Their definition of the "Knowledge Targeting Stage" includes:
By enabling line-of-business managers to collaborate with HR and training departments to tailor learning to their people, real business value begins to emerge as employees extend their knowledge beyond basic skill sets to specialized talents that have a direct impact on business performance.
The knowledge targeting stage of HCM provides HR and training leaders a unique opportunity to connect with business leaders, understand their challenges and deliver tangible value to them.
As you move up the maturity model you get into bigger and more centralized solutions with the ultimate solution being an all-you-can-eat tool. Oh, did I mention that the author comes from Saba? A good company, but an obvious bias.
Now here's the reality...
While I work a lot with LMS products (including Saba) and believe that they are really great for may things, I also find that they can easily become a barrier. For example, what if I just want to put up some quick-hit information. I'm not going to put it under the LMS. This is the same thing I talked about in my post: eLearning Technology: Tools for On-Demand Information - An LMS?