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    TABLE  OF  CONTENT  

    1.  INTRODUCTION  TO  ELEARNING  AND  GLOBAL  OUTLOOK  OF  ELEARNING  INDUSTRY  ..........................................  3  

    1.1  DEFINING  ELEARNING  ...............................................................................................................................................  3  1.2    A  GLOBAL  PERSPECTIVE  ON  ELEARNING  ........................................................................................................................  3  

    2.  RESEARCH  PROPOSAL  .......................................................................................................................................  4  

    2.1  RESEARCH  OBJECTIVES  ..............................................................................................................................................  4  2.2  RESEARCH  FRAMEWORK  ...........................................................................................................................................  5  2.3  RESEARCH  STAGES  ...................................................................................................................................................  5  2.4  RESEARCH  OUTCOMES  AND  DELIVERABLES  ...................................................................................................................  5  

    3.  SECONDARY  RESEARCH  ON  SINGAPORE  ELEARNING  MARKET  ..........................................................................  6  

    3.1  MACROECONOMIC  OVERVIEW  ...................................................................................................................................  6  3.1.1  PESTEL  Analysis  ..........................................................................................................................................................  6  

    3.2  ELEARNING  MARKET  IN  SINGAPORE  .............................................................................................................................  7  3.3  ELEARNING  IN  DIFFERENT  INDUSTRIES  ..........................................................................................................................  7  

    3.3.1  BFSI  Sector  ...................................................................................................................................................  8  3.3.2  Education  Sector  ..........................................................................................................................................  8  3.3.3  Retail  Sector  ................................................................................................................................................  9  3.3.4  Aviation  Sector  ............................................................................................................................................  9  3.3.5  Government  .................................................................................................................................................  9  

    3.4  COMPETITOR  ANALYSIS  ...........................................................................................................................................  10  3.5  LATEST  TRENDS  IN  ELEARNING  INDUSTRY  ....................................................................................................................  11  

    4.  DATA  ANALYSIS  ..............................................................................................................................................  12  

    4.1  PRIMARY  RESEARCH  ...............................................................................................................................................  12  4.1.1  Qualitative  Analysis  ...................................................................................................................................  12  4.1.2  Quantitative  Analysis  ................................................................................................................................  14  

    5.  THE  ROAD  AHEAD  ..........................................................................................................................................  18  

    5.1    STRATEGY  APPROACH  ............................................................................................................................................  18  5.2  DEMAND  OF  THE  SINGAPORE  ELEARNING  CLIENTS  ........................................................................................................  19  5.3  RECOMMENDATIONS  ..............................................................................................................................................  21  

    5.3.1  High  Complexity  eLearning  Projects  ..........................................................................................................  21  5.3.1.1  Business  Approach  for  High  Complexity  eLearning  Projects  .................................................................................  21  5.3.1.2  Three  Years  Plans  for  High  Complexity  eLearning  Projects  ...................................................................................  22  

    5.3.2  Low  Complexity  eLearning  Project  ............................................................................................................  22  5.3.2.1  Business  Approach  for  Low  Complexity  eLearning  Projects  .................................................................................  22  5.3.2.2  Three  Years  Plan  for  Low  Complexity  eLearning  Projects  .....................................................................................  22  

    5.4  MARKETING  IN  A  COMPLEX  SINGAPORE  ENVIRONMENT  -‐  A  CHALLENGE  ............................................................................  23  5.5  METRICS  TO  MEASURE  AND  MONITOR  ......................................................................................................................  24  

    6.  REFERENCES  ...................................................................................................................................................  25  

     

     

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    1.  Introduction  to  eLearning  and  global  outlook  of  eLearning  industry     As  it  is  truly  said  the  only  constant  thing  in   this   world   is   change.   Over   the   years   the  entire   teaching   and   learning   process   has  undergone   revolutionary   changes   all   over   the  world,   across   all   industries.   The   modern  enterprise   learning   is   an   outcome   of   the  transition   from   traditional   computer   assisted  training   to   the   eLearning   era,   blended   and  collaborative  learning.  

    1.1  Defining  eLearning     Today   eLearning   is   just   not   about   the  use  of  online  or   technology  enabled  platforms,  but  it   is  the  entire  management  of  the  learning  experience  through  diverse  learning  strategies.  

    1.2    A  global  perspective  on  eLearning  One   of   the   fastest   growing   sectors   in  

    the  world  wide  training  and  learning  industry  is  that   of   eLearning.   According   to   the   latest  research  done  by  Global  Industry  Analysts,  Inc  ,  the   forecasted   market   for   global   eLearning  market  is  $107.3  billion  by  2015  (Jose,  2010).    

       

     The   global   eLearning   market   is  

    expected  to  grow  with  a  CAGR  of  23%  by  2017  (Sangeeta   Kakoty,   2011)   (Figure   1).   As   per   the  latest  market  research  report  from  GIA,  Europe  and   the   United   States   are   the   market   leaders  with   70%   of   the   revenues   (Jose,   2010).   The  fastest  growing  rate  for  eLearning  could  be  seen  in  the  Asia  Pacific  region  with  the  compounded  annual   growth   rate   of   33.5%   (Kineo,   2011).  With   this   rate   Asia   is   expected   to   take   over  Western   Europe   as   the   second   dominant  eLearning  market   of   the  world.   The   self   paced  eLearning   market   is   expected   to   reach   $51.5  billion   by   2016   with   the   compounded   annual  growth   rate   (CAGR)   of   7.6%   (AmbientInsight,  2011).  

     The   corporate   and   education   sectors  

    are   the   two   most   prominent   sectors   for  eLearning   worldwide.   The   corporate   eLearning  global  market   is  expected  to  grow  at  the  CAGR  of   27  %   annually   (McGee,   2010).   The   BFSI   and  education   sector   continue   to   be   the   biggest  customer   of   eLearning   services   /   online  platforms  /  Learning  Management  System.      

     

    0  10  20  30  40  50  60  70  80  90  100  110  

    1998  1999  2000  2001  2002  2003  2004  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  

    Fig  1:  Projected  eLearning  Market  Growth    

    in  billion  $  

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         Based   on   a   market   research   done   by  

    IDC   on   U.S   Corporate   eLearning,   few  recommendations   made   for   the   eLearning  vendors   which   will   help   them   to   become  competitive  in  this  volatile  market  are:  

    ! Understand   customer’s   requirements  first  

    ! Offer   a   breadth   of   solutions   suiting  customer’s  needs  

    ! Tailor   message   to   client's   position  within  maturity  cycle  

    ! Consider   adopting   a   software-‐as-‐a-‐service   (SaaS)   model   to   plan   your  resources   effectively   and   make  judicious  sets  of  offerings  (IDC,  2010)  

     

     

    2.  Research  Proposal  

    2.1  Research  Objectives  The  main  objectives  of  this  research  are:    1. To   do   a   feasibility   study   of   the   Singapore  

    eLearning  Industry    1.1  Analyze   Singapore  market   on   a  macro  scale  and   identify  the  sectors  where  there  is  high  potential  for  growth  for  eLearning    1.2   Identify   and   study   the   current   online/  eLearning   platform,   software   companies  and  challenges  faced    1.3  Understand  the  perspective  of  industry  and   corporate   adopters   of   eLearning  services  

    2. To   understand   the   customer   perception  towards   the   use   of   online/   eLearning  platforms  

     

     

    0  

    4  

    8  

    12  

    16  

    20  

    North  America  

    Lain  America  

    Western  Europe  

    Eastern  Europe  

    Asia   Middle  East  

    Africa  

    Figure  2:  2011-‐2016  Worldwide  Self  Paced  E-‐Learning  Growth  Rate  by  Region  

    North  America  

    Lain  America  

    Western  Europe  

    Eastern  Europe  

    Asia  

    Middle  East  

    Africa  

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    2.2  Research  Framework     The   research   framework   followed   for  

    the   whole   project   is   shown   below.   We   have  followed  a  funnel  approach,  wherein  we  started  with   the   global   perspective   on   the   eLearning  market  and  then  performed  the  qualitative  and  quantitative  analysis  to  tie  up  all  the  findings.    

