Learning Management Systems – A Missing Link in GRC Vend..
Learning Management Systems – A Missing Link in GRC Vendor platforms?
With all of the talk about Big Data and data analytics you may be surprised to find that one of the fastest growing industries in technology is focused on student through adult education. Yes, “education” is a hot topic and an even hotter market for eLearning or Learning Management Systems (“LMS”).
Learning Management Systems is a very large and diverse market that goes by a variety of names and categories: Corporate Learning Management Systems (CLMS); Learning Content Management Systems (LCMS); Rapid Learning Management Systems (RLMS); Education Learning Management Systems (ELMS); Virtual Classrooms (VC); and, Generic (Off-the-Shelf) eLearning Courseware Vendors.
The market Learning Management Systems is estimated at $200 billion with eLearning systems representing $56 billion and expected to double in size by 2015, according to Global Industry Analysts, Inc. 77% of American corporations are using eLearning systems up from 4% in 1995. While these growth numbers are impressive it is important to note that the U.S. and Europe represent 70% of the eLearning market with Asia Pacific expected to experience the fastest growth rates exceeding 20% annually.
Given this huge potential it is surprising that GRC vendors have not leveraged their platform to offer either “off-the-shelf” or modules of customized regulatory and or risk management training. The market size of Learning Management Systems and rapid growth make synergies between GRC and eLearning a natural fit. eLearning is not only a significant business opportunity for GRC vendors there is a considerable need in many organizations to leverage systems that integrate risk awareness with tools that allow for risk assessment and analysis.
The six largest LMS providers represent 50% of the entire market with hundreds of small players continuing to enter. GRC vendors have the option to partner with or acquire solutions providers to tap a market that is ripe for global growth and creates leverage into new markets within organizations.
More importantly, eLearning systems add value by reducing the cost of training and allows for ease of development and dissemination of new training programs. Most of the top LMS providers are SCORM “certified” by Advanced Distributed Learning (ADL) for maximum interoperability. SCORM is a suite of technical standards developed by the Advanced Distributed Learning (ADL) initiative to develop common specifications and standards for technology-based learning deployed over the internet.
These standards enable web-based learning and content management systems to find, import, share, reuse, and export learning content in a consistent manner. In addition, it allows user tracking and reports to be generated based on learning objectives.
Essentially, SCORM standardized the method of communication between eLearning courses and SCORM conformant learning and content management systems. SCORM currently includes the following ‘elements’: An Application Programming Interface (API) for communicating information about a learner’s interaction with content objects.
In a recent research project using data from TheGRCBlueBook one LMS vendor was compared to cohorts in GRC vendor providers with top players in Learning Management Systems. The comparisons revealed that there are a few GRC vendors who do provide Learning Management System solutions for corporate customers but the solutions offered are focused on “Ethics, Governance, Board and Code of Conduct” training. The opportunity to expand LMS training through GRC vendor solutions appears to be significant or a missed opportunity depending on how one looks at the issue.
TheGRCBlueBook has started a new category in the GRC Tools & Reviews called “eLearning Management Systems” that leverages a database created by Don McIntosh, Ph.D., Syracuse University. Over time this category will be expanded to include hundreds of new vendors.
TheGRCBlueBook mission is to become a global risk and compliance community site and resource portal for sharing best practice across all highly regulated industries. A one stop source for all things risk and compliance related.