{"id":61201,"date":"2022-04-27T18:18:17","date_gmt":"2022-04-27T18:18:17","guid":{"rendered":"https:\/\/explore.local\/2022\/04\/27\/how-to-build-a-business-case-for-learning-technology\/"},"modified":"2025-04-04T19:35:09","modified_gmt":"2025-04-04T19:35:09","slug":"how-to-build-a-business-case-for-learning-technology","status":"publish","type":"post","link":"https:\/\/degreed.com\/experience\/blog\/how-to-build-a-business-case-for-learning-technology\/","title":{"rendered":"How to Build a Business Case for Learning and Talent Technology"},"content":{"rendered":"\n

You\u2019ve read the case studies<\/a>, done the calculations, set goals, and identified the best learning and talent development platform for your organization. Perhaps you\u2019ve even started strategizing how your chosen vendor will integrate with your existing learning and talent technology ecosystem.\u00a0<\/p>\n\n\n\n

But that solution will never be implemented if you\u2019re unable to gain buy-in from the executive team and key stakeholders \u2014 a feat that\u2019s hardly straightforward or simple. <\/p>\n\n\n\n

Traditional learning measurement tools, like Kirkpatrick\u2019s training evaluation model or Brinkerhoff\u2019s success case method, don\u2019t work for technology investments. They treat learning like an event. They show impact by comparing behavior (or other metrics) before and after live or virtual classes, online courses, or longer-term development programs. <\/p>\n\n\n\n

More and more, learning is happening outside formal training<\/a>. And there isn\u2019t necessarily a \u201cbefore and after\u201d with learning technology. It\u2019s always on<\/a>.<\/p>\n\n\n\n

Meanwhile, IT and finance executives already have a well-established toolkit for evaluating technology investments. It includes return on investment<\/a> (ROI), of course. But it also includes some metrics you might not know, like payback period<\/a>, total cost of ownership<\/a> (TCO), net present value<\/a> (NPV), and internal rate of return<\/a> (IRR). Just like the learning metrics<\/a>, each has specific uses as well as limitations. TCO, for example, provides a comprehensive look at costs, but it ignores any benefits.<\/p>\n\n\n\n

Technology and business leaders don\u2019t just look at hard costs and benefits, either. They build a more holistic picture of how technologies might help create value; one that evaluates qualitative factors along with quantitative ones. Forrester\u2019s Total Economic Impact\u2122<\/a> methodology, for example, starts with a rigorous cost and benefit analysis. Then it explores the potential impact on operating risks as well as future technology and business flexibility. Those things are harder to quantify but just as essential to understand, particularly when building a business case for learning technology.<\/p>\n\n\n\n

There is no standard formula for building business cases, though. Every organization has different goals, unique challenges, and preferred methods for assessing investments. So we cannot give you a magical, do-it-yourself calculator (we tried \u2014 really). However, we can offer a simple, practical framework for identifying the various ways a new learning system or platform might help you generate value for your business. You can then feed those inputs into whatever business case format your organization uses.<\/p>\n\n\n\n

\"There<\/figure>\n\n\n\n

Map Impact to Value<\/h2>\n\n\n\n

Let\u2019s keep this simple. There are really only four things anyone can do to create business value: grow revenues, expand profit margins, optimize the efficiency of assets, or enhance investors\u2019 expectations for the future. That\u2019s it.<\/p>\n\n\n\n

To build a business case for learning technology, you\u2019ll need to link the expected benefits, costs, efficiencies, risks, or opportunities to those four value drivers in order to show how the investment will make an impact. That\u2019s the simple part. But it does take some work to identify those benefits, costs, efficiencies, risks, and opportunities. <\/p>\n\n\n\n

To help you do that, we\u2019ve deconstructed and distilled several established models, including ones from both IT (e.g. Forrester\u2019s Total Economic Impact\u2122 model) and finance (e.g. Deloitte\u2019s Enterprise Value Map\u2122), along with dozens of real-life business cases from our work with many of the world\u2019s most innovative companies.<\/p>\n\n\n\n

The result is this straightforward set of questions already mapped to the four key value drivers:<\/p>\n\n\n\n

\"the<\/figure>\n\n\n\n

Identify the Elements of Impact<\/h2>\n\n\n\n

The best learning and talent development platforms will touch all aspects of an organization, impacting employees, processes, and even contingent workers at every level. It\u2019s difficult to determine how to compile its different areas of value, but tying it back to these four pillars can provide the initial framework to start building your case.<\/p>\n\n\n\n

Want to Learn More? <\/h2>\n\n\n\n

Got more questions on how to navigate the learning tech landscape? Download The Buyer\u2019s Guide to Learning and Talent Technology<\/a> today. <\/p>\n\n\n\n

Or contact a Degreed representative<\/a>, we’ve got answers. <\/p>\n\n\n\n

\"The<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"

There are many factors that go into building a business case for learning technology. Overwhelmed by where to begin? Use our flowchart for guidance.<\/p>\n","protected":false},"author":56,"featured_media":61206,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[572],"tags":[546],"post_folder":[],"class_list":["post-61201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-innovation-in-learning","tag-learning-technology"],"acf":[],"yoast_head":"\nBuild a Business Case for Learning Technology | Flowchart - Degreed<\/title>\n<meta name=\"description\" content=\"There are many factors that go into building a business case for learning technology. Overwhelmed by where to begin? 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