    2.3  Research  Stages  The  entire  project  is  divided  into  three  phases:  

    ! Phase   1:   Desk   Research   /   Secondary  Research  

    ! Phase  2:  Tools  and  Techniques  ! Phase  3:  Recommendation  and  Strategy  

    Qualitative:   Various   global   and   local   eLearning  vendors  in  Singapore  (out-‐side  in  approach)  will  be   interviewed.   The   sample   size   for   this  interview   is   10.   We   will   also   hold   interviews/  discussion   with   the   customers   of   eLearning  services   in   various   industries   like   BFSI,  Education   (inside-‐out   approach).This   will  include  people  from  the  HR/  Training/  Learning  &  Development  of  various  organizations.    

     The   laddering  technique  of   interviewing  will  be  followed.  

                                                             

    Quantitative:   A   questionnaire   is   designed   to  understand   the   customer’s   perception   regarding  the  use  of  online  /  eLearning  platforms  in  training.  The   sample   size  of   the   survey   is  60.  Based  on   the  outcome   of   the   survey,   we   will   perform   a   Factor  Analysis.   This   will   be   followed   by   a   Regression   to  indentify   the   most   powerful   factor   impacting   the  customer  behavior.  Based  on  the  factors  obtained  after   regression   a   cluster   analysis  will   be   done   to  identify   the   potential   clusters   for.   The   cross-‐tab  analysis  will  help  us  understand  how  each  of  these  clusters  behaves.  

    2.4  Research  Outcomes  and  Deliverables     The  final  outcome  of  the  project  will  be  an  overview  of  eLearning  market  of   Singapore.  The   final   deliverables  will   consist   of   a   detailed  report  and  a  presentation.  

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    3.  Secondary  Research  on  Singapore  eLearning  market  

    3.1  Macroeconomic  Overview  Singapore   is   one   of   the   fastest   growing  

    nations  of  the  world  with  the  economy  growing  at   the   rate   of   1.9   %   and   the   GDP   real   growth  rate   being   5.1%   in   2012.   As   per   2011   Doing  Business  Report  of  World  Bank,  Singapore  ranks  first   among   183   countries   in   the   field   of   doing  business  with  ease  (DataMonitor,  2011).    

    Various   factors   such   as   flexible   labor  market,   low   non-‐salary   cost   of   employment,  regulations  for  protecting  investor’s  rights  make  Singapore   one   of   the   best   destinations   for  foreign   investments   and   business  entrepreneurs.  

     

       

             The  education  sector  continues  to  be  one  of  

    the   strongest   performing   sectors   and   around  one-‐fifth  of  countries  budget   is   invested  by  the  government  on  the  education  sector.  Singapore  is   one   of   the   major   financial   centers   in   the  world   with   more   than   700   local   and   foreign  banking  and  financial  institutions.  

    3.1.1  PESTEL  Analysis  The   figure   given   below   describes   the   external  environmental   factors   which   are   currently  playing  in  the  eLearning  market  for  Singapore.  

     

               

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      Currently,   the  Singapore  government   is  making   the   following   investments   which   could  impact  the  overall   learning  and  training  market  of  Singapore:  

    • Investing   around   $   100  m   as   a   part   of  Capability   Transformation   Program  supporting  business  association  to  scale  up  their  productivity  

    • An   investment  of  around  $  2.5  bn  over  2010-‐15   on   Continuing   Education   and  Training  to  develop  expertise  in  various  industries  (DataMonitor,  2011)  

    • Strategy   i2015-‐   ICT   industry   to   add  around   $17   bn,   quadrupling   the  revenue  generated  out  of  software  &  IT  services   and   achieving   90  %  household  broadband  penetration  rate  

             

    3.2  ELearning  market  in  Singapore  The   eLearning   market   of   Singapore   has  

    been   growing   at   a   tremendous   rate   and   the  eLearning  market  in  Singapore  was  estimated  to  be  around  US  $  106  m  in  2005  with  investment  of   around   US   $   57   m   in   the   corporate   sector  (Mohammad  Iqbal  Bashar,  2007).  The  Singapore  eLearning  market  is  expected  to  be  US  $  890  m  (considering   the   CAGR   to   be   33%  which   is   the  growth   of   Asian   eLearning   industry).   The  Porter’s   five   forces   with   respect   to   the  Singapore   eLearning   market   is   shown   in   the  figure  given  below.  

    3.3  ELearning  in  different  industries  The   Singaporean   eLearning  market   is   a  

    fragmented   and   a   complex   market   with   many  local  and  global  players  in  the  market.    

     

     

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    The   Defense,   Civil   Services,   Education  and   Corporate   World   mainly   banking   and  financial   sector   are   the   major   users   of  eLearning.   eLEAP   (e-‐Leaning   Early   Adopters  Program)   encourages   companies   registered   in  Singapore   to   use   eLearning   platforms   and  services   for   employee   training   by   funding  almost  around  50  %  of  the  investment  costs.  

    3.3.1  BFSI  Sector  The  BFSI   (Banking  and  Financial  Service  

    Industry)   sector   in   Singapore   is   one   of   the  strongest   and   growing   sectors   of   the   country  contributing   to   around   12   %   Singapore’s   GDP  and   employs   around   5.5   %   of   the   total  workforce.  Singapore  has  around  700   local  and  foreign   financial   institutions   (contactsingapore,  2012).There   are   120   banks;   out   of   which   114  are  the  foreign  banks.    

      Citibank   Singapore  is   looking   forward   to  integrate   various   eLearning  platforms,   online   courses,  knowledge   management  platforms   to   provide   one  stop   learning   platform  further   providing   certain  critical   factors   like  communication  updates,  memos  and  corporate  information.   Currently,   using   IntraLearn   LMS  enables   Citibank   employees   to   take   up   the  online  courses  easily  without  going  through  the  steep   learning   curve   of   understanding   the  software.  During   the   time  of  economic  crisis   in  2009,   when   organizations   worldwide   started  cutting   costs   and   reducing   investments   in  various   training   programs,   the   OCBC   bank  increased   its   training   course   modules   from   27  to   62   put   together   in   a   structured   framework  called  OCBC  Learning  Academy  (OCLA).    

