LMS buyers guide

BERSIN & ASSOCIATES © 2012

The Definitive Buyer's Guide to the Global Market for Learning Management Solutions 2013(Abridged)

IND

UST

RY S

TUD

Y

Janet Clarey,

Senior Analyst

Katherine Jones,

Ph.D., Principal

Analyst

Wendy

Wang-Audia,

Research Analyst

David Mallon,

Principal Analyst

2BERSIN & ASSOCIATES © DECEMBER 2012 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

The Definitive Buyer's Guide: Learning Management Solutions 2013

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Table of Figures

The Learning Management Systems Primer 6In This Report 6

Evolution of Enterprise Learning Management 7The Role of the LMS in the Enterprise 9Typical LMS Functionality and Features 11State of Learning Management Systems and Learning Technology 14

LMS Functionality in Other Learning Solution Technologies 16Virtual Classroom Technology 20The Massive Open Online Course (MOOC) and the LMS 21

Summary 22Appendix I: Application and Practice 23Appendix II: Additional Resources 23Appendix III: Bibliography 24Appendix IV: Table of Figures 25

2012 Estimated Global LMS Market Share 44

The Bersin & Associates LMS Market Map™ 67

SumTotal’s Vendor Profile 315About Us 326

About This Research 326

OVERVIEWThis primer presents an overview of learning management systems (LMSs) – the technology that manages an organization’s learners and learning events, and often serves as a platform for the delivery of e-learning.

In This Report

• The Evolution of Enterprise Learning Management

• The Role of the Learning Management System

• LMS Functionality and Features

• The State of Learning Management Systems

• Trends and the Future of the LMS

BERSIN & ASSOCIATES © OCTOBER 2012 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

BERSIN & ASSOCIATES

Learning Management Systems 2013

IND

UST

RY S

TUD

Y

Janet Clarey,

Senior Analyst

David Mallon,

Principal Analyst

The Learning Management Systems Primer

Reports

http://insights.bersin.com/research/?docid=15966



Evolution of Enterprise Learning Management

The pre-digital learning management system was likely a file cabinet in HR stuffed with various training certificates, course completion records, professional designations and advanced degrees that were earned by individual employees throughout their careers. It was neither automated nor self-service; it could not be used to create, manage or deliver training content as was the case with the first of the digital training management systems which appeared in the 1960s1,a in higher education.

By the late 1990s, the enterprise learning management system market (as we know it today) began to form with systems designed to meet the organizational needs for automating training and getting training materials online – in much the same way as email was implemented to meet the organization’s post-digital communications needs.

Over the past decade, the LMS market has continued to evolve with solution providers adding new features and functionality for collaboration, continuous learning2 and knowledge-sharing. Some systems are now becoming platforms for supporting mobile learning across contexts. (See Figure 1.)

1 “PLATO” (programmed logic for automated teaching operations) was reportedly the first

learning management system. It was created in 1960 at the University of Illinois and was produced

until 2006.

2 “Continuous learning” refers to the ongoing development of skills, abilities and knowledge

through different means (including work on the job, training, experiences, communications, etc.),

and is part of an individual’s ongoing professional life at work and outside of work.

Copyright © 2011 Bersin & Associates. All rights reserved.

Get Materials Online

Expand, Blend Improve e-Learning

Solve Talent Problems

Informal Learning Skills & Specialization

2001 2004 2011

Evolution of Learning Management Systems

2007

LMS e-Learning Platform

LMS Enterprise Learning Platform

Learning Portal Blogs, Wikis, Twitter,

Mobile & Social Networks

Instructional Design Kirkpatrick

Rapid e-Learning Information vs. Instruction

Search, Collaboration, Community,

Information Architecture

e-Learning Get Materials Online

Blended Learning

Collaborative / Social Learning, Content

Management, Rich Media

Interactivity Simulation

Learning Paths Role-Based

Competency-Based Learning

Career Development Deep Specialization

Leadership Development

Rich Catalogue University

2015

Mobile Internet Everyw

here Location Aw

areness Inform

ation Feeds Learning & Perform

ance Integrated

Figure 1: Evolution of Learning Management Systems Since 2000

Source: Bersin & Associates, 2012.



Recently, the LMS market has changed from one of growth, expansion and evolution to one of fragmentation, specialization and globalization. Overall, the market for learning management systems is relatively mature and increasingly commoditized; most systems can accommodate most basic functionality. Delivery methods behind LMSs have also evolved in recent years from mainframe systems to cloud computing3 – a very important driver of the growing market today (see Figure 2).

3 “Cloud computing” refers to both the applications delivered as services over the Internet, and

the hardware and systems software in the data centers that provide those services. In general, it

is used to refer to a means of accessing computer resources provided through the Internet, rather

than running the software or storing data on a local computer. “Software-as-a-Service” (SaaS)

refers to business or personal applications that are housed and managed remotely, and accessed

via the Internet. These applications are subscribed to rather than owned outright.

