My LMS / eLearning Disruptive Technology Concept
Here’s a thought: what influence would disrupt the eLearning Learning Management System (LMS) space?
LMS: A Market Ripe For Disruption
The LMS space is still developing and nobody is really happy with what’s currently available.
What would disrupt it more than having the capability to individually address and track around 60 million accessible stateside users who would never need a traditional $15,000 to $30,000 LMS server platform installed?
How much money is that really?
According to Wikipedia’s LMS page:
In 2005, LMSs represented a fragmented $500 million market (CLO magazine[1]). The six largest LMS product companies constitute approximately 43% of the market.
In addition to the remaining smaller LMS product vendors, training outsourcing firms, enterprise resource planning vendors, and consulting firms all compete for part of the learning management market.
The potential for the LMS market is staggering. According to CLOMedia’s article "Report Shows LMS Market Growing Apace" quoting Josh Bersin:
The LMS market grew 26 percent in 2005, reaching the $500 million mark in North America, and it has the potential to grow to the $3 billion mark because Bersin estimates only a sixth of the market has been tapped.
We hate our LMS… But we need an LMS!
People are frustrated and disappointed with LMS’ in general. So they have made do with what they’ve previously purchased and probably scapegoated and fired the manager in charge of the decision.
And now they’re scouting for a wonderful brand new LMS because somehow, magically, all will be made better with the next one.
Here’s some more information from Wikipedia, backed up by raw data:
LMS buyers are less satisfied than a year ago. According to 2005 and 2006 surveys by the American Society for Training and Development (ASTD)[2], respondents that were very unsatisfied with an LMS purchase doubled and those that were very satisfied decreased by 25%.
The number that were very satisfied or satisfied edged over 50%. (About 30% were somewhat satisfied.)
Nearly one quarter of respondents intended to purchase a new LMS or outsource their LMS functionality over the next 12 months.
So according to this data which may have changed (and I don’t have the $600 to buy the 2007 survey) there is clearly a market demand for some type of LMS answer.
Answering the LMS pains… Could you do it with an ASP model?
Another thought: what would happen if corporations requiring basic customer service position skills (retail, fast food, Wal-Mart, Starbucks, etc.) could do their training online without appreciably increasing their data overhead costs? Without the cost of training kiosks within their store?
What if my proposed eLearning audience already owned the proper hardware & was already familiar with the GUI, requiring zero to little GUI based training?
All of this wouldn’t mean much without a commerce system or tight security within the framework. Factor that cost in as well and…Now imagine that it’s already been planned ahead.
There are a couple of marketable concepts I’m researching to allow this possibility. Naturally I’ll fill you all in on it later.
That’s if my concept isn’t quickly snatched up by someone who thinks it might work and they throw money at me and NDA me.
Posted by Charles in eLearning | Comment now »
