CORPORATE E-LEARNING VIA THE WEB

Introduction

• For the purpose of this report e-learning is used synonymously with internet-enabled learning. The report focuses on how the internet is being applied to the delivery of corporate and professional training.
• Desk-top PCs using wired networks are currently the predominant delivery platform for corporate e-learning. However, wireless, handheld and TV platforms will undoubtedly have a role to play in the future.
• E-learning is gaining momentum, driven both by a recognition of the shortcomings of traditional training delivery methods and by pervasive internet technology which has created dynamic and innovative alternatives in terms of both access and content.

Sizing the market

• Corporate e-learning revenues in Europe are predicted to grow from $0.5 billion in 2001 to $3.9 billion in 2004. Meanwhile, UK corporate e-learning spend is set to grow from UKP27 million in 2001 to UKP311 million in 2004.
• E-learning is being driven from both the demand and the supply side. The demand for flexible access to lifelong e-learning is being supported by growing internet penetration at work and at home. The European market is also being driven and supported by the public sector - a key differentiator from the US market.
• IT training has surged ahead of soft skills training in the e-learning arena. However, market forecasts predict extensive usage of internet-based training in the soft skills sector to complement traditional classroom-based training methods.
• Whilst a strong market growth is predicted for e-learning, there are a number of market constraints which may slow or dilute its overall impact. These include a lack of good quality content and the lack of proof that e-learning is more, or even as, effective as traditional classroom-based training.

Market segmentation

• There are four broad market segments at play in the corporate e-learning value chain - Content, Technology, Services and Customers.
• Distinctions between the first three market segments are already beginning to blur as the market consolidates and players begin to pursue aggressive partnership strategies in order to offer the one-stop-solution which is increasingly in demand from corporate e-learning purchasers.
• In terms of customers, large multinationals (and the more recent development of corporate universities by a number of them) are the most obvious targets, but it would be erroneous to dismiss the SME, public sector and individual user markets.

Assessing the opportunities

• For content players, the emergence of e-learning offers two key opportunities:

  * Upselling within existing customer base through addition of new service values;

  * Reaching new customers and new geographical markets.

• A number of key trends will shape and define market development for corporate e-learning. For example:

  * e-learning suppliers will partner with distribution partners (e.g. technology players, content aggregators, other training suppliers) to reach new markets;

  * one-stop-shop solutions will dominate the large corporate and corporate university markets where customers seek a total solution on a pan-European or global basis;

  * aggregators will aim to capture the SME market, while providing a resource for corporates to fulfil a niche training requirement.

Issues to consider

• There are some key issues which e-learning suppliers must address before launching headstrong into this marketplace, including:

  * Available investment capital

  * Human resources

  * Customer demands and needs

  * Characteristics of a compelling e-learning solution

  * Skills

  * Exploiting new routes to market

  * Pricing/business models