As the e-learning market has expanded, so have the number of learning management systems. Here's a look at the latest trends among LMS offerings: An excerpt from Learning Management Systems 2001: How to Choose the Right System for Your Organization.

Among best practice organizations, what's emerging is the value that learning management systems bring to business-management issues. Used to its full potential, an LMS provides a decision-support system that an organization can use to execute its business strategy and manage organizational change by customizing content, mapping knowledge and competencies to specific business objectives, tracking learning progress, and increasing employee and manager accountability for learning and performance results.

The proliferation of learning management systems in recent years has caused organizations to take a harder look at how they can be used to deliver business value. In terms of their administrative efficiency and ability to closely monitor training activities and costs, learning management systems have already delivered value to organizations that have implemented them.

For this report, brandon-hall.com researched the explosive growth of new learning management systems. Data collection was extensive, contacting 112 suppliers of LMS systems.

Interesting trends appear when comparing the data collected for this report to data contained in our 1997 report, "Training Management Systems: How to Choose a Program Your Company Can Live With." Since that first report, learning management systems have improved in functionality, ease of use, integration, and compliance to industry standards.

The number of learning management systems evaluated has grown significantly. This report reviews 59 systems versus 27 systems in 1997. Only 12 systems appear in both reports, but 48 percent of the products have been on the market since 1997. The majority of products now on the market are created by small to medium-sized companies comprising fewer than 100 employees.

Key findings

Browser-based applications. The recent report reveals that most learning management systems have evolved from client-server-based to Web-based applications. Many of the new systems are 100 percent Webcentric applications, using Java, server applets, and so forth. Eighty-four percent of systems now allow administrators and learners to access performance data and reports using only a browser. In addition, 27 percent allow administrators to choose either a browser or a local-client application on the hard drive to access data and reports.

Authoring tools. A large number of systems, 48 percent, now offer built-in authoring tools, which usually consist of basic, template-driven applications targeted toward subject matter experts. In a majority of the systems, the authoring tools are browser-based. Systems lacking built-in authoring capabilities are designed to use such standard, off-the-shelf authoring tools as Dreamweaver, Flash, Authorware, and ToolBook.

Assessment tools. In addition to content-authoring tools, 73 percent of products now offer built-in tools to create tests and assessments. The data those tools produce tends to be more system-compatible than data generated by third-party applications. Likewise, 45 percent of tools offer skill-gap analysis, illustrating an increasing trend toward using learning management systems to monitor overall performance.

Blended learning. Suppliers are progressively realizing the need for a blended approach to e-learning and classroom instruction. Sixty-eight percent (38 systems) offer both classroom and e-learning management functions, including such features as classroom scheduling, enrollment, and wait listing.

Compliance to industry standards. Support of e-learning standards has become an important effort among LMS suppliers. Whereas only 41 percent of products supported AICC standards in 1997, 52 percent presently do. Seventy-five percent report that they will support AICC within the year. Although IMS metadata tagging specifications didn't exist in 1997, 34 percent currently support the standard and 59 percent say they will support the standard within the year.

ERP and HRIS connectivity. In 1997, customers were asking for integration with ERP systems. Typical integration was done by brute force at the database level, making the ERP database talk to the LMS database. While this is still the standard approach to connectivity, 41 percent of products currently feature ERP integration tools, including database mapping utilities, automated update routines, and scripts for clients to create their own interfaces to the ERP application.

Larger implementations. The average implementation size in this report is 116,000 learners as opposed to 39,726 learners in 1997. However, some suppliers may have misinterpreted the question to mean "total number of all learners using the system across all implementations." The same is true for 1997 statistics. That said, suppliers report that the average number of learners in their largest individual implementations is approximately 116,000 learners, compared with 39,726 learners in 1997. (Note: The median is 48,000 learners this year and 20,000 learners in 1997.)

Increasing costs. On a less positive note, data shows that the cost of learning management systems is increasing dramatically. Although detail in the 1997 report isn't sufficient to prepare an exact comparison, a solution for 8000 learners over a five-year period cost approximately US$80,000 to US$100,000. The average cost of a learning management system for a similar number of users and duration is currently US$550,000.

The reason for the dramatic increase is due in part to the fact that many suppliers have switched from an up-front licensing fee model to a per learner-per month subscription model. Using that model, the costs of a learning management system are low in the beginning but add up over time. Suppliers report that the per learner-per month billing method is popular with clients, and 86 percent of suppliers offer their LMS as an hosted Application Service Provider. Most suppliers argue that an ASP solution is quick and easy; 7 percent of suppliers report that they offer only an ASP solution and wouldn't support their LMS application on a client's server. More to the point, the ASP model secures a long-term, recurring revenue relationship that's proving more lucrative for suppliers.

Bottom line

When you're considering the purchase of a learning management system, it's important to obtain as much information as possible. It's a large investment with long-term commitment. Following is a list of questions to consider.