Figure 2: How Technology Has Changed HR Software Markets

Mainframe PC Client / Server Web SaaS / Cloud

1950s to 1970s 1980s 1990s 2000s 2010 and on

Feat

ures

• Manyusers• Subsecond

responsetime• Alphanumeric

terminals

• Graphicaluserinterfaces

• Color• Charts• Exportto

Excel

• Highlyscalablegraphicaluser interfaces

• Shareddatabases

• Browser-enabledapplications

• HTMLuserinterfaces

• Highlyinteractive

• Highlyscalable

• Integratedsystems

App

lications

• Payroll• Training

administration• General

personneladministrationandrecordkeeping

• HRMS

Spreadsheet-based:• Compensation• Performance

appraisals

• First-generationperformancemanagement

• Learningmanagement

• Performancemanagement

• Applicanttracking

• Onlineassessments

• Standalone,buteasytouseandimplement

Integratedtalentmanagementsolutions:• Withmanynew

applicationsaddedeachyear

• Allwithanintegrateddatabaseanduserexperience

• Designformobileandlocation-awaredevices

• Consumer-likeuserexperiences

• Predictiveandembeddedanalytics




Finally, the LMS market, while becoming more specialized and fragmented, is collectively very large. For our LMS 2013 study, we identified more than 400 technology solution providers that offered a dedicated learning management system, a suite of products that integrated learning or a system primarily used for a different purpose (e.g., virtual classroom, authoring tool, content provider, learning content management system, etc.) but also with LMS functionality. We have profiled some of those technology solutions in our LMS 2013 study, including market leaders, and some specialty providers and emerging solutions.

The Role of the LMS in the Enterprise

What is an LMS and what does it do? Simply put, the most basic learning management system is a technology that is used to manage learners and learning events, and which can often also serve as a platform for the creation, management and delivery of e-learning content (depending on the capabilities of the system). LMSs can be installed behind a firewall or, increasingly, are deployed in the cloud. They are used by organizations of all sizes – from 50 or less employees, to hundreds of thousands of users.

Figure 3: Audience Uses for an LMS

Audience Usage

Full-TimeEmployees

• PersonalandProfessionalDevelopment• AssessmentandCertification• CareerPlanningandManagement• PerformanceSupport• Onboarding• Networking• Knowledge-Sharing• Community-Building• Collaboration

ExtendedEmployees(e.g.,part-time,contingent,alumni,interns,etc.)

• PersonalandProfessionalDevelopment• AssessmentandCertification• CareerPlanningandManagement• PerformanceSupport• Onboarding• Networking• Knowledge-Sharing• Community-Building• Collaboration• CommunityManagement




Today’s enterprise-class LMSs must have a robust set of features for HR integration, analytics and reporting, content management, and skills and competency management. Enterprise customers are also demanding functionality to support social learning4 and collaboration, integrated performance management, employee development and succession planning, and business process integration. The maturity and depth of these features varies widely from provider to provider. For example, we are seeing more “lightweight” systems designed for small and midsize businesses that are easy to set up, and which require little or no integration with talent management process.b

Either enterprisewide or within a small business5, the LMS is one of the only systems in an organization that is touched by nearly every employee and manager, as well as training administrators and even customers – what we call the “extended enterprise.”c

4 “Social learning” is a blended-learning model that uses social media to enhance the learning

experience. Social learning produces a collaborative learning environment when synchronous

with asynchronous approaches are combined. The goal of social learning is to create a community

of learners who work together during the class. When the class is over, that community can then

evolve into an ongoing and interactive community of practice which continues to learn and

collaborate when on the job.

5 The large business segment (companies or departments serving more than 10,000 employees in

any one country) is fairly well-saturated, with nearly 80 percent using an LMS. The small business

segment (100 to 999 employees) is poised for growth as only 31 percent of these companies is

using an LMS. The midsize business segment (companies employing 1,000 to 9,999 people) is also

growing with an estimated growth rate of 18 percent.

Figure 3: Audience Uses for an LMS (cont'd)

Audience Usage

ExtendedEnterprise

• ProductTraining• AssessmentandCertification• PerformanceSupport• Community-BuildingandManagement

Customers• ProductTraining• LoyaltyMarketing• Community-Building

GeneralPublic• BrandAwareness• ProductSupport




Typical LMS Functionality and Features

Large businesses often need the most advanced, adaptive and flexible system that can play a central role in the management of talent. The need for a more robust set of features (like integrated talent management), support for new business objectives, advanced method of gathering business intelligence and more flexibility are all drivers for large business. LMS solution providers that sell to large companies are providing a number of advanced features and functions which these enterprises require, in addition to core application support. These include the following (and are also shown in Figure 4):

• Core Application Support – e-Learning management, training administration, learning content management, key features

• Advanced Features – Integrated talent management, social and collaborative learning, customer and partner training (extended enterprise), training packages / eCommerce, and training commerce, certification administration, testing and assessment

• Comprehensive Features – Rich, open employee profile; integration with HRMS6 and other systems, collaboration and social features (e.g., messaging, activity streaming, groups, friending, etc.), analytics, reporting, measurement, mobile access, and administration

6 “HRMS” stands for human resources management system.

KEY POINT

Theneedforamore

robustsetoffeatures

(likeintegratedtalent

management),supportfor

newbusinessobjectives,

advancedmethodof

gatheringbusiness

intelligenceandmore

flexibilityarealldriversfor

largebusiness.

Figure 4: LMS Capabilities – A Comparison of Basic versus Advanced Features

Feature / Function

Basic LMSIncorporates

New Features

Advances LMS

CourseandResourceManagement

Includesmanagingcourseregistrations,schedulingresourcesandmanagingcoursecatalogs.

Addstheautomaticbuildingofcatalogsbasedonuserand/orcontentmetadata.Includesvirtualclassroomdeliveryandmanagement.




Figure 4: LMS Capabilities – A Comparison of Basic versus Advanced Features (cont'd)

Feature / Function


New Features

Advances LMS

Curricula,LearningPlansandCertificationManagement

• Supportsblended-learningprogrammanagement.

• Hasbasicfeatures,includingtheabilitytobundlelearningopportunitiesintologicalgroups.

• Addsblended-learningprogrammanagementlinkingformalandinformalprogramsinordertoblendtheirmanagementandmeasurement.

