0515OLL_cvr 4/21/00 2:22 PM Page Right-hand page Story: 0515OLL_cvr Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION F00XXX1V2 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION E-LEARNING STRATEGIES for executive education and corporate training E-learning: A Revolution in the Way People Learn S5 Thanks to the Internet, e-learning has reached a whole new level: it’s interactive, engaging, and available anytime, anywhere Bullish Outlook for the Online Learning Market S10 This market is poised to boom By the year 2003, the Gartner Group predicts it could hit $22 billion annually The International Potential S14 Entire countries – including the United Arab Emirates – are using online learning to upgrade the skills of their national workforces Three Major Market Segments of the Online Learning Industry S16 Broadly speaking, the online learning market breaks down into content firms, learning service firms, and technology providers Some Stumbling Blocks Remain S20 Online learning is still a young, evolving industry, and has to address issues such as standards, technological limitations and pricing models How to Choose an Online Learning Provider S24 Experts offer criteria for selecting the right online learning provider for your organization The Year of the IPO S26 A number of top online learning companies will go public this year, and Wall Street is taking an active interest Uses That Go Far Beyond Training S30 Online learning is not only key to maintaining a well-trained workforce, it can be used to leverage the intellectual capital of the entire firm Determining Whether Web-based Training Is Right for You S32 Not all training materials are suited for the online medium – nor are all organizations equipped to implement such a system Building the Best E-learning Team S38 Once you’ve decided to put in place an online learning program, you need to assemble the proper team to run it successfully A Market Whose Time Has Come S40 Thanks to technological innovation, coupled with content that has reached new levels of excellence, online learning has become an imperative for business success Learning Portals: An Important Trend in Online Learning S42 Elliott Masie, a respected international authority in technology and learning, talks about centralized Web sites that aggregate a company’s training information Online Learning Industry Overview S44 A discussion by industry expert John Bucher How Digital Learning Differs in Europe S54 Attitudes and expectations vary widely from one sector to another President Clinton Gives Major Policy Address About E-learning S56 Addressing an audience of top high-tech executives in March, Clinton discusses the need to make online learning a top national priority Web Directory S59 www.fortunesections.com F00XXX1V2 S4 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page Right-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION REVOLUTIONIZING CORPORATE TRAINING AND STRATEGY A Revolution Is Under Way — A Revolution in the Way People Learn Over the course of hundreds of years, since the 12th century in Italy when universities first came into being, people became accustomed to the notion of education taking place in a classroom, with an instructor – presumably an expert – lecturing a group of students Indeed, up until fairly recent times, education was conducted almost exclusively in just that format – whether it was in the context of a university, a corporation, a government entity, or a nonprofit group But thanks to technology, coupled with the explosion of knowledge in the information age, the notion of a traditional classroom and a group of students taught by a teacher is becoming a bit quaint – perhaps even outmoded, in many instances The old way of doing things is just too slow and too costly; furthermore, given the short shelf life of information in our current era, knowledge can quickly become obsolete by the time it is printed in a book or a training manual Also, qualified teachers – especially in subjects like information technology – are in short supply And, in this era of globalization, many organizations must deal with the issues of training a farflung workforce, speaking different languages, scattered around the world Thus, a whole new way of teaching people had to come about And so it has: The marriage of technology and learning now allows people to be taught from afar, using any number of techniques, including interactive courses delivered on the World Wide Web, via video conferencing systems, or by way of multimedia CD-ROMs But probably the hottest method of them all involves the Internet The development of the Internet has taken technology and learning to a whole new level About a decade ago, there were the first, crude attempts at “distance learning,” which means using various methods to teach people who are widely dispersed geographically This was generally done by using a video to broadcast a lecture In addition, there were early attempts at computer-based learning, which consisted of merely throwing up text on the computer screen Frankly, most of these approaches ended up being rather dull “A lot of the early e-books simply looked like poor-quality books,” says Clark Aldrich, research director at the Gartner Group, who is writing a book about evolution of the online learning industry He likens the debut of distance learning to the introduction of plastic to the marketplace When plastic first came out, its creators wanted it to be a substitute for wood, and consequently made it brown, in wood-grain patterns; but it invariably ended up looking worse than the wood it was trying to replace Then the next generation S5 F00XXX1V2 www.fortunesections.com CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION of designers began looking at plastic through fresh of the Internet, such as interactivity, chat rooms, eyes “They played to its strengths,” notes Aldrich and online communities; and it’s entertaining, “They made it all different colors They molded in making use of music, audio, animation, and even into different shapes Plastic never replaced wood, Hollywood-style cinematic experiences Its probut successful designers know how to use each ponents point out that those who partake of medium for what it is good for.” online learning retain as much, or more, cogniAldrich thinks the same thing holds true for tively than those who are taught in traditional online learning It’s no longer trying to ape the classroom settings And there are techniques now print world; instead, it’s using to manage corporate online technology to transform not learning systems, to assess Online learning is only the delivery mechanism of students before and after becoming increasingly the courses, but also the conthey take the courses, and tent, in new and vibrant ways to calculate the return on fine-tuned; it’s leveraging never before seen investment (ROI) from such the unique attributes of It’s allowing companies to a venture the Internet, such as deliver “just-in-time” training The cost savings alone are interactivity, chat rooms, to sales professionals who may compelling Industry experts have only an hour here or there say that online learning costs and online communities; in a busy day to some on average about half as and it’s entertaining, studying about the latest prodmuch as traditional classroom making use of music, ucts that their firm makes It training That doesn’t even audio, animation, and allows software engineers to include the more intangible keep up with the latest applicabenefits, such as the opportueven Hollywood-style tions in information technology, nity cost of not having to send cinematic experiences clicking and pointing at the large numbers of employees computer screen, all at their away from their jobs at a desktops, without having to physical training site for wade through a dense technical manual Instead, several days Nor does it include the increased they can learn at their own pace, whenever and competitive advantages that companies derive from wherever it’s convenient – whether it be at home, having a well-trained workforce that’s up to date on on an airplane, or at the office Nor employees all the latest trends, collaborating with one another have to fly off to a conference for three days for and sharing information throughout the company a training session, costing their employer huge Today’s Web-savvy online learners can not only amounts of money in travel and lodging as well access their interactive, multimedia studies from as the opportunity cost of having the employees remote locations, but they can also build online away from their posts for several days communities, swapping questions and answers Online learning is becoming increasingly with their tutors and fellow students via e-mail fine-tuned; it’s leveraging the unique attributes and bulletin boards Ultimately, online learning Ninth House Network N inth House Network believes learning should be a lifelong, engaging experience Delivering multiple channels of interactive programming right to the user’s desktop, Ninth House Network provides a safe environment to engage in interactive business scenarios that simulate real-world situations It is the only broadband media network for corporate e-learning that uses storytelling and the latest in media technology to create an interactive, personalized, cinematic e-learning experience for employees at all levels The company melds instant advice, personalized virtual mentors, www.fortunesections.com F00XXX1V2 and Hollywood-style role-playing to teach employees critical business and communication skills In each program, participants test their business acumen by making decisions for one of the program’s characters struggling with a particular business problem All the programs offer immediate feedback on performance and show the results of decisions made by the user Ninth House Network helps organizations such as First Union National Bank, Insight, and Empire Blue Cross and Blue Shield leverage individual knowledge into a sustainable competitive advantage through the creation of a highly effective workforce Ninth House Network partners with respected business thinkers such as Tom Peters, Ken Blanchard, Larraine Segil, and Peter Senge to continuously expand program content Recently, Ninth House Network announced it raised $40 million in second-round equity financing The funding, which made it the 10th largest equity deal of 1999, was led by Chase Capital Partners and included Merrill Lynch, Chase H & Q, Arena Capital, and others www.ninthhouse.com 1.800.577.8887 S8 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page 10 Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION can make possible successful “knowledge management”; that is, using technology to leverage the intellectual capital of the entire company, which, in turn, leads to increased productivity, shorter time to market, and superior competitive advantage investment firm of W R Hambrecht & Co Weggen has just written a new report about the industry entitled “Corporate E-Learning: Exploring a New Frontier,” which can be viewed online at the firm’s Web site: www.wrhambrecht.com In the report, she notes several major factors that are driving the growth in online learning (see graphic, page S14) First, the U.S economy is evolving into a knowledge-based economy, Bullish Outlook for the Market Online learning is projected to boom in the near future Corporations already spend $66 billion a year on training, about 20 percent of which is spent on e-learning, and 80 percent on traditional classroom instruction However, Corporate University Xchange, a New York City-based organization, says that by 2003, that figure is expected to shift to 40 percent for online learning and 60 percent for traditional classroom instruction, as corporations increasingly embrace the new technology (see chart, right) “While the market is currently relatively small and in an early stage, it is poised to explode,” writes Cornelia Weggen, research analyst at the which, in Weggen’s words, “puts