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How to Buy Enterprise LMS and LCMS Solutions  Bryan Chapman Chief Learning Strategist Chapman Alliance [email_address]
Learning Technology Infrastructure Virtual  Classroom In-house  authoring Outsource, Custom Content LCMS Simulation- Based...
$2 Million Solution <ul><li>Large Finance Company </li></ul><ul><li>25,000 Learners </li></ul><ul><li>Scope Creep </li></u...
Who you should consider for your committee: <ul><li>Yourself   (who are you? – champion!) </li></ul><ul><li>Training Repre...
20 Questions  – to isolate learning infrastructure needs <ul><li>Hosted vs. Locally Installed? </li></ul><ul><li>80+ of e-...
How to Create the Ideal RFP Have a clear vision of your overall learning strategy   1 Create proper scope for the project ...
How to Create the Ideal RFP “ Many people view an RFP as simply a legal document that describes the desired contractual an...
How to Create the Ideal RFP “ An RFP represents a critical point in the process that literally requires you to document yo...
Vendor pre-qualification checklist The Solution must…   1.      …be a fully hosted solution including off site hosting for...
Use Cases <ul><li>Learner Perspective </li></ul><ul><li>Training Administrator/Registrar Perspective </li></ul><ul><li>Cou...
Use Case for Evaluation Purposes Sample
RFP - trends <ul><li>More requests for internal development of e-learning content  </li></ul><ul><li>Desire to include Nov...
LMS – Top RFP requests <ul><li>Standards-based, e-learning launching and tracking capability </li></ul><ul><li>Open model ...
LCMS – Top RFP requests <ul><li>Novice Friendly, Rapid Development content authoring and/or content assembly tools </li></...
Definition <ul><li>LCMS  (èl-see-em-ess):   </li></ul><ul><li>A multi-user environment where learning developers can creat...
Anatomy of an LCMS Learning Object Repository Microsoft Word M I D D L E W A R E D E L I V E R Y E N G I N E PowerPoint Bu...
Cisco  (20,000+ field sales)   Content Collection occurs before  ADDIE (Knowledge Repository) Learning Content E-learning ...
When you  should  consider an LCMS <ul><li>80+ hours of “seat time” per year </li></ul><ul><li>10 or more “content contrib...
Scope – Understanding Costs LMS Average Licensing Costs –  Locally Installed N=52 Source:  LMS KnowlegeBase: In Depth Prof...
Scope – Understanding Costs LMS Average Licensing Costs –  Hosted N=52 Source:  LMS KnowlegeBase: In Depth Profiles of 52 ...
Questions???   Bryan Chapman Chief Learning Strategist Chapman Alliance [email_address]
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How to Buy Enterprise LMS and LCMS Solutions

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How to Buy Enterprise LMS and LCMS Solutions

  1. 1. How to Buy Enterprise LMS and LCMS Solutions Bryan Chapman Chief Learning Strategist Chapman Alliance [email_address]
  2. 2. Learning Technology Infrastructure Virtual Classroom In-house authoring Outsource, Custom Content LCMS Simulation- Based Content Off-the-Shelf Courses
  3. 3. $2 Million Solution <ul><li>Large Finance Company </li></ul><ul><li>25,000 Learners </li></ul><ul><li>Scope Creep </li></ul><ul><li>Should have paid about $500,000 </li></ul>
  4. 4. Who you should consider for your committee: <ul><li>Yourself (who are you? – champion!) </li></ul><ul><li>Training Representative(s) </li></ul><ul><ul><li>Global </li></ul></ul><ul><ul><li>Line of Business </li></ul></ul><ul><li>Human Resources </li></ul><ul><li>IT </li></ul><ul><li>Other Champions </li></ul><ul><li>Consultants </li></ul><ul><li>Others? </li></ul>What about the size of the group?