      In  2008,  HSBC  incorporated  the  blended  learning  for  its  sales  roles  .To  build  a  better  and  efficient   way   of   learning   &   development  program,   HSBC   collaborated   with   Kineo  interactive  designers  and  developed  a  complete  suite   of   30   hrs   of   eLearning   modules   which  were  delivered  in  two  months.  In  2010,  DBS  set  up  the  DBS  Asia  Hub  which  simulation  facilities  and   state-‐of-‐   the-‐   art   eLearning/platforms   labs  (DBS,   2010).   G-‐Cube   won   the   LearnX   Awards  2012,   for   developing   the   3D   employee  induction   program   with   rich   multi-‐media  features   for   DBS.   In   2002,   Great   Eastern  Holdings   launched   the   eLearning   tool   called   e-‐campus.  The  CFe-‐  campus  (Centre  of  Excellence  Campus)   is   a   one   stop   interactive   learning  center   for   all   the   financial   planning,   products  

    and  services.  

    3.3.2  Education  Sector  The   Singapore  

    education   industry   is   one  of   the   fastest   growing  industries   contributing   to  around   2   %   of   the   overall  GDP   and   it   is   expected   to  reach   5   %   in   2015.   Pulling  statistical   data   from   the  education   industry,  we  see  

    the  following:  83  %  of  household  penetration  of  computer,   80   %   penetration   of   broadband  access,   and   137   %   mobile   phone   penetration.  On  the  education   front,  all  Singapore   Institutes  of   Higher   Learning   have   instituted   a   web  presence   through   virtual   campuses.   Integrated  Virtual   Learning   Environment   (IVLE):   Some   of  the   institutes   like   National   University   of  Singapore   (N.U.S)   have   developed   their   in-‐house  online  courseware  management  system-‐  IVLE.   NTU   has   been   using   its   innovative  eLearning   program   called   edveNTUre   since  2000.    

    “We  believe  an  engaged  and  competent  workforce  is  fundamental  to  helping  OCBC  achieve  its  goals  under  New  Horizons  II,  the  bank’s  five-‐year  

    strategy  from  2006  to  2010”    -‐Cassandra  Cheng,  Head  of  Learning  

    &  Development  OCBC  Bank.    

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    U21   global,   which   is   a   Joint   Venture  between   Universities   21   &   Thomson   Learning,  offers   the   highest   quality   online   education.  Institute   of   Technical   Education's   (ITE)   e-‐Tutor  system:   ITE   e-‐Tutor   system,   one   of   the   Intra-‐campus   initiatives,   allows   ITE's   1,200   academic  staff  to  access  and  share  courseware.    

    3.3.3  Retail  Sector  The   retail   scenario   in   Singapore   is  

    unique   and   plays   a   vital   role   in   strengthening  the  economy  of   the   country  by   contributing   to  around  1.5%  of  the  country’s  GDP.  The  concept  of   megastores   is   not   so   much   prevalent   here.  Singapore   retail   is   dominated   by   FairPrice,  Seven   Eleven,   Giant,   Shenshong   and   Cheers.  Convenience  stores  here  hold  a   larger   share  of  the  customer  wallet.  Retail   industry  employees  about   6%   of   the   working   population   and   with  Singapore’s   current   focus   on   increasing  productivity   of   employees   across   all   sectors  there   is   an   increasing   interest   in   the   eLearning  platform.    

    Retail   eLearning   platforms   are   more  skewed   towards   the   floor   employees’   i.e.   the  ones   in   direct   interaction   with   the   customers.  Cost  is  an  important  factor  for  the  organization  while   making   a   choice   since   most   eLearning  modules   are   customized   and   hence   the  companies  have  a  fair   idea  of  what   is  required.  On  a  broad  level  learning  platforms  which  track  the   employees   career   are   popular   in   several  industries   and   here   people   prefer   standard  products  with  little  tweaking.  

    3.3.4  Aviation  Sector     The   training   requirements   in   the  aviation   sector   are   for   Regulatory   and  compliance   training,   Safety   training,   Soft-‐skills  training,   Leadership   training,   Training   on  custom   IT   applications,   Technical   training   to  cabin  and  flight  crew,  Value  added  services  such  

    as   Training   Need   Analysis   (TNA),   Course  Portfolio   Management,   Competency   Mapping,  Technological   Support,   and   Requirement  Analysis   (TATA   Interactive).   Companies   across  Singapore   are   harnessing   the   potential   of  electronic   learning   to   train   and   ramp-‐up   their  staff.   Singapore   Airlines,   for   example,   in   an  industry  which  has   cut-‐throat   competition,   this  airline   has   leveraged   eLearning   capabilities   to  build   their   competitive   edge   in   the   global  aviation   industry.   According   to   SIA,   eLearning  will  enable  the  company  to  provide  just-‐in-‐time,  customized   training   to   their   staff   based   locally  and  abroad.  Cathay  Pacific  uses  NetDimensions  Enterprise   Knowledge   Platform   (EKP)   as   their  learning   management   system   (LMS)   which  helps   the   airlines   manage   the   end-‐to-‐end  learning  process.    

    3.3.5  Government  Since   1997,   Ministry   of   Defense  

    adopted   a   Self-‐Paced   on   Time  on  Need   (SPOT-‐ON)   concept   which   has   allowed   Singapore  Armed  Forces  to  successfully  incorporate  online  learning   to   enhance   the   quality   of   training  provided.   SAFTI-‐MI   have   leveraged   the  technological   advancements   in   the   field   of  learning   and   launched   two   online   learning  programs   targeted   towards   mid-‐senior   level  commanders  traveling  frequently.    

    Singapore  Armed  Force  (SAF)  rolled  out  a   digital   learning   system   “Learnet”   which  comprises   of   online   lectures,   tutorials,   and  instant   messaging   feature.   This   system   has  allowed   soldiers   to   access   rich   and   interactive  training   materials   anytime,   anywhere   at   their  own  convenience  and  pace.  With  the  use  of  this  learning   system,   it   is   estimated   that   classroom  time  will  be   reduced  by  10  %  enabling   soldiers  to   complete   30   %   more   modules,   thereby  creating   more   time   for   outdoor   and   hands-‐on  

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    training.  Another  company,  SingTel,  is  exploring  the  use  of  eLearning  to  train  their  employees  on  Internet   Protocol   (IP)   skills   to   help   smoothen  the   transition   from   fixed   to   IP   networks.  SingTel's   objective   is   to   train   about   1,500   staff  over   a   period   of   9   months.   With   several   staff  members   based   in   different   geographic  locations,   eLearning   will   be   instrumental   in  helping   SingTel   achieve   its   training   objective.  City   Cab's   web-‐based   Service   Excellence  

    Training  Program  offers  communication  training  to  its  taxi  drivers.  

    3.4  Competitor  Analysis       The  eLearning  industry  in  Singapore  has  a   huge   presence   of   various   global   and   local  players.   There   are   no   clear   market   leaders   in  this   industry.   There   are   various   Asian   based  companies  in  Singapore.                    

    Major  Global  and  Local  eLearning  Companies  in  Singapore  (Source:  Asian  ELearning  Network  (2008)  

         

    Content  Vendors   System  Vendors   Service  Vendors  

    Local   Purple  train,  ISS,  ASPonline,  Dnium,  SDC  Asia  

    Inchone,  National  ,Computer  System  (NCS),  Wizlearn,  CrimsonLogic  

    ICUS,  Knowledge  Platform,  SCS,  TTS,  Asia,  IKS,  Inkstudi0  

    International   SmartForce,  NETg   Saba,  Docent,  Intralearn   HP  Education  

       

       

     

     

     

     

  • eLearning    in  Singapore   11    

         

    3.5  Latest  trends  in  eLearning  industry     Since  the  advent  of  web  based  learning  in   early   90s,   the   end   user   learning   experience  has   undergone   a   dramatic   change.   With  convergence   of   informal   and   social  media,   the  society   is   tending   towards   more   of   a   closed  community.   Explosion   of   Smart   phones   and  tablets   in   the   market   has   impacted   the   way  people   interact   with   each   other.   With   the  evolution  of   social  media   tools,   the   concept   of  virtual   conferences   is   a   common   thing.   Below  are   few  visible   trends  which  will  predict  us   the  future  of  eLearning:  

    ! Content   Curators:   With   content   going  digital,   there   is   an   overload   of   information  which   is   available   on   internet.   The   future  lies   in   content   curators   who   can   gauge  relevant   data,   filter   unnecessary  information  and  organize   it   in  a  way  which  adds  value  to  customers.      