a premium on intellectual capital.” In this setting, lifelong learning is not just a buzzword: it’s “an imperative.” Secondly, a paradigm shift is taking place in the way education is viewed and delivered Business success “depends more and more on high-quality employee performance, which in turn requires high-quality training,” Weggen says Thirdly, there are huge knowledge gaps in the education system that demand reform Weggen notes that U.S students lag behind students from other industrialized nations in crucial areas such as mathematics and science Not to mention the fact that certain segments of the American workforce lack basic literacy skills According to the U.S Department of Labor, more than 40 percent of the U.S labor force performs at the two lowest levels on government literacy scales Warns the Hambrecht report: “The chasm between the higher demands of a knowledge economy and the educational status of the workforce is deep and must be addressed if the U.S is to remain competitive internationally.” Learnframe L earnframe, formerly Pinnacle Multimedia, is quickly becoming the framework of choice for companies launching e-learning programs, as well as integrators seeking to provide customers with a complete and robust solution Learnframe offers a fully integrated e-learning solution that manages all aspects of learning with the Pinnacle Learning Manager, the leading learning management system (LMS) This powerful infrastructure automatically connects to nearly 11,000 computer-based training (CBT) titles from 60-plus vendors, builds corporate universities, and hosts the full spectrum of e-learning technologies Learnframe also offers a vast library of training materials, including CBT, video, text, and more Customers such as Rockwell Collins, Honeywell, Abbott Labs, Novell, and Intraware use Learnframe to drive their training programs www.learnframe.com 1.800.738.9800 www.fortunesections.com F00XXX1V2 S10 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page 14 Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION (see excerpts, pages S56-S58) Already, more than 90 percent of American schools have Internet access, and the rest are targeted to be put online in the near future More than a third of U.S higher education institutions offer online courses – Harvard, U.C Berkeley, Stanford, and New York University among them – and some are moving to offer full accredited degrees on the Net, too, in a full array of subjects The academic sector – in and of itself – will be a huge market for this industry In the United States, the education and training sector is second only to health care as a percentage of gross national product The total education market is a whopping $772 billion in the United States, or percent of GNP Thus, corporations will compete fiercely with one another for skilled workers, especially in an era of unemployment rates at historical lows According to PricewaterhouseCoopers, 70 percent of the world’s 1,000 top-tier companies cite lack of trained employees as their number one barrier to sustaining growth Not only will corporations invest in the field, but also governments, nonprofit organizations, universities, and schools from grades K through 12 On March 3, President Bill Clinton gave a major policy address at a forum sponsored by the Aspen Institute in which he stressed that online learning is a major national initiative in America’s schools The International Potential And it’s going global Worldwide, the education market is currently worth $2.1 trillion, according to W R Hambrecht & Co The potential for online VCampus T hroughout its 130-year history, Graybar Electric, an independent, employee-owned distributor of electrical and communications/data products, has earned a reputation for quality products and value-added customer service because of its commitment to employee training Faced with a growing marketplace and increasing specialization, the company recognized the need to expand its employee educational offering and streamline its delivery Graybar went to VCampus ® for help in creating its own online virtual campus In addition to offering the company its library of www.fortunesections.com F00XXX1V2 more than 300 Web-based courses, VCampus has allowed Graybar to create its own courses using its Courseware Construction Set® Today, more than 9,000 Graybar employees at 282 locations have access to the company’s virtual campus; many of those employees have taken three or more courses Graybar’s ability to serve its customers is maximized through the use of the VCampus platform Headquartered in Reston, Virginia, VCampus (NASDAQ: VCMP) is an application service provider (ASP) for the e-learning market The company hosts, manages, and creates virtual campuses for corporations, academic institutions, and govern- ment agencies, enabling them to provide their own employees, students, and customers with global distance learning The company offers a complete outsourced solution using its VCampus 2.5 distributed learning platform The remotely hosted components allow for the enrollment, registration, teaching, tracking, testing, grading, and certification of distance learners For more information, call 800-9159298, or visit the VCampus Web site at http://www.vcampus.com www.vcampus.com 1.877.9VCAMPUS (8226787) S14 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page 16 Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION learning around the world is vast, according to Other industry sources also predict high growth many industry leaders Consider this scenario, in the industry, albeit at a somewhat more restrained envisioned by Larry Ellison, CEO of Oracle, speaking pace than Aldrich’s forecast Nevertheless, the before the 1998 World Congress on Information numbers are still huge Cushing Anderson, program Technology in Fairfax, Virginia: “One day, a man manager for learning services at IDC, an industry in rural China will be able to get a master’s research firm, predicts that the U.S corporate degree from MIT online, then start a business market for e-learning will exceed $11 billion by in cyberspace – all without leaving his village.” 2003, representing a compound annual growth Quite apart from these futuristic scenarios, there rate of 83 percent from 1998 to 2003 “While are concrete, real-world examples e-learning still faces some obstaof online learning being utilized cles, vendors without an e-learning “While e-learning still around the globe Elliott Masie, strategy will lose share to their faces some obstacles, president of a think tank called The competitors,” writes Anderson in MASIE Center and guru in the his recent forecast for the market vendors without an online learning field for almost By way of definition, IDC defines e-learning strategy three decades, travels the world e-learning as the asynchronous or will lose share to conducting seminars about the revsynchronous (real-time) delivery their competitors.” olution in technology and learning of training and education over the Recently, he was in Abu Dhabi, the Internet to an end user’s computer capital of the United Arab Emirates Anderson also predicts that in and a center of information technology training in 2003 the non-IT learning share of the market will the Middle East, where he gave the keynote address surpass IT e-learning for the first time (see chart, at the first Middle East Workforce and Human page S18) Quite beyond simply teaching people Resources Conference Reports Masie: “Online computer skills, online learning is evolving to learning and distance learning is seen as a mustinclude a whole array of subjects, including what have for them to take a leadership role in the are known as “soft skills” at corporations This region There was no need to build the case for includes course work in such areas as business IT training in their country They ‘get it’ and are writing and communication, or how to invest funds using skill development as a national strategy.” contributed by your company’s retirement plan At the Gartner Group, Clark Aldrich is predicting that the online learning business could soar from Three Major Market its current $1.5 billion level annually to at least $22 Segments of the Industry billion by 2003 “There’s no ‘inherent’ limit to the The online learning industry has three major market market size of this industry,” he says “There is such segments, according to IDC First are “content” a capacity to absorb good courses – not just from organizations, consisting of firms that furnish course corporations, but from other groups, including the structure, multimedia (graphics, video, sound, and elderly, high school students, not to mention the vast animation), simulations, testing, and assessments populations of countries such as India and China.” Hewlett-Packard Co T he e-learning landscape is replete with companies seeking ways to transfer skills and exchange knowledge with employees, business partners, and customers So how you choose the right e-learning provider? Here are some key questions to ask: • Do you want to maintain your own learning infrastructure or have an external provider handle maintenance, uptime, and scalability? • Once you have access to a virtual classroom, will your provider offer consulting services to make your class leaders more effective? • Will your provider offer content and assess- www.fortunesections.com F00XXX1V2 ment services to ensure that your curriculum matches your employees’ needs? • If you’re a dot-com company, will your provider invest in you by offering special financing and revenue sharing plans? • Can your provider offer traditional classroom training globally and help you develop an integrated learning solution? • Can your provider supply a readily available, hosted virtual classroom? Hewlett-Packard believes that some of the greatest factors in determining e-learning success are the additional consulting and value-added services that accompany a virtual classroom These services speed implementation and better prepare you to deal with issues like classroom management, technical support, and integration with legacy learning applications Ask any e-learning providers you are considering what extra services they offer and if they can provide a total solution to meet your needs To pose these questions to us, visit our Internet site at www.hp.com/e-learning or call us at 1.800.333.0223 or +1.650.691.3902 www.hp.com/e-learning 1.800.440.3022 S16 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page 18 Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION solutions category does not include hardware and network infrastructure such as routers and firewalls Cushing Anderson at IDC predicts that “content will be king, and will garner the greatest share of the market” during the next five years Learning services will be the fastestgrowing sector of the e-learning industry, in his view Furthermore, his forecast says that delivery solutions will account for a less significant portion of the market over time, “as customers shift toward increased spending on content and services, such as course development, administration, and maintenance.” He continues: “Tools will become a commodity as the industry consolidates around particular authoring, management systems, and synchronous learning solutions In addition, we anticipate these tools to be embedded within end-to-end e-learning solutions Obstacles to e-learning market opportunities will become less formidable in the near term Specifically, Y2K time and budget constraints will subside in 2000, vendors will continue to enhance their course offerings in digestible ‘chunks’ – called ‘chunking’ – for more interactivity, and more content will be This includes both off-the-shelf as well as specially developed, customized applications Second are “learning services” firms, which provide needs assessments, program-building components – content design, development and programming, technical and systems integration, site management and hosting, maintenance, and online mentoring Third are “delivery