The Research Source for Enterprise Learning
January 2006

Welcome to our January 2006 What Works in Enterprise Learning newsletter.
We are off to an exciting year with a number of new case studies, industry studies,
and our comprehensive review of the fast-growing, changing LMS market.

As you may see we have expanded our monthly newsletter to include free research, analyst comments, and links to member-only research. We welcome your feedback
on this new format.

In This Issue


Learning Management Systems 2006
LMS 2006

We just completed our largest-ever study of the rapidly-changing market for Learning Management Systems. The 145 page comprehensive report is based on more than 2,000 surveys and more than 100 customer interviews conducted in 2005, as well as detailed briefings with all major LMS vendors.

Our findings are fascinating:

  • The LMS market grew by 26% in 2005, despite mergers by some of the larger providers.
  • More and more organizations view LMS systems as corporate-wide systems, yet consolidation remains very difficult.
  • 37% of LMSs are hosted by LMS vendors or third parties. The "on-demand" LMS has become a reality.
  • Annual operating budgets range from $511,000 for organizations with 100,000 or more employees to $190,000 for organizations with 10,000 to 19,999 employees to $95,000 for organizations with 1,000 to 4,999 employees. Larger implementations are far more efficient to operate and manage.
  • The biggest challenges in LMS implementation continue to be system customization, content integration, and integration with HR and other corporate systems.

Audio Overview: Listen to Josh Bersin's summary of this report.
Non-members: Purchase now.
Research Members: Access this report online.

The research covers a vast range of topics – e-learning suites, content and system integration, implementation models, advanced features, talent and competency management, and outsourced and hosted solutions. It also includes a detailed analysis of the vendor landscape -- with vendor by vendor analysis by features, markets served, license revenue, and number of customers and sites. The report also includes in-depth profiles of 22 key vendors.

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Enhancing Customer Service at John Hancock

Enhancing Customer Service through Learning Technology at John Hancock

This new 18- page case study details how John Hancock implemented a low-cost, easy to use e-learning platform to meet increased demands for on-the-job training, regulatory compliance, and increased customer service. The 10-person performance development team, which supports 300 customer account managers, transformed learning at the business unit over a four-year period by implementing a low-cost, easy-to-use platform (Blackboard), redefining jobs, and fitting e-learning into new hire training, compliance, audit, and employee screening.

The John Hancock team:

  • Converted a labor- intensive instructor-led compliance training program to an efficient and scalable online program.
  • Used the e-learning platform's assessment system to automate the company’s audit and new hire screening process.
  • Developed a performance support solution to support client support agents.
  • Increased job satisfaction of customer account managers by saving them time and giving them ready access to timely information.

Non-members: Free download.
Research Members: Access this new case study online.

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News

Bersin & Associates Hires Robert Danna, Former RWD Technologies and General Physics Corporation Executive, to Lead Strategic Services

As VP of strategic services, Robert Danna will be responsible for a range of services offered by Bersin & Associates, including organizational assessments, strategic planning, high-impact learning organization workshops, and benchmarking and implementation planning. Read the complete news release.

Bersin & Associates Announces Comprehensive Research Study of Learning Management Systems Market

The overall LMS market is now at approximately $480M, a 26% increase in size since Bersin & Associates’ last LMS study published in June 2004. Growth is driven by the availability of proven technology, continued growth in e-learning (a 2005 Bersin & Associates survey of U.S. organizations finds 28% of training hours are now delivered online), and recognition that learning management systems do facilitate training effectiveness and efficiencies. Read the complete news release.

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Events
Bersin Events

FREE WEBINARS

Upcoming Webinars:

Missed it live? Research Members can view all recorded webinars by clicking on the links below. Not a member? Sign up for a free trial membership today.

HIGH IMPACT LEARNING ORGANIZATION WORKSHOPS

This highly acclaimed hands-on workshop, designed for CLOs, HR managers, and training directors, will show you best-practices for management, operations, and governance of corporate training. The workshop includes a pre- workshop learning organization assessment, individual and group exercises, and development of a customized action plan based on best practices. This workshop is built around the High-Impact Learning Organization research study, our keynote research study which identifies best practices among more than 300 organizations. A complete copy of this study will be provided to all attendees.

INDUSTRY CONFERENCES

Bersin & Associates analysts will be presenting research findings at these upcoming events:

  • ASTD TechKnowledge 2006: How to Harness Learning Content Management, Chris Howard [February 1, 2006 - Denver, CO]
  • Training 2006: LCMSs: What They Are and How to Know if You Need One, Chris Howard [March 8, 2006 - Orlando, FL]
  • Training 2006: Your LMS Short List: A “How To” Guide, Chris Howard [March 8, 2006 - Orlando, FL]
  • Training 2006: Integrating Performance Management and Learning Management Processes: What Works?, Leighanne DeMarzo [March 8, 2006 - Orlando, FL]

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New Member Research
Bersin Logo

Key new research studies available for members only:

Learning Management at the National Institute of Corrections

This case study details how this federal agency chose and implemented an ASP LMS solution with very limited resources. Research Members

Blended Learning Program Management: What Works

This report details the challenges, platform issues, and solutions for managing blended learning programs. Filled with examples and requirements for selecting the right solution. Research Members

How Executives Learn and Find Information

This study describes how top executives search for, locate, and use critical information -- and what role training does and does not play. Based on more than 300 surveys from top business executives. Research Members

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Analyst Corner

Josh Bersin,
President and Founder

This month we focus on the LMS market, with the launch of our LMS 2006 industry study. While learning management systems have now been around for almost ten years, the role and importance of LMS systems is changing.

Today these systems have become vital to managing the training function and their role is changing from training administration to e-learning and now to performance and talent management. If you would like to better understand talent management, read our free industry study on this important trend.

In December we had extensive briefings from all the major LMS providers. Each has unique strategies and product plans which they are aggressively pursuing.

Saba in particular has a new, aggressive product management team which is working to integrate the Centra technologies with the Saba LMS to provide an end-to-end solution for blended learning. We believe this integration could form the basis of an important new solution to the challenges of managing blended learning programs.

Selection, implementation, migration, and management of LMS and content continue to be major challenges for all learning organizations. Come to one of our workshops if you would like to learn best practices in the management and governance of learning technology.

Thoughts? Send us an email with your comments.

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