Here are a few highlights from the Learning Circuits 2006 Survey of Learning Management Systems that outline changes from 2005 to 2006:
- "A larger number of respondents are opting to host their LMS rather than buy or build, increasing from 11.9 percent of respondents in 2005 to 17.1 percent in 2006."
- "How organizations are configuring their LMSs saw only incremental change, with the largest portion of respondents opting for andLMS only rather than an learning content management system (LCMS) or LMS/LCMS combo."
- "In 2006, reporting once again ranked Number 1 as the most valuable feature of an LMS, followed closely by assessment and testing. This was a significant change over 2005 results in which compliance tracking ranked Number 2, decreasing some 5 percent in 2006. Also moving lower in the ranks was the importance of standards, dropping from 18.1 percent to 12 percent. The only substantial increase among valuable features is content management capabilities, which stepped up from 29.9 percent to 36.1 percent."
- "Although
the majority of respondents (67.7 percent) still state that centralized
management of training is their main reason for implementing an LMS,
this number decreased considerably from 2005 when the number was 78.6
percent. Other reasons for implementing an LMS, such as measuring
training usage or tracking regulatory compliance, continue to lag
behind."
- "In
2006, respondents claim that executing customization requirements was
the biggest challenge to implementing an LMS (42 percent), followed
closely by system administration (38 percent). This is a shift from
2005, when content integration was the top challenge. Notably, vendor
management and vendor selection saw significant increases in 2006."
- "Most
notable, purchasers who were very satisfied with their LMS dropped
considerably in 2006, decreasing from 20.3 percent o 14.6 percent.
Likewise, purchasers who were very unsatisfied more than doubled from
3.1 percent in 2005 to 7.9 in 2006."
- In the next 12 months....."one-fifth of the respondents state that their organizations intend to purchase a new system."
My comments in regards to the findings above are as follows:
1) This is probably the result of a number of factors such as organizational bandwidth, costs, and many other reasons why companies outsource various parts of their business. [Think -- Delta's recent move to outsource its computer mainframe needs to IBM], etc.
Its like most people when they learn how to ski or snowboard, they go
to the mountain, and rent the equipment they need, take a lesson or two
to see if they might like it. And even if they might like it and go quite a bit during the winter months or even go on ski vacations all over the world, they may
never buy out right ski or snow board equipment because its not worth
spending the money when renting the latest and greatest equipment works out better for them in the long run.
In addition, e-Learning and the LMS industry is maturing and so is the experience set of training managers, human resource managers, CEO's, CFO's, etc in regards to the various business exigencies associated with learning management systems, but more on this later.
2) There is also a variety of reasons for this, such as many LMSs have evolved to incorpate a host of LCMS features that give the company the functionality it needs. From a business perspective, LCMSs and the need for them can mean a pretty large business structure that has to be incorporated around it. Which means big $$$$$, big maintenance and support costs, etc. And of course, companies do not really want to make that investment if they do not have to.
Also, its one thing to track and manage learners to derive an ROI on training. Most companies want to do that and see a need for it. But, how do you monetize the value of learning content in a corporate training context and then relate it back to training ROI--sure, it can be done, but this is way over the heads of most folks.
Will companies see value in managing learning content with an LCMS, sure, some do, that is why there is an LCMS market, but most companies are just trying get their heads around tracking and managing learners. As stated earlier, e-Learning is maturing. More medium and small sized companies are purchasing lms's so these companies just are not at that point in their organizational learning curve around e-Learning.
3) No surprise there because of what I just mentioned in the previous paragraph.
4) The whole question as to whether to centralize or not is more about corporate or organizational drivers/philosophy, which changes as a result of many factors such as company leadership, resources, geography, etc.
I think the e-Learning pundits and analysts make more out of this than necessary. I can tell you that we have some clients that use our LMS and have other areas of their corporation or partners that use a different LMS. And it works fine for them and they do not care to change it and want it that way for some good business reasons. And I would bet that some of my brethren in the industry have experienced the same types of thing with their customers as well.
And sure, we customize so the two LMS's can interchange data, but sticking with the point, we have some corporations that use our LMS exclusively to centralize all of their training, again it just depends.
6 & 7) Back in my response to point (1) I stated that the experience set of training managers, human resource managers, CEO's, CFO's is developing and changing. This comes out of a natural progression that I have talked about frequently here on the Boggs e-Learning Chronicle in terms of the organizational learning and use of e-Learning. As a company's e-Learning or training program evolves, it has different needs and objectives than it did when it first got started.
Its only logical that companies would be dissatisfied with their LMS's and then be looking for a new one because their needs have changed. As well, most of the growth in the learning management systems industry has come from small and medium sized companies in the last few years who are not like the Fortune 500 companies of this world that have alot of organizational experience with e-Learning.
Small and medium sized companies are more fresh in the battle of balancing company objectives with learners needs. But when I say learner needs here -- I mean the learner being certified on the competencies needed to perform the job -- not personal learning needs.
I do not want to get into some e-Learning 2.o discussion in regards to learner satisfaction. In a corporate training context, what employee is EVER going to be absolutely thrilled and delighted with having to maintain a certification on a specific skill set which requires them to put more time in, or being tracked and monitored, tested, assessed, -- none that I can think of-- work is work, plain and simple.
Should the system be user friendly, sure, but it only matters to a point, because at the end of the day, no matter how nice you make it or how supposedly easy it is to do it - or how many other personal learning needs an organization may attempt to meet-- the matter being learned is related to their job performance, so its still work.
Dave Boggs
SyberWorks