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You can find nearly as many definitions of e-Learning as you can people
willing to pontificate about any major industry, perhaps because learning is
becoming so important to so many. The following are a few of the definitions of
e-Learning:
e-Learning is the convergence of learning and the Internet. – Banc of
America Securities
e-Learning is the use of network technology to design, deliver, select,
administer, and extend LEARNING. – Elliott Masie, The Masie Center
We define e-Learning companies as those that leverage various Internet and
Web technologies to create, enable, deliver, and/or facilitate lifelong
learning. – Robert Peterson, Piper Jaffray
e-Learning is Internet-enabled learning. Components can include content
delivery in multiple formats, management of the learning experience, and a
networked community of learners, content developers and experts. e-Learning
provides faster learning at reduced costs, increased access to learning, and
clear accountability for all participants in the learning process. In today's
fast-paced culture, organizations that implement e-Learning provide their work
force with the ability to turn change into an advantage. – Cisco Systems
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e-Learners Maximize the Medium
In a USbancorp – Piper Jaffray report titled Helping Investors Climb
the e-Learning Curve, Robert W. Peterson, Mark A. Marostica, and Lisa M.
Callahan define the "e" in e-Learning from the perspective of
the user:
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What The "e" Is
About
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exploration
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e-Learners use the Web as an exploratory tool to access a
plethora of information and resources.
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experience
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The Web offers e-Learners a total learning experience, from
synchronous learning to threaded discussions to self-paced study.
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engagement
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The Web captivates learners by enabling creative approaches to
learning that foster collaboration and a sense of community.
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ease of use
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Not only is the Web easy to use for learners who are already
familiar with the navigation capabilities of the medium, but to
learning providers as well, as they can easily make content
immediately available to learners across all technical platforms
(Windows, N4AC, Unix, etc.).
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empowerment
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The Web puts learners in the driver's seat with a set of tools
that enables personalization of content and allows learners to
choose the way in which they best learn.
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e-Learning vs. Online Learning
The Corporate e-Learning: Exploring a New Frontier report by
WR Hambrecht +Co clearly identifies the differences between e-Learning
and online learning. e-Learning represents the whole category of
technology-based learning, while online learning is synonymous with
web-based learning. In this case, online learning is actually a subset
of e-Learning.
e-Learning = Technology-based Learning
The term e-learning covers a wide set of applications and
processes, including computer-based learning, Web-based learning,
virtual classrooms, and digital collaboration.
We define e-learning as the delivery of content via all electronic
media, including the Internet, intranets, extranets, satellite
broadcast, audio/video tape, interactive TV, and CD-ROM. Yet,
e-learning is defined more narrowly than distance learning, which
would include text-based learning and courses conducted via written
correspondence. For the purpose of this report, the term e-learning is
used synonymously with technology-based learning. Terms like
e-learning, technology-based learning, and Web-based learning are
defined and used differently by different organizations and user
groups. Moreover, use of these terms is constantly changing, as the
world of e-learning evolves.
Online Learning = Web-based Learning
Online learning constitutes just one part of technology-based
learning and describes learning via Internet, intranet, and extranet.
Levels of sophistication of online learning vary. A basic online
learning program includes the text and graphics of the course,
exercises, testing, and record keeping, such as test scores and
bookmarks. A sophisticated online learning program includes
animations, simulations, audio and video sequences, peer and expert
discussion groups, online mentoring, links to material on a corporate
intranet or the Web, and communications with corporate education
records. In this report, the term online learning is used synonymously
with Web-based learning or Internet-based learning.
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New Way of Learning
In a SunTrust Equitable Securities report, titled e-Learning and
Knowledge Technology, Richard C. Close, Rob Humphrys, and Brian W.
Ruttenbur explain how important e-Learning will become:
Technology is increasingly changing our lives. First, it was the
emergence of the desktop computer, now it is the Internet. It
enables the ordinary person to have access to never-ending
quantities of information and knowledge. Technology and the Internet
empower individuals and facilitate a more active role in the
educational process. As previously mentioned, the Internet has
transformed the way people shop (B2C) and the manner in which
businesses conduct transactions with each other (B2B). Over the last
several months, we have seen the evolution of a third area that we
believe can have the most significant impact on all our lives. The
e-Learning sector is just beginning to emerge. Just as the Internet
has transformed the retail market, we remain confident that it will
also transform the education and knowledge markets. As stated in a
New York Times article summarizing John Chambers' (CEO Cisco
Systems) comments at 1999's COMDEX Conference, "The next big
killer application for the Internet is going to be education.
Education over the Internet is going to be so big it is going to
make e-mail look like a rounding error." As more
individuals become connected, the Internet will penetrate deeper
into our everyday activities, including the way we learn.
The Internet has the ability to level the learning playing field.
Whether it is a high school student seeking assistance with a
geometry question or a father at home in Iowa who wants to get an
MBA from Duke University’s Fuqua School of Management's distance
education program. Individuals now have the power to learn on their
own time and at their own pace. E-learning technologies allow for
the real-time performance, thus enabling individuals to spend time
on their deficiencies rather than spending time on areas that they
have already mastered. Not only will e-learning improve the
achievement of students from kindergarten to high school, but also
the productivity of Corporate America's workforce. We believe that
the e-learning market will realize substantial growth over the next
five to ten years. Moreover, we believe that as bandwidth, video,
and voice technology continue to improve, the demand for e-learning
products and services will grow exponentially.
