The Internet has become an essential part of global business life, but are e-learning MBAs a natural progression from terrestrial programs for the high-flying manager of the future?

Online MBAs are one of the fastest growing segments in business education according to research firm International Data Corp (IDC), which claims that the size of the e-learning industry in the Asia-Pacific region has doubled every year since 1999 to some U.S.$462m in 2004.

The first online university, Universitas 21 Global (U21G), was established in Singapore in 2003, and has 800 students from over 45 countries. Its CEO Dr. Mukesh Aghi says, “Market research in Asia Pacific shows that 100 million students want higher education in 2020, including 20 million in China, but universities are not being built fast enough. An online MBA is our response to this, but the biggest challenge is changing people’s mindsets. Education has always been focused on classrooms, but now you can get the same or better quality teaching online.”

Changing mindsets isn’t easy. Dr. Ian Fenwick, visiting professor at Chulalongkorn University, Bangkok, has strong views on e-learning. He argues, “Online education is a disruptive and ineffective technology. Admittedly it is ‘good enough’ for those who are geographically isolated or frequent travelers, but it is not suitable for the mainstream. The quality of e-learning still leaves much to be desired.”

Such concerns leave many MBA course directors – Imperial’s Tanaka Business School Executive MBA director Ebrahim Mohamed, for example – less than keen to move towards programs that are solely e-learning based. He says, “Learning is a social activity, and the emotional and psychological experience is diminished in an entirely e-learning platform. However, some MBA modules, like the basics of accounting, can be taught online where students work on tasks, do quizzes and have an online tutor.”

Henley Management College advocates “blended learning,” a mix of e-learning and face-to-face experience. Professor Ian Turner, director of MBA programs at Henley, argues, “E-learning won’t work on its own. Total strangers don’t exchange experiences online, but coming together as a group for several days creates bonds and increases learning.” Professor Christophe Bredillet, head of postgraduate studies at ESC Lille, agrees with this. He maintains that human contact is very important “because we focus on people who deal with complex, uncertain situations in a world market.”

There’s no escaping, however, the fact that e-learning offers a level of flexibility that traditional classroom-based courses do not. In this respect, Gloria Atllori, director of MBA programs at ESADE, is a partial convert. She says, “We are now considering online programs as they offer flexibility in terms of time and geography.”

In general, attitudes to e-learning remain varied, particularly in the U.S. where, according to Professor Mark Fenton-0’Creevy, director of programs for the Open University (OU) Business School, online learning is only just beginning to be taken seriously. “It’s still associated with Diplomasville, whereas in the U.K. the Open University is established as a properly regulated university, and its Business School is accredited by AMBA and EQUIS,” he says.Professor Fenton-O’Creevy believes that successful education requires a combination of channels including e-learning. “On the OU MBA, every student has a tutor who gives feedback on assignments and holds tutorials, and on many courses there’s a residential element. Students have online collaboration and discussion, but they also communicate on the phone.”

Online MBAs are growing in popularity and, on the whole, are considered valuable as part of a range of distance-learning approaches. So, how are they rated by the end-user, the employer? For Derek Harnby, recruitment manager at Cummins, the benefits are clear. “The big advantage is mobility,” he says. “One of our managers completed the OU MBA after we moved him to China, which is something he couldn’t have done with a conventional MBA.”