• Alsoenablesmanagingprerequisites,managerapprovals,eCommerce,theuseoflearningcredits,certificationprocessing,expirationsandprescriptivelearning.

LearningReportingandMeasurement

Includestrackinglearninghistory,trackingandreportingcertifications,andlearningmetrics.

• Hasmorecomprehensiveemployeeprofilesbecomingthesourceforallemployeehistory,enablingadvancedapplicationssuchascareer/successionandcompensationmanagement.

• Alsoincludesexceptionreporting,automaticnotificationbasedonthresholdsandmeasuringbusinessimpact/ROI.

Security

Grantsdifferentaccessprivilegesbasedonorganizationalhierarchy,domain orrole.

Provideshigherlevelsofsecuritytomeetmoredemandingrequirementsglobally.

HR-Related

Includeslimitedsynchronizationwiththeorganization'sHRdatabase.

• Integrateswithatalentmanagementsystem(TMS),movingawayfromaperformance-drivenapproachtomoreofatalent-drivenapproachtolearning.

• Includesintegratinglearningwithperformancemanagement,andmanagingskillsandcompetencies.




7 “Sharable Content Object Reference Model” (SCORM) is a set of specifications for course

content that produces reusable learning objects.

8 The “Aviation Industry CBT Committee” (AICC) is an international association of technology-

based training professionals that develops guidelines for the aviation industry in the development,

delivery and evaluation of computer-based training (CBT) and related training technologies.

Figure 4: LMS Capabilities – A Comparison of Basic versus Advanced Features (cont’d)

Feature / Function


New Features

Advances LMS

ContentIntegration

SupportstheindustrystandardsofAICC7 andSCORM8; makingitpossibletolaunch,track,bookmarkandreportone-learningcontent.Theseinterfacesaretestedandcertifiedagainstdifferentcontentproviders.

Hasadditionalintegrationwithnewtrainingmethodsincludinginformal,social,on-demand,embeddedandcollaborativelearning.

ContentManagement

Basicfeaturesincludestoringonlinelearningcontentandgeneralindexingofthecontentforsearch.

• Supportsthelearningcontentlifecycleandalsoprovidesanend-to-endlearningsolutionfromcontentdevelopmentdeliveryandmanagementtoassessmentofanytypeofformaland/orinformaltraining.

• Usesmorepowerfulsearchanddiscovery,enablinguserstosearchforagrowingnumberandvarietyofcoursesandcourseinformationusingmetadatalibraries.

eCommerce

Includestheabilitytoprocesspaymentsandchargebackswhensellingtrainingtopartnersandcustomers.

Addstheabilitytosellandprocessawidervarietyofcoursesandotherlearningmaterialstoemployees,partners,suppliersandcustomers.

MobileLearning

Notapplicable. Allowsforlearningandlearningmanagementtobemoreaccessibleonmobiledevices,fromlaptopstosmartphones.




State of Learning Management Systems and Learning Technology

In the LMS market, many “learning-only” solution providers have been acquired by larger players which sought to build suites of products for supporting end-to-end integrated talent management – talent acquisition, performance management, learning management and compensation. This high-profile consolidation at the top (by SAP, Oracle, SumTotal, etc.) means that the LMS is now part of the talent management / HR systems landscape.9

At the same time, the LMS market has become more fragmented and specialized with systems designed for specific vertical markets, segments (e.g., extended enterprise) or needs (e.g., social and collaborative learning platforms). That is the market. The systems themselves are also changing.

9 A key trend driving growth in talent management and the products which support that

management today include the convergence of talent management with core HR management

systems (HRMS), reflecting the shift of the employee system of record to an integrated talent

management application.

Figure 4: LMS Capabilities – A Comparison of Basic versus Advanced Features (cont’d)

Feature / Function


New Features

Advances LMS

Adaptability Notapplicable.

Providesan"adaptive" platformwithpre-built learningand/ortalentmanagementprocessesintegratedintomanydifferentpartsofthecorporateHRand ITinfrastructure.

Analyticsand ReportingacrossDatabases

Notapplicable.

Measuresthebusinessimpactoflearningonthecorporationbygeneratinganalyticalreportsacrossthedifferentdatabases.


KEY POINT

IntheLMSmarket,many

“learning-only”solution

providershavebeen

acquiredbylargerplayers

whichsoughttobuildsuites

ofproductsforsupporting

end-to-endintegratedtalent

management



The basic functionality of the LMS (like e-learning content delivery, scheduling, reporting and training administration) is now something most providers have – the technology is fairly commoditized. But that is not really learning management; that is management of the fulfillment of a subset of learning activities taking place across the organization.

Learning management today supports features like profiles, career development, development planning and performance support. The best systems are bringing these functionalities forward and pushing back the basic fulfillment functionality into the woodwork.

The features differentiating current learning management systems are as follows.

1. Breadth – Today’s systems have an enormous number of features. Buyers asked for a lot of functionality and they got it – but this is not always a good thing. In fact, a lot of organizations do not use most of the functionality they have.

2. Focus on the End-User Experience – The end-user experience has been a huge problem until recently. In the last decade, we have gone from getting most of our digital content in text form to receiving it in multiple forms – such as audio, images, video, etc. Many solution providers have heard the complaints and have started to bring a consumer-influenced approach to their interfaces; they are moving away from text-heavy applications to multimodal computing and interaction.

3. Learner-Centric Functionality – Although a differentiator for some providers, such as content providers for which the course or instructor is central to the system, many other providers are building systems that are learner-centric. We know that the person "doing" is the person learning [the most], so the better systems are bringing functionality that allows for more "doing." As an example, we can look up something in the encyclopedia or add something to a Wikipedia entry to which numerous people contribute. In an LMS, this learner-centric functionality breaks free of the teaching paradigm.

