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July 13, 1998

Web Training Catches On

Wider Net access is making Web-based training more affordable and convenient than conventional methods

By Bob Violino

eb-based training is growing rapidly, fueled by the increase in Internet and intranet access, advancements in Web technology, and an increasing demand for skills in everything from Web design to enterprise resource planning implementation.

Managers at Merrill Lynch, MCI, and other companies that use Web-based training say the programs offer significant benefits over traditional paper and classroom sessions and CD-ROMs. Online training also helps them save money, they say.

"There's cost-savings because we don't have to produce and ship as many materials, and there's quicker turnaround time for changes in courses," says DuGue Whitney Zion, national corporate trainer at MCI. The telecommunications company is training sales reps in its business markets group using Web-based courses from Interactive Media Corp., a company formed last year by Analysis & Technology Inc. The format lets MCI begin training reps on their first day with the company, rather than wait until the company ships materials to them.

"The end result is that we can bring reps up to speed faster and increase productivity," Zion says. MCI plans to offer online training to other employees, including those in IT.

Merrill Lynch is also benefitting from Web-based training. "It's a more convenient method of learning, especially for someone who has a busy schedule," says James Lawler, VP of training technologies at Merrill Lynch. "You can learn at your desktop in the office or at home, and you can navigate through various topics in the course and learn only what you need to learn. It's flexible."

Merrill Lynch is using a Web-based program from DigitalThink Inc. to train developers to use Internet tools and languages in a short period of time, Lawler says. Because Web-based training provides more up-to-date information than traditional training, he says, students can learn how to use the newest products or software versions.

An InformationWeek Research survey of 200 IT managers shows that most prefer traditional training methods. But observers predict strong growth in Web-based training as more companies develop intranets with training applications and senior executives realize cost savings over conventional classroom and paper methods.

"Many companies are placing a great deal of emphasis on Web-based training because they see it as a way to save money," says Brandon Hall, a consultant and publisher of Multimedia & Internet Training Newsletter and author of the book Web-Based Training: Market Trends, Risks, and Opportunities (Multimedia & Internet Training Newsletter, 1997). Hall says the Web-based training market is growing at more than 150% a year, and he expects it to be a $1.5 billion-a-year business by 2000. Hall attributes this growth to a number of factors, including the emergence of the intranet as a major training medium, and the greater emphasis on IT skills because of ERP projects and major migrations to new operating systems.

Big Savings
Among the major benefits of Web-based training, Hall says, are savings in dollars and in time. A study he conducted of eight companies last year showed an average 50% reduction in training time with Web-based training compared with conventional instruction. "Another big benefit is convenience," Hall says. "With Web-based training, you can take a course any time you want-day or night."

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