solutions” companies, which sell technologies associated with e-learning, including training, authoring tools, course management systems, collaborative software and virtual classrooms, and add-on tools The delivery Experient Technologies W ith more than 6,000 field representatives, Ventiv Health, Inc., the industry leader in outsourced sales and marketing for pharmaceutical companies, faced a challenge in providing the latest knowledge to its sales force With new products debuting faster than ever from clients who invested millions in R&D, Ventiv needed a knowledge management and training solution to remain the market leader Experient Technologies developed a comprehensive plan to ensure that Ventiv’s sales force had access to real-time training and news about www.fortunesections.com F00XXX1V2 their products Through Experient’s unique e-learning delivery management system utilizing its Calypso technology, Ventiv sales representatives could access information through their laptop computers or handheld devices, and then disconnect from the Internet, as needed, while doing course work “The ability for our sales force to tap up-todate training from the Web while having all activities and results recorded offline for retrieval later by our training manager was a major decision in selecting Experient,” says Stephen Cottrell, vice president of marketing at Ventiv In addition to its online/offline capability, Experient’s e-learning system translates any content into its environment and manages a company’s curriculum and employee learning activities “In today’s knowledge economy, businesses need to ensure optimal utilization of their personnel to make a profit,” says Michael Glotz, CEO of Experient “Providing a way to develop skilled, motivated and loyal knowledge workers in the fastest, most flexible and cost-effective manner possible is what Experient offers.” www.experient.com 804.359.6888 S18 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:23 PM Page 20 Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION converted to or originate in Internet-ready formats.” Anderson’s study, entitled “IDC’s Fifth Annual U.S Training and Education Industry Survey, 1999,” utilized material from interviews with over 200 corporate purchasers of training and more than 40 providers of training content, learning services, or delivery solutions development As matters now stand, organizations are building significant learning projects in “closed and proprietary systems,” he points out As a result, he says, “Their course development investment may not be able to be leveraged to other authoring or distribution agents.” A second major area that needs work involves piloting and experimentation Organizations will be investing tens of millions of dollars in the development of intranetbased learning delivery in the near future However, there is little research on the impact or effectiveness of such efforts Masie urges companies to take the time to run pilots on these programs and evaluate them Still another matter to be overcome is getting used to the new images and new metaphors online learning is creating Most corporate trainers come out of the traditional classroom environment, and their frame of reference is that of classes, instructors, lessons, and modules But business managers take a much more performance-oriented approach to online learning They want to know its impact on the bottom line “They are interested in small chunks of learning, support for single tasks, and access to knowledge and expertise rather Some Stumbling Blocks Remain Nonetheless, there are hurdles that still must be surmounted Experts say online will never completely replace classroom instruction; rather, it will exist side-by-side with and complement brick-andmortar education Plus, there is sometimes a “generation gap” in terms of its acceptance among participants Some older people – say, over age 40 – prefer traditional classroom training, because that is what they were used to growing up, whereas younger people, reared on the Net and personal computers, tend to be more comfortable with online learning Moreover, according to Elliott Masie, there are structural issues that the online learning industry needs to work out Among these: There are currently no standards for online learning Learn2.com, Inc I n March this year, Honeywell (NYSE: HON) selected Learn2.com (NASDAQ: LTWO), a leading provider of e-learning solutions, to deliver Web-based learning solutions to Honeywell’s 120,000 employees worldwide “At Honeywell, our e-learning initiatives reflect our belief that providing employees with the means to efficiently and effectively learn new skills gives us an important competitive advantage,” says Dennis Zeleny, vice president of human resources at Honeywell “We chose to partner with Learn2.com for this service because Web technology development is one of their core competencies www.fortunesections.com F00XXX1V2 Their hosted learning solutions result in both bandwidth-friendly and user-friendly streaming multimedia, which is extremely important when supporting a global workforce Our partnership with Learn2.com fulfills our corporate vision to leverage Internet technologies, which will ultimately drive growth and productivity in the new Honeywell.” Honeywell is a $24 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; automotive products; power generation systems; specialty chemicals; and fibers; plastics; and electronic and advanced materials Stephen Gott, president and chief executive officer of Learn2.com, says the company has equally strong sales both in the business-to-business (b-to-b) and business-to-consumer (b-to-c) arenas Gott attributes the company’s success to Learn2.com’s engaging and interactive courseware, patented technologies, innovative products such as the Learn2.com SmartCard™ and the Learn2.com PerformanceMotivatorSM, and a wide and varied distribution network www.learn2.com 1.800.214.8000 S20 CYAN MAG YELO BLACK 0515OLL_2-13 4/21/00 2:24 PM Page 22 Left-hand page Story: 0515OLL_2-14 Page: 10 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION than faculty and lesson plans,” says Masie “Trainers should listen clearly to the business unit mantra,” because the business units will be the ones calling the tune Here’s just one example of how “chunking” information can work in the online world At the online learning firm of click2learn.com, it’s possible to buy books online, in the format of a book, or a videotape, or an online synchronous course But the company wants to carry it a step further, and “chunk” books online – that is, enable consumers to buy a single chapter of a book, rather than the entire volume For busy professionals who need just a specific piece of information, this makes eminently good sense In an era of information overload, why slog through the entire work, after all? Why not just cut to the chase, and read just the section that you need to? Or take another example: Mark Cavender, managing director of The Chasm Group, a consulting firm that advises technology companies about strategic marketing, says he’s currently working on a project with more than 100 management gurus He’s going to break their most compelling, state-of-the-art advice to business executives down into 30-second-to-five-minute nuggets of information and put it into a search engine with a format like “Ask Jeeves.” You type in your question or a phrase about the piece of information you’re seeking, and the system will take you exactly where you need to go – instantly “This is learning on demand, where you need it, when you need it,” says Cavender, “as opposed to just paving the cow path.” There are other issues that loom large before online learning will fully mature, says Elliott Masie People will have to be trained in new skills to manage and deploy online learning systems in organizations Already, many large companies have created positions of “chief learning officer” or “chief knowledge officer,” that may oversee this function, while firms with a virtual corporate university often have a “dean” who runs the operation Plus, there are some technological matters that need ironing out Bandwidth is an issue for many companies – that is, having sufficiently fat pipes through which to transmit the online information at high speeds to large numbers of people dispersed globally Experts say that in a couple of years, however, the bandwidth issue will be ISOPIA B CE Nexxia, one of Canada’s leading Internet protocol (IP) and broadband service providers, needed to build a state-of-the-art Internet training solution for its sales force The company, a part of Bell Canada, realized that a well-trained sales force was key to success in the telecommunications industry So they hired ISOPIA Interactive Network, Inc., a Toronto-based provider of Internet learning solutions Josie Scioli, vice president of sales operations for BCE Nexxia, says, “ISOPIA offered the most cost-effective, flexible solution with the speediest time to market.” BCE Nexxia has www.fortunesections.com F00XXX1V2 about 400 sales professionals dispersed across Canada, who call on the 500 largest corporations in the country ISOPIA provided BCE Nexxia with key components to create an Internet-based training solution Their learning management system set up a corporate learning portal so BCE Nexxia’s employees could have an instantaneous, integrated “one-stop” solution Plus, it was cost-effective Scioli said the online system cost about 50 percent less than traditional classroom instruction In addition, because online training takes much less time than traditional classroom instruction, “this frees the sales professional to focus more on their customers and generate more revenue,” says Scioli She points out that in, general, material that takes one day to teach in a traditional classroom can be compressed to just two hours in an online training session “We intend to expand the Nexxia Learning Network in the future,” says Scioli “It’s a key competitive tool in our industry.” www.isopia.com 416.964.2001 S22 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 38 Left-hand page Story: 0515OLL_15-34 Page: 19 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION Building the Best E-learning Team Companies that put in place an e-learning initiative need skilled professionals to help them successfully run the program Depending on the size of the organization and the scope of the e-learning initiative, the number of people needed could range from several up to project teams of more than 40 These groups of professionals can be developed in-house at companies, or else they can outsource some of these responsibilities, and rely on their online learning vendors to carry out these functions for them To implement Web-based training, Brandon Hall suggests that, at a minimum, companies need a project manager capable of dealing with diverse work styles and personalities; an instructional designer familiar with computerdelivered instruction; a programmer or author to use the authoring tool; a graphic artist; a subject matter expert; a Web master for maintaining the program on the server; and someone who can obtain funding for Web training from management Thanks to innovations in the industry, it’s getting easier to administer large, complex e-learning systems During the last two years, which have seen a dramatic increase in online training systems, software developers have begun to offer betterintegrated packages that handle increasingly broad functions These programs borrow some of their functionality from software designed for academia, says Hall, “but they are clearly tailored and aimed at commercial enterprises (primarily large or midrange companies).” He refers to them as “learning management systems” (LMS’s), and they usually have features that enable people to transfer and assemble various elements of course work, present the work to students, and test and record student progress The LMS has features to make the system easy to administer, and some can be integrated with other