Question: Prodo Inc., a document distribution hub in Jefferson County, KY, conducted a need analysis for training in the face of a company-wide adoption of Windows
Prodo Inc., a document distribution hub in Jefferson County, KY, conducted a need analysis for training in the face of a company-wide adoption of Windows 10. The analysis showed that, without training, productivity would decrease by 25% for one quarter. With training on the new Windows interface, productivity would drop by only 5% for the quarter. The value of productivity for a quarter is $500,000. Therefore, the value of the training was the difference between the loss if no training occurred, versus the loss if the training was done. The company-wide training program, purchased from a third party vendor, was priced at $20,000. Calculate the ROI. Show your work. Then give your recommendation as to whether Prodo should proceed with the upgrade, based on your calculation. The purpose of this assignment is to verify your understanding of ROI and your ability to calculate ROI from a business scenario.
Results, in Kirkpatrick's model, means business results. One of the most common measures of business results is ROI, return on investment. The lecture mentioned the formula for return on investment. To review, it is:
ROI=Value of training-cost of training/cost of training *100%
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