Higher education is in the middle of a digital change. Universities and colleges around the world are shifting from traditional to agile methodologies. This shift isn’t about flashy new tech for the sake of it; it’s about using digital transformation to solve problems, improve student experiences and run smarter institutions.
Key Takeaways:
- Universities are using digital transformation to deliver flexible, personalized student experiences.
- AI, cloud, and automation help colleges cut costs, boost efficiency, and stay competitive.
- Real-world results include higher student success, better data insights, and modernized learning.
- Key challenges are legacy systems, funding limits, and the need for strong data security.
- Not every aspect of education benefits from digitization; human connection and hands-on learning remain essential for student success.
Why universities are investing in digital transformation
Today’s students expect seamless, personalized experiences. They want flexible learning models, intuitive platforms, and services that meet them where they are physically and digitally, according to the McKinsey Report on Higher Ed. To meet these demands, universities are turning to digital tools like adaptive learning platforms, AI-powered tutoring, VR classrooms, and more.
But the pressure isn’t just coming from students. With increasing competition from global online providers and nontraditional education pathways, colleges must stay relevant and competitive. That means becoming more data-driven, more efficient, and more innovative.
Rising operational costs, funding shortfalls, and cybersecurity threats are also motivating factors. Cloud computing, eLearning platforms, and predictive analytics offer cost savings and operational agility, while strengthening security and compliance.
Benefits of digital transformation in higher education
Digital transformation isn’t just industry jargon; it delivers value:
- Improved user experiences: Digital platforms create more interactive, engaging learning environments, boosting retention and satisfaction for students.
- Cost savings: Automation, cloud migration, and reduced reliance on physical resources drive down operational costs.
- Operational efficiency: Streamlined admissions, real-time analytics, and better faculty collaboration are just a few benefits of going digital.
- Academic innovation: AI and big data are opening new doors for research, teaching, and strategic partnerships.
Explore more on how PagerDuty supports educational institutions.
Examples of digital transformation in higher education
1. Arizona State University (ASU)
Problem: Large-scale introductory courses had low pass rates and limited personalization. Faculty lacked tools to support active learning in high-enrollment contexts.
Solution: ASU implemented adaptive courseware (e.g., ALEKS, CogBooks) through its EdPlus initiative. The platform integrated real-time analytics and faculty training in active‑learning pedagogy to personalize student learning pathways.
Benefit: Courses such as College Algebra saw a 17 percentage‑point increase in student success rates since 2015, representing meaningful gains in retention and engagement.
Also notable: ASU’s EdPlus is driving innovation in UX design, AI tools, and digital delivery models to improve student experience across its massive online and hybrid programs.
2. Boston University (BU)
Problem: The legacy student information system and portal (Student Link) were outdated, not user‑friendly, and provided a fragmented student experience.
Solution: BU partnered with Attain Partners to build a modern Salesforce-based student portal (MyBU). It centered on design-thinking, intuitive UX, self-service access, and phased integration with a new SIS.
Benefit: Improved usability, reduced complexity, increased adoption by students and staff, and better alignment of front and back-end systems. The design-first approach boosted ROI significantly.
Boston University also runs a robust Digital Learning & Innovation (DLI) initiative, including AI integrations, XR classrooms, and experiential learning projects to modernize curricula and boost student engagement.
3. University of Wisconsin–Madison (UW–Madison)
Problem: A dated learning platform and fragmented SIS/Data Warehouse hindered data-driven decision-making and student support.
Solution: UW–Madison’s IT and Academic Technology teams developed the Learning Analytics Center of Excellence (LACE) and migrated its InfoAccess institutional data warehouse to the cloud (Badger Analytics), enabling unified analytics across student lifecycle, curriculum, and institutional metrics.
Benefit: Scalability, real-time insight for faculty and leadership, predictive analytics for enrollment and student success, and more integrated digital services for learning and administration.
Challenges and limitations in higher education
Despite the upsides, digital transformation isn’t plug-and-play in academia:
- Legacy infrastructure: Outdated IT systems can’t always integrate easily with modern tools.
- Funding constraints: Tight budgets force institutions to prioritize and plan carefully.
- Cultural resistance: Not everyone is eager to change, especially when it comes to teaching methods.
- Security and privacy: Higher ed handles sensitive student and faculty data; any digital strategy must include robust cybersecurity measures. Learn more about PagerDuty’s FedRAMP compliance.
What shouldn’t be digitally transformed (and why)
Not everything in education is meant to be digital. Some experiences are simply better in person:
- Mentorship and academic coaching thrive on real human connection.
- Physical labs and presentations require tactile, real-time interaction.
- Sensitive counseling or complex planning is more effective with human empathy and discretion.
- Low-tech regions may not support advanced digital tools, creating equity concerns.
Digital transformation is powerful, but not one-size-fits-all. Knowing what to digitize—and what to keep human—is key to building future-ready institutions.
Want to learn more about how digital transformation is reshaping education? Visit our AI Hub to explore the technologies making an impact today.