    ! Content   Cloud:   With   cloud   technology  being   the   latest   fad,   a   large   number   of  platforms   for   creating   and  hosting   learning  experiences  are  web-‐based.  As  the  software  is   always   online   rather   than   being   on   the  desktop,   this   creates   a   flawless   path   from  online   course   creation   to   launching   the  course   itself   and   helps   authoring   tool  publishers   in   providing   team   collaboration  features  easily.  

       

    ! Integrated   Learning:   The   integrated  learning   model   is   immensely   useful   in   the  field  of  education  as   it   enables   students   to  receive  homework  in  form  of  videos,  screen  casts  and  podcasts.    

     

     

     

    ! Gamification:   Gamification   is   increasingly  being   used   in   education,   defense,   airlines  and   healthcare   sector.   Using   simulation  based   games   increase   the   level   of  engagement,   provide   astonishing   levels   of  realism   to   the   end   user   and   make   the  experience  effective  and  long  lasting.      

    ! HTML5   for   Mobiles:   In   the   recent   times,  Flash  format  has  been  used  to  deliver  most  web-‐based   learning.   However,   with  explosion   of   Smart   phones   and   tablets   in  the   market,   Flash   technology   is   outdated  and   is   no   more   supported   on   all   mobile  devices.   This   calls   for   a   need   of   another  technology   to   present   interactive  multimedia   content   effectively   over   the  web.   HTML   5,   a   web   technology   has  replaced   the   functionality   of   Flash.   Using  HTML  5,  it  is  easier  to  deliver  multimedia  to  mobile   browsers   as   there   are   no  compatibility  issues.  

       

    ! New  Blended  Learning:  Many  organizations  still   feel   the   need   for   following   an   apt  combination   of   instructor   led   and   online  learning  to  increase  overall  effectiveness  of  training.  This  has  given  birth  to  the  trend  of  Blended  or  Hybrid  learning.    

  • eLearning    in  Singapore   12    

         

    4.  Data  Analysis  

    4.1  Primary  Research  The  qualitative  analysis  has  been  based  on   the  following  approach:  

    4.1.1  Qualitative  Analysis  1.   Outside-‐in   approach:   To   understand   the  perspective   and   opinions   of   eLearning   vendors  in   Singapore,   we   have   interviewed   ten  eLearning   vendors.   These   vendors   include  major  global  players  like  HP  Education  Services,  Intuition,   and   local   players   like   eLc,   IAL   and  startup   companies   like   3-‐sixty   solutions.  Through  these  interviews  we  have  gathered  the  following  information:  

    ! Major   Industries   using   eLearning   in  Singapore  

    ! Offerings   and   product   portfolio   of   the  existing  eLearning  players  in  Singapore  

    ! Challenges  and  scope  of  improvements  ! Road  ahead  for  eLearning  in  Singapore  

    The  key  findings  of  our  qualitative  analysis  are:  

    ! It   is   necessary   to   align   the   eLearning   and  training   programs   of   the   companies   and   various  organizations   with   the   objectives   of   the  companies.    ! The   companies   and   organizations   should   know  what  their  training  and  learning  requirements  are  and   then   approach   eLearning   providers.   This  would   lead   to   less   mismanagement   of  expectations   and   actual   delivery   between   the  customer  and  the  eLearning  vendor.  ! There   are   some   technical   challenges   that  eLearning  players  are   facing.   In  Singapore  due   to  the   tremendous   amount   of   iphone   /   iPad  penetration,   the   eLearning   platform   developers  are  facing  challenges  wherein  there  is  a  shift  from  flash   and   multimedia   based   platforms   to   old  

    xhtml   based   platforms   as   iOS   does   not   support  flash.  The  latest  trend  of  m-‐Learning  is  facing  the  compatibility  issue  with  various  platforms  such  as  windows,  androids  etc.  ! Availability  of  dedicated  subject  matter  experts  is   important   to   develop   the   content.   Hence   it   is  important   that   companies   should   either   provide  the  eLearning  vendors  with  SMEs  or   sponsor   the  one  that  the  eLearning  vendors  provide.  ! While   choosing   a   vendor   for   eLearning,   the  companies   in   Singapore   look   at   the   previous  record   of   the   vendor,   type   of   service,   sample   of  product   from   vendor   and   their   budget.     One   of  the  eLearning  vendors  makes  a  conscious  effort  to  see   that   the   designer   and   developer   of   the  product   is   also   the   sales   person   for   the   product.  This   way   the   company   ensures   avoiding  discrepancies   such   as   unrealistic   promises   to  deliver   eLearning   solutions   in   short   time   and   in  less  development  cost.  ! The  demand  of  custom  solutions  drives  most  of  the   revenues   of   the   eLearning   companies.   The  level  of  customization  depends  on  the  amount  of  customization   required   by   the   companies,   time  within   which   customization   needs   to   be  implemented  and  the  cost  involved.  ! There  are  no  major  players  in  the  market.  There  are  various  global,  local  and  startups  in  Singapore  who   have   targeted   most   of   the   industries   with  their   existing   eLearning   services   and   platforms.  Instead   of   playing   price   games,   the   eLearning  companies  should  provider  certain  differentiating  features  and  more  value  to  their  customers.  ! There   has   been   always   emphasis   given   on   the  “e”   aspect   of   eLearning   by   providing   latest   and  cutting   edge   technologies.   However   the   learning  part  is  highly  neglected.  The  eLearning  companies  should   understand   the   difference   between  training  and  learning  and  must  focus  on  providing  a  learning  experience.  

  • eLearning    in  Singapore   13    

         

      According  to  the  ten  eLearning  vendors,  the   top   three   industries   to   use   eLearning   are  Government,   Education   and   BFSI   /IT.   The  eLearning   vendors   highlighted   that   the  government   and   education   sectors   have   been  one   of   the   early   adopters   of   eLearning   in  Singapore.   The   “others”   include   industries   like  healthcare,   hospitality,   retail   and   aviation.   This  is  shown  in  the  figure  given  below:  

     

    2.   Inside-‐out   approach:   We   have   interacted  with   eLearning   clients   from   the   training   /  HR   /  Learning   and   Development   departments   to  understand  the  following:  

    ! Needs   and   requirements   of   the  companies  

    ! Relationship   with   eLearning   Vendors  and   criteria   considered   to   select   an  eLearning  vendor  

    ! Challenges  and  scope  of  improvement  

    From  our  qualitative   interviews  we  have   found  that  various   industries  have  adopted  eLearning  in  their  own  ways  for  different  operations.    

