Digital solutions can be treated as a minefield as there are ample decisions to be taken and making mistakes at this level can be costly. However, most of the organizations fulfill their financial targets with enterprise Learning Management System (LMS) and yield fruitful results. Today, e-learning is considered as instructional content imparted with web-based technology. Whether you need to facilitate learning, deliver content to different demographic regions or reduce long-term costs, e-learning can be the perfect approach.
There are several reasons why organizations are investing in online learning solutions. As a training method, it imparts different benefits over traditional learning for the right topics and at the right time. While many organizations report growth in their learning budgets over time, online learning is still a part of larger training budgets. Classroom-led training is also an effective learning approach that will always be part of a training toolkit for enterprises. It might be blended with e-learning or even adopted as a standalone approach for customized courses.
Evaluate E-Learning as an Investment
While thinking of initial evaluation of business feasibility and development of business case, the first question that arises is, “Why do you want to invest in this particular project?” What problem can be addressed using robust online platform? For instance, many organizations report that with reduced travel budgets, there is a decrease in count of learners in classrooms, which leads to decreased revenues. So, transforming the overall learning experience from classroom training to e-learning was an efficient way to generate business revenues. The financial analysis of e-learning comprises of three main steps as discussed below:
1. Identify E-Learning Costs
Calculating the initial cost investments and other related costs of e-learning can be complicated. There are multiple decisions to be taken that include investment in enterprise LMS, use of rapid authoring tools, implementation of innovative learning technologies that meet tailored needs. It is not easy for companies to start small and then gradually improve their e-learning budgets over time.
2. Quantify E-Learning Benefits
After analyzing the initial costs involved, the next step is to quantify the advantages of digital learning. Few benefits are hard to quantify, but prove to be significant factors in investment decisions. Some of these are listed here:
3. Calculate e-learning returns
After quantifying the costs and other benefits, the next step is to calculate returns over e-learning investments. One of the method to calculate returns is Economic Value Added (EVA). It assumes there is an opportunity cost to the money invested and might result in better returns.
A significant initiative has been taken by small companies as well as large enterprises. It is common to handle the evaluation of that decision in multiple phases, followed by in-depth research and evaluation. Every learning need is different, so e-learning is the perfect strategy to deliver a right content and meet the ever-changing needs of your organization.
There are several reasons why organizations are investing in online learning solutions. As a training method, it imparts different benefits over traditional learning for the right topics and at the right time. While many organizations report growth in their learning budgets over time, online learning is still a part of larger training budgets. Classroom-led training is also an effective learning approach that will always be part of a training toolkit for enterprises. It might be blended with e-learning or even adopted as a standalone approach for customized courses.
Evaluate E-Learning as an Investment
While thinking of initial evaluation of business feasibility and development of business case, the first question that arises is, “Why do you want to invest in this particular project?” What problem can be addressed using robust online platform? For instance, many organizations report that with reduced travel budgets, there is a decrease in count of learners in classrooms, which leads to decreased revenues. So, transforming the overall learning experience from classroom training to e-learning was an efficient way to generate business revenues. The financial analysis of e-learning comprises of three main steps as discussed below:
1. Identify E-Learning Costs
Calculating the initial cost investments and other related costs of e-learning can be complicated. There are multiple decisions to be taken that include investment in enterprise LMS, use of rapid authoring tools, implementation of innovative learning technologies that meet tailored needs. It is not easy for companies to start small and then gradually improve their e-learning budgets over time.
2. Quantify E-Learning Benefits
After analyzing the initial costs involved, the next step is to quantify the advantages of digital learning. Few benefits are hard to quantify, but prove to be significant factors in investment decisions. Some of these are listed here:
- Performance support
- Increased learning efficiency
- Enhanced consistency in content delivery
- Better scalability
- Better coordination between learner and educator
- More appealing and effective learning styles
3. Calculate e-learning returns
After quantifying the costs and other benefits, the next step is to calculate returns over e-learning investments. One of the method to calculate returns is Economic Value Added (EVA). It assumes there is an opportunity cost to the money invested and might result in better returns.
A significant initiative has been taken by small companies as well as large enterprises. It is common to handle the evaluation of that decision in multiple phases, followed by in-depth research and evaluation. Every learning need is different, so e-learning is the perfect strategy to deliver a right content and meet the ever-changing needs of your organization.
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