The document discusses the challenges facing higher education institutions in delivering teaching and learning. It notes that students now want more direct interaction with lecturers in smaller groups. However, vice chancellors say overhauling the system is not possible. The document calls for a radical rethink of how teaching is delivered, as students now expect a more open, digital and networked learning experience similar to how they engage socially online. It also discusses how the government wants to incentivize universities to establish new programs in priority areas and re-focus existing ones. Finally, the document outlines the agenda for a conference on responding to the challenges facing virtual learning environments.