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Cost Reduction Opportunity
One of the most important trends in enterprise learning is the ever-sharpening focus on linking corporate training programs to the business. Recent Accenture Learning research into high-performance learning organizations, based on a survey of 285 senior learning executives around the world, found that maximizing the impact of learning on the business while dealing with budget constraints is the #1 concern. This concern certainly highlights the criticality of the effectiveness of the Enterprise Learning (E-Learning) programs.
Corporations view learning increasingly as an increasingly competitive weapon. Business success depends more and more on high-quality employee performance, which in turn requires high-quality training. Corporate executives understand that enhancing employee skills is a key to creating a sustainable competitive advantage.
According to American Society for Training & Development (ASTD) 2010 Learning Trends report, over 18% of enterprises spent more than half of their entire training budgets in 2009 for blending or substituting traditional training with e-Learning. Training cost changes and changes in training effectiveness are two major reasons for an enterprise to substitute or blend traditional training with e-Learning. Corporate e-Learning is one of the fastest growing and most promising markets in the education industry.
Increases in spending on learning is a question that is already of great attention with ever growing importance. Enterprises are struggling with identifying and accounting for all components of development costs for e-Learning. Instructor development costs and software/hardware purchases may become so overwhelming that at times there is no cost-associated justification for developing a new e-Learning course instead of purchasing the course or creating a classroom course. While the costs of e-Learning will continue to grow the understanding of its structure and follow-up analysis could significant improve the spending.
Nevertheless, the decision-making process is still lacking cost-based analysis. The difference in the structure of costs for traditional training and e-Learning, the information scattered between multiple ERP applications and information that never got into any of ERP application, the absence of a consistent model to calculate the costs, and inability to easily modify the existing models are all factors that could lead an enterprise to an inefficient decision; thus, missing cost reducing opportunities. |
 's Value Proposition
's solution - Cost of Enterprise Learning Management application – is designed to provide calculations for both the development stage of training courses (Course Types) and the delivery stage (Course). The calculations are based on a hierarchical cost model that offers:
- default cost values attached to the various business objects of the organizational schema or employee information
- depreciation models for the Course Type development costs
- adjustments that can apply to Course Type or Course costs
- actual development or delivery costs recorded using FlexIntel’s Data Entry module.
The models of Enterprise Learning development and delivery are fully user configurable. The wizard-based interface allows the user to include/exclude cost categories and cost types inside a category, select depreciation and calculation formulas and set coefficients and default values. The wizard also allows for the inclusion of custom cost types defined for any transactional or linked data elements (Cost Structure and Setup.)
The application allows the integration of all existing data that is required by each category of the cost calculation. Depending on the customer configuration the data can be linked and/or dynamically retrieved from multiple sources (Connecting Existing Data). For missing data the new transactional database storage and reach data entry interfaces are created automatically (Creating Transactional Data.) Fragmented data that exists in spreadsheets, files and hard-to-support custom databases can also be moved to the new transactional database.
The Cost of Enterprise Learning Management component includes standard parameterized reports to present various summaries and groupings of the categorized costs for a selected time period. Special reports can be added on a customer request during the implementation. Ad hoc reporting provided by the Costs Analyzer customers can perform any conditional summary reporting(Cost Analysis and Reporting.) The planning modules (currently in development) will perform multi-variant planning of the hiring and comparative analysis of training course development and delivery. |
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