You are never too old to learn — we hear this very often. Indeed, even if you are already not a student, you should continue to learn. But why do people think that the desire to learn is linked to a particular age? Why do such phrases exist at all? Simply because the culture of adult learning and self-education only starts to grow. Today, it becomes cool to attend courses, no matter how old you are. Perceiving the world through learning — that’s what the 21-st century requires.

There are a lot of examples of how education changes organizations, employees’ way of thinking, and the pace of moving towards goals. Once, the Toyota company also decided to join the list. They started their way to becoming a “learning” business by diving into root cause analysis. The latter denotes the analysis under which you name the cause that you “think” led to a problem instead of naming the cause that you “know” brought a problem. By adopting this mental model, Toyota gradually moved to lean manufacturing, which is closely linked to root cause analysis. This is how learning and simple mind activity such as analysis helped a company to move to the practical implementation of the gained knowledge.

If you want to be like Toyota, you need to create a space for managing learning in your organization. To ease the process of getting the value out of knowledge, you need to make learning manageable, controllable, and trackable. And this is where enterprise learning management enters the game.

Today, we will discuss what an enterprise learning management system is, what functions it has, what tools bring the most benefits, and when to hire a software engineering team to build a customized solution.

What Is Enterprise-Level Learning Management System?

Do you know that more than 80% of modern organizations use learning management systems? With a CAGR rate of 19.6%, the LMS market is expected to reach $22.4 billion in a year. The popularization of LMS tools has brought about a real digital transformation of the learning industry. Be it custom solutions or off-the-shelf software, LMS helps businesses organize the process of learning and handle it. For example, this is how the LMS market is evolving in North America:

lms for business

But what LMS actually is? A learning management system, or LMS, is a software solution used for handling the process of learning. You should not confuse LMS with LCMS: the latter stands for learning content management system and is used to organize the learning materials and content. Unlike LCMS, learning management systems are not limited to content management and cover many, if not all, aspects of learning.

LMS combines the power of technology with the benefits of education. Suppose that your company has 50 employees who have to undergo professional development. You choose the format of training courses. In this case, you should either hire a trainer (which costs $3000 on average) with an already developed course or order course development and lead the course by yourself (which will also cost you $4500-10 000). Apart from paying for the number of employees to enroll in the course, you will have to repeat the procedure again and again whenever new people join the team.

To join the course, your employees will need equipment, which also increases the sum of potential expenses. On top of that, a trainer may increase the price for their services depending on the number of attendants. You may ask, “Is there some alternative for this tedious learning strategy?” We will answer, “To build a custom enterprise learning management system or to choose among the off-the-shelf ones.”

Yes, if you choose this way out, you will also have to spend money and either pay a monthly fee or invest in the development process. But there is a difference with this approach: such an investment will pay you off in the form of unlimited education opportunities and prospects. Take the abovementioned situation as an example. If you choose this strategy, there will be no need to hire trainers each time you decide to launch courses. You will save a fortune on equipment and course management. And whenever you decide to restart a course for a new audience, it will come for free as you will already have a system to manage all materials, interactions, learning stages, etc.

Learning management systems help 72% of organizations to gain a competitive advantage, with at least 9% seeing their profit and productivity improve. Moreover, enterprise LMS is used by some businesses extensively, which emphasizes its big role in keeping upgraded and staying relevant.

enterprise learning management system

Enterprise learning management systems perform the following functions:

  • Learning process management. This includes managing course attendants, courses, responsibilities, tasks, and goals. Also, LMS allows for course scheduling and giving instructions.
  • Learner assessment. Learners can assess their progress throughout the course and focus on the aspects that should be improved. Also, managers can track employee results and assess them with standardized procedures and criteria.
  • Sending notