There is increasing interest in South Africa in using e-Learning to lower the costs of training and improve effectiveness. The issue is in getting started and how best to do this? We’ve written this post to be of assistance to those companies wanting to start training via e-Learning to outline the various options as clearly as possible.
This is not an attempt to pull any wool over the eyes to make our service look more appealing, I hate it when people do that. Rather this is a logical and honest overview of our market, its players and sensible arguments for and against different approaches to training with e-Learning. I’m sure that if you don’t believe me now, your own experience will shortly confirm what I’ve said here.
Let’s get started…
In our adventures in the South African e-Learning market we’ve come to know the landscape rather well. This landscape is divided into 3 main types of service provider:
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Learning management systems suppliers
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Content suppliers
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Content developers
Our service doesn’t really fall into any of these but I’ll come back to us at the end.
Learning Management System Suppliers
LMS suppliers come in two flavours: Proprietary or open-source.
Proprietary suppliers are those that have built their own LMS while open-source systems providers specialise in tailoring freely available systems such as Moodle or Sakai for the company’s purposes.
Whichever supplier is chosen, due to connectivity and bandwidth concerns in this country, your company will most likely be required to install the system in-house. The alternative of hosting the system online leads to the obvious trade-off between high bandwidth cost or unexciting (and hence less effectual) text-based training material. This in a time where there is a strong move to reduce in-house IT infrastructural costs and an increase in software-as-a-service (SAS) models.
Regardless of whether the system comes free or not, there are costs to the installation and ongoing running of the system. The obvious costs to watch out for are:
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Setup and configuration
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Licensing or straight out software purchase
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Maintenance and support
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Hardware (the system is installed in-house remember so it’ll probably need a server or two to run on)
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Client software (you may have to purchase software for the client machines)
The only difference between a free system and a proprietary one is in which category the majority of costs lie. In the case of the proprietary system, these are in the licence costs, in the open-source case, these are in the setup and configuration costs.
The advantages to buying and installing a learning system yourself are:
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Maximum flexibility with regard to training
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Some tailoring of the system for your purposes may be possible (more so with open-source than proprietary
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Increasing return on investment (generally as the use of the system increases, the costs don’t rise equally)
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The usual e-Learning benefits
There are however, some drawbacks to think hard about:
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The major drawback from going this route is that you will probably need to source your own training material (probably from multiple suppliers). Also, you need to make sure any you find can be added to your system (this is not a given). Then you’ll need to actually have someone do all the courses so you know what they’re about and what quality they are before attempting to use them to train.
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The system needs to be run by someone who has a combination of skills including IT and training experience. This requires a change in the role of at least one employee (if not more) or the hiring of new staff, and obviously this person or group of people will also need to be trained on the system. Further to this you may need to reshape your employee benefits scheme to keep the administrators driving the process.
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If you want to build content specific to your organisation, you’ll need to find suppliers to help you. We don’t believe giving an employee a software tool to do this is sufficient since the ability to educate in the required technology is not a commonly held skill
If you find the costs are not exorbitant and you are considering the in-house approach, here are some questions to ask of your potential supplier.
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Do you supply any courses with your system that we can use? (some do, most do not)
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Is the system SCORM compliant? (this is the recognised standard for enabling content and systems to be interoperable)
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What support do you offer on the system and how much does this cost?
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To what extent can the system be customised?
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What training on your system is offered for the administrators and (importantly) the learners?
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What software is required on the learners’ machines?
For the most part, in our wanderings, we’ve only seen in-house managed solutions work in the largest companies. This is likely due to a combination of the time and effort required to make a success of e-Learning, courseware sourcing pains and the costs of implementing systems.
Content Suppliers
There are a great number of content suppliers in the world, though pitifully few offering South African content. The reason for this is that the market for e-Learning has been advancing for nearly 20 years in such countries as the US, UK and Australia. This means they’ve had a huge lead time on us to develop packaged course material while the market here is still in relative infancy.
If you consider that many training subjects are geographically neutral (meaning the principles behind running an effective meeting or learning the basics of project management do not really change depending where you live, for example), it’s easy to see that its worth neither the overseas suppliers time nor a local content developers time to SouthAfrican-ise this content. The Americans will rightly say our market isn’t big enough in their eyes to go to the effort, and local providers would just be reinventing a wheel that was perfected years ago.
