Thank you for attending our presentation. I am going to start by giving a brief review of our solution. Then, I will pass it on to Eric who will discuss our timeline. Finally, Debbie will end by discussing our evaluation, return on investment, and budget.
So, as a brief review, 6th Wave eLearning Solutions’ goal in partnering with you is to develop ethics training for your employees. The priorities in the RFP are modules on workplace conduct and appropriate use of company assets. 6th Wave's proposal is designed to help HCC's employees avoid making mistakes that can lead to penalties, a loss of share value, and a damaged corporate reputation. We see our solution as part of a larger library of relevant topics to be developed over time.
We are proposing a group-paced elearning program which is delivered remotely and will achieve effective and measureable outcomes on your two priority topics. The course will be delivered via a learning content management system. We use the training industry recognized standard of Philips Five Levels of Evaluation to determine effectiveness and the return on your investment. By following this model, we are confident in the validity and credibility of the metrics used to assess the results of the training. In little later in our discussion, Debbie will talk in-depth about our evaluation plan and return on investment. We follow a development plan that includes analysis, design, development and evaluation (Which is commonly refered to as ADDIE). The course will be developed using best practices in elearning and adult learning. At this point, I would like to turn it over to Eric who will discuss our timeline for this process.
Hi Scott… thanks again for the opportunity to share our proposal with you. I wanted to talk to about the evaluation plan in a bit more detail, because we feel this is a differentiator for 6 th Wave elearning solutions. As we have previously shared, we adhere to reliability and validity of the Phillips Model of evaluation for assessing and determining the ROI of our training solution. We are certified and recognized as industry experts in this system by the International Society for Training and Development. We evaluate our solutions in five phases:
The first phase is immediately upon course completion. During this evaluation phase, we measure learners perception of the training program just completed and new perceptions developed as a result of the training. This is typically done using online evaluation/testing tool. We use the data from this phase of the evaluation to determine changes that need to be made to the implementation of the program, and additional training of facilitators that may be required. This data is important going forward with the program because the participants learning experience influences their openness to learn… it is much like preparing the soil for planting seeds….
Slide 10 - Costs The total budget for our solution is $66,630, made up of two components: The first is professional services. According to an American Society for Training and Development study done in 2008, o The average billing rate for an ID with 10+ years experience is $100 - $150. o Our rates for these services are $75, $115, & $150. Most of the work is done in the $75 - $115 range. o By making this comparison, you can see that our rates are slightly below industry averages. We feel we can earn a fair return at these rates because we are a process driven organization that adheres to industry guidelines and standards of exemplary practice. In other words, we are efficient. * The second component of the price is an LCMS. o According to Brandon Hall (June, 2009), the average installed cost of a commercial system for under 500 learners is estimated at $31,221. Our price for a Joomla web interface wrapped around Moodle 1.9 is $32,000. o Furthermore, since our solution is open-source, it does not require ongoing licensing, update, and support costs. o By making this comparison, you can see that up front our solution will cost you about the same as a commercial installation, but it will save you money over time.
Slide 11 - ROI - The last piece of the puzzle Based on this analysis, we are happy to demonstrate the cost effectiveness of our solution by sharing our estimate of your return on investment. Based on the data you provided regarding the investment in business ethics training made in the past, when we worked the numbers, we see that year to year, you experience over 18% increase in costs per person to hold the training at your annual meeting. When we projected this cost out for the next three years, you would have spent over 100 thousand dollars to offer this training to just 75-100 people, once a year. With the solution we have proposed, you will be saving $37 thousand dollars in just three years, and we anticipate you offering this training to all your employees at all your locations, at no additional cost to you. All of this translates to a projected ROI for this project at 56% over three years. Break even on your investment will occur late in year two.
Because we operate in relationship and partnership with you to ensure your expectations are met; we are happy to demonstrate this solution is also cost effective. Based on the data you provided regarding the investment in business ethics training made in the past, when we worked the numbers, we see that year to year, you experience over 18% increase in costs per person to hold the training in the way it has been help. When we projected this cost out for the next three years, you would have spent over 100 thousand dollars to offer this training to just 75-100 people, once a year. With the solution we have proposed, you will be saving $37 thousand dollars in just three years, and we anticipate you offering this training to all your employees at all your locations, at no additional cost to you. In closing, Scott, we hope you sense our desire to partner with HCC. We are not just about developing one solution, but empowering HCC to own and maintain this solution into the future. We feel that adopting the solution we have proposed will bring critical ethics training to all employees directly, ensuring the consistency of training across the organization, and a greater positive impact on HCC in the future. The fact that this solution includes an LCMS will allow you to grow your catalog of courses in the most cost effective manner. In addition to our cost efficient and effective proposed training solution, we believe that we provide additional value by: Developing and delivering an Industry Ethics Report and Ethics Library Developing and delivering the HCC Policy on Asset Use Creating a training solution that demonstrates best practices in online adult education and learning techniques Implementing and training HCC staff on a new LCMS system, which will empower HCC to continue to grow your catalog of training offerings to all staff. Empowering HCC personnel to become certified trainers; and skilled at using the Philips Evaluation Model. So Scott, as we hope is obvious to you, we really look forward to growing our relationship with you and HCC through this first program development; we sincerely hope as HCC client representative you feel the same; we look forward to hearing your response to our proposal so we can get started! Do you have any questions for us on this proposal?
