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Causes and driver of corporate e learning
The document outlines several key drivers of corporate e-learning adoption. It states that the global economy has shifted to become knowledge-based, placing greater emphasis on continuous learning. Additionally, advances in technology have increased work complexity and the pace of change, requiring more frequent skills updates. There is also a growing gap between the skills workers possess and the needs of knowledge-based industries, driving the need for reform in education and training. E-learning helps address these issues by providing a flexible, cost-effective means of delivering just-in-time, ongoing training to geographically dispersed workforces.
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Causes and driver of corporate e learning
- 1. Causes & Driversof Corporate E-Learning
- 2. Causes & Driversof Corporate E-Learning 1. Economy is evolving to a knowledge-based economy. In the last four decades, economic and technological forces have transformed the world economy from a production-based economy to a service based economy. In the old economy, corporate value and value creation were defined primarily through physical and financial assets.
- 3. Causes & Driversof Corporate E-Learning 1. Economy is evolving to a knowledge-based economy. Cont…. The new economy puts a premium on intellectual capital. However, the life of knowledge and human skills today is shorter than ever, increasing the pressure to remain at the forefront of education and training throughout a career.
- 4. Causes & Driversof Corporate E-Learning 1. Economy is evolving to a knowledge-based economy. Cont…. In the midst of globalization and technological revolution, four-year degrees are just the beginning of a forty-year continuing education. Life-long learning may be considered merely a buzzword today, but it is quickly becoming an imperative.
- 5. Causes & Driversof Corporate E-Learning 2. A paradigm shift in the way education is viewed and delivered. At the beginning of the new millennium, corporations view learning increasingly as a competitive weapon rather than an annoying cost factor. Business success depends more and more on high-quality employee performance, which in turn requires high-quality training.
- 6. Causes & Driversof Corporate E-Learning 2. A paradigm shift in the way education is viewed and delivered. Cont… Corporate executives are beginning to understand that enhancing employee skills is key to creating a sustainable competitive advantage. In the quest to remain competitive in today’s labor-tight market, companies are exploiting advances in technology to train employees more rapidly, more effectively, and at less expense than in the past.
- 7. Causes & Driversof Corporate E-Learning 3. Huge knowledge gaps demand educational system reform. The new global economy poses more complex challenges to workers, requiring higher levels of education, computer literacy, critical thinking, information analysis, and synthesizing skills. However, educational deficiencies have brought America tot he edge of a widening knowledge gap.
- 8. Causes & Driversof Corporate E-Learning 3. Huge knowledge gaps demand educational system reform. Con…. The Corporate world some country is lagging behind educational levels of other industrial nations in several key indicators. for example, U.S. students, still trail students from other developed countries in mathematics and science achievement, according to the U.S. Department of Education.
- 9. Causes & Driversof Corporate E-Learning 3. Huge knowledge gaps demand educational system reform. Cont… Even more alarming is that the literacy proficiency of a substantial proportion of the U.S. labor force is limited. More than forty percent of the labor force perform at the two lowest levels on government literacy scales,1 suggesting that many workers lack the skills needed to interpret, integrate, and compare information using written materials common to the home or workplace.
- 10. Causes & Driversof Corporate E-Learning 3. Huge knowledge gaps demand educational system reform. Cont… The gap between the higher demands of a knowledge economy and the educational status of the workforce is deep and must be addressed if the U.S. is to remain competitive internationally. A thorough re examination of curriculum and teaching methods as they relate to labor market preparation is needed. Academic and corporate environments must be redesigned to adequately prepare people to function in an information society.
- 11. Causes & Driversof Corporate E-Learning 4. Technological changes increase complexity and velocity of work environment. Technology has changed the way we live, work, think, and learn. Today’s workforce has to process more information in a shorter amount of time. New products and services are emerging with accelerating speed. As production cycles and life spans of products continue to shorten, information and training quickly become obsolete..
- 12. Causes & Driversof Corporate E-Learning 4. Technological changes increase complexity and velocity of work environment. Cont… Training managers feel the urgency to deliver knowledge and skills more rapidly and efficiently whenever and wherever needed. In the age of just-in-time production, just-in-time training becomes a critical element to organizational success.
- 13. Causes & Driversof Corporate E-Learning 5. Lack of skilled labor drives need for learning. With unemployment rates at historic lows and a widening skills gap among the workforce, corporations compete severely for skilled workers. According to Price Waterhouse Coopers, 70% of Fortune 1000 companies cite lack of trained employees as their number-one barrier to sustaining growth.
