WR Hambrecht outlines
several needs that are driving the move to e-Learning in the
corporate environment. The needs are mostly related to changing
technology, lack of necessary skills, competition, demographics, and
other changes in the workplace.
"Social,
technological, and economic drivers are transforming education
around the world. As globalization encompasses local economies
like never before, the development of a skilled workforce becomes
a genuinely international concern. And as human capital becomes
the chief source of economic value, education and training become
lifelong endeavors for the vast majority of workers."
- Peter
J. Stokes, Eduventures.com, 1999
Economy is evolving to a
knowledge-based economy
In the last four
decades, economic and technological forces have transformed the
U.S. economy from a production-based economy to a service-based
economy. In the old economy, corporate value and value creation
were defined primarily through physical and financial assets. The
new economy puts a premium on intellectual capital. However, the
life of knowledge and human skills today is shorter than ever,
increasing the pressure to remain at the forefront of education
and training throughout a career. In the midst of globalization
and technological revolution, four-year degrees are just the
beginning of a forty-year continuing education. Life-long learning
may be considered merely a buzzword today, but it is quickly
becoming an imperative.
A paradigm shift in the
way education is viewed and delivered
At the beginning of the
new millennium, corporations view learning increasingly as a
competitive weapon rather than an annoying cost factor. Business
success depends more and more on high-quality employee
performance, which in turn requires high-quality training.
Corporate executives are beginning to understand that enhancing
employee skills is key to creating a sustainable competitive
advantage. In the quest to remain competitive in today’s
labor-tight market, companies are exploiting advances in
technology to train employees more rapidly, more effectively, and
at less expense than in the past.
Huge knowledge gaps
demand educational system reform
The new global economy
poses more complex challenges to workers, requiring higher levels
of education, computer literacy, critical thinking, information
analysis, and synthesizing skills. However, educational
deficiencies have brought America to the edge of a widening
knowledge gap. The U.S. is lagging behind educational levels of
other industrial nations in several key indicators. U.S. students,
for example, still trail students from other developed countries
in mathematics and science achievement, according to the U.S.
Department of Education. Even more alarming is that the literacy
proficiency of a substantial proportion of the U.S. labor force is
limited. More than forty percent of the labor force perform at the
two lowest levels on government literacy scales, suggesting that
many workers lack the skills needed to interpret, integrate, and
compare information using written materials common to the home or
workplace. The chasm between the higher demands of a
knowledge economy and the educational status of the workforce is
deep and must be addressed if the U.S. is to remain competitive
internationally. A thorough reexamination of curriculum
and teaching methods as they relate to labor market preparation is
needed. Academic and corporate environments must be redesigned to
adequately prepare people to function in an information society.
Globalization of
business is resulting in manifold challenges
Advances in information
technology and falling trade barriers facilitate business around
the globe. As borders become less meaningful, global competition
intensifies. International expansion and accelerating M&A
activity have led to larger and more complex corporations. Today’s
businesses have more locations in different time zones and employ
larger numbers of workers with diverse cultural backgrounds and
educational levels than ever. Thus, more information has to be
delivered in increasingly larger organizations, challenging
internal planning, logistics, and distribution. Corporations
worldwide are now seeking more innovative and efficient ways to
deliver training to their geographically dispersed workforce.
Social and demographic
changes direct education toward older target groups
Organizations and
training providers need to evaluate whom they train and how.
Today, traditional students in higher education – age 18 to 22
– make up less than 20% of all students. The fastest
growing group attending higher education institutions are working,
part-time students older than 25. This new group of
"learning adults" is seeking education principally to
advance their careers and increase their salaries. For
universities and business-to-consumer (B2C) training providers,
these individuals are excellent candidates for education delivered
to their homes or offices. Declining birth rates, aging
population, and lack of skilled labor also require an objective
evaluation of the training needs of older age groups. In the new
economy, even senior workers, including those nearing retirement,
need to be trained. Broader acceptance of new training delivery
options among older workers should facilitate the training
process. Americans over 50 years old are already the fastest
growing user group of the Internet today.
Learning has become a
continual process rather than a distinct event
In the new economy,
corporations face major challenges in keeping their workforce
current and competent. Many past training practices are unable to
meet these challenges. Traditional training is often unrelated to
new business initiatives or key technology drivers. In
"just-in-case" fashion, courses are given and then
forgotten, often without improving the performance of workers.
While learning is not a one-time activity, training has
traditionally been treated as such. To retain their competitive
edge, organizations have started to investigate which training
techniques and delivery methods enhance motivation, performance,
collaboration, innovation, and a commitment to life-long learning.
Explosive growth of the
Internet provides delivery vehicle for education
The emergence of online
education is not only a matter of economic and social change, but
also of access. IDC estimates that, by 2003, the number of
Internet users worldwide will grow to about 502 million, up from
87 million in 1997, representing a CAGR of 34%. With an estimated
103 million users in 2000 – or 40% of the projected 2000 total
– the U.S. has the largest share and highest penetration of the
Internet. The U.S. is also the leading nation in ecommerce. By
2003, one-fourth of all U.S. business-to-business purchasing will
be done online, as predicted by The Boston Consulting Group. The
increasing integration of the Web and American culture is also
evidenced by tremendous annual user growth. In 1997, only 15% of
the U.S. population used the Internet – then mostly a domain of
educational institutions and businesses. A stunning 63% of
Americans will be surfing the Web in 2003, more than doubling the
usage in 1999. Through its increasing reach and simplicity
of use, the Internet has opened the door to a global market where
language and geographic barriers for many training products have
been erased.
