The Learning Management Systems (LMS) industry has an estimated worth between $1.9 - $2.55 billion annually (according to the Market Wired) and is growing by about 14 per cent every year. However, it only represents less than two per cent of the annual corporate training budget - estimated to be somewhere in the vicinity of $130 billion - suggesting the LMS sector has yet to really prove itself as a solution to the upskilling challenge.
Investments into LMS risk being squandered because they are all too often a "cul-de-sac" in most organisations. This is because, more often than not, they exist in silos within an organisation, failing to compel trainees or remain relevant to their day-to-day working lives. Low user participation is often evident as seemingly peripheral training chores fall from employees’ to-do lists. Indeed this can even be the case when it is related to matters of regulatory compliance such as sexual harassment or occupational health and safety - representing a dangerous risk for the organisation in the event of an incident.
Failing to gain a sufficient return on investment poses the danger that companies may re-evaluate their learning and development budgets which could result in reductions in talent development and staff retention.
In fact, according to research conducted by Expertus, 45 per cent of Learning Professionals graded their LMS with a C or below. Furthermore, in a report called “The Race to Replace: Results From the 2012 LMS Trends Survey” by the Brandon Hall Group, 47 per cent of LMS customers planned to replace their systems in 2012.
At Mumba Cloud, our Business Collaboration Toolbox is fast becoming popular in delivering both learning programs and leadership training. The inherent collaboration and social interaction is perfectly suited to engaging employees and extending the capabilities of all types of learning programs.
More recently, Mumba has been configured to deliver a Collaboration Portal with a focus on the following benefits to our clients:
- enabling continuous learning across the entire organisation (through sharing thought leadership and knowledge) so training is not limited to formal training “windows”
- building new proprietary learning on top of the base line course materials, thereby creating genuinely unique, relevant and evolving training IP that the organisation owns
- facilitating collaboration across business function and department - not to mention geographical - boundaries. Additional efficiencies are gained as learning materials and ideas are shared so there is no need to reinvent the wheel
- continuous improvement with ongoing feedback on the course materials through discussions and forums that will incrementally improve the overall course experience, which in turn leverages much more value from the original investment
- engaging employees in a more holistic 365 degree learning experience that derives lessons from the course materials, from the wider company, from managers and peers
According to the Brandon Hall research, some 58 percent of companies that implemented their LMS five or more years ago are back in the market to replace it now. Those organisations should consider a strategy that embeds the LMS in an Enterprise Social Network to extract maximum return on their investment. Indeed, the eLearning Industry Network cites “Social Learning” as a key trend in 2014 for the LMS industry.
As companies look to improve their return on investment in learning and leadership, collaboration portals that enhance and extend the traditional capabilities of LMS should be considered as a cornerstone for delivering meaningful programs.
Please contact us for further information about how Mumba can be configured to deliver your learning or leadership portal.