The global enterprise learning market is massive at ~$350 billion, with learning and skilling-related software making up over $10 billion. The market is at an inflection point today. Many employers in emerging markets are adopting technology platforms for the first time, and employers everywhere are recognizing the importance of skills-based hiring and training. Addressing the learning, reskilling and upskilling needs of the 3.3 billion global labor force is a core area of focus for us at Lumos.
Over the past few decades, we have seen this market evolve in the West. Beginning in the 2000s, employers began to use software to consolidate, coordinate, and track training; this became the first generation of learning management systems (LMS). This shift occurred as learning and development (L&D) gained increased priority, serving not only to attract and retain talent but also to ensure compliance. In the years following, software adoption among employers grew but overall usage among employees remained low, limiting the potential for impact among L&D programs. During this time, learning content also grew dramatically in both quantity and format, as videos, blogs, podcasts, online courses and other formats proliferated. As a result, over the past five years, yet another addition to the L&D software stack, learning experience platforms (LXPs), emerged to increase employee engagement, organize the growing world of learning content, and drive better user experiences.
At the same time, we have observed a shift in the hiring landscape where many employers are placing greater emphasis on the specific skills and capabilities that candidates bring to the table, rather than solely relying on traditional qualifications like degrees. This approach is particularly relevant in fast-evolving industries where specific skills are in high demand and where the traditional education system might not always keep up with the pace of change. This shift has a significant impact on how employers think about training and upskilling their workforce. For example, there is a greater focus on evaluating the skills gaps of current employees; employers have become more inclined to provide training that directly aligns with the specific skills required for a job; and employers are investing more in technologies that can provide personalized upskilling programs for employees that translate to real business outcomes.
“ Addressing the learning, reskilling and upskilling needs of the 3.3 billion global labor force is a core area of focus for us at Lumos.”
Much of this evolution in the L&D software stack has been concentrated in the West, with other markets slower to shift away from in-person traditional training programs and more manual L&D infrastructure. However, the onset of the COVID-19 pandemic greatly accelerated the adoption curve for digital training programs and associated L&D software infrastructure, with price points and budgets favoring regional providers. As a result, we are beginning to see a similar adoption pattern emerging as that observed in the West: 1) adopt an LMS as a foundation of L&D infrastructure; 2) purchase content to provide a robust catalog for employees; 3) adopt an LXP to increase usage and engagement; 4) invest in technologies to evaluate skill gaps and personalize skills acquisition to drive real business outcomes.
We are proud to be partnering with Disprz, who we believe is uniquely positioned to address corporate learning needs across both Eastern and Western markets. The company has a multi-product (e.g. LMS, content marketplace, LXP, and others) dynamic platform that was built with a modular design. This enables employers to select the product offering that best suits their employees’ needs. This approach has allowed Disprz to become an emerging leader in Southeast Asia, where it already serves two of the largest six banks in India, and the Middle East, where it serves three of the top five employers in the UAE. Disprz’s product quality allows it to compete on a global scale serving some of the world’s largest institutions while maintaining the flexibility to sit on top of existing products in places like the US and Europe as needed to drive further L&D and/or business improvements.
“We are thrilled to announce our partnership with Disprz, an innovative global learning and skilling platform for employers across sectors. ”
We were attracted to Disprz not only for its potential to serve employers and employees across all markets but also because it has built a platform to serve all workers. Much of the global advancement in L&D technology described above has been focused on supporting white collar workers or desk workers. These workers were early adopters of digital training, and investments in supporting these workers were more easily justified given the relatively higher salaries. However, Disprz has built some of its product modules specifically to serve frontline workers. Frontline workers play a crucial role in various industries, and their learning and training needs are unique due to their direct interaction with customers, products, and services. Frequently, they require an entirely different user experience, including a different modality (mobile); they often need to quickly learn specific skills that are directly related to their roles; sometimes, they are the face of the organization and interact directly with customers, or they work in potentially hazardous environments. We believe that frontline workers represent a large and important part of the workforce that has been historically underserved by the L&D market, and we are excited that Disprz has built its product to serve this market segment.
We have had the privilege of knowing the founders of Disprz since 2018. Co-founders Subbu Viswanathan and Kuljit Chadha are repeat entrepreneurs who combine extraordinary product vision with strong execution skills. Most importantly, they have a high degree of values alignment with our firm’s own values. We couldn’t be more excited to partner together on the journey ahead!
