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Apr 30
2009
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The new economic realities mean that every manager up and down your organization is going to have to fight to spend money on anything.
You can expect eLearning to come under as much scrutiny as the next line item. It pays to be prepared.
If you’re responsible for commissioning eLearning or running an internal team, be ready to fight the good fight.
For this insight, let’s concentrate on the cost savings from eLearning, compared to instructor led alternatives.
Here are a few bullets to have ready when someone comes asking why we should spend on eLearning –
1. Travel costs = zero
For Example - Dow Chemical reduced average spending of $95 per learner / per course on classroom training, to only $11 per learner / per course with electronic delivery, giving rise to an annual saving of $34 million (Shepherd, 2002).
2. Marginal cost of delivery = zero
3. Learner time is better spent
For Example - Ernst & Young cut training costs 35 percent while improving consistency and scalability. They condensed about 2,900 hours of classroom training into 700 hours of web-based learning, 200 hours of distance learning and 500 hours of classroom instruction, a cut of 52 percent. (Brandon Hall, 2000).
4. It works for specialist content too
Let us show you, take the free TOPYX test drive and learn more about eLearning/social networking – http://www.interactyx.com/eLearning/Request-Solution.html
If in doubt, do the math
It’s not difficult to construct a side-by-side analysis of the cost of delivering one hour of eLearning vs. an instructor led session. Prepare a simple spreadsheet showing what it costs for an hour of trainer time, learner time, travel costs, opportunity costs, material production, and room rental and then scale it up to the size of your target audience. Compare it to eLearning’s upfront development and delivery costs. Even allowing for maintenance costs for eLearning, the business case for eLearning is nearly always going to win out – especially in a downturn.
Request a quote here and find out how easy it is to start using TOPYX for all of your eLearning and social networking needs!
Check out this article from Kineo for some additional points: http://www.kineo.com/elearning-tips/tip-7-making-the-business-case-for-e-learning.html
Jodi Harrison
Vice President, Business Development
Interactyx Limited
www.interactyx.com