- 14. Causes & Driversof Corporate E-Learning 5. Lack of skilled labor drives need for learning. Cont.. Business managers realize that corporations that offer ongoing education and training enjoy a higher rate of employee retention and the benefits of a better-skilled workforce. As a result of the rising importance of training, an increasing number of corporations have hired Chief Knowledge Officers (CKOs) or Chief Learning Officers (CLOs) to plan and coordinate training programs.
- 15. Causes & Driversof Corporate E-Learning 6. Fierce competition in most industries leads to increasing cost pressures. With traditional training methods, companies generally spend more money on transporting and housing trainees than on actual training programs. Approximately two-thirds of training costs are allotted to travel expenses, which represents a major drain on bottom-line profitability.
- 16. Causes & Driversof Corporate E-Learning 6. Fierce competition in most industries leads to increasing cost pressures. Cont.. In today’s competitive environment, organizations can no longer afford to inflate training budgets with extensive travel and lodging. If opportunity cost is taken into account, the actual costs of training are even higher. Time spent away from the job traveling or sitting in a classroom reduces per-employee productivity and revenue tremendously.
- 17. Causes & Driversof Corporate E-Learning 7. Globalization of business is resulting in manifold challenges. Advances in information technology and falling trade barriers facilitate business around the globe. As borders become less meaningful, global competition intensifies. International expansion and accelerating M&A activity have led to larger and more complex corporations.
- 18. Causes & Driversof Corporate E-Learning 7. Globalization of business is resulting in manifold challenges. Cont… Today’s businesses have more locations in different time zones and employ larger numbers of workers with diverse cultural backgrounds and educational levels than ever. Thus, more information has to be delivered in increasingly larger organizations, challenging internal planning, logistics, and distribution. Corporations worldwide are now seeking more innovative and efficient ways to deliver training to their geographically-dispersed workforce.
- 19. Causes & Driversof Corporate E-Learning 8. Social and demographic changes direct education toward older target groups. Organizations and training providers need to evaluate whom they train and how. Today, traditional students in higher education – age 18 to 22 – make up less than 20% of all students. The fastest growing group attending higher education institutions are working, part-time students older than 25. This new group of “learning adults” is seeking education principally to advance their careers and increase their salaries.
- 20. Causes & Driversof Corporate E-Learning 8. Social and demographic changes direct education toward older target groups. For universities and business-to-consumer (B2C) training providers, these individuals are excellent candidates for education delivered to their homes or offices. Declining birth rates, aging population, and lack of skilled labor also require an objective evaluation of the training needs of older age groups.
- 21. Causes & Driversof Corporate E-Learning 8. Social and demographic changes direct education toward older target groups. Cont… In the new economy, even senior workers, including those nearing retirement, need to be trained. Broader acceptance of new training delivery options among older workers should facilitate the training process. Americans over 50 years old are already the fastest growing user group of the Internet today.
- 22. Causes & Driversof Corporate E-Learning 9. Knowledge workers require greater flexibility in the workplace. Globalization, competition, and labor shortages cause employees to work longer, harder, and travel more than previous generations did. At the same time, these workers require more independence and responsibility in their jobs and dislike close supervision.
- 23. Causes & Driversof Corporate E-Learning 9. Knowledge workers require greater flexibility in the workplace. Cont… Today’s knowledge workers have a non-traditional orientation to time and space, believing that as long as the job gets done on time, it is not important where or when it gets done. By the same token, they want the opportunity to allocate time for learning as needed. Modern training methods need to reflect these changes in lifestyle.
- 24. Causes & Driversof Corporate E-Learning 10 Learning has become a continual process rather than a distinct event In the new economy, corporations face major challenges in keeping their workforce current and competent. Many past training practices are unable to meet these challenges. Traditional training is often unrelated to new business initiatives or key technology drivers. In “just-in-case” fashion, courses are given and then forgotten, often without improving the performance of workers.
- 25. Causes & Driversof Corporate E-Learning 10 Learning has become a continual process rather than a distinct event. While learning is not a one-time activity, training has traditionally been treated as such. To retain their competitive edge, organizations have started to investigate which training techniques and delivery methods enhance motivation, performance, collaboration, innovation, and a commitment to life-long learning.