Knowledgebase
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What are the Advantages of Using an ASP LMS?
Posted by Support on 22 January 2007 03:18 PM
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In the case of learning management, a key advantage of using an ASP is that they sometimes provide capabilities beyond just the software. LMS implementations typically involve a variety of technology and management skill sets that must be brought together for a successful project. ASPs manage all this for the customer. Services that are often provided (in addition to hardware, software, and IT staff) include the following: • LMS • LCMS • Content Development • Content Integration • Pre-integrated Courseware • Training Administration, Staff, and Subject Matter Experts (SME) • Technical Support • System Implementation Shorter Deployment Times Using an ASP instead will likely result in shorter implementations. This is the case for several reasons: (1) ASPs have systems already in place (e.g. hardware, software) that are available and ready for use so there is no lead time involved in procuring and installing all the required technology. In addition, the IT staffs are focused on rapid implementation since all of the customers are serviced from a centralized data facility. This reduces the need to schedule other resources to install and configure the system. Often training groups find that there are other organization-wide priorities that prevent their IT staff from giving their LMS project any attention. This situation is avoided by using an ASP. This is not to say that IT should not be involved in the process – indeed they should. But using an ASP will reduce the required workload from the IT department making them more open to participating in the project. (2) Customers tend to make fewer modifications when using an ASP for their LMS. These customers are typically intent on obtaining more rapid business value so they are focused on making only changes necessary to meet their business needs. This also results in shorter deployments since less customization of the system is required. In some situations, of course, more customizations are required. Some ASPs will support these extensive customizations better than other as we’ll discuss later. Lower Initial Costs Another advantage of using an ASP is that the system cost is priced more like a service rather than an outright purchase of all the component pieces. So the start-up costs will be lower. As we’ll discuss later, the total cost of ownership over time may be higher or lower, but certainly the start-up costs will be reduced with an ASP. Depending on the amount of customizations made to the system, initial costs are likely to be 50-70% lower than with a traditional software model. ASPs have infrastructure investments in hardware, software, pre-integrated content, and streamlined business processes to enable them to lower the cost of entry for the customer. Improved Execution & Focus According to the World Outsourcing Summit survey, 17% view outsourcing as a way to further focus on their core business. LMS systems require a large amount of “care and feeding†– system maintenance, catalog maintenance, content integration, report writing, and much more. The implementation and operations of an LMS may not be strategic to an organization. Outsourcing this capability will enable the training group to focus on the actual training initiatives that have more significant business impact. While the LMS may be used as a tool to facilitate these programs, the operation of the system need not be managed by internal staff. ASPs for learning management are now beginning to offer a range of services that further enable training groups to focus on more strategic efforts. Supporting an LMS involves administrative, help desk, and technology staffing that can put strains on the budgets and management resources of training departments – especially smaller training groups found in departments that have limited resource but lofty responsibilities. In fact, many buyers choose ASPs for the LMS simply because they can “do more with less.†Reduced Project Risk LMSs, like any IT project, are subject to risk. The risk may encompass complete failure (e.g. the system is never operational), project delays, or perhaps a lack of business value over time. While using an ASP does not eliminate risk, it can help buyers reduce it. Since the up-front costs of using an ASP are lower, buyers can justify a smaller expenditure to validate that the system will work for their particular training challenge. Using an ASP also involves fewer vendors – in most cases just one. Reducing the number of vendors in a project requires less project management and can increase the chances of a successful outcome because it has fewer “moving parts.†Easier Access to New Technology In addition to managing all the other aspects of LMS deployments, ASPs will also handle the technology upgrades that can increase the total cost of ownership. Added features and updates can generally be handled by the ASP. Availability of Resources In recent years, as companies have scaled back their fixed costs, many buyers choose to employ an ASP because they have limited resources. Training managers in small to medium sized organizations or departments of larger companies may not have access to the ongoing resources (e.g. IT, administrative, help desk staff) that are required to keep an LMS up and running. These organizations are in the best position to leverage an ASP. | |
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