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  • I Forward by Creativesheffield
  • II About Learning Light
  • III Acknowledgements and thanks
  • 1. Introduction
  • 1.1 background to the report
  • 2. Executive Summary
  • 3. What is e-Learning?
  • 3.1 e-learning - definitions
  • 3.1.1 e-learning components
  • 3.1.2 e-learning, e-publishing and learning tools
  • 3.2 How e-learning is flowering
  • 4.0 Players in the UK e-Learning market
  • 4.1 “Movers and Shakers” 2007
  • 4.1.2 UK’s e-Learning players
  • 4.1.3 Note on UK e-learning consultancies
  • Table 3: Looking back to the Epic UK Marketplace survey (2007)
  • Table 4 Interviews and other news:
  • News and views on who’s doing what
  • 4.1.3. Consolidations, Mergers & Outsourcing
  • 5.0 The Survey interviews
  • 5.1 Market Trends
  • 5.1.1 Continuing growth…?
  • 5.1.2 Signs of a Slowdown
  • 5.1.3 Importance of the public sector
  • 5.1.4 Where is business coming from
  • 5.1.5 Where are the threats
  • 5.2 Technology Trends
  • 5.2.1 The impact of open source
  • 5.2.2 Web 2.0 – learning 2.0
  • 5.2.3 Social networking and e-learning
  • 5.2.4 Future technology trends
  • 5.3 Future Industry Trends
  • 5.3.1 New business models
  • 5.3.2 Industry structure – mergers, acquisitions and liquidations
  • 5.3.3 Skill Shortages
  • 6. 6. Trends in the market
  • 6.1 That was then: the Hambrecht report 2000
  • 6.2 This is now: the 2008 CIPD survey on e-learning
  • 7. Role of large corporate suppliers
  • 8. The size of the UK market
  • 8.1 A forecasting model
  • 8.1.1 background to the forecast
  • 8.1.2 The Market in 2006
  • 8.1.3 Adoption levels
  • 8.1.4 Percentage of training budgets
  • 8.1.5 Continued growth
  • 8.1.6 2009 doom or gloom
  • 8.1.7 Higher and higher
  • 8.1.8 Can we be confident in this forecast of continued growth?
  • 8.1.9 How does the UK compare with Europe
  • 8.1.10 A US perspective
  • 8.2 Sizing the market - summary
  • 9.0. Industry Trends
  • 9.1. Trends in learning platforms – more competition and more choice
  • 9.1.2 Moodle
  • 9.1.3 Moodle Plug Ins
  • 9.1.4 Software as a Service (SaaS)
  • 9.2. Content – How you use content is now King
  • 9.2.1 Generic content:
  • 9.2.2 e-reference systems and Academies
  • 9.3 Bespoke content – tougher price climate = more innovation
  • 9.4 Gaming and learning
  • 9.5 Rapid Development – threat or opportunity
  • 9.6 Web 2.0 – learning 2.0 – Social networking and Informal learning
  • 9.7 Mobile, Handheld, Portable or…..?
  • 9.8 e-assessment
  • 10.0 Drivers of growth
  • 10.1 Compliance 2.0
  • 10.2 Lifestyle learning
  • 10.3 The training industry gets e-learning
  • 10.4.1 The e is for environmental
  • 10.6 e–Learning 2.0 into the Small and Medium enterprise
  • 10.7 Marketing moves into the e-learning market
  • 10.8. Services
  • 10.8.1 Consultancy: a cottage industry?
  • Appendices
  • Appendix A - The 2008 CIPD review of e-Learning
  • The CIPD report on e-Learning (2008) - summary
  • Appendix B – Donald H Taylor response to CIPD Report
  • Extract from “Reflections on the CIPD Survey” by Donald H. Taylor
  • Appendix D – expert predictions for 2009 - eLearn Magazine
  • Appendix E Readers’ responses to “Expert” predictions

Learning Light Limited

The UK e-learning market 2009
David Patterson, Glynn Jung and Gill Broadhead

The UK e-learning Market 1

© Learning Light Limited 2009

Contents I Forward by Creativesheffield ...................................................................... 4 II About Learning Light ................................................................................... 5 III Acknowledgements and thanks................................................................. 9 1. Introduction ............................................................................................... 16 1.1 background to the report................................................................... 16 2. Executive Summary ................................................................................. 17 3. What is e-Learning?................................................................................... 19 3.1 e-learning - definitions .......................................................................... 19 3.1.1 e-learning components .................................................................. 19 3.1.2 e-learning, e-publishing and learning tools .................................... 21 3.2 How e-learning is flowering .................................................................. 22 4.0 Players in the UK e-Learning market .................................................... 23 4.1 “Movers and Shakers” 2007 ................................................................. 23 4.1.2 UK’s e-Learning players................................................................. 24 4.1.3 Note on UK e-learning consultancies............................................. 24 Table 1 Large companies active in UK with e-learning as a non-core activity .................................................................................................... 24 Table 2 Companies active in the UK wholly or primarily engaged in eLearning.................................................................................................. 25 Table 3: Looking back to the Epic UK Marketplace survey (2007).......... 27 Table 4 Interviews and other news: ........................................................ 29 News and views on who’s doing what .................................................... 29 4.1.3. Consolidations, Mergers & Outsourcing ........................................... 30 5.0 The Survey interviews............................................................................ 33 5.1 Market Trends ...................................................................................... 33 5.1.1 Continuing growth…? .................................................................... 33 5.1.2 Signs of a Slowdown...................................................................... 34 5.1.3 Importance of the public sector...................................................... 35 5.1.4 Where is business coming from..................................................... 36 5.1.5 Where are the threats .................................................................... 36 5.2 Technology Trends............................................................................... 37 5.2.1 The impact of open source ............................................................ 37 5.2.2 Web 2.0 – learning 2.0................................................................... 38 5.2.3 Social networking and e-learning................................................... 39 5.2.4 Future technology trends ............................................................... 40 5.3 Future Industry Trends ......................................................................... 41 5.3.1 New business models .................................................................... 41 5.3.2 Industry structure – mergers, acquisitions and liquidations............ 42 5.3.3 Skill Shortages............................................................................... 43 6. 6. Trends in the market .............................................................................. 45 6.1 That was then: the Hambrecht report 2000 .......................................... 45 6.2 This is now: the 2008 CIPD survey on e-learning................................. 45 6.2.1 Extract from “Reflections on the CIPD Survey” by Donald H. Taylor ................................................................................................................ 46 7. Role of large corporate suppliers ............................................................... 47 8. The size of the UK market ......................................................................... 49
The UK e-learning Market 2 © Learning Light Limited 2009

8.1 A forecasting model.............................................................................. 49 8.1.1 background to the forecast ............................................................ 49 8.1.2 The Market in 2006 ........................................................................ 50 8.1.3 Adoption levels .............................................................................. 50 8.1.4 Percentage of training budgets ...................................................... 50 8.1.5 Continued growth........................................................................... 51 8.1.6 2009 doom or gloom ...................................................................... 51 8.1.7 Higher and higher .......................................................................... 52 8.1.8 Can we be confident in this forecast of continued growth? ............ 53 8.1.9 How does the UK compare with Europe ........................................ 53 8.1.10 A US perspective ....................................................................... 54 8.2 Sizing the market - summary................................................................ 54 9.0. Industry Trends ....................................................................................... 55 9.1. Trends in learning platforms – more competition and more choice.. 55 9.1.2 Moodle ........................................................................................... 55 9.1.3 Moodle Plug Ins ............................................................................. 56 9.1.4 Software as a Service (SaaS)........................................................ 56 9.2. Content – How you use content is now King ................................... 57 9.2.1 Generic content:........................................................................... 57 9.2.2 e-reference systems and Academies............................................. 57 9.3 Bespoke content – tougher price climate = more innovation ........... 58 9.4 Gaming and learning......................................................................... 59 9.5 Rapid Development – threat or opportunity ...................................... 59 9.6 Web 2.0 – learning 2.0 – Social networking and Informal learning . 60 9.7 Mobile, Handheld, Portable or…..? ................................................... 60 9.8 e-assessment ....................................................................................... 61 10.0 Drivers of growth.................................................................................... 61 10.1 Compliance 2.0 .................................................................................. 61 10.2 Lifestyle learning............................................................................... 62 10.3 The training industry gets e-learning. ................................................. 62 10.4 The ROI model can make sense and delivers much more learner impact......................................................................................................... 63 10.4.1 The e is for environmental ........................................................... 63 10.6 e–Learning 2.0 into the Small and Medium enterprise ....................... 64 10.7 Marketing moves into the e-learning market....................................... 64 10.8. Services ........................................................................................ 64 10.8.1 Consultancy: a cottage industry? ................................................. 64 Appendices .................................................................................................... 66 Appendix A - The 2008 CIPD review of e-Learning.................................... 66 The CIPD report on e-Learning (2008) - summary ................................. 66 Appendix B – Donald H Taylor response to CIPD Report ......................... 68 Extract from “Reflections on the CIPD Survey” by Donald H. Taylor ...... 68 Appendix D – expert predictions for 2009 - eLearn Magazine.................... 71 Appendix E Readers’ responses to “Expert” predictions ............................ 77 Appendix F How did they do last year? Seb Schmoller reviews 2008’ expert predictions.................................................................................................. 79

The UK e-learning Market 3

© Learning Light Limited 2009

I Forward by Creativesheffield

Creativesheffield is pleased to be supporting the publication of this important report. As the report demonstrates, the global market for e-learning content is growing at a rapid rate as both large and small businesses and educational institutions are seeking to deliver their learning in a smarter and more cost effective way. Much of this is enabled by advances in digital and new media applications and through the deployment of new technologies. The digital and new media industries in the Sheffield region are growing at a faster rate than anywhere else in the UK in terms of specialist companies and new jobs. This is due in no small part to the significant cluster of e-learning businesses in the city which have made Sheffield the UK centre for such activity. The city is home to one of the largest applied e-learning services organisations in the world; Ufi learndirect, as well as a breadth of companies covering the full spectrum of e-learning solutions and online information services. Sheffield is also home to Learning Light who have become a recognised centre of excellence in the use of e-learning and Learning Technologies and helped to further accelerate the growth of the already substantial e-learning sector in the city. This growth has been assisted by the arrival this year of the first phase of the Sheffield Digital Campus, a 600,000 sq ft development in the city centre specifically designed for digital and technology businesses. The sector will also benefit from the Digital Region, a high profile £100m pilot project that will be completed in 2012, to roll out next generation broadband across Sheffield and South Yorkshire.

James Wilson Investment Manager Creativesheffield T: E: +44 (0)114 223 2345 james.wilson@sheffield.gov.uk

The UK e-learning Market 4

© Learning Light Limited 2009

II About Learning Light Learning Light is a centre of excellence in the use of e-learning and learning technologies in the workplace.uk one of the leading resources on e-learning in the UK. our most recent joint publication is: “The Use of e-Learning in the Workplace: A Systematic Literature Review” by Maggie McPherson. Learning Light. University of Leeds.co. Miguel Baptista Nunes. School of Education. University of Sheffield and David Patterson. We have undertaken a Systematic Literature Review of the available papers on the effective use of elearning. Department of Information Studies. Our knowledge base contains over 400 papers offering insights & advice on how to utilise e-learning & learning technologies.e-learningcentre. Learning Light operates www. Learning Light works closely with both the University of Leeds & Sheffield. The UK e-learning Market 5 © Learning Light Limited 2009 . in conjunction with the University of Sheffield. the regional development agency for Yorkshire and the Humber. Learning Light is supported by Yorkshire Forward.

He has worked for Learning Light for four years. sales and marketing and supporting change programmes in the food distribution industry.The Authors David Patterson David Patterson gained 20 year's general managerial experience. where he provided business development advice and investment support to e-learning and learning technologies businesses across Yorkshire. The UK e-learning Market 6 © Learning Light Limited 2009 . David has maintained a close link with the university and utilises the network to continue his research interest in elearning and information systems. before enrolling at the University of Sheffield to study for a MSc in information systems. including strategy and planning. sparking his interest in elearning.

Learning Leadership is a small organisation formed by Glynn in 2003 after nearly 19 years with Thomson NETg as. In 2003 Glynn started to develop new ways of achieving improved performance and working relationships. Head of SAP Business Unit and finally head of special projects outside the USA. private and third sectors. Learning Leadership works in public.Glynn Jung and Learning Leadership Glynn Jung is widely known across the UK and North America in both Learning and Development and Technology Enabled Learning circles. Middle East and North America… he’s been around a bit. using technology when appropriate. variously. including in the fields learning strategies. most recently an interactive-video programme on subconscious bias conducting appraisals The UK e-learning Market 7 © Learning Light Limited 2009 . report and advise on specific learning issues and develop strategies in business. Head of Consulting. Projects scaled from 245000 learners in 87 countries to 20 teachers in a primary school. He also leads blended learning development projects for commercial and non-commercial. From his early days (1972) in training at IBM’s Research Labs. health and the community. team-repair and managerial coaching. with improved diagnostics to pinpoint priorities and focus energies in learning. where he worked with mainframe CBT blended with books and U-Matic videotapes. to his most recent market research and learning strategy projects in Europe. relentless change and resilience. Now part of a virtual network of small organisations which Glynn has brought together. Glynn is regularly commissioned by organisations to research.

her projects included the development of an on-line regulatory compliance programme for more than 1000 customer facing employees to assist the transfer of knowledge and best practice into the workplace to meet business critical timescales.000 operational employees. for more than 15 years. Previously as learning and development consultant for the royal mail she assumed a lead role in the design of core skills learning pathways to support people development and enhance the performance of 164. Prior to this she was training manager for BT where she was responsible for designing people development and engagement programmes to align to business and training need for specific business operational units. The programme was designed to meet the needs of the business and establish a flexible workforce with career development opportunities.Gill Broadhead Gill Broadhead has specialised in learning & development programme design and implementation that optimises learning technologies. In addition. The UK e-learning Market 8 © Learning Light Limited 2009 .

com Assessment21 offers a genuine 21st century approach to assessment and marking . education. including components such as needs analysis. Company Assessment 21 Interviewee Gerard Lennox Web site and About http://www. (CPD). Aurion Learning designs interactive and motivational online learning programmes and learning support tools including online continuous professional development.III Acknowledgements and thanks We would wish to extend our thanks to Yorkshire Forward. The UK e-learning Market 9 © Learning Light Limited 2009 Aurion Learning Dr. courseware and accreditation tools. Maureen Murphy. http://www. But. We provide a turnkey service for the design.assessment21. scripting and production of learning packages. assessment.com Aurion Learning is an award-winning educational design company founded by the current Managing Director. MD BTL Bob Gomersall .btl. http://www. Sheffield Chamber of Commerce and Sero Consulting who have all supported Learning Light and especially to Creativesheffield for their support and sponsorship of this report. portfolio kits. Maureen Murphy. most importantly our thanks go to the following companies and individuals we were able to interview for this research report. We provide both the on-screen assessment content and the delivery systems and services.com BTL Group Ltd provides technology solutions for e-Assessment and eLearning. 360 degree assessment and performance management. Dr.taking e-assessment way beyond multiple choice and lower learning levels.aurionlearning. health and central government as well as the private and Voluntary & Charity sectors. Aurion Learning has a strong track record in the public sector.

We’ve found that compromise is not the answer. today’s media literate audience can’t be expected to deal with anything that’s not immediate and memorable. We blend entertainment and education.e2train. e2train Rob Caul eOrigin Mike Mulvihill The UK e-learning Market 10 © Learning Light Limited 2009 . http://www. Used correctly. We’ve been designing training for many years so we understand what makes good learning – the focus must be the user. After all. hearing and interacting. educate and.eorigen.com Based in Cirencester (UK). rich-media will get the point across instantly. learning and play. We make digital learning materials to support formal education in schools and colleges as well as informal learning experiences.com/ eOrigen is a leading producer of high quality media-based training and communication programmes.uk Since 1998 we have been creating innovative and exciting digital learning experiences.desq. http://www. People absorb information by seeing.e2train is a proven and reliable supplier to both the public sector and blue chip private sector corporations. e2train team has had a solid track record in delivering both off-the-shelf and bespoke learning systems.DESQ David Squire www. most importantly.co. empower people. we have been delivering award-winning learning and performance technology solutions since 1995 to an enviable portfolio of customers across a diverse range of business sectors that have all benefited from our experience and expertise. Working collaboratively with clients we develop exceptional solutions that entertain. We bring the best of new media to learning. Video can show how things need to be done or bring high drama to a dull procedure.

futurate.uk Intellego Group is a learning and compliance solutions specialist. And our passion for elearning design is endorsed by over 50 industry awards. and we apply our expertise to producing effective digital strategy.fisconline. http://www.intellego. http://www. personal revision and assessment system which uses games based learning to make revision fun and interactive. usability and technical web standards.com We collaborate with our clients to craft high impact print and mission critical websites and software.uk/iamlearning.epic. providing ready-made curriculum linked revision and assessment material instantly in your VLE. quickly. I am Learning can be used stand alone or will integrate with your Learning Platform.co.co.i-ed.am Learning is a CURRICULUM ONLINE APPROVED. http://www.shtml i.co.Epic Tracy CapaldiDrewett http://www. e-Learning. Intellego works with organisations to solve challenges in the following areas: 1) Learning infrastructure 2) Performance improvement and 3) Compliance management. Intellego is an AIM listed PLC headquartered in Teddington with a Fisc David Smith Futurate Jonathan Grove i-education Michael Wilkinson Intellego Andy Green The UK e-learning Market 11 © Learning Light Limited 2009 . http://www. With domain expertise across the healthcare.co.uk Since 1986 we’ve developed over 5. retail and financial services markets.uk The FISC E-Learningonline™ platform allows companies of any size to create. manage and distribute online learning on any subject matter.000 hours of e-learning carefully tailored to each client’s needs. easily and inexpensively.

http://www.Kineo Steve Rayson creative team based in Newcastle. and formed development partnerships in Eastern Europe.uk/ Peakdean Interactive offers unrivalled expertise. We're passionate about new technology and how it can enhance learning and performance. We have worked as the lead partner on national NHS infrastructure projects.co. and from hosted online learning portals to capability building with internal teams.line. and developed complex systems for Universities. through content development to full technical implementation.com/ MyKnowledgeMap today has a wideranging set of interests. We help our clients develop their business case for it. http://www.myknowledgemap. to 20 hour custom solutions. building on their existing infrastructures. helped to support many of the UK's Sector Skills Councils and National Skills Academies. http://www. high levels of technical competence and a wealth of experience in all areas of e-learning.peakdean.kineo.com/ We bring fresh thinking and innovation to deliver high quality e-learning that starts with great design and follows through to successful delivery. blended learning © Learning Light Limited 2009 12 LINE Steve Ash Communications My Knowledge Map Rob Arnsten Peakdean Peter Ross The UK e-learning Market . These range from 20 minute rapid e-learning modules delivered in days. We've got the design and delivery experience to make things happen fast. We have run trans-national projects. We deliver learning solutions for some of the world's leading organisations. and then deliver everything from design.co.uk/ We have been delivering interactive learning and communications since 1989. covering all aspects of learning technology. We're committed to helping our clients succeed with their performance and learning goals. http://www.