  5. 5. 20 Questions – to isolate learning infrastructure needs <ul><li>Hosted vs. Locally Installed? </li></ul><ul><li>80+ of e-learning content? </li></ul><ul><li>Off-the-Shelf content? </li></ul><ul><li>Multiple-Languages? </li></ul><ul><li>Basic vs. Advanced Classroom Management? </li></ul><ul><li>Skill-Gap Analysis/ Competency Management? </li></ul><ul><li>Regulatory and Compliance Tracking? </li></ul><ul><li>Knowledge Management? </li></ul><ul><li>Performance/HCM? </li></ul><ul><li>Level of Reporting? </li></ul><ul><li>Collaboration? </li></ul><ul><li>Virtual Classroom? </li></ul><ul><li>ERP Connectivity? </li></ul><ul><li>E-Commerce? </li></ul><ul><li>Systems Requirements? (Database, Server, Restrictions? </li></ul><ul><li>Offline Learners? </li></ul><ul><li>Multiple Portals – Single Implementation? </li></ul><ul><li>Specific Use Case Needs? </li></ul><ul><li>Buy in from all Stakeholders? </li></ul><ul><li>Budget/Pricing Sensitivity? </li></ul>
  6. 6. How to Create the Ideal RFP Have a clear vision of your overall learning strategy 1 Create proper scope for the project 2 Develop a vendor pre-qualification checklist 3 Create a vendor scorecard 4 Use a template 5 Don’t overstate the positive or understate the negative 6 Design a request for information questionnaire/evaluation 7 Allow sufficient time for responses 8
  7. 7. How to Create the Ideal RFP “ Many people view an RFP as simply a legal document that describes the desired contractual and working relationship between supplier and consumer to secure a bid for a given training project. It is designed to protect consumers from bad deals and vendors that might fall into bankruptcy— but an RFP is much more than that.” Chapman, B. How to Create the Ideal RFP. Training Magazine . Volume 41 (1). pp. 40-43
  8. 8. How to Create the Ideal RFP “ An RFP represents a critical point in the process that literally requires you to document your training needs using completely unambiguous narrative text, so that every member of your strategy team, other stakeholders and potential vendors will understand exactly what you are trying to accomplish.” Chapman, B. How to Create the Ideal RFP. Training Magazine . Volume 41 (1). pp. 40-43
  9. 9. Vendor pre-qualification checklist The Solution must…   1.      …be a fully hosted solution including off site hosting for the LCMS/LMS, hosting for course content and learner performance data, vendor-supplied hardware, and support staff 2.     …be a full featured, multi-author, content-management environment in which staff can create, store, reuse, manage and deliver e-learning courseware from a single, central remote content repository 3.     …be able to support content development from 6 different geographic locations including development sites in Texas, Michigan, New York, North Carolina, and Eastern Canada; while allowing e-learning courses to be deployed to approximately 7500 learners across all 6 locations as well 4.      …have built-in content creation tools suitable for novice development of e-learning courses including a wide variety of interactive test question types and simultaneously allow for interactive content from 3 rd party authoring tools such as Dreamweaver and Flash; also, support streaming media 5.     …allow trainers and subject matter experts to work initially in Microsoft Word and PowerPoint as a method of content development (templates/utilities/forms for converting Word/PowerPoint to e-learning) 6.     ….allow each training department to reuse content by modifying it for their own needs (customization) without duplicating content Sample
  10. 10. Use Cases <ul><li>Learner Perspective </li></ul><ul><li>Training Administrator/Registrar Perspective </li></ul><ul><li>Course Developer/Curriculum Manager Perspective </li></ul><ul><li>HR Perspective </li></ul><ul><li>IT Prespective </li></ul><ul><li>Others? </li></ul>
  11. 11. Use Case for Evaluation Purposes Sample
  12. 12. RFP - trends <ul><li>More requests for internal development of e-learning content </li></ul><ul><li>Desire to include Novice in instructional development Process </li></ul><ul><li>More sophisticated requests for business system integration </li></ul><ul><li>Departmental solutions vs. full enterprise wide solutions, still in the majority </li></ul><ul><li>Huge emphasis on financial viability of the vendor. </li></ul><ul><li>Single source solutions </li></ul>
