Looking to Update Your LMS/TMS Solution?

Looking to Update Your LMS/TMS Solution?

Despite Sluggish Economy, ‘It’s Time,’ Say Respondents to Our Annual Survey Forty-one percent say they plan to add, change or replace their  Learning Management (LMS) and/or Talent Management System (TMS) according to the’ “Learning and Talent Management Buyer Survey,” conducted by Elearning! Media Group. (Learning & Talent Management Systems Buyer Survey June 2010) The survey also indicates that executives expect to invest more than $780,000 on learning and training systems in the coming months. The 41 percent is a full 10 points higher than last year, a whopping 32 percent increase. http://www.2elearning.com/www/resources/research-white-papers/single-news-item/article/the-2009-hr-executive-agenda.html Key Factoids: >> Organizations surveyed plan to invest $4.679 million this year on enterprise learning initiatives company wide. >> 58% of respondents have an LMS or TMS in the organization, down from 62% in 2009. Forty-five percent use an enterprise LMS, 41% SaaS-based LMS, and 12% open-source LMS. Thirteen percent use an enterprise LCMS, 9% SaaS, and 5% open source. >> Talent suites are implemented by 17% of respondents, up from 2% in 2009. SaaS-based TMSs account for 11% of respondents, and enterprise TMSs account for 6% of responses. >> Course tracking, testing and authoring are mainstays of LMSs. However, future buyers seek more capabilities—including rapid development and collaboration—as well as talent features like performance management (46%, up from 29% in 2009), skills-gap analysis (46%, up from 22%) and integrated enterprise features (40%). >> Software-as-a-service (SaaS) products have improved in brand awareness rankings at the expense of some enterprise brands. >> No brand achieved more than 33% awareness (unprompted) across this audience, despite active purchase plans—an indication that buyers still see the LMS/TMS market as highly fragmented. GRADE CARDS All LMS and TMS owners graded their current systems from 2.6 to 3.0, up from 2009’s average of 2.3 to 2.6. Improvements in scores are reported for all categories, with an overall grade of 2.9. “Reliability” rates the highest in satisfaction at 3.0. Lowest rating of 2.6 was reported for “new features and capabilities,” a key driver for future purchasing. FUTURE USERS/BUYERS Forty-two percent of respondents do not own a current LMS or TMS. Of those, 22%
do not track learning or talent assets, 30% use an in-house custom tracking solution (up from 17% in 2009); 12% use a database application, and 26% use a spreadsheet. Of the 40% of all respondents who plan to add, change or replace a LMS or TMS, 78% plan to purchase a learning or talent system within the next 24 months; 57% will buy within next 12 months and 16% after 24 months. Important factors in specifying an LMS/TMS vendor remain the same as 2009, except “SCORM compliance” moves up one spot. “Quality” leads as the top buying factor in a purchase — and has consistently since 2002. “Price” remains second, and “customer service” ranks fourth. Course tracking, testing and authoring are the mainstay features of current LMSs. However, future buyers are seeking more capabilities, including rapid development (44%), collaborative authoring (36%), on demand access (43%), social tools (31%), surveys (54%), and virtual classrooms (49%). Talent system buyers are also demanding more features in their future systems. Performance management (46%), skill-gap analysis (46%), and an integrated enterprise solution (40%) are highly sought. BRAND AWARENESS Top LMS brands currently used are: (1) GeoLearning 21%; (2) SumTotal Systems 11%; (3) Plateau 7%; (3) Learn.com 5%; (4) Meridian KSI, Cornerstone OD & Saba 4%; (7) in-house solution, Blackboard, Moodle and Oracle 3%. A total of 91% of respondents could name at least one brand of LMS without prompting. And 64% could name at least one brand of TMS. Plateau (up 15 points) and GeoLearning (up 13 points) reported highest increases in LMS brand awareness. GeoLearning unseated Saba (now third) as the brand with most awareness. When participants were furnished with a list of LMS brands (prompted), GeoLearning still led with 63% recognition, followed by perennial favorites Blackboard at 57% and Moodle at 53%. Top TMS brands currently owned are: (1) SuccessFactors 27%; (2) GeoLearning (SuccessFactors) 19%; (3) Taleo 13%; (4) Oracle 10%; (5) Learn.com 7%; (6) SumTotal Systems 6%; (7) SAP 5%; (8) Cornerstone OD and Plateau 4%; (10) Kenexa and Authoria 2%. RESPONDENT PROFILE Management titles accounted for 63% of responses versus 53% in 2009. Chief executives accounted for 9% of responses, and HR/training/OD/elearning
VP, director or manager accounted for 34% of respondents. Other business unit managers represented 20% of the respondents versus 5% in 2009, an indication that technology investments are influenced by sales, IT and operations more than in 2009. —We would like to hear from you. Post your comments to this article at www.2elearning.com, LinkedIn at Elearning! Magazine Network, Facebook Elearning! Magazine, or Tweet to 2elearning. To view and download complete study, visit http://www.2elearning.com/www/resources/research-white-papers.html for “Learning & Talent Systems Buyer Study.”

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