Analyzing the Education and Research Industry Trends and Their Impacts

Objective

After completing this lesson, you will be able to analyze key trends impacting the Education and Research industry that are driving change and transformation.

Global Mega Trends

Technological, economic, environmental, and political forces transform education systems worldwide. At the same time, educational institutions play a critical role for developing the society and shaping our future.

When talking about trends in the education business, we would have to start with geopolitical tensions, ecological crises, global conflicts, human and planetary health, or social inequalities. In addition, the pandemic has tested our resilience, leadership and ability to manage organizations in the midst of uncertainty and constant change. With new ways of learning and virtual work, we must rebuild a system of global governance that allows us to quickly face such challenges.

Note

The OECD’s Centre for Educational Research and Innovation (CERI) recently published the seventh edition of its report "Trends Shaping Education" for 2025. It provides a detailed analysis of the global trends and their impact on education. The report can be downloaded here: Trends Shaping Education 2025 | OECD.

In this course, we use the following simple view outlining six mega trends that impact the higher education and research business:

The graphic shows a circle with six trends. In the center: Improving student experience. In the inner circle: Focus on high velocity research, acting on data richness, attracting and retaining the workforce and becoming financially resilient. In the outer circle: technology as a driver and enabler of the strategy.
  • Improving the student experience is the main trend put into the center. It focuses on creating a student-centric approach as the core pillar of the higher education strategy enabling change and new ways of operating. An improved student experience includes seamless personalized hands-on learning as well as mental health and well-being.

  • Focusing on high-velocity research improves the efficiency of grant-funded projects. It drives ​a greater impact on the university’s reputation supporting an ultimately student enrollment as well as researcher enrollment with an end-to-end process from the pre-award through the post-award. Artificial intelligence and robotic process automation (RPA) are built in as an important component.

  • Acting on data richness aims to remove data silos and effectively utilize rich campus data on student engagement, operations, and research performance. It supports real time decision making and increases student engagement. By giving them access to data that are based on their specific needs, the risk of early drop-outs can be reduced.

  • Attracting and retaining the workforce and talents is a key trend across industries considering the fact that HR is at the forefront of managing and supporting the shift from the so-called "Great Resignation" that has significantly impacted the higher education industry. The original Great Resignation took the world by surprise in 2021, as millions of workers left their jobs in pursuit of better opportunities, work-life balance, and personal fulfillment. For 2025, some researchers predict a Great Resignation 2.0. There is a push for more hybrid work, which will require modern HR systems to attract and retain the best faculty and administrators.

  • Becoming financially resilient requires budget controls and cost containment. Alternative sources of revenue must be explored – such as looking for ways to monetize intellectual property, physical property, and equipment to ensure tuition affordability for all students.

  • All of these trends lead to the final trend: The technology as a driver and enabler of the higher education strategy. Education professionals frame this theme as cyber everywhere. IT leaders are joining the executive cabinet to support the university strategic priorities and help them assess what is possible and what is not. Regarding cost containment, there's an expected demand of cloud and SaaS (software as a service) solutions to reduce the administrative burden and to reduce expenses.

Technology as Driver and Enabler of the Education and Research Strategy

Recognizing technology as a key driver and enabler of the future education and research business leads us to the question what an effective digital transformation of this industry includes.

A comprehensive digital transformation strategy contains a series of profound and coordinated changes in culture, workforce, and technology. Making a process paperless or digitizing it is not comprehensive enough. The following graphic provided by Educause in 2020 gives an overview of a typical digital transformation process in the higher education business evolving over five maturity levels.

The graphic illustrates the digital transformation process from digitization and digitalization to digital transformation as described in the following text.
  • The digital transformation process is usually initiated with the digitization of information, for example, changing from paper forms and physical signatures to digital forms and e-signatures. The organization is on the maturity level 1 or 2.

  • Moving forward to digitalization, processes and workflows are automated and streamlined. The organization reaches level 3 and 4. Digital technologies are used to transform individual institutional operations.