SunTrust Equitable also points out that the trends indicate there
is no stopping the new
e-Learning and knowledge markets.
IDC projects that a substantial percentage of the U.S. population
will be active Internet users. Notably, IDC also forecasts nearly
60% of the U.S. population will actively use the Internet by 2003,
up from just 15% in 1996. Although the rate of growth of individuals
online is expected to stabilize somewhat, the actual numbers of
individuals expected to become connected remains impressive.
In 1996, there were an estimated 38 million individuals connected
to the Internet. By 1998, the number of users increased to 82
million, growth of 116% over two years. IDC forecasts that the
Internet population will grow to 158 million by 2003. The 23%
compound annual growth rate in users from 1996 to 2003 is
significant. Again, although the rate of growth in users should
experience some deceleration, we believe that the time spent online
per individual will expand. Based on a greater amount of time spent
online, we remain confident that the growth in e-commerce revenue
can meet current projections. The growth in users and the amount
of time spent online is favorable for emerging areas such as the
e-learning and knowledge markets.
There is no stopping the revolution. The number of daily
activities impacted by the Internet will continue to rise. However,
as more individuals connect and become accustomed to the benefits
created by the Internet, its presence will become commonplace.
Therefore, the e-learning experience will be second nature to the
growing Internet population.
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The e-Learning Value Pyramid
The SunTrust Equitable report breaks down the different learning
markets and then build up what they perceive to be the value chain in
e-Learning in the form of a pyramid.
The opportunities in the education and knowledge arena are
impressive. With U.S. spending on education estimated at more than $700
billion, the industry is the second largest, behind healthcare. As we
look at technology product and service providers focused on the
education and knowledge markets, we have divided the industry into four
sectors based on the customers targeted. These include K-12 (K-12),
post-secondary (P2), corporate training (CT), and lifelong learning
(LL).
The opportunities in each sector are striking. Spending on the K-12
marketplace has surpassed $380 billion, with more than $30 billion spent
annually on childcare and $352 billion spent on K-12 education. By our
estimates, this is the largest of the four sectors. Although smaller
than the K-12 market, the post-secondary sector eclipsed $230 billion in
1997-98. The Internet is already changing the landscape of the P2
sector. Despite being significantly smaller than the K-12 and P2
segments, we believe that e-learning will penetrate the corporate
training market at a faster rate than the K-12 and P2 sectors. An
increasing amount of education is provided in the workplace. The CT
market has realized substantial growth, reaching an estimated $62.5
billion in 1999 compared to $60.7 billion in 1998. Notably, this
excludes the estimated $40-plus billion spent by the government on
training. The newest arrival to the education industry is the lifelong
learner. This market size is much more difficult to quantify than the
segments mentioned above. It would include individuals who purchase
self-help books, participate in seminars (in person or online), or are
just seeking to acquire new information or knowledge. We look for the LL
sector to develop into a prominent segment within the e-learning
marketplace as the Internet encompasses a larger presence in our daily
activity.
Given the tremendous opportunities that exist in the education and
knowledge marketplaces, there has been a surge in companies targeting
these markets. A tidal wave of capital has crashed upon the providers of
e-Learning technology products and services. Specifically, we have
identified more than $1.2 billion distributed to e-learning companies
and more than $302 million in public equity raised during 1999. With
roughly $300 million raised so far in 2000 and a current backlog of
nearly $370 million in equity expected over the next several months, it
appears that the e-learning public equity market is just beginning to
emerge. At this time, we have identified more than 100 companies focused
on the learning and knowledge markets. These companies provide a wide
array of products and services to the four customer segments of the
education and knowledge industry. In an attempt to evaluate the dynamics
of the e-learning and knowledge technology market, we have divided the
industry into five categories. These include: Content/Publishing,
Tool-R/Enablers, Learning Service Providers (LSPs), Knowledge
Hubs/Portals, and Educational e-Tailers. Although we have segmented the
industry, in many cases companies fall into several of the categories
mentioned above. For example, a company that provides a web-based
learning program to a client may also have supplied the content and the
platform.
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Of the five segments focused on the learning and knowledge markets,
we believe that content is the most critical component of learning
through the Internet. In order for skeptics to be swayed to use the
Internet as a tool to enhance learning, they must become comfortable
that its content does not distract individuals, but increases the
enthusiasm for knowledge. Learning tools and enablers are also important
in the process. Providers of learning platforms and knowledge management
systems are instrumental in the effective delivery of content. These
companies supply the infrastructure needed to deliver content. The
knowledge hub, e-Portals and learning service providers are the
distribution channels for content providers. They distribute content
through a platform to the end user. In order to be successful, these
knowledge hubs and LSPs must make painstaking efforts to ensure that
their customers consistently receive fresh content; otherwise they will
fail to expand their customer base. Completing our pyramid of e-learning
are companies focused on educational entailing. In many cases,
representatives of the other categories also partake in entailing as a
complement to their primary product or service. There are, however,
single focused e-tailers as well. Companies such as bigwords.com and
ecampus.com cater to the P2 sector through online textbook sales.
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