types of computer systems at a company Associated with this is a trend for organizations to aggregate all their online learning course work and related material in a single “learning portal”– a site that allows “one-stop” shopping for employees, customers, and others who want to access the information Once the data is centralized at one site, it’s also easier to monitor and assess “Many large companies have traditionally had fragmented training departments But it’s to the company’s advantage to create the biggest learning portal, and centralize corporate learning under one umbrella,” says Jeanne Meister, president of Corporate University Xchange (CUX), a New York click2learn.com, Inc N YUonline brings courses from the New York City campus of a leading university to the global business community, and to students around the world NYUonline’s mission is to leverage the brand and content from New York University – one of the country’s best-regarded institutions of higher education – and make that content accessible from any location in the world through the Internet NYUonline offers career-focused courses, certificate programs, and knowledge management consulting to companies and individuals By making the courses available over the Internet, the traditional www.fortunesections.com F00XXX1V2 barriers to training – such as travel, scheduling, and cost – are alleviated Working with the click2learn.com Professional Services Group, NYUonline is building Web courses using click2learn.com’s state-of-the-art Rapid e-Learning Development System (REDS) By using REDS, click2learn.com (NASDAQ: CLKS) rapidly built a curriculum of Web-based content that consisted of over 50 hours of online material The courseware, which will be delivered entirely through a standard Web browser, will be managed by click2learn.com’s Ingenium, the industry’s leading learning management system NYUonline’s courseware combines course content available anytime and anywhere with some live interaction with subject experts NYUonline students can thereby take classes whenever and wherever it is most convenient “We chose click2learn.com because they offered a fully integrated solution combining the best-in-breed products and services with the capability to scale production for large volume, high quality, and cost-effectiveness,” says Gordon Macomber, president and CEO of NYUonline www.click2learn.com 1.800.448.6543 S38 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 40 Left-hand page Story: 0515OLL_15-34 Page: 20 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION City-based corporate education research and consulting firm that assists organizations in optimizing their training resources Various types of learning portals have sprung up to meet different corporate needs (see page S42) The best systems, in Meister’s view, will be those that combine the right technology with customer support and branding for the end user between a two-hour online session and a two-hour classroom session covering the same topic, they would prefer the online session While most e-learners participated in their course from their desk at work, nearly two-thirds indicated that they would have preferred to learn from home And e-learning – contrary to some people’s beliefs – was not a solitary pursuit E-learners interacted with each other both through face-to-face meetings and on the telephone, according What Do Online Learners Think about to CUX Plus, almost half of the “The next big killer e-learners said they invited a friend Their Experience? application for the over to take an online course with them Because online training is a relaInternet is going to Meanwhile, Internet-based traintively new field, there’s not a lot of be education ing got a big thumbs-up from data available about what online Education over the participants in a survey conducted learners actually think of the experiInternet is going to by IDC last year Almost all those ence So CUX has set out to find polled said they would recommend some answers The organization be so big, it is going Internet-based training, and 60 percreated a database of 10,000 to make e-mail cent said they would recommend e-learners, culled from FORTUNE usage look like it highly Those surveyed included 500® companies, who are currently a rounding error.” training managers, information taking or have recently completed system managers, and business online courses from a variety of unit managers sources CUX is in the process of According to IDC analyst Ellen Julian, three surveying these individuals and plans to publish the factors contribute to the success of Internet-based results of the survey, entitled “Learning in the Dottraining programs: “flexibility, convenience, and Com World: E-Learners Speak Out,” later this year cost-effectiveness.” The survey also found that The results will shed light on some areas of keen lack of desktop access keeps some companies from interest to corporations Among them: how to trying Internet-based training avoid “churn,” or the problem of paying for courses that employees won’t use “We’re trying to understand the impediments to people not A Market Whose Time Has Come finishing online course work,” says Meister “It says something about instructional design.” “Online learning was a market for some time CUX already has some preliminary findings from waiting to happen It’s only now, that the infrastrucabout 200 respondents For instance, many of ture has matured enough, that it can be a reality,” these respondents said that if they had a choice says Nathaniel Palmer, an analyst at the Delphi gForce Systems I n the information economy, learning is a critical business process According to Arie De Geus, former Royal Dutch Shell VP and a leading business thinker, “The ability to learn faster than your competitors may be the only sustainable advantage.” In this environment, e-learning is becoming a core piece of business infrastructure gForce Systems, a leading e-learning company, recognizes the vital nature of rapidly distributing training and knowledge and converting them into corporate know-how “Companies that don’t move to e-learning will be run over by those who do,” says David Pratt, gForce’s www.fortunesections.com F00XXX1V2 president and CEO To that end, gForce offers an Enterprise Learning Portal Platform to support learning and knowledge exchange for the employees, customers, and partners of the extended enterprise The gForce e-learning platform provides an end-to-end enterprise learning solution including multimedia content, authoring capabilities, content management tools, and a personalized browser interface for learner access and contribution What is truly novel about gForce’s approach is that it combines traditional training with current knowledge culled directly from a company’s experts The platform offers a single source for the training and knowledge necessary for optimal performance “We believe e-learning is about enabling any company to transform into a true e-business by scaling its expertise,” says Pratt “gForce’s eLearning platform can help distribute vital training, information, and knowledge instantly around the globe, providing an applied knowledge edge that can translate into a competitive advantage in the marketplace.” www.gforce.com 1.877.430.6541 S40 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:42 PM Page 41 Right-hand page Story: 0515OLL_15-34 Page: 21 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION Group, a consulting firm that focuses on the strategic use of technology in business Since the late 1980s, he says, there have been a series of technological advances that have enabled more and more companies to successfully utilize this type of training In the past, the price of content and the price of the delivery vehicle were major barriers to widespread usage by corporations; but today, those barriers are breaking down Online learning will be feasible both for large companies as well as smaller ones Palmer also has some thoughts on the rise of new partnerships between the corporate world and academia “The lines are blurring between traditional neutral delivery vehicles and those that have a stake in what’s being delivered,” he says Thus, many major universities will begin striking partnerships with corporations to create content in what he refers to as “New Age co-opetition.” One example: Top academic institutions could sell their high-end, branded courses to corporate universities E-learning, in summary, adds a whole new dimension to education – an ancient human endeavor “Training is older than dirt,” says Jim Ayube, senior analyst at the Aberdeen Group, a market research firm that focuses on IT “A lot of people don’t get that excited by it.” But e-learning has changed all that, he says It promises to create engaging courses, accessible instantaneously anywhere in the world, at an affordable price John Chambers, president and CEO of Cisco Systems, which recently launched a major online learning initiative, put it best As he wrote in a New York Times op-ed piece on November 17, 1999: “The next big killer application for the Internet is going to be education Education over the Internet is going to be so big, it is going to make e-mail usage look like a rounding error.” S41 F00XXX1V2 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 42 Left-hand page Story: 0515OLL_15-34 Page: 22 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION Learning Portals: An Important Trend in Online Learning a single class is purchased, all the portal’s information regarding training can be accessed Or, the portal supplies free or usage-based access to a virtual classroom with digital collaboration tools These portals are vending technology more than content Learning portals allow people to gain access to all of an organization’s online training information and other resources from one central site Because of their ease of use, they have become an increasingly popular resource; there has been a tremendous surge of rollouts for learning portal sites Each portal has a different definition of learning and training management Here are some tips and definitions for distinguishing the difference between the vast number of sites to visit, as discussed by industry expert Elliott Masie: Internal portal Why go to the Internet if you can have a portal built to your specifications? A customized portal is located on the internal server, and offers content consolidation and/or embedded technology This strategy enables a learning site to be rapidly built It also offers secure access because it does not require a connection to the Internet Portal Any site that offers a learner or an organization a consolidated access to learning and training resources A portal can range from a simple page filled with links to a sophisticated virtual classroom and learning center If the site defines itself as a single source for learning, it is a portal Content consolidation portal A good number of portals are aiming at the content consolidation and aggregation business These portals offer the learner or buyer a simple way to shop for all of their training needs on a single page This means a wide selection of offerings from a multitude of vendors The portal benefits financially by claiming a percentage of the sales generated from the vendor Some are “treating” the content so that it can be used interchangeably, mixing and matching training modules from several vendors Community and collaboration portals These portals focus on building a digital community of users These portals are recognized by the presence of standard community technologies like chat rooms, new information on learning, discussions and links to books to buy We know that learning is a social experience, so it is anticipated that community portals will proliferate in the coming months Affiliation portals These portals, similar to community and collaboration portals, are primarily for nonprofit organizations They evaluate products and offer their version of a “Good Housekeeping seal of approval,” allow