Oracle acquired the cloud-based talent management solutions provider Taleo for $1.9B including cash and debt. Earlier in December, SAP acquired SuccessFactors for #3.4Bn. Not long ago, Taleo purchased Learn.com – a Learning Management System (LMS) & SuccessFactors purchased Plateau Learning & Performance. In another acquisition, Kenexa purchased OutStart which consolidated the LCMS market itself by purchasing its competitor ForceTen. Saba and SumTotal Systems are the last legacies standing with a few acquisitions themselves.
While everyone is excited about the Cloud Computing and its impact on a customers’ total cost of ownership, and how the market is being redefined – it is indeed a grim moment for Corporate Learning. These acquisitions are going to push the much needed innovation to the corporate learning technology behind by a few years. This blog offers insights on impact of these recent acquisitions on corporate learning innovations.
Integrations are not going to be easy
History has it that when ThinQ was purchased by Saba, a suite of LMS’ were purchased by SumTotal, most of the clients either ended up replacing their systems or going with somebody else. The intentions of these historic acquisitions were to acquire customers. With the latest acquisitions, the big ERP vendors are putting skin in the talent management game, but the integrations are not going to be easy.
SuccessFactors’ integration challenges stem from bringing together their powerful Social Media Platform CubeTree, Learning Platform Plateau, and other talent management systems in the overall suite. In addition, converting those customers who have already made their investments with an in-house infrastructure to cloud & SAAS based environment, sunsetting now duplicate capabilities with Plateau’s performance suite, setting the overall strategy, rationalizing the functionality, and iterating the next version of cloud -based platform is going to take a few years. SAP with its legacy architecture and changing landscape is facing different market pressures. All of this going to challenge the innovation quotient in these systems.
Taleo is stringed together with talent acquisition system and Learn.com platform. In my opinion this was a marriage of lackluster systems to begin with. Taleo and Learn.com’s acquisition is still finding its maturity and that is if Taleo already started integrating these products. Oracle is struggling with increased competitions from a contemporary WorkDay platform on the HR side, SalesForces’s growth on the CRM side, and the constant competition with SAP on the ERP side. It already purchased JDEdwards/PeopleSoft platform and still hasn’t made the mark with its long-promised fusion platform. In addition, the marketplace demands in every domain where Oracle operates is constantly changing.
So where is the time to innovate?
Corporate Learning challenges are archaic and continuously emerging
Corporate Learning has its own set of archaic and continuously emerging challenges. The following is an illustrative list of challenges and there may be more depending on the organizational maturity.
Corporate Learning functions still struggle with designing and developing courses that grant credit 99% of time. Almost two decades later, the grasp and comprehension of AICC/SCORM, its support in LMS’ varies drastically leaving a rather broken infrastructure. Learning operations, analytics, reporting, and business-driven learning is demanding. The overall learning technology landscape ranging from learning content authoring tools to the more complex virtual collaboration suites such as WebEx and Centra are still far from mature implementations. Companies still have the challenge of running effective learning operations and the constant battle to reduce costs and outsource activities. Learning function is one of the first few to be cut and also the first to be blamed for a lot of different fiascos. All of these are archaic challenges.
On the extreme end of these archaic challenges are emergence of mobile and tablets as a formidable force, multiple delivery methods such as eBooks, Videos, Podcasts, demise of Adobe Flash and emergence of HTML5/CSS3, convergence of learning and knowledge management, blurred definition and high aspiration of social learning, changing IT landscape with increased adoption of Macintosh for corporate use, and the expansion of “tags” used to deploy formal learning to employees to name a few. Most recently, the acquisition spree and the resulting outcomes.
Innovations and solutions are needed now. There is no time for acquisitions to mature.
Finally
It’s not all bad. For long, LMS vendors have done disservice to the very function that fostered their growth. Closed architectures, inability and unwillingness to open the architecture even in today’s age of App Exchanges, lack of investment in R&D, and half-hearted investment to mobile and social have all hurt the innovations. These acquisitions may just change that in a few years. However, in a few years there may be a different need for innovations or a complete overhaul of the platforms. Time will define the evolution…
Dudes, it's not about the technology.