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Learning on Demand
The Future of eLearning Content
October 1999

Authors: Jørgen Andre Nilsen, Eilif Trondsen
Contributors:  Rob Edmonds
Kermit M. Patton
Greger V. Teigre
Kent Vickery
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About This Report
Table of Contents
  Download the full report (pdf)


About This Report

The technologies and eager market that have created a boom in electronic commerce (eCommerce) are filtering into the once-staid learning industry. In the next five years, technology-enabled learning, or eLearning, could sweep through the industry, creating a chain reaction of change that affects the way people learn at work, at home, and at school. However, eLearning can reach its potential only if an ample amount of high-quality learning content is available at the right price--and if users see clear results. So far, most content follows traditional course formats, but the industry is entering a period of experimentation as content providers try to zero in on the approaches that best fit the new Internet-based technologies and learners' needs. Clearly, customization to individual differences in learning and to company-specific training needs will be critical in the new world of eLearning content. Wisdom in selecting the right delivery channel and innovative ways of incorporating interactivity and multimedia capabilities will also separate the winners from the losers.

We welcome feedback about this report and the program, and we encourage you to contact us with any questions or suggestions. For more information, contact Eilif Trondsen, director, Learning-on-Demand (LoD) Program; telephone: +1 650 859 2665; fax: +1 650 859 5444; e-mail: etrondsen@sric-bi.com. We appreciate your support of our program and look forward to working closely with you as a Learning-on-Demand sponsor.



Table of Contents

Executive Summary 1
  Market Forces in eLearning Content 1
  Changes in Learning Content 1
  The Challenges 2
  Signs of the Future 4
The Emerging Content Industry 5
  The Arrival of eLearning 5
  Key Drivers and Developments 10
Changes in Learning Content 14
  Content Domains 15
    Hard Skills: The Primary Market for eLearning Content 15
    Soft Skills: Strong Growth Ahead 17
  New Learning Methods 19
    Formal Learning 19
    Informal Learning 21
  Content Packaging: Right-Size Learning Modules 23
  Implications for Vendors 25
The Future of Content Creation 26
  Market Challenges 28
  Authoring Tools 29
  Cost Issues 31
  Standards 35
    The Challenges of Standardization 35
    Selected Web-Wide Metastandard Initiatives 36
Future of Content Delivery 39
  Learning Hardware 41
    Personal Digital Assistants 41
    Electronic Books 41
    Electronic Pens 42
    Portable Digital Players 43
  Delivery Media 43
    Offline Delivery Media 43
    Online Delivery Media 43
  Learning Software 44
    Video and Multimedia 44
    Audio 44
  Services 45
Markets and Business Models 45
  Emerging eLearning Markets 46
    Workplace 47
    Schools and Universities 50
    Home 50
  eLearning Products and Services 52
    A Scenario Perspective 52
    Implications for eLearning Content 54
  New Business Models 54
    Sponsored Content 57
    Syndication 57
    Subscription 58
    Payment per Course or Learning Module 59
  Content Rights and IP Issues 60
Content Players and New Roles 60
  Learning Portals 62
  Universities 64
  Corporate Universities 66
  Learning Networks 67
  Publishing Houses 68
  Knowledge Brokers 69
  Media 69
  Knowledge Conglomerates 70
  Independent Developers 71
 
Tables
Content Developments and Uncertainties 7
New and Old Learning Methods 14
Selected Vendors of Hard-Skill eLearning Content 16
Types of Learning Modules 24
Macromedia and Asymetrix Authoring Tools 30
Factors Affecting Cost of eLearning Content 32
eLearning Costs and Media Choice 33
Resource Requirements for Live Online Learning and Web-Based Training 33
Nonproduction Costs of eLearning 34
Working Groups of the Learning Technology Standards Committee 38
Workplace Developments and Learning-Content Implications 48
Web Sites with Learning-Related Content for Children 51
Subscription-Based Learning-Content Providers 59
Pay-per-Course Vendors 59
Selected Learning Portals 62
Types of Virtual Universities 64
Opportunities and Challenges for Virtual Universities 65
Types of Learning Networks 67
 
Figures
Learning Content: Selected Issues and Dynamics 6
The Need to Cross the Chasm 9
Perspectives on the Future of Bandwidth 11
Formal and Informal Learning 20
A Cost Framework for eLearning Content 27
Potential Standards-Development Process 37
MetaView of the Marketplace 46
Content Delivery via Enterprise Portal 49
Personal Learning Management Service 53
Content Channels 56
NTUC's Syndication Model 58
Learning-Industry Conglomeration 70
 
Boxes
Learning Content for the New Digital Generation 9
Young Web Users: Reshaping Consumer Demands 15
Soft-Skill Players 18
Examples of Modular Content Use 24
Extensible Markup Language 26
New Tools for Knowledge Workers 40
Hungry Minds: Catering to Adults' Education Needs and Preferences 63
Arthur D. Little School of Management 67
ToExcel.com 68



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