venture-lab.org frames evaluating value propositions in terms of Hypothesis, Experiments, Results, and New Hypothesis (ie, how have the results impacted the originally hypothesized value proposition). Here is our progress, with the “Corporate” customer segment.
A specialized Search tool with customized filters for corporate training and development departments that are interested in reducing their training costs by delivering filtered FREE courses that are developed from reputable sources. A browser based learning management system would deliver tracking information to the existing corporate LMS system. Company pays a fee for use of Search/LMS.
We conducted personal interviews, and leveraged accumulated industry knowledge already contained within select team members.
- Corporate “learning management systems” (LMS) is a saturated market – lots of competition.
- Corporations are resistant to changing LMS once a particular system has been adopted, due to associated costs. High barriers to entry into market.
- LMS include tracking for compliance requirements depending on career track and training classes provided by select vendors. Also contain proprietary training specific to the company. This is not part of our business model.
- Corporate learning is a dynamic changing and competitive marketplace. A low cost advanced search tool delivering Ivy league or equivalent quality FREE learning content would be of interest as long as proper controls and filters were in place. It would also need to replace/lower current spend, improve or deliver new content that fits new risk area.
- Current LMS tools house content, track learners progress, measure performance and much more. Our LMS would simply feed into these advance learning management systems.
- Budgets for learning and development are tight. Courseware packages and LMS systems are expensive. The interviewed company spends $60,000 per year on their courseware library and LMS. This provides use of the library, updates and use of the SAAS tool. They are also using a talent management system that will eventually replace the LMS.
- Courseware tends to be sold into organizations either as a replacement of existing courses because of higher quality and or lower price. Also by identifying a new area of risk that demands staff training. There is a trend of organizations moving to talent management systems.
- Nothing has value in the corporate world unless it has an attached accreditation or certificate.
The smart filtered search and lean LMS tool would need to either be able to replace more costly courseware libraries, provide higher quality courses or add new classes that fit a identifiable area of need and risk to the organization. It would need to interact with existing LMS and talent management systems, as implementing “the next best LMS” is not in our business model; we want to simply leverage the online search content which results in substantial cost savings. Delivering Ivy League level classes to a talent management system might be of interest to higher ups grooming successors and management pools.
We will also need to establish a certificate program to provide the most value for corporate customers.
Featured image source: http://www.redmadllp.com/Images/CorporateTraining.jpg