• Are there any plans for emerging technologies?
• How is content replicated?
  
• Can non-programmers make changes?
  
• Can it launch and track reusable learning objects, or assemble them into courses for specified training?
  
• Can Microsoft Office tools be used to create content and learning programs?
  
• Can data be converted from an existing system?
  
• Can the system support multiple browsers and security settings?
  
• How much integration work is required?
  
• How long will it take to get up and running?
  
• What are hosting and access costs?
  
• Are there fees for customization?
  
• Does the company allow tests of software before purchase?
  
• Is the software compliant with industry standards?

The LMS supplier landscape changes quickly according to client needs. A clear identification of your company's business and system requirements will determine your functionality priorities.

Choosing the right system seems to be a roaring lion to many trainers, but it doesn't have to be. As long as you do your homework and make sure that your business requirements align with an LMS, you can tame the selection process.

 

Learning Management Systems AboveLearning LearningCenter Abovelearning Corporation www.abovelearning.com Active Learner Resource Development Corporation www.resourcedev.com AtrainES Syntrio www.syntrio.com Certification Impact Channelwave Software www.channelwave.com Conductor - Training Administration Software Sage Corporation www.SageIsland.com, www.Conductit.com CorporateHorizon/ HorizonCentral Boniva Software www.boniva.com DigitalThink DigitalThink www.digitalthink.com Docent Enterprise Docent www.docent.com Edapt/Course Authoring Tools System (CATS) Tcert www.tcert.com Edge Interactive Edge Interactive www.edgeinteractive.com Education Director Results Direct www.resultsdirect.com Elementk.Com Element K www.elementkpress.com Enterprise Learning Management Services Edcor www.edcor.com ETrax Learning Management System Integrated Performance Systems www.ips-inc.com FlexTraining OnLine Development www.FlexTraining.com Geo Learning Management System GeoLearning.com www.geolearning.com gForce Central gForce Systems www.gforce.com GoTrain.net GoTrain.net, LLC www.gotrain.net Headlight LMS Headlight www.headlight.com How To Master Learning Management System InfoSource www.howtomaster.com icCampus icGlobal.com www.icglobal.com ILMS ISOPIA Interactive Network www.isopia.com Infotec Learning Manager Infotec Technology SolutionsDivision www.Infotec.com Ingenium Click2learn.com www.click2learn.com IntraLearn IntraLearn Software Corporation www.intralearn.com IntranetU ATC www.profitfromlearning.com KnowBase KnowBase Networks www.knowbasenetworks.com KP2000 KnowledgePlanet www.knowledgeplanet.com FlexTraining Software OnLine Development www.FlexTraining.com Intellinex Learning Development System Intellinex LLC www.intellinex.com Learning Community eSocrates.com www.esocrates.com LearningVista GlobalLearningSystems www.globallearningsystems.com Librix Performance Management System LIBRIX Learning www.librix.com Maaya Maaya www.maaya.com Merant Training Solutions MERANT www.merant.com/university Manager’s Edge Mentergy www.mentergy.com MindLever MindLever.com www.mindlever.com OnTrack For Training DKSystems www.dksystems.com Pathlore Learning Management System Pathlore www.pathlore.com PC Compliance RMS Systems, Inc www.rmssystems.com Peer3 Administrator Peer3 www.peer3.com Pinnacle Learning Manager LearnFrame www.learnframe.com Plateau Enterprise Learning Management System Plateau Systems, Ltd www.plateausystems.com PROFIS Interlynx Multimedia www.profisWeb.com Quest System Custom Solutions Knowledge Anywhere www.knowledgeanywhere.com Saba Learning Enterprise SABA www.saba.com SIGAL Technomedia Training www.technomedia.ca Strategic Interactive Strategic Interactive www.siWeb.com TBK Tracker Platte Canyon Multimedia Software Corporation www.plattecanyon.com Teamscape Learning Portal Teamscape www.teamscape.com TEDS TEDS www.teds.com The Learning Manager Worldwide Interactive Network www.tlmcorp.com, www.w-win.com Thinktanx Viviance www.viviance.com TopClass WBT Systems www.wbtsystems.com Total Knowledge Management System Generation21 www.gen21.com TrainingDepartment.com TrainingDepartment.com www.trainingdepartment.com TrainingOffice Novasys Corporation www.trainingoffice.com Training Partner Geometrix Data Systems Inc www.trainingpartner2000.com THINQ TrainingServer LMS THINQ Learning Solutions www.thinq.com Training Wizard Gyrus Systems www.gyrus.com Traccess TTG www.built2learn.com/Products/Traccess.htm VCampus VCampus www.vcampus.com Virtual Training Assistant RISC www.risc-inc.com WBT Manager Integrity eLearning www.ielearning.com WebMentor Enterprise Server Avilar Technologies www.avilar.com WebTrain WebTrain Services Pty Ltd www.Webtrain.com.au YnotManage YnotLearn www.ynotlearn.com

Published: January 2001