Lifelong learning poses a large number ofthreats and opportunities for the traditionalhigher education institutions. Not justprogramme offerings and means of delivery willhave to be restructured, but, morefundamentally, universities and colleges willhave to rethink and reshape their businessconcept, that is: their way of creating valueand maintaining their competitive edge overother providers in the education system.

It will be argued that a business concept thatis based on the idea of creating value throughenhancing differentiation requires highereducation providers to move as much as they canto a student-centered provision of educationand training. This has far-reachingconsequences for the curriculum, the concept ofresearch, the interaction with students, andthe relationships with other institutions inthe education system. It may very well lead toan education system in which there is room forsome universities to transform themselves intodual-sector institutions, that contain both ahigher education part and a vocational part.