content screening and, in some cases, discounts on purchases The portal race has just begun Portals are hitting the marketplace as a large response to the e-commerce frenzy Many venture capitalists are behind the idea of a single portal for global learning In time, we will learn if customers too share enthusiasm for portals It is believed that the growing experimentation in the portal arena is healthy for the industry, creating new offers of capability and pricing Embedded technology portal These groups are using the portal as a way of embedding and selling their technology as a component of learning or on an LSP (learning service provider) basis For example, after University Access U niversity Access (UA) is an e-learning company that focuses solely on business education and training for the corporate and academic markets Its mission is to be the global leader in the provision of complete e-learning solutions that encompass content, technology, service, and community University Access helps develop business leaders by delivering some of the finest online business education and training in the world University Access, the fastest-growing online corporate education company in www.fortunesections.com F00XXX1V2 America, is building management education programs designed to serve the needs of its corporate clients at every level Earlier this year, University Access announced the first global executive MBA program custom-designed for corporate teams, the Corporate MBA University Access is launching the CMBA in partnership with the University of North Carolina at Chapel Hill’s Kenan-Flagler Business School The Corporate MBA is a hybrid of executive MBA and custom executive programs Its content and delivery are designed to meet the needs of global enterprises to prepare fast-track executives for advanced leadership while keeping them on the job The innovative curriculum combines the best of on-site and distance learning in a 20-month program that begins in October 2000 UA’s other partnerships include the London Business School, University of California at Los Angeles, and the University of Southern California www.universityaccess.com 1.888.960.1700 S42 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 44 Left-hand page Story: 0515OLL_15-34 Page: 23 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION Online Learning Industry Overview By John R Bucher Originally published in industry leader Brandon Hall’s “Multimedia and Internet Training Newsletter,” available at www.john.bucher.com Industry Trends To many investors, the term “online learning” connotes a wide range of business activities and technologies, including distance education, Web-based training, courseware delivery, and online testing International Data Corporation recently forecast that the online learning industry will account for $10 billion in annual revenues by 2002, up from an estimated $600 million last year In light of the high growth prospects for this industry, myriad companies are positioning themselves to target these business opportunities When the online learning industry became our focus of effort nearly three years ago, our group analyzed this industry’s market segments and company categories Over the last year, we have used the online learning industry matrix to plot the relative positions of individual companies within this emergent industry Individual companies are categorized within the matrix based on their primary target market and their principal business activity Since there is not always a clear-cut distinction among content, service and tool/technology providers, many online learning companies straddle several blocks of the matrix As the online learning industry continues to evolve and mature, the matrix requires periodic updating A number of trends cut across all three major market segments of the online learning industry: Active learning Education and training are being transformed from passive to interactive processes where learners participate in and even self-direct their personal and professional development The most effective learning is active learning by doing Learning is less about classrooms, textbooks, and memorizing facts than about acquiring relevant knowledge and critical thinking and creative problem-solving skills Learning is, therefore, becoming more learnercentric than teacher-centric Continuous learning Learning is being transformed from a front-loaded, finite life event to a lifelong, continuous activity The industry is less about learning at specific ages and more about learning at any age on a continuous basis In many fields, especially science and technology, continuous learning has become a requirement in order to survive the current rate of technological innovation Individualized learning The industry is undergoing what James Duderstadt, president emeritus and professor of science and engineer- KnowledgeNet H ewlett-Packard and KnowledgeNet have joined together to offer HP’s technical professionals an alternative training solution “The response so far at our firm is very positive,” reports Dexter Daniel, Microsoft training program manager for HP in the Americas Employees retain information learned in the virtual classes as well or better than material taught in a traditional classroom setting Plus, the cost savings are considerable Daniel estimates that online learning is about half as expensive as traditional classroom instruction www.fortunesections.com F00XXX1V2 When choosing an online learning provider, he urges companies to look for a delivery method that allows demonstrations and interactions between students and instructors “If you don’t have interactivity, you might as well just read a book,” he says Tom Graunke, CEO of KnowledgeNet, emphasizes the difference between first generation and next generation e-learning “First generation e-learning just puts up text on a Web site,” he says, “whereas next generation e-learning has an engaging, multimedia format It leverages ‘smart’ technology by dynamically adjusting the content to the user’s knowledge on the fly.” KnowledgeNet (www.knowledgenet.com), which was recently selected by Cisco to be a partner in a global e-learning initiative, is enjoying tremendous growth Just one year ago it had 20 employees; today it has 300 “We are helping customers cut training expenses in half, and train faster with higher retention,” says Graunke “We’re absolutely at the beginning of a revolution in learning.” www.knowledgenet.com 1.888.577.5779 S44 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 46 Left-hand page Story: 0515OLL_15-34 Page: 24 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION ing at the University of Michigan, calls a demand shift from “just-in-case” learning to “just-in-time” and “just-for-you” learning Ubiquitous Internet access, a vast supply of content and powerful asynchronous communication tools make possible more timely and tailored individual learning Enterprise segment Content providers include corporations, schools, teachers, government agencies, standards organizations, and individual subject matter experts In the enterprise market segment, corporate content is not necessarily confined only to internal employee consumption In the increasingly competitive climate that e-commerce has ushered in, corporations recognize that learning content can be used to competitively differentiate products and services with customers, partners, and suppliers Corporate universities and enterprise information portals (EIP) have emerged to leverage corporate learning content and make information available to even the most remote employees, customers, or partners Cost-effective Online technologies have made learning more affordable Learners can take online classes from many of the best universities without incurring the cost in time and money of traveling to, and boarding at, the campus Nevertheless, brand name and reputation, if not quality, still affect online learning pricing – Duke’s online MBA program, for example, is more expensive than that of the University of Phoenix Still, learners have numerous and rapidly increasing numbers of cost-effective online options for obtaining the courses they need Academic segment In the academic market segment, colleges, schools, and universities as a group have historically had near monopoly power in supplying learning content; however, these institutions face increasing competition from for-profit schools, software developers and publishers, independent courseware developers, and even their own faculty Content ownership in the academic market is being increasingly challenged by entrepreneurial teachers who provide their lessons and courses directly to commercial online learning service providers (LSPs) Encountering unprecedented competitive pressures, many universities are leveraging their learning content and brand names by contracting with LSPs for online course delivery For example, in order to add a wholesale component to its role as a content provider, Columbia University’s business school will The Online Learning Industry Matrix The following sections provide a few select points about each of the three major matrix categories of online learning companies that make up this industry Content providers “As these networks create the potential for global university outreach across significant elements of higher education’s mission, course content and intellectual property holdings will become scarce economic goods and will command an economic premium.” – Richard N Katz, EDUCAUSE Source: Dancing with the Devil, 1999 IBT Technologies, Inc I ron Horse Multimedia, based in Montreal, creates courses that teach companies how to leverage their competitive information and turn it into intelligence they can act upon Iron Horse serves clients in a total of 25 countries, half of whom are FORTUNE 1000 companies Iron Horse needed a superior technology that could put their material online After evaluating 12 different firms, they turned to IBT Technologies, based in Austin, Texas “We went in-depth and crunched the numbers, based on cost, technology and www.fortunesections.com F00XXX1V2 intangibles,” says Spike Stockdale, vice president of products and services at Iron Horse “The application service provider [ASP] model that IBT offered made a lot more sense.” The ASP model enables firms to outsource the technological infrastructure – as well as costs of maintaining and administering it – to the vendor It was an excellent solution for a small firm like Iron Horse, which has just 25 employees “IBT took their business model and made sure it fit with ours,” says Stockdale Plus, it was economical; as Iron Horse scaled up its usage of the system, IBT’s cost of servicing it dropped Compared with the other vendors, IBT had a “simple, easy-to-use, end-to-end solution,” adds Stockdale It featured a virtual campus, an authoring platform, and a course delivery and management platform In April, Iron Horse will launch a virtual learning portal in competitive intelligence, and the IBT engine will power the site www.ibt-technologies.com 1.877.IBT-TECH (428.8324) S46 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 48 Left-hand page Story: 0515OLL_15-34 Page: 25 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION provide educational materials to UNEXT.com, which plans to offer online postgraduate-level programs to the corporate market enabled courseware as well as engaging educational online games Service Providers “If students could actually obtain the classroom experience provided by some of the most renowned teachers in the world, why would they want to take classes from the local professor (or, in many cases, the local teaching assistant)?” – James J Duderstadt, University of Michigan Source: Dancing with the Devil, 1999 Individual professional/consumer segment Compared with the immense academic and enterprise markets, the individual professional/consumer market has received less attention This rapidly growing market consists of two major sub-segments The first sub-segment is that of