With online training taking the business world by storm, companies of all shapes and sizes must take advantage of the emerging trend and get ahead of the competition.Yet sometimes, the best way to move forward is to go back to basics.That’s why this guide is tackling the most foundational questions there are when it comes to e-learning: what is a learning management system and how can it help drive your business?
What is a learning management system?
A learning management system (LMS) is a software-based platform that facilitates the management, delivery and measurement of an organization’s corporate training programs.LMS platforms are sometimes called slightly different names, such as learning activity management systems, learning experience platforms, or training management systems. An LMS can occasionally be confused with a learning content management system (LCMS). Although complementary, the main difference is that an LCMS is used for authoring and managing online training materials while the LMS is all about the learning process.Most learning management systems are cloud-based software solutions that companies use as their fundamental tool for managing corporate training programs.Just as sales teams depend on customer relationship management (CRM) software or human resource (HR) teams rely on HR information system (HRIS) software, LMS software is usually the core technology in an organization’s learning and development (L&D) department.That said, let’s take a look at what LMSs are good for.What is the purpose of an LMS?
LMSs deploy all kinds of training courses including compliance training, onboarding and enrollment, customer training, company policy training, and more. The main purpose of an LMS is to provide useful learning materials through an easy-to-use user interface (UI). It helps long-time employees, new hires, customers, partners, and all stakeholders achieve their learning goals. Also, an LMS is great at keeping track of learner progress.LMSs also revolutionized the e-learning space by allowing for more learning data to be collected, leading to better ways to assess the effectiveness of L&D programs and learner performance. In addition, these platforms support advanced features like mobile learning, gamification, and e-commerce revenue generation through extended enterprise.Seeing as 76% of employees state they are “more likely to stay with a company that offers continuous training,” an LMS is a smart and vital tool to keep learning engaging, constant, and effective.Who are LMSs for?
Many schools and universities around the world use LMSs. However, a wide variety of businesses, governmental agencies, and nonprofit organizations also utilize them with great success. Both small-to-medium-sized businesses and multinational enterprises stand to gain from LMSs.Statistically speaking, there are over 73.8 million LMS users around the world. Of these, only 21% are in education. Other industries effectively employing learning management systems include:- Technology (12%)
- Manufacturing (9%)
- Healthcare (7%)
- Consulting (7%)
- Software development (4%)
- Real estate (3%)
- Nonprofit organizations (3%)
- Government institutions (2%)
- Learners are those who receive online courses. They use the platform to gain access to relevant training content, upload tasks or assignments, and keep track of their progress.
- Trainers and admins are the groups behind the scenes. They are responsible for creating, managing, and uploading the course materials. Admins also assign the training content in accordance with the learning path, provide guidance where needed, give evaluations, and track candidate performance.
3 types of LMS platforms
Just as all businesses and organizations are different, LMS platforms vary too. While most serve a similar purpose, they are not identical in terms of features. A tool that’s specifically designed for universities, for example, may not be the best choice for employee training within a corporation.Choosing one at random can still bring you some benefits but will not guarantee you make the best use of what LMS platforms offer. When scoping out different LMS vendors, make sure the potential platform aligns with your online training module needs, pricing, company size, and any other requirements.Here are three main types of LMS platforms to consider.Commercial vs. open-source
One of the first questions to ask yourself is whether you want an open-source (free) platform or commercial (paid) LMS software. At first glance, open source may seem like the go-to option, but not all such platforms are without cost.Sure, you may not have to pay for a license, but you’ll likely have to deal with the hassle of setting up a server and hosting architecture. You’ll also need to customize the platform to your specific needs and regularly update and upgrade to remain current.The commercial version, on the other hand, removes all the associated headaches of having to set up and operate the system. The platform’s operators handle everything on your behalf. Depending on the LMS vendor, they’ll probably provide you with an onboarding process and real-time customer service and tech support.Unless you have a dedicated in-house tech team with the necessary know-how, an open-source LMS platform may end up costing you far more than the commercial alternative.Self-hosted vs. cloud-based
A second option to consider is whether to host your LMS’s data on your company’s hardware or go for the cloud-based solution also known as software-as-a-service (SaaS).Opting for the cloud means your LMS vendor will handle all the server load, data security, and regular backups. Some organizations may still favor the self-hosted approach, regardless of the benefits SaaS has to offer. They do so mainly for security reasons, especially if they must adhere to strict network requirements or industry-specific legislation.While most companies already migrated their operations to the cloud, security remains a big issue. It’s therefore a good idea to ensure the SaaS LMS vendor—like Docebo—conducts regular data backups and system upgrades and has sound encryption protocols in place.SaaS solutions remain the better bet, especially for companies that don’t have an experienced in-house IT staff.Academic vs. corporate LMS
As hinted earlier, academic and corporate LMS software have similar features but ultimately aim to solve different problems. Both provide course content and automate many time-consuming admin tasks. However, they can differ in terms of learning goals, timelines, grading, or course content management.You could make an academic LMS work for your corporate needs, for instance, but you’ll have a harder time getting the desired results. Here’s the difference.- Academic LMS: This tool is specifically tailored to provide students with in-depth theoretical knowledge and boost their initiative to study more. It also takes into account semesters, exam times, periods, or holidays. Academic LMSs need to offer tools for social learning, such as student groups, discussion boards, and web conferencing. Similarly, they need to have a grade book system for monitoring attendance, assignments, and other relevant student information.
- Corporate LMS: Unlike an academic LMS, the corporate version must seamlessly change or update training courses based on current market needs. A webinar functionality is almost always a must, as corporate training programs focus more on practical applications and return on investment (ROI). Certifications upon completion are typically used instead of grades, and course timelines are shorter. Mobile learning is more widely used to provide greater flexibility.
5 top LMS features
Whether it’s simply for creating training programs, onboarding new employees, reporting on their progress, or something more complex, LMSs need to address two core issues:- They need to have the right features to streamline the learning process.
- They need to provide an excellent user experience for both learners and admins.