Working with your content experts we discuss the options that are available to create compelling and creative e-learning solutions. and training organisations PTK Training Patrick Fitzpatrick Real Projects Scott Hewitt Safari on-line Martin Collinson The UK e-learning Market 13 © Learning Light Limited 2009 .Pixelearning Kevin Corti solution development and performance support. Working with your content we can help to design and develop your e-learning modules and deploy them quickly. By identifying the critical needs of your business and the infrastructure / logistics in place our approach enables us to achieve significant results for you http://www.com/ PIXELearning is a world-leading provider of immersive learning simulations and 'Serious Games' for organisational learning and development. Safari Books Online has become the trusted search for technology information. We believe in delivering high interactive.ptktraining.com Today Safari Books Online offers a depth and breadth of technical content that no other electronic reference resource comes close to matching. Safari is fast changing the way that corporate.realprojects.com PTK Training is a learning and development organisation. http://www. business education and marketing communications.co.safaribooksonline. challenging and exciting learning. successfully delivering bespoke e-learning and instructor learning solutions to both the private and public sector.uk/ Using our creativity and experience we design custom e-learning modules that benefit your learners and your organisation. Without question. http://www. academic. If you have existing training material such as PowerPoint slides we can quickly and effectively transform your content. http://www.pixelearning.

co. Wales.uk WebAnywhere Ltd has been established for over seven years and provides innovative website and multimedia solutions to schools in England. We are well placed to deliver the full range of ICT.skillsoft.co. unlike many other e-learning providers. Our key objective has been to help enhance the traditional learning solution through the careful integration of technology.Skillsoft Kevin Young access information. As a leading edge technology focused company. education and small to medium-sized businesses.virtual-college. SkillSoft enables business organisations to maximise business performance through a combination of comprehensive e-learning content. Virtual College has developed into one of the UK's leading providers of total solutions within the e-learning arena. http://www.com SkillSoft is a leading provider of e-learning and performance support solutions for global enterprises.uk Founded in 1995. flexible learning technologies and support services. government. This total solution embraces all aspects of the learning experience and. The knowledge and experience that this delivery provides helps ensure that we strive to continually improve the solution. including full Virtual College Bob Gomersall Webanywhere Sean Gilligan The UK e-learning Market 14 © Learning Light Limited 2009 . extends to actual programme/qualification delivery resulting in a unique blended delivery solution. http://www. http://www. Scotland and Northern Ireland. The company has developed a comprehensive product range focused specifically on helping businesses improve their performance through the adoption of new ways of learning. online information resources.webanywhere. we are always up to date with the latest Internet trends and developments.

pupil eRegistration and Google Analytics.co. nursery and special educational needs establishments. clubs. and are world leaders in e-learning and accessibility issues. As well as web design and content management services. such as radio podcasting and video – 'vodcasting'. The Workshop Mark Pearce http://www. we offer a wide range of additional products. such as surveys.com/ Xoolon is an online interactive sports community bringing together schools. Xoolon Martin Spence The opinions and analysis put forward in this report are those of the authors alone. secondary. We have the skills and experience in-house to develop learning solutions in all media. plus fun. associations and governing bodies within the sporting industry.theworkshop. The UK e-learning Market 15 © Learning Light Limited 2009 . pupils. enthuse and inspire learners and deliver accredited qualifications. Since 2002. Our products engage. we have dealt with primary. http://www.training for your staff.xoolon. Each school has access to their own internally editable PE website enabling communication and assessment around sport and fitness. innovative learning solutions that create tangible business results. interactive technology.uk We design and develop world-class.

e-skills.. from micro-businesses developing innovative technologies to established major service and product suppliers in the UK.uk . but we have necessarily updated the content to reflect the changes and trends within both the industry and the UK marketplace. including: o Seb Schmoller. UK industry leaders and niche players) o Game Based Learning (GBL) practitioners An important part of the process of information gathering and interpretation has been a series of interviews with organisations engaged in the e-learning market.1. “UK e-Learning Report” which we posted on our e-Learning Centre website www. Finally. Our goal has been to provide both suppliers and purchasers with an understanding of what’s possible. comprehensive Report. We particularly seek to offer positive suggestions for both commercial opportunities and for how e-learning can deliver rapid ROI and performance improvements to organisations and communities in these turbulent times. entertainment. gaming. DCKTN and The Digital Britain 2009 Strategy. We also include Appendices including the latest CIPD survey of e-learning and pundits’ prophecies for 2009 and beyond some comments on the accuracy (or otherwise) of earlier prophecies. Learning Leadership and other industry watchers. Introduction 1. .e-learningcentre. In addition to our own experience and expertise within Learning Light we’ve drawn on independent sources. The Report has since become our mostly frequently visited and downloaded resource but the rapid rate of change in our industry means we need to be able to respond to the increasing requests for advice and information received by Learning Light with a new. Bersin. learning and assessment. o BECTA. We also comment on the convergence of technologies and design techniques for business. industry SIGs and research bodies o Training Outsourcing Inc.co. The UK e-learning Market 16 © Learning Light Limited 2009 . we include some analysis of public sector procurement patterns derived from the Learning Light Market Intelligence and Tender Information Service.1 background to the report In January 2007 Learning Light commissioned a briefing paper on the e-Learning market in the UK. The focus of the new report is similar to that in 2006. what’s available and where e-learning services and products are going. Towards Maturity.

The edited narrative of the interviews is included in an appendix with the full version of the report. with over 24 companies spread across the UK. The market size estimates varying between £300 million to £450 million. This report began as a simple attempt to update the report written by John Helmer on behalf of Learning Light valuing the UK e-learning industry. and a synopsis in the short version. However. The interviews also sought to understand the dynamics of the industry as it saw itself. The UK e-learning Market 17 © Learning Light Limited 2009 . we begin by updating John Helmer’s work with “what is going on” in the industry and draw some historical comparisons with other reports. In truth we can now offer a “tri –angulation” of what we believe the market size to be and the likely growth potential. It is from this original report that our analysis begins. The financial modeling and third party research all correlated in a robustly positive trend of continued and significant growth for the UK e-learning industry.7% and 8%. We begin by offering a brief model of what we believe is the present working definition of what is meant by e-learning and learning technologies. the on-going and valuable work of John Helmer and other research made available to us to assess the size of the market. The principal finding is that the UK e-learning industry remains robustly positive in its view of the market and the prospect for continuing growth. its ability to change and adapt to new technologies and business models and its views of the likely structure of the industry in years to come.2. and we are indebted to Michael Allen for his definition and illustrations. but one we have significantly developed by both interviewing a number of leading players (vendors) in the industry to ask their view of the market and by further seeking to quantify the market size. This series of semi structured interviews were conducted over 2 months in 2009. Executive Summary This report is designed to offer an overview of what we believe is the present state of the UK’s e-learning and learning technologies industry. We have drawn on our own financial modeling. and growth rates forecast of between 6. such as Epic’s market report. It is from this that we put forward our proposition that the UK e-learning and learning technology industry is indeed flowering! We spend the next sections setting out the evidence that we believe underpins this proposition.

This is illustrated in how the UK’s e-learning industry has adopted gaming and immersive learning scenarios. both technologies and market drivers which we believe will underpin this growth. Our premise being that this industry “flowering” is based not just on organic growth as more and more companies seek to utilize e-learning and learning technologies – though we do highlight that training companies (sometimes a little unfairly seen as the enemy of e-learning in the UK!) and more medium sized enterprises are adopting e-learning. and secondly the adeptness with which the UK e-learning industry is adopting and exploiting new mediums of delivering learning is crucial to the industries growth trajectory. just as they did in easier times.m.learning 2.Finally we present a set of trends. Despite the difficult times. resulting in undoubted downward price pressure and cuts in training budgets and public sector projects we believe that the UK’s e-learning industry. Sheffield and Brighton are set fair to weather the economic downturn. The UK e-learning Market 18 © Learning Light Limited 2009 . but that there are other factors are at work. again based on our interviews with the companies. and other research and opinion gathered.0 and Social networking than the IT industry and is on the cusp of delivering true “portable flexible learning” – or as we search for another cool term . We can only reflect the optimism and confidence.0! It is the fascination of both the learning and development community and the marketeers particularly with social networking that bodes so well for the e-learning industry. rapid development tools and is perhaps more expert in its adoption of Web 2. and its two principle hubs. One key factor highlighted is the role of marketing departments in commissioning learning to support customers. the innovation and enthusiasm and the e-learning industries undoubted focus on delivering the right learning for the individual and organisation that so characterised our research findings. There is no doubt that companies will come and go.

1 e-learning components Allen then seeks to illustrate the components referred to as below: The UK e-learning Market 19 © Learning Light Limited 2009 . We have used e-learning and learning technologies as our principle terms of descriptive reference.” He does add – “Some uses are effective – magnificently so.3.1 e-learning . Previous terminologies used have included “Computer Based Training” (CBT).” 3. Others are not. we have also seen “Computer Mediated Learning” used as a term. 3. In attempting to answer this we have turned to Michael Allen and his work “Creating Successful e-learning” (Pfeifer 2006) as a starting point. Increasingly we see the term “Computer Enhanced Learning”.definitions Allen describes or defines e-learning like this: “The term e-learning applies to the broad range of ways computing and communication technologies can be used for teaching and learning. “Tele-learning” and still the quite widely used expression “on-line learning”. What is e-Learning? What is e-learning? There are many terms and definitions applied to this particular genre of learning.1.

Allen proceeds to offer a second definition to overcome the issues around just simple presentation of content. unless they are used in a context configured for learning. Accordingly we present two more diagrams seeking to define and conceptualise e-learning. and provides the following definition: “e-learning is delivery of carefully constructed instructional events through computing technologies.” This Allen argues is a more useful definition as it excludes simple communication. firstly a slightly amended version of Allen’s to support the use of communication and publishing of e-learning: The UK e-learning Market 20 © Learning Light Limited 2009 .

e-publishing and learning tools And secondly. and in the light of the interviews undertaken with twenty plus e-learning companies we feel that The UK e-learning Market 21 © Learning Light Limited 2009 .3. in the view of the reports authors.1.2 e-learning.

2 How e-learning is flowering How e-learning is flowering (Based Michael Allen’s model) Learning devices Learning resources e-learning 2. This model seeks to build and illustrate for the purposes of this report the whole fragrant flower that e-learning and learning technologies is.0 Can all of this flowering really have happened in two years.below we illustrate how e-learning is evolving – indeed flowering. 3. well. below is a The UK e-learning Market 22 © Learning Light Limited 2009 .

The big question is what are the next petals to be added to the e-learning flower! The challenge and purpose of this report is to understand the e-learning market and how it is flowering and what new petals will burst into bloom. Emerging technologies to Achieve real results”.1 “Movers and Shakers” 2007 In April 2007. following the Learning Light study. embedded learning ORGANISATIONAL LEARNING SOLUTIONS rapid e-learning. free Web 2.slide Learning Light began delivering more than three years ago. developed by our then colleague Jane Hart.0 e-Learning 2. or in-house specialists large organisations e-Learning 1. workflow-based. From automation to the Workplace innovation In automation online versions of f2f courses (web-based training) CONTENT Web 1.0 Indeed 2009 saw the publication of e-learning 2. instructional self-paced courses INDIVIDUAL LEARNING CONTENT outsourced.0 informal.0 tools SMEs and others small/mediumsized orgs innovation Web 2. with the cover subtitle “Proven practices. The Epic study identified 157 companies providing e-learning services in the UK but research was limited to those whose financial performance is available from Companies The UK e-learning Market 23 © Learning Light Limited 2009 . based on a study carried out by Epic. will it be learning devices and mobile learning. 4. the author of that paper John Helmer released a new report on the “Movers and Shakers” in the U.0 and informal learning as the tools to create learning organisations.0 Players in the UK e-Learning market 4.K.0 static HTML formal. or will it be e-learning 2. e-learning industry.0 by Anita Rosen. This book reviewed the range of technologies now available.0 new tools: SHARING blogging COLLABORATION wikis SYNDICATION podcasting new ways of RSS learning social networking Niche specialists e-Learning 2.

training companies and outsourcing organisations. 34 in total. helped by access to Open Source technologies.1. CICs and not-forprofits within the industry. particularly in Yorkshire and Humberside. We are also witnessing the emergence of social enterprises. We follow the tables with an update on the fortunes of the 34 companies which Epic studied in detail. This excluded major players like Tata. Line and Brightwave which from our perspective made the survey of limited value.1. particularly since it’s generally accepted that 8-10% of revenues nationally are generated by the Top Ten players on any list.g. to supporting the interests of this community. Because there are so many tiny consultancies in the industry in the UK we have decided that a list of their names would add little to the value of this Report. This also includes UK registered trading arms of multinationals. 4. which we have updated and which appears in the tables below.3 Note on UK e-learning consultancies The majority of e-learning businesses in the UK are micro-businesses or SMEs meaning they do not have to submit full accounts to Companies House.: o large companies active in the UK with e-learning as a non-core activity o companies principally engaged in e-learning as core business o companies featured in the 2007 “Movers and Shakers” report 4. Consultancies in particular are typically small and often invisible to sector scrutiny because they operate as Associates for big organisations. however. The study also. viz. At Learning Light we are committed. Table 1 Large companies active in UK with e-learning as a non-core activity Accenture Amaze BDP Media BSG BT Capita Computer Software Gatlin Frost & Sullivan Group HP I BM ILX Group plc Kaplan KnowledgePool Logica CMG The UK e-learning Market 24 © Learning Light Limited 2009 . particularly IT companies. understandably.2 UK’s e-Learning players In this Section we bring up to date the tables of players included in the previous Report. and maintain and develop a comprehensive registrar of consulting organisations in the UK. Defence) John had previously offered 3 listings in the Learning Light 2007 study.House. tended to focus on competitors to Epic or players in Epic’s market sectors (e.

