The Role of Modern Education in Improving Business Performance

Introduction

Since early 1990s, theorists have been talking about the role of information technology in reshaping our education system and how advances in technology are creating an environment for a learning revolution based on technology, also called the modern education system. The modern education system refers to the use of Internet technologies to deliver a broad array of solutions that enhance knowledge and performance. It is based on three fundamental criteria: the modern education system is networked, which makes it capable of instant updating, storage, retrieval, distribution and sharing of instruction or information; it is delivered to the end-user via a computer using standard Internet technology; it focuses on the broadest view of learning solutions that go beyond the traditional paradigms of education (Jeffrey, 2001). This system of education and training is becoming an integral part of our business practices and policies--let alone education and training--designed to prepare and support a highly skilled workforce. This integration of the modern education system into business management practices, especially in educating and training the workforce, is improving business performance in terms of reducing cost of human resource development activities, saving labor hours, improving customer satisfaction, and guaranteeing faster time-to-market for products and services. Proponents of the modern education system are of the view that this change is having positive impacts on society, government, education and especially, on business communities (Knight, 1994). The modern education system is making available degrees and courses to learners, offering what they want, when they want it, where they want it and in the language they prefer (Knight 1994). Nevertheless, companies who invest on this emerging education system in order to educate and train their people should know the answer to the question “Is there a positive relationship between the modern education system and business performance? So after reading this chapter, readers hopefully will find out answers to the above question and therefore, this chapter should provide helpful and interesting information to the companies involved in the modern education system and other stakeholders as well, including business schools, business students, business educators, and other interested academic and education software institutions. In particular, this chapter discusses these issues: Historical perspectives of the modern education system; definition and forms of the modern education system; the benefits of the modern education system; measuring the benefits of modern education for business; business performance and measuring the business performance; and, the relationship between business performance and the modern education system.