AUGUST 2014 BRF Learning Management Systems 2014:...

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Learning Management Systems 2014: Making the Right Decision to Support High-Impact Learning || AUGUST 2014 WHATWORKS ® BRIEF Copyright © 2014 Deloitte Development LLC. All rights reserved. 1 Our research, available to Bersin by Deloitte WhatWorks members shows that $2.5 billion to $2.7 billion will be spent globally in 2014. In the U.S. in 2013, 15 percent of training spending went to learning technologies, the largest percentage it has been since we began tracking this metric. 1 (See Figure 1.) LEARNING MANGEMENT SYSTEMS 2014 >> The learning management system (LMS) market is growing and evolving at breakneck speed. There are more buyers and more providers (600-plus at last count) than ever. Yet, at their core, most LMSs do exactly the same thing. Many still suffer from old-fashioned interfaces. The learning strategies of buying organizations are shifting to prioritize continuous and mobile learning. Not sure where to start? Bersin by Deloitte's Learning Management Systems 2014: The Definitive Buyer’s Guide to the Global Market for Learning Management Solutions helps you to solve this riddle. Figure 1: 2014 Projected Global LMS Market Share Source: Bersin by Deloitte, 2014. 1 For more information, The Corporate Learning Factbook 2014: Benchmarks, Trends, and Analysis of the U.S. Training Market, Bersin by Deloitte / Karen O’Leonard, January 2014. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/factbook. SaaS-based systems and flexible pricing models— this is a buyer’s market. What Leaders Need to Know The first question to ask is, “What are our goals?” The answer to this question will dictate the choices you consider in this provider-rich market. If your organization is focused on integrated talent management, you will select from talent management systems that place career, development planning, profiles, and competencies front and center, with the LMS operating behind the scenes. If your goal is to effectively manage a high volume of training, you do not need the overhead of an integrated talent management system and you will look to the traditional LMS market. This market includes a number of new players, as well as specialized providers, that focus on specific business issues, such as compliance for healthcare, oil, or financial institutions. This is a global market with no clear leaders. You do not have to stick with the top dogs. There could be a great provider in your own backyard if your company is a global organization looking for a provider close to your key location. SAP (all) SumTotal Oracle (all) Cornerstone OnDemand Skillsoft Saba Xerox Learning Services (formerly ACS) Blackboard CrossKnowledge CERTPOINT (Infor) MeridianKSI DuPont Sustainable Solutions HealthcareSource Totara NetDimensions Other As features commoditize and providers multiply— with growing numbers offering easy-to-implement

Transcript of AUGUST 2014 BRF Learning Management Systems 2014:...

Learning Management Systems 2014: Making the Right Decision to Support High-Impact Learning

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Copyright © 2014 Deloitte Development LLC. All rights reserved. 1

Our research, available to Bersin by Deloitte WhatWorks members shows that $2.5 billion to $2.7 billion will be spent globally in 2014. In the U.S. in 2013, 15 percent of training spending went to learning technologies, the largest percentage it has been since we began tracking this metric.1 (See Figure 1.)

LEARNING MANGEMENT SYSTEMS 2014 >> The learning management system (LMS) market is growing and evolving at breakneck speed. There are more buyers and more providers (600-plus at last count) than ever. Yet, at their core, most LMSs do exactly the same thing. Many still suffer from old-fashioned interfaces. The learning strategies of buying organizations are shifting to prioritize continuous and mobile learning. Not sure where to start? Bersin by Deloitte's Learning Management Systems 2014: The Definitive Buyer’s Guide to the Global Market for Learning Management Solutions helps you to solve this riddle.

Figure 1: 2014 Projected Global LMS Market Share

Source: Bersin by Deloitte, 2014.

1 For more information, The Corporate Learning Factbook 2014: Benchmarks, Trends, and Analysis of the U.S. Training Market, Bersin by Deloitte / Karen O’Leonard, January 2014. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/factbook.

SaaS-based systems and flexible pricing models—this is a buyer’s market.

What Leaders Need to Know

• The first question to ask is, “What are our goals?” The answer to this question will dictate the choices you consider in this provider-rich market. If your organization is focused on integrated talent management, you will select from talent management systems that place career, development planning, profiles, and competencies front and center, with the LMS operating behind the scenes.

If your goal is to effectively manage a high volume of training, you do not need the overhead of an integrated talent management system and you will look to the traditional LMS market. This market includes a number of new players, as well as specialized providers, that focus on specific business issues, such as compliance for healthcare, oil, or financial institutions.

• This is a global market with no clear leaders. You do not have to stick with the top dogs. There could be a great provider in your own backyard if your company is a global organization looking for a provider close to your key location.

SAP (all) SumTotalOracle (all)

Cornerstone OnDemand

Skillsoft

Saba

Xerox Learning Services(formerly ACS)

BlackboardCrossKnowledge

CERTPOINT (Infor)MeridianKSI

DuPont Sustainable Solutions

HealthcareSourceTotara

NetDimensions

Other

As features commoditize and providers multiply—with growing numbers offering easy-to-implement

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ATW

OR

KS

® B

RIE

F

Copyright © 2014 Deloitte Development LLC. All rights reserved. 2

Bersin by Deloitte

180 Grand Avenue Suite 320Oakland, CA [email protected]

About Bersin by Deloitte

Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. Our WhatWorks® membership gives FORTUNE 1000 and Global 2000 HR professionals the information and tools they need to design and implement leading practice solutions, benchmark against others, develop their staff, and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent and learning strategies.

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

• New social capabilities are emerging around both learning and talent management systems. Early adopters are buying social platforms at the departmental level to educate themselves and to test the value of these applications. These capabilities are not yet integrated into mainstream platforms. Organizations that understand the most effective social applications for their strategy will be in the best position to assess next-generation providers as they integrate these capabilities.

Selecting the Right LMS Provider

Bersin by Deloitte is the only firm that covers and analyzes the solution providers and technology that HR, talent and learning strategies rely on. With a decade of experience in the market and a customer base that includes hundreds of FORTUNE 1000 and Global 2000 organizations, Bersin by Deloitte is the industry’s best source of objective analysis about solution providers.

Companies around the world rely on our constantly updated collection of over 350 solution provider profiles, nearly 1,000 research-based resources and over 300 expert questions and answers to make the right technology investment decisions.

Bersin by Deloitte solution provider profiles include unbiased analyses of the solution providers’ strengths and weaknesses, as well as the markets they are optimized to serve (see Figure 2).

Our Research

WhatWorks members select from more than 1,700 research-based resources, including more than 300 research bulletins on the latest trends, 200 case studies, and more than 90 in-depth industry studies comparing solution providers and identifying leading practices in technology assessment, selection, and implementation.

We look forward to helping you to make sense of the dynamic and complex technology environment through our WhatWorks membership and system.

Figure 3. Research-Based Resources

Source: Bersin by Deloitte, 2014.

Figure 2: Solution Provider Profiles

Source: Bersin by Deloitte, 2014.