student experiences.
The purpose of the revamp wasn’t to take away any of the elements that made the online MBA so great in the first place. Instead, the goal was to enhance the curriculum and offer more customization to make the program even stronger.
The Kelley Direct Online MBA now offers students 50 percent electives, seven majors, and a signature integrated core experience focused on business fundamentals.
It’s the next evolution of the online MBA, which goes far beyond what people typically think of for online MBAs.
“The primary motivation for the redesigned online MBA was not to focus on a new market segment, but to update our product and create a significant differentiator from other competitors in the marketplace,” explains Ramesh Venkataraman, chair of the Kelley Direct Online MBA and MS programs.
More Electives for a More Customized Student Experience
A quick glance at the current marketplace tells you that a candidate with specialized knowledge is more valuable than a general management MBA candidate. So, it made sense for the Kelley Online MBA program to update its curriculum to match what employers want, and they did this by drastically increasing the number of electives offered.
“In general, online MBA programs tend to be more core-heavy with less potential for electives,” Ramesh says. “But why should our online MBA not have as many electives as any other product? Specialized knowledge is what the marketplace wants, and our new electives allow students to gain that knowledge and use it as a launching pad in their careers.”
The newly revamped online MBA, which launches this fall, requires students to complete 27 credit hours of core coursework and 27 credit hours of electives—a 50/50 split. It’s a significant change from the previous format, which allowed for just 12 elective credits. The increase—with at least ten different electives in each of seven disciplines—results in a far more customizable student experience that’s aligned with both student and employer expectations.
But don’t worry; to get here, the online MBA didn’t take away from the core knowledge students need. Instead, the new curriculum is far more streamlined. The core material has been compressed into two credit hour classes instead of three, but with the same subject matters and essence.
“They’re not going to lose content,” states Ramesh. “They’re just going to enjoy their core content in a new format.”
The newly revamped online MBA format breaks down the core curriculum into three blocks: understanding markets and institutions; delivering value through functional excellence; and creating and sustaining competitive advantage. Each block includes a trio of 12-week courses with eight live sessions each that leverage technology to get the content out synchronously and asynchronously.
- Core 1: Business law and ethics, economics, and organizational behavior.
- Core 2: Operations management, marketing management, and financial management.
- Core 3: Digital tech and innovation, developing strategic capabilities, and an integrative live case experience.
Though, you should note, the update does mean that there’s a little more overall work. Online students now have to complete a total of 54 credits compared to 51.
However, the hope is that this increased workload will result in MBA students from a wider variety of backgrounds choosing the program thanks to the depth and breadth of their new course offerings, which includes seven new majors.
- Business Analytics
- Entrepreneurship & Innovation
- Finance
- Global Supply Chain Management
- IT Management
- Marketing
- Strategic Management
These majors allow students to choose the curriculum that best reflects their interests and career goals. Now, it’s possible to go deep into a specific business area or industry in a way that wasn’t possible before, providing students with a way to optimize their resume and find the best opportunities for moving forward.
Learning Doesn’t Stop Inside the Classroom. It’s an Immersive Experience with Many Co-Curricular Opportunities.
But learning doesn’t stop in the classroom when you choose the Kelley Online MBA. It’s an immersive experience that helps you build skills and confidence far beyond the curriculum through co-curricular opportunities.
“We know that online MBA students want to build a set of experiences that complement what they do in their online courses, but there’s a lot of variability in terms of what students want to build,” says Adam Herman, executive director of the Kelley Direct MBA and MS programs. “So, we offer a wide range of co-curricular opportunities that students can use to strengthen their professional profile.”
There are four main types of co-curricular activities:
- Experiential learning, including global and domestic immersion experiences as part of credit-bearing courses.
- A robust slate of affinity groups/clubs, both identity-oriented and career field-specific.
- Twice-annual Global Connect Networking Night in 25-30 cities across the globe.
- A suite of high-impact offerings from the career and professional development center.
In particular, experiential learning is a hallmark of the Kelley Direct Online MBA program. From a variety of in-person courses that focus on a particular business area to global and domestic immersion experiences, experiential learning is a highlight of many students’ education.
“Experiential learning is super important to the Kelley Online MBA program,” says Joe Hwalek, a ’19 MBA and associate brand manager for Hyatt Place Hotels, Hyatt Corp. “The greatest experience has been working in smaller teams. You spend an incredible number of hours working and learning from them, and each time, I’ve been awed at the level of professionalism and the solutions that we’ve put together.”
These immersive, educational experiences enrich the online MBA and create life-changing moments where students can make connections and learn by doing.
For example, there’s an annual trip to Washington D.C. that focuses on public policy. Students spend a week at the Washington Campus exploring, site seeing, and learning from the best and brightest individuals in politics.
