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  • June 2017

    RESEARCH SPOTLIGHT

    EXTENDED ENTERPRISE LEARNING

    A Profit Driver for Leading Organizations

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 2

    Table of CONTENTS

    About the Study 3 Extended Learning is “In” 4 Benefits of Extended Enterprise Learning 5 Frequency and Investment 6 Extended Learning Effectiveness 7 Effectiveness is Tied to Outcomes 8 Delivering Extended Learning 9 The Impact of Technology 10 Delivery of Extended Enterprise Learning 11 Key Takeaways 12 Research Methodology 13 About Cornerstone OnDemand 14 About Brandon Hall Group 15

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 3

    About the STUDY

    71%

    23%

    6%

    US/Canada

    EMEA

    APAC

    26 Industries

    23 Countries

    206 SMB, Enterprise, and Large Enterprise

    31% 21% 48% below 500 employees

    500 - 5,000 employees

    5,000+ employees

    23%

    15%

    12%

    Executives and other senior business leaders

    HR and talent leaders

    Individual contributors

    Global Responses

    50% Learning Leaders

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 4

    Extended Learning is “IN”

    In a business world that’s increasingly social, mobile, and collaborative, corporate learning is changing in many ways. A growing trend in recent studies is extended enterprise learning, which is a program or initiative to educate audiences outside of the headquarters or specific locations of your organization. Extended learning can include remote or distributed employees as well as non-employees, such as customers, channel partners, distributors, value-add resellers, manufacturers, or franchisees.

    Organizations are increasingly extending their learning: • More than half (54%) of learning delivered by organizations goes to

    non-employees and remote and distributed employees.

    The increase in extended learning is paying dividends in many ways: • 40% of organizations are generating revenue through extended learning –

    an 18% increase from 2 years ago. • Almost one-third of organizations are recouping more than half of their

    Learning Management System costs.

    Learning Audiences

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 5

    BENEFITS of Extended Enterprise Learning

    Extended enterprise learning often involves direct outreach to customers, which can have a huge impact on customer retention and positive net promoter scores, and is also linked to sales outcomes.

    Reported Business Benefits of Extended Enterprise Learning (Percentage of respondents realizing benefits)

    69% Increases awareness of products/services

    67% Reduces training

    costs

    65% Improves customer

    relations

    65% Maximizes client

    retention

    61% Increases sales

    59% Reduces training

    travel time

    55% Meets compliance

    requirements

    53% Helps meet/exceed

    corporate objectives

    51% Increases employee

    engagement

    35% Reduces client

    support interactions

    29% Reduces employee

    turnover

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 6

    FREQUENCY and INVESTMENT

    Stakeholders are leveraging valuable extended enterprise training quite frequently. At least one-quarter of customers, sales teams, and field support teams access learning daily or weekly. At least 48% of those groups access learning at least monthly.

    Frequency of Extended Learning Usage by Audience Type (Learning accessed at least monthly)

    The investment level is strong, too. More than half of organizations (55%) in our research said they spend more than 10% of their L&D budget on extended learning, and 22% of respondents said they spend more than half of their learning budget on extended learning.

    Learning Budget Spent on Extended Enterprise

    (% of budget)

    (% o

    f r es

    po nd

    en ts

    )

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 7

    Brandon Hall Group research shows that organizations believe extended enterprise learning is is effective at

    meeting business objectives.

    Extended Learning EFFECTIVENESS

    43% says traditional learning is effective /very effective

    56% says extended

    learning is effective /very effective

    2017 Brandon Hall Group Extended Learning Study and 2016-17 Training Benchmarking Study (n=311)

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 8

    Effectiveness is Tied to OUTCOMES

    Percentage of Annual LMS Costs Covered via Extended Learning Revenues

    48%

    16%

    22%

    14%

    Sell by the course or content piece

    Sell by course/ content bundles

    Included in price of other products delivered

    Subscription model

    When organizations couple the ROI from meeting business objectives with the ability to recoup LMS costs by charging for content, extended enterprise learning can be a highly profitable initiative.

    Methods of Selling Learning

    So why do organizations consider extended learning more effective than other types of learning?

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 9

    DELIVERING Extended Learning

    Despite the fact that we are talking about delivering learning to people outside the “four walls” of the organization, most extended learning still occurs in person. 80% of companies are pulling people from outside the organization into classrooms for training. Since several Brandon Hall Group research studies show that more informal types of learning are just – or more – effective as classroom training, companies have an opportunity to expand their extended enterprise learning by exploring more digital methods, such as simulations, videos and mobile.

    Extended Learning Delivery Methods

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 10

    The IMPACT of Technology

    Regardless of how training is delivered, the importance of technology cannot be overstated. It is critical for companies to measure the outcomes of learning outside of the organization, especially since it may be more difficult to track than internal training. So, not surprisingly, reporting and analytics is considered – by far – the most important technology component related to extended learning. The second most important feature of extended enterprise technology is mobile capabilities because the very nature of extended learning requires that it be available on-the-go.

    Most Important Characteristics of Extended Enterprise Technology

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 11

    DELIVERY of Extended Enterprise Learning

    Even though in-person training is common, an LMS can be used to manage the curriculum, instructors, learners, and scheduling. Three-quarters of companies delivering extended enterprise learning use an LMS, and 43% use the corporate website. Ecommerce functionality can be important to those using an LMS or company website and looking to recoup their investment.

    Systems Used to Deliver Extended Enterprise Learning

    34% Social/collaboration

    platform

    76% Learning Management

    System

    43% Website

    29% SharePoint / content management system

    27% In-house learning system

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 12

    KEY Takeaways

    Not all organizations will find themselves with a need to deliver learning to external audiences, but the number of companies that do is consistently growing. The learning ecosystem is far larger than most companies realize, transcending employees to include resellers, manufacturers, franchisees, customers, and even the public at large. Some keys to success include:

    • Build the Business Case. Do you have a customer pool that accesses the help desk too often? Would your supply chain run smoother if your manufacturers and/or distributors knew more about your products? Extending learning can help. Where possible, scope out the impact of a more educated ecosystem on customer support costs, increased sales, market awareness, and customer or partner satisfaction.

    • Select the Right Technology. Not every LMS is built to handle this type of learning. Look for platforms with robust reporting, mobile capabilities, eCommerce, and assessment tools.

    • Be Strategic with Revenue Goals. Companies need to determine whether they are going to charge for the learning they deliver and, if so, how they will do it.

    • Track and Measure. Once we begin talking about dispersed, disparate learning audiences, tracking becomes even more critical. Have a process and a set of KPIs before rolling out extended enterprise learning.

  • © 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 13

    Research Methodology