Cognitive Arts and Element K Pearson Premier IT Reed Learning plc Thales Table 2 Companies active in the UK wholly or primarily engaged in eLearning aardpress Absolutely Training Academy Internet Academee (now part of Oliver Wyman) AccessPlanIT Atlantic Link Ltd Atlas Interactive Ltd Attic Learning Auralog Aurion Learning Balance Learning BBC Worldwide Interactive Learning BdM Development Blackboard Bourne Training (now merged with RedTray) Brainvisa Bridge2Think Ltd Bridge-Learning Brightwave BTL Group Ltd BYG C2 Workshop Can Studios Caspian Learning CIA Training Cobent Ltd Coggno ComplyWise Copia (now part of Intellego) Corous Course-Source Ltd Cross Knowledge Cylix DACG Limited The UK e-learning Market 25 Information Transfer Insite Objects Interwise Intellego Jenison Kineo Knowledge Solutions learnDirect LearningGuide LearningMotion Learning Pool Line LM Matters Ltd LMD Learning Solutions Ltd m-learning Mohive Music Factory Mycourse Limited MyKnowlegeMap NetDimensions Limited Netviewer GmbH New Wave Learning Noor Informatics NuJuice October Systems Open Mind Ltd Outstart PageForward Learning Panviva Peakdean Pixelearning Ltd Plateau Learning Systems RedTray Rosetta Stone Language Learning Safari e-Reference Saffron Sales 101 © Learning Light Limited 2009 .Macromedia Europe Ltd Oracle Plateau Systems QA Rhema Group Tribal Group Matchett Group Parity PPI Learning Raytheon SAP UK Vega NIIT UK.

datango AG datmedia Ltd DeltaNet International Desq DTV SanScrip Seminar Serco learning Simulacra Media Ltd e2train e4Learning Echelon Publishing Edvantage Group Eedo Knowledgeware E-learning WMB Electrovision Element K (now subsumed in NIIT) Ellerton Training Services Ltd Embrace Learning Engage revision ENI Enlightenment Productions eOrigen Epic EQHO Communications Ltd ETS Europe UK FISC Fuel Europe Fullard Learning Futurate Futuremedia GBS Corporate Training Giunti Interactive Labs Global Learning Alliance Happy Computers Harbinger Harlequin Training Solutions Headlight Communications HT2 ltd i-education Idigicon ikonami IMC (Formerly Communication AG) Infinity Infobasis Ltd Information Multimedia SkillGate Ltd Software Training Technology (STT) Sponge UK SSR-i STAR Consulting Ltd Tata TIS Teknical Telematica Texthelp Systems Ltd The Orange Group Ltd The Working Manager Thirdforce (embraces former brands Electric Paper. AV Edge and CLM. Mindleaders name still retained) Time2study Traineasy Ltd Trainer1 Trax UK Ltd Tribal education services Trivantis TTS Europe Ltd Umbel (TfA Group) Upskill Video Arts VTN Technologies Vuepoint Walkgrove Watsonia Workshop WBT Systems Webanywhere Webarchitects Wired Red UK Ltd Xperience Xoolon Xyleme The UK e-learning Market 26 © Learning Light Limited 2009 .

nuclear and heavy industry PTT Pretty solid player in IT training market QuestionMark Long established online survey and assessment software supplier The UK e-learning Market 27 © Learning Light Limited 2009 . never really cracked the corporate market but still arguably the largest supplier of level 1 and 2 training in Europe LRI Strong player in leadership and management market MARIS Technologies Still going strong. Soft) Jenison One of the success stories of UK industry.Table 3: Looking back to the Epic UK Marketplace survey (2007) The 34 companies in the Epic 2007 study. how they are faring Company Comments Academy Internet bought by RedTray February 2009 Adval Group defunct Assima going strong Atrium disappeared Communications Attic Learning disappeared Easy i now formally known by name of parent company SAI Group. Imparta Still a force to be reckoned with especially for Sales and Marketing training Ivy Learning (Ivy Budget end of market. who in turn were acquired by EdvantageGroup Enlight disappeared Epic Bought by Huveaux Group in 2005 and sold to entrepreneur Andrew Brode in 2008 FT Knowledge Going strong Fuel IT acquired by LRN (compliance training specialists) and renamed Futuremedia 2008 acquired by EdvantageGroup from Norway gtslearning The driving force in CompTIA e-learning for IT industry. Happy Computers Continues to win awards for its e-learning and blended learning. compliance specialists EBC sold to Futuremedia. Grown from a budget off-the-shelf supplier to a recognised force in the industry KnowledgePool Now one of the largest LBPO companies in the world learndirect Solutions Still in there. Going strong. uses offshore production Outstart Major player in LCMS sector Pennant Track record in defence.

including eLearning US-led dominant force in big-budget HCMS market Although the massive 3-5 year library deals are declining in popularity it’s hard to fault SkillSoft’s service levels. then further growth by acquisition (Pathlore 2005 and Mindsolve 2006) Electric Paper. Originally Docent & Click2Learn. NETg merger pretty much faultless. product focus or strategy (e. Academy Internet etc). this US-led has successfully emerged from the SAP / ERP training sector to become a major performance management supplier. acquiring Books 24 X 7 and Thomson NETg).g.Redtray RTIX RWD Technologies Saba SkillSoft SumTotal Thirdforce Thomson NETg TPG Academy XOR Still growing both organically and by acquisition (Bourne. The UK e-learning Market 28 © Learning Light Limited 2009 . acquired by Ultimate Software in October 2006 and brand name disappeared 21 years old. Mindleaders etc…steady growth in revenues and now entered US market via Mindleaders but also actively selling Mindleaders in UK gone The Project Group acquired by PPI Learning in 2008 Technology-led and successful across Europe in major and online training programmes.

o Caspian Learning – doing well in the world of immersive learning solutions. o Atlantic Link is aggressively forging ahead with development tools and platforms – firmly a top ten player. o DESQ . Brighton and now Sheffield.interviewed: Sheffield based pioneer of gaming and learning.Table 4 Interviews and other news: News and views on who’s doing what o Academee merged with Oliver Wyman in 2009. and heading – arriving in the USA o LINE Communications –– interviewed: very probably the UK market leader in e-learning content. Rosetta Stone and GlobalEnglish continue to lead the way. o CrossKnowledge’s mix of blended learning products plus academic studies and their own Faculty seems to be a winning mix. o Assessment 21 – interviewed: new launch business pioneering the next generation of e-assessment. for the online language sector with Middle East and New Europe major markets.interviewed: LMS vendor continuing to win work. o Auralog. o BTL – interviewed: well established business seeing solid growth in o e-assessment. o i-education– interviewed: a young business already beginning to make a global impact o Intellego – interviewed: Still doing well in the world of compliance and regulation with in depth expertise in several vertical markets o Kineo –– interviewed: a major success story. it is all about the future with real insight. o Aurion – interviewed: Belfast based company have carved a niche with CPD management systems. community portals and public sector bespoke work. o Cobent and ComplyWise In the general compliance technologies (now part of BSI) are the ones most commonly met. expanding into Europe o Mezzo Film – a film maker that launched the innovative Training Pod concept – deploying e-learning on a data stick into the NHS The UK e-learning Market 29 © Learning Light Limited 2009 . and the Thinking Worlds tool has attracted great interest. and confident in the future o e-origin – interviewed: Leading the trend back to film in learning o Epic – consolidated and coming back strongly with some real innovation and energy o FISC – interviewed: with a blue chip client base and a firm focus in compliance for financial services. o Brainvisa and Harbinger represent two of the new wave Indian companies who have swiftly and successfully cracked both UK and USA. Attracted significant investment and doing well. FISC continues to prosper o Futurate – interviewed: innovators extraordinaire. o e2Train . firmly believes the trajectory of e-learning will continue upward. in different styles..

The driving force behind the Norfolk e-learning forum o Safari on-line – interviewed: Bringing books into the 21st century o Skillsoft – interviewed: Still a major player proving e-learning really does work – true trail blazers. winning bigger and bigger clients. creative people rather than entrepreneurs or strong operations management it’s only reasonable to expect some will go stale or run out of new ideas to meet new market situations. (now QA again) NIIT acquired Element K Redtray merged with Bourne Training Academy Internet integrated key assets Adval The UK e-learning Market 30 © Learning Light Limited 2009 . o Xoolon – interviewed: bringing sport and e-learning together – and it won’t stop at just sports – life style learning leaders. as below. 4. o Peakdean – interviewed: long established player who produces quality e-learning for a wide range of blue chip clients o Pixelearning – interviewed: It looks like a breakthrough for Pixelearning.1. o o o o o o o o Saba completed acquisition of Centra Edvantage Group completed acquisitions of Kognita and FutureMedia Blackboard and WebCT completed merger under the Blackboard brand FutureMedia completed acquisition of ebc QA and Interquad merged to form QA-IQ. o Umbel – apparently prospering o Virtual College – interviewed: Another very successful practitioner of the virtual academy model o Webanywhere – – interviewed: UK market leader in providing school web sites and one of only four UK Moodle partners – going international from Keighley o The Working Manager active in similar areas but each a different product o The Workshop – interviewed: The Workshop continues to prosper on its values of excellence and innovation. Consolidations. and more. and still up there.o My Knowledge Map – interviewed: making the virtual academy model really work. With the industry containing so many SME organisations founded and managed by bright. as they continue to prosper in the US Market o PTK training – interviewed: New start for very experienced CEO o Real Projects – interviewed: Doing a great job in pioneering e-learning in East Anglia.3. Mergers & Outsourcing In the run up to the publication of the 2007 Report there was the usual string of acquisitions and mergers.

Logica CMG. Top-down . which is no longer a peculiarly American phenomenon. Learning and Development comes into the frame as a candidate for wholesale outsourcing. including Accenture. In the USA LBPO is big enough to merit its own league table and industry association (see: http://www. (LBPO). This movement into managed learning is coming from both top down and bottom-up.com/Index. As clients move to outsource increasing numbers of their HR processes to external suppliers. One problem this can throw up for suppliers is the disconcerting experience of turning up to a client meeting to find that the client’s HR operation has been outsourced.Earlier in this Report we revisited the Epic marketplace survey to see how the 34 companies surveyed had fared. Company Comments Academy Internet acquired by Redtray February 2009 Epic sold to entrepreneur Andrew Brode in 2008 Fuel IT acquired by LRN 2007 FutureMedia 2008 acquired by EdvantageGroup KnowledgePool Now one of the largest LBPO companies in the world RTIX acquired by Ultimate Software in 2006 SkillSoft acquired Thomson NETg 2007 Thirdforce acquired MindLeaders in 2007 to (a) consolidate Thirdforce presence in USA and (b)create competitor in UK to SkillSoft and Element K Thomson NETg acquired by SkillSoft in 2007 TPG Academy The Project Group acquired by PPI Learning in 2008 The trend to outsource L & D continues worldwide. and that instead of talking to their regular contact they now have to negotiate with the outsource provider – typically a competitor or with a different service focus and offering from the supplier. KnowledgePool. To show how the market moves on we repeat the table from that part of the Report. Serco. HR.asp) .trainingoutsourcing. QA. Capita. Cap Gemini.Looked at from the perspective of a large management consulting firm the managed learning market is a subset of the HR outsourcing market (which is itself a subset of the wider BPO market). Several companies are making a determined play for the space in the UK. The UK e-learning Market 31 © Learning Light Limited 2009 . and the consideration that e-learning involves both HR and IS means that much heat is being generated by the idea of Learning Business Process Outsourcing. IS and logistics are typically the most outsourced functions in the enterprise. IBM.

virtual classroom.Bottom-up . blogs.) and new ways of combining them coming on stream all the time .to be left to mere training managers. Outside (and outsourced) help needs to be sought. There is an argument that organisational e-learning is now too complex a beast – what with the proliferation of learning modalities (pod casts. The UK e-learning Market 32 © Learning Light Limited 2009 . wikis. and to offset the ‘lumpiness’ of their training revenues by locking clients into longterm programmes with recurring fees. a move into managed learning arises out of an aspiration to get further up the food chain within the organisations they supply. etc. etc.For training and e-learning companies. KM.

e.5. Technology Trends.1. We spoke at length to 24 companies from Brighton in the South and Newcastle in the North. with the economy driving demand……. Here we hoped to both understand the mood of the industry.1 Continuing growth…? our opener being: The e-learning industry has enjoyed considerable growth in the last few years. and capture its views as to current Market Trends. 5. and Future Industry Trends. 5.0 The Survey interviews In seeking to validate further our research into the market. do you anticipate this growth to continue?” The overall view: Looking good. The response to the survey we conducted with industry leaders in preparing this Report has been so positive and the outcome so productive that we plan to repeat the exercise on a regular scheduled basis going forward. We spoke to companies from the new and very small to the large and well established.1 Market Trends We began our interviews with a series of questions around the market trends and prospects for e-learning in these difficult economic times. and those on that aspirational journey toward success (i. somewhere in the middle) as we sought to build our picture from an industry perspective. to Norwich in the east and to Belfast in the west. and of course as you would expect to a number of companies in Sheffield – where we believe the UK’s hub of e-learning is located. And that’s not all…… Learning Light Synopsis: The UK e-learning Market 33 © Learning Light Limited 2009 . we undertook a series of semi-structured interviews with a wide and representative group of e-learning and learning technology companies.

cost saving and overall rising interest in e-learning solutions have mitigated this. but many other reasons were put forward for this optimism. and a trend toward in-house development using the new content tools that are appearing on the market. and to identify whether there had been changes to the sales cycle as the economy contracts. if so. we believe that the interest level and opportunity pipeline is The UK e-learning Market 34 © Learning Light Limited 2009 . and interest levels were getting higher and higher While impressed.1. The growth potential was now being realized as e-learning and learning technologies had now passed the proof of concept stage. Common views were that the e-learning market is still a long way from maturity and there remains abundant growth potential.The response to this question from the twenty four companies interviewed was one of undoubted optimism toward the future growth potential for e-learning and learning technologies. but the demand drivers of speed. That contrary to expectation demand has not fallen away in the sectors where e-learning has traditionally done well. That the ROI models that e-learning can offer are getting more and more compelling. our next two questions where: “Are you witnessing a slowdown in demand and. There is some noted downward price pressure in the market.2 Signs of a Slowdown Accordingly. opportunity rich environment Learning Light synopsis: The companies recognised that there were a number of factors that dampened demand in certain areas and uncertainty in the economy had slowed some sales cycles. 5. However. but an increasingly. There is no doubt that the economy is viewed as both a challenge and an opportunity. what factors do you believe are causing this?” And “Have you noticed any changes in terms of sales cycles and starting projects?” The overall view: Some slowing in signing contracts and some delays overall. and pleased with the overall positive nature of the responses we sought to probe deeper and understand what potential issues could slow demand.

3 Importance of the public sector Next we sought to focus on the importance of the public sector: The public sector has always been of considerable importance to the e-learning and learning technologies industries. Our view is that usage of this new CPV code is slow in its uptake. we believe that public sector expenditure will come under significant pressure. but e-learning vendors will also experience greater challenges in justifying the ROI they can offer. and in one instance attributing a CPV relating to ICT network infrastructure to procure social networking applications.mitigating any negative or downward trend at present.1. However. 5. and it will be framework agreements and more competitive mini tenders that will drive The UK e-learning Market 35 © Learning Light Limited 2009 .80420000) for OJEU procurement of e-learning services has had an impact. We were keen to know more about patterns of public sector procurement and specifically whether the creation of a specific public sector CPV code (Common Procurement Vocabulary. This CPV was previously attributed to training services till June 2008. Accordingly our next question asked: Have you noticed changes in public sector procurement patterns and opportunities? And as the second part: Has the pattern changed now that e-learning has its own CPV? The overall view: The public sector is very important to the industry and the trend remains positive Learning Light synopsis: “We can almost hear the buyers’ pencils being sharpened!” At present there seems to be little evidence of a major slow down in the uptake of e-learning by the public sector. There is no doubt that public sector procurers will be demanding greater and greater price reductions. with its Market Intelligence and Tender Information Service tracks public sector procurement trends closely. some seeing e-learning as a custom software development service. with public sector procurers using a wide range of CPVs in their procurement. e-learning on the one hand could be well placed to deliver savings. Learning Light.

Which is the biggest threat to your business. the economy or new industry developments? The overall view: We are all realistic about the economy. will e-learning break out as has so often been predicted. and whether levels of interest are growing outside sectors that have already adopted e-learning – i.4 Where is business coming from Our next question was designed to see how well the e-learning industry is marketing itself. 5.1. with some companies telling us that they deliver tightly focused marketing operations specialising in specific sectors and others that work is coming from the unexpected or usually not! It is apparent that business is coming from differing angles. The second surprise is that business is still coming from sectors of industry that has been badly hit by the recession such as automotive and financial services 5. but it seems to be an opportunity. so we asked: Is business coming from places other than expected? The overall View: No but well Yes actually! Learning Light synopsis: This provoked a mixed and almost contradictory response.! We were surprised that very few of the elearning vendors were aware of the newly designated CPV for e-learning services.this cost saving agenda.5 Where are the threats Our final and rather “cheeky” question for the first section was designed to sum up views toward the overall economy and introduce the next section of the interview as we asked our interviewees about the changes in technology in our industry.e. as do new industry developments The UK e-learning Market 36 © Learning Light Limited 2009 .1. the one most significant trend is the increasing role marketing and communications departments are playing in using e-learning.

Technology did not appear to be perceived as a major threat, the majority of responders felt their organisation could adapt and utilise the new and emerging technologies. As noted in the sections above, the industry was realistic about the economy, but the very firm view was that the recession was an opportunity more than an issue. Learning Light Synopsis: Neither is perceived to have precedence over the other, both are seen as challenges and opportunities.

5.2 Technology Trends Having raised technology as an issue or opportunity, we were keen to get a more detailed understanding from the companies of what will shape the industry from a technical perspective. We were keen to understand, for example, the impact open source and web 2.0 would have on the e-learning industry. Were these developments likely to have an impact upon the industries revenues and structure? Or would they prove disruptive or an opportunity for further market growth? 5.2.1 The impact of open source Our first question was devised to open the topic and bring the much discussed Open Source technology to the fore. Some interviewees immediately focused on Moodle, others did not. Responses varied depending on the type of businesses, but the picture is mixed in its view, but confident in its ability to adapt and assimilate and crucially confident enough to ensure its integration in pursuit of improving learner performance: What do you feel is the impact of open source on the e-learning industry? The overall view: Its nothing new, we adapt to it and adopt it where appropriate

Learning Light Synopsis:
The UK e-learning Market 37 © Learning Light Limited 2009

This really was the Moodle, Ning, Snagit and Coggno etc… question. In short, it is our view that the adoption of Moodle and open source in general will be driven around one of cost benefits analysis and appropriateness. If companies are looking for a rapid tactical deployment of an LMS – Moodle may well be the one. There is no doubt that the M word stimulates some of the strongest views in the e-learning industry. This however should alert the industry to a major change as there are over 200 Learning Management Systems (LMS) and 75 Virtual Learning Environments (VLE) on the market, and just the mention of one can produce such debate! Discussion around open source in general can be seen as slightly more philosophical, and its impact both in the industry and on the industries clients.

Learning Light Synopsis: Beyond Moodle there was much less controversy about the role of open source software. The e-learning industry proves itself at being adept in adopting and adapting all manner of new technologies Technologies do not appear to be the issue to an industry such as this, it is much more about creating good learning in the eyes of the companies.

5.2.2 Web 2.0 – learning 2.0 Our next question focused on Web 2.0, an area of hype or an opportunity for e-learning, or even what was referred to as Learning 2.0. The responses generated a wide range of responses, with almost all seeing the importance of web 2.0, but many offering a word of warning to temper the enthusiasm expressed. Do you feel web 2.0 technologies in general will grow in importance and use in e-learning?

The overall view: Yes, Yes but use web 2.0 with a “health warning”

Learning Light synopsis There is in our view huge demand emerging from learners (and increasingly from their organisations) to translate what is happening in the web 2.0 environment and translate the techniques and technologies
The UK e-learning Market 38 © Learning Light Limited 2009

to the world of learning and development, and nowhere is this illustrated better than in the rise of social networking. Web 2.0 – or Learning 2.0 or whatever it is called and rebranded in future years is now here for the long term. It will evolve and improve and emerge in ways not yet considered by the mainstream of L&D, and will increasingly overlap with the marketing and communications function. The companies interviewed reflected both the excitement and interest of Web2.0, but were quick to point out that the usage must be tempered by one of appropriateness – hence the health warning! We however believe that the e-learning industry is very well placed to benefit from these trends as we drive toward the new learning organisation.

