I have written previously about how this century has switched from a manufacturing centered economy to one focused on the service industry, which inherently means the quality of the people have a direct impact on the profitability of a company. Which also means that training those individuals is now a strategic objective for companies and should be reflected in the company’s investment of resources.
The Business Impact:
It has been fun to see the growing market response to HR technology and delivery, as there is a sudden reality that these types of companies are not only needed, but can generate some profit. Think about the acquisitions in the last couple of years ranging from the small (Rypple) to the pretty huge (Hewit Associates, Kenexa and Successfactors). But if you were an investor (Private Equity, or VC) are all of the good investments gone? Absolutely not! While there are several (give me a shout if you want to hear about others) – I would encourage folks to look at the learning market!
Lets start with Content:
This is starting to explode as it used to be when you were talking content – it was either make your own or buy Skillsoft (a great solution) but now, content is coming out from all over the place. Private producers, individuals, and now education institutions (e.g. Colleges, etc.). How big is this? In 2011, the industry was over $35.6 Billion in revenue. Lets just give that some perspective – that is $5 in elearning training for EVERY person in the world. And this is just the beginning, the analysts are expecting at least a 7% annual growth rate – we are looking at a $56 Billion dollar business in 2016.
Friendly thought, if this is going to be the trend with Democratized content – how easy is it for you to manage content in your current LMS?
Managing the Content:
With all of this content, there is a need to manage the distribution, curriculum development, and tracking of end user completion. And this is becoming more robust as more and more countries around the globe have regulatory requirements that involve training (e.g. Safety).
The market is ripe for some breakouts! Bersin Associates has reported that the global market has over 500 provider of learning management systems and only five have more than 4% market share. How big is this market? Expectations are that the market is at least $2.55 Billion.
The Good News – Global!
For those HR professionals who manage global organizations, the great news is that elearning is becoming more a global norm. Now there are different nuances in each region, but it is getting easier to deploy globally. An example can be seen by looking at the market share at the top!.
Looking for at TIP?
One of the current companies that is taking the market by storm is Docebo. I have had the pleasure to spend some time with them (in fact some of their research helped for this Blog) and they are hitting all of the right chords. They have a great product, broad and growing customer base, and built the business in a manner to grow.