Future Trends in e-Learning: Measuring the ROI Ted Hoff Vice President, Learning

1. ITAA & ASTD Future Trends in e-Learning: Measuring the ROI Ted Hoff Vice President, Learning October 16, 2002

2. Learning: An Imperative for IBM • The Imperative • The IBM strategy demands innovation, intellectual capital, and integration across complex solutions and practices. • IBM has learning in its DNA. • The business leaders expect learning to drive performance, with measurable business results. • The Opportunity and Challenge • IBM's global and strategic complexity demands the most advanced approaches in learning. • We can leverage our own capabilities to seize the opportunity.

3. Future Trends in e-Learning • An expectation of measurable returns on cost-efficiency and in driving business results. • Learning design focused on understanding which medium and capability will enable what precise learning objective. • Creativity will increasingly separate great learning initiatives from those not worth the time. • Personalized prescriptive learning paths are now essential. • Every step in the learning process will need to be measured.

4. Learning: An Imperative for IBM • Efficiency • $395 million saved in 2001 through the use of e-Learning. • 43% of learning hours delivered through e-Learning. • Learning Effectiveness • e-Learning enables blended design to drive measurable actions, new ideas and business results through learning. • e-Learning provides the foundation for day-to-day work-based learning through communities, networks and mentors.

5. IBM Strategic Learning Planning Customer Needs, Market Dynamics, and IBM Value Proposition IBM Strategies and Goals • The IBM Human Resource Strategy • Leadership • Talent • Climate • Performance • The IBM • Learning Strategy Critical Business Performance Objectives Organizational Capabilities Required Driving Performance Through Learning

6. The IBM 4 Tier Learning Design Model Learning Method(s) Technology When to Use Delivery Form TM TM TM TM TM TM TM TM TM Tier 4: Experience Tier 4: Experience Tier 4: Experience Tier 4: Experience Tier 4: Experience Based Learning Tier 4: Experience Tier 4: Experience Tier 4: Experience Tier 4: Experience - - - - - - - - - - - - - - - - - - On-site Face-to-face GET TOGETHER GET TOGETHER GET TOGETHER GET TOGETHER GET TOGETHER GET TOGETHER GET TOGETHER GET TOGETHER GET TOGETHER Higher Level Alignment, Higher Level Alignment, Higher Level Alignment, Higher Level Alignment, Higher Level Alignment, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Learning Labs, Mentoring, Role Playing, Action Planning, Action Planning, Action Planning, Action Planning, Action Planning, Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Coaching, Case Studies Decision Decision Decision Decision Decision - - - - - Making Making Making Making Making Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Tier 3: Collaborative Learning Collaborative Collaborative Collaborative Collaborative Collaborative Collaborative Collaborative Collaborative Collaborative Web Web Web Web Web Web Web Web Web WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS WORK WITH PEERS Shared Analysis, Shared Analysis, Shared Analysis, Shared Analysis, Shared Analysis, Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e Live Virtual Classroom, e - - - - - - - - - Labs, Collaborative Labs, Collaborative Labs, Collaborative Labs, Collaborative Labs, Collaborative Labs, Collaborative Labs, Collaborative Labs, Collaborative Labs, Collaborative Problem Problem Problem Problem Problem - - - - - Solving, Solving, Solving, Solving, Solving, Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming Sessions, Live Virtual Conferences, Virtual Teaming & Networked Learning & Networked Learning & Networked Learning & Networked Learning & Networked Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Tier 2: Interactive Learning Interactive Interactive Interactive Interactive Interactive Interactive Interactive Interactive Interactive CD CD CD CD CD CD CD CD CD - - - - - - - - - Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld Rom, Web, Handheld TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT TRY IT, PLAY IT, EXPERIENCE IT Procedural Procedural Procedural Procedural Procedural CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations CBT/WBT Modules, Simulations Understanding & Understanding & Understanding & Understanding & Understanding & Interactive Games Interactive Games Interactive Games Interactive Games Interactive Games Interactive Games Interactive Games Interactive Games Interactive Games Application/Practice Application/Practice Application/Practice Application/Practice Application/Practice CD-Rom, Web, Handheld, Satellite Tier 1: Performance Support and Reference Information Conceptual Conceptual Conceptual Conceptual Conceptual READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT READ IT, SEE IT, HEAR IT Awareness & Awareness & Awareness & Awareness & Awareness & Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On Web Lectures, Web Books, Job Aids, Videos, On - - - - - - - - - line line line line line line line line line Help, EPSS, Help, EPSS, Help, EPSS, Help, EPSS, Help, EPSS, Help, EPSS, Help, EPSS, Help, EPSS, Help, EPSS, QuickViews QuickViews QuickViews QuickViews QuickViews QuickViews QuickViews QuickViews QuickViews , , , , , , , , , Webcasts Webcasts Webcasts Webcasts Webcasts Webcasts Webcasts Webcasts Webcasts Understanding Understanding Understanding Understanding Understanding

7. Pervasive Learning Systems: Edvisor - Personalized, prescriptive learning paths • Customized for each learning initiative, business unit, specific IBM group and IBM individual • Enables high learning effectiveness for blended-design and e-Learning initiatives • Immerses the IBMer in the key issues, motivates and guides the learning, fosters on-line collaboration and organizational readiness to change • Next generation system will be integrated into the IBM Dynamic workplace A sophisticated, "online intelligent agent" - innovation in learner engagement and learning management IBM Confidential

8. Example: Role of the Manager@IBM Initiative Reinforce Commitments & Actions Engage Managers & Executives in the Dialogue ManagerJam In-Person Learning Labs Web Based Learning Sustaining the Dialogue Manager ActionNet • Extensive executive involvement • Cutting-edge blended design • Teams participate, set shared commitments • Personalized coaching for managers • Ongoing dialogue to drive true transformation

9. Measuring the Transformation & Business Results Transformation of the Role of the Manager@IBM Business Results Initiative • Changes in employee pulse survey results among both managers and employees • In-depth survey samples to measure linkages among climate, employee opinion and performance • Manager/participant reporting on their use of the concepts in changing their own behavior • In-depth (sample survey) business case reviews to assess the quantifiable return on these randomly chosen action plans • Improvement against the critical business performance objectives • Deployment plan and actuals by business and geography • Participation in web-based dialogues • Action plans committed and pursued • Enablers/disablers to success • Participant satisfaction and perceived value

10. Implementation Strategies and Practices • Suggestions • Begin with an understanding of what companies have actually implemented and what is possible. • Target a high learning priority and a particular population (such as Management Development). • Consider buying proven approaches and systems and outsourcing services. • Ensure that the learning initiative is fully integrated with other HR and IT strategies and practices. • See measurements as a strategic friend.