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Mircea Georgescu
Universitatea Alexandru Ioan Cuza
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ABSTRACT
JEL Classifications: D83, I20, I21, I28, I29, I31, J24, M14, M54
1. Introduction
E-learning becomes more and more important. Reasons are the paramount
importance of knowledge, life-time learning, globalization and mobility. Having a great e-
learning strategy and great programs is just no guarantee of success. Without a clear and well
thought out implementation strategy and plan, the e-learning efforts will most likely fall far
short of the goals, learners’ needs, and management expectations.
According to several forecasts given by Gartner Group or International Data
Corporation for example, E-Learning as a new buzzword for web-based education and its
commercialization seems to be a growing market in the digital economy. For this reason it`s
important to analyze this new and dynamic E-Learning market and the corresponding
changes on the education market.
Many authors agree that E-learning can be defined as instructional content or
learning experiences delivered or enabled by electronic technology (Commission on
Technology and Adult Learning; 2001:7). Functionally, e-learning can include a wide variety
of learning strategies and technologies, from CD-ROMs and computerbased instruction to
videoconferencing, satellite-delivered learning and virtual educational networks. In other
words, it is not just Web-based instruction or distance learning but includes many ways in
which individuals exchange information and gain knowledge.
Other authors define E-learning as E-learning provides the potential to provide the
right information to the right people at the right times and places using the right medium.
Tom Kelly, Cisco apreciate: “E-learning is about information, communication, education and
training. Regardless of how trainers categorize training and education, the learner only wants
the skills and knowledge to do a better job or to answer the next question from a customer.”
In conclusion what we must remember when we use the term E-Learning? E-
learning uses information and communications technologies (ICTs) to deliver content
(learning, knowledge and skills) on a one-way or two-way basis (The Conference Board of
Canada; 2001:17):
• One-way (asynchronous) technologies: technologies that deliver content
(learning, knowledge and skills) one way at one point in time. They include:
• Broadcast television that delivers learning content;
• Computers;
• CD-ROMs;
• Audiovisual aids;
• E-mail;
• Film;
• Internet/Intranet/Extranet networks;
• Video;
• Wireless technologies;
• Digital video disk (DVD).
• Two-way (synchronous) technologies: technologies that deliver content
(learning, knowledge and skills) two ways or more at the same time. They
include:
• ICQ/IRC—interactive conferencing and chat rooms;
• Teleconferencing;
• Internet/intranet networks;
• Web conferencing;
• Wireless technologies.
E-learning can be viewed as a mean of delivering three key outcomes: improved and
consistent rates of lifelong learning, improved productivity and improved innovation and
competitiveness. Another desired outcome is increased equity. The globalization of
education is increasing rapidly: students attend courses from all over the world, employees
work and study globally in multinational companies. Education around the world is
becoming strongly networked, and we are beginning to see fundamental changes taking
place in the organization of education. We no longer have geographical isolation at the
college and university level. The long-term implications are a worldwide network and a real
marketplace for university and college level education. Education might become a major
export factor between countries. The competition between universities is increasing more
and more and universities are under pressure to find "new strategies and business models" to
produce and deliver educational products.
Similarly, company training is influenced by the dramatic changes as well. The
business environment is going through a dramatic transformation due to the increased
complexity, and uncertainty of the radical changes in information technology, globalization,
changing customer demands (and customer knowledge), increased expectations for social
responsibility, and other changes that are placing new stresses on the organization and its
people. Multinational companies already train their employees via online learning networks
globally. E-Learning as a new buzzword for web-based education and its commercialization
(e. g., business strategies, technologies, applications, etc.) is a growing market. Companies
are spending more than ever on training to respond to a growing need for new information
and knowledge required to cope, manage, and drive the new-mega mergers, new business
models, re-engineered and reinvented organizational forms, and other changes of the
business environment.
Problems that characterize traditional international education, such as recognition of
qualifications, also apply to e-learning. But because the very nature of e-learning includes
distance and technological aspects, these issues may be more easily overcome. Learners
don’t have to go to school; instead, school comes to them.
2. Discussions
Due to their complexity, four types of e-learning applications are distinguished: drill
and practice applications, (intelligent) tutor systems, simulations and CSCL (computer
supported collaborative learning) applications. Applications are the core of an e-learning
system because they mediate standardized or individually configured e-learning content. The
basic components of an e-learning system which are essential for its functionality are called
the technical system.
E-learning has the potential to revolutionize the basic tenets of learning by making it
individual rather than institution-based, eliminating clock-hour measures in favor of
performance and outcome measures, and emphasizing customized learning solutions over
generic, one-size-fits-all instruction.
