As the deputy vice-chancellor of external engagement she will head a new division of the university that regroups marketing, international, and development and alumni relations offices.
''Those three areas overlap quite a bit,'' she said.
''And you can't make change or work as effectively as if you're all together in a single happy family.''
Before beginning her new role this week, Prof Nicholson had been the international pro-vice-chancellor since February last year.
The creation of the external engagement division fell in line with the university's ''strategic direction to 2020'' by building the university's international profile.
''One of the goals is to increase international student numbers, and we're hoping that by drawing more widely across the university, we can develop that more effectively,'' she said.
''Our domestic numbers have dropped, so we obviously want to attract international students, but only good international students.''
Prof Nicholson also hoped the division would drive student participation in exchange programmes, which she said was beneficial for several reasons.
''Evidence from the [United] States and the UK shows that people who have been on exchange find it easier to get jobs and tend to get jobs with higher pay.''
Otago students going on exchange also benefited the campus at large, she said.
''There are always going to be students who aren't able to travel for a variety of reasons, but we want them to have an understanding of what's happening globally,'' she said.
''If they can't go, we have to bring international students here or have their own New Zealand flatmates who go on exchange and come back.''
This week, the university was also awarded over $80,000 in government funds for the development of two new study abroad programmes, one in Malaysia, and one in Europe.
In addition to the creation of the new division, several new people would be hired to work in the international office, Prof Nicholson said.
