LMS shopping: In lieu of the usual software roundup, we offer an overview of learning management systems to help demystify this relatively new technology on the market - Software Roundup

Training & Development, Nov, 2001 by Allyson Schafter

Learning management systems haven't caused any life-threatening breakdowns that we know of, mental or system-wide, but they have been known to cause their fair share of heartache. The inconsistencies in terms just add to the confusion. LMSs have different definitions depending on who you ask.

Brandon-hall.com defines an LMS as "software that automates the administration of training events. An LMS registers users, tracks courses in a catalogue, and records data from learners; it also provides reports to management. An LMS is typically designed to handle courses by multiple ple publishers and multiple providers."

The Forum Corporation believes that a true LMS is a system that manages learning, which includes not only the technology (the software), but also the processes, tools, and expertise that enable companies to ensure that

* the right learning is available to the right people at the right time and in the right medium

* business processes support the use of learning management tools

* the organizational changes that are required to make the software implementation successful are analyzed, designed, and facilitated

* the data the software collects is meaningful, useful, and available to the right people in the right format.

LMSs "allow a company to leverage the collective knowledge and skills of its workforce more strategically," according to WR Hambrecht Co's report "2001 Outlook for the Learning Management System Market." "In addition, an LMS provides the foundation to improve the speed and effectiveness of the training process, ensures that an enterprise is in compliance with relevant industry education standards, enhances the efficiency of a company's supply chain through better product knowledge, and improves communication among and retention of employees during a business transformation process." The report also says, "The emerging view within the corporate training community seems to be that learning management is a critical tool in the management and development of human capital, and, in some cases, a mechanism for elevating the status of the training function within the corporate enterprise."

Gartner calculates that about 60 percent of corporations will have an LMS platform deployed by 2003. WR Hambrecht Co predicts that LMS platforms will become as "pervasive in corporate America as CRM and ERP systems are today." Because LMSs are becoming instrumental in the advancement of workplace learning and training, businesses have to find a way to determine which one is right for them. That's where the real challenge lies.

The LMS market

Selecting an LMS isn't something to be taken lightly. In all likelihood, the task will be lengthy, intricate, and costly. Considering the fact that most analysts agree that the life span of a typical LMS is only two years, it's crucial to be able to demonstrate the ROI. WR Hambrecht Co concludes that purchasing enterprise e-learning infrastructure "involves a long decision-making process, extensive custom programming, and time-consuming installations. Our conversations with buyers of LMS products indicate that the high cost of switching LMSs makes customers more loyal even when they're dissatisfied with certain elements." It's best to male every effort to find the right system the first time around--easier said than done.

Gartner cites these trends that are contributing to the complexity of the LMS market:

* The form of learning programs is changing quickly. Learning content, having started with instructor-led training in classrooms and having evolved through models of self-paced and virtual classroom replications, is increasingly taking the form of just-in-rime mini courses, multimedia simulations, and knowledge management.

* The learning program's audience has expanded from workgroups and divisions to enterprises and customers, and most recently, to potential customers and entire supply chains.

* People's expectations of LMSs have grown from managing registration and record keeping to course launching and detailed tracking, including skills management, a high degree of customization, the option of Application Service Provider models, and prenegotiated content from leading and exclusive providers.

* Large LMS vendors are increasingly looking to earn more than just licensing fees. The leading suppliers are moving toward new initiatives, including ASPs and marketplaces, to maximize continuous revenue and transaction fees.

* The entire e-learning market is experiencing consolidation.

A subsequent report by Gartner explains, "Those shifts have contributed to the marketplace's volatility. There is no easy high end; the more expensive vendors do not provide a safe haven.... To make [purchasing] decisions more difficult, vendors' descriptions make it hard to differentiate which features come fully implemented and which have to be built on a custom basis."

Further adding to the challenge of selecting an LMS is the abundance and wide variety of applications and functions to choose from. In the slowing U.S. economy, there's even more pressure on companies to ensure that they get the most for their dollar and that all of their requirements are met.