Internet technology evolution enables the collaboration of Higher Education and Internet technology by increasing the knowledge coverage volume and the speed of information transmission. Higher Education, as a social phenomenon, interacts and communicates with the society in many ways and is regard as a vital force in today's society. E-Learning, as an advanced teaching and learning method of Higher Education, is gathering more and more attention. The evaluation of E-Learning, especially its contribution to Higher Education, thus, is of great importance. This report tries to evaluate the contribution of E-Learning to the Higher Education system, based on a novel and constructive model of Higher Education system by connecting motive, process and performance together in terms of Competence Development. After the Evaluation, analyses have been carried out with each stage of the model, hidden problems are invested, and constructive recommendations are given at the end of the report. Firstly, the importance of competence-development-oriented Higher Education system is addressed and the irresistible trend of E-Learning is introduced; based on the theories of Higher Education motivation, the rules of human development, and the generic models referring to the competence development, a refined model of Higher Education system is established for further research. Secondly, questionnaire survey is distributed in order to obtain correlation and regression among factors being considered, the weight of each factor is calculated as well; stages in the model are illustrated separately by doing specified case studies (investigation, observation, content analysis) in terms of the basic E-Learning activities in the Polytechnic University of Hong Kong (HK PolyU). Thirdly, by analyzing the findings and results, we find that E-Learning, which allows individualized, adaptive and collaborative learning, also reflects some myths and problems. Constructive recommendations have also given afterwards