When you are in Authoring Environment (AE) you have to connect to ECC to retrieve CMS location. You need a User ID / role for that.
You also need to create a user id / role in the J2EE server (CMS) so that you can connect to the CMS from AE.
You have to have appropriate roles for all User ID's so that they can access the Content Player and play the course in the portal.
Step 10 is when you want to bring content from external LMS like SkillSoft or Brainshark etc....