Professional Documents
Culture Documents
On-Demand LMS
How to evaluate and select a SaaS
(Software as a Service) LMS provider
Josh Bersin
September, 2007
Research Areas
• Planning & Strategy
• Content Development
• Enterprise Learning
• Learning Technology
• Performance Management
• Talent Management
• HR and Talent Systems
Offerings
• In-Depth Studies and Reports
• Research Memberships
• Workshops
• Benchmarking
• Advisory Consulting
Application Simulation
Tools 39%
LCMS 25%
Talent
TalentManagement
Management
Performance
PerformanceManagement
Management
Skills and Competencies
Skills and Competencies
Where
Whereare
areyou?
you? Enterprise
EnterpriseLearning
LearningApplication
Application
Consolidated Data and Analytics
Consolidated Data and Analytics
Integrated
Integratedwith
withOther
OtherLearning
LearningComponents
Components
ERP, HR, and application integration
ERP, HR, and application integration
EE-Learning
-Learning Platform
Platform
Make
MakeEE-Learning
-Learning Possible
Possible
Make
Make E-LearningEasy
E- Learning Easy
Training
TrainingManagement
ManagementSystems:
Systems:
Automate
Automatethe
theProcess
Processof
ofInstructor-Led Training
Instructor-Led Training
47% Strategic
Strategic
41% Efficiency
37% Efficiency
35% 34%
26%
Biggest
BiggestDrivers:
Drivers:
Administration
Administration 20%
E-Learning
E-Learning
Manage Manage and Consolidate Align Training Support Talent Reduce Meet
Training Deploy E- Training Processes Managem ent Training Costs Regulatory
Adm inistration Learning Inform ation Com pliance
46%
Strategic
Strategic
38% Efficiency
Efficiency
25% 23%
Biggest
BiggestBenefits:
Benefits:
Information
Informationand
and
Content Distribution
Content Distribution
11%
6%
Tracking and Facilitate E- Manage Improve Training Meet Regulatory Reduce Training
Reporting Learning Enterprise-wide Efficiency Compliance Costs
strategy Programs
31%
24%
21%
19%
Biggest
BiggestChallenge:
Challenge:
14%
Customization
Customization
10%
Scalability, 7.10
Testing/Assessment, 6.10
Ease of Customization,
5.70
Out of Box Functionality,
5.50
Reporting, 5.10
© Bersin & Associates: LMS Customer Satisfaction 2007, available at www.bersin.com/lmssat n=500+
Copyright © 2007 Bersin & Associates. All rights reserved. Page 9
LMS’s ability to give you the
information you need
Good, 36%
Excellent, 3%
Poor, 22%
Fair, 39%
Standards
documented
and somewhat
enforced
31%
No real
standards Some standards
9% but not
documented
11%
61%
61%of
ofLMS
LMSUsers
UsersCite
Cite
Content
ContentIntegration
Integrationas
asaa Some
Problem
Problem Problems,
42%
Many
Problems,
29%
No Problems,
18%
NA, 8%
Study conducted in May 2004, 10,000+ Surveys
Call Call
Center Center
Course Course
LMS Internally
“Learning Integration Platform” Developed Content
Skillsoft, Others
Stage
Stage 3:
3: Integrate
Integrate && Align
Align
LMS, governance, competency-based, performance management
LMS,
LMS,governance,
governance,competency-based, performance
competency-based, performancemanagement
management
Stage
Stage 2:
2: Expand
Expand
Blended
Blendedprograms,
programs,rapid
rapidee-learning,
-learning, outsource
outsourcesophistocated
sophistocatedcontent
content
Stage
Stage 1:
1: Get
Get Started
Started
Get content online: Buy off the shelf – one size fits all
Get
Getcontent
contentonline:
online: Buy
Buyoff
offthe
theshelf
shelf––one
onesize
sizefits
fitsall
all
Blended
Learning Online
Video
Webcasting
LMS Application
Simulations
LCMS
On Demand
Rapid Assessment RSS
E-learning
Podcast
Courseware
Text, Images, and Audio
Re
EPSS te
nt
Tools Training io
n
is
Event L os
Job t
Aids
Online Help
Courses
Enterprise Portal
Documents Goals
Job Aids Perf Plans
Courses Price Lists Organization
Webcasts Videos Assessments
Assessments Audios Benefits
Events Powerpoint Compensation
Podcasts PDFs HRMS
Presentations Word
Excel
Enterprise Portal
Documents Goals
Job Aids Perf Plans
Courses Price Lists Organization
Webcasts Videos Assessments
Assessments Audios Benefits
Events Powerpoint Compensation
