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EXECUTIVE SUMMARY
The purpose of this report is to provide Uncle Al’s manufacturing company with a thorough source of information and recommendations regarding the purchase of a Learner Management System. The report covers general definition and features of the software in question, bringing to light the option of the purchase of a Learner Content Management System additionally.
Organisational issues, such as learner readiness are analyzed, questioning the intended use of the LMS and the necessity of the purchase. Technical issues surrounding the actual software are discussed, including interoperability with current learner management systems operating within the company, specifically the HRIS system, as well a wide range of features that need to be present in the software if it is to perform its function efficiently. This report outlines a number of alternatives to the purchase of an LMS or LCMS, including company intranet and open-source options.
Following the discussion, a 12 month implementation plan is recommended for the introduction of e-learning and learner management software into the organisation. This proposed as a three stage process. This report is does not provide a final solution, rather it gives the organisation a means of arriving at the most appropriate solution.
BACKGROUND
Uncle Al’s is an Australian company, producing 100% Australian made and Australian owned, organic snack foods. The company employs 1000 people, in two Sydney locations. The head office in North Sydney is concerned with sales and marketing, finance and administration. The factory and distribution centre are located in Auburn.
Uncle Al’s training function is based in Auburn and is handled mainly by line managers and supervisors. There is no separate training department, and all training is face to face; either classroom based, or on-the-job. The training at Uncle Al’s factory and distribution centre includes; 1) Occupational Health and Safety, 2) Operation of Machinery, 3) Food Standards, 4) Emergency Procedures and 5) Interpersonal skills workshops. The company has a sophisticated HRIS, and all employees have been trained to access their information on the system. The director of Human Resources would like to introduce e-learning, and believes that an LMS is the first step to take in this direction. There are a number of concerns he wishes to address regarding learner readiness, costs, and integration with current HR systems.
INTRODUCTION
The expansion of an organisations learning and development function can occur in any number of ways, dependant on the organisational needs, capabilities and available resources. The introduction of e-learning and purchase of a Learner Management System is one possible avenue. This report aims to explore this avenue in relation to the specific requirements of Uncle Al’s manufacturing company. The discussion will firstly provide an overview of the LMS and LCMS software, including definitions and a discussion of the features and benefits. Secondly, the organisational and technical issues concerning the purchase of this software will be outlined, including pricing methods. The final part of the discussion will provide possible alternatives to the purchase of LMS software. Recommendations regarding the most appropriate course of action will be revealed after the discussion.
DISCUSSION
Definitions
 

A Learner Management System (LMS) is software system, designed to facilitate the planning, delivering, management and administration of all learning events within an organisation, including online, virtual classroom, and instructor-led courses. It provides a single point of access to disparate learning sources. (LMS & LCMS: What’s the Difference?).
The LMS is empty; it is like purchasing an empty filing cabinet, in which one can store all of their material in an organized fashion, making it ready and accessible to those concerned. The LMS provides for the management of traditional forms of learning as well as e-learning. It contains features for;
1)       The tracking of results
2)       Learner collaboration
3)       Learner profile management
4)       Sharing data with HR systems
5)       Scheduling of learning events
6)       Competency mapping and skills gap analysis
7)       Creation of test questions and test administration
8)       Organisation of reusable content
9)       Access to all available training materials
10)   Personalization of learning
An LMS however, does not involve the function for content authoring. In an organisation where e-learning has not yet been introduced, no online material is yet available, and would need to be designed or purchased, and then inserted into the LMS for management of delivery. This is where, Learning Content Management System, would be more beneficial:
 
The Learning Content Management System (LCMS) is a system that creates, stores, assembles and delivers personalized e-learning content in the form of learning objects (LMS & LCMS: What’s the Difference?). A learning object is a digital resource that can be reused to support learning (David Wiley). In short, while an LMS manages all aspects of learning delivery, an LCMS focuses on the creation and personalization of learning content.
Like the LMS, the LCMS also has a number of the same capacities for:
1)       The tracking of results
2)       Learner Collaboration
3)       Creation of test questions and test administrations
4)       Organisation of reusable content
Additionally, an LCMS:
1)       Supports dynamic pre-testing and adaptive learning
2)       Includes workflow tools to manage the content creation process
3)       Develops content navigation controls and user interface
(LMS and LCMS Demystified)
The two systems can be used together with the LMS used as a catalyst for the overall learning environment, and the LCMS learning objects integrated into it. This way, we have the whole infrastructure for content management, including delivery and tracking, storage in a content repository, assembly and reassembly of content objects, incorporation of content objects into blended curriculums, and tracking of learner progress. (LMS & LCMS: What’s the Difference?). This is a more appropriate solution for a company which does not yet have existing e-learning content to manage with the LMS
 

Issues Involved
 

A use of a Learner Management System does provide a very appealing solution.  However, the decision to purchase an LMS should only be made after careful consideration of a number of important issues. This section addresses the organisational, technical, and cost issues involved in the purchase of an LMS or LCMS.
 

