Learning management systems (LMSs) began simply as registration and record-keeping software to manage instructor-led instruction. In the late 1990s, the ability to launch and track e-learning was added. Since then, related tools such as improved reporting capability, e-commerce, and performance and competency management have been added.
A recent survey by Government Elearning! Magazine (access to the survey requires subscribing to the e-zine) indicates that approximately 50 percent of all training provided in major corporations is done through e-learning. It has become a way of life. TELUS Communications (the second largest telecom company in Canada with 25,000 employees) recorded 100,000 online learning course completions in 2004. An LMS is a requirement to manage and track this kind of volume.
There are at least 250 LMSs on the market—not including education and open-source LMSs. Many companies and educational institutions have developed their own but do not market them. There are also at least 100 learning management content systems (LCMSs), 250 course authoring tools, and 50 virtual classrooms. There are 10 to 20 major players in each category. For a comprehensive list, visit Vendors of Learning Management and E-learning Products.
Prices of LMSs vary widely from as low as $5,000 to several hundred thousand dollars (USD) depending on the features they offer and the number of people using them. Some of the simplest LMSs just provide a platform for launching and tracking e-learning.
Most major corporations now have LMSs but some are looking to change because they are not satisfied with the ones they have. More and more medium and smaller enterprises are adopting LMSs.
Like all software, LMSs evolve as the market matures. Throughout the rest of this article, I'll detail some recent trends in the LMS marketplace.
Industry Consolidation
There is an ongoing trend toward consolidation among the major vendors which began a few years ago. Several major mergers took place in 2004 and 2005. In 2004, Click2Learn and Docent merged to become SumTotal Systems. In 2005, Adobe purchased Macromedia, Saba purchased THINQ Learning Solutions and Centra, and Blackboard purchased WebCT. Blackboard's purchase of WebCT made it the single largest vendor of LMSs for the education market. In 2009, Blackboard also purchased ANGEL Learning.
In 2009, OutStart merged with Eedo and Hot Lava. OutStart's merger with Eedo strengthens its position in the LCMS market and is essentially a merger between two of the biggest players in the LCMS market. The acquisition of Hot Lava increases its mobile learning capability.
In 2008 and 2009, Mzinga expanded by purchasing KnowledgePlanet, Shared Insights, and Prospero, and began offering a virtual classroom. KnowledgePlanet allowed it to add an LMS and authoring tools, while Shared Insights and Prospero allowed it to add Web 2.0 tools. Mzinga now offers a suite of social media solutions that includes learning management, learning, marketing, and customer support.
While there are still many minor players in the market, look for more mergers and acquisitions among the major vendors.
Web 2.0
With the popularity of Web 2.0 and social networking tools like MySpace, Facebook, YouTube, and Twitter, there has been great demand to include similar tools to help people make connections internally in companies. In spite of some unresolved issues concerning security and incorrect information, they have been widely accepted. In the Government Elearning! Magazine survey, 40 percent of surveyed enterprises are already using blogs and forums. LMS vendors have been quick to add these kinds of tools to their features by providing connections with experts, mentors, and communities of practice. This improves the efficiency of informal learning as well as creating a record which can be put into a searchable database. It is seen as a way of facilitating informal learning or, in some cases, giving it structure or controlling it. Informal learning is unstructured and often occurs between individuals in conversations. It has been estimated that the great majority (upwards of 70 percent) of learning in the workplace is informal (see Participation in Adult Education and Lifelong Learning: 2000-01). Mzinga bases its whole offering on social networking while Saba offers Saba Social; and OutStart, as a result of its purchase of Participate in 2004, now offers social business software.
Talent Management
The major LMS vendors have long offered performance management and competency management tools. Performance management is the process of setting goals, self-assessment, manager assessment, peer-assessment (also called 360 degree assessments), coaching, development planning, and evaluation. Competencies are the collections of skills, knowledge, and attitudes necessary to do a specific job. Once a company has developed the descriptions of the competencies desired for each position in the company, they are better able to identify who the right people are for each position, provide training, and enable employees to achieve their development and occupational goals. Competency management tools enable both the employer and the employee to track progress.
Recently, the larger LMS providers have expanded into talent management, including career development and succession planning, performance appraisals, recruitment, compensation management, and workforce planning. These are used as planning tools related to training and learning and do not typically provide the day to day transaction processing of human resource (HR) systems.
