E-Learning Enchilada To Go - Brief Article

Training & Development, Nov, 2000 by Donna J. Abernathy

From portals to vortals. Startups to one-stops. ASPs to ESPs (application service providers to education service providers). The Venn-diagram bullseye of e-learning providers, at least this year includes companies that claim to offer the whole enchilada of training courses, custom services, and tech tools. Dare I say it? An end-to-end, we're your-guys, don't-need-anyone-else total solution. And if all press releases that cross my desk are right, that's 95 percent of e-learning players.

Why all the hubbub? I'll spare you the John Chambers quote and gently remind you that elements are converging to open the floodgates of e-learning. We're talking broadband and interoperability standards, for starters.

One thing's for sure: It's a to-go industry that's ready for pickup. Pass the hot sauce.

The Big Three

According to online investment bank W.R. Hambrecht Company, the e-learning marketplace can be broken down into numerous segments, but the main three, at least for now, are content, technology, and services.

Content is the largest segment with a 66 percent market share, and it's growing at an annual rate of 74 percent, according to IDC estimates. The technology segment is expected to have an annual growth rate of 80 percent through 2003. However, services is the fastest growing segment, forging ahead at a whopping 111 percent growth clip.

According to a Hambrecht report, the global e-learning industry comprises about 5,000 players offering a multitude of services. And no competitor in the market accounts for more than 5 percent share. Yet. Consolidation is underway, so that could change by the time these words go to print.

Here's a look at the major segments and how some of the main players fit in, according to Hambrecht analyst Cornelia Weggen (note: some companies overlap sectors).

Content. Consists of publishers, licensers, and traditional classroom training companies. Examples: Element K, ExecuTrain, Learn2.com, Learning Tree International, and SkillSoft.

Services. Includes learning portals, communities, online certification and testing services, learning service providers, and online tutoring and mentoring services. Examples: Click2learn.com, Headlight.com, iGeneration, Powered, and THINQ.

Technology. Made up of software and hardware suppliers that create, deliver, and manage such e-learning technology as authoring and publishing tools, learning management systems, collaboration tools, and specialized e-learning hardware. Examples: Centra Software, Lotus LearningSpace, Pathlore, Saba Software, and TrainingServer.

So who will be the winners? According to Weggen, "First movers that manage to build a brand name quickly will likely be among the market leaders. To succeed, it will be key to combine a quality product with value-added services and a national presence. To secure sizable market share, competitors need to play on all three major fronts--content, technology, and services--and to deliver an integrated, complete e-learning solution. Such a strategy implies entering strong partnerships or acquiring complementary content, technology, and know-how."

Right now, the companies that come closest to the "whole enchilada," according to Weggen, are DigitalThink, KnowledgePlanet, Mentergy, Ninth House Network, Pensare, and SmartForce.

Would You Like Training With That?

You can now order training along with your online purchases at Staples.com. The office-supply giant is partnering with e-learning vendor Personable.com to provide more than 100 online courses--priced from $66 to $146 per learner--and covering such topics as Web design, marketing, JavaScript, and technology certification.

"Companies looking at high-volume, low-profit sales are looking at [e-learning] like a stapler or reams of paper; it's just one item in their inventory," says GartnerGroup analyst Clark Aldrich.

Next to enter the office-supply e-learning arena: OfficeMax, which will partner with Arthur Andersen's Virtual Learning Network.

Masters of Their Domains

Think the Internet is just for techies?

Think again.

Overall, nontechnical professionals are scooping up domain names faster than Webheads, according to Network Solutions. Following is its ranking of top first- time domain-name buyers, by occupation:

1. photographers

2. attorneys

3. real-estate agents

4. church officers and clergy

5. insurance agents

6. Internet service providers

7. restauranteurs

8. physicians and surgeons

9. software professionals

10. accountants.

Just consider the e-learning vortal possibilities.

UpData

Dot.com companies are rewarding their top-level executives with better salaries, improved stock options, and short-term incentives that have more in common with old-style firms according to PriceWaterhouseCoopers.