5.2.3 Social networking and e-learning Hence our next question, where we sought to focus on the rise of social networking in particular: How do you anticipate social networking environments impacting upon the e-learning industry? The overall view: Yes again- to anticipated growth and influence, but with that health warning Learning Light Synopsis Open source, web 2.0 and social networking all add greatly to both the debate and the opportunity. While some may see the new technologies as a threat to more conservative business models, these technologies undoubtedly provide huge opportunities to the content development and creative companies in the e-learning eco-system. The threat to the LMS and VLE vendors is there, but again it appears that they too are adapting to these developments and can take comfort in the innate and understandable conservativism of many private sector organisations to adopt these technologies. In contrast it is our view that it’s the public sector – often seen as a late comer to the e-learning industry- that is adopting the web 2.0 and social networking applications. We believe this to be because firstly there is no existing e-learning technology whose integration they need to consider and secondly because the culture of sharing good practice in the organisation is often more established. It is our view that these technologies will offer greater choice and greater creative opportunities to improve the learner experience – which
The UK e-learning Market 39 © Learning Light Limited 2009

the digital native learner, generation Y learner, or millennial learners comes to demand. However, the industry must take care to ensure clients are not confused, overwhelmed or exposed. We are confident that the e-learning industry is of a level of maturity now that it recognises that the crucial selection criteria of any learning technologies should be their appropriateness for each specific need. It is interesting to note that the L&D community is hugely interested in the power of social networking, but that it is the marketing and communications departments that are increasingly driving its adoption.

5.2.4 Future technology trends Our final question for this section asked our interviewees to pick out the trends they sort as likely to be important in the industry in the coming years: What new applications of technologies e.g. e-reference, online seminars, online coaching, e-assessment, mobile learning or serious gaming are you seeing or becoming interested in? And What other technologies have you noticed being introduced and used to deliver learning?

The overall view 1) Mobile – maybe this time, but its really about being portable, 2) Games – going that way, keep it real and get it more real, but the devices/consoles are a key consideration and their access is jealously guarded by manufacturers, 3)e-assessment has arrived, 4) don’t write off text – e-books and e-reference could be big…. 5) eportfolio is now firmly established 6) content is still crucial and how you use it is king! Learning Light synopsis It is difficult to summarize the wealth of views given to what was such an open question, but the answers illustrate one of the key trends that runs through this industry review – the sheer creativeness and openness in adopting technologies for learning that this industry has. Indeed we would recommend you read the interview narrative in the long version of this report.
The UK e-learning Market 40 © Learning Light Limited 2009

5. but it’s really about being portable Games – going that way.3. content aggregation models. rapid development models.3 Future Industry Trends In our third section we asked our respondents their views regarding the structure of the UK’s e-learning and learning technologies industry.yet? Devices make a difference – Nintendo DS or i-phones – cool ones are best! Keep it real and make it more real – film and TV quality production of learning e-assessment has arrived Don’t write off text! – e-books and e-reference could be big…. and how content is used is King! It is interesting to note the still apparent disconnect between the video games industry and the e-learning and learning technologies industry. Do see our interview section with leading gaming and learning developer Jake Habgood. but do note the disparity in size of typical e-learning developers and video games developers. . new relationships – partnerships and alliances and SaaS – software as a service all feature in the future development of the industry Learning Light synopsis The UK e-learning Market 41 © Learning Light Limited 2009 . We make no predictions as to how this disconnect will be overcome.. e-portfolio is now firmly established and e-Passports. given the characteristics of the industry was: Do you feel new business models are impacting on the industry? The overall view: Yes (but not so easy for new entrants) – tools driven models.1 New business models Our first question.Instead quite simply we reflect and agree with the overall industry view as put forward above: Mobile – maybe this time. including SmartCards are part of the education world Content and instructional design are still crucial.but not all the way onto consoles. new models to exploit IP. 5.

we were keen to know what the industry felt about the likelihood of takeovers and acquisitions. new starts and liquidations? The overall view.The e-learning industry is used to change and innovation. Likewise would the number of new entrants to the industry slow. as many of the respondents pointed out. acquisitions and liquidations In our next question we asked about the structure of the industry. it was perhaps Mark Pearce at Workshop that crystallized our views on this matter: “The industry has some similarities to the design and advertising industry.2 Industry structure – mergers. and Yes we will see liquidations but we will also see lots of collaboration Learning Light Synopsis We were intrigued to understand the industry structure and why this apparent ceiling to growth. and would there be an acceleration in this driven by the economic downturn.to adopt and adapt new technologies and techniques to deliver more effective and engaging e-learning. but the barriers from a learning perspective are. Yes – we will see continued new starts – often driven by take-over consolidations. and the number of liquidations increase? Do you anticipate the industry structure changing in the next 12 months – mergers. but this is the norm. The barriers to entry from a technology perspective are not high. but has yet to see its “WPP” emerge. This creativity and innovation is only likely to accelerate. The UK e-learning Market 42 © Learning Light Limited 2009 . We believe there will be a continuing trend toward collaboration and alliances both within the industry and in partnerships with IT Consultancies and training providers as “the blend” continues to be more and more influential. acquisitions.3. with new business models almost seen as the norm. The industry will continue – almost relentlessly . and not a surprising view given the e-learning industry make up – which is principally one of Small and Medium Enterprises. given that this industry has seen quite a number. 5. especially in the content development sector was one of Yes we will see consolidation as companies try rapid growth strategies. It is this innovative “colonisation” of new and emergent models that gives the industry its strength. and is responsible for designing in further growth.

” The industry should be very attractive to new starts and technology businesses seeking new markets. with companies seeking to acquire skills on a “contractor” basis as opposed to a full time employment basis. They then use and choose the appropriate technologies. It is these businesses that appear to have difficulty in scaling. Learning Light has tracked the e-learning jobs market closely in the Sheffield city region. Can tool vendors bypass developers and supply direct to users? What role does generic content have to play in this market space? Can large service providers in the LMS world supply to the more medium sized companies or will Moodle come to dominate that market 5. we believe.3 Skill Shortages Our final question was to understand the issues faced by the industry in skills shortages and development. Other models appear to have a differing market. 2009 has seen a change in the pattern toward skills requirements. based on our survey research. an almost 20% growth in job numbers on 2007. We also noted the trend in the industry to partner beyond the industry itself. The UK e-learning Market 43 © Learning Light Limited 2009 . We believe this evolving partnering with training businesses to be a significant trend likely to lead to a change in the industry structure and provide foundation for further growth. and 2008 saw. It is this that will drive growing levels of collaboration and occasional consolidation by acquisition as larger companies acquire niche vendors. at the content development end the market competes on creativity and cost. As Safari On-line’s Collinson puts it – more alliances than acquisitions. However. with an understanding of the learning requirement of the client often the key differentiator. the development of long term partnerships with IT consultancies and with training providers was noted and highlighted by some interviewees.This is probably because e-learning professionals have a slightly different mindset and are more passionate about delivering good learning content than outright growth. Indeed we may see large service providers acquiring specialist content developers.3.

The biggest single specified requirement would appear to be a shortage in good quality Instructional Designers. Consequently. the type of employment offered has switched significantly from full time employment to contract employment. without doubt Seventeen (85%) of our interviewees reported skills shortages when seeking employees or specialist sub contractors. We propose to undertake a new piece of research in the coming weeks and months. The most common theme across almost all the companies is a shortage of experience at quite a number of levels. Have you or are you experiencing skills shortages for employees or specialist sub contractors? The overall view: Yes. yet reflecting the continuing demand for skilled personnel.We believe this indicates a degree of caution in how the growth of the company payroll is managed. Many companies reported across the board shortages – and are “always looking for talent” as Workshop’s Mark Pearce puts it. while the number of vacancies in the Sheffield City Region for e-learning professionals appears to have only slightly declined compared to last year. Learning Light Synopsis The skills issue appears to be quite complex and multi-faceted. We have excluded the requirement for subject matter expertise and instructional design services which is very often acquired on a contract based procurement of services.have developed a “grow their own” policy. The UK e-learning Market 44 © Learning Light Limited 2009 . A number of companies – for example Line and BTL.

6. collaborative learning and JIT e-reference. In using organisations. o 'e-learning is effective when combined with other forms of learning' (95% support) o 'e-learning demands a new attitude on the part of the learner' (92% support).1 That was then: the Hambrecht report 2000 The Hambrecht report “Exploring e-learning: a new frontier” in 2000 defined three supplier segments in e-learning: Technology. e-learning now accounts for 12% of “total training time” Only 7% of respondents including e-learning in their top three practices and only 8% described it as “very effective”. Key findings included: o 57% of responders reported that they are using e-learning. Optimism for the future of e-learning is rife. As well as asking what percentage of training time is currently delivered through e-learning (12%) CIPD asked what this figure would be in three years time. with providers branching out into other areas driven by client need and converging technologies changing the shape of what was possible. In organisations using e-learning. 6. so professional HRD practitioners cannot comment on learning forms outside their remit and often their cognisance. but taken up by only 30%. Just as we are finding it virtually impossible to size the market because it’s hard to find its boundaries. informal learning.2 This is now: the 2008 CIPD survey on e-learning The 2008 Learning and Development survey included a special section on e-learning. o 27% plan to do so over the next year Two statements seem to command near universal support. it is likely to be offered to about 60% of the employees. Trends in the market 6. This phenomenon ‘we’ll all get it right over the next three years’ has been observed in previous CIPD surveys and earlier ASTD surveys. This produced the answer 27%. The UK e-learning Market 45 © Learning Light Limited 2009 . formal learning.6. Learning Light’s 2007 report commented on how the lines had continued to become increasingly blurred since then. What is striking is the inability of this sort of survey to define the whole technology-enabled learning spectrum… formal training. Content and Services.

and practitioners are increasingly confident with it. e-learning is a medium of delivery. Any effectiveness depends not on the medium itself. this phrasing makes no sense. which might smack of woolly thinking. You might as well ask whether books are an effective learning practice. Six years ago. below. because e-learning then implied something quite narrow. with attendance and assessment data collected by the learning and development. For them. actually tell a clear story of changing attitudes to learning technologies. this explains why only 7% considered it a ‘most effective’ practice. The most important thing about these figures is that we can believe them. 6. The UK e-learning Market 46 © Learning Light Limited 2009 . In providing materials and a structure for self-study. In 2002. those polled for this CIPD survey will have taken e-learning to include the much wider range of electronically delivered learning 2008. Taylor At first glance the CIPD 2008 Learning and Development survey is a mess of contradictions on e-learning. They are not the frothy enthusiasms of vendors and early adopters. e-learning added to these the concept of central planning and tracking via the learning management system (LMS).informal learning.2. Yet these figures. e-learning essentially meant the delivery of courses.1 Extract from “Reflections on the CIPD Survey” by Donald H. e-learning is now simply regarded as part of the learning mix.Particularly interesting is Donald H Taylor’s response. In 2002. And the message is simple: for those that use it. They are also part of a fundamental change occurring within the learning and development function itself. but how it is used. from LMS-delivered courses to EPSS and to the use of social networks and …. the question could have made sense. it was similar to its predecessor’s computer-based training (CBT) and computerassisted learning (CAL). they reflect actual learning and development practice today. In the absence of any agreed definition of e-learning. e-learning for most people meant an electronic analogy of the classroom: courses that were centrally prepared or commissioned. This broad understanding of the meaning of e-learning will explain why – in spite of the apparent contradiction of only 7% rating it among the most effective training practices – 47% of respondents said they used it more than they did two years ago. If people know what they’re doing with e-learning.

In other words. but can do much more besides. The LBPO Top Twenty Every year TrainingOutsourcing. Social networking and instant messaging will join tools such as email and ‘webinars’ among technologies that can be used to support learning. ‘What proportion of your employees use Google. and Capita) who have traditionally offered training to their clients.com offers a listing of the Top 20 LBPO companies worldwide and the Top 20 IT Training companies. Charles Jennings of Reuters bemoaned the fact that only 56% of organisations had a written learning and development strategy. to individually driven ‘pull’. Accenture. They will be part of a trend taking technologysupported learning away from page-turning on the screen to being a social experience. this survey shows comprehensively that in practice it has gone through the five stages of the Gartner hype cycle and is now resolutely past the trough of disillusionment and up on the plateau of productivity. In some cases these have shown rapid growth. In his essay for last year’s Reflections report. Role of large corporate suppliers Large companies in IT.g. and from a centralised ‘push’. Flickr or access an online help system. entrenched client relationships and the ability to offer the scale of operations that large clients need. give an inbuilt advantage over smaller. where the questions are not worded to restrict the sense of what e-learning means. Business Consulting and Managed Services (e. have seen opportunities in e-learning and fostered in-house operations. Training Outsourcing is now planning to release additional sector surveys including Learning Technologies. 7. ‘boutique’ outfits.Total training time …the wording of (the survey) questions invites the respondent to consider the narrow definition of e-learning. or email/IM colleagues for assistance?’. Unsurprisingly many of the same big names appear in both lists. ‘taken up’ and ‘total training time’ suggest online courses and the centralised world of the LMS. He pointed out that it would be inconceivable for a chief executive not to have an explicit strategy and suggested that it should be as inconceivable for a learning and development department not to have one either. Here. The UK e-learning Market 47 © Learning Light Limited 2009 . eclipsing their traditional stand-up training operations with those companies. IBM. If the survey had asked. the results would certainly have been different. The very phrases ‘offered to’.

As in previous years. the largest percentages of revenues came from training content development (33%) and delivery (27%) . They’ve not been ranked because of the widely differing ways they book and allocate revenues. Revenue Segmentation Breakdown The UK e-learning Market 48 © Learning Light Limited 2009 .The most recent Top 20 outsourcing companies list is as below. The Top 20 as at June 2008 (alphabetical order) Accenture ACS Adamant CGS DDI Delta College GenPhysics GeoLearning Global Knowledge Innovatia Intrepid KnowledgePool Logica NIIT Element K Raytheon Convergys Expertus IBM LionBridge RWD These ‘Top 20' companies indicated that their revenues were generated through multiple solution areas.see chart below for revenue breakdown of the 'Top 20”.

and we believe the market was enjoying growth of over 25%. Blogs and all the other informal collaboration and sharing tools.1 background to the forecast As noted above. in January 2007 when our first report e-learning market report was published. Does web-delivered Video Arts videos or DTV films equal e-learning? 8.1 A forecasting model 8. providing a risk of double counting). the author John Helmer used a calculation based on average revenues and number of identified companies in the UK to suggest a different “best guess” of the UK market for e-learning products and services as being between £500m and £700m. Interestingly within six months of producing the Report for Learning Light. but unlikely to exceed £250m all told.g. i. But you’d have to add in about £25m for UfI learndirect…. including our Market Intelligence and Tender Information Service.8. nearly 4% of private sector training spend. based on a series of variables. But again what are we measuring when we talk about e-learning. our estimate for the market varied between £160 million and £250 million. Also. Since the June 2008 update of the CPV (Common Procurement Vocabulary) codes. In the time between this report and now. since companies like Accenture and IBM do not break out e-learning revenues in their financial reporting (and in some cases outsource elements of their elearning to boutique providers. Learning Light has developed a sophisticated market forecasting model.e. Our other variables we have modeled include the growth (or decline) in GDP. The UK e-learning Market 49 © Learning Light Limited 2009 . e-learning has become a recognised code in the world of government procurement and OJEU we have been able to gain far greater incite into public sector procurement patterns. Plateau Systems) and revenues fall below the Companies House reporting threshold … And finally… how do we price WIKIs. particularly free open source products? One “best guess” stated in the last edition of this Report (2007) was that the total value of the UK e-learning market was greater than £160m.1. A third approach (not based on reported or “interpreted” revenues of suppliers) tackles this from a percentage of training budget for industry sectors against forecast GDP for the UK. a large number of UK players are either privately owned UK companies or UK registered companies privately owned overseas (e. The size of the UK market It has always been difficult to give an overall size to the UK e-learning market.

The Learning Light model adopts a greater degree of caution with uptake levels. and the proportions of training budgets being spent on e-learning and learning technologies. we believe some 45% of organisations are using e-learning in 2008 and we project growth to 47.the expenditure on training in the UK – which we believe is closely related to company turnover and hence GDP.3 Adoption levels We believe uptake of e-learning has grown amongst organisations steadily from the low usage levels (30% of companies) forecast in 2004 to over 57% of organisations using e-learning in 2008 (CIPD Annual Survey 2008). We do not however consider that the market grew as rapidly as we previously believed. 8.2 The Market in 2006 Accordingly on reflection (and with the benefit of our forecasting model and information service) we believe the market in 2006 to have been worth somewhere near to £229 million. 8.1. The Learning Light model uses a slightly more conservative forecast for 2006 and 2007.1.4 Percentage of training budgets It is more difficult to estimate the amount of overall training budgets that are now directed toward e-learning. but only 42% of private sector organisations using e-learning.5% in 2009. This reflects our view garnered from the industry that the UK e-learning The UK e-learning Market 50 © Learning Light Limited 2009 . It is in the later two categories that Learning Light in addition to its close monitoring of public sector procurement contract awards uses its unrivalled network of organisations and associates along with its research skills to synthesize these key trends. 8. CIPD research indicates 12% of training time is devoted to e-learning – a long way from the 30% in the USA! Indeed we have seen even higher adoption level numbers in the USA – up to 50% of training delivered in the non education sector uses e-learning! An analysis of a Toward Maturity survey indicates e-learning expenditure as a percentage of overall training to be 13%. And interestingly 82% of public sector organisations using e-learning. Indeed we believe the market grew in the order of 12% from our 2005 reverse forecast measure of £203 million. We have also modeled what we believe to be the level of interest and uptake of e-learning by companies and organisations. with 12% in 2008 and a forecast of 13% in 2009.1.