continuing education for professionals, especially the medical, legal, financial, and real estate sectors The second major sub-segment of this market is that of lifelong learning for individual consumers The sources of content for this market include a broad spectrum, ranging from academic content for home schooling to subject matter experts in numerous hobby and special interest categories, including health/fitness, alternative medicine, gardening, photography, and astronomy Enterprise segment Online learning service providers perform the online mechanics of serving the learner In the enterprise market segment, some 1,600 corporations emphasize employee training and development through their physical or even virtual universities At the opposite end of the spectrum, many companies offer just-in-time training via Web-based portals, which are particularly effective for rapidly changing content such as new product information for sales forces Other companies use a mix of in-house and outsourced online training for delivery of formal courses via the Web In some cases, enterprises can cost effectively outsource all of their online training to turnkey training providers who will create, host, and maintain entire libraries of online content One of the advantages of outsourcing to turnkey training providers is that they can develop and host online training without burdening the client company’s IT department Emerging content Across all three market segments, online interactive simulations hold potential as more immersive, participatory forms of learning content Simulations give learners a more active, participatory role in their education/training and permit learning by doing, not by just listening or reading With the ever-increasing capabilities of computing technology and broader-bandwidth data communications, online simulations are becoming more realistic and cost-effective In addition to simulations, software developers and publishers offer multimedia-rich, online- Academic segment The academic market segment is served by for-profit schools, LSPs, Learning.net E xperts argue about the old economy versus the new economy,” says David Mangone, CEO of The Learning Network, Inc “Whatever the case, the value of every economy is based on knowledge, and the currency is learning.” Learning.net is a new breed of application service provider (ASP), combining custom content, proprietary technology, and extensive service in an la carte, yet fully integrated offering The company’s creative business model can best be illustrated in its most recent series of strategic partnerships CCH Incorporated, www.fortunesections.com F00XXX1V2 a leading provider of tax and business law information and software, was seeking a partner to turn content into online courseware At the same time, Learning.net had been approached by a Big Five accounting firm whose consultants required the most up-to-date tax information and 40 hours of continuing education credit every year Learning.net was able to combine the CCH content with the accounting firm’s in-house technical training The result is a private, customized knowledge community, administered and maintained by Learning.net The accounting firm gains password-protected access to a robust set of authoring tools and course-tracking data, and the capability to rapidly implement customized features programmed and maintained by Learning.net “Our partnership with Learning.net is the best way for us to leverage a core competency in developing authoritative content with their expertise as an online developer and service provider,” says Joe Gornick, executive editor at CCH www.learning.net 818.845.2800 ext 102 S48 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 50 Left-hand page Story: 0515OLL_15-34 Page: 26 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION virtual universities and traditional universities, some of which offer degree programs in an online-only format Stanford University, for example, has a master’s of science in electrical engineering program with a 100 percent online curriculum developed in-house Other colleges have chosen to outsource all or part of the processes for providing courses online LSPs such as eCollege.com offer colleges turnkey services for converting and hosting content as well as providing course administration and support market segments, are especially important to service providers in this segment Individual professional/consumer segment Online service providers have emerged to serve the continuing education and lifelong learning needs of individual professionals and consumers Many professionals, such as CPAs and insurance specialists, are required to periodically take educational courses to keep their credentials current Resident continuing education courses can be expensive and inconvenient With the recent emergence of online continuing education providers and distributors, professionals can fulfill their periodic educational requirements at their own pace and select from a wide range of subjects, often taught by leading instructors In the consumer market sub-segment, learners can fulfill their lifelong learning goals with LSPs and special interest Web portals In the future, both individual professionals and consumers will be able to obtain online career guidance and planning assistance as online tutoring and mentoring services evolve Brand and credibility, critical factors across all online learning Enterprise segment The enterprise market segment contains the widest selection of software and hardware tools, technologies, and systems, which have made possible the emergence of the online learning industry Hundreds of tools and technology companies offer online learning solutions targeted at the enterprise market These solutions include authoring tools, delivery and management systems, tracking and administration systems, data visualization tools, simulation systems, and testing/assessment tools An important feature that enterprises seek in these tools and technologies is their interoperability with existing enterprisewide information technology (IT) systems, such as enterprise resource planning (ERP) and knowledge and content management systems Enterprise application integration will accelerate as distributed computing and data sharing standards mature and are adopted by system vendors Extensible mark-up language (XML) is best positioned as the data interoperability standard for all Web- Tool/Technology providers “The idea of schools without walls, universities webbed together by electronics, and learning systems based upon new academic paradigms will not be easily denied in the 21st century.” – Joseph N Pelton, International Space University Source: FutureVision: Ideas, Insights and Strategies, 1996 Eduprise L earning Tree International trains information technology (IT) professionals across the globe Last year, in more than 7,000 classroom courses, the company trained 113,000 IT professionals from over 15,000 companies in 88 countries This year, Learning Tree launched an e-learning initiative, selecting Eduprise to provide strategy consulting, Web development, and distance learning application hosting for Learning Tree’s e-learning courses Learning Tree recently completed the successful pilot program of its first e-learning course, www.fortunesections.com F00XXX1V2 Introduction to Data Communication and Computer Networks, involving 50 participants throughout North America, South America, and Europe Their plan is to convert 150 courses into e-learning formats “We selected Eduprise from over 60 vendors They provided expertise to help us structure our online courses, including activities that keep people motivated and interacting,” says Eric Garen, president of Learning Tree “E-learning on the Eduprise platform enables us to reach a larger audience and expand our e-learning program quickly.” Eduprise works with corporations and educational institutions to utilize Web technology and combine the best aspects of classroom and online learning to produce a high-quality learning experience The company offers a powerful set of services that enables education providers to develop their e-learning offering and brand Its staff has been involved in technology and learning for more than 15 years, with deep roots in the corporate training and higher education markets www.eduprise.com 1.877.338.7747 S50 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:31 PM Page 52 Left-hand page Story: 0515OLL_15-34 Page: 27 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION based systems and instructional management systems (IMS), a derivative of XML, is best positioned as the data interoperability standard for online learning systems In the future, there will be built-in, seamless interoperability among enterprise online learning systems The end result will be enhanced organizational performance through more effective creation and dissemination of corporate information and knowledge to all learners, regardless of location still require scalability, but multi-system interoperability is less critical than in the other two market segments Conclusion The online learning industry represents more than simply repurposed content and converted data This industry is introducing new learning activities, services, and technologies that interactively involve learners anytime, anyplace, while enhancing their motivation to learn Online learning provides tailored and affordable options for personal and professional development Online learning does not replace or minimize the importance of teachers or trainers, but rather removes the physical constraints of buildings and distance, thereby expanding the teachers’ potential reach, efficiency, and effectiveness The online learning industry is comprised of massive market segments served by a diverse range of companies Still in its infancy, this industry contains fertile, unclaimed ground on which new companies can build profitable businesses by developing and/or marketing the next generation of content, services, and technologies for the enterprise, academic, and consumer markets Education and training have embarked upon their most radical transformation since the introduction of free public education Academic segment Many of the tool and technology companies that sell online learning solutions to enterprises also sell to the academic market; however, many academic institutions have IT infrastructures that are less fortified than those of major corporations Recognizing this difference, a number of tool and technology vendors focus exclusively on the academic market segment’s special needs In light of the academic market segment’s comparative lack of IT expertise, ease of installation and maintainability are critical features of online learning tools, technologies and systems targeted at this segment Individual professional/consumer segment The tools, technologies, and systems from the enterprise market segment can be applied generally to the individual professional/consumer segment as well Although the trend across all market segments is for increasingly thin or browser-based client solutions, this approach is virtually mandatory for consumers and individual professionals On the server side, systems serving this market John Bucher is a vice president of Private Investment Group, a Mountain View, California-based company that invests in early-stage online learning companies He can be reached at (650)968-2149 or at BUCHERJ@delphi.com InterWise, Inc U p until a year ago, PeopleSoft – a worldwide leader in applications software – trained its customers by a satellite-based distance learning program But today it’s nothing but Net! Developed using technology from InterWise, Inc (www.interwise.com), the company launched a full e-learning portal that delivers valuable information for individuals seeking to improve job performance and reach new professional goals Gone are the days where engineers drill holes in the roof for satellite connections The Internet is everywhere and the impact www.fortunesections.com F00XXX1V2 