In the early days of e-learning development, the ADDIE model would seem particularly attractive. After all, it's hard to argue against the sequence of analysis then design then development then implementation then evaluation -- it's logical enough and is probably applied in one way or another in a wide range of human endeavors. The problem is not with the ADDIE bit, it's with the idea that the five stages have to be applied in strict sequence with no iterations; it's a "waterfall" process. ADDIE is a fruitless quest for perfection that only rarely achieves anything other than mediocrity. It's easy to see how companies got to the waterfall approach to ADDIE. It would help if the e-learning development process was modeled less on Hollywood and more on software development, which to some extent is what e-learning is.
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