4. Adaptability – An adaptable LMS is a workflow management system with prebuilt learning and / or talent management processes that can transparently integrate into many different parts of the corporate HR and IT infrastructure. Adaptability and its supporting partner SaaS10 are now critical market drivers for learning and talent management systems. Staying power in the market will increasingly come from the

10 “Software as a Service” (or SaaS) refers to the business of selling software over the Internet as a

web service. In this business model, the software vendor charges an annual “subscription” fee and

can predict recurring revenues far more reliably than with the licensed software model.

KEY POINT

Learningmanagement

todaymeansprofiles,career

development,development

planningandperformance

support.



level of adaptability offered. The buy-and-customize model will be viable only for the very large organizations that are the solution providers’ target market. Enterprise software buyers increasingly expect and are beginning to receive what they want without customization.

5. Expertise – Many providers now offer holistic support for the needs of specialty audiences, such as the healthcare industry.

6. Software as a Service – SaaS has become the preferred model and, as the market continues to mature, we now see a shift in the perceived benefits from cost-savings to strategic value for the organization.

7. Convergence of Learning Technologies – The virtual classroom, social learning and mobile learning are all growth areas for solution providers. Right now, however, systems are still fairly disconnected. Buyers generally want consolidation, so system providers are trying to bring these into integrated platforms.

LMS Functionality in Other Learning Solution Technologies

Beyond the traditional LMS, there are also several other learning technology solutions that have some of the features and functionality of an LMS, but which are designed primarily for other purposes.

Mobile LMS

There are many forms and uses of mobile learning, and the various markets for m-learning solution providers are ever-expanding. A mobile LMS (mLMS) provides a platform for distributing and tracking m-learning activity (such as e-learning, nuggets, media, performance support, enablement, etc.).d

In our last report, in 2011, an industry of m-learning solution providers was quickly forming. Most of the early entrants came from existing LMSs, LCMSs and e-learning markets (i.e., development tools and content providers).

Some LCMS providers actually offer the functionality available in a format that can be accessed via USB.



Learning Content Management Systems

Although we believe that the LCMS market is distinct from the LMS market, most LMS providers have built-in or include an LCMS solution in their product offerings to address the e-learning platform need. We highly recommended that you understand your company’s content development needs, while considering an LMS strategy. Where do modern content development needs fit in the context of the LMS decision?

As companies begin to build and acquire more learning content (through in-house, outsourced resources or created by the learners themselves), an LCMS becomes a valuable tool in reducing development cycles and making content more accessible. These systems offer features for managing and publishing e-learning content, and for automating workflows for groups of developers.

Of course an LCMS is not just about content anymore. The best solutions are adept at lots of different kinds of content for many different uses.

Advanced systems support the capability to manage electronic content in multiple formats and outputs, such as online courses, presentations, instructor guides, mobile devices and printed documentation.

Today, there are basically two technology approaches when considering an LMS and LCMS:

1. The e-learning platform (mentioned in the previous section)

2. The best-of-breed approach

In the e-learning platform scenario, the buyer chooses an integrated LMS / LCMS. From the content perspective, the platform is typically used to:

• Assemble predeveloped assets and modules into a course

• Create, deliver and track assessments

• Store the metadata associated with the content

• Enable users and developers to search for content

• Provide basic content management support, such as content-staging and version control

• Provide run-time capabilities that assemble the course and track user performance

The e-learning platform is not used for content authoring – nor does it support dynamic delivery capabilities that customize the content pages for each course or user. Content is authored using other tools, and then it is imported into the e-learning platform

ANALYSIS

Wehighlyrecommended

thatyouunderstand

yourcompany’scontent

developmentneeds,while

consideringanLMSstrategy.



using the packaging guidelines of the SCORM and / or AICC specifications. This strategy is the most popular in the marketplace today – and is appropriate for organizations that do not have large content production requirements and do not need to repurpose the instruction into different media formats. Content is most always constructed using rapid development and / or general-purpose web development tools.

For companies with large, geographically dispersed teams of content contributors or large volumes of information assets, however, a separate, “best-of-breed” LCMS is likely to be the preferred choice. These companies’ requirements are more extensive than those provided by most platform products and may likely include support for a variety of information output formats. We, therefore, see many enterprise buyers selecting LCMSs separately from their LMSs – from providers such as Kenexa (OutStart), eXact Learning Solutions, Xyleme and other companies. While these providers also offer lightweight LMS products, the systems are designed to help program developers launch and manage their local programs, but are not designed to handle corporatewide learning initiatives. Hence, buyers looking for an enterprisewide solution are advised to choose an LMS separately from their best-of-breed LCMS solution.

Apart from the list mentioned for the platform solution, best-of-breed products are used to:

• Provide template-based content development tools for rapid content creation

• Build and manage structured content that can be:

o Output in multiple formats

o Reused across various training and knowledge programs

• Provide a run-time delivery environment for customized course pages and more extensive levels of training user interaction

• Create knowledge management repositories that can be used for just-in-time access of both formal and informal knowledge assets

Figure 5 illustrates how the e-learning platform incorporates some capability from both the LMS and LCMS worlds.

KEY POINT

Contentismostalways

constructedusingrapid

developmentand/or

general-purposeweb

developmenttools.



The true value of the LCMS for a modern L&D function is two-fold:

• As a business-process automation tool or as a learning-process automation system that helps the L&D function to truly optimize its processes

• As part of (and as an enabler of) the organization’s larger social learning, mobile learning and collaboration strategy

Enterprise Social Software for Learning

The use of enterprise social software tools in the enterprise is growing rapidly. These technologies are providing effective, low-cost ways for organizations to enhance the communication, collaboration and knowledge-sharing that has always taken place in organizations.