    ! Education  sector  in  Singapore  has  been  one  of   the   early   adopters   of   eLearning.  Universities   like   National   University   of  Singapore   (NUS)  have  developed   their  own  internal   eLearning   tool   and  have   their  own  internal   team   to   support   the   whole  application.   However   majority   of   the  institutes   work   with   external   vendors.  Blackboard   is   one  of   the  most  widely   used  LMS  in  the  education  sector.  As  highlighted  by  one  of  the  industry  expert,  the  important  factors   leading   to   successful  implementation   of   eLearning   in   education  sector  are:  - Professor  Friendliness  - Standardization  - Deployment  

      Use  of  eLearning   in  education  sector   in  Singapore   also   enables   institutes   to   tackle  problems   like   SARS.   As   some   of   the   colleges  expand   in   terms   of   their   student   strength   and  global   exposure,   they   adopt   eLearning.   In   the  corporate   sector,   the   eLearning   is   adopted  greatly   in   the   BFSI   and   IT   sector.   From   the  qualitative   interviews   we   found   out   that   the  following   factors   are   responsible   for   the  companies  to  adopt  eLearning  in  Singapore:  

    - Geographical  expansion  of  companies  - Increasing  number  of  employees  - Mandatory  courses  - Sustainability  of  content  

    ! Most  of  the  MNC  located  in  Singapore  have  two  types  of  eLearning  programs.  One  is  for  the   global   audience   and   is   localized   as   per  the  regional  or  country  needs.  

    ! The   companies   mostly   like   working   with  their   preferred   set   of   vendors   who  complete  skill  set  and  knowledge  and  know  the  culture  of  the  company.  

     

  • eLearning    in  Singapore   14    

         

    4.1.2  Quantitative  Analysis  The  main  objectives  of  the  quantitative  analysis  are:  

    ! To   understand   customer   behavior  towards   the   use   of   online   /   eLearning  based   platforms   and   services   for  training   purpose   in   corporate   and  education  sector  

    ! To   find   out   the   factors   impacting   the  overall   satisfaction   of   end   users  regarding  online   /   eLearning  platforms,  positively  or  negatively  

    ! To   analyze   the   challenges   and  expectations   of   end   users   (   students   /  professors   in   education   sectors   or  employees  in  the  corporate  world)    

     

     

     

    Sampling:  

    ! Total  sample  size=  60  ! Sampling   Methodology=   Convenience  

    Sampling  ! Mode  of  Questionnaire:  Online  (40)  and  

    Face  to  face  (20)  

      The   respondents   have   been   chosen  from  various   industries   like   IT,  BFSI,  Retail,  and  Education.  76  %  of  respondents  have  used  a  mix  of   offline   and   online   training   in   their  organizations.    As  seen  in  the  figure  given  below  majority   of   the   respondents   have   been   from  BFSI   /   IT   sector.   The   area   where   eLearning   is  used   in   each   of   the   sectors   is   shown   in   figure  given  below.  

     

  • eLearning    in  Singapore   15    

         

    Tools   and   Techniques:   A   questionnaire   has  been  floated  across  for  the  customer  survey.  

    Factor  &  Regression  Analysis  

      Through  our  data  analysis  we  found  out  that,   there   are   many   factors   impacting   the  customer   behavior   towards   the   use   of  eLearning   and   online   platforms.   We   applied  factor  analysis  to  group  the  related  factors   in  4  major  factors.  The  output  of  the  factor  analysis  with   some   of   the   important   factors   has   been  shown  in  the  figure  given  below.  

     

     

     

     

     

     

      After   applying   factor   analysis,   we   used  regression   to   find   out   which   factors   have   a  positive   and   negative   correlation   with   the  customer  satisfaction.  The  Ease  of  usability  and  Content  Features  have  a  positive  correlation  to  the  overall   customer   satisfaction.  However   the  factors  like  Level  of  Involvement  and  Technical  Issues  have  a  negative  correlation.  

         

     

     

     

     

     

     

     

    Ease  of  Use  

    UI  comfortable  to  use  

    Anyime  anywhere  access  

    Convenience  

    Ease  of  navigaion  

    Ease  of  access  

    Level  of  Involvement  

    Collaboraion  with  employees/  

    students  

    Mulimedia  Sharing  of  Files  

    Feedback  

    Personalizaion  

    Technical  Issues  

    Compaibility  with  muliple  plaqorms  

    Complexity  

    Technical  Errors  

    Content  Effeciveness  

    Amount  of  Flash  and  Mulimedia  

    Effects  

    Duraion  of  Course  

    Simplicity  of  Content  

    Quality  and  Quanity  of  content  

    Impact  and  Relevance  

  • eLearning    in  Singapore   16    

         

    Cluster  and  Cross-‐Tab  Analysis  

      Based   on   the   factors   obtained   above,  we   performed   a   cluster   analysis   to   find   out  potential   customer   profiles   which   ELearning  companies   could   target.   The   cross-‐tab   analysis  helped   us   to   find   how   these   clusters   behave  with   respect   to   various   attribute   .The   three  distinct  clusters  which  we  have  found  are  given  below:  

    1. Intensive  Users:    The   first   cluster   comprises  of   customers   who   use   eLearning   platforms  the   most.   They   have   undergone  more   than  two  online   training  over   the   last   six  months  and  on  an  average  they  spend  around  8  to  9  hrs  weekly   on   various   online   and   eLearning  platforms.   For   them   eLearning   platforms   is  just   not   about   training   but   also   about  collaboration  with  others,  knowledge  sharing  and  higher  degree  of  involvement.  They  also  prefer  using  eLearning  when  they  are  on  the  go.   Hence   for   them   compatibility   of  eLearning   services   on   multiple   platforms   is  very   important.   The   two   main   features   for  this   cluster   are   Level   of   Involvement   and  Technical   Issues.   These   intensive   users   are  from   the   corporate   sector   (BFSI   &   IT)   and  education  sector.    

     

    2. Moderate  Users:  The  second  cluster  as  shown   below   consists   of   people   who  use   eLearning   platforms   only   when  required.   They   spend   on   an   average   2  to  3  hrs  weekly  on  various  training  and  online   platforms.   They   do   not   seek   for  any   sort   of   collaboration   and   want  simpler   content   and   courses   with  shortest   duration.   They   also   want  content   with   less   flash   and   animation.  For  this  cluster  the  two  most  important  features   are   Ease   of   Usability   and  Content  Features.   Some  of   these  users  are   from   the   BFSI,   IT   sector   and   from  sectors   like   automobile,   retail   and  government.    

                           

    0  0.2  0.4  0.6  0.8  1  

    Technical  Issues  

    Ease  of  Usability  

    Content  Features  

    Level  of  Involvem

    ent  

    Intensive  Users  (  n=12)  

    Intensive  Users  

    0  0.2  0.4  0.6  0.8  

    Technical  Issues  

    Ease  of  Usability  

    Content  Features  

    Level  of  Involvem

    ent  

    Moderate  Users  (n=14)  

    Moderate  Users  

  • eLearning    in  Singapore   17    

         

    3. Non   Users:     This   comprised   of   a   very  small   percentage   of   our   sample.   We  found   that   there   is   a   certain   set   of  customers  across  all  the  industries  who  use  on  face  to  face  training.  This  cluster  looks  like  the  figure  given  below:    The   two   main   features   which   if  improved   can  migrate   these   non   users  to  users  are  Ease  of  Usability  and  Level  of  Involvement.  The  biggest  demand  of  the   non   users   is   regarding   the   user  interface  such  as  ease  of  navigation  and  regarding   the   higher   level   of  involvement   and   interaction   with   the  courses  delivered.  The  want  to  have  an  exact   replica   of   face   to   face   training   in  the  online  or  eLearning  platforms.  

