In 2004 the e-learning marketplace "grew up." Recent research tells us that now, more than four years into the application of internet technologies to training, as much as 20% or more of corporate training is being conducted online. These numbers are staggering: as much as $12-14 billion of total training content, services, and technology is now dedicated to e-learning. In 2003 estimates showed that approximately 16% of training was conducted via e-learning, indicating that the growth rate was nearly 30%.

Here are a few of the top trends we saw in 2004:

• The LMS market grew by 20% or more in 2004, with hosted LMS providers achieving even more substantial growth. In 2005, the fastest growing segment of the market will be in the "mid-market" - companies with 1,000 to 20,000 employees.

• The growth of rapid e-learning continues. If you are not using a PowerPoint to Flash tool today, you will be soon.

• The LCMS market is poised for growth. Now that nearly 60% of large corporations develop their own e-learning content internally, they are beginning to find that content development requires a process-based approach. This realization is breathing life into the LCMS market. We expect this market to grow rapidly and we do not believe buyers should select their LMS based on LCMS functionality.

• We see growth in video-based and character- based e-learning programs in the coming year. Recently we have run across some very compelling uses of flash-based video. It is now possible to take a fantastic instructor or celebrity and "put them online."

Call center training is a challenge for many businesses. Employees need to be trained on a wide variety of software systems that are being updated and changed regularly. One of the largest U.S. property and casualty insurers was searching for a more efficient and effective approach to train call center employees on its new web-based enterprise applications.

The company compared three approaches to the training:

1. its traditional approach of creating a duplicate software environment that allows learners to practice on the system before using the actual "production" application;
2. developing in-house simulations with HTML and JavaScript that attempt to replicate the actual application; and
3. using an enterprise application simulation tool to capture actual workflows and create simulations that mimic real world call center operations.

This case study details the differences among the three approaches and describes a new instructional strategy that, when combined with simulation-based learning, has resulted in improved proficiency among the company's call center employees.

The Oracle acquisition of Peoplesoft is final. What does this mean to the company's two (actually three) LMS strategies? Both companies have strong LMS development teams; both are focusing on similar strategies.

Should you purchase an LMS from your HRMS provider? Read our analysis of this important market and our comparison of the Oracle, Peoplesoft, and SAP LMS strategies. This report analyzed dozens of enterprise LMS implementations and gives you best practices and analysis to help you develop your enterprise Learning Management Systems strategy.