Enterprise populations lean on their own personal networks every day to solve business problems, learn new skills, increase their influence or find a mentor / friend. It makes good business sense, then, for organizations to explore the use of social networking

Figure 5: LMS, LCMS and e-Learning Suite


LMS

LCMSMoving to On-Demand

Course AdministrationUser AdministrationTraining AdministrationJob ProfilesLaunch / Track CoursesSelf-RegistrationReportingClass SchedulingContent Repository

-

Skills / CompetenciesPerformance ManagementTalent ManagementTranscriptsDomainsCertificationsAnalyticsBusiness Rules

Common Features

EnterpriseBusiness

Application

EnterpriseContent

ManagementApplication

Platform

Figure 39: LMS, LCMS and e-Learning Suite

Content AuthoringContent TemplatesAssessmentsCourse PublishingVersion ControlMultiformat OutputAsset-Based ArchitectureContent Reuse or RecycleTeam DevelopmentPersonalized ContentMetadata

Training AdministrationMoving to Talent Management

KEY POINT

Enterprisesocialsoftware

toolsareproviding

effective,low-costwaysfor

organizationstoenhance

thecommunication,

collaborationand

knowledge-sharingthat

hasalwaystakenplacein

organizations.



and collaboration platforms for many uses – with employees, extended employees (e.g., alumni and retirees), the extended enterprise (e.g., channel partners and customers). Solution providers are moving rapidly to meet this growing demand, both with standalone platforms and by adding functionality to existing offerings, like the LMS.

Please note that, exclusive to enterprise solutions, small and midsize businesses now have access to email, instant messaging, discussion and group discussions, webcasting, virtual classrooms, mobile and IP voice communications, presence awareness (e.g., is someone available online or not), activity streams (e.g., what someone is doing now), blogs and wikis, knowledge databases, and a never-ending set of new communication and collaboration systems to come.

All of these tools, which continue to grow in quantity and type every day, need to leverage the connections and security housed in the people management system. If we are going to collaborate and interact with someone, then it would be important to know who is connected to whom; who is working on what; what is the phone number, job and location of an individual; and, who is the “expert” or “subject-matter expert” (SME) on a given topic.

Vendors see this opportunity for integration, and many are rapidly building and buying collaboration solutions for their platforms. While there is no “perfect” collaboration solution in the market yet, we are increasingly seeing integrated systems for collaboration, knowledge-sharing, employee directories and a wide variety of other collaborative solutions built into (or bolted onto) the learning management platform.

If you have not yet considered collaboration and social networking a part of your HR and LMS systems strategy, now is the time. You will empower your workforce, improve collaboration and innovation, and help to transform your organization for the future.

Virtual Classroom Technology

While most LMSs have some level of integration with virtual classroom technology, many of the leading virtual classroom platforms (such as AdobeConnect and WebEx) also offer the ability to schedule, enroll, notify and track attendance for learning. Many provide support for student quizzes and assessments. Many offer support for course catalogs and almost all offer some kind of reporting capability. Some even support limited use of self-paced e-learning content within virtual classroom courses. Add all of these features – and it becomes easy to see why some smaller organizations (or individual departments of larger ones) are using their virtual classroom platforms as a light-weight learning management system, avoiding the need for a larger, more expensive system.

ANALYSIS

Whileno“perfect”

collaborationsolutionyet

exists,weexpecttosee

integratedsystemsfor

collaboration,knowledge-

sharing,employeedirectory

andawidevarietyofother

collaborativesolutionsbuilt

intotheLMSplatform.



Authoring Tools

As with the virtual classroom, most LMSs have some level of integration with the tools used to design and develop e-learning. These include presentation tools, simulation / emulation tools and multimedia tools. There are, however, several authoring tool solution providers that offer within their authoring tool the ability to manage learning content and learners. These are available as a SaaS product or as desktop software; they have the ability to deliver and track completions and assessments.

We would be remiss to not call out video content.e In the early days of e-learning, companies developed “page-turning” content with a little audio and a few interactivities to make content interesting. Today, we have an explosion of new “expert-led” video and mobile video. Some of these tools also act as a “light” LMS.

Commercial Off-the-Shelf Content Providers

Market leaders in off-the-shelf learning content, for example SkillSoft and Mindleadersf, have LMS capabilities as part of their offerings. As comprehensive learning solutions continue to increase, the COTS11 courseware providers have transitioned from the first generation of e-learning solutions (online courseware) to more mature and sophisticated stages of e-learning, which include a multimodal learning model that enables the blending of a number of different learning assets, such as performance support, interactive case studies, gaming12,g, simulations and full-motion video. Along the way, some have developed learning management platforms which may not be as robust as traditional LMSs, but distinguish themselves in simplicity, usability and a ready-to-use platform for content. These platforms can be a great starting point for companies that are beginning to offer e-learning content.

The reverse is also true. Some LMS solution providers (many that offer holistic support for a given specialty audience) offer content, services and support first, and technology second. This is happening in a number of verticals, particularly in high-compliance requirement industries.

The Massive Open Online Course (MOOC) and the LMS

Disruptive to tuition-based universities, massive open online courses (commonly known as “MOOCs”) are free, open to all and available to anyone. MOOCs are often led by professors and experts on a topic. As you can imagine, these open courses sometimes use some sort of learning management platform. This can be a hodgepodge of online

11 “COTS” stands for commercial off-the-shelf.

