This report discusses developments in computer based instruction (CBI) and presents initiatives for the improvement of Navy instructional management in the 1985 to 1995 time frame. The state of the art in instructional management and delivery is assessed, projections for the capabilities for instructional management and delivery systems during this 10-year period are established, and viable alternatives to the current Navy computer managed instruction system are identified. The major categories of current CBI systems are examined in the context of their problems and capabilities, current and future trends in CBI systems are presented and an economic assessment of Navy needs is provided, which includes projected technological capabilities in hardware, software, and courseware to satisfy those needs. Functional components of CBI are identified and analyzed with an assessent of these alternatives in terms of key system characteristics. Finally, recommendations are provided for actions to be taken in support of CBI system development. Appendices list the consultants to this study and the major categories, subcategories, and functions of CBI. (Author/MER)