5 Continued growth Based upon our assumptions we believe the market continued to grow into 2007 and 2008. We do however see a continued adoption of e-learning by companies – as The UK e-learning Market 51 © Learning Light Limited 2009 .market is not mature.5 billion on FE (Further Education) and adult skills and £7.1. Our ability to track public sector contracts awarded was able to identify a number of significant contracts awarded to Sheffield based companies that account for 35% of the growth in the market from 2007 to 2008 alone! 8. Our £5 billion is principally the amount spent on training by companies and organisations – including government departments based on the assumptions that training represents a % of company turnover. and accordingly we would value the market in 2008 to have been worth £294 million. Our model sees the overall training expenditure decline by £200 million in line with GDP to just over £5 billion. Our forecast model and its assumptions are underpinned by a marked increase in employment in the industry in Sheffield – a city with arguably the UK’s largest eco-system of e-learning and learning technology companies.5% contraction of GDP. Indications from the USA. point to an 11% reduction in overall training expenditure from 2007 to 2008 (Training Industry report). Learning Light with its partner organisation Creativesheffield undertook a skills and employment survey in June 2008 which indicated a 20% growth in employment numbers in the e-learning companies surveyed in the previous 12 months. 8. Source: Leitch Report 2006. and this will without doubt be reflected in a reduction in training budgets as companies and organisations cut costs and reduce employee numbers. The UK Government spends £12 billion on adult skills (£4.1.4 billion on HE Higher Education.6 2009 doom or gloom How big will the slowdown be? Or will this be the defining moment for e-learning and learning technologies as companies turn to e-learning in increasing numbers as a way to reduce training costs and even improve their environmental credentials by traveling less for training! The Learning Light model forecasts a 3.5%. with growth rates of 13% to 13.

1.7%.5% and an increase in the percentage (of the reduced) training budget dedicated toward e-learning to 13%. and the industry breaks the £300 million barrier with revenues of £313 million in 2009. Learning Light and our research associate. We believe we can now offer a valuation tri-angle made up of the work of John Helmer.3% in 2008.noted above to 47.7 Higher and higher If we accepted the CIPD level of uptake to be that 57% of companies now use e-learning we could value the market at more than £370 million for the non education market! However. We accept that these forecasts are never likely to be completely accurate. from 12. and were fortunate to be able to share findings. and can offer what can only be described as trends. but stays in positive territory at a growth rate of 6. Our forecast shows the e-learning market place growth to slow by more than 50%. 8. 2006-7 £800 £600 £400 2009-10 projection 2 £200 £0 2007-8 Learning Light John Helmer Additional single forecast 2009-10 2008-9 The UK e-learning Market 52 © Learning Light Limited 2009 . In addition these researchers forecast growth for the UK market at over 8%. in 2009 we became aware of another research project undertaking a similar analysis such as ourselves. This research indicated that we were perhaps a little cautious in our figures for the UK and the market was closer to £450 million in the corporate and non education sector and an additional £150 million in the education sector.

and mitigate some undoubted decline that will take place and which will further underwrite the growth of the e-learning component of the training market . it will certainly underpin the e-learning market. We believe the UK e-learning market to be along with Scandinavia the most developed markets in Europe. and in the context of the training and education market.uk which is enjoying record numbers of site visitors. Learning Light operates the web site www. .e-learningcentre. The Scandinavian market is forecast to grow at over 8%. reflecting the degree of uncertainty in the market.co. However. The UK e-learning Market 53 © Learning Light Limited 2009 . and while this in itself is not yet a major demand driver. and we still see a significant growth of vacancies in companies in the Sheffield eco-system.which has probably declined in view of exchange rate changes. We believe the overall Scandinavian market to be worth €1 billion.9 How does the UK compare with Europe We have made some attempt to contextualize the UK market in the overall European market.1. a figure that could equally be applied to the UK market. Enquiries to ourselves regarding e-learning continue to grow. We do however believe that the future market for e-learning remains robust. This would compare to the UK’s market size of between €650 and €700 million. The series of interviews conducted indicate a strong belief in growth…. with interest levels in e-learning continuing to grow. We believe the government initiatives with Train2gain will bring stimulus to the training market.1. e-learning appears to be miniscule. given their comparative maturity. We note an increasing trend to promote the environmental benefits e-learning can bring. drawn from a number of sources.8 Can we be confident in this forecast of continued growth? e-learning is and continues to be a difficult market to put boundaries around. we do note that the vacancies have changed in recent months from full time positions to fixed contract posts.8. 8. These figures are estimates.

ASTD’s recent survey showed that over 50% of respondents are being challenged to do more for less with their budgets.1. Eastern Europe and Southern Europe is difficult to obtain.10 A US perspective The latest (February 2009) Bersin research in the US market revealed that training spend per learner fell between 2007 to2008 and is likely to fall further in 2009.The next largest market is anticipated to be the French market with growth projected at over 15%. which may or may not accurately inform market growth estimates.2 Sizing the market .summary Repeatedly during our three month research project we encountered genuine optimism for the industry. but off a lower base – we would estimate at between €300 – to €350 million. In the appendices to this report you’ll see expert predictions (from eLearn Magazine) on what to expect through 2009. Data for the rest of Europe – Germany. Mischievously you’ll also find in Appendix D Seb Schmoller’s review of expert predictions for 2008 and how they actually stacked up… 8. The UK e-learning Market 54 © Learning Light Limited 2009 . A number of MDs of Companies have come back to us during our research and said it seems like “business as usual” after a somewhat prolonged winter break. Scandinavia and France will represent over 80% of the European market at present. Although there’s a glut of industry leaders and pundits around the globe willing to offer their predictions. 8. you’ll find that these don’t necessarily become reality. We believe that an aggregation of the UK. Some respondents admitted they were surprised by not only the volume of business they were signing up but also where the work was coming from. In large organisations expenditure on online learning also fell for the first time ever and there will be continued pressure in 2009.

0. one word did raise considerable interest amongst our interviewees – and seems to define a new category in this market. or LMS = Learner Management System LCMS = Learning Content Management System CMS = Course Management System (classroom and e-Learning together) CMS = Competency Management System TMS = Training Management System (classroom only) VLE = Virtual Learning Environment MLE = Managed Learning Environments KMS = Knowledge Management System EPSS = Employee Performance Support System This area of the market is also one of the most contested. and we see an increasing number of content development providers incorporating The UK e-learning Market 55 © Learning Light Limited 2009 . Industry Trends In this section we present a synopsis that we believe from our research to be some of the key trends that will come to define the e-learning and learning technologies industry as it goes forward. However. with a wide range of vendors competing. Trends in learning platforms – more competition and more choice The Learning Management System “LMS” is the most common technology term in general use in the industry. Moodle will support tactical quick and practical launches of e-learning.1. but there’s a raft of Management Systems and platform acronyms in use : The letter game: o o o o o o o o o o LMS = Learning Management System. 9.1. based on our research is that Moodle and indeed other open source VLE platforms such as Sakai will come to play an increasing role in the marketplace. the open source VLE: Moodle.2 Moodle Our view.9. 9.

with price as only one metric of measurement in the true cost of ownership calculation. Two LMS vendors FISC and e2train both report that Moodle is having little impact upon their businesses.4 Software as a Service (SaaS) However.1. so as not to make their systems offerings increasingly complicated and cumbersome. Performance Management and Reports. CPD. we do not believe that it is outright doom and gloom for the LMS vendors. Both Kineo and Keighley based Webanywhere (one of only four UK Moodle partners) see strong and continuing growth for Moodle in both the education sector. Communications.Moodle into their offer as a way of expediting the delivery of an e-learning programme.0” and the growing interest in e-learning and learning technologies in mid size corporate organisations and the medium sized SME businesses will further drive adoption of both open source and proprietary applications. We believe this already crowded LMS/VLE market will benefit from what we refer to below as “Compliance 2. Events Management. 9. The value proposition between open source solutions and proprietary software will become clearer. LMS vendors will seek to adapt their business models by offering SaaS deployments and deeper integration to ERP and HR systems that exist in closed corporate worlds where open source solutions may not be viewed quite so favorably as in the academic marketplace. 9. The UK e-learning Market 56 © Learning Light Limited 2009 . Competency Management. Groups. It also offers a less clumsy interface. We are already seeing the emergence of a growing number of a Moodle “plug ins” applications for both the corporate and education market. (where Moodle is being effectively deployed and integrated with school management systems) and in the corporate market.g. JING and SnagIt for example and LMS vendors and Moodle plug in developers must take care. Indeed it is our view that this market. though crowded will continue to grow.3 Moodle Plug Ins A particularly interesting addition to the market is Moodle plug-ins and wraparounds such as MOOMIS : Moodle MIS. This can only drive further adoption of the Moodle platform.1. From our perspective it’s quite often the simplest tools that are of interest…NING. which seems to cover off all the known weaknesses of Moodle e.

and the emergence of new categories in the market: e-Reference systems and on-line academies. Despite taking what SkillSoft described as their only real competition out of the market. all using an array of competency assessment tools and federated search engine technologies. 9. 9. (be it generic or bespoke) will be the key differentiator. My Knowledge Map and Virtual College are examples of developers pursuing the Academy model.2 e-reference systems and Academies The net result has been the emergence of smaller libraries.2.2. Other examples include the Umbel system. Indeed we are seeing added value services increasingly being offered with greater and greater levels of integration of content in to these services. This task-based system can be customised to reflect clients’ own The UK e-learning Market 57 © Learning Light Limited 2009 . we continue to see a number of new and innovative competitors emerge. and we remain of the view that the creative use of content. There’s an opinion that there has been a gentle decline in the perceived value of all-you-can-eat catalogue libraries. Books 24 X 7 is undisputed leader in terms of volumes of digitised business books for on a knowledge engine. For IT technical content there are Safari Online’s e-Reference system and GetAbstract books digest system. size and value. Europe and the UK are particularly well-served in this new eReference and knowledgebase sector: The Working Manager. in duration.One privately commissioned survey in January 2008 identified hosted services (ASP and Software as a Service) as becoming an increasingly attractive alternative to capital investment in behind-the-firewall implementations. the fact that there are new entrants into the market indicates that the value of generic content overall remains strong.2.1 Generic content: SkillSoft absorption of the former Thomson NETg appears to have gone well and the new SkillSoft can demonstrate increased services and support services on a genuinely global basis. This is certainly the strategy being pursued by e2train. Content – How you use content is now King 9. a configurable and customisable supervisory and management knowledgebase.

increasing price pressure is beginning to be seen. The demand for ‘realer’ and ‘realer’ and more relevant content will continue. and marketing costs can be kept fairly minimal. Finally (though we know there are more. This is true of Belfast based Aurion Learning and Leeds based Mezzo films. This more than any other factor we believe will be both a barrier to entry to the market and a potential barrier to growth. and a questioning of the costs involved in continually reinventing the wheel this way. We have seen very strong growth from a number of companies in this field.competency models and competence frameworks. We have also detected a change in attitude emerging amongst developers who now seek to retain IPR to exploit products jointly developed with clients. particularly niche market players such as Intellego) we need to mention CrossKnowledge who seem to be bridging the e-learning/ILT/e-reference markets successfully. with elearning becoming more established within large organisations. We anticipate (and indeed are seeing) that new genres emerge using the values of TV and film production. with several Sheffield based companies including the Workshop. The key defining element will be the capability of the industry to deliver good learning design.3 Bespoke content – tougher price climate = more innovation Bespoke content development has in the past been the healthiest area of UK e-learning. However. perhaps due to the fact that a bespoke operation carries less upfront risk than a products business. This we believe will grow in significance in coming months and years. 9. Desq as well as London and Sheffield based LINE Communications and Brighton and Sheffield based Kineo all growing strongly. a 20% growth in employment numbers. Indeed our tracking of the Sheffield based companies saw 2008 as one of considerable expansion in job numbers. Not a mouse is moved in anger until a customer has already agreed to buy the end result. The willingness and ability and undoubted creativity of many bespoke content The UK e-learning Market 58 © Learning Light Limited 2009 . manifesting itself in scripted scenarios and more and more sophisticated immersive learning scenarios and simulations. The demand for bespoke content development we believe will continue and get stronger and stronger.

as yet we see the e-learning developers themselves utilising the The UK e-learning Market 59 © Learning Light Limited 2009 .5 Rapid Development – threat or opportunity Tools – rapid and self authoring will drive demand as well as drive down costs and seed both issues and opportunities for the e-learning industry. We. 9. however remain less clear as to how. Already we have seen companies such as REAL Projects adopt this “tools based development” model to some success.4 Gaming and learning We anticipate continued growth in the serious gaming or immersive learning genre. and the arrival of the Caspian rapid 3D authoring tool for Immersive learning all add to the market dynamic. We anticipate an emergence of new business models – the North American market has seen this. with a growing roster of blue chip clients. We. a company who built its business model around rapid e-learning development tools. In the full interviews synopsis we present the views of a leading exponent of the use of video games for learning – from the games developer’s perspective.0 and social networking applications gives continuing confidence in this segment of the industry. It is however the demand for this learning style that will in the end drive demand through to the industry.developers to adopt and adapt both rapid development tools and techniques. like many others in the industry have been impressed by the speed of growth and expansion of Kineo. 9. with companies such as Red Vector and Udutu developing and utilising rapid tools (and offshore rapid development). Coventry based Pixelearning are having increasing success in North America. The emergence of rapid tools that allow much greater self authoring potential to trainers or subject matter experts we believe will have considerable impact on the market place. Sheffield based Desq report continued interest in the use of games in e-learning. However. as well as the web2. or indeed if the video gaming industry and the e-learning industry will collaborate or converge. It would appear logical that more and more learning can be developed by inhouse teams and following that logic we would anticipate seeing the uptake of tools by in house learning development teams.

Until now M Learning has been one of great The UK e-learning Market 60 © Learning Light Limited 2009 . “The emergent way of learning is more likely to involve community. We are non the less greatly taken with the concept coined by Jay Cross (2007) in his work “Informal Learning” of “Learnscapes”. 9.0 and social networking.rapid tools with considerable effect to deliver against new and evolving demands for rapidly deployed e-learning.7 Mobile. expertise location. Handheld. help desks.. simulation. presence awareness. but which may involve a readjustment of expectations difficult for some to make. However. social network analysis.0 – Social networking and Informal learning There was undoubtedly great enthusiasm among some of the companies interviewed for the use of web2. storytelling.? Will it be mobile learning. . However. and co-creation”. handheld learning or will it become portable learning? Our research highlighted that mobile learning was finally becoming of age. Cross (2007) p41 9. coupled with a very clear health warning as to the appropriateness of its usage.the learning requirement must be paramount. after several false starts. its usage and its effective integration into the overall learning and development mix will be dependant upon the creativity.6 Web 2.0 – learning 2. dynamic learning portals. Some put their faith in rapid e-learning – which promises drastically to lower the cost and time it takes to produce bespoke e-learning. the pragmatic view this requires runs counter to the prevailing culture in training departments (especially within the public sector) with many organisations persisting in seeing their own skills issues as unique and unprecedented. or 80/20 rule – and to really make inroads into costs must require some degree of reliance on generic materials as a starting point. and will quite possibly go a considerable way in supporting and delivering the “informal learning” agenda. The key message from our interviewees was one of “appropriateness”. personnel knowledge management.0 and Social networking will without doubt find a role in the learning and development mix. workflow integration. Web 2. mobile learning. search technology. prior to the choice of technical solution. Rapid production methodology leans heavily on the Pareto Principle. Portable or…. spontaneity. innovation and learning design skills of the solution vendor.