     

     

     

       

     

     

     

     

     

     

     

     

     

     

    0  0.2  0.4  0.6  0.8  1  

    Technical  Issues  

    Ease  of  Usability  

    Content  Features  

    Level  of  Involvemen

    t  

    Non  Users(n=8)  

    Non  Users  

     

    Some  other  outcomes  of  Quantitative  Analysis:  

    • 70%  of  respondents  from  the  non  –education  sector  did  not  know  the  name  of  the  brand  of  the  eLearning  platform  used.    

    • 65  %  of  the  eLearning  users  access  the  eLearning  platforms  through  mobile  phones  and  tablet  devices.  

     • 85  %  of  the  respondents  want  to  

    have  their  training  and  learning  programs  through  blended  learning.  

     • In  the  corporate  sector  around  60  

    %  of  the  respondents  have  undergone  more  than  two  online  trainings  over  the  last  six  months.  

       

     

  • eLearning    in  Singapore   18    

         

    5.  The  Road  Ahead  

    5.1  Strategy  Approach     From   our   quantitative   analysis,   the  potential  clusters  of  end  users  are  the  Intensive  Users,   Moderate   Users   and   Non   Users.   On  mapping   these   clusters   with   the   learning   and  training   requirements   of   the   organization   the  eLearning  projects  of  any  organization  could  be  divided  in  the  following  two  categories:  

    • High   Complexity   (Customized   Projects-‐Intensive  Users)  

    • Low   Complexity   (Standard   Projects-‐  Moderate  Users  &  Non  Users)  

      The   strategy   for   the  eLearning   industry  cannot   be   created   based   on   industries   but   it  should  be  based  on  the  requirements  of  various  

    industries.   For   e.g.   if   we   consider   the   banking  sector,  there  are  certain  areas  (Low  Complexity-‐Standard   projects)   like   products   which   are  compliance  based  features  which  could  be  dealt  with   off   the   shelf   products.   But   there   are  certain   areas   (High   Complexity-‐   Customized  Projects)  like  leadership  training  which  needs  to  be   customized   as   per   the   requirements   of  specific   banks.   The   eLearning   clients   have  different   requirements   for   these   two   types   of  projects.   The  high   complexity   projects   demand  for   higher   level   of   interaction   between   the  client   and   the   service   provider   and   hence   the  amount  of  proximity  required   is  more.  The   low  complexity   project   could   be   dealt   with  standardized   products   and   services   with  offshore   teams.   The   diagram   given   below  provides  a  clear  indication  of  the  perspective  of  the  clients  while  making  a  decision  for  vendors.  

    High

    Level  ofComplexity

    LowProximity  to  Client High

    Legend:

    Perception  Chart  from  a  clients  point  of  view

    Preferred  Not  Preferred

    High  Complexity  -‐ Low  ProximityNot  a  good  area to  be  in,  clients  are  not  comfortable  to  deal  with  vendors  in  this  matrixThe  basic  perception   is  that  any  work  which  requires  great  level  of  interaction,  it  is  important  to  have  face  to  face  meetings  on  a  regular  basis

    Low  Complexity -‐ Low  Proximity-‐ Projects  that  are  standard  in  nature  and  simple  to  execute-‐ Cost  plays  a  major  role  in  deciding  a  vendor   for  such  projects

    High  Complexity -‐ High  Proximity-‐ Projects  that  are  very  important  andhave  level  of  complexity-‐ Cost  is  not  a  prominent  factor  while  making  decisions  on  a  vendor-‐ A  company  with  a  local  office  and  a  team  is  preferred

    Low  Complexity -‐ HighProximityIn  such  a  scenario  most  often  than  not  the  projects  are  awarded  to  offshore  vendors  with  lower  costs.  Again  it  is  not  a  good  matrix  to  be  in  for  a  vendor  as  he  is  not  cost  effective  due  to  high  cost  of  having  office  in  Singapore

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      As   shown   above   the   cost   holds   less  importance  if  the  level  of  interaction  required  is  higher.   In   such   a   scenario   the   proximity  becomes  more  vital.  For  example  a  vendor  with  a  team  in  Singapore  will  have  a  higher  chance  of  securing   a   contract/business   rather   than   a  vendor  in  India,  even  though  the  costs  might  be  higher.  It  is  important  to  understand  the  kind  of  business   a   vendor   is   targeting.   If   a   vendor   is  looking  for  a  high  margin  business  than  he  must  target   to   establish   himself   in   the   complex  customized   business   space.   Whereas,   if   the  vendor   is   looking   for   higher   volumes   then  standardized  products  make  more  sense.    

    5.2  Demand  of  the  Singapore  eLearning  clients       The   above   ERRC   grid   has   been   created  based   on   the   demands   of   the   Singapore  eLearning  market  which  are  described  below:  

    1. Demand  for  Non  Flash  High  Resolution  In   Singapore   where   tablets   and   smart  phones   will   take   precedence   over  personal   computers   or   laptops  (smartphone   penetration   –   80%)   and  most   of   the   communication   and   usage  will   shift   to   these   two   devices.   For  ELearning   companies   to   enter   the  

    eLearning   business,   it   is   essential   to  realize   that   the   tablet  will   play   a  much  bigger  role  and  hence  it   is  important  to  understand   the   technological   shift   the  tablet   brings.   One   thing   that   has  become   a   need   for   the   whole  Singaporean   eLearning   industry   is   the  requirement   for   tablet   compatible  learning  software.     The   biggest  problem  with   this   kind   of   requirement  is   to   develop   the   software   without  using  flash  and  reverting  to  xhtml  based  eLearning   platforms.   Hence   we   have  raised   the  Mobile  Learning   in   the  ERRC  grid.   This   is   also   one   of   the  requirements   of   the   intensive   users  cluster   obtained   in   our   quantitative  analysis.   This   shift   along   with   the  positioning   for   ELearning   companies   is  shown  in  the  figure  below.  

    2. Demand   for   Simpler   and   Relevant  Content  The   latest   need   of   the   eLearning  industry   is   to   have   short,   crisp   and   to  the   point   content   and   courses.   This   is  the   need   of   the   cluster   of   moderate  users   and   as   shown   in   the   figure  

    Early  2000's  -‐  Monologue  Content  -‐  Here  the  content  was  long  and  flash  based  mainly  on  PC's  (Windows  based  plaqorm)  

    Current  -‐  Conversaaonal  Content  -‐  The  content  needs  to  be  engaging  and  short.  The  content  is  on  Windows  based  plaqorm  

    Future  -‐  Paracipaave  Content  -‐  The  content  will  take  inputs  from  content  user.  It  will  be  based  on  muliple  plaqorms  like  Android,  Apple  and  Windows  

  • eLearning    in  Singapore   20    

         

    ELearning   companies   needs   to   provide  simpler   and   shorter   content.   Hence   in  the   ERRC   grid   we   have   reduced   the  Content   feature.   This   is   to   reduce   the  flash,   duration   of   the   course   and  animation  effects  of  the  content  and  to  increase  the  simplicity  of  the  content.  