“The program is fantastic,” describes Elisa Stampf, a ’19 MBA and senior small commercial sales representative at The Hartford. “The first day we were on campus we listened to speakers from all walks of life, backgrounds, and political parties. The next day, we toured Capitol Hill, spent time at the National Press Club, and more. Everything was incredibly relevant, and was an investment that was worth every penny.”
Also worth every penny are the global experiences where students will see the world and gain international economic knowledge and skills to move their careers forward.
MBA Students Are Going to Work in a Global Environment, and Being Online Doesn’t Change that Fact.
“Just because you’re an online MBA student doesn’t change the fact you’re an MBA student in need of international experience,” says Ramesh. “So, the more our students understand what it takes to do business outside the U.S. and in different cultures, the better. Our global experiences are crucial to providing that exposure.”
These Global Immersions typically include 5-6 weeks of online content to give students a deep understanding of business in a rapidly emerging market such as Thailand, India, South Africa, or Cuba. Then students head to their country of study to visit key companies and work on a real-world project. After returning to their homes, students work on—and submit—valuable deliverables designed to meet their clients’ needs.
“Our group was paired with a client and tasked to solve some of their business problems,” remembers Elisa. “We faced some challenges along the way, but we were able to consult with a local MBA student who knew the language and culture and who helped strengthen our experience.”
Even if students choose not to head out on a week-long international trip to a foreign country, they still have the opportunity to gain exposure to global business during their second Kelley Connect Week. During that time, they take on a business case study in a foreign country, which forces them to solve an international business problem, giving every student a global perspective.
IU Kelley MBA students in Vietnam.
Kelley Connect Weeks Are When Students Fall in Love with the Program
Speaking of Kelley Connect Weeks, when you ask students about their most memorable times in the Kelley Online MBA, they’ll always mention these two weeks. As Elisa says, “Kelley Connect Week was when I fell in love with the program and what I was doing.”
In most online programs you rarely meet your fellow students in person. However, that’s exactly the point of Kelley Connect Weeks. You attend these twice during the program for a full week, not a short weekend, allowing you to be completely immersed in the program, city, and school.
“Kelley Connect Weeks immerse you in something bigger,” explains Elisa.
Kelley Connect Weeks are a chance to feel connected to your classmates, professors, and the program on a much deeper level. Students head to Indiana University’s Bloomington campus for a week when they’ll meet faculty and classmates, work on team projects, undergo intensive coursework, and attend networking events. The highlight of the week is the live business case where students work in a team to solve a real client/company problem before presenting their solution to the real company, face-to-face.
“The Kelley Connect Weeks are super rewarding,” says Joe. “I’ve created friendships that I’ll have for the rest of my life. And from a career perspective, my classmates have been a valuable source of advice and networking, ultimately helping me make a career change.”
Top-Ranked Career Services Take Online MBAs to the Next Level
And making a career change is why many online MBA students choose an MBA. They’re looking for a change in their function, industry, location, or promotion—a way to enhance their potential. And that’s why the Kelley’s Graduate Career Services are so valuable.
“We have a five-phase career development model for our online MBA students,” explains Adam Herman. “It begins before the first Kelley Connect Week when students are sent pre-work focused on their career goals. From there, students are assigned a dedicated career coach who works alongside the student and guides them throughout the rest of their MBA program.”
These career coaches regularly check in with their students one-on-one to provide insight, offer feedback, and help with overall career navigation. Combined with online materials, weekly communication, and the ability to take classes delivered by the career services office, students have endless opportunities to impact their career in both small and large ways.
With a 115,000-strong alumni network, there are thousands of ways to make meaningful career connections.
For Joe Hwalek, that meant changing his career twice throughout the course of the program. He started out working at an advertising agency, but what he really wanted was to make the switch to working for a corporation. And that’s exactly what he did.
“I’m very fortunate that throughout my online MBA, I was able to move to another ad agency and then to a strategic role with Hyatt,” Joe explains. “The MBA gave me the knowledge that I needed to showcase myself well and demonstrate my commitment to my career field.”
In the End, It’s All About the Students.
And, in the end, the Kelley Online MBA, revamped or not, has always been about what students can get out of it.
“Our lives are so incredibly unique and diverse, and we get to share those experiences live,” says Elisa. “I now have people across the country and world that I know thanks to this program. And we’ve all been able to help each other in our professional lives. The technology IU Kelley uses does a stellar job of bringing people together.”
“The reason I chose the Kelley Online MBA is the flexibility it gave me, no matter my life stage,” Joe says. “I was able to move homes, change jobs twice, and maintain my lifestyle all while continuing my education. Life is busy, and you never know what will happen, so the flexibility to adjust my schedule weekly was invaluable.”
Choose an MBA where your success is paramount. Learn more and apply at the Kelley Direct Online MBA website.
