Innovation and e-learning provides an insight into the key business dynamics in implementing an e-learning programme. It discusses the development of e-learning for small firms and a variety of other markets. To deliver provision in this area means we must confront conventional issues of overcoming resistance to change and encouraging collaboration, but also a range of business and educational management issues. Internet-supported learning is an innovative way for educational enterprises to gain competitive advantage. It allows for reconfiguring delivery without sacrificing the quality of learning. It also opens up a whole set of services for flexible learning. Most institutions, departments, groups and individuals are making the transition to online delivery, but many teachers and decision-makers find that maximizing its use for learning has to be considered in the changing context of increased competition for students and resources. To be successful, it is necessary to develop learning, technology and business in a creative way. Key issues covered include forces driving the need for e-learning; small firms and e-learning; open, distance and flexible learning; innovation and competitive strategy; and quality assurance and evaluation.