Designing, developing, implementing, and supporting e-learning costs money—and no organization wants to waste money. Therefore, every e-learning product must yield the maximum return on the investment. To achieve this, organizations need to understand the stages of the e-learning product lifecycle. With this knowledge, they can maximize the impact of their efforts at various stages, thereby extending the lifespan and effective use of an e-learning product. This, in turn, will directly increase the return the organization realizes on its investment in e-learning.

1. Improving Return on Investment (ROI)
Through Increased Attention to the Product
Lifecycle
Gregory C. Sales, Ph.D.
Designing, developing, implementing, and supporting e-learning costs money-and no
organization wants to waste money. Therefore, every e-learning product must yield the
maximum return on the investment (ROI) that is made when it is produced. This means, with
rare exception, that e-learning products are developed for organizations with:
• large numbers of individuals (employees, customers, vendors, etc.) to train
• trainees at multiple locations that need the same training
• an on-going need for the training, either to train new individuals or as a resource for those
already trained
• concerns about the quality, consistency and accountability associated with traditional
training methods
When engaging in e-learning development, organizations tend to function in a tactical or reactive
mode. They have identified a critical training need and work to address it as quickly as possible.
They seldom have the resources or organizational mandate to develop a comprehensive e-
learning strategy, or even a clear plan for one product with respect to:
• promotion,
• rollout,
• support,
• evaluation,
• maintenance, or
• replacement
However, given the scale of most e-learning implementations and their potential impact to an
organization, it is essential that e-learning be viewed strategically. To help with this process,
organizations need to understand the stages of the e-learning product lifecycle. With this
knowledge, they can maximize the impact of their efforts at various stages, thereby extending the
lifespan and effective use of an e-learning product. This, in turn, will directly increase the return
the organization realizes on its investment in e-learning.
Lifecycle of an E-learning Product
The Lifecycle of an e-learning Product (Figure 1) represents the critical events of an ideal e-
learning product cycle. The cyclical nature of the model recognizes the reality that most training

2. needs continue even after the useful life of a product has ended. At that time, the lifecycle begins
anew with an updated, refined, or re-conceptualization next-generation product.
The lifecycle of an e-learning product is comprised of three phases, or general categories, and
seven stages that involve specific tasks. Each stage represents an essential part of an e-learning
product's natural evolution. Neglecting to address any of these seven stages, or even the tasks
within a stage, could negatively impact the success of the entire e-learning. The more stages or
tasks that are overlooked or under emphasized, the greater the likelihood of problems with the
product or under utilization by the intended audience of learners. Such issues will result in a
significantly lower ROI.
From A Quick Guide to E-learning, by Gregory C. Sales, Expert Publishing, 2002.
Figure 1
The product lifecycle has three general phases into which the seven stages fall:
• Creation-the first phase, consists of the Analysis, Design, and Development stages. The
creation phase has one primary goal: The creation of the most effective and useful
product given situational constraints that exist.
• Delivery-the second phase, consists of the Marketing and Dissemination stages. The
delivery phase has two primary goals: Getting those who might benefit from the training
interested in the e-learning product and getting the product used by all of the learners
with minimum effort and frustration.
• Support-the final phase, consists of the Implementation and Revision or Retirement
stages. The support phase has one goal: To keep the e-learning product in use and
optimally effective, for as long as possible.

3. Stage Related ROI Factors
As stated above, attention to every task within each stage of the product lifecycle is essential to
optimizing the ROI for an e-learning product. Below, the ROI factors associated with each stage
and its tasks are briefly discussed.
Analysis. Before the analysis stage begins, a needs assessment should have been conducted.
When the results of the needs assessment indicate that training is needed, then the front-end
analysis is conducted.
There are five separate front-end analyses that should be completed - learner, environmental,
instructional, delivery system and constraints. Each analysis has a specific purpose. The results
of these analyses should influence design, development and delivery decisions, all of which have
associated costs. With optimization you can reduce costs and increase the ROI.
The learner analysis will help to determine how the e-learning must be developed to meet the
needs of the learners. For example, does the instruction need to be accessible to individuals with
handicaps? Should it be presented in multiple languages? Is an introduction to using computers
needed for those new to e-learning? By understanding the learners' needs and capabilities, the
software can be designed to accommodate such needs, thereby, reducing costs and increasing
efficiency and learner satisfaction.
An environmental analysis will examine where and how the instruction will be used and should
answer questions like these. Will the learners need to wear headphones to block out noise or
prevent the instruction from disturbing others? Is the learner likely to experience interruptions or
have only brief periods of time to devote to the e-learning? The results from this analysis can
influence the size of lesson components, the use of media, and the creations of tools, such as
bookmarks, to facilitate use of the product. The failure to provide a product that integrates into
the learning environment could result in resistance from learners and decreased learning.
An instructional analysis should result in a clear understanding of the goals and objectives of the
instruction as well as the content structure, prerequisites, and assessment requirements. A
thorough instructional analysis may allow the designer to streamline the instruction or provide
adaptive strategies that reduce learning time for some portions of the learning audience. This can
significantly reduce the cost of training and increase the ROI. Examples of strategies and
techniques that may result from an instructional analysis include the use of diagnostic and
prescriptive testing, stratification of the instruction based on job classification, and adaptive
practice sessions that determine the number of practice items presented based on performance.
The delivery system in an instructional setting includes all the resources that may be used to
address a learning need. Conducting a delivery system analysis may reveal the availability of
existing materials or personnel that can be used to support the e-learning product. Such resources
might include manuals, job aids, peer tutors, supervisors, and virtual environments. Any resource
that can be used to reduce production or delivery costs helps to shift the balance in the ROI
equation toward the positive.

