The e-Learning marketplace is growing rapidly. For example, in May 2000, Fortune Magazine estimated that on-line learning will become a $22 billion market by 2003 and the estimates keep on rising. Another source, research firm IDC, estimates the U.S. executive e-Learning market alone will grow from less than $1 billion today to $7 billion in two years. Numerous companies are entering this space by converting old product offerings into new digital forms. Others are trying to reinvent e-Learning to take advantage of the special characteristics of web technology in more fundamental ways. As a result corporate decision-makers face a bewildering array of products and services relevant to corporate training, education and general performance management.

The fact that a company with a long history of delivering executive education enters the e-Learning market does not guarantee that their offering will meet your needs. Effective e-Learning requires that the education content be written and delivered very differently than in the past. A company with legacy learning systems, whether classroom or CD-ROM based or a competence in computer based technology (CBT), may not be successful in translating its legacy content and approach so that the e-Learning process delivers the desired learning experience and business results. Think of the transition from vacuum tubes to transistors. The legacy vacuum tube manufacturers did not fully understand the transistor technology or market, resulting in a transfer of leadership to new electronics companies.

As you will find, there are new categories of service in the e-Learning space. These include Portals, Content Providers, Learning Customization service providers, and specialist technology companies. Your company may need the services of all of these providers.

The purpose of this briefing is to help cut through the complexity by highlighting thirteen key questions that you need to ask in assessing the strengths, weaknesses, and applicability of different e-Learning offerings. Properly answered, the thirteen questions provide a solid basis for evaluating on-line learning and education products. Most importantly, they will also help shape your thinking in a way that will help position your company's approach to e-Learning with an eye on the future instead of the past. The e-Learning market will quickly evolve from the first generation of products and services now available to exciting new systems that truly capture the potential of Internet technology in upgrading knowledge and skills and providing comprehensive performance support.

Use of the internet to deliver conventional educational products and services in a new way. For example: Putting manuals, text and courses "on-line". Instructors and others are in control: the internet is simply used as a delivery mechanism. There may be many technical bells and whistles in the product features, but the educational philosophy basically belongs to a pre-digital era.

Use of the internet as a new educational environment where products and services have been specifically conceived and designed to tap the learner-driven potential of the internet. The needs of the learner are in control. The educational system adapts to the learner, not the other way around - as in the "text or courses on-line" models. Second generation systems create a capacity to build all learning around the needs of the learner. They also allow learning to be directly linked to key business issues on a just in time, just enough basis. Instead of being asked to "study a pre-determined course" or "follow a pre-determined competence development program" second generation e-Learning systems allow these actions to be infinitely customized to meet the needs of the learner in a way that creates a seamless integration between work and learning. They promise: just in time, just enough learning uniquely tailored to the needs of the learner and his or her job!

Use of internet based learning systems that build on a second generation "learner in control" philosophy while incorporating high band-width learning tools and supports such as complex simulations, virtual classrooms and other forms of "on-line" collaboration. The elements of third generation technology exist today, but without a comprehensive second generation platform remain as expensive and relatively isolated learning tools - wonderful, but only for the rich, privileged few. Because most providers have not yet understood second generation learning principles most current applications of these learning tools build on a first generation learning philosophy. When band-width and accessibility improves, third generation systems will win the day. For now (in the year 2001) they divert attention from what really needs to be done to drive e-learning throughout the corporate marketplace.