Risks and Benefits of e-Learning Investment

One of the key factors of interest to a Roundtable group will be the risks to the institution from any e-learning investment strategy. Many studies of costs and benefits have been based around simple scenarios, where the benefits are easily identified (e.g. as the provision of a single online course within a VLE). A study funded by the JISC investigated more complex scenarios. This study generated guidelines to help identify the relationships between the 'costs' of e-learning investment and potential 'benefits' to learning (Nicol et al, 2003). This study provides a Cost Benefit Analysis model that allows you to evaluate the cost-benefit relationships of a range of e-learning scenarios. This information can help your Roundtable to identify priorities across your institution. The risks-benefits model is applied in two main stages: the identification of cost centres (i.e. infrastructure, support services and 'value-added' costs) with full costing followed by the identification of benefit types. Each benefit type is allocated a weighting that reflects institutional priorities and relative merit.

This model can be used by Roundtable groups to inform strategic decisions. For example a fundamental issue you may consider is - is it better to transform how you use a VLE in a way that has a small impact on large numbers of students or a big impact on a smaller group of learners? The Cost Benefit Analysis model can help you compare the merits of each approach and can help establish relationships between benefits and e-learning innovations. This is partly because the model takes into consideration the mission and strategic objectives of the institution. In other words, it guides you in exploring benefits across the institution, rather than focussing specifically on IT or on educational benefits. 'Spin offs' from implementing a VLE could be developing staff skills, improving communication across the institution, or enhancing the external standing of the institution in relation to recruitment in specific subject areas.

The risks and benefits of change can be viewed in terms of the wider benefits to your institution - in particular, how the use of the VLE can be improved at all three inter-related levels: e-administration, e-content delivery and e-learning.

Further resources on risks and benefits:

• JISC infoNet Risk Management infoKit

• David Nicol, Nigel Kay , George Gordon and Michael Coen (2002) INSIGHT:
  A Model for Evaluating the Costs and Benefits of ICT in Teaching and Learning

• David Nicol and Michael Coen (2003) A model for evaluating the institutional costs and benefits of ICT initiatives in teaching and learning in higher education, Association for Learning Technology Journal, ALT-J, 11.2, 46-60

• David Nicol and Michael Coen (2003) The importance of cost-benefit analysis: a response, Association for Learning Technology Journal, ALT-J, 11.3 122-124. Article available from
  http://www.predict.strath.ac.uk/projects/insight/documents/cb_paper.pdf

• Steve Draper (2003) The importance of cost-benefit analysis: a response, Association for Learning Technology Journal, ALT-J, 11.3 , 118-121

• Anderson, C., Day, K., Heywood, J., Land, R. and Macleod, H. (2002), Evaluating networked learning: developing a multi-disciplinary, multi-method approach, in Steeples, C and Jones, C. (eds), Networked Learning: perspectives and issues, London:Springer-Verlag

• Bacsich, P., Ash, C. and Heginbotham, S. (2001) The costs of networked learning:
  Phase Two, Sheffield: Sheffield-Hallam University Please note that the link to the report from Sheffield Hallam University is not live - we are trying to source the article

• Fullan, M.G. (1993). The complexity of the change process (Chapter 3). Change Forces: Probing the Depth of Educational Reform (pp.19-41). Farmer Press.