Book review
The Business Case for e-learning
Authors: Tom Kelly and Nader Nanjiani
Publisher: Ciscopress.com (2004)
Review by Donald Clark, Epic
Ever heard the question, ‘But where’s
the evidence that e-learning works?’ This book gives a detailed
answer – a resounding YES.
Tom Kelly is top dog in e-learning at Cisco and Nader is his marketing
manager. These guys have been around a while and, although one could
argue that the book is really a marketing vehicle for Cisco, it
is credible and worth reading.
The first line is the bottom line
With its focus on productivity it shows, through the Cisco experience,
how e-learning can be a bottom line issue. They claim, in 2003,
to have had a measurable yield of $16 for every dollar spent on
their e-learning portal for reseller development, in total $143
million. They have their model, based on integrated, synergistic
approach to e-communication, e-training and e-assessment, across
a networked environment. Some would argue that it is easy for Cisco
to say this as they build networks, the rest of us have to pay top
dollar to get going.
Their evidence was based on a study concluded in April 2004 on
their PEC portal (Partner E-learning Connection). This was e-learning
delivered free to resellers and was in its fourth year of operation,
widely regarded by resellers as leading to increased sales. Walker
Information conducted the reseller survey and the results were fascinating:
- 95% said e-learning made them more productive in selling, supporting
and servicing Cisco products
- On average nine and a half hours per month per person was saved
in selling, supporting and servicing
- 82% reported increased sales as a direct result of the e-learning
- On average increased sales were $9700 per month
Understanding the Business Impact of E-learning
E-learning had an unusual champion in Cisco, the CEO John Chambers.
It was he who hyped up the e-learning proposition in a famous speech
in Las Vegas. This episode is strangely absent from the book. However,
it is clear that the productivity gains that Cisco sell to their
customers in terms of cost savings, revenue and compounding were
also applied internally and to their resellers. Their learning strategy
really was aligned with business productivity goals. The goal was
to do more for less. Knowledge workers had to be developed to reduce
costs and time, increase success with customers and increase revenue.
They rather bravely, throw a hand grenade at classroom training
at the end of Chapter one.
In Chapter two they present their pyramid, three-staged model (everyone
needs one of these) of e-communication, e-training and e-assessment.
This they use as a framework for the productivity arguments. They
deal with objections in nice little grey-boxed interludes –
a nice way to diffuse problems the reader may have with their propositions.
Tucked away at the end of this chapter is a nice little list showing
a breakdown of business sectors using e-learning in October 2004.
- Finance 65%
- Government 43%
- Pharmaceuticals 37%
- Healthcare 35%
- IT 35%
- Communications 29%
- Manufacturing 29%
- Utilities 22%
- Retail 17%
- Transportation 15%
- Education 11%
- Other 12%
Chapter 3 puts e-learning under the microscope. We see that e-communication
is a combination of collaboration tools and e-learning tools. Video
over IP was a particular strength (again easy to do if you’re
Cisco) and they lay the cost savings on the line.
| |
|
| Web-based training |
$69M |
| Cico TV |
$19M |
| Video-on Demand |
$6M |
| Virtual Classroom |
$7M |
| Lab Simulation |
$41M |
| Total |
$143M |
Source Cisco IBSG, Internet Capability
Analysis, FY 2003.
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E-training moved from a purely content-driven model to a more dynamic
learner-centric model. Each product, functional and corporate group
had its own training portal. This portal-centric model really did
swim against the LMS tide. RLOs (Reusable learning Objects) and
RIOs (Reusable Information Objects) were prescribed, all tagged.
This was all brought together through performance appraisals. Ultimately
this led to dynamically delivered, personalised constant through
a My Learning or My Development page.
Their five step model in production was:
- Step 1: Analyse learning
- Step 2: Review step 1
- Step 3: Develop content including RIOs/RLOs.
- Step 4: Deliver content against audience needs
- Step 5: Manage, track, assess and prescribe content
Note that e-learning at Cisco is joined at the hip with assessment.
Their e-assessment focuses on Cisco certification with over 10,000
individuals worldwide holding CCIE certification. They argue that
the benefits to employers and employees in terms of productivity,
job mobility and increase job security are overwhelming.
A couple of case studies
Chapter 4 looks at Bearing Point’s success with e-learning
and is full of useful warnings and tips. The next case study on
the University of Toyota, based on Los Angeles. Interestingly, softskills
became their focus. It would have been good to have had more case
studies but as the book is essentially about the Cisco experience
that may be too much to demand.
Cisco Networking Academy
Then all hell breaks loose as e-learning goes global within Cisco
through the Cisco Networking Academy. A social investment with investment
partners in more than 10,000 educational institutions in 140 countries,
delivering to over 400,000 students. This is a blended learning
solution with e-assessment. There’s a nice touch when the
story of Beth, from Rwanda is introduced.
Best Practices
The rest of the book is simply good advice on getting the e-learning
thing done. It’s prescriptive, and tends to follow Cisco lines,
some of which are good, others inappropriate in a less technical
culture. Although the book does bring up genuine problems, pitfalls
and land-mines, it could have been a little more honest about the
problems with RLOs/RIOs. These proved difficult to tag and meaningfully
combine.
This was a combination of review and summary, as I think the data
is important. All in all about as good a case study as you’ll
get in e-learning. It asks the right questions and delivers the
answers.
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