Podcasts PDFs HRMS
Presentations Word
Excel
Tools
Collaboration (Webcast, Discussion, Blog, Wiki) Career Development
Learning Talent
Learning Content
Learning Content
Management Management
Application
Performance
Content Interfaces
LMS
Reporting
Management
Programs, Courses, Objects, Assessments Goals, Objectives, Performance Plans,
Prices, Fees, Student Hours, Credits, Resources, Development Plans, Assessments
Certifications, Scores, Completions, Ratings Reviews, Ratings, Rankings
Data
Job and Role Descriptions, Open Requisitions
Data
Organizational Data (Relationships, Hierarchy, Geography)
Management - ERP
Compensation Data (Current, planned, short/long term)
Employee Profile Data (Demographics, History)
Tools
Collaboration (Webcast, Discussion, Blog, Wiki) Career Development
Application
Performance
Content Interfaces
LMS
Reporting
Management
Programs, Courses, Objects, Assessments Goals, Objectives, Performance Plans,
Prices, Fees, Student Hours, Credits, Resources, Development Plans, Assessments
Certifications, Scores, Completions, Ratings Reviews, Ratings, Rankings
Data
Organizational Data (Relationships, Hierarchy, Geography)
Compensation Data (Current, planned, short/long term)
Employee Profile Data (Demographics, History)
Tools
Collaboration (Webcast, Discussion, Blog, Wiki) Career Development
Application
Performance
Content Interfaces
LMS
Reporting
Management
Programs, Courses, Objects, Assessments Goals, Objectives, Performance Plans,
Prices, Fees, Student Hours, Credits, Resources, Development Plans, Assessments
Certifications, Scores, Completions, Ratings Reviews, Ratings, Rankings
Data
Organizational Data (Relationships, Hierarchy, Geography)
Compensation Data (Current, planned, short/long term)
Employee Profile Data (Demographics, History)
Tools
Collaboration (Webcast, Discussion, Blog, Wiki) Career Development
Application
Performance
Content Interfaces
LMS
Reporting
Management
Programs, Courses, Objects, Assessments Goals, Objectives, Performance Plans,
Prices, Fees, Student Hours, Credits, Resources, Development Plans, Assessments
Certifications, Scores, Completions, Ratings Reviews, Ratings, Rankings
Data
Job and Role Descriptions, Open Requisitions
Data
Organizational Data (Relationships, Hierarchy, Geography)
Management - ERP
Compensation Data (Current, planned, short/long term)
Employee Profile Data (Demographics, History)
Provide appropriate 8% 9% 8% 6%
training for managers and
executives
At-Risk Industries
Government
Energy
Oil & Gas
Telecommunications
Manufacturing
© Bersin & Associates: Performance Management 2006: Market Analysis, Trends, Best Practices
and Case studies, available at www.bersin.com/perfmgt
Performance Management
Compensation - Benefits
Succession Planning
• Data and processes not integrated
Workforce Planning
Administratively intensive
• Data entry is repetitive
• High volume of manual work to complete HR review
processes
• Difficult to obtain executive-level talent information
HR Systems
1 & Metrics 4
Talent Strategy Learning &
& Planning Development
Competency
Management
7 5
Compensation Succession
planning
6
Leadership
Development
Copyright © 2007 Bersin & Associates. All rights reserved. Page 33
High Impact Talent Management Framework
Planning
Talent Strategy & Planning
Plans
Sourcing & Performance Succession Leadership
HR Systems & Metrics
Compensation
Sourcing Formal Programs
Goal Setting Calibration Meetings
Candidate Pools Stretch Assignments
Cascading Goals Talent Reviews
Assessment Executive Education
Self-Assessment HIPO Identification
Employer Brand Coaching
Manager Assessment Career Planning
Recruiting Mentoring
360 Assessment Talent Migration Plan
Selection Job Rotation
Development Planning
Assessment
Competency Assessment
Evaluation
Performance
Job Corporate Leadership Functional
Pay for
Competency Management Profiles Values Competencies Competencies
Long Term
Short and
Incentive
Curricula Training Strategy Assignments
Integrated
Learning LCMS Talent Management??