Organisational Issues
Firstly, there needs to be clarification about what the company wants from the LMS. Specifically, what will the LMS be used for; what is the learning strategy at the present moment; are the learners ready; what requirements does the LMS need to serve?
The main issue at Uncle Al’s is that there is not yet an e-learning system or culture in place. The current training is performed by line managers and supervisors, and involves sessions about 1) Occupational Health and Safety, 2) Operation of Machinery, 3) Food Standards, 4) Emergency Procedures and 5) Interpersonal skills workshops. The current content therefore, will need to be either transferred into electronic form or new online content would need to be developed.
It is not yet known how staff will react to the introduction of online learning. What proportion of staff are computer literate? Is there access to computers in the workplace, or do they have computers at home. Will they be reluctant to take on board this new system? Will they need to be trained in its use? Are the ready (see recommendations)? The LMS will simply provide an organised and structured system for the delivery and tracking of e-learning, it will not guarantee the success of the introduction of the e-learning function itself.
Furthermore, there need to be staff available for the administration of the LMS. Are the line managers and supervisors capable of implementing the use of this technology, or does a separate team need to be created for functions such as data entry, technical support for employees, and the overall management of the LMS? In other words, who will be responsible for it?
 

Technical Issues
If a decision is made to purchase an LMS, numerous technical features need to be examined. Following are some of the most important issues regarding LMS technology:
-          Integration with HR: The system will be of no use if it cannot be used together with the company’s existing HRIS. This is specifically relevant to Uncle Al’s, where sophisticated HRIS already exists, with staff fully trained to access this system. When shopping for an LMS, this organisation will need to ensure the LMS supports its existing HRIS.
-          Administration tools: The administration side of the program needs to be user friendly and helpful, allowing administrators complete access to the training database.
-          Content access: The medium in which the content is delivered, the method and the languages need to be suitable to the company’s needs
-          Content integration: The LMS needs to support a wide range of third party software.
-          Skills management: Skill assessments will allow learners to access their competency gap.
-          Assessment capabilities: It is important the program allows for assessment at various stages of the course
-          Adherence to standards: The LMS needs to support standards such as SCORM and AICC, in order for imported programs to be compatible. AICC, and well as SCORM standards are a universal categorizing system, which when adopted by two different pieces of software, will make them interoperable and allow them to work together. (AICC and SCORM)
-          Configurability: The systems needs to fit with the organisations existing internal processes
-          Security: To keep the employee information private.
(A Field Guide to Learner Management Systems)
 

Cost and Pricing
Another factor to consider when selecting an LMS is the pricing method. Following are three options:
-          Direct purchase model – The software is purchased, installed and managed in-house
-          Third party maintenance model – The company buys the software, and installs it on its own data platform, but the maintenance and upgrades are managed by the LMS vendor or another third party.
-          ASP model – The company buys the software but it is housed and managed remotely by a third party and administrators, content builders, instructors and learners access the system over the internet
A Field Guide to Learner Management Systems)
Alternatives
 

The purchase of an LMS is not the only solution for the implementation of e-learning. There are other courses of action which should be considered;
1)       Doing nothing. If there is nothing wrong with the training function at the moment, then there is no need for change. The company already has a sophisticated HRIS system which allows for the management of the training function within the organisation. A change should only be implemented if the training function is not achieving the desired results.
2)       Purchase/develop online training material and host in on the company intranet. Using this method, employees can use the HRIS in order to determine which training activities they are required to complete. This way the employee’s reaction to the introduction of e-learning can be observed, without the extra expense of an LMS.
3)       Open source options. There are many free, open source virtual learning environments (VLE’s) available to those wishing to deliver e-Learning. This software is becoming increasingly popular and can be installed and customized with little programming knowledge. Many open source options are listed in the Wikipedia. The downside of using this option is that the software does not come with the same level of official support and quality assurance. On the other hand, one of the major advantages of open-source software is that any package can be modified to suit your exact needs, provided you have access to the technical resources
 

RECOMMENDATIONS
An LMS is extremely expensive, and does not provide a complete solution to the implementation of e-learning. The recommendation to Uncle Al’s is to implement e-learning using a step by step process, for a duration of 12 months, monitoring the reaction of staff as well as the results at each stage
Stage One
Begin with the introduction of simple online material available on a company computer, used in order to replace one or more individual modules usually covered in classroom based learning. Do not stop classroom based learning Monitor learner feedback and engagement. (4 months)
Stage Two
If the reaction of learners is positive, begin to develop a more sophisticated portfolio of online content, available through the company intranet, and tracked using the HRIS, in order to replace classroom based learning. Monitor learner feedback and engagement, as well as any improvements/problems with results and/or performance. (4 months)
Stage Three
Should implementation of e-learning using the company intranet prove to be beneficial to the company, it is possible to purchase a demo version of an LMS system and implement this within the company for a limited period of time. By using this approach, it is possible to monitor the success of the LMS without any commitment to further purchase. (4 months)
Final Decision
Depending on the reaction to the LMS, and to the improvement to training results and performance, the complete LMS or LCMS package can be purchased, or the company can revert back to administering e-learning using the company intranet. An open-source can be adopted, however, it is recommended that this only be done if the appropriate IT resources are available Purchase is a safer option for a company such as Uncle Al’s, which does not have an IT department. The decision needs to be made after careful consideration of company processes and needs, which will come to light, after following the above steps.
CONCLUSION
This report has explored the possibility for the implementation e-learning and purchase a Learner Management System at Uncle Al’s, taking into consideration the unique requirement of this company. After a through discussion of the definition and features, organisational and technical issues involved, pricing methods and alternatives, an appropriate course of action has been recommended. This recommendation involves a step by step, gradual process involving introduction of e-learning in stages and observing the outcome of each stage. This observation is used to inform further action. In this manner, Uncle Al’s can discover what the specific requirements in relation to e-learning are in this individual company.