(I argue that the only content that should be developed by locals is geographically-specific content like courses on the law, for example, or courses in local languages.)
Given that most content is available from overseas suppliers, the major obstacle standing in the way of a South African company wanting to get access to this content is that many of the suppliers will only share this with you across the internet. It’s a problem of copyright, you see? They would much rather control access to the content than have it distributed around the various local networks of South African companies.
This then means that you either have to access it via their online system or, if they agree to make it available locally, have a learning management system of your own. This is due to the fact that the content from overseas is most often in an e-Learning format and not on a disk as we’ll see next.
The alternative, which is much more prominent in SA (though content is still imported), is for content suppliers to be offering CDs or DVDs of courses. Now one may argue that this isn’t e-Learning in the real spirit of things, but it is an alternative.
CDs and DVDs may still offer cost savings over a face-to-face delivery, and are usually where companies start, but there are some obvious drawbacks:
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You need to manage the physical stock of disks. Most companies that have been using disks to train for a while have noticed a severe decline in the number of disks they think they should have on the shelves relative to that which they do have. The disks go missing, get stolen, left in disk drives, broken etc.
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If you have multiple branches, you will have to have more than one copy of the disk. This usually means increased cost
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Reporting on disk use and progress becomes near impossible since there is no central system capturing this information.
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If the course includes tests (which is often not the case) these results are extremely difficult to gather, and if possible at all require some manual process
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Tracking that the learner even did the training can also be tricky
Once you have a library of disks and you take the next step and get a learning management system to branch into e-Learning proper, it is not a simple process of adding this existing content to the system. Systems are run on bandwidth restricted networks; DVDs and CDs of training usually contain large, high quality files. These two things are not compatible.
Thus some sort of transformation of the learning content into a file size and type that is supported in terms of bandwidth AND the system is required (again SCORM compliance may come in here). Again, not a simple (or cheap) process so going the route of CDs and DVDs is really a short term solution if the company has any ambitions of using a learning management system to eventually manage the training.
Content Developers
Once you have a learning management system in place, the obvious extension to packaged course material is to start developing content specific to your organisation such as induction programs, system and process training etc.
Through our own trial and error we’ve discovered that content development is no simple task. I’m sure we had the attitude of most companies when we started that: “Given the right software and some content anyone should be able to make a reasonable e-Learning lesson”. This couldn’t be further from the truth.
Content creation requires (to use a phrase content developers love to throw around) pedagogically sound thinking. In layman’s terms, you need to be a skilled educator to begin with. To further muddy this pond, you also need to have a good grasp of technology, since we’re using it to train people after all.
If you decide to take this process in-house you need these sorts of people about as well as the software to make it happen. This is potentially another costly exercise. Adobe’s popular market leading offering, Authorware, sells for around R40,000. Other products that create only certain types of training (eg. IT system’s training) can cost up to R8,000 for one licence.
Then you need to consider compliance with the popular e-Learning systems standards such as SCORM to ensure that any content you have developed will be able to run on any SCORM compliant system. Most high-end development tools will automatically generate SCORM compliant files.
So the bottom line is that the task of content development is often best to outsource and there are development companies out there to use.
Our service
As I said I would, I return to our service which is something of an anomaly as far as we’ve seen in the South African market. We looked at the competitive landscape and understood the various pros and cons to the different options I’ve outlined above.
We then sat down and developed our outsourced service to offer as many of the benefits as possible with as few of the costs. Our service isn’t for everybody. We’re not particularly interested in the largest corporates for instance since they will have the manpower, time and money to buy and implement a system and find their own courses.
Our service is for those companies that want e-Learning but don’t have these resources available to them.
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They don’t want to source courses or manage and own a learning management system.
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They are having problems managing a large stock of physical training disks or perhaps want to skip that step all together
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They’re unsure if e-Learning will work for them and want to give it a try at no risk.
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They have a limited training budget and want to see how their costs may be reduced
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They want some flexibility when it comes to training and not to have to suffer large upfront costs for potential future returns to scale
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They need to develop training material but don’t know how or where to start
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Historically they’ve been unable to get the same benefits from e-Learning that the big companies have
These are the companies we talk to.

