Market Growth of LXP – Preordained to Rule Corporate Learning
In one of his recent articles, Josh Bersin had said that LXP is growing so fast that it is too big to ignore. Presently, the Learning Experience Platform is covering a small piece of global corporate training revenue i.e. $200 million to $250 million as compared to the $5 billion which has been invested in Learning Management System. Even if the eLearning software market’s expenditure is more, it is still growing slowly at an annual rate of 3-4%. On the other hand, LXP’s revenue is predicted to grow at an exponential rate of 150-200%, primarily due to product turnovers, ever-growing employee demands, and the evolving digital technologies.
Factors behind the growth of LXP
There are several factors that add fuel to the market growth of LXP – one of the first being learner demand. Professionals, especially the tech-savvy millennials now have a myriad of options available online for learning — most of which likely are accessed outside of their companies’ formal eLearning offerings. Whenever the employees are stuck at something, they quickly turn to Google or YouTube to obtain knowledge on their concerning topics. With a pool of information available online, the learners rather find it convenient over online courses to get to the most relevant content necessary for their knowledge gain. Today’s learners are looking for personalized learning experiences with recommendations based on their preferences, job roles and existing skill sets which warrant refinement. Besides, all this information should be mobile-ready, so that they can access anywhere and anytime as per their convenience.
Another major factor behind the rapidly expanding LXP market is the demography of the workforce population. While there are around 500 million professionals doing full-time jobs, there are nearly a billion gig workforce across the globe who are working part-time, contract-basis, and freelancing.
About 36% of US workers are now involved in the gig economy. ~Gallup
Whether full-time or gig workers, at some point in time all of them require learning to hone their know-how and skills, whether it be for on-boarding, compliance training or learning to use the tools/applications necessary for their roles. So if we consider the potential recurring money required to deliver training to all these professionals, it can easily scale up to become a multibillion-dollar market in itself.
The last but not the least factor is the overall ineffectiveness of the traditional LMS – which was once viewed as the center stage of the corporate learning industry. While every eLearning software available in the market vary in their user interfaces, the Learning Management Systems are primarily designed to carry out administrative functions including documenting compliance, managing workflow, monitoring training cost allocation, and tracking registrations and course completions to name a few. However, generally, managers are only using LMSes to occasionally launch training courses. Besides, most of the Learning Management Systems available in the market are expensive and a challenge to administer. However, with the case of LXP, these eLearning systems are rapidly viewed as part of the corporate resource planning ecosystem for the entire organization with IT and HR being their primary users.
Even if the LXP market is still in its nascent stage, it will continue to evolve and most likely disrupt the corporate learning industry. With the onset of the microlearning, more courses can now be easily authored by experts and accessed by employees. Organizations can now expect Learning Experience Platform to deliver content straight to work platforms such as Salesforce.com, Microsoft Teams, Slack, and Google G-Suite.
Today, IBM Watson can deliver learning through conversations, and several vendors, such as Filtered and Buttlerfly.ai, specialize in connecting employees with experts to help them learn what they need to know. Skillsoft’s Percipio has a feature called ELSA, the Embedded Learning Synchronized Assistant, that recommends content based on an employee’s web activity, and Degreed offers integrations with Slack.
LXP, the Next-Generation Learning Environment imparts various significant features, but the ones that are gaining more popularity in the corporate training industry include the following:
- Netflix-like user experience design
- AI-based recommendations for eLearning courses
- Gamification with points and badges and certifications
- Bite-sized (microlearning) course structure
- Predictive analytics to gain meaningful insight into employee learning behavior
- Integrations with applications, file-sharing systems, and document creation platforms
Realizing the potential of the Learning Experience Platform, most of the eLearning solution providers have started adopting the LXP-like features such as the Netlfix-like engaging user experience, AI-based search functionality, personalized bite-sized learning experience etc. Most of the traditional LMS systems, that were restricted to the desktop-only approach, have now taken a paradigm shift and can be accessed from different platforms other than desktops.