8 e-assessment Despite the anticipated arrival of e-assessment for a number of years. we believe that e-assessment will grow strongly in importance. The netbook is another major factor that will support the growth of portable device learning opportunities.0 It became quickly apparent in our interviews that interest levels for e-learning remained strong in areas that conventionally given present economic circumstances we would have anticipated a marked fall in demand. The demand drivers we believe are firmly in place. and the applications being offered now deliver on the ROI model. However. the financial services industry in recognising a failure in regulation is The UK e-learning Market 61 © Learning Light Limited 2009 . and be seen as cool. The arrival of Adobe Flash Lite is having an impact for developers allowing richer content to be developed. via Nintendo DS are all now providing better and better portable learning devices. 9. Sheffield based FISC. Kineo and LINE Communications have all reported continuing high levels of interest from the financial services sector. but with few really good tangible examples for the corporate market. Our view is that higher education will prove receptive to the time savings and quality consistency e-assessment tools can now offer. By this we mean the banking and finance industry and the automotive sales industry. 3G mobile networks now allow improved levels of connectivity.0 Drivers of growth 10. We provide an insightful piece based round an interview with Assessment21’s Gerard Lennox who provides us with a clear understanding as to why this segment of the market is set for strong growth. The choice of platforms – from i-phones to netbooks. 10. and surprisingly little comment from the e-learning industry itself.1 Compliance 2. The Apple impact cannot be underestimated – both the devices and the arrival of i-tunes U will embed learning into portable devices. Epic have successfully used the Nintendo DS to deliver specific learning requirements.promise.

government directives such as the WEEE directive for example will drive the need for both interactive content and the auditable evidence of the training being delivered. While Compliance has often been seen as one of the early drivers for the adoption of e-learning. but not all used every opportunity to discredit e-learning. and suffering from the law of diminishing returns. The UK e-learning Market 62 © Learning Light Limited 2009 . given the speed of technical development.3 The training industry gets e-learning. We believe the training industry (in certain cases) has seen e-learning as a threat. This trend is difficult to predict and even harder to prevent. 10. associations. As we live in an ever increasing litigious world. User or learner generated content will become more and more important. Peer to Peer learning and sharing across all these varying modes of communications and collaboration will flourish. institutions.we believe embarking upon a range of new Compliance driven learning and training. health and safety.2 Lifestyle learning The evidence of our research and interviews strongly indicates a growing realisation and receptiveness toward e-learning across a widening swathe of organisations. Indeed it is our view that this market will be significantly stimulated by recent events. hobby groups and loose federations of common interest that may spring up rapidly and disappear equally rapidly. Learning will continue to grow and grow beyond the formal organisational and educational frameworks. Indeed we would argue that the relatively slow adoption of e-learning and learning technologies in the UK (in comparison to the USA) has been in part due to the reluctance of the training industry to adopt and endorse e-learning. 10. its importance is still too great to be written off as one of yesterday’s driver of demand. Many financial institutions are already LMS operators but others are not. compliance in health care. In addition we firmly believe that the UK training industry will embrace e-learning to a much greater extent. Secondly the content in use by many organisations is quite dated. and the transient and promiscuous user pattern. and some. We foresee a significant level of demand for new and more interactive content to deliver the softer end of compliance training as well as defining leadership and decision issues in a learning format.

leading to the disaggregation of many linear courses into small knowledge nuggets of learning. but now firmly believes that it has overcome the arguments first deployed against it by the more traditional training industry. The rise and rise of social networking – from Facebook to Linked-in or Naymz. as a way of measuring return on investment. However. 10. The UK e-learning Market 63 © Learning Light Limited 2009 .1 The e is for environmental The environmental agenda for e-learning is at present still latent. via Twitter will create the opportunity for learners to request solutions to problems from peer groups across the organisation (or indeed the world).The industry itself has been aware of this.4. given the challenges of the present economic climate.4 The ROI model can make sense and delivers much more learner impact Traditionally e-learning benefits have been promoted with ROI and the ability to scale consistently to support global delivery as key benefits. The rise of the Play Station generation has likewise put new demands upon both schools and employers as to the quality and means of delivery of learning and training. Training budgets will increasingly come under pressure and training organisations (in house or third party) will increasingly need to offer “more for less”. LMS vendors typically stress the ability to schedule and track learning and development. We have noticed a much greater level of interest from training organisations in how they can use e-learning. 10. The culture of learning will change in organisations and the need for ‘Just in Time’ learning will increase. Add to this Blogs and micro-blogs and Wikis and other open source environments such as Ning and the traditional training industry will be challenged. We are now seeing speed of development and deployment as a new and key differentiator coming to the fore. In addition. an increasing number of e-learning companies are adding environmental benefits to the marketing mix of their offer.

New pricing models – software as a service in particular will enable access to larger applications by medium sized companies.6 e–Learning 2. or Brandon Hall. and a handful of other quasi-equivalents to Jay Cross. the e-Learning Centre. most companies engaged exclusively in the field being microbusinesses. Marketing departments appear to be impressed by how e-learning companies have grasped the use of web 2. As industry watchers we have Learning Light. Seb Schmoller. content companies and training specialists is to offer consultancy in one form or another and some are quite sophisticated operations. This is a trend we expect to continue and grow in importance. Our slide presented on page 20 “from automation to innovation” illustrates what we believe to be this trend.7 Marketing moves into the e-learning market We noted several instances of e-learning commissions being led by marketing departments in organisations.8. This has proven to be more than a happy co-incidence but undoubtedly this has added to our confidence in the growth of the market.1 Consultancy: a cottage industry? e-Learning consultancy is something of a cottage industry in the UK. A standard growth strategy for most learning technology companies.0 technologies and social networking as means of engagement. 10. It is our view that the availability of rapid e-learning tools. It is also true to note that many of the leading e-learning players keep a foot in the marketing and communications camp as well. 10.0 will support the uptake of e-learning and learning technologies in medium sized organisations.8. Jane Hart.0 into the Small and Medium enterprise Interviews uncovered trends towards medium sized businesses expressing growing interest in e-learning and learning technologies. Services 10. as marketing departments seek to use e-learning to support products and services in the market. BUT many of the big The UK e-learning Market 64 © Learning Light Limited 2009 . the emergence of web 2.10. Bersin & Associates.

This is a trend we expect to continue. The UK e-learning Market 65 © Learning Light Limited 2009 .players. the Workshop and Epic in offering consultancy services. We have noted the growing success of LINE. Dunelm and e-loki. rely on the services of Associates from the micro-businesses. the up-side is that so many major players act as an employment agency for the SME and micro business sectors. and has been effective in using the consultancy eco-system made up of companies such as Psydev. and the Sheffield cluster of e-learning companies is particularly well served by a rich eco-system of specialist consultants such as Keith Shaw. The growth of Sero Consulting has been particularly impressive. including outsourcers. While there is real disappointment with the continued insistence by public sector procurement to play safe by engaging major players who can then carry all project risks. Phil Green and others.

This produced the answer 27%. Key findings included: o More than half of the respondents (57%) reported that they are using e-learning. Respondents to the survey were asked 'which of the following training and development practices do you believe are most effective?' and were invited to choose three practices from an extended list. it now accounts for about 12% of 'total training time'. Optimism for the future of e-learning is rife. The UK e-learning Market 66 © Learning Light Limited 2009 . As well as asking what percentage of training time is currently delivered through e-learning (12%) we asked what this figure would be in three years time. This recorded steady progress in the acceptance of e-learning. When asked 'How effective do you think e-learning is as a learning and development intervention?' only 8% stated 'very effective' with the majority (64%) saying that it was 'fairly effective'.Appendices Appendix A . This is the first time that the proportion has topped 50%. but that much remains to be done. it is likely to be offered to about 60% of the employees. E-learning came next to bottom with 7% of respondents including it as one of the three – in-house development programmes and coaching attracted 55% and 53% respectively. Two statements seem to command near universal support: o 'e-learning is effective when combined with other forms of learning' (95% support) o 'e-learning demands a new attitude on the part of the learner' (92% support). o In organisations using e-learning.summary Our 2008 Learning and Development Survey included a special section on e-learning.The 2008 CIPD review of e-Learning The CIPD report on e-Learning (2008) . The figure recorded for the United States in 2006 by the American Society of Training and Development (ASTD) was 30% . This phenomenon ‘we’ll all get it right over the next three years’ has been observed in previous CIPD surveys and earlier ASTD surveys. but taken up by only 30%. In those organisations that are using e-learning. o Of those who are not using e-learning more than one quarter (27%) plan to do so over the next year. a key part of training delivery.

The UK e-learning Market 67 © Learning Light Limited 2009 .

and asks whether shifts in the learning and development profession’s attitude to e-learning suggests that the profession itself is changing At first glance the CIPD 2008 Learning and Development survey is a mess of contradictions on e-learning. they reflect actual learning and development practice today. which might smack of woolly thinking. Just 7% of those polled regard it as among the most effective learning and development practices. For them. e-learning is now simply regarded as part of the learning mix. investigates these questions. yet 57% of organisations use it and 27% of the remainder plan to use it within 12 months. Taylor At the beginning of the decade.Appendix B – Donald H Taylor response to CIPD Report Extract from “Reflections on the CIPD Survey” by Donald H. because e-learning then implied something quite narrow. While only 8% of those who use e-learning as a learning and development intervention would rate it as ‘very effective’. The most important thing about these figures is that we can believe them. Any effectiveness depends not on the medium itself. the question could have made sense. E-learning is a medium of delivery. You might as well ask whether books are an effective learning practice. e-learning essentially meant the The UK e-learning Market 68 © Learning Light Limited 2009 . 64% believe it is ‘fairly effective’. this explains why only 7% considered it a ‘most effective’ practice. Yet these figures. and how far has e-learning lived up to expectations so far? Donald H. for example. If people know what they’re doing with e-learning. Those familiar with e-learning will almost certainly be using it as one part of a delivery strategy that also includes. They are not the frothy enthusiasms of vendors and early adopters. classroom delivery and book-based self-study. Does the interest continue. In 2002. They are also part of a fundamental change occurring within the learning and development function itself. Six years ago. this phrasing makes no sense. Taylor. with just 14% agreeing strongly. Chair of Learning Technologies. and practitioners are increasingly confident with it. The intelligent customer has arrived. In this survey in 2002. actually tell a clear story of changing attitudes to learning technologies. there was huge interest in e-learning. a figure that six years later has dropped to 38%. but how it is used. 54% agreed that ‘e-learning involves the possibility of wasting a lot of money’. And the message is simple: for those that use it.

‘taken up’ and ‘total training time’ suggest online courses and the centralised world of the LMS. e-learning for most people meant an electronic analogy of the classroom: courses that were centrally prepared or commissioned. where the questions are not worded to restrict the sense of what e-learning means. it was similar to its predecessor’s computer-based training (CBT) and computerassisted learning (CAL). E-learning added to these the concept of central planning and tracking via the learning management system (LMS). Again. this was the third greatest increase. In other words. this survey shows comprehensively that in practice it has gone through the five stages of the Gartner hype cycle and is now resolutely past the trough of disillusionment and up on the plateau of productivity. This broad understanding of the meaning of e-learning will explain why – in spite of the apparent contradiction of only 7% rating it among the most effective training practices – 47% of respondents said they used it more than they did two years ago. In providing materials and a structure for self-study. or access an online help system. though. The key statistic here: 65% of respondents strongly agree it is more effective when used with other forms of learning. or email/IM colleagues for assistance?’. In the absence of any agreed definition of e-learning. In 2002. 57% say that only 0–25% actually ‘take it up’. E-learning is now simply part of the mix. People don’t necessarily find e-learning easy (80% rightly say it requires new skills for learning and development practitioners). from LMSdelivered courses to electronic performance support systems (EPSS). If the survey had asked. with attendance and assessment data collected by the learning and development. Of a list of 13 practices. ‘What proportion of your employees use Google. But if it is being used widely. the wording of these questions invites the respondent to consider the narrow definition of e-learning.delivery of courses. the results would certainly have been different. the survey suggests that it is not being used very effectively. E-learning has come a long way since then. Although 52% of those using e-learning claim it is ‘offered to’ 75–100% of employees. This explains why 66% of respondents estimate that less than 10% of ‘total training time’ is delivered by e-learning. The very phrases ‘offered to’. to the use of social networks and Google to support informal learning. those polled for this CIPD survey will have taken e-learning to include the much wider range of electronically delivered learning materials available in 2008. but it is no longer regarded The UK e-learning Market 69 © Learning Light Limited 2009 .

It has taken e-learning about ten years to reach this state of maturity. as in every year. to individually driven ‘pull’. the CIPD did not even include e-learning among the options offered and nobody mentioned it under the catch-all answer of ‘other’. In his essay for last year’s Reflections report. The learning and development professional is just too savvy now. Implications for practitioners 1. significantly ahead of the others. When this year’s survey asked for ‘the major change affecting organisational learning and development over the next five years’. was: ‘closer integration of learning and development activity and business strategy’. It has already moved away from a centralised to a more diffuse idea of learning. but can do much more besides. and from centralised ‘push’. In 2008. Charles Jennings of Reuters bemoaned the fact that only 56% of organisations had a written learning and development strategy. we can expect other learning technologies to come to the fore. which could still be grouped under the widening banner of ‘elearning’. If you are one of the 57% of organisations with a 0–25% take-up of e-learning. ask yourself what you can do to improve this number. consider whether the money could be better spent elsewhere. 2. given the results of this survey in comparison with that of 2003. He pointed out that it would be inconceivable for a chief executive not to have an explicit strategy and suggested that it should be as inconceivable for a learning and development department not to have one either. And this acceptance of e-learning as one of many tools reflects an important change in the learning and development function’s priorities. The most popular answer. Don’t do e-learning to tick a box. It is difficult to imagine. and their extension into the learning field will be part of the natural extension of what e-learning means. respondents did not answer ‘elearning’. As noted above. Social networking and instant messaging will join tools such as email and ‘webinars’ among technologies that can be used to support learning.as revolutionary. They will be part of a trend taking technologysupported learning away from page-turning on the screen to being a social experience. Do employees poll peers in other organisations via social networking tools? How much do they use Google? Where can the learning and The UK e-learning Market 70 © Learning Light Limited 2009 . If you cannot. and these new technologies will continue that movement. Most of them will already be familiar. that any of these tools will have the dramatic impact on perception (if not on reality) that e-learning did in the early part of the decade. Investigate your organisation’s current informal use of e-learning. Six years ago it excited the profession: 34% agreed with the statement that ‘e-learning will significantly alter our training offerings’. when asked to identify ‘the major change affecting organisational learning and development over the next five years’.

Recommender systems will improve enough to become actually a little bit relevant. When the ideas. Countries will begin to see the value of subsidising this type of e-learning. visualisation. examples. USA Alternative interfaces … big this year: more Wii toys hooked up to computers. University of California. Mayer.development department help in providing swifter access to wellqualified experts. sure sources of information? 3. those educational applications linked most closely to local economic development will predominate… parents will have high interest in ways these devices can foster their children's literacy. and other Kantian (time and place based) applications. In the good old days. Richard E. keychains et al. PDAs. Researcher.eLearn Magazine Pressure to reduce costs. Technology … favoured over registrations in hotels & hours in classrooms away from customers and clients. an instructional designer would develop. data. write one. Canada Researchers will continue to make progress in discovering evidence-based principles for the design of e-learning. Thus the need for analysis (now) grows even greater. and online access to rich. and pedagogical agents. Harvard University. including new applications of the science of learning to educational games. cloud computing. what can be sought at the moment of need? How else to determine readiness & eagerness? Allison Rossett. How else to anticipate what is needed. Chris Dede. If you don’t have a strategy. and decision support) will be huge. even brain-wave and body feedback games… a lot of discussion of identity. and virtual machines…. Network with your peers in other organisations to share good practice in the implementation of learning technologies. belt buckles. conferences. concerts. USA …cell phone will emerge as the learning infrastructure for the developing world. orientation-sensitive interfaces. or exercises veered off mark. Establish how learning technologies can provide the data demanded by your organisational learning and development strategy. calendaring and event-related services will become widely popular:… increase in synchronous online classes. Kantian computing also embedded into devices as well: cameras. gesture-based presentation software. simulations. as opposed to more traditional schooling. San Diego State University. phones. Santa Barbara. appliances will be more connected and data intelligence (summarisation. the instructor fixed it. and computational portability. Initially. or were stale. USA Training professionals are accustomed to being at the leading edge of downturns in the economy but this downturn is a genuine game changer. laptops. cars. The UK e-learning Market 71 © Learning Light Limited 2009 . 4. what must be committed to memory. and an instructor would deliver all together. Stephen Downes. Appendix D – expert predictions for 2009 . You are not alone. National Research Council. same time and place.

so get used to all assignments being reactionary and due yesterday. Organisations in crisis don't plan. increase in budgets for creating e-learning at the expense of face-to-face learning and an increase in the use of social media in corporations. Real education. which I know of. Downsized training organisations & one-person consultant firms will find they need to do it all and rely on tools. technology. Processes like ADDIE & classic ID will be used selectively or fragmented due to time and cost pressures. Spain. and (3) extreme gigs for an army-of-one. Psychology. also be a growing trend toward adopting a top-down approach to using social media in organisations by building a social media/learning strategy and implementing a platform that integrates a number of social media tools for enterprise use. intelligence community (Intellipedia).0 approaches for informal.. The first two. to step up to the plate are ISIL in Lima. Margaret Driscoll.is about learning to live and learning to make a living" an idea that got lost between the late 1700s and today. and Education. Social Media & Learning Advisor. and abundant educational opportunities—especially the rise of e-learning in both the government and the private sector— eager to spend billions …in 2009 for the delivery and marketing of e-learning programs that have been recognised as essential alternative delivery methods for education & training around the world in this economic crisis.. one or two major 2-D virtual classroom vendors to release 3-D environments…. Consultant.S. Karl Kapp.. CEO Socratic Arts Organisations will no longer be able to afford the production of sophisticated courseware… more reliant on employee-generated content and increasingly appreciate the potential of Web 2. The increased adoption will be modeled after the Wikipedia-type applications of Pfizer (Pfizerpedia) & the U.. (2) fragmented application of ADDIE and ID. Bloomsburg University. in Barcelona. Jane Hart. Northwestern University. Roger Schank. … we find ourselves in a world … where virtual reality puts people inside a computer-generated world and ubiquitous The UK e-learning Market 72 © Learning Light Limited 2009 . and temporary alliances with other armies-ofone to survive. USA … the emergence of new corporate-focused Virtual Learning Worlds (VLWs) or Massively Multi-Learner Online Learning Environments (MMOLEs) (will) nudge out interest in consumer-oriented versions of 3-D worlds that haven't made the adaptation to corporate needs.. ". IBM. John Adams. Institute for Interactive Technologies Professor of Instructional Technology.Three trends are worth watching: (1) radical react mode. social. & collaborative learning & knowledge sharing. UK … growing population of the world with quality. Assistant Director. MMOLEs will contain elements that make them more corporate-friendly like SCORM compliance and avatar behavior tracking…. accessible. Centre for Learning & Performance Technologies. according to the second president of the United States. USA Schools will have to offer to train students to do actual jobs and they will do this online. Peru and La Salle. John Evans Professor Emeritus of Computer Science.

