How to Buy Enterprise LMS and LCMS Solutions

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How to Buy Enterprise LMS and LCMS Solutions Bryan Chapman Chief Learning Strategist Chapman Alliance [email protected]

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Transcript of How to Buy Enterprise LMS and LCMS Solutions

Page 1: How to Buy Enterprise LMS and LCMS Solutions

How to Buy Enterprise LMS and LCMS Solutions

Bryan ChapmanChief Learning Strategist

Chapman [email protected]

Page 2: How to Buy Enterprise LMS and LCMS Solutions

Learning Technology Infrastructure

Virtual ClassroomVirtual

Classroom

In-house authoring

In-house authoring

Outsource,CustomContent

Outsource,CustomContent LCMSLCMS

Simulation-Based Content

Simulation-Based Content

Off-the-ShelfCourses

Off-the-ShelfCourses

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$2 Million Solution

• Large Finance Company• 25,000 Learners• Scope Creep• Should have paid about $500,000

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Who you should consider for your committee:

• Yourself (who are you? – champion!)

• Training Representative(s) Global Line of Business

• Human Resources• IT• Other Champions• Consultants• Others?

What about the size of the group?

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20 Questions – to isolate learning infrastructure needs

1. Hosted vs. Locally Installed?

2. 80+ of e-learning content?

3. Off-the-Shelf content?

4. Multiple-Languages?

5. Basic vs. Advanced Classroom Management?

6. Skill-Gap Analysis/ Competency Management?

7. Regulatory and Compliance Tracking?

8. Knowledge Management?

9. Performance/HCM?

10. Level of Reporting?

1. Hosted vs. Locally Installed?

2. 80+ of e-learning content?

3. Off-the-Shelf content?

4. Multiple-Languages?

5. Basic vs. Advanced Classroom Management?

6. Skill-Gap Analysis/ Competency Management?

7. Regulatory and Compliance Tracking?

8. Knowledge Management?

9. Performance/HCM?

10. Level of Reporting?

11. Collaboration?

12. Virtual Classroom?

13. ERP Connectivity?

14. E-Commerce?

15. Systems Requirements? (Database, Server, Restrictions?

16. Offline Learners?

17. Multiple Portals – Single Implementation?

18. Specific Use Case Needs?

19. Buy in from all Stakeholders?

20. Budget/Pricing Sensitivity?

11. Collaboration?

12. Virtual Classroom?

13. ERP Connectivity?

14. E-Commerce?

15. Systems Requirements? (Database, Server, Restrictions?

16. Offline Learners?

17. Multiple Portals – Single Implementation?

18. Specific Use Case Needs?

19. Buy in from all Stakeholders?

20. Budget/Pricing Sensitivity?

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How to Create the Ideal RFP

Have a clear vision of your overall learning strategy Have a clear vision of your overall learning strategy 1

Create proper scope for the project Create proper scope for the project 2

Develop a vendor pre-qualification checklist Develop a vendor pre-qualification checklist 3

Create a vendor scorecard Create a vendor scorecard 4

Use a template Use a template 5

Don’t overstate the positive or understate the negative Don’t overstate the positive or understate the negative 6

Design a request for information questionnaire/evaluation Design a request for information questionnaire/evaluation 7

Allow sufficient time for responses Allow sufficient time for responses 8

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How to Create the Ideal RFP

“Many people view an RFP as simply a legal document that describes the desired contractual and working relationship between supplier and consumer to secure a bid for a given training

project. It is designed to protect consumers from bad deals and vendors that might fall into

bankruptcy— but an RFP is much more than that.”

Chapman, B. How to Create the Ideal RFP. Training Magazine. Volume 41 (1). pp. 40-43

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How to Create the Ideal RFP

“An RFP represents a critical point in the process that literally requires you to document your

training needs using completely unambiguous narrative text, so that every member of your

strategy team, other stakeholders and potential vendors will understand exactly what you are

trying to accomplish.”

Chapman, B. How to Create the Ideal RFP. Training Magazine. Volume 41 (1). pp. 40-43

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Vendor pre-qualification checklist

The Solution must…

 

1.    …be a fully hosted solution including off site hosting for the LCMS/LMS, hosting for course content and learner performance data, vendor-supplied hardware, and support staff

2.    …be a full featured, multi-author, content-management environment in which staff can create, store, reuse, manage and deliver e-learning courseware from a single, central remote content repository

3.    …be able to support content development from 6 different geographic locations including development sites in Texas, Michigan, New York, North Carolina, and Eastern Canada; while allowing e-learning courses to be deployed to approximately 7500 learners across all 6 locations as well

4.    …have built-in content creation tools suitable for novice development of e-learning courses including a wide variety of interactive test question types and simultaneously allow for interactive content from 3rd party authoring tools such as Dreamweaver and Flash; also, support streaming media

5.    …allow trainers and subject matter experts to work initially in Microsoft Word and PowerPoint as a method of content development (templates/utilities/forms for converting Word/PowerPoint to e-learning)

6.    ….allow each training department to reuse content by modifying it for their own needs (customization) without duplicating content

The Solution must…

 

1.    …be a fully hosted solution including off site hosting for the LCMS/LMS, hosting for course content and learner performance data, vendor-supplied hardware, and support staff

2.    …be a full featured, multi-author, content-management environment in which staff can create, store, reuse, manage and deliver e-learning courseware from a single, central remote content repository

3.    …be able to support content development from 6 different geographic locations including development sites in Texas, Michigan, New York, North Carolina, and Eastern Canada; while allowing e-learning courses to be deployed to approximately 7500 learners across all 6 locations as well

4.    …have built-in content creation tools suitable for novice development of e-learning courses including a wide variety of interactive test question types and simultaneously allow for interactive content from 3rd party authoring tools such as Dreamweaver and Flash; also, support streaming media

5.    …allow trainers and subject matter experts to work initially in Microsoft Word and PowerPoint as a method of content development (templates/utilities/forms for converting Word/PowerPoint to e-learning)

6.    ….allow each training department to reuse content by modifying it for their own needs (customization) without duplicating content

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Use Cases

• Learner Perspective• Training Administrator/Registrar

Perspective• Course Developer/Curriculum Manager

Perspective• HR Perspective• IT Prespective• Others?

