BOOM TIME: Learning & Talent Systems Buying on the Rise

BOOM TIME: Learning & Talent Systems Buying on the Rise

But This Year Buyers Seem More Discriminating More Particular and More Critical of the Products They’ve Purchased In Elearning! and Government Elearning! magazines’ Learning Management System (LMS) and Talent Management System (TMS) Buyer Survey, 41 percent of executives reportedly plan to add, change or replace their current LMS, and 50 percent plan to acquire a TMS. Executives expect to invest more than $590,400 on their systems. On average, respondents manage an enterprise learning budget exceeding $7.75 million annually — almost twice that of 2010’s survey. Overall, reliance on LMS’s and TMS’s is booming. Eighty-two percent of respondents
have one or the other in their company or agency, which is 24 percentage points higher than the number reported last year. Sixty-nine percent are using their systems across multiple locations, and 37 percent support multi-national sites. While 91 percent use an LMS or TMS to support employees, fully 46 percent report supporting external constituents as well. The survey also indicated that future buyers of LMS’s are seeking more capabilities, including virtual learning environments (57%), on-demand access (51%), social tools (41%) and surveys (80%). New to the top “must have” features are mobile (68%) and rapid development (52%). Meanwhile, talent system buyers are seeking skills gap tools (59%), mentoring/ coaching (50%) and an integrated enterprise solution (46%). New to the top features list is career development (50%). TOP BRANDS With continuing consolidation, acquisitions and mergers in the learning and talent systems marketplace, brand awareness rankings have shifted. GeoLearning and Learn.com brands have disappeared boosting Saba, SumTotal Systems and Blackboard to the top brands (no prompting).  While acquirers Taleo and SumTotal Systems did not see significant boosts in their LMS unprompted rankings, they did see more recognition when prompted. For talent systems, Saba, Oracle and SumTotal Systems lead in prompted awareness, where as Taleo led in unprompted brand awareness. This is where Taleo benefited most from their acquisition of Learn.com. CURRENT SYSTEM UTILIZATION >>26% use an enterprise LMS (versus 45% in 2010). 44% use SaaS-based LMS (versus 41% in 2010), and 8% use an open-source LMS (down from 12%). 12% use an enterprise LCMS, 12% SaaS and 6% open source. >>Talent suites are implemented by 16% of respondents. SaaS-based TMS’s account for 10% of respondents, and enterprise TMS’s account for 6% of responses. All are at the same levels as 2010 data. >>Only 29% of owners responding say they are expert at learning and/or talent
systems. 64% of current LMS owners consider themselves expert or very familiar, down from 71% in 2010. This decline poses risk to enterprises faced with key investment decisions (a major indicator of system satisfaction). >>89% of owner respondents named their LMS brand, up 20 points from 2010. 12% of owners have multiple LMS brands, with 11% having content/ tool supplier LMS’s. >>44% of respondents TMS owners named their brand, up 42% over last year’s 31%. 11% have multiple TMS’s deployed in the organization, down from 13% in 2010. >>18% of respondents do not own a current LMS or TMS. >>Of non-owners, 37% do not track learning or talent assets, up from 22% in 2010. 17% use an in-house custom tracking solution (down from 30% in 2010), and 4% use a database application (down from 12%), while 42% use a spreadsheet to track learning assets (up from 26%). >>41% of LMS owners and 46% of nonowners plan to add, change or replace a LMS or TMS. Of these, 78% plan to purchase a learning or talent system within the next 24 months; 43% will buy within next 12 months; and 14% after 24 months. >>94% of future buyers indicated a platform preference for their next LMS or
TMS. SaaS LMS’s accounted for 44% of future purchases, while undecided lagged at 6%. >>New deployments are occurring more in single and global sites. 31% of LMS’s/TMS’s are deployed in one location (up from 26%), 32% are across multiple U.S. locations (versus 42% in 2010), and 37% are global deployments (versus 32% in 2010). These systems are being deployed in global organizations and SME’s. >>Important factors to consider when buying a new system remained the same as 2010, except SCORM compliance dropped behind service and interoperability. Quality leads as the top buying factor in a purchase, and has consistently since 2002. Price remains at No. 2 and SCORM compatibility follows at No. 5. >>Course tracking (82%), assessment (71%) and Web conferencing (63%) are the top features of current learning system users. However, future buyers are seeking
more capabilities including virtual learning environments (57%), ondemand access (51%), social tools (41%) and surveys (80%). New to the top features list are mobile (68%) and rapid development (52%). >>Talent system buyers are also demanding more features in their future systems.
Skills gap (59%) and mentoring/ coaching (50%) and an integrated enterprise solution (46%) are highly sought. New to the top features list is career development (50%.) >>In 2011, 16% of respondents said they owned a TMS, level with 2010. Yet, 20% of respondents are planning to purchase a system. >>“Talent” functions sought in future TMS’s are a mixed bag of features, with development the focus of the investments versus tracking. …SATISFACTION DOWN >>All LMS and TMS grades declined from 2010, indicating increased dissatisfaction
with their current systems. On a scale where 4.0 is excellent and 0.0 very poor, scores ranged from 2.22 (interoperability) to 2.8 (reliability) versus 2.6 to 3.0, respectively, in 2010. >>The steepest declines were reported flexibility, timely updates, support and scalability (all down 0.4). This is a surprising result, as updates and support are controllable elements. (With new mergers, support of platforms may see additional issues with satisfaction.) >>Reliability (highest ranking), interoperability (lowest ranking) and new features
(also low) are key driver for future purchases. Download the “2011 Learning & Talent Systems Buyer Study” at www.2elearning.com under “Resource Center/Research.”

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