USA The risk (to suppliers) of relying on free tools and services in learning will become apparent as small start-ups offering such services fail and as big suppliers switch off loss-making services or start charging for them.extremely optimistic about the convergence of "traditional" instruction and support with technology-based instruction and support. but of entire courses. Social interaction and social presence tools such as discussion forums.computing forces the computer to live out here in the world with people. bounteous learning unprecedented… the journey to this promised land will be brutal and unforgiving for people and organisations who resist change and lobby for "back to the basics. The Open Educational Resources (OER) movement will strengthen. In its place will arise a more natural approach to learning through collaboration and sharing… great times ahead: fulfilling. Professor. Canada …. IM. trend toward teaching language online will continue to mushroom and lead to greater acceptance not just of teaching languages in free and collaborative ways. online content is becoming easier to maintain. opportunities for new technology-enabled educational innovations in which the repetitive routine lecturing. USA …. for example. Anadolu University. USA …. Chief Executive of the UK's Association for Learning Technology (ALT). programmes and degrees…. Turkish Online Journal of Distance EducationTOJDE. and philosophies related to teaching and learning. administrative and related repetitive tasks are The UK e-learning Market 73 © Learning Light Limited 2009 . will face up to the "cultural" challenges of winning learning providers and teachers to use OER." Jay Cross.. increased interest in open source software as well as tools and methods that enable online collaboration. Learning Peaks. & Twitter are increasingly being used to provide formal and informal support that has been missing too long from self-paced instruction…. Curt Bonk. procedures. Indiana University. Editor-In-Chief. which online resources they access. debated. how long they spend doing what. universities and corporate training centres will need to adjust their policies.. Large learning providers and companies that host VLEs will make increasing and better use of the data they have about learner behaviour. Harold Jarche. Ugur Demiray. social networking and resource sharing. Turkey Free online courses. and ultimately enrolled in…. UK … the global transition from the industrial age to the network economy will kill off much of the training and education programmes as we have known it. programmes and universities will increasingly be discussed. Seb Schmoller. high schools. which books they borrow. Everyone will be looking at lower cost options for their training and development. Internet Time Group LLC. Patti Shank. E-learning will finally break free of the courses-online model as more people realise the business benefits of networked informal learning.

Israel. Technion. shared) content.replaced with e-learning options.will increasingly use newer electronic communication tools such as wikis and social networks as well as older tools such as listservs. training. Jonathon Levy. combination of personal mentoring plus tailored e-learning environments for students could usher in an age of personalised learning analogous to the movement toward personalised health care. not as a major upheaval. Larson. Assistant Professor of Instructional Technology & Cocoordinator of Center for Interactive Learning Research (CILR). one small package at a time as needed. CEO. These tagged "coherent chunks" will be semantically integrated with an organisation's tacit knowledge to form a dynamic user-driven package combining both vetted and open source (contributed. USA I hope for greater government support for e-learning around the world with mentoring for the less privileged communities. USA The parallel requirements of thrift and quality—two values traditionally seen at opposite ends of the continuum—will combine to drive a more scalable model for online "eWorking. and the teachers—though fewer in number— will have more opportunities to serve as student mentors…. Founder & Director. It may mean focusing on delivering good product to the customer efficiently and trimming administrative salaries . and deploying innovative technology. Inc. "Learning" as a discrete activity will take a back seat to the contextual tagging & appearance of appropriate knowledge chunks in support of specific tasks in real time. the challenge is to create structures and activities that generate informal content—such as stories from the field—in support of learning. but quietly infiltrating our learning experiences … more use of games as a powerful learning opportunity and tools to make it easier to develop. Peter J. MIT LINC—Learning International Networks Consortium.hiring more faculty. and Visiting Professor. Social networking will become the 'go to' option to drive performance improvements. Yehudit Judy Dori. We'll start seeing cloud-hosting as a new vehicle for learning services. MentorNet. Clark Quinn. David Porush. USA E-learning could enable campuses to fulfill their obligation to serve the incoming tidal wave (of unemployed learners) by expanding the capacity of their pipelines. President & Cofounder. Fadde." Thrift and quality are both needed for online support to be a scalable and acceptable replacement for face-to-face training. Instructional designers …. Massachusetts Institute of Technology. Richard C. or performance goals. The extraordinary: we'll start realising the power of consistent tagging & being able to meta-process content to do smart things on our behalf. Southern Illinois University. Quinnovation. LeveragePoint Innovations. USA The ordinary: Mobile will emerge. as is now common in higher education. or as ongoing communities of practice. discussion forums and blogs to cultivate learning communities… Whether tethered to distinct courses. Israel Institute of Technology. USA The UK e-learning Market 74 © Learning Light Limited 2009 .

Chapman Alliance.0 only for "rogue. The public sector in mature economies will increase its share of e-learning technologies.Education and training via e-learning (increasingly enhanced by the availability of cloud computing) will grow. Inge de Waard. … new synergies shall emerge between the The UK e-learning Market 75 © Learning Light Limited 2009 . Mobile learning will grow. and user-generated technologies and content for e-learning. investing in learning will make or break companies and organisations…. 39 percent of learning professionals say they don't use Web 2. In a recent Chapman Alliance survey. ….0 tools at all. individuals with specific expertise will be able to offer their unique professional development services throughout the world at a much more affordable cost than traditional academic and training institutions. Social media use will increase because it saves money as it keeps knowledge in a central place (quick retrievability. only 20 percent indicate they have a plan for using them on a regular basis for learning. Chief Learning Strategist & Industry Analyst. efficient. IT has proven a prominent candidate for cost reductions in times of uncertainty. Khan. as it allows for cost-effective. Cloud computing will be the dominating factor for e-learning practices. New Media & Emerging Technologies Analyst. evolving from an industrial age into a knowledge age. international access. content and services in order to retain economic growth in the corresponding sector.…). as landlines are skipped in those regions. especially in developing countries. Founder & President.0 tools to the front-end of the learning path. Brent Schlenker. Organisations will give special attention to open source during this year. Educational policies will enable educational institutions to come to terms with new learning technologies and not banish them bluntly. Badrul H." Previous years spent getting our industry to see new Web technologies as having powerful learning applications. Belgium "The Year of Implementing 2. USA …. while still using structured learning (LMS and courseware) as critical components of their learning platforms. 41 percent say they use them for "rogue" projects (under the radar screen). eLearning advisor. USA Learning professionals start to move beyond using Web 2. ….com.0. USA …." informal learning projects and start making proactive plans for how to apply emerging technologies as part of organisation-wide learning strategy. Early adopters such as Sun Microsystems and the Peace Corp have made changes that move Web 2. Bryan Chapman. companies will intensify their competition over public sector e-learning projects. free. McWeadon. and an environmentally friendly form of educational and training opportunities. so content will become key in 2009. Ignoring the impact on culture will be the Achilles' heel of e-learning implementations. This creates business opportunities for the wider adoption of open source. Ignatia Webs. The eLearning Guild. My advice to the e-learning community: pay close attention to the culture in which you are implementing.

will use e-learning as part of their green initiatives. (2) As students attempt to make better use of their time and money. Employees. will "go rogue" using tools and creating content that best suit their needs—whether supported by the organisation or not. budgets are provided for the release packages and some of this is spent on training. Research & Development. Owner.a time when more money is spent on training. The full impact of this implementation can be realised when we consider how the array of cloud applications can be leveraged irrespective of time. Greece Learning professionals' fears of obsolescence. craving personalisation. Brandon Hall Research. expectations of connected employees and demands for quicker solutions will drive the rest of us to increasingly abandon traditional instructional design in favor of experimentation—creating messy. device. a capability that is quite frankly a little overwhelming when one thinks in terms of interoperability. as well as in cultural and scientific digital resources libraries. UK The UK e-learning Market 76 © Learning Light Limited 2009 . Athens University of Economics & Business. integrated. Phil Ice. Matt Bovell. Director of Course Design. (2) Individuals want to distinguish themselves from the market. Web 2.0 tools will continue to thrive and will be used to facilitate semantic tagging and annotation in already existing content. Janet Clarey. Spiros Borotis and Angeliki Poulymenakou. USA …. EPCoT Systems Ltd and Management Consulting Consultant. USA I have been exploring frameworks during 2008 that give designers and developers the ability to create applications that can reside both online and on desktops. This is the level of interconnectivity that will usher in a new paradigm in online learning. making it possible to incorporate such content in educational curricula. Vell Group. (3) companies trying to establish a reputation for being ecofriendly. … as people are released. Peter Parker. they will continue to avail themselves of e-learning opportunities. place. This means they have to spend money on training to provide that differentiation. they too will "go rogue" by putting on their invisibility cloaks and becoming a suite of widget-like. loosely structured courses supplemented with low-cost social software & old-school support tools like job aids. mashed-up applications existing inside and outside the firewall.traditional public sector IT providers and e-Learning related companies. American Public University System. but not a time to expect a large decrease in training revenue. connectivity. In order for corporate learning management systems and talent management systems to thrive. USA There are three reasons why e-learning will continue to grow in 2009: (1) The economy …more companies will be attempting to achieve cost savings using e-learning technologies. The reasons are: (1) Good companies (particularly in the financial sector) use training as part of an exit package. etc. Many training companies see this time as challenging.

e-learning needs to become more like movies or television shows. …. basic historic and heuristic abilities… to even reach them. transmission. …. Consumers will probably not get increasingly sophisticated in building their own training….if things are right. The primary reason is the availability of the infrastructure worldwide at reduced costs.Appendix E Readers’ responses to “Expert” predictions From a number of Universities and the following: Accenture Education VET EscP Consulting Servitium James Cook University International Computer Science Institute Internet Time Group International Islamic University Islamabad . and content management in one site… might even contain experimental media analytics approaches for automatic indexing. free. 5.some key assumptions that are probably wrong. will be the only ones to be efficacious. E-learning will have to be "sold" to people and will compete directly with the latest movies. Open source is simply transferring an up front and usually meagre licence fee for a long term highly specialised labour cost. someone has to maintain it. 3. we will see a shift towards web-based managed services provid(ing) recording. The use of the mobile as a learning platform shall see renewed interest . hit TV series. the courses that engage (shock etc) and entertain first.. media rich with high levels of online facilitator support. 4. Someone has to build it. Games and simulations will see an increased adoption. increased awareness of potential for incorporating new technologies in enhancing educational content. etc. If… the online learning is authentic. 1.0 approaches will start in earnest in the second half of the year. people are losing essential creative skills. then educate later. the future of e-learning is. and the swarm of competing social networks.. and networking advances already available. storage. both general and highly specific (a la ning. 2..Adoption of Learning 2. or for that matter facebook apps… pop culture is the actual language people are increasingly speaking. …. LPO or Learning Process Outsourcing will gain momentum in 2009. Open source is not. it should mark the beginning of the end for traditional virtual classrooms. actually.com) So. E-learning is poised to grow because of lowered costs. which in many cases ends up creating situations where organisations are completely hamstrung by their IT department/gurus. the learning experiences can easily eclipse that of The UK e-learning Market 77 © Learning Light Limited 2009 ..… The use of virtual worlds for learning will acquire more importance . 2. engaging.

2009 won’t see the reality of this. …as much a hope as a prediction: the increasing use of social media may create the perfect storm for learners to start taking charge of training offerings and let-me-get-it-myself content. and much more personal. While I welcome the move to increased use of e-learning (as I never did understand how the classroom got to be held in such exalted esteem).. Ubiquitous and lessexpensive technology. the requirement to show business value for training spend (Return on Learning). Following this approach makes online learning just as expensive as face-to-face although the scalability is better than the traditional approach. Add …. Organisations (will) take a hard look at travel and other costs associated with traditional classroom training.0 and virtual environments will bring outstanding opportunities for formal and informal learning experiences. and based on cost (rather than quality) will increasingly shift old business to new delivery methods. we will see increasing understanding of evidence-based practice but worry that it will be ignored in favour of easier. continuous pressures on budgets... …. 6. a year where learning is moved more directly into the workflow and out of the classroom…. …. but will move us to this type of ideal. It breeds the “convert” (rather than transform)-aclassroom-course-to-online-mentality. but will not save organisations substantially with costs. much more customisable. crank ‘em out approaches. ….. we are nearing the do-or-die point for those classroom trainers who have been resisting e-learning. I see this as going beyond traditional performance support and into something much richer. and away from thoughtful instructional design. The UK e-learning Market 78 © Learning Light Limited 2009 .. peer-to-peer collaboration and user generated content are among the contributors to the increasing reality of workflow learning. the predicted frequent job changing of the new generation of employees . social networking. Providing immediate assistance to enable individuals to accurately perform a task utilising a combination of resources from a single point of initiation. … year for companies to reuse content that they have previously created by starting to utilise EPSS solutions that can provide this information to users at the moment of need.. … a shift toward buying or building whatever is the cheapest instruction. Web 2.you have a training business that will push more learning to the actual workplace and strive to embed learning into tasks.the classroom. this isn’t necessarily good. learning at “the moment of need”. We face a credit crunch and a knowledge crunch but if we utilise tools effectively we can ensure that the knowledge captured by SME's is shared at the time it is needed 7. 8.

the growth of Citizendium and. and Second Life. Predicted: When considering innovations in e-learning for 2008. to popularise 'less democratic' processes in the writings of Andrew Keen. and this just did not happen in 2008. at least. Predicted: The "middle path"—proprietary lock-in services. including which instructional features promote which kinds of learning for which learners. But none of these made it easier to discern information quality. as it does every year. and Blog on education.D. raising millions of dollars for social and political causes. making it easier to discern information quality. "Personal networks" will be created by individuals to manage and share their contacts and information sources. Mayer. National Research Council Canada. it is tempting to focus on advances in technology—such as the use of games. of course. . However. such as social networking to make meaningful connections as opposed to demonstrating popularity. University of California. and a 2005 paper on ISD. Richard E. Less-democratic processes will lead to a clearer distinction between expert-generated knowledge and the overwhelming quantity of information available everyplace. Researcher.. Grade: D Basic research did occur in 2008. Gagne's nine steps. Ultimately. iTunes. and online agents that promote appropriate cognitive processing during learning. will be abandoned for more open commercial alternatives rather than free and open source software and content. but it is far less clear that we saw any particular advance in our understanding of how to design e-learning environments (unless you consider practical work such as CCK08 or Jokadia or Wikiducator). Santa Barbara. And we saw attempts. VR environments.Appendix F How did they do last year? Seb Schmoller reviews 2008’ expert predictions Lisa Neal Gualtieri. Looking up "Basic research on learning and instruction will provide new guidance for instructional design" on Google tells us the current state of affairs: an old ITForum paper on information age learning. the Britannica Blog. time is one of our most valuable resources. Facebook. eLearn Magazine. as well as to create and locate high-quality learning content. and pedagogical agents. Basic research on learning and instruction will provide new guidance for instructional design. Ph. Predicted: Better prioritisation will lead to more purposeful activities. the most important innovations in e-learning will involve advances in our understanding of how to design e-learning environments that help people learn—such as how to design serious games. like Vista. US. virtual reality. people will "peer" into each others' networks or The UK e-learning Market 79 © Learning Light Limited 2009 . So generally a prediction demands specific results. and it didn't become appreciably easier to learn or locate high quality content. Editor-in-Chief. Grade: B Social networking came into its own in 2008. and I am hopeful that in 2008 it will be easier to learn. Stephen Downes.

Yes. E-learning. Associate Professor.0. (2) increasing interest in informal learning (and. Yes. Saul Carliner.) Finally. But be careful when you get to Web 3. and talent management will continue to converge.in. Personal networks were created but. USA Predicted: The suffix "2.0. and (3) a somewhat increased interest in digital video for learning as a side benefit of both the early 2009 transition from analog TV to HDTV in the U.0" will be appended to almost everything. Graduate Program in Educational Technology. Many government agencies will require that funded materials be made openly accessible. we saw a convergence of e-learning. . listen to music and download apps from an app store. Grade: D Yes. pushing commercial providers to offer some free content just to stay in the game. corporate communications.0. for example.S. The number of Open Access mandates increased. knowledge management. we saw the Chief The UK e-learning Market 80 © Learning Light Limited 2009 . corporate communications.o and Search 2. CEO. Some companies will mash them together and put it all under a CPO (Chief People Officer. the criticisms did begin to mount). knowledge management. Grade: C+ This prediction is essentially a projection of three existing trends. Performance 2. released December 20. Predicted: I see these trends emerging: (1) continued integration of e-learning into the broader. Useful libraries and indices of open academic content will appear.0s. and the hi-def DVD format-war seemingly being won by Sony's Blu-Ray technology. were not used to create filtered feeds. but useful indices did not emerge (though ticTOCs. but mostly were used to make phone calls. and even Google Search 2.0 . for the most part. and talent management . none of which demonstrated any particular strength. Get ready for LMS 2.0. coupled with a known future event (the conversion to HD) and the projection of a very likely one (the win by Blu-Ray). we got LMS 2. open academic publishing will have its strongest year. competences and skills databases. Third Life. and the other 3. The best part of the prediction is the observation that the increased interest in performance support and workflow learning would result in only limited practical developments.subscribe to filtered versions of each others' network feeds. is a start). Facebook or Second Life (though. Grade: C While people avoided Vista like the plague. commercial publishers leaned toward free. Concordia University. No credit for predicting past events." Finally. Devices were synched. Digital devices will be synched using online services that will offer a publishing option for "live updating. hierarchies will crumble as executives see the speed at which Web-savvy new hires penetrate silos. Performance 2. in fairness. Jay Cross. as seen through ebbs of interest in performance support and workflow training. everyday context of learning.0. Internet Time Group.all in 2007 or earlier. nobody was abandoning iTunes. only limited incremental practical developments). talk directly with customers. Canada. and get things done.