A recent survey by Government Elearning! Magazine (access to the survey requires subscribing to the e-zine) indicates that approximately 50 percent of all training provided in major corporations is done through e-learning. It has become a way of life. TELUS Communications (the second largest telecom company in Canada with 25,000 employees) recorded 100,000 online learning course completions in 2004. An LMS is a requirement to manage and track this kind of volume.
There are at least 250 LMSs on the market—not including education and open-source LMSs. Many companies and educational institutions have developed their own but do not market them. There are also at least 100 learning management content systems (LCMSs), 250 course authoring tools, and 50 virtual classrooms. There are 10 to 20 major players in each category. For a comprehensive list, visit Vendors of Learning Management and E-learning Products.
Prices of LMSs vary widely from as low as $5,000 to several hundred thousand dollars (USD) depending on the features they offer and the number of people using them. Some of the simplest LMSs just provide a platform for launching and tracking e-learning.
Most major corporations now have LMSs but some are looking to change because they are not satisfied with the ones they have. More and more medium and smaller enterprises are adopting LMSs.
Like all software, LMSs evolve as the market matures. Throughout the rest of this article, I'll detail some recent trends in the LMS marketplace.
Industry Consolidation
There is an ongoing trend toward consolidation among the major vendors which began a few years ago. Several major mergers took place in 2004 and 2005. In 2004, Click2Learn and Docent merged to become SumTotal Systems. In 2005, Adobe purchased Macromedia, Saba purchased THINQ Learning Solutions and Centra, and Blackboard purchased WebCT. Blackboard's purchase of WebCT made it the single largest vendor of LMSs for the education market. In 2009, Blackboard also purchased ANGEL Learning.
In 2009, OutStart merged with Eedo and Hot Lava. OutStart's merger with Eedo strengthens its position in the LCMS market and is essentially a merger between two of the biggest players in the LCMS market. The acquisition of Hot Lava increases its mobile learning capability.
In 2008 and 2009, Mzinga expanded by purchasing KnowledgePlanet, Shared Insights, and Prospero, and began offering a virtual classroom. KnowledgePlanet allowed it to add an LMS and authoring tools, while Shared Insights and Prospero allowed it to add Web 2.0 tools. Mzinga now offers a suite of social media solutions that includes learning management, learning, marketing, and customer support.
While there are still many minor players in the market, look for more mergers and acquisitions among the major vendors.
Web 2.0
With the popularity of Web 2.0 and social networking tools like MySpace, Facebook, YouTube, and Twitter, there has been great demand to include similar tools to help people make connections internally in companies. In spite of some unresolved issues concerning security and incorrect information, they have been widely accepted. In the Government Elearning! Magazine survey, 40 percent of surveyed enterprises are already using blogs and forums. LMS vendors have been quick to add these kinds of tools to their features by providing connections with experts, mentors, and communities of practice. This improves the efficiency of informal learning as well as creating a record which can be put into a searchable database. It is seen as a way of facilitating informal learning or, in some cases, giving it structure or controlling it. Informal learning is unstructured and often occurs between individuals in conversations. It has been estimated that the great majority (upwards of 70 percent) of learning in the workplace is informal (see Participation in Adult Education and Lifelong Learning: 2000-01). Mzinga bases its whole offering on social networking while Saba offers Saba Social; and OutStart, as a result of its purchase of Participate in 2004, now offers social business software.
Talent Management
The major LMS vendors have long offered performance management and competency management tools. Performance management is the process of setting goals, self-assessment, manager assessment, peer-assessment (also called 360 degree assessments), coaching, development planning, and evaluation. Competencies are the collections of skills, knowledge, and attitudes necessary to do a specific job. Once a company has developed the descriptions of the competencies desired for each position in the company, they are better able to identify who the right people are for each position, provide training, and enable employees to achieve their development and occupational goals. Competency management tools enable both the employer and the employee to track progress.
Recently, the larger LMS providers have expanded into talent management, including career development and succession planning, performance appraisals, recruitment, compensation management, and workforce planning. These are used as planning tools related to training and learning and do not typically provide the day to day transaction processing of human resource (HR) systems.
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