    3. Demand   for   Collaborative   e-‐   Learning  platforms  Both   from   our   qualitative   and  quantitative   analysis   we   found   that  there   is   a   demand   for   collaboration  among   employees   or   students   through  eLearning   based   training.   So   far   what  we   have   seen   is   a   majority   of   the  eLearning  players  both   local  and  global  pay  emphasis  on  the  technology  i.e  the  “e”  aspect  of  e—Learning  and  lesser  on  the   learning   part.   If   ELearning  companies   has   to   differentiate   itself  from   other   players   in   the   Singapore  

    eLearning   industry   it   is   important   that  ELearning   companies   should   position  itself   in   the   quadrant   as   shown   below  providing   more   collaboration   and  interaction   for   its   users.   This  will  meet  

    the  requirements  of  the  two  clusters  of  Intensive  and  Non  Users.    

    4. Demand  for  Learning  Consulting     The   learning   consulting   plays   a  vital   role   in   determining   the   training  and   learning   requirements   of   an  organization.   In   this   case,   ELearning  companies   can   leverage   its   several  years   of   experience.   Although   it   is   an  important   factor,  we  have   reduced   the  level  of  Learning  Consulting  in  the  ERRC  grid  as  ELearning  companies  could  focus  on  one  aspect  of  the  entire  learning  and  training   process   which   is   the  reinforcement   stage.   ELearning  companies   already   have   the   required  expertise  to  target  all  the  other  phases.    

    5. Creating  Cloud  Offering     With  cloud  computing,  it  seems  that   a   lot   of   smaller   organizations   will  be  able  to  have  access  to  higher  storage  space   and   they   might   look   at   content  based   products   in   a   different   way.  Server   space   storage   which   is   an   issue  for  many  small  organizations  since  it  is  a  part   of   Capital   Expenditure   becomes  less   of   a   problem   once   organizations  start   shifting   to   cloud   based   server  services   since   it   becomes   an  Operational  Expense.  In  such  a  scenario  a   lot   of   new   small   businesses   are  expected   to   look   at   eLearning   services.  Therefore   we   can   expect   a   first   time  entrants  in  this  space.                  

  • 5.3  Recommendations     As  explained  earlier  there  are  two  types  of   eLearning   projects   –   High   Complexity   and  Low   Complexity.  Both   the   projects  will   have   a  different  business  approach.  As  it  can  be  seen  in  the   figure   given   below   for   High   Complexity  project  the  two  most  important  factors  that  will  come   into   play   are   Collaboration   and  Availability.  The  Low  Complexity  project  will  be  governed   by   two   major   factors   of   Time   and  Cost.  

    5.3.1  High  Complexity  eLearning  Projects     These  are  essentially  the  projects  which  require   rigorous  meetings   from  both   ends;   the  vendor  as  well  as   the  client.   In   such  a   scenario  the   vendor   would   prefer   someone   who   could  meet  him  frequently  and  more   importantly  the  vendor  should  be  available  for  urgent  meetings.  The  highly   complex   jobs   can  be  defined  by   the  number   of   people   it   is   going   to   affect   in   the  clients  organization  (in  a  percentage  form)  or  by  the   level  of   customization   involved.  As  per  our  discussion  with   a   few   clients,   all   of   them  were  unanimous   in  pointing  out  that   if   the  project   is  

    complex   then   a   local   vendor   is   preferred.  Therefore  if  the  target  is  large  projects  than  it  is  advisable   to   have   a   local   presence   of   a   small  team   of   designers,   sales   staff   as   well   as   a  technical  team.      

    5.3.1.1  Business  Approach  for  High  Complexity  eLearning  Projects     For   complex   projects   it   is   important   to  approach  this  business  on  capability  rather  than  on  cost  differential.  Clients  are  generally  looking  for  vendors  which  will  be  able  to  meet  them  on  regular  basis.  One  might   argue   that  with   video  conferencing   and   telephone   staying   connected  is   easy   and   the   proximity   can   be   maintained.  However,   physical   meeting   means   a   better  grasp   on   the   problem   given   at   hand   and   with  the   time   difference   coming   into   picture  between   two   geographies   handling   emergency  calls  or  needs  of  the  client  becomes  difficult   to  handle  from  an  overseas  location.  The  complex  one   is   dominated   by   local   vendors   or   by  companies  which  have  a  local  presence.      

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    5.3.1.2  Three  Years  Plans  for  High  Complexity  eLearning  Projects     Year   1:   During   the   first   year   it   is  important   to  not   take  up  projects  which  might  seem  do-‐able  but  are  not  part  of   the  objective  as   it   might   create   a   confusing   identity.   The  company  must  focus  on  the  BFSI  sector  only  to  build  better  understanding  of  a  particular  sector  and   at   the   same   time   they   might   be   able   to  service  that  sector  better  than  the  competition.  

      Year   2:   Once   ELearning   companies   is  through   the   understanding   of   the   BFSI   sector  better   it  can   look  at  small  scale  businesses  and  at  the  same  time  bring  in  its  consulting  services.  Therefore   this   year   the   focus   must   be   on   the  existing   BFSI   sector   and   the   small   scale  businesses.  

      Year   3:   ELearning   companies   can   low  look   to   expand   to   other   lucrative   sector   like  Defense   or   it   can   look   to   become   a   dedicated  BFSI   player.   The   industry   is   too   dynamic   to  predict  what  exactly  might  happen.  But  with  the  current  technological  advances  and  the  multiple  platforms   there   will   be   increased   workload   in  every  sector.  

    Pricing   Strategy:   For   High   Complexity   Projects,  ELearning  companies  must  follow  a  value  based  pricing   approach.   The   focus   must   be   on  providing  support  to  the  client  even  post  sales.  The   pricing   must   take   into   account   the   extra  services   that   ELearning   companies   will   be  providing   apart   from   the   core   product/  offerings.   Pricing   projects   for   clients   in   this  space  will  be  a  challenge.    

     

     

      In   order   to   price   the   products   in   an  appropriate   manner   it   will   be   important   to  understand   the   relative   importance   of   various  attributes  in  a  project  to  a  client.  It  is  important  give   the  weightage   to  every  attribute  and   then  accordingly   price   the   product.   The   pricing  strategy  is  not  so  much  on  the  product  but  it  is  on  the  service  revolved  around  the  product.  

    5.3.2  Low  Complexity  eLearning  Project     These  are  essentially  projects  which  are  standardized   in   nature.   These   are   not   a   core  part   of   the   business   for   the   client.   A   good  example   would   be   legal   regulations   which   are  mandatory   for   the   employees   to   know.   Such  things   although   important   are   not   part   of   the  core   learning’s   that   the   organizations   want   a  person   to   know.   Most   of   these   courses   are  general   and   can   be   provided   to   clients   after  minor  modifications.    

    5.3.2.1  Business  Approach  for  Low  Complexity  eLearning  Projects     For   Low   Complexity   Projects   it   is  important   for   ELearning   companies   to  understand   that   price   becomes   a   defining  factor.    The  few  things  that  go  with  price  are  the  speed   at   which   the   content   can   be   completed  by   the   vendor   for   the   client.   Therefore   speed  and  price  play  a  very  important  role.  

    5.3.2.2  Three  Years  Plan  for  Low  Complexity  eLearning  Projects  Year   1:   Focus   on   taking   up   compliance   based  projects   for  the  BFSI  Sector.    These  compliance  based   projects   are   applicable   to   the   whole  industry  and  hence  with  a   little   tweaking  these  projects   might   be   applicable   to   different  companies.    