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Use Case for Evaluation Purposes

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RFP - trends

• More requests for internal development of e-learning content

• Desire to include Novice in instructional development Process

• More sophisticated requests for business system integration

• Departmental solutions vs. full enterprise wide solutions, still in the majority

• Huge emphasis on financial viability of the vendor.

• Single source solutions

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LMS – Top RFP requests

1. Standards-based, e-learning launching and tracking capability

2. Open model for interoperability with 3rd party e-learning content

3. Freeform, ad hoc, customizable reports

4. Strong Classroom management capabilities with full resource/instructor management

5. Experience and planned-process for ERP/CRM (plus other business systems) integration

6. Pre-integrated content development and/or content management capabilities

7. Extended “Performance Management” functionality, such as competency management, regulatory compliance tracking, 360 degree evaluation, OJT tracking, etc.

8. Quick, efficient implementation

9. Reasonable price

10. Financial Viability of the LMS Vendor

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LCMS – Top RFP requests

1. Novice Friendly, Rapid Development content authoring and/or content assembly tools

2. Well defined model for importing Microsoft documents – PowerPoint and Word

3. Supports a wide variety of popular 3rd party content authoring tools like Flash, Authorware, Dreamweaver, Lectora, Trainersoft, etc.

4. Strong adherence to standards and specifications (SCORM and AICC)

5. “Tested” Interoperability with 3rd party LMS

6. Well-defined model for reusing and re-purposing “learning objects” to create multiple, derivative versions of the same course, for different learners.

7. Adaptive Learning through Dynamic pretesting

8. Support multiple output types (most requested = print documentation, also PALM, PocketPC and Just-in-time help)

9. Revision Control, Archiving and File Management

10. Workflow Management

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Definition

LCMS (èl-see-em-ess):

1) A multi-user environment where learning developers can create, store, reuse, manage, and deliver digital learning content from a central object repository.

2) Acronym for Learning Content Management System.

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Anatomy of an LCMS

Learning ObjectRepository

Learning ObjectRepository

MicrosoftWord

MicrosoftWord

MIDDLEWARE

MIDDLEWARE

DELIVERY

ENGINE

DELIVERY

ENGINE

PowerPointPowerPoint

Built-inAuthoring Utilities

(Browser-Based orLocally Installed Application)

Built-inAuthoring Utilities

(Browser-Based orLocally Installed Application)

Content Creation

Interfaces

Flash(and other 3rd party

Authoring tools)

Flash(and other 3rd party

Authoring tools)

Content Assembly Interface

(course hierarchy)

HTMLEditor

Embedded or external

HTMLEditor

Embedded or external

Database Storage Publish Learning(add navigation controls, etc.)

e-Learninge-Learning

CD-ROMCD-ROM

Print-basedPrint-based

PALM(and other mobile

devices)

PALM(and other mobile

devices)

EPSSEPSS

OutputType?

Assemble at runtime

Pre-compile

C:\Media \graphics

\animations \audio \video

Output Formats

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Cisco (20,000+ field sales)

AnalyzeAnalyze DesignDesign DevelopDevelop ImplementImplement EvaluateEvaluate

Content Collection occurs before ADDIE

(Knowledge Repository)

Content Collection occurs before ADDIE

(Knowledge Repository)

Learning ContentLearning Content

E-learning Courses

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When you should consider an LCMS

• 80+ hours of “seat time” per year

• 10 or more “content contributors”

• Need to “rebrand content”

• Automatic navigation controls – Common e-learning player

• Support multiple output types (print-based, EPSS, PocketPC, etc.)

• LMS in place, but can’t keep pace with content needs

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LMS Average Licensing Costs – Locally Installed

1st year license 3 year license and maintenance agreement

500 Learners $36,767($74 per learner)

$57,959($39 per learner)

10,000 Learners $157,887($16 per learner)

$258,771($9 per learner)

25,000 Learners $279,389($11 per learner)

$451,521($6 per learner)

100,000 Learners $632,490($6 per learner)

$1,063,796($4 per learner)

N=52

Scope – Understanding Costs

Source: LMS KnowlegeBase: In Depth Profiles of 52 Learning Management Systems, With Custom Comparison Across 200+ Features, published by brandon-hall.com.

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LMS Average Licensing Costs – Hosted

1st year license 3 year license and maintenance agreement

500 Learners $44,528($90 per learner)

$96,387($64 per learner)

10,000 Learners $160,463($16 per learner)

$348,378($12 per learner)

25,000 Learners $259,232($10 per learner)

$592,816($8 per learner)

100,000 Learners $681,562($7 per learner)

$1,383,964($5 per learner)

N=52

Scope – Understanding Costs

Source: LMS KnowlegeBase: In Depth Profiles of 52 Learning Management Systems, With Custom Comparison Across 200+ Features, published by brandon-hall.com.

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Questions???

Bryan ChapmanChief Learning Strategist

Chapman [email protected]