Depending on the technical realization computer based training (CBT) and web
based training (WBT) are distinguished (Hoppe, Breitner; 2003:4). Didactical options and
technological realization of WBT are usually more complex than those of CBT. E-learning
products applicable for mobile learning, i. e. for use with handheld devices like laptops or
personal digital assistants (PDA), are classified as mobile based training (MBT). Nowadays,
MBT is mostly a subgroup of CBT because the technical feasible is not fully exploited. But
the MBT sector becomes more and more important and complex. The technical system is
supplemented on the one hand by the manware, i.e. the people who use, administrate,
maintain and/or develop other components of the system. On the other hand it is
supplemented by the orgware, i. e. all organizational regulations and concepts concerning e-
learning and its management. Every part of an e-learning system which can be marketed
autonomously is called an e-learning product. E-learning products comprise on the one hand
hardware, software and content in terms of digital data, e. g. HTML or XML data. On the
other hand they comprise services in connection with hardware, software, content, manware
and/or orgware. E-learning products are offered by e-learning providers. The market for e-
learning providers is very intransparent due to the heterogeneity and the multitude of existing
providers.
According to the part of an e-learning system they offer, e-learning providers can be
divided into different segments (Hoppe, Breitner; 2003:6):
• Content providers offer predetermined e-learning content. Content is either
standardized, e. g. business english vocabulary, or individualized respectively
individualizable, e. g. company specific simulations;
• Application providers offer e-learning applications. Often they cooperate with
content providers; sometimes, applications are offered as free or shareware. This relates
mainly to academic providers.
• Hardware providers offer e-learning hardware. In most cases, hardware is not
elearning specific. Hardware providers therefore often supply non-e-learning segments.
Special e-learning hardware can be required due to special type of data, e. g. video or virtual
reality equipment.
• Service providers offer e-learning services. E-Learning services complement the
mediation of e-learning content by e-learning applications. E-learning services can directly
relate to learning processes (examples are the provision of information and communication
platforms or of tutorial assistance). E-learning services can also have a supporting function.
Examples for supporting services are hardware support (e. g. hosting services), software
support (e. g. administrative support), consulting services (e. g. legal, economical or didactic
consulting). Furthermore, supporting services can result in training, marketing, controlling,
evaluation or certification related activities.
• Full service providers offer all-in-one solutions which comprise products and
services in relation with the whole e-learning system.
An increasing number of companies are adopting e-Learning. But in their rush to
take advantage of e-Learning’s benefits and promises, companies are finding that there are
significant barriers to adoption.
To date, the performance and reputation of e-learning have not lived up to the lofty
expectations set by the early realization of the enormous potential benefits of this marriage
of learning and technology. While much of the user dissatisfaction can be traced to the poor
quality of content and support, most of the frustration has come as a direct result of the
inflexibility and unfriendliness of the underlying technical infrastructure.
Experience, based on hundreds of implementations, finds four key factors
contributing to this dissatisfaction (Sun Microsystems; 2003:10):
• The (non) Human Factor—Initially, e-learning was seen not from the student’s
standpoint,but from the administrator’s – an opportunity to cut costs by
automating the learning process, cutting out teachers and staff by going directly
to the learner, reducing inventories of books and libraries, and reducing
classroom and building requirements.
• Inherited Paradigms—Rather than using the dynamic and distributed nature of
the technology to re-engineer the learning process, the most common strategy
employed by educational institutions to date has been to replicate existing
classroom and course design practices.
• Piecemeal Solutions—In the absence of any consistent vision of what an e-
learning platform should be or do, the inherited paradigms also led to the
patching together of existing technologies and systems, such as email,
whiteboard and video streaming, to deliver the same kinds of functionalities seen
in the classroom. The user got left with multiple systems, each with their own
passwords, interfaces, and navigation, increasing their frustration.
• Proprietary Systems—Although characteristic of the early stages of many
technologybased markets, the proprietary approach to e-learning has left many
early program administrators to feel trapped by underperforming, overly
restrictive, or sole vendor systems that ate up millions of dollars and still did not
meet the needs of a majority of the institution’s user community.
But, the figures are very impressive (The Forum Corporation; 2003:1):
The percentage of companies providing access to e-Learning for all employees
is expected to more than double in 2 years;
The number of companies providing learning communities that have
collaboration technology is expected to grow 150 percent over the same time
period, from 21 percent to 51 percent;
More than 60 percent of companies expect to incorporate 10 of the 11
components of an e-Learning system within 2 years;
Technology infrastructure is one of only seven major barriers to the adoption of
e-Learning; other issues pose even more significant obstacles.
The researches indicates that companies are moving rapidly to meet the demand to
make learning more relevant to their business priorities, their employees, and their
customers. Table 2 examines the current and future adoption of 11 aspects of an e-Learning
system.
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Commission on Technology and Adult Learning; A Vision of E-Learning for
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http://www.wiwi.uni-hannover.de/Forschung/Diskussionspapiere/dp-287.pdf
Mason, J. From e-learning to e-knowledge, in Madanmohan Rao (ed.) Knowledge
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