Educational technology (EdTech) refers to the management of teaching and learning materials and processes using technological tools and applications. The terms online learning, virtual learning, and e-learning are often interchangeable with EdTech.
Reliance on EdTech for enterprise-level workforce training is increasing, as organizations seek to onboard new employees, retain and motivate staff, and bridge skill gaps with limited learning and development (L&D) resources. Many specialized jobs also require continuing education and accreditation, which can be supported by EdTech tools and services.
The modern workforce’s drive to learn new skills and take on new challenges has also influenced the adoption of EdTech, with e-learning now representing 21%–40% of the median organization’s learning portfolio in contrast with 1%–20% seven years ago.
Corporate educational technology (EdTech) products and services can be broadly categorized as content-focused, service-focused or providing a delivery solution.
Content-focused products include off-the-shelf or customized courses focusing on learning and developing hard skills, soft skills, skills in demand, or skills of interest. Delivery styles are varied and include massive open online courses (MOOCs), in-person or virtual classrooms, mobile learning, and micro-learning. A variety of technologies may be employed such as video-based learning, artificial intelligence-based (AI-based) and adaptive learning, augmented reality (AR), and virtual reality (VR).
Service-based offerings include online course marketplaces and review boards, testing and assessment solutions, data analytics tools, communication tools, and identity authentication solutions.
Delivery solutions providers offer technology-based platforms to host in-house or externally sourced content, track progress, and generate analytics. These platforms include learning management systems (LMS) and learning experience platforms (LXP).
The EdTech corporate learning market is dominated by incumbents specializing in content, services, delivery solutions or a combination of these factors. Disruptive EdTech startups are mostly go-to-market and expansion-stage firms that have attracted investor attention on the strength of high-quality or unique content, efficient delivery methods, affordability or a combination of these factors.
Disruptors in the educational technology (EdTech) corporate learning market cater to the learning needs and styles of the modern workforce using emerging and evolving technology.
Content providers such as Coursera, Degreed and Guild Education focus on offering a wide breadth of high-quality content by partnering with universities to offer their programs to individual learners and corporate workforces. Other startups such as Strivr, TRANSFR, Mursion, and Talespin offer simulation-based learning using virtual reality (VR) technologies. Another approach provides platforms that connect learners with instructors, either on a large scale such as Udemy, or on a one-on-one basis such as Torch Leadership Labs, CoachHub, and Multiverse. Udemy and Coursera are leaders in the corporate client content space with 16,000+ and 1,480 organizations using their platforms, respectively.
Delivery solutions providers seek to disrupt the traditional learning management system (LMS) market by hosting user-generated content, and by offering new personalized, gamified, and micro-learning models. Leaders in the delivery solutions space include Blackboard, TalentLMS, Articulate, and Cypher Learning.
Leading content providers such as Skillsoft, LinkedIn Learning, and Pluralsight maintain extensive reach by catering to both individual learners and corporate clients with a mix of freemium and subscription-based business models. That reach is extended through partnerships with firms in the service and delivery solutions space.
Many of these companies also operate across academic institutions as well as business organizations. Kaplan’s (a business of Graham Holdings) higher education programs, professional training, certifications, test preparation, and student support services are used by academic institutions and businesses, while Pearson’s solutions span PreK-12 education, higher education, and industry and professional education.
Distributors of learning management systems include SAP, Adobe, and Microsoft. These companies have grown their portfolios by expanding—often by way of acquisition—into content and support services such as authoring and communication, as well as human resource functions like recruitment, compensation, and performance evaluation.
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