instantaneous – people don’t even have to leave their offices And what is learned may be put to immediate use in the job “This is the next evolution of live instructor training,” says Dan Klein, vice president of Worldwide Education Services for PeopleSoft “Our customers need more than training and information pushed to them With InterWise, we can bring our PeopleSoft experts to each customer, no matter where they are, complete with live, real-time interaction and even hands-on product experience.” PeopleSoft has 30 million users of its software applications worldwide and now provides the first commercial platform focused on live, fee-based e-learning Klein sums up the promise of the InterWise-PeopleSoft partnership with these words: “The power of the InterWise Millennium product allows us to support our customers in a cost-efficient and convenient way, without losing what we consider to be a crucial factor in customer services – a personal connection.” www.interwise.com 1.800.647.9384 S52 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:42 PM Page 53 Right-hand page Story: 0515OLL_15-34 Page: 28 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION LogicBay Corporation T here’s a common misconception that online enterprisewide learning is simply a mix of training and technology The truth is, an online “performance center” is a strategic, long-term investment with immediate and sustainable gains – and it has all the requirements of a full-fledged business system LogicBay applies Six Success Factors™ to enterprise learn“LogicBay designed ing – business, the Freightliner people, technoloOLU to deliver gy, learning valuable training creative, and to our dealer marketing All sales force of these factors anytime and anywhere We’re must be addressnow moving ed for optimum forward at value and benefull speed with fit from your LogicBay online university developing (OLU) initiative powerful online courseware.” The result is a clear, strategic, global plan for addressing all your target audiences – employees, management, sponsors, developers – even customers and suppliers LogicBay’s six-dimension blueprint provides the confidence you need for smart design and development – whether you’re starting small or implementing a full OLU Freightliner Trucks, a division of Freightliner Corp., a DaimlerChrysler company, chose LogicBay to launch an OLU to help educate, and communicate with over 1,500 sales representatives at hundreds of dealerships across North America Jim Bennett, manager of sales training for Freightliner Trucks said, “LogicBay designed the Freightliner OLU to deliver valuable training to our dealer sales force anytime and anywhere We’re now moving forward at full speed with LogicBay developing powerful online courseware.” To get the most out of your enterprise learning initiative, analyze all your success factors If you do, success is the only option www.logicbay.com 1.877.854.3413 S53 F00XXX1V2 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:32 PM Page 54 Left-hand page Story: 0515OLL_15-34 Page: 29 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION How Digital Learning Differs in Europe not along country lines, but along sector lines,” writes Massy Thus, companies involved in information and communications technologies have been swift to adopt online learning; whereas, other industries have not Limited range of expertise The level of online learning skills among education and training practitioners in Europe is “low,” according to Massy In addition, there’s “an absence of significant attempts within the education and training community to identify and prepare appropriate education and training programs in technology-supported learning to drive the development of new applications and large-scale usage,” she adds She offers this advice for companies planning to offer online learning in Europe: Watch your language Remember that the people you want to deliver the training to may not have the expertise needed to provide the highest-quality support, whether it be the business managers overseeing the system or the employees using it Use high-quality media and navigation tools “Europeans expect sophisticated pedagogical design, clearly geared towards the target group ” writes Massy Systems are important “In particular, local and national education and training systems are essential Flexible resources that can be used within a training program for specific job profiles or linked to curricula for particular competencies will have a much better chance than courses that are only partially relevant,” advises the consultant The European market for e-learning is far different from that of the U.S., according to a British expert on the topic “It’s a different world over in the European Union (EU) – right down to the terminology,” writes Jane Massy, a consultant in technology-based learning in Cambridge, England She published her views in a March 2000 article in Learning Circuits, a Web-zine about e-learning that appears on the Web site of the American Society for Training and Development (ASTD), at www.astd.org In her article, Massy discusses several of the major differences in technology-based learning between the United States and Europe Fundamental and contextual “There are different patterns of education and training in Europe – not only different from the United States and Canada, but also widely different within the European Union,” points out the consultant Economic Europeans have generally been slower to embrace technology-based learning than Americans – although parts of Europe are now catching up with North America, both in terms of installed information technology infrastructure, as well as Internet access Attitudes and expectations The attitudes and expectations of Europeans toward technology-based training vary widely across Europe “The great divide is eMind.com A rthur Andersen, one of the Big Five professional services firms, needs to keep its professionals at the top of their game This is no mean feat: the firm has more than 77,000 employees dispersed all around the world Moreover, many of its professionals – its auditors, for example – must take a required number of course hours each year to maintain their accreditation So it’s no surprise that the company spends in excess of $300 million a year on training It’s an expensive, but necessary, part of staying competitive www.fortunesections.com F00XXX1V2 Arthur Andersen’s Pacific region had been doing the majority of its training by the traditional classroom method – but they needed a cost-effective approach that would complement their existing curriculum and be easily accessible to their global workforce So they turned to e-learning They ultimately chose eMind.com as their provider Says Ellen Damon, director of professional development for Arthur Andersen: “eMind.com offered quality, interactive course work that is engaging and available on demand.” Plus, it was cost-effective Damon estimates it costs about 75% less than traditional classroom training Damon also liked eMind.com’s extensive course selection – which can be specialized to fit individuals or groups of people – as well as its ability to track users and generate reports And the entire system was up and running in just three days “This tool is very important to us,” she says “Going forward, I anticipate expanded use and dependence on our e-learning training programs.” www.eMind.com 1.877.443.6463 S54 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:32 PM Page 56 Left-hand page Story: 0515OLL_15-34 Page: 30 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION President Clinton Calls for National Online Learning Initiative economy – how it would ripple through the economy and lift the whole thing in a way that would enable us to have percent unemployment for a sustained period of time And we’re almost bumping 21 million new jobs now, in the last seven years Many believe that e-commerce will climb to $1.3 trillion a year within just the next three years When I became president in 1993, there were 50 sites on the World Wide Web; today there are more than 10 million So we now know that we have a new and different economy I also think it’s very important that we assess precisely what the role of government should and should not be How this is managed is an example of what will be a whole new set of questions about what the role of government should be The Federal Communications Commission established discounted Internet rates for schools and libraries, which increased the percentage of our school classrooms, connected to the Internet from percent in 1994 when the vice president and I did our first Net Day in San Francisco, to 63 percent in 1999 And we’re up to over 90 percent of the schools have at least one connection And we’ll soon be at a point where the only schools that don’t have at least one connection will be schools that are literally too old and decrepit to be wired [A] lot of our urban school systems have school buildings with an average age of 65 or 70 years, and it’s a very difficult problem But we’re on our way to universal student access because of the e-rate Otherwise, without the e-rate, a lot of these schools could never have afforded to hook up, and a lot of these small libraries in rural areas could never have afforded to hook up On March 3, President Bill Clinton gave a speech at the Aspen Institute’s Forum on Communications and Society, a Washington, D.C.-based nonprofit global forum that convenes leaders from diverse disciplines to address critical issues confronting societies, organizations, and individuals The meeting was attended by many prominent individuals from the high-tech industry In his speech, Mr Clinton discussed the nation’s learning agenda and how the Internet is the core foundation to help our country achieve a new path to learning He advocated universal school access to the Internet, and underscored the fact that currently more than 90 percent of the nation’s schools have at least one connection to the Internet Following are excerpts from his remarks There is no question that one of the reasons – and perhaps the primary reason – that this has been both the longest and the strongest economic expansion in history is because of the explosion of technology The high-tech companies alone account for only percent of our employment, but they’ve been 30 percent of our growth And perhaps even more profound, the technological innovations that are the core business of many of the companies represented in this room – and certainly in this area – are rippling through the whole rest of the economy, adding to the overall productivity of the American economy Economists had no tools, as recently as 1992, to measure the impact of technology on this Centra D omino’s Pizza needed a way to communicate and collaborate more effectively with a global workforce of 1,825 franchisees running more than 6,500 stores in 64 countries After a thorough search, Domino’s found a solution: Centra’s live, Web-based collaboration system Centra enables the instructor to share applications from any location; view PowerPoint presentations; and engage students through integrated audio conferencing, video and shared whiteboards – or online flip charts – over Domino’s existing intranet Domino’s Pizza praised Centra (www.centra.com) www.fortunesections.com F00XXX1V2 for its stellar customer service “They really stood out in the amount of personal attention and level of service,” says Harrison Withers, national director of training and technology at Domino’s Pizza The Centra system is being implemented at Domino’s, so any of its employees worldwide can access it The company – recognized as the world leader in pizza delivery – wants to ensure that its franchisees not only get the best possible information through the Centra experience, but also collaborate with each other in real time and provide instant feedback to the company on any number of topics These include information on new products, policies, and procedures, as well as updates on critical business