There are two types of benefits in eLearning: tangible and intangible. Tangible benefits can be converted to a dollar value, while intangible benefits are extremely difficult to convert to dollar values. "Some firms that have spent large amounts of money on new e-learning efforts have not received the desired economic advantages" (Strother, 2002), while other firms achieved "economic savings as a result of converting their traditional training delivery methods to e-learning" (Strother, 2002)
Even though some firms may not see an economic return on their investments (ROI) in tangible benefits, there are certainly intangible benefits to converting instructor led training to eLearning. Advantages such as "convenience, standardized deliery, self-paced learning, and variety of available content" (Strother, 2002) are intangible benefits that could lead to a high return on expectation (ROE).
ROI % is typically measured using the following formula:
Benefits- Total Costs x 100
Total Costs
ROI is all about assigning costs to benefits. ROE, however, is measured based on eLearning value. What is the value of the training or learning and does that value qualify as enough benefit to the organization to justify an investment? "Wise training managers realize the bitterness of poor quality remains long after the sweetness of low price has been forgotten" :) Some ROE measurements include: change of learner behavior toward positive business results such as higher quality client interaction, increased production, and lower rate of turnover.
Reference:
Strother, J.B. (2002) An Assessment of the Effectiveness of e-Learning in Corporate Training Programs. IRRODL. Volume 3., No. 1. Retrieved from: http://www.irrodl.org/index.php/irrodl/article/viewArticle/83/160
