Collaborations in eLearning

We are witnessing a manifold increase in the number of elearning companies. So how can everyone compete in this place without driving the others down? Anyone who is a part of the elearning industry would be aware of the falling rates and subsequently, margins.

I completely agree that we cannot avoid competition nor is it advisable to avoid competition. But does that mean we cannot do anything about it? Not really, let me share a few thoughts on potential collaboration areas.

1. Poaching: People are the key strengths of any service company and eLearning companies are no exception. We cannot stop people from moving between companies. And rightly so, a person who is dissatisfied is entitled to move.

But we can ask ourselves a few questions when we recruit someone from the same community: Has the person switched more than three jobs in the past couple of years? If yes, does this indicate stability on the part of the person? Should we recruit him/her at all?

Another measure could be to insist that the person complete the notice period at the earlier company and thus provide adequate notice to them.

2. Strategic Partnerships: Another question to be asked is whether the number game is the only way to expand. While this can be ideal for large eLearning companies, it is not necessarily the best approach for medium sized companies. Instead it makes strategic sense to limit the team size and develop a vendor who can serve as an extension to the current company. Kern has such partnerships with a couple of eLearning companies.

Watertight NDAs and mutual benefits eliminate any potential conflicts of interest resulting from these strategic partnerships. After all, we are in the business of outsourcing.

3. Core competencies: The best way to maintain margins and grow the topline steadily is to focus on competencies. We all need differentiators to stay in business so constantly ask yourself: What is my differentiator?
Is your LMS different from the others: Highlight it, push it, market it. Is game based learning/simulations your cup of tea? Or may be you have a team with skills that the others do not possess?

Find out your differentiator today. Then ask yourself: Do I need to be everywhere? May not make sense, and we will automatically reduce our ‘man eat man’ approach.

4. Pricing: Be your own judge here; definitely don’t quote rates where you don’t recover your costs.

5. Community: Connect and talk to the others. Stay in touch. You cannot take up a project or it is not viable to do so, pass on the lead to some other company. Appreciate your team members who take the effort to stay connected with others in the eLearning community.

After all, life is short, business has to be fun, we all need to network, so why not talk?