A bright future for distance learning: One Touch/Hughes alliance promotes interactive 'e-learning' service

The market for corporate interactive distance learning-now known as "e-learning"-has boomed along with the growth in the Internet and corporate intranets. A new strategic alliance led by One Touch Systems and Hughes Network Systems may offer the most complete end-to-end interactive learning service available to date.

"The combination of what One Touch has with respect to the PC-based distance learning module, plus the ability to deliver directly to the desktop via satellite at very high quality [is something] no one else can do," said Dennis Conti, vice president of sales and marketing at Hughes.

"By bringing together these players, we ensure that our customers are making a strategic and, above all, safe investment in the future," said Craig A. Conway, president and chief executive officer of One Touch.

The North American market for Internet and intranet-based learning has come a long way very fast, according to Christianne Moretti, manager of IT training and education research at IDC Canada.

As recently as two years ago, corporate training buyers knew very little about distance learning, said Moretti. "The changeover from interest to actually looking at adoption has been extremely rapid," she said.

IDC estimates that the market for Internet- and intranet-based e-learning will reach $178 million in 1997 and as much as $1.8 billionby 2001. At that rate, e-learning-which now accounts for only about 3% to 4% of the total training and education market-will grow to about 15% of the total training and education market.

A number of so-called megatrends are converging to catapult the demand for interactive distance learning. Not only are things changing, say industry pundits, but the rate of change is increasing. Knowledge, in other words, is increasing at an ever faster rate.

In addition, some demographic trends bode well for interactive learning. Baby boomers, who are not being replaced in the economy by Generation Xers, will constantly need to update their skills. And in a trend that might reach the U.S., European companies are finding it harder to replace employees with younger, more knowledgeable workers, so they will require more advanced training techniques.

"A good, competitive business must keep its knowledge base current at every stage of the cycle and function within the organization," One Touch Vice President of Marketing Howard Green said. "The half-life of a technical degree these days is [only] about four years."

According to Ellen Julian, an analyst who covers the training and education market for IDC, it makes a lot of sense for a number of companies to ally and offer services to the Internet learning space.

"Purchasers of training solutions really need a variety of expertise to assist them in setting up this kind of training," said Julian.

Ford Motor Co. is one of One Touch's biggest clients.

Ford's interactive learning system reaches mechanics, sales reps, customer service reps and parts people in warehouses, garages and at desktops. Ford is even planning to reach their mid-level managers and others within the corporate structure with the One Touch system.

"Ours is the only solution to reach all those places simultaneously with the same system," said Ken Chow, director of business development for One Touch.

"It sounds like they are tying to provide a full gamut of courseware from technical all the way to soft skills," Moretti said. "They are bringing all the right elements together."

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