With so many students learning online. All LMS vendors adapted web 2. not as replacements for the LMS but as adjuncts to them. Now it comes up. Southern Polytechnic State University. for example. was one of many institutions to develop a Facebook application. USA Predicted: 2008 will be a banner year for distance learning enrolments. thanks in part to the use of Web 2. all of which came true. Young people were a dominant influence on the U. A recent two-part story on NPR reported that one in five students is now taking courses via distance learning. more attention needs to be paid to the question of usability. particularly to understanding the user's experience. Michael Feldstein. The distance learning build-out of the past several years will The UK e-learning Market 81 © Learning Light Limited 2009 . All LMS vendors will benefit.S. with Moodle benefiting. Grade: A Detailed and specific predictions. Indiana University. Sakai.0 tools. maintains only a sliver of the market. meanwhile. Very There Consulting. Mark Notess. USA Predicted: The WOW factor is upon us. Economic and geo-political instabilities will lead more people to seek new employment credentials. In 2004. With the growing interest in e-learning and the growing prospects for usability specialists. A fad that didn't become a trend. USA Predicted: This year we will see universities begin to provide institutional support for Facebook and other Web 2. Grade: D We saw a video on YouTube and a paper at E-Learn but no significant up tick in the importance of usability in online learning and certainly no sign of the two spheres merging. sweeping established candidates and pitting a choice between 'change' and 'maverick'. but Moodle and Sakai will benefit disproportionately.0 tools. e-Literate weblog. But most of all. author. which could signal convergence: U. The Open University. but with only a 'B' for job prospects and on the bubble. News and World Report 2008 Best Careers issue puts "usability/user experience specialist" on its list of top careers with bright futures. The steep growth of baby boomer "first retirements" will also fuel the trend. election. there is indeed optimism that the two spheres will not only overlap but merge. Also.People Officer. Director of the Usability Center and Professor of Information Design. A few years ago. and member of eLearn Magazine's Editorial Advisory Board. At Wal-Mart. even if the meaning is in the eye of the beholder. 2008 will be a blockbuster year for the participation of young people in the United States elections. hierarchies didn't crumble in 2008 . Blackboard did lose market share. Blackboard will show measureable market-share loss for the first time. But. there was little mention of usability in the same conversation as e-learning.0 sites to educate them on the issues and to mobilise them.S.S. as people in their 60s look for second careers or life enrichment.though just about everything else did. here's an interesting point. news and World Report Chart? Usability specialist is still on it. And the U. Carol Barnum.

These issues will generate new research and experimentation." in that what is traditionally thought of as a course will really be the efforts of an instructional designer to assemble disaggregated pieces of related content into a coherent flow for novice learners or learners who are not comfortable with assembling the content themselves for whatever reason. Researcher. Truly valuable content will be found as short videos on YouTube. Assistant Professor in Information Systems. maybe in a few years. 'Instructional assembly' did not emerge as a wide practice. everything I could find (such as this article and reports such as this and this) showed that while enrolments were up. e. emerging online social communities. What does it mean to say that a build-out ' will come into its own"? And while there may have been "persistent learner-experience issues" but we don't know what they were. i. As for distance enrollments. Grade: BContent did become more disaggregated and learner created. Formalised "instructional design" will begin to look more like "instructional assembly. none will be housed in a Learning Management System. Institute for Interactive Technologies and Professor of Instructional Technology. but some of the persistent learner-experience issues will contribute to continuing high attrition. Grade: BBonus marks for predicting economic instabilities (geo-political instabilities are a given). and there was no indication that attrition was more or less an issue this year over previous years. entries on blogs. both at Athens University of Economics and Business.0 will create new challenges for the quality of e-learning content. and Spiros Borotis. I predict a corporate version of YouTube will emerge just as the academic version. Karl Kapp. an emerging field concerns the support for contemporary employment arrangements like flexicurity.e. this would not be evident to the wider internet. continuing a trend that has been evident for several years. but The UK e-learning Market 82 © Learning Light Limited 2009 . will provide new and alternative ways of rapid e-learning through various applications and groups.g. Regarding the use of e-learning in Europe.come into its own. The rest of the prediction was too vague to evaluate. Penalty for non-falsifiability: if valuable content were housed on a learning management system. No corporate version of YouTube emerged. USA Predicted: Content within corporations and universities is going to become more and more disaggregated and learner created. or a favourite page on a wiki. resulting (eventually) in major improvements to both program management and technology platforms. Moreover. Assistant Director. Grade: C Quality continued to be a challenge for e-learning content in new media. TeacherTube previously emerged. In fact. they were not dramatically up. Facebook and MySpace. as well as for ensuring the provision of equal opportunities. the need to create meaningful support structures to assist learners navigating through and evaluating the plethora of new user-created forms of learning resources. Greece Predicted: The proliferation of e-learning 2. Angeliki Poulymenakou. Bloomsburg University.

not while content creation tools like Camtasia and conferencing tools like Elluminate still dominate their sectors. the need for them did not grow appreciably in 2008. and no new systems were created (it's interesting that in 2008 user-created resources were largely ignored by most commentators). Professor. VoiceThread failed. USA Predicted: There is a distinct shift recently from the clamour over a particular technology or Web 2. TeacherTube. but these will be used to create simple informational types of e-learning rather than complex instructional solutions. While support systems for learners would be useful. Gcast and Gabcast/ Nowhere to be found. or even better. YouTube and other video sites. Within a couple of years. but not at any increased pace from preceding years. as noted. Tools like Gcast and Gabcast will make podcasting even easier. Grade: BWhile open source and free tools were important. Prof. Slideshare (with narrated presentations) will go from strength to strength. including those that specialise in instructional videos like TeacherTube. My prediction for the coming year is that users will start noticing more Web sites that seem to offer more views of more data and that they will be able to make more of their preferences known to applications. in 2008: Google Docs (now that it has embeddable presentation functionality). but predictions that the semantic web will spread have been around for years. Same in 2008. especially library systems. but otherwise discussion of the concept seems to have slowed in 2008. Computer Science Dept. and not the year of the Semantic Web at all. Jane Hart. Curt Bonk.. SuTree. though it remained popular. Rensselaer Polytechnic Institute. It's already being used underneath a few popular Web sites. And for years. Here are some tools which I think will do well. has been dropping. Following from a 2006 report.not while commercial systems such as Blackboard and Desire2Learn are still viable.0 tool to how they can be combined for multiThe UK e-learning Market 83 © Learning Light Limited 2009 . and educational Web site providers will need to start learning more about this technology. that spread simply hasn't been happening. it is hard to say that they "dominated" the e-learning market . languishing at 23 on Hart's list. Tetherless World Constellation Chair. will dominate.no new challenges emerged. Europe did establish a commission on Flexicurity. as will VoiceThread. USA Predicted: The Semantic Web is beginning to spread. Grade: D Not to put too fine a point on it. James Hendler. this will become expected of educational systems. Head. which was the year of Ajax and the mashup. Google Docs didn't enjoy a good year. New facebook applications and groups supporting learning were created. but has slipped a bit. as well as aggregators like SuTree. Centre for Learning & Performance Technologies. Indiana University. and there are a large number of startups springing up in the area. Slideshare remained strong. UK Predicted: Open source and other free tools will continue to dominate the e-learning market.

A new term for these "mash-ups" will emerge in 2008 in various training and education sectors to help focus on the wealth of learning-related aspects or possibilities that can now be realised. classes creating wikibooks with students from around the world. England Predicted: My predictions for 2008: Effective use of RSS by learners. Chief Executive of the UK's Association for Learning Technology (ALT). which have these learners blog on their progress and create pod casts of their final products. and begin to rely instead on cheaper. The same with workplace learning and EPS systems. And 'smart systems'. The UK e-learning Market 84 © Learning Light Limited 2009 . No new developments over and above the general background noise that has existed for years.com after 2006. Certainly. Grade: D If there was a new market in performance-based learning. people blogging on their Second Life adventures and putting up related pictures in Flicker. But beyond the usual level of hype for things like Second Life (which even dropped off a bit in 2008) there was no particular emphasis on simulation or immersion in learning.pedagogical and multi-technological experiences. disk-free devices. and learning providers will become more normal. descriptions of the state of affairs (at the end of 2007). making a big difference for users with only intermittent Internet access. And nothing new on jonathonlevy. it had been talked about for some time. And many more people will break free from Windows or OSXbased systems. Facebook groups established to generate research on YouTube. No new term for 'mash-up' came into being in 2008. and integration of resident expertise that people carry in their heads into a semantic knowledge ecosystem. Much of our work in 2008 will address RFPs for new models of performance-based learning both from companies and universities! We are responding to requests for capture of tacit knowledge. Yet another multi-pedagogical/multitechnological example is when college students collect sounds from different cities or locations and index them using Google maps. with their "stuff" stored somewhere on the Internet rather than locally. Senior Learning Strategist. Jonathon Levy. Monitor Group. Meanwhile the offline capabilities of browser-based applications like Google Reader will grow. teachers. it wasn't really evident." We see a growing market for innovative "smart tools" that transcend "e-learning" and imbed new knowledge acquisition into the context of doing actual work. with a greater understanding developing about when social networking supports learning and when it is a distraction. The hype surrounding social networking will abate. The long second and third sentences are not predictions. Grade: C Some marks for predicting the clamour over combining things (no points for the undefined 'multi-pedagogical and multi-technological experiences'). lighter. There also seems to be recognition that there is no longer time for learning activities to be separate from the "doing. There are Facebook groups for Second Life educators. and companies like Accenture had launched human performance groups. Seb Schmoller. but rather. USA It appears the moment we've been anticipating may be arriving.

"The companies that rushed to set up bases within the cult virtual world of Second Life appear to have wasted their time as many have shut down and others are "ghost towns". Each educational entry can be small (an educational "snippet"). The content can be incorporated into class-based or distancebased courses. distributed. either). Managing Consultant. actually gaining ground by occupying the OLPC platform.all that was tried with MERLOT years ago. but it leveled off. virtual. Quality control can be maintained either by official moderators. This stuff is so cool that mainstream TV shows like "CSI: NY" have an option called "Second Live Virtual Experience. MIT Learning Interactive Networks Consortium (LINC) and Mitsui Professor.nothing new there (and not any easier. The concept of 'snippets' was "invented" long before 2008 . USA Predicted: The e-learning buzz for 2008 is virtual reality (VR) for training (the 3-D variety). Look for a rush to create a VR training program. or— preferably—by market forces guided by user comments prominently displayed. lighter. and collaborative attributes. a lack of adequate funding and time to execute. Margaret Driscoll. Engineering Systems. and MTV is already in season three of "Virtual Laguna Beach. the popularity of the term 'creepy treehouse'). Grade: F The YouTube of open leaning materials? Didn't happen? Quality control mechanisms? Nope . but the impact was limited. or large (one week's worth of work). The hype around social networking didn't abate appreciably. an The UK e-learning Market 85 © Learning Light Limited 2009 . and the numbers were not staggering. But cheaper.they were called learning objects or information objects. Google pulled the plug on Lively. and the whole quality-review thing just isn't catching on." Recall the e-learning tsunami of hype and you will quickly see the parallels. wasn't spot on. Incorporating open learning content into courses? Sure . Director. For a prediction. with criticisms about the appropriateness of using Facebook in learning becoming more common (also. By the end of it. VR is Valhalla for die-hard constructivists. Industry pundits are selling decision makers on VR's immersive.Grade: B+ Pretty good predictions. though narrow. this really is a surprising submission. medium (30 minutes of a class)." Sears has a prototype store. it was clear Second Life had peaked in 2007. IBM. the jury is out on whether it was used more effectively. More learners. and no grounding in educational practice or theory. teachers and providers used RSS. organisations like Reuters had bailed and Second Life was fading from the mainstream. diskfree devices were huge in 2008. Windows and OSX proved more resilient than predicted. Off-line browsing capacities did improve. Richard Larson. Grade: AHard to say that this prediction. USA Predicted: The year 2008 will be the year in which open source educational materials will be co-invented by educators from around the world and will be as easily uploaded onto a searchable website as are the videos on YouTube. As 2008 progressed. MIT.

Clark Quinn. in the hands of capable instructional designers." Mark Oehlert. Quinnovation. (3) continue to watch as gaming design and instructional design talk past each other and fail to find a satisfactory hybrid solution. Patti Shank. President. web 2. where quality of instruction and assurance of skills is needed. Learning Peaks LLC. and SOAP seem to address the same issues in a more complete way (and if I am wrong here. Saying that the tools will improve is kind of like throwing rocks at trees in a forest.0 technologies were integrated into e-learning platforms. And designers have been helping others author content for many years now (these days you find mostly instructional design tools intended to assist authors). Lectora. It helps when somebody explicitly identifies cases where your prediction is being realised. Innovation Investigator and Gaming Specialist. Savvy instructional designers are starting to realise that they cannot be involved in the development of all instructional content in their organisations. Also. Defense Acquisition University. REST. (4) continue to argue that mobile learning (as opposed to "immobile learning?") will not cross into the mainstream as long as we continue to fail to adapt our design to the fact that most mobile devices are first audio devices and.Australian researcher has found. visual devices. USA Predicted: Learning content. It's not all a wash though. Grade: D Telling us what you are going to talk about for the next year is a bit of a cheap dodge. USA Predicted: The UK e-learning Market 86 © Learning Light Limited 2009 . There are great tools with a short learning curve (for example. (2) ask why/how standards like SCORM stay important/relevant as de facto Web standards like AJAX. and Flashform). predicting that things will not happen is also a bit of a dodge. Adobe Captivate and Articulate Presenter) and tools with a longer learning curve that are really excellent (for example. activity. Why this critical skill isn't considered a must-have has me scratching my head. please someone tell me). Designers are beginning to help others author content and that should leave the more complex projects. Continuing to define "mobile learning" mainly by it association with one class of technology (cell phones) will have a similar effect. USA Predicted: I predict that I will: (1) continue to look for social networking functionality to become integrated into e-learning platforms. distantly second. but this was announced prior to 2008. and assessment authoring tools continue to improve. A prediction that is a question is definitely a dodge. Grade: BThere's no real indication that instructional design programmes began teaching instructional designers to write. Yes. One oh-so-hopeful prediction: Instructional design programmes will begin teaching instructional designers to write.

MySpace. and YouTube roared to life and gained prominence while search engines continued to grow their dominance by becoming the learning tool of choice for individuals. a total LMS/CMS/Portal/eCommunity all-singing. Grade: B+ The learning industry struggled to stay relevant.0 applications kept appearing. but arguably the economic crash has made us a lot better at avoiding hype . USA New gadgets and communications tech tease us with visions that "it's all gonna change. David Porush. Director. and others. television. The optimistic: mLearning will cross the chasm this year.0 applications will keep appearing. It was certainly more popular. learning was first on the chopping block and schools.The cynical: There will continue to be "eLearning Solutions Providers" with no one on the executive/management team who really understands learning. Co-founder and Chairman. expect the learning industry to continue to struggle to remain relevant as these technologies. all-dancing solution will be announced. The simple fact is that most people still learn formally in classrooms very similar to the Sumerians' of 3200 B. But this year social networks for sharing what you know informally and personally will be the big news.C. Grade: C The key aspect of Sumerian classrooms. Many training departments failed their organisations. continue to bypass corporate-structured learning while individuals continue to vote with their virtual feet while creating relevant content on their own.at least for the next few weeks. Ironically. competing demands for attention will drive people to single-source as much of their learning as possible. and more organisations will take a wise perspective toward using technology to populate the "performance ecosystem. What has changed most stunningly is the breadth and instantaneity of our informal learning. though iTunes is definitely offering itself as a candidate. the first PCs"—all inspired millennial prophecies of revolutions in learning. colleges and universities faced funding cuts. And with the crash in the fall. Microsoft Learning. but not arguably mainstream. Exciting web 2. My prediction? Formal learning will still take place in classrooms or virtual simulacra of classrooms." Both: Exciting new Web 2. Grade: BI searched high and low for a 2008 announcement of "a total LMS/CMS/Portal/eCommunity all-singing. We haven't seen the move toward singlesource learning. Canada Predicted: Somehow in 2007 the power of the human touch passed the learning industry by when FaceBook. Did mLearning cross the chasm? That's a bit of a judgment call. And we began to see a shift in emphasis from institutions creating learning to students creating their own learning. SpongeFish." Radio. with most activity in the form of pilot projects and test runs. In 2008. but it still won't be the answer. but we won't be better at avoiding hype and looking for real learning affordances. at least according to Porush (who The UK e-learning Market 87 © Learning Light Limited 2009 . Ben Watson. all-dancing solution" but didn't find one (I even left out the singing and the dancing).

though. it will be apparent that. the validity of using games to teach. once again.appears to be the primary source for such references) is that "The discipline of the schoolchildren being tutored in script 'canalises' their thought processes. and those who simply predicted 'more of the same' (more social networks. and are not used. This will lead some to question. but identifying the specific impact will be more difficult. The UK e-learning Market 88 © Learning Light Limited 2009 . a concept that gained ground steadily in 2008. studies showed the positive effects of learning from games. Overall. do not engage learners. It's likely that in 2009 the people who based their predictions around the current economic crisis will meet a similar fate. What's missing thus far to any great degree is the questioning. Predictions of an impact amount to predicting past events. Were social networks for learning big news in 2008? Not particularly more than most anything else." Formal learning can still be contrasted with informal learning. Grade: A Games received a lot of attention in 2008 and. you probably missed that. as practitioners quote positive ROI from serious games that far exceed the ROI provided by other forms of e-learning. with lack of specificity. and. predictions of past events. A more concrete prediction would have been helpful here. More studies will show the positive learning effects of games. Proving ROI was more of a challenge. Red Hot Learning. and obviousness being the main culprits. more virtual reality. Just a matter of time. other people built ineffective games. Canada Predicted: 2008 will be the year that serious games get serious attention from corporate training departments. in particular. more YouTube. Philip Lambert. In addition. And what will technology do in the mean time? If you focused on the economic downturn. the predictions were a pretty mixed bag. Vice-President. reinforcing certain pathways. By the end of the year. generating some debate. 2008 was an especially difficult year to predict. people who do not know what they are doing will create games that do not teach effectively. as predicted. just as in the early days of e-learning. more mobile learning) tended to fare poorly. but specific claims were made. many corporations will jump on this exciting new bandwagon.

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