Using a GPS to
Maximize Your ROI
Rob Bernard, EdD
the Al Ain HCT Colleges
[email protected]
Caveat Emptor
My “thinking about thinking” has
led to some new thoughts since my
conference proposal….
GPS was Generating Practical Strategies
I’ve changed it to
Generalizing Business Strategies (GBS)
Who am I
Why Ratios?
• Ratio analysis is used to compare the
performance of one company with another.
• With them, a business can know with some
degree of accuracy, how it is doing.
• Like all formulas, the information you get out
of them is only as good as the information
you put into them.
More on Ratios
• We look at ratios over time to compare
ourselves to ourselves.
• Ratios help illuminate some aspect of
the firm’s performance. Anyone can
invent their own ratios to help them
know about the health of their venture.
More on Ratios
• We look at ratios over time to compare
ourselves to ourselves.
• Ratios help illuminate some aspect of
the firm’s performance. Anyone can
invent their own ratios to help them
know about the health of their venture.
More on Ratios
• We look at ratios over time to compare
ourselves to ourselves.
• Ratios help illuminate some aspect of
the firm’s performance. Anyone can
invent their own ratios to help them
know about the health of their
eLearning venture.
Liquidity Ratios
• Liquidity Ratios suggest how well a firm
is managing its working capital. These
ratios relate to short-term assets and
liabilities and are relevant to short-term
analysis.
Liquidity Ratios: Current Ratio
• Current ratios illustrate a measure of the
short-term safety of the firm. Current
assets can be turned into cash in a
short period of time and current
liabilities are those which might have to
be repaid at short notice.
Current Ratio
Current Assets
Current Ratio = ----------------------Current Liabilities
Current Ratios for eLearning
• Current ratios illustrate a measure of the
short-term safety of the firm.
• Current assets can be turned into cash
in a short period of time
• Current liabilities are those which might
have to be repaid at short notice.
Current Ratios for eLearning
• Current ratios illustrate a measure of the
short-term sanity of the teacher.
• Current assets can be turned into
teaching in a short period of time
• Current liabilities are those which might
be wasted if the project doesn’t get
finished in a short period of time.
Current Ratio
Current Assets
Current Ratio = ----------------------Current Liabilities
Current Ratio for eLearning
Effort
Current Ratio = ----------------------Readiness for Use
Liquidity Ratios: The Quick
Ratio (acid-test ratio)
Current Assets – Stock
Quick Ratio = -------------------------------Current Liabilities
Liquidity Ratios: The Quick
Ratio (acid-test ratio)
Effort – Investment by
Others
Quick Ratio = -------------------------------Readiness for Use
Gearing (Leverage) Ratios
• Show the relative amounts of capital
contributed by owners or shareholders
(equity) vs. cash or credit from lenders
(debt).
• A firm that is highly leveraged (a high
gearing ratio) has a high level of debt
and a relatively low level of equity.
Debt to Equity Ratio
Total Debt
Debt to Equity Ratio = -------------Equity
Debt to Equity Ratio
Total Cost of Laptop or “e” migration
=
---------------------------------------Benefits & Re-usable materials
ROI Return on Investment
• ROI - the return that is made on all of
the assets
ROI Return on Investment
• ROI - the benefits arising from expenditure of
the assets
Assets
Time
Help from Others
Energy
Your Experience
Creativity
Your Content
Knowledge
Technology
ROI Return on Investment
• ROI - the benefits arising from expenditure of
the assets
Benefits
New Learning
Life Skills
Autonomy &
Positive Motivation
Independent Learning
How Do We Get a Better
ROI?
• Remember when I noted:
Anyone can invent their own
ratios to help them know about
the health of their eLearning
venture?
How Do We Get a Better
ROI?
We change the way we do our
business…
…by changing the
formulas
How do we get a better ROI?
• We do this with a collaborative
eLearning process and system.
• We work together - as opposed to our
usual isolated, autonomous ways.
• Possibly with a Collaborative-Distributed
Learning System – an Enterprise
system.
Benefits of e-Collaboration via
a Distributed System
•
•
•
•
•
•
Redundancy decreases
Quality Increases
Access Increases
Depth of Knowledge Increases
Relevance and Timeliness Increase
Cooperation Increases
Our Old Debt to Equity Ratio
Total Cost of Laptop or “e” migration
=
---------------------------------------Benefits & Re-usable materials
Our New Debt to Equity Ratio
Total Cost of Laptop or “e” migration
=
---------------------------------------Collective-Distributed Learning System
A final thought…………
• There has been one other time where a
technology changed education in this
fundamental way – to the point where:
–
–
–
–
–
–
Redundancy decreased
Quality Increased
Access Increased
Depth of Knowledge Increased
Relevance and Timeliness Increased
Cooperation Increased
A final thought…………
• There has been one other time where a
technology changed education in this
fundamental way – to the point where:
–
–
–
–
–
–
Redundancy decreased
Quality Increased
Access Increased
Depth of Knowledge Increased
Relevance and Timeliness Increased
Cooperation Increased
A final thought…………
A final thought…………
Redundancy decreased
Quality Increased
Access Increased
Depth of Knowledge
Increased
Relevance and Timeliness
Increased
Cooperation Increased
[email protected]