  • Finally, achieving the true digital transformation phase, the complete institution is affected. A series of deep, and coordinated culture, workforce and technology shifts enable new educational and operating models and transform an institution´s operations, strategic directions, and value proposition. This transition fosters a growth mind set from faculty, staff, and administrators. They will be the drivers of the change enabled by intuitive and easy-to-use technology embedded with data analytics and the automation of repetitive tasks through machine learning and artificial intelligence (AI).

In its "Trend Shaping Education" report in 2025, OECD outlines that AI has the potential to revolutionize education itself by providing personalized learning experiences, automating administrative tasks, and supporting teachers in identifying students’ needs.

Immersive technologies like virtual reality (VR) are already commonly used to teach technical skills in areas like medicine and are also being explored for developing softer skills like empathy.

Concerns that come with the implementation of these technologies in education are mainly about data privacy, equity, and the potential for bias. The success of leveraging AI and other frontier technologies for education will depend on how they can enhance learning considering ethical and practical challenges.

Business Requirements and Challenges Concomitant with Trends

The various departments at a university have different business requirements concomitant with industry trends. Play the video to learn which requirements come with the trends.

Challenges Concomitant with Trends

Considering the current technological, economic, environmental, and political forces transforming education systems worldwide, higher education institutions face a few key challenges. The key challenges are:

  • Improve student and learning experiences while minimizing administrative expenses.
  • Identify cost control strategies to sustain quality education while navigating declining public funding.
  • Track and report grant compliance spending.
  • Drive operational excellence to ensure budgets, resources, and efforts go into research and teaching: Many institutions still rely on legacy systems and spreadsheets, which are error-prone and inefficient, slowing operations and increasing workload.
  • Adopt advanced digital tools, AI, and automation to streamline processes and improve decision-making: Campus leaders need more data aiming to improve institutional effectiveness, enrollment, and funding. Transparency is key for building trust and aligning decisions with strategic priorities.
  • Being prepared for mitigating risks related to compliance, cyber security, and funding stability.
  • Attracting and retaining the workforce to deliver an exceptional student experience: Core HR systems must be transformed from a system of record to an agile platform, allowing HR to focus strategically. ​
  • Upskilling the workforce: Without proper upskilling, staff may lack the skills to use digital tools effectively, hindering efficiency and productivity. The increased demand for data in education is also reshaping the workforce, leading to the creation of new roles centered on data governance and analytics.

Regarding academic research, in addition, universities have to solve the following challenges:

  • Creating a workplace culture that attracts and retains top research talents.
  • Efficiently managing grants, budget, and fund allocation to prevent overspending or underspending of sponsor money. Many research organizations face reduced government funding, increasing reliance on competitive grants and external sources. Research institutions also reported a lot of uncovered indirect costs, indicating a significant portion of funds that could have been reimbursed.​ ​
  • Streamlining governance processes to support research while ensuring ethical and regulatory compliance. Research compliance is increasingly cumbersome due to new laws, international security, export controls, and anti-corruption regulations. ​ Increased regulatory burden on researchers makes it cumbersome to focus on innovation due to the need to comply with extensive regulations. Administrative burdens and inefficient management hinder innovation.​ Often disconnected systems hinder a single source of truth, reducing transparency and accountability across departments.​

Lesson Summary

  • Impact of Global Challenges

    Geopolitical tensions, ecological crises, global conflicts, health issues, and social inequalities are major trends affecting education. Besides the accelerated development of new technologies, they are transforming education systems globally, with higher education institutions playing a critical role in societal development.

  • Six Mega Trends

    Key trends include improving student experience, high velocity research, data richness, attracting and retaining talents, financial resilience, and technology as a driver.

  • Digital Transformation

    Effective digital transformation involves coordinated changes in culture, workforce, and technology, enhancing educational models and operations.

  • Business Needs and Challenges

    Needs and challenges that are concomitant with the outlined trends are for example: Improve student experiences without increasing administrative costs, identify effective cost control strategies, mitigate risks related to compliance and cybersecurity, transform HR systems, enable the workforce to adopt digital tools, reduce administrative burdens for researchers and inefficient research management.