In this article an analysis will be presented about why, at the institutional level and in particular at the university level, on-line learning is being introduced. This will be done in the context of a general design approach to steer innovation in education. Costs and financial-benefit issues will be explored, including costing models, measurement of productivity increases, and return-on- investment. Although the article focuses on the university context, it can be predicted that similar issues will soon confront secondary schools.
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