issues, from product price points to minimum wage legislation In addition, Domino’s Pizza will use the system for conducting online meetings “Online learning can be relevant to any type of business,” says Withers “It doesn’t matter what industry you’re in It’s an effective communications and collaboration tool.” www.centra.com 1.888.547.6300 S56 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:32 PM Page 57 Right-hand page Story: 0515OLL_15-34 Page: 31 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION We’ve also worked to accelerate the federal investment in research and development, and to conditions to help you extend it by an extension of the research and experimentation tax credit, and by expanding our national science and technology budget every year Now, I know that the Forum on Communications and Society is also working hard to be a catalyst for change and for better and broader use of technology Of all the areas where we might work together, I would suggest that there are two which are absolutely vital to keep the information economy and all America growing strong The first is Internet security and privacy, and the second is closing the Digital Divide Last month, I met with high-tech leaders to talk about making our networks more secure and resilient They urged the federal government to something we have committed to – to lead by example, to take that responsibility very seriously We have formed a government-industry partnership for security I’ve requested more than $2 billion from Congress to fund cybersecurity initiatives and research Our administration has encouraged Internet firms to work together to raise privacy standards The response has been good The share of commercial Web sites with privacy policies went from 15 percent to 66 percent in just one year That’s a very impressive record But the American people know it’s still not enough So today I think we must all ask ourselves, and every one in this area: Do you have privacy policies you can be proud of? Do you have privacy policies you would be glad to have reported in the media? Now, I also would say, I think business must work with us to make sure that we close the fault line between those who have access to computers and to the Internet and those who not It has now become known as the Digital Divide This spring, I will take another one of my New Markets tours designed to convince the private sector that places in America which have still not fully participated in our economy are great new markets The Indian reservations, the rural areas, the inner-city neighborhoods are opportunities for us, and we know the only way we can fully maximize them is to bring the information age to every family in every community Yes, first to make sure all our schools have the technology, and then that all our teachers know how to maximize it and use it, but also to make sure that adults have access, as well I want to congratulate Mayor Menino on what Boston has done, opening more than 80 community technology centers in underserved areas to serve adults, while bringing thousands of computers into schools and setting Element K E lement K enables businesses to build knowledge and thereby increase productivity and competitiveness The “K” in their name stands for knowledge, reflecting their belief that knowledge is the critical factor in business success today Element K is committed to helping organizations build knowledge through unique learning solutions The company builds on its heritage in educational design to deliver an experience centered on the learner In today’s time-pressured business world, the limited time of those who need to learn represents the greatest barrier to knowledge building Employees require a variety of options to match their knowledge-building needs Element K’s Web site offers multiple approaches, so that everyone can learn the way he or she needs to: through self-paced or instructorled material; with a mentor or through a community of peers; in courses or through a quick reference In addition, Element K offers a leading catalog of high-quality IT courses designed exclusively for the Web In 1997, Element K introduced online S57 F00XXX1V2 learning, and today works with FORTUNE 500® clients worldwide to provide course work in such critical areas as business and professional skills and office productivity “The potential of e-learning will only be realized if people actually learn We have provided effective learning for more than 18 years and now deliver these results on the Web,” adds Terry Nulty, president of Element K www.elementk.com 1.800.434.3466 www.fortunesections.com CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:32 PM Page 58 Left-hand page Story: 0515OLL_15-34 Page: 32 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION up training and job training programs with immigrants whose primary language was not private-sector partners We should this English So they got all these people who would all over the country I’ve asked Congress for never dream of using a computer to start using tax incentives for companies that donate it in a way that enabled them to e-mail the computers for technology training for every teachers, e-mail the principal – and they had a single new teacher in this country, and for dramatic drop in the school dropout rate and funding to establish 1,000 a dramatic increase in the community technology student performance rate “I’ve asked Congress for centers so that adults can because of the connections tax incentives for also have access to the between the two So it will be information economy interesting to follow how the companies that donate I’ve proposed a pilot computers for technology Maine program works out project with industry Governor Caperton, when training for every single to bring computers and the he was governor of West new teacher in this Internet to low-income Virginia, was the first goverfamilies, like Oakland’s nor in the country to virtually country, and for funding Clickstart, or the program computerize all of the eleto establish 1,000 started by Governor King of mentary schools in his state community technology Maine yesterday, where he’s and give all of his kids access centers so that adults can to this kind of technology, really going to try to get a laptop into the home of and most of us were just also have access to the every family It’s an amazing trying to follow in the wake information economy.” thing Let me say, he’s going here But this is very exciting to it – they will start with stuff the seventh-graders But again I will say to you, I don’t think educaLet me explain what the program is in Maine, tion is enough here We have a chance to bring if you didn’t see it They’re going to start by the benefits of enterprise to areas that have been giving every seventh-grader a laptop, but the left behind [A] part of bringing them into this way they’re going to it is to make sure that economy is using technology to bridge the disthe seventh-grader will also be able to take tances, not only between what they know and the computer home and to try to involve the what skills they have, but actually where they are parents in it And that, I think, is a remarkably [As] I said in the State of the Union address, good thing if we don’t this now, when we’ve got the I never will forget visiting a program in northstrongest economy in our lifetime, when will ern New Jersey that Lucent did with a school we ever get around to it? We actually have a district there, where most of the kids were firstchance to let everybody ride along with the generation Americans and their parents were American economy KnowledgePlanet.com T he Prudential Insurance Company of America has a daunting task: training and developing its 10,000 insurance agents and field support staff who are scattered across the United States To accomplish this, five years ago Prudential instituted a multimillion-dollar distance learning effort centered on online learning “Before then, taking our learning modules was somewhat inconvenient,” recalls Maynard Crawley, vice president of professional development at Prudential “Agents had to come to one of our 150 parent offices, sometimes driving www.fortunesections.com F00XXX1V2 50 miles or more to get there, and then would have to wait for their turn at the computer.” Thanks to Prudential’s LaunchPad program, which equipped the entire sales force with laptop computers, and to a contract with KnowledgePlanet.com (www.knowledgeplanet.com), Prudential has achieved tremendous success in delivering online learning to its agents 24 hours a day, seven days a week The system allows one-stop shopping for training and testing online The agents can study the content online, then test themselves to see what they’ve learned This enables Prudential to achieve a consistent level of basic knowledge for all its agents The KnowledgePlanet program is extremely cost-effective, as well “This has been a ‘win-win’ experience because we have increased efficiencies and reduced operating costs There’s no question that having the Prudential Learning Network available online gives agents a significant advantage in the marketplace,” says Crawley www.knowledgeplanet.com 1.800.869.5763 S58 CYAN MAG YELO BLACK 0515OLL_14-34 4/21/00 2:32 PM Page 59 Right-hand page page Left-hand Story: 0515OLL_15-34 Page: 33 of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION Web Directory Company Carlson Marketing Group Centra click2learn.com, Inc DigitalThink, Inc Docent, Inc Eduprise Element K eMind.com Experient Technologies gForce Systems Hewlett-Packard Co IBT Technologies, Inc InterWise, Inc ISOPIA KnowledgeNet Knowledge Planet.com Learn2.com, Inc Learnframe Learning.net LogicBay Corporation NETg Ninth House Network Saba SmartForce SMGnet Training Server, Inc University Access VCampus VuePoint URL www.carlsonmarketing.com www.centra.com www.click2learn.com www.digitalthink.com www.docent.com www.eduprise.com www.elementk.com www.eMind.com www.experient.com www.gforce.com www.hp.com/e-learning www.ibt-technologies.com www.interwise.com www.isopia.com www.knowledgenet.com www.knowledgeplanet.com www.learn2.com www.learnframe.com www.learning.net www.logicbay.com www.NETg.com www.ninthhouse.com www.saba.com www.smartforce.com www.smgnet.net www.trainingserver.com www.universityaccess.com www.vcampus.com www.vuepoint.com Case Study S28 S56 S38 S34 S36 S50 S57 S54 S18 S40 S16 S46 S52 S22 S44 S58 S20 S10 S48 S53 S24 S8 S32 S30 S28 S26 S42 S14 S20 Additional sites where you can find more information about online learning: American Society for Training and Development (ASTD) www.astd.org Brandon Hall www.brandon-hall.com Corporate University Xchange, Inc www.corpu.com United States Distance Learning Organization (USDLA) www.usdla.org MASIE Center/Elliott Masie www.masie.com John Bucher www.john.bucher.com Produced by: Mary Beth Nolet Written by: Mary Gotschall Edited by: James S Harrison Designed by: Monique Delage Consultant: Christine Perey If you are interested in advertising in the next Online Learning section, contact Susan Towers, FORTUNE Custom Projects, at susan.towers@timeinc.com or call 212.522.1253 Reprints of this section are available in quantities of 100 or more; custom reprints can also be created To obtain a reprint order form, please fax your request to Randi Bergman at 212.522.0999 or send e-mail to randi.bergman@timeinc.com S59 F00XXX1V2 www.fortunesections.com CYAN MAG YELO BLACK ... 2:23 PM Page Left-hand page Story: 0515OLL_2-14 Page: of 33 Issue: 05/15/00 SPECIAL ADVERTISING SECTION E -LEARNING STRATEGIES for executive education and corporate training E -learning: A Revolution... enables education providers to develop their e -learning offering and brand Its staff has been involved in technology and learning for more than 15 years, with deep roots in the corporate training and. .. products and services with customers, partners, and suppliers Corporate universities and enterprise information portals (EIP) have emerged to leverage corporate learning content and make information