12 "Gamification" or game mechanics is actually an academic discipline that describes the

elements of a program or system which turn it into a “game.”



tools (such as wikis, discussion groups, microblogs13 and other social media tools) or an LMS.

The trend with MOOCs has been that these self-made systems are comprised of loosely joined pieces. However, MOOCs are potentially disruptive for corporate content providers. While a MOOC is more than a self-paced course served up on an LMS (some have said it is a model), we mention MOOCs here as a developing trend as a potential alternative to traditional content provided via an LMS.

Summary

The reports you may read of the death of the learning management system are greatly exaggerated. The global LMS market is growing – and much of the growth is coming from outside of North America, and from small and midsize companies.

The LMS market is simply in a state of transformation. The vision of integrated talent management has become a reality with many more organizations opting for “suites” that integrate everything from recruiting to performance management to learning and collaboration. At the same time, some LMS solution providers recognize that many organizations do not need integrated talent management; they made a strategic decision to stay focused on learning and are growing. Products and vendors proliferate.

The market is mature and is being reinvented by social learning tools. This has resulted in more focus on the user experience, deeper analytics capabilities within systems, SaaS dominance, mobile solutions and apps, a changing user interface, and solutions for new audiences like the extended enterprise.

Feature sets are now more extensive and rich. In fact, it is rapidly becoming nearly impossible to select a system based solely on features; most vendors have all of the features that a company needs, but are arranged differently and operate under diverse

13 “Microblogging” is the concept of short, frequently updated messages from individuals

(patterned after the website www.twitter.com) to allow people to “follow others.” It is useful

to find people and identify what they are doing, similar to the “presence awareness” available

through instant messaging.

KEY POINT

TheglobalLMSmarketis

growing–andmuchof

thegrowthiscomingfrom

outsideofNorthAmerica,

andfromsmallandmidsize

companies.

ANALYSIS

Webelievethepath

forwardonallfronts,

technologyincluded,

beginswithmovingbeyond

distinguishingbetween

typesoflearningapproaches

torecognizethatlearningis

andalwayshasbeen–

continuous.

http://www.twitter.com



assumptions. The LMS continues to evolve and organizations are moving beyond distinguishing between types of learning approaches to a recognition that a technology solution must support a deep integration of all forms of learning.

So what is the solution then? We believe the path forward on all fronts, technology included, begins with moving beyond distinguishing between types of learning approaches to recognize that learning is and always has been – continuous. At the risk of oversimplifying things, the learning technology solution must then support a deep integration of all forms of learning.

Appendix I: Application and Practice

Below is a list of actions that you can take in order to select an LMS. These are some of the foundational elements that we highly recommend to help your company in selecting the best system for your business needs.

1. Gain a high-level understanding of the learning and talent management system markets.

2. Determine the audience for the LMS and its uses.

3. Determine the organization’s need to integrate talent management or other HR processes.

4. Recognize the basic and advanced functionality of learning management systems.

5. Determine your needs for social learning and mobile learning.

Appendix II: Additional Resources

• LMS 2013: Market Data, Key Findings and Provider Landscape, October 2012

• The Talent Management Systems Primer

• The Market for Talent Management Systems 2013

• The Talent Management Systems Provider Comparisons, Market Maps and Profiles 2013

• TheHigh-ImpactLearningOrganization2012ResearchProgram,March2012

• TheCorporateLearningFactbook2012:Benchmarks,TrendsandAnalysisoftheU.S.Training Market, January 2012

• AdaptiveTalentandLearningPlatforms:HowSoftwareasaServiceisChangingMarkets for Talent and Learning Systems, February 2010

• TheLMSOperatingGuideforGlobalEnterprises,March2008



• TheNextGenerationofE-Learning:APrimer,February2011

• VirtualClassroom:Facts,PracticalAnalysis,TrendsandProviderComparison,November 2010

• High-ImpactLearningPractices:TheGuidetoModernizingYourCorporateTrainingStrategy through Social and Informal Learning, July 2009

• EnterpriseSocialSoftware2009:Facts,PracticalAnalysis,TrendsandProviderProfiles, September 2008

• TalentManagementSystems2012,November2011

• ChoosinganLMS:DifferentiatingtheNeedsoftheSMBMarket,Bersin&Associates,August 2011

• UnderstandingtheLMSRequirementsforExtendedEnterpriseLearning,Bersin&Associates, August 2012

Appendix III: Bibliography

a: For more information on the PLATO LMS, please see www.platohistory.org.

b: For more information, see Choosing an LMS: Differentiating the Needs of the SMB Market, Bersin & Associates / Janet Clarey, August 31, 2011. Available to research members at www.bersin.com/library.

c: For more information, Understanding the LMS Requirements for Extended Enterprise Learning, Bersin & Associates / Janet Clarey, August 9, 2012. Available to research members at www.bersin.com/library.

d: For more information, m-Learning: Mobile Learning Is Finally Going Mainstream – AndItIsBiggerThanYouMightThink, Bersin & Associates / David Mallon, March 2011. Available to research members at www.bersin.com/library or for purchase at www.bersin.com.

e: For more information, Virtual Client Training: Thomson Reuters Increases Reach, EfficiencyandCustomerEngagementwithOn-DemandTraining, Bersin & Associates / David Mallon and Amy French, August 2011. Available to research members at www.bersin.com/library.

f: For more information, please see the blog, “Skillsoft acquires Mindleaders: E-LearningMarketUndergoingMajorChange,” Bersin & Associates / Josh Bersin, September 15, 2012, http://www.bersin.com/Blog/post/Skillsoft-acquires-Mindleaders-- E-Learning-Market-Undergoing-Major-Change.aspx.

