Final answer:
The university is addressing the IT management challenge of developing new products and services by customizing hybrid online courses to meet diverse student needs.
Step-by-step explanation:
The IT management challenge addressed in the scenario where a university is looking to customize its courses to the unique needs of its students by creating various levels of hybrid online courses is Develop new products and services. The university is striving to design diverse learning options that cater to different student preferences and schedules, by providing varying ratios of online to in-person instruction. This requires the development of a flexible and responsive educational product, which can be seen as a new service offered by the institution. The need to seamlessly integrate technology into the educational process challenges the institution to rethink how courses are delivered, emphasizing the importance of innovation in educational services to meet the evolving needs of students.