top strategies for assessing the roi of online learning
TRANSCRIPT
Top Strategies for Assessing the ROI of Online LearningJames Nicolson & Nimritta Parmar
E M P O W E R TA L E N T
James NicolsonLMS Sales Engineer
Nimritta ParmarLMS Marketing
Coordinator
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Today’s Topics
1. Calculating ROI• Classroom-based training• Webinar training• LMS (Open Source vs.
Proprietary)
2. Tips for Maximizing Your ROI
How are you currently conducting training?
– Face-to-face– Web-conferencing sessions– Proprietary platform– Open source LMS
Poll Question
Measure the costs and benefits of training through the particular method you are using
Costs – course development, course materials, registration, staff, promotions, facility, equipment, evaluation.
Savings & Benefits – improved performance, increased productivity, decreased labour, income generation
Calculating ROI: Step 1
Calculate how long it takes before the benefits outweigh the costs
Also known as the “Payback Period” – how long before training pays for itself?
Payback period = costs/monthly benefitsX Number of months
Calculating ROI: Step 2
Other outcomes to measure and consider:
• Engagement and Reaction• Learning & Retention• Application, Behaviour & Learner Response• Impact on Business
ROI isn’t always monetary
Do you currently have a method for calculating ROI?
– Yes, and it’s effective– Yes, but we need more insight– No, we do not
Poll Question:
Costs of Learning
• How many people do you train per year?
• What is the average cost of each course?
1. Costs of Classroom-based learning
Real-time training cost considerations:
• Do you pay people to travel to courses?
• Do they require accommodation?• What is the annual cost for an LMS?
… Compare to Online Learning
• Lower training costs• Train more learners, more effectively• Doesn’t need to be in real time • Deliver consistent training• No cost of travel/accommodations
Example: Webinar-based Training
Webinar-based training..• Online – reduces the cost of learning• Recorded – reach a large audience with
one piece of learning material• Low cost - services accommodating 100+
participants for a monthly fee between $50-$100
Example: Webinar-based training
Webinar cost considerations: • How much time and money is invested in
developing a webinar • How long are your webinar presentations?• How engaged are your students?• How effective are full courses delivered in a
webinar format?• Can you re-use this presentation, or is it a one-
time use?
Now, why an LMS?
• Students can manage their own schedules• Access sophisticated administrative functions– Compliance tracking, certifications, HR functionalities,
performance management, 360 reviews
More effectively train learners, and better track learning
Open Source LMS or Proprietary LMS
Fundamental ROI question:
If you’re considering a new LMS, are you interested in paying a license fee per user, or on a perpetual basis?
Freely Distributed
Easy to MoveLarger User Community
First of all, what is Open Source
Open Source LMS vs. Proprietary LMS
Proprietary LMS
• Licensing fee per user • Single support channel• Vendor driven development• Sole, proprietary vendor and
platform. • Locked In • May or may not include
upgrades
Open Source LMS
• Free/minimal licensing fee required
• Community Drive• Extensive Functionality• Extensive Partner Community• No lock-in• Upgrades/New features don’t
cost extra - No hidden costs
Open Source LMS vs. Proprietary LMS
Considerations beyond the cost…
• Risk of disruption• Community of open source• User-friendly
Open Source Services
• Hosting• Training• Customization• Support• Theming• Reporting/Analytics• X no licensing (image), and
no lock in
• Run as many courses as you like
• Onboard new employees more effectively
• Other cost and times savings
• Streamline course registration
• Leverage 3rd party tools
Benefits of Open Source LMS
1. Be transparent – Communicate the value of the LMS
2. Make sure your LMS is easy to use
3. Get the right support from your vendor
4. Use data and analytics to track learner progress, and learning outcomes
Tips for Maximizing Your LMS ROI
Questions? Ask Away!
• Resources will be sent out in our follow-up email• PowerPoint• Recording• Learning resources we discussed
Next Steps
