New report highlights the untapped revenue potential of e-learning in the current downturn

According to the latest independent research commissioned by KPMG Consulting, companies that implement an integrated e-learning solution could improve their revenue by up to 0.5%.

E-learning is made possible by using electronic multimedia technology to deliver education, information, skills, knowledge and individual learning programs, through CD-ROMs, the Internet, Intranets and other innovative technology based systems.

Global organisations taking part in the research study included companies such as British Airways, Daimler Chrysler, GlaxoSmithKline, Nokia Corporation and Unilever. Almost all surveyed respondents believed e-learning is the only effective way to support the learning requirements of people and organisations operating in a rapidly changing business environment. The research revealed that the over all key driver for adoption of e-learning internally is the prospect of cheaper, more effective training.

For example, a company the size of Ford can gain higher earnings in the region of lb500 million with the adoption of an integrated e-learning solution. Such revenue increases can be achieved mainly through reducing time to market and increasing the productivity of sales forces.

In addition to revenue generation, e-learning can create cost savings of up to lb7.5 million a year for the average large UK corporations. For example, IBM saved lb200 million per year by moving 70% of its courses online.

British Telecommunications (BT) used e-learning to educate 40 000 people about Internet protocol within six weeks. Over and above cost saving and a reduction in training hours, research indicated that knowledge retention was 25% to 60% higher than with normal classroom-based training. These findings have been published in an independent report entitled, `Earning through Learning: Global lessons in e-learning`, commissioned by KPMG Consulting. Over 50 business leaders and HR executives in 12 global organisations participated in the research.

Additionally, the research report revealed that leading-edge companies are moving beyond the concept of e-learning simply as a means of delivering better and cheaper training. Companies and are beginning to grasp the potential of e-learning to transform their businesses and have started blending traditional instructor-led courses with Internet-enabled, learner-centric education. Some are combining online learning with knowledge management and internal communications. Additionally, a select few are bridging the gap between content and capability with a made-to-measure mix of technology and strategic change management.

According to Vera Massyn, director at KPMG Consulting, the adoption of e-learning locally can be described as cautious. "South African businesses do not always tie the investment made in new technology back to long-term cost reduction. We are still noticing a wait and see attitude, where companies do not wish to get caught up in a new technology hype.

"Additionally, we are also aware that a large majority of our clients are still conservative in terms of allowing all their employees access to Internet," said Massyn.

"However, we believe that in today`s economic times, e-learning has a vital role to play in rapidly re-skilling people and organisations for the tougher times ahead. Although we can benefit from the lessons learned internationally, e-learning should be examined seriously locally as it will aid in capacity building."

Massyn also mentioned that e-learning should not only be seen as a corporate learning tool. "There is a huge untapped potential for e-learning in the public and tertiary education sectors. By adopting an e-learning strategy the costs per head are up to 88% lower than traditional classroom training," said Massyn.

To assist companies to exploit the full transformational potential of e-learning, KPMG Consulting offers a comprehensive e-learning solution that includes the development of an e-learning strategy and the delivery and implementation of an appropriate learning solution within all industries.