g: For more information, The Gamification of Corporate Human Resources, Bersin & Associates / Josh Bersin, November 3, 2011. Available to research members at www.bersin.com/library.

http://www.platohistory.org

http://www.bersin.com/library



http://www.bersin.com


http://www.bersin.com/Blog/post/Skillsoft-acquires-Mindleaders--E-Learning-Market-Undergoing-Major-Change.aspx

http://www.bersin.com/Blog/post/Skillsoft-acquires-Mindleaders--E-Learning-Market-Undergoing-Major-Change.aspx




Appendix IV: Table of Figures

Figure 1: Evolution of Learning Management Systems Since 2000 7

Figure 2: How Technology Has Changed HR Software Markets 8

Figure 3: Audience Uses for an LMS 9, 10

Figure 4: LMS Capabilities – A Comparison of Basic versus Advanced Features 11, 12, 13,14

Figure 5: LMS, LCMS and e-Learning Suite 19



Figure 16: 2012 Estimated Global LMS Market Share


SumTotal9%

SAP (ALL)8%

Oracle (ALL)7%

Cornerstone OnDemand

Saba5%

Blackboard4%

ACS (Xerox)

SkillSoft

DuPont SustainableSolutions

CERTPOINT

Healthstream

NetDimensions

CrossKnowledge

Meridian KSI

Intuition

RISCHalogen

Elsevier MC

imc Information Multimedia

Communication AG

Mindleaders

Other44%



The Bersin & Associates LMS Market Map™

As we said in The Global Market for Learning Management Systems 2013a, the LMS market is very complex. To help you to understand this market, we have created a Market Map™ (Figure 4) depicting relevant differences between solution providers with regard to product development. The purpose of this map is to help you to identify the short list of LMS providers that meet your company’s specific needs.

The map depicts a market that has become highly fragmented. Since the last time we reviewed this market, there are fewer major players and more “other” players, too.

The Providers: Market Leaders

There has been a clear consolidation of the market leaders.

Two mammoth companies, SAP and Oracle, both acquired leading cloud-based learning management solutions this year to cement their positions in the integrated talent management space. This is causing some confusion. Oracle, for example, now has several learning management solutions – Oracle PeopleSoft, Oracle E-Business Suite and Oracle Taleo (Learn.com).

SAP, with its large customer base of licensed HR and payroll customers running its HR suite, also cemented its position in the integrated talent management space.

Figure 4: Bersin & Associates Market Map™ – Product Leadership*


MZINGAKENEXA (IBM)

IMCINTUITION

LUMESSE

INTELLUM

CERTPOINT

CORNERSTONE ONDEMAND

CROSSKNOWLEDGE

HRSMARTKALLIDUS(E2TRAIN)

DUPONT SUSTAINABLE SOLUTIONS

BLACKBOARD

GEOMETRIX (TRAINING PARTNER)

ADP

NETDIMENSIONSOPENTEXT

ORACLE EBS

ORACLE PEOPLESOFT

ORACLE TALEO

PEOPLEFLUENTSABA

SILKROAD

SUCCESSFACTORS (SAP)

SKILLSOFT

SUMTOTAL

TECHNOMEDIA TEDS

TOTARA LMS

TRAINING-ORCHESTRA

Product Leadership

Product Foundation

Prod

uct

Inno

vati

on

* = Market Leader.



With SuccessFactors, SAP has a former market leader in Plateau (acquired earlier by SuccessFactors), and a social and mobile learning solution in Jam (formerly Jambok).

We saw SumTotal acquire GeoLearning this past year, making it the solution provider with the greatest global market share (nine percent). SumTotal has 3,500 company customers, totaling 43 million end-users – 15 million of whom are among the 1,700 SaaS customers, their most rapidly growing delivery method.

Saba, with its roots in e-learning plus its web-conferencing product, migrated to integrated talent management software. It has currently entered the crowded social software market with an offering that ties together collaboration tools and people-centric HR processes. It remains a great fit for large organizations anywhere in the world that require a scalable and configurable platform for global talent processes.

(Figure 1 is repeated in this section.)

Figure 5: Global Market Leaders – 2012 to 2013*

Global Market Leaders

CornerstoneOnDemand SAP(allproducts)

Oracle(allproducts) SumTotal

Saba

Source: Bersin & Associates, 2012.*These solution providers have a minimum 5% market share.

Figure 1: Major Acquisitions – 2011 to 2012

Acquiring Company Companies Acquired

Blackboard Moodlerooms(2012)andNetSpot(2012)

IBM Kenexa(2012)whichhadacquiredOutStart(2012)

Lumesse Edvantage(2011)

OpenText Operitel(2011)

Oracle Taleo(2012)

Peoplefluent Strategia(2012)

SAPSuccessFactors(2012)whichhadacquiredPlateauandJambok(2011)

SkillSoft MindLeaders(2012),ElementK(2011)

SumTotal GeoLearning(2011)



Learning Management Solutions 2013 – Vendor Profiles

SumTotal Systems

Company Overview

SumTotal Systems provides human capital management solutions that support all aspects of the workforce – hourly and professional. A pioneer in HR software, founded in 1985, the company provides learning management, talent management and workforce management solutions. As a provider of core HR, payroll and benefits, SumTotal is one of only a few whose solutions cover all of human capital management.

