The ‘model’ for higher education not only has to change, but will change, it’s inevitable. And, online learning won’t be the catalyst, but competency based learning will be - how learning is assessed and degrees are granted will be the impetus for change. When speaking of ‘model’ in this context, it’s similar to a business model, where the education model is the framework for how higher-ed operates – which is, 1) how institution leaders organize people [faculty, administrators] 2) curriculum is developed and packaged 3) a place is provided [facilities, classrooms, libraries, lecture halls] to deliver education 4) and degrees are granted [based upon credit hours, (or seat-time) and assessment], all of which keeps the institution viable.
http://onlinelearninginsights.wordpress.com/2012/06/12/the-next-big-disruptor-competency-based-learning/