Management
Performance
Recruiting Management
Sourcing
Succession
Benefits Planning
Applicant
Administration Competency
Tracking
Mgt
HRMS Compensation
LMS
Performance
Management
Recruiting Talent
Management
HRMS Suite
Compensation
On-Demand
Tools Content Skills
Performance
LCMS Support Collaboration Succession
Competencies
Planning
Learning Performance
Management Management
Learning Systems
Systems Paths Development Comp
Plans
Fewer than 20% of ITM suite vendor customers have more than one
application in production
Oracle and SAP, who have 10X the resources of the suite vendors, have yet
to deliver a total suite solution
Annual
Costs Initial
Initial
Implementation
Implementation
System purchase
System purchase
Implementation
Implementation
Integration System
System
Integration
Systems Integration Upgrade
Systems Integration
Content integration
Upgrade
Content integration
Training
Training
Change Management
Change Management
Custom Report Generation
Custom Report Generation
Customizations
Customizations
Enterprise LMS
Licensed
Time
Copyright © 2007 Bersin & Associates. All rights reserved. Page 47
Cost of Ownership - Hosted
Cost follows model of capital acquisition by a leasing agent (lease)
Annual
Costs Initial
Initial
Implementation
Implementation
System purchase
System purchase
Implementation
Implementation
Integration System
System
Integration
Systems Integration Upgrade
Systems Integration
Content integration
Upgrade
Content integration
Training
Training
Change Management
Change Management
Custom Report Generation
Custom Report Generation
Customizations
Customizations
Enterprise LMS
Licensed
Hosted
Time
Annual
Costs Initial
Initial
Implementation
Implementation
System purchase
System purchase
Implementation
Implementation
Integration System
System
Integration
Systems Integration Upgrade
Systems Integration
Content integration
Upgrade
Content integration
Training
Training
Change Management
Change Management
Custom Report Generation
Custom Report Generation
Customizations
Customizations
Enterprise LMS
Licensed
SaaS
Time
Copyright © 2007 Bersin & Associates. All rights reserved. Page 49
Cost of Ownership - Licensed
Initial Deployment Ongoing Ongoing
Infrastructure Personnel Infrastructure Personnel
5-20% 5-15% 5-15% 50-85%
Hardware Needs analysis Hardware Scheduled
Software Configuration upgrades maintenance
Security Tuning and Testing Network Unscheduled
Networking Launch Security maintenance
Monitoring tools IT Staff training Bandwidth Outage response
Reporting tools End-user training Redundant End-user support
Facilities systems IT staff training
Backup and support
Helpdesk Upgrades and add-
ons
Security monitoring
Total
Costs Theoretical SaaS
Incurred
Theoretical Licensed
Time
Licensed software
vendors sell products
www.bersin.com/lms
Q2 Learning GeoEngage
collaboration system used for
continuing education
3. All LMS implementations are complex and 24% of LMS buyers want to
switch vendors, so expect implementation to be 3-5X purchase cost.
4. The LMS is “the core system” for your learning programs, and it must
flexibly support every talent management program you implement.