Is ROV, the new ROI for e-Learning?
During my research into Return on Investment (ROI) for e-Learning in organisations, I happened to find an interesting article by Kossman.
Kossman, argues a few interesting points about measuring the success of e-Learning in organisations. He argues that organisations have shifted their focus from ROI to a more complete analysis called Return on Value (ROV) to evaluate the success of their e-Learning initiatives.
ROV broadens the focus of ROI and includes financial costs, hard returns (i.e. Increase repeated sales) as well as intangible benefits such as increasing employee competence and customer satisfaction. ROV measures improved operational functions that cannot be easily quantified such as improved efficiencies, effectiveness and customer service of employees.
ROV enables senior management in organisations to make better informed decisions about choosing the most appropriate e-Learning solutions for their organisations as ROV not only measures the direct costs in relation to resources saved.
Therefore, ROV paints a clearer picture of the value created from e-Learning in organisations.