COMPANY SNAPSHOT

8NewEnglandExecutiveParkSuite220Burlington,Massachusetts01803800-881-2546www.sumtotalsystems.com

Year Founded:1985

Number of Employees:1,000

Size of Target Markets:NotDisclosed

Top Industries Served:BusinessServices/Consulting,Government(federal),Healthcare,Manufacturing-Durable,Retail

Geographic Presence: NorthAmerica,WesternEurope,U.S.Only

Public or Private Company: Private

Current Fiscal Year: 2012

Current Revenue: NotDisclosed

Growth Rate over Previous Fiscal Year Revenue: 90%

Number of Customers: 3,500

Three Largest Customers/Implementations and Number of Users: • Wal-MartStores–2.1millionusers• ToyotaMotorCorporation–320,000users• HSBCBank–300,000users



Products and Services

Core Strengths

Integrated HCM, Integrated Talent Management

Offerings

Services Platforms Content Tools

BenefitsAdministration AssessmentSystemAdvancede-Learning

DevelopmentCompensationData

PayrollProcessingCandidateRelations

ManagementSurvey&Assessment CompetencyLibraries

TechnologyHostingCareerManagement

SystemHealthcare

TechnologyImplementation

CompensationManagementSystem

LeadershipDevelopment

CompetencyManagementSystem

HRManagementSystem

JobBoard

JobSearchEngine

LearningAnalytics

LearningContentManagementSystem

LearningManagementSystem

MobileLearning

OnboardingSystem

PerformanceManagementSystem

PerformanceSupportSystem

SocialLearningPlatform

SocialSoftware

SuccessionManagementSystem



Market Differentiators

1. Unlike solutions which focus solely on talent management, SumTotal has developed one end-to-end solution spanning all functions of strategic human capital management.

2. While much market momentum focuses on SaaS only, SumTotal is supporting cloud, private-cloud and on-premise deployment options, allowing support for hybrid deployments as well.

3. With its acquisition of CyberShift, SumTotal launches into the world of hourly workforce management with support for modern time clock-in devices that are flexible enough to support training and employee communication. Time and attendance, and scheduling management is an area often ignored in other HCM and talent management applications.

Services Platforms Content Tools

TalentAcquisitionSystem

TalentManagementSuite

WebConference&VirtualClassroom

WorkforceAnalytics

WorkforcePlanning

(Cont`d)



Product Overview

Product Capabilities

General Functionality

System Administration User Experience Content Content

Security & Permissions

User Management

Search & Discovery

Decision SupportContent

ManagementIntegrated Content

Global Systems Support and Infrastructure

D

= No functionality in this area or not applicable.K = Limited functionality in this area. May support some use cases. = Basic functionality in this area. Will likely support most use cases.D = Advanced functionality in this area. = Complete or near complete functionality in this area per market at report publication date.

Adaptability

Application-Configurability

Application–Communicationsand

NotificationsInterface Data-Architecture

Data–CoreReporting&Analytics


Talent Modules Available

Career and Succession

Collaboration Social SoftwareCompensation Management

Learning

Performance Management

Recruiting/Talent Acquisition

Workforce Planning Talent/HR Analytics Recognition



Social Software and CollaborationVirtual

Classroom

Conversations Collaboration Connections ContentModeration

ToolsSocial

Analytics

Integrated Communication

Tools

Virtual Classroom


Integration with Talent Management

Competency Management Employee Profile Management

Competency Maintenance

Competency Assessment

Talent Integration

Competency Reporting

Employee Education and

ExperienceJob Profile

Talent Profile Review and

Analytics


Learning ManagementMobile

Learning

Course and Resource

ManagementCatalogs

Curriculum, Learning Plans & Certification Management

Learning Content

Surveys & Assessments

Enrollment & Registration Administration

eCommerceLearning Reporting

Mobile Learning




Bersin & Associates Analysis

SumTotal has 3,500 customers, totaling 43 million end-users – 15 million of whom are among the 1,700 SaaS customers, its most rapidly growing delivery method.

GeoLearning, Acero, SoftScape and CyberShift are all acquisitions within the recent past; the company has been busy in integrating the solutions – giving them not just core HR and integrated talent management (with the addition of GeoLearning), but substantial workforce management through CyberShift. Despite its variety of product sources, the application is integrated from the user’s view, easing usability and learning curves.

Recent briefings with us have demonstrated a dedication to analytics across the entire product line – something that will show the company in good stead with HR professionals. Graphs and charting ability for quick visual depiction of data runs throughout the application suite.

Its mobile applications support Androids, iPhones, BlackBerrys and iPads for online and offline learning, and audio and video integration.

We anticipate future efforts will focus on integrating more “social” features across the applications, and perhaps provide today’s lighter look and feel to the interface that prospects are beginning to anticipate.

Core HR

Position Management

Position Tracking

Self-ServiceDocument

ManagementReporting Compliance Benefits

Global Support

Organizational Charts


Performance ManagementCareer

Management

Performance Process

Management

Cascaded Goal

Management

Performance Planning

Development Planning

Performance Reviews

Performance Calibration

Support

Pay for Performance

Career Management




About UsBersin & Associates delivers proven people strategies that leaders and their organizations need to deliver exceptional business performance. Our WhatWorks® membership program gives Fortune 1000 and Global 2000 HR, talent and learning professionals the research-based information and tools they need to drive bottom-line impact for their organizations.

Members use our research-based models, tools and insights to design and implement best practice solutions, benchmark against others, and select and implement systems. A piece of Bersin & Associates research is downloaded 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.

Bersin & Associates can be reached at http://www.bersin.com, by e-mail at [email protected] or at +1-510-251-4400.

About This ResearchCopyright © 2012 Bersin & Associates. All rights reserved. WhatWorks® and related names such as Rapide-Learning:WhatWorks® and TheHigh-ImpactLearningOrganization® are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished or reused without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts.

Documents

LMS buyers guide