Nucleus Research analysts independently examined IBM's Basic Blue management training e-learning initiative and found the company achieved a 2284% return on its investment (ROI). Direct reductions in travel expenses along with reductions in other training costs delivered rapid returns. In addition, by using the Mindspan e-learning technology, IBM was able to create a richer learning environment when compared to traditional classroom settings. Advanced features such as simulation modules, class collaboration, and electronic coaching translated into both greater content retention by managers and a reduction in the total time needed for managers to complete class modules.

ROI Profile: IBM Mindspan Solutions

The full IBM Basic Blue ROI case study is available at no charge from the Nucleus Research Web site (NucleusResearch.com).

"The Basic Blue e-learning initiative represents an excellent example of the dramatic benefits to the corporate bottom line that can be achieved when using distance learning technology," said Ian Campbell, vice president of research for Nucleus Research. "IBM's approach of blending both e-learning modules and traditional classes allowed the company to take advantage of the best that both mediums had to offer. Nucleus found IBM was ultimately able to provide a rich and flexible learning environment for its worldwide management team that both decreased costs and increased the quality and retention of the class content."

"This program is a powerful innovation on many levels", said Katie Sterrett, Basic Blue team member, "and we are very pleased that Nucleus Research was able to quantify the bottom-line results and verify the impact for our company".

"E-learning is a technology area that often has both first-tier benefits, such as reduced travel costs, and second-tier benefits, such as increased employee performance that directly impacts profitability," said Rebecca Wettemann, research director for Nucleus Research. "Calculating the ROI enables companies to identify goals and track their progress in both tiers of benefits."