“Monetization is an ugly word”

At EdgeGeneration, Umair says that “monetization is an ugly word”:

Let’s put that a little more formally. Monetization is ugly because it blinds us to the truth that value must flow in many directions. That’s the essence of edge strategy, in fact.

That’s why businesses that aren’t deeply, durably connected to people are already falling apart (hi, Facebook, Gap, and Microsoft).

Just ask yourself: how many firms industries has “monetization” already killed?

I’ve used the “M” word, as at some point in time I have to make money to pay the bills. However, money is usually secondary to doing the right thing or getting involved with the right client or project. Right in terms of being aligned with my principals or ethics. I have turned down work for ethical but not monetary reasons.

Having just shipped a proposal for an online learning strategy gig, I’ve been thinking deeply about workable models in higher education. Umair’s point is quite relevant for academia. Universities did not start as money-making ventures, they were a “self-regulating community of teachers and scholars“. So will monetization kill universities?

The next few years will be indicative, especially in North America; with a recession, a demographic crunch, increasing tuition and a growing disconnect between societal needs and degree programs. The value will have to flow before more cash flows.

Universities will have to do more than just say that they are about promoting learning, but they will have to show it in everything they do. That could mean courses built around student schedules instead of faculty availability. It could mean higher salaries for teaching staff than administration. It will have to mean reinforcing the areas of real value to the learner, because it’s all about learning. One challenge will be to ensure that the VP Finance or CFO understands this. By the way, when did universities move the money counter to the executive level?