My friend and colleague Romain Gibert recently posted an interesting article on his blog: [here]

There are no technical standards when it comes to format and compatibility with elearning. SCORM has been the de-facto model for interoperability and compatibility among elearning tools and systems. Moreover, SCORM oversees how elearning modules and learning management systems communicate with each other. For example, compliant courses, once uploaded to a compliant system will allow the module to directly interact with the system. Thus, any quiz, activity, and statistics that are resident in the module, also gets tracked and reported to the LMS. This integration forms a seamless language that all elements can “understand” and “report,”
SCORM is actually an acronym. I’m sure by now you already know what it stands for just by looking at the featured image above. SCORM stands for Sharable Content Object Reference Model. These acronyms can then be split into two groups: Sharable Content Object and Reference Model.
Sharable Content Object

The SCO part of the equation stands for the elements that can be reused across different platforms and systems. Once elements are SCORM-compliant, they can be used and reused in different learning management systems and different authoring tools.

Reference Model
The RM part leaves a little bit more to interpretation. It symbolizes that SCORM is a standard that the industry can use. Using it allows for more seamless integration between author, authoring tools, learning management system, software, and finally hardware.