  13. 13. LMS – Top RFP requests <ul><li>Standards-based, e-learning launching and tracking capability </li></ul><ul><li>Open model for interoperability with 3 rd party e-learning content </li></ul><ul><li>Freeform, ad hoc, customizable reports </li></ul><ul><li>Strong Classroom management capabilities with full resource/instructor management </li></ul><ul><li>Experience and planned-process for ERP/CRM (plus other business systems) integration </li></ul><ul><li>Pre-integrated content development and/or content management capabilities </li></ul><ul><li>Extended “Performance Management” functionality, such as competency management, regulatory compliance tracking, 360 degree evaluation, OJT tracking, etc. </li></ul><ul><li>Quick, efficient implementation </li></ul><ul><li>Reasonable price </li></ul><ul><li>Financial Viability of the LMS Vendor </li></ul>
  14. 14. LCMS – Top RFP requests <ul><li>Novice Friendly, Rapid Development content authoring and/or content assembly tools </li></ul><ul><li>Well defined model for importing Microsoft documents – PowerPoint and Word </li></ul><ul><li>Supports a wide variety of popular 3 rd party content authoring tools like Flash, Authorware, Dreamweaver, Lectora, Trainersoft, etc. </li></ul><ul><li>Strong adherence to standards and specifications (SCORM and AICC) </li></ul><ul><li>“ Tested” Interoperability with 3 rd party LMS </li></ul><ul><li>Well-defined model for reusing and re-purposing “learning objects” to create multiple, derivative versions of the same course, for different learners. </li></ul><ul><li>Adaptive Learning through Dynamic pretesting </li></ul><ul><li>Support multiple output types (most requested = print documentation, also PALM, PocketPC and Just-in-time help) </li></ul><ul><li>Revision Control, Archiving and File Management </li></ul><ul><li>Workflow Management </li></ul>
  15. 15. Definition <ul><li>LCMS (èl-see-em-ess): </li></ul><ul><li>A multi-user environment where learning developers can create, store, reuse, manage, and deliver digital learning content from a central object repository. </li></ul><ul><li>Acronym for L earning C ontent M anagement S ystem. </li></ul>
  16. 16. Anatomy of an LCMS Learning Object Repository Microsoft Word M I D D L E W A R E D E L I V E R Y E N G I N E PowerPoint Built-in Authoring Utilities (Browser-Based or Locally Installed Application) Content Creation Interfaces Flash (and other 3 rd party Authoring tools) Content Assembly Interface (course hierarchy) HTML Editor Embedded or external Database Storage Publish Learning (add navigation controls, etc.) e-Learning CD-ROM Print-based PALM (and other mobile devices) EPSS Output Type? Assemble at runtime Pre-compile C:Media Output Formats graphics animations audio video
  17. 17. Cisco (20,000+ field sales) Content Collection occurs before ADDIE (Knowledge Repository) Learning Content E-learning Courses A nalyze D esign D evelop I mplement E valuate
  18. 18. When you should consider an LCMS <ul><li>80+ hours of “seat time” per year </li></ul><ul><li>10 or more “content contributors” </li></ul><ul><li>Need to “rebrand content” </li></ul><ul><li>Automatic navigation controls – Common e-learning player </li></ul><ul><li>Support multiple output types (print-based, EPSS, PocketPC, etc.) </li></ul><ul><li>LMS in place, but can’t keep pace with content needs </li></ul>
  19. 19. Scope – Understanding Costs LMS Average Licensing Costs – Locally Installed N=52 Source: LMS KnowlegeBase: In Depth Profiles of 52 Learning Management Systems, With Custom Comparison Across 200+ Features , published by brandon-hall.com. $1,063,796 ($4 per learner) $632,490 ($6 per learner) 100,000 Learners $451,521 ($6 per learner) $279,389 ($11 per learner) 25,000 Learners $258,771 ($9 per learner) $157,887 ($16 per learner) 10,000 Learners $57,959 ($39 per learner) $36,767 ($74 per learner) 500 Learners 3 year license and maintenance agreement 1 st year license
  20. 20. Scope – Understanding Costs LMS Average Licensing Costs – Hosted N=52 Source: LMS KnowlegeBase: In Depth Profiles of 52 Learning Management Systems, With Custom Comparison Across 200+ Features , published by brandon-hall.com. $1,383,964 ($5 per learner) $681,562 ($7 per learner) 100,000 Learners $592,816 ($8 per learner) $259,232 ($10 per learner) 25,000 Learners $348,378 ($12 per learner) $160,463 ($16 per learner) 10,000 Learners $96,387 ($64 per learner) $44,528 ($90 per learner) 500 Learners 3 year license and maintenance agreement 1 st year license
  21. 21. Questions??? Bryan Chapman Chief Learning Strategist Chapman Alliance [email_address]

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