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Learning on Demand
Evolving Business Models in eLearning
  Volume 2
• Section 2: Growing Role of Vendor Alliances
• Section 3: Technology Advances Shaping New Business Models

January 2002
Author: Tom Barron
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About This Report
Table of Contents
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About This Report

Corporate eLearning is in the midst of rapid change. Once an emerging market with bright potential, the corporate-eLearning market is growing up to become an established industry with a positive early track record. In the past year, an array of eLearning technologies have coalesced into defined categories, which have enjoyed various degrees of market success. Moreover, the corporate-eLearning industry, once a cottage industry of mostly small technology start-ups, is increasingly attractive to larger technology players and professional-service firms. In turn, an assortment of compelling case studies in recent months have begun to provide evidence of eLearning’s benefits to business, not only in offering lower-cost employee training than is possible using traditional means but also in enhancing companies’ intellectual capital and competitive edge.

The Learning-on-Demand (LoD) Program of SRI Consulting Business Intelligence has been tracking these developments with an eye to helping eLearning providers and adopters adjust to the new realities of the maturing corporate eLearning market. LoD analysts have zeroed in on six areas that are relevant to companies seeking successful business models in eLearning. These areas explore the broad developments that will affect the strategies of existing eLearning providers and new market entrants, including technology-based developments, such as the advancing capabilities of Web hosting and the move toward object-based eLearning content; business developments, including the growth of vendor alliances and partnerships with established technology and consulting firms; demand-side factors that are influencing the evolution of eLearning; and market strategies that are finding firm footing in today’s soft market.


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 4544; 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

Section 2: Growing Role of Vendor Alliances 1
  The Value of Alliances 1
  Vendor-Vendor Alliances 3
    Content-LMS Alliances 3
    Tool-LMS Alliances 4
    LMS-LCMS Alliances 4
    Multivendor Alliances 5
    Hosting-Based Alliances 6
    Components of Vendor-Vendor Alliances 7
  Other Types of Alliances 8
    Alliances Versus End-to-End Providers 8
    Platform-Integrator Alliances 8
    Alliances with Professional-Service Firms 10
  Observations and Predictions 12
    Predictions 12
    Implications for eLearning Vendors 14
    Implications for eLearning Adopters 14
Section 3: Technology Advances Shaping New Business Models 15
  Driver of Opportunity 15
  Learning-Object Technologies 17
    Content Vendors and Learning Objects 18
    Authoring-/Management-Tool Developers and Learning Objects 20
    Learning Objects and Knowledge Management 22
  Difficulties Facing Learning-Object Technologies 24
  Other Promising Technologies 26
    Streaming-Video Technologies 26
    Collaboration Software 28
    Peer-to-Peer Software 29
    Mobile eLearning 30
    Game- and Simulation-Based eLearning 30
  On the Horizon 31
  Technology Convergence 31
 
Tables
Acquisitions and Licensing of LCMS Technologies, 2001 22
 
Figures
Growth in Strategic Alliances 1
Hierarchy of Vendor Alliances 2
LMS Vendors as Alliance Hubs 5
Alliance-Based Hosted Services 7
Alliances with Integrators 9
Alliances with Big Five Companies 11
Technology Evolution in eLearning 16
Elements of LCMSs 21
Growth of the Streaming-Video Market 27
 
Boxes
Benefits of Learning-Object–Based eLearning 18
Use of Learning Objects at Compaq’s Nonstop Division 23



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