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Learning on Demand
Evolving Business Models in eLearning
  Volume 3
• Section 4: The Competitive Landscape
• Section 5: Demand-Side Drivers
• Section 6: Market Strategies

March 2002
Author: Tom Barron
Learning on Demand program logo

About This Report
Table of Contents
  Download Volume 3 (pdf)
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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 4: The Competitive Landscape 1
  Broadening Competitive Threats 1
  Learning-Management Platforms 2
    Enterprise-Software Firms 3
    Technology Giants 4
    Big Five Spin-Offs 5
    KM-Platform Developers 5
    Technology Integrators 5
    Niche Platform Competitors 5
    Developers of Web-Content-Management Systems 6
  Content-Based Competitors 6
    University-Based Competitors 7
    Vertical-Market Specialists 7
  Other Potential Competitors 8
    Videoconferencing Developers 8
    Streaming-Media Companies 8
    Telecommunications Providers 9
  Ramifications for eLearning Providers 9
Section 5: Demand-Side Drivers 10
  Efforts to Characterize Demand 10
  The eLearning-Demand Landscape 11
    Certification-Driven Markets 12
    Regulation-Driven Markets 13
    Training-Intensive Markets 15
    Multinational Organizations 15
  Vertical-Market Leaders 16
    Financial-Services Firms 16
    Information-Technology Firms 17
    Life-Sciences Industry 18
    Telecommunications Firms 18
    Government Organizations 19
  Success Factors among eLearning Adopters 20
    Blended Learning 20
    Synchronous-Learning and Collaboration Tools 22
    Content Quality 22
Section 6: Market Strategies 23
  Provider Types versus Market Approaches 23
  Common Success Factors 24
    Successful Brand Building 25
    Focus on Quality 27
    Financial Strength 28
  Successful Market Approaches 31
    Comprehensive Solutions 32
    International Growth Strategies 33
    Relationships with Distribution Partners 34
    Efforts to Target Large Businesses 35
 
Tables
Major eLearning Adopters in the Financial Industry 17
Telecommunications Firms and eLearning Providers 19
Types of Providers and Target Markets 24
Click2learn Revenue and Expenses 30
U.S. eLearning Providers in Japan 34
 
Figures
Potential Competitors to Pure-Play eLearning Providers 2
Competitors in Learning-Management Platforms 3
Key Drivers of eLearning Demand 12
Blended Learning Solutions 21
eLearning-Vendor Consolidation 32
 
Boxes
LGuide’s Review of Content Quality 27



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