Table 2: IRR for Training Company (NIPT) view point |
Cost BreakUps
|
Class Room Training (Rs.)
|
e Learning (Rs.)
|
Consultant training charges (Rs.3000 per day) |
150,000 |
75,000 |
Consultant travel + Hosting charges |
130,000 |
Nil |
Training venue charges |
1,000,000 |
Nil |
Course development cost + Hand outs |
210,000 |
400,000 |
Learning management systems (1st year amortized) |
Nil |
300,000 |
Analysis |
Cost to the Consultant Group |
1,490,000 |
775,000 |
Cost to the Consultant Group per employee |
3,725 |
1,938 |
Profit |
510,000 |
625,000 |
|
|
ROI Analysis |
The above tables 1 & 2 shows
the ROI calculation from ABC Motors (client) view point & other
Training company (NIPT) view point. The total cost to the client
is around 70 Lac rupees for classroom training of 400 middle management
and per employee cost to the client is around Rs. 17, 500 where
as the profit to NIPT Consulting group is around 5.1 Lac rupees.
|
In the second case assuming
the training is conducted with the help of e-Learning with similar
conditions w.r.t. classroom training. The cost to the client is
around 2.6 Lac rupees, i.e. 3 times reduction in training cost to
the client or 3 times reduction in the cost of training per employee.
Similarly for training company (NIPT) the return on investment for
classroom training is around 34% where as in case of eLearning the
return on investment is around 80%. This is the profit in only one
training event. With the eLearning model, NIPT can deploy the same
course in several such training events for various corporate clients.
Further, with the eLearning model the training need not remain an
"event" but can be offered continuously throughout the year (24x7x365)
and lifecycle of the training course. The same course can be offered
multiple times as there is no physical restriction on number of
candidates.
|
Pl. note that this figure
and calculations are representative and may vary as per case. The
case study is a representative to give a feel of ROI.
|
|
|
8.0 Conclusion |
Existing learning providers
such as colleges, universities, institutions, consulting companies,
niche-training agencies etc need to harness the current technologies
to expand their markets and retain their existing clientele. Government
and nonprofit agencies need to use the new medium to educate the
public in a cost-effective manner.
|
The massive improvements
in availability and access to internet, multimedia, telecom and
other technologies now allow organizations to meet this challenge
by making appropriate choices for cost-effective internal/ external
E-Learning solutions.
|
E-Learning is changing, moving
away from simple text -based online courses to becoming integrated
with overall business processes. By 2011, the higher education and
corporate training markets will likely will remain the largest.
Mobile learning and games and simulations are seen as key growth
areas.
|
eLearning Offering from the perspective of IIIE |
Applying BPR (Business Processes
Re-engineering) of Traditional Training and streamline the process
by using internet, multimedia, telecom and other Information technologies
with the view of imparting knowledge to the society as a whole.
|
eLearning offering can be
looked as a strategic decision for achieving the Vision & mission
of the IIIE:
|
ELearning can foster and assist professional education in Industrial Engineering |
ELearning will help in intimate, support and disseminate research in IE perspective and practices. |
ELearning will Intensify Industry-Institution interaction and aggressively 'Market' the benefits of IE profession. |
ELearning can assist in providing opportunities for acquiring formal and recognized qualification in the field of Industrial Engineering. |
ELearning will help IIIE foster, assist, conduct, education and research in subjects related to the profession |
with ELearning IIIE can offer correspondence and other courses |
By setting examples to other organization for spreading education |
With above perspective IIIE can adopt eLearning
as one of the strategic tools to take IIIE in to 21st century. This
strategy will not only become one of the prime revenue sources but
also make IIIE as one of the progressive & best institutes in years
to come.
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