     

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    Year   2:   Focus   on   the   BFSI   sector.   Focus   on  selling   the   off   the   shelf   compliance   based  projects   to   the   small   Singapore   finance   related  organizations.    

    Year   3:   Once   the   company   has   built   a   strong  hold   in   the   BFSI   sector   understanding,  ELearning  companies  can  look  forward  to  other  sectors.   But   they   must   continue   to   focus   on  compliance   related   projects.   Ideally   they   must  look   at   sectors  which   are   governed   by   a   lot   of  legal  laws.    

    Pricing   Strategy:   Due   to   the   general   nature   of  the  projects,  pricing  will  become  a  basis  of   the  marketing  communication  to  get  clients.  Hence  they   must   keep   the   operations   based   out   of  India  and  keep  the  costs  low.  They  must  look  at  cost  plus  pricing.      

     

      Let  us  consider  the  pricing  option  given  above  for  Low  Complex  approach.  Based  on  our  analysis   of   various  pricing  models   a   calculation  has  been  shown  in  table  given  above.  

    Assumptions:  

    1. We  have  assumed  the  costs  of  a  project  based  on  our  secondary  analysis  

    2. We  have  assumed  that  the  payback  period  for  a  certain   development   project  will   be   on   a   3-‐year  period  

      It   is   also   important   to   factor   in   the  competitor   pricing.   Volume   will   play   an  important   role   to   recover   cost   and   make   a  surplus.   Therefore   it   is   critical   to   decide  which  product   developments   to   do.   The   products  developed  must  be  applicable  to  the  industry  at  large  so  that  the  product  can  be  appropriate  for  other  companies  with  a  little  tweaking.  

      ELearning  companies  could  either  go  for  the  High  Complexity  Projects  or  Low  Projects  as  per  the  strategy  mentioned.  However  we  would  recommend   ELearning   companies   to  concentrate   on   the   Low   complexity   project  during  the  first  year  and  then  venture  into  high  complexity  project.  

    5.4   Marketing   in   a   complex   Singapore  Environment  -‐  A  challenge     For  an  entry  strategy  to  be  successful,  it  is   important   to   first   increase   awareness   about  the  company.  In  Singapore,  it  is  difficult  to  meet  with   the   clients   directly.   Therefore   ELearning  companies   must   look   to   participate   in  Conferences   and   Industry   meets   to   build  relationships  in  Singapore.  ELearning  companies  must   try   and   have   presence   in   HR   conclaves,  BFSI   related   conferences   to   start   engaging   in  talks   and   show   its   presence.   ELearning  companies   can   participate   in   various   road  shows   and   national   level   exhibitions   to   show  their   offerings   to   the   industry   users.   ELearning  companies   can   also   tie   up   with   various  Singapore  based   institutes   like   SHRI   (Singapore  Human   Resources   Institute)   and   STADA  (Singapore   Training   and   Development  Association).   This   will   provide   ELearning  companies  with  a   strong  hold  of   the  Singapore  eLearning  industry.  

     

     

    Cost  Plus  Pricing  (in  SGD)  Projected  clients  for  a  single  product   10  

    Cost  of  one  time  development   100000  

    Salesman  cost/year   80000  No.  of  projects/year/salesman   24  

    Dist  of  Dev.Cost/  Year   33333  Dist.  Salesmen  Cost/Project   3333  

    Total  Cost  Per  Project   6667  

    Gross  Margin   60%  Asking  price  per  project   10667  

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    5.5  Metrics  to  Measure  and  Monitor  In  order  to  evaluate  the  company  performance  in   Singapore,   ELearning   companies   must   track  the  following  ratios  on  a  regular  basis:  

    Finance  

    Payback:   ELearning   companies   must   decide   as  to  what  kind  of   investment   they  want   to  make  as  well  as  keep  an  eye  on  the  pay  back  and  the  company’s  progress   in  terms  of  the  percentage  of  return.  Therefore  keeping  a  track  of  this  ratio  is  very  important.  

    ROMI:   Return   on   Marketing   Activity   becomes  very   important   to   track   because   cost   can   run  out   of   hand   especially   in   a   capital   exhaustive  market   like   Singapore.   This   will   help   the  company  keep  a  check  on  its  expenditure  to  get  business.   ELearning   companies   must   fix   a  certain   percentage   of   the   total   revenue   as   a  marketing  budget  which  should  be  then  divided  on  the  number  of  expected  projects  in  a  year.  

    Customers  

    CLV  (Customer  Lifetime  Value):  It  is  very  vital  to  understand   the   Customer   Lifetime   Value.   This  will   help   ELearning   companies   segregate   from  the  well  paying  clients   to   the  one   that  are   loss  making.   This   can   help   ELearning   companies  direct   their   energy   and   efforts   in   the   right  direction  

    Sales   Force   Effectiveness:   In   order   to  understand   the   return   on   investment   in  Singapore   it   is   critical   that   the   deployed   sales  employees   are   tracked   in   a   circular   manner.  They   must   not   be   tracked   on   the   basis   of  getting   new   clients   but   also   on   maintaining  relationships   with   the   current   customers.  ELearning  companies  must  also  keep  a   track  of  the   revenue   each   new   client’s   brigs   versus   the  

    cost   it   incurs.   These   revenues  must   be   pegged  to   the   relevant   Sales   executive   to   understand  his  effectiveness.  

    Internal  Processes  

    Request  Fulfillment  Time:  In  order  to  gauge  the  time   taken   to   complete   the   tweaking   every  client   demands   in   the   already   developed  products,   this   is   very   useful   tool.   This  will   also  help  ELearning  companies  understand  the  time  an  order  will  take  and  it  can  accordingly  inform  its  client.    

    Cost   of   Reworked   Order:   This   will   help  understand   the   cost   involved   every   time   a  project   is   reworked.   Also   this   will   help  understand  what  kind  of   reworks   cost  more  or  less.   In   this  manner   it   can   segregate   the   costs  and  also  know  how  to  price  the  product.  

    Learning  and  Development  

    Employee   Satisfaction   Survey:   ELearning  companies   must   continuously   understand  whether   its   employees   are   satisfied   since  employees   are   its   biggest   strength.   This   will  help  keep  the  company  aligned  with  its  people.  

  • 6.  References  

    AmbientInsight.  (2011,  May  20).  International  eLearning  Market  Research.  Retrieved  September  2,  2012,  from  http://www.ambientinsight.com:  http://www.ambientinsight.com/Reports/eLearning.aspx#section2  

    Chew,  L.  K.  (2008).  Connecting,  learning  and  collaborating  globally  —  the  Singapore  scenarios.  Singapore:  education.au  limited.  

    contactsingapore.  (2012,  May  20).  financial  services.  Retrieved  September  1,  2012,  from  http://contactsingapore.sg:  http://contactsingapore.sg/industries/financial_services/  

    contactsingapore.  (2012,  May  20).  financial  services.  Retrieved  September  1,  2012,  from  http://contactsingapore.sg:  http://contactsingapore.sg/industries/financial_services/  

    DataMonitor.  (2011).  COUNTRY  ANALYSIS  REPORT.  20-‐30.  

    DBS.  (2010,  September  27).  Press  Release.  Retrieved  September  8,  2012,  from  http://www.dbs.com:  http://www.dbs.com/newsroom/Pages/default.aspx  

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