4. One important factor in optimizing ROI is the rollout of quality e-learning when it is needed.
Delays can negatively impact business in any number of ways. Understanding all of the
constraints that exist at the outset of a project is a must. Otherwise, the project risks both budget
overruns and delays in delivery. An analysis of the project constraints will identify the
availability of time, money and people for the project. With this information the project team can
make the necessary decisions to create the best product possible using the available resources.
Design. It is during the design process, more than at any other time in the life of a product, that
the quality, usability and effectiveness of the product are determined. Applying adequate
resources to the design task is absolutely necessary when you intend to achieve a high ROI.
Complete and unrestricted access to content and content sources, subject matter experts, and
content reviewers is the key. If for example, a project manager or subject matter expert has other
higher priority commitments, the design phase may be neglected causing content to be
overlooked, sequenced improperly, or inaccurately presented. Such errors and omissions can
result in poor training or higher development costs and the need to rework lessons. These
problems can cause the cost and/or benefit to take a hit and will hurt the bottom line of the ROI.
Development and Testing. Carefully planned development and frequent testing can prevent
major problems later in a product's life. The release of software with functional errors or that will
not operate on a sub-set of end-user systems will quickly and seriously damage any e-learning
initiative. The results of the front-end analysis should be reviewed and used to inform decisions
about development tools and testing strategies.
Marketing. One of the most common problems in the use of e-learning is the failure to plan and
conduct effective marketing. All too often the product marketing is completely overlooked. The
e-learning team is focused on design and development only. They assume, if I may paraphrase,
quot;If they build the software, learners will use it.quot; This is a faulty assumption and the lack of a
marketing strategy can completely negate the value of a quality e-learning product.
Obviously, training software has to be used to be effective. Where thoughtful marketing
strategies have been implemented, reports of as high as 97% completion of e-learning have been
reported. Some corporations, however, report as low as 4% of a target population using e-
learning. I would argue these poor results are largely due to ineffective marketing of the product.
Dissemination. Web technology has made the distribution of e-learning almost effortless.
However, getting the software out is only half the problem. You also need to get learners to use
it. As mentioned above, marketing is one effective tool for increasing use. Marketing will let the
intended audience know that an e-learning product is under development and will soon be
released. Another tool is motivation. When used effectively, motivational techniques can be used
to increase employees' participation in e-learning. For example, one approach is to appeal to
employees self-interests - How will participation help me achieve something I value?
Increasing numbers of learners and learner engagement with the e-learning will also increase the
ROI. Implementation.

5. An effective implementation is an invisible implementation. End-users of an e-learning product
shouldn't have to know anything about the efforts and techniques used to bring an e-learning
product to them. They should only perceive access to and use of the product as easy and
convenient.
To minimize opportunities for problems, here are a few things to consider. Prior to releasing the
e-learning, know how you are going to field problems. Train support staff in the registration and
operation of the new software and let the learners know how to get help if they have problems. If
you are releasing training to a large population, phase the release to prevent system overload or
other problems that may result from a sudden rush of learners. Monitor the use of the system,
especially early in its release. You may find that you need to encourage users to access or
complete the instruction. Don't leave this to chance, proactive interventions by an quot;authorityquot; can
dramatically increase use and completion.
Revising and Replacing. Before you begin release of an e-learning product, determine how you
will decide when the product is failing to meet its goal. Then, put into place a plan to monitor the
product. Watch for signs that the product is beginning to fail and have the resources in place to
make revisions or implement a replacement.
The lifespan of a product can be extended significantly if it is carefully monitored and
maintained. Unfortunately, if it is put in place and then neglected, it can cause learners to get a
bad impression and can become a deterrent to their involvement in future e-learning
opportunities.
Closing
The comments and examples above illustrate the value of considering the lifecycle of an e-
learning product when considering ROI planning and evaluation activities. As a planning aid, the
lifecycle helps to highlight areas where the ROI can be positively affected during design,
dissemination and maintenance activities. It is also a useful guide when evaluating the causes for
unsatisfactory ROI findings.
Reference
Sales, G. C. (2002). A Quick Guide to e-learning. Andover, MN: Expert Publishing Inc.
© 2008.