The "Corporate University" Boom
   15th June, 2001
  
   There is a strong indication that corporate e-learning is poised to become the foundation of our global, knowledge-based economy. The trends shaping this booming market of corporate e-learning envisage the revenues to shoot from the present $1,114 million to $11,415 million by 2003 (According to IDC projections). Initially what began as IT training has spread its wings to embrace management, sales, customer service, and professional development training programs and given birth to the "corporate university." According to a U.S. Department of Labor publication, statistics reveal that more than 1,600 corporate universities exist today, engaged in pursuit of knowledge, and they could outnumber traditional universities by 2010!   
  
  
The Boom Factor
  
  
   Economic and technological forces have transformed the old economy’s perspective of corporate value from physical and financial assets to the new economy’s intellectual capital. In the midst of globalization and technological revolution, the shelf life of knowledge and human skills today is shorter than ever, increasing the pressure to learn and re-learn throughout a career. The rapid obsolescence of knowledge and training as well as the need for quick, cost-effective delivery of new knowledge and training are fueling the expansion of the corporate e-learning market.   
  
  
Projections
  
  
   According to Morgan Keegan & Co., organizations' expenditures on all forms of education now exceed $750 billion in the United States and have reached $2 trillion worldwide. Revenue growth for e-learning is bound to outstrip revenue growth in all sectors of the education industry as e-learning captures an increasing share of the industry.   
  
  
Statistics
  
  
   According to WR Hambrecht + Co U.S. corporations spent $31.19 billion on IT training and $31.31 billion on soft skills training in 1999. Of those amounts, $870 million was spent on Web-based IT training, and $200 million went toward Web-based soft skills training. In contrast, instructor-led training still accounts for about 75% of corporate training, with various technologies including the Internet, CD-ROMs, audio/video, and others making up the balance.   
  
  
e-learning Market Drivers
  
  
   The main drivers shaping the knowledge economy include:   
  
    Rapid obsolescence of knowledge and training
  
  
    Increasing need for just-in-time training delivery
  
  
    Need for timely, flexible, cost-effective learning for globally distributed workforce
  
  
    Shrinking of the labor pool combined with greater demand for skilled labor
  
  
    Flexible access to company knowledge resources and lifelong learning
  
     
How Corporations Use e-learning
  
  
   Companies create corporate universities to focus on:   
  
  
    Managing organizational competency
  
  
    Providing employees with competency benchmarks
  
  
    Imparting knowledge within the organization
  
  
    Aligning business objectives directly to learning results
  
  
    Leverage learning to value-chain partners
  
  
    Reducing costs and significantly increasing organizational efficiency
  
  
    Increasing ROI from e-learning
  
     
Are you e-learning?
  
  
   According to WR Hambrecht +Co., e-learning seems best suited for companies in situations involving:   
  
    The acquisition of IT skills
  
  
    The need for rapid, efficient learning of specific knowledge sets
  
  
    Widely dispersed employees
  
  
    Cost-prohibitive classroom delivery methods
  
  
    The need for uniformity of content
  
  
   Today, a majority of companies are using e-learning to deliver professional development and training to their employees. Is your company ready to e-learn?   
  
   Historical & Projected Corporate e-learning Market   
  
  
Year Corporate e-learning Market (in million dollars)
1999 1,114
2000 2,222
2001 4,053
2002 7,113
2003 11,415