E-learning Curve Blog at Edublogs

I’ll start this post by issuing a mixed metaphor alert: today, we’re going to talk about an elephant in the room, which also happens to be an 800lb gorilla.

Intrigued? Now read on…

Back in February this year, I wrote the first of my occasional series on Recession and the challenge to e-learning; in that first piece, I concluded by suggesting that

in the era of $100 a barrel oil and the value of virtual classrooms; the ROI of e-learning as opposed to traditional methods; even the impact of traditional ways of teaching on the environment (”e-learning” becomes “eco-learning” anyone?).

Based on an announcement made last Thursday 10th September 2008, I can now assert that we are beginning to see that there is validity in this conclusion. Based on the level of investment one e-learning enterprise has committed to developing the industry in the medium- to long term, the market in now in a place to support the proposition that the ROI on e-learning makes sense, and generates profit.

E-learning giant Houghton Mifflin Harcourt (HMH) – formerly known as Riverdeep – is to create 450 jobs at a new R&D headquarters in Dublin. Riverdeep had its origins in Dublin in 1995 and under the leadership of Barry O’Callaghan became a global name in the e-learning K-12 market space. As an educational publisher, HMH has over 100,000 customers, generating approximately US$2.5bn in annual revenues, profits in the region of US$1bn, and 50 per cent market share of the US K-12 market, the world’s largest education market.

HMH is to establish its global e-learning R&D centre in the greater Dublin area, creating 450 “high-value” jobs over the next five years.

Fiona O’Carroll, senior vice-president, Digital Products R&D at HMH confirmed the Irish Government’s vision to create a knowledge economy by investing in people, research and innovation was a key factor in the company’s decision.

The new R&D centre will be a focal point for e-learning and educational innovation. Employees, partner companies and collaborating universities will be attracted by the quality of research, people, innovation and commercialisation activity in the centre.

The Centre will involve establishing a globally networked team in Ireland with team members and innovation partners based in the US and around the globe. The company said these jobs should be very attractive to seasoned technology professionals, engineering and technology graduates, highly creative thinkers and innovators in the e-learning space.

As I’ve said in the past, Ireland has a vibrant technology and knowledge-based industrial economy, and one of the domains we excel in, is in e-learning – I guess most people in the industry have heard of SmartForce and Electric Paper, for example. These large companies notwithstanding, there are over fifty ‘other’ e-learning development houses in the country. Not bad for a country with a population of under 5 million people.

In my view, this investment will prove to be a game-changer. As it is, you could say that HMH are the only game in (e-learning) town – if they manage the innovations and outputs afforded by this R&D centre correctly, HMH will grow to become the Google of e-learning. Indeed, the Google approach (especially the famed “20 per cent time”) is a perfect model for any knowledge-based organization that wants to stimulate growth through innovative new products invented and developed by their own subject matter experts. Similarly, this R&D centre will provide the organization with the potential benefits of having an audience for life: if HMH products have the skill and facility to instil the joy of learning in the kids that they currently provide e-learning solutions for, they will have an audience for life, given that these Digital Natives (click on the link for Marc Prensky’s seminal article) will grow up associating the brand with discovering knowledge and the fun of learning. In essence, we can say that the company has the potential to mould a whole generation of learners, which is an extraordinary business opportunity, but also a huge responsibility.

Do I now hear the distant trumpet of an approaching elephant?

I do…

Just an observation really. Rumours of this investment have on the jungle telegraph here in Ireland for some time now, and I was originally going to post on this topic last Thursday (the day of the announcement).

An African elephant (sans room)

I held back, because I wanted to see what reaction would come for the Irish L&D and e-learning blogosphere. I’m disappointed to say that no-one has posted a reaction to the largest investment in their industry, ever.

I’m sure people are still formulating their thoughts – I for one want to read how others in the e-learning industry here in Ireland are responding to this investment.

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References:

HMH to Create 450 Jobs and Base Global R&D Headquarters in Dublin. Enterprise Ireland Press Release. [Internet] Available from: http://www.enterprise-ireland.com/eicms/interiorpage.aspx?NRMODE=Published&NRORIGINALURL=%2FNews%2FPress%2BReleases%2F2008%2FPressSep102008.htm&NRNODEGUID={077DB63F-4925-4D96-BEB3-364BF11C8EB1}&NRCACHEHINT=Guest

[Accessed 10th September 2008]

Ireland wins €350m HMH deal after tough worldwide battle. Irish Independent. [Internet] Available from: http://www.independent.ie/business/irish/ireland-wins-8364350m-hmh-deal–after-tough-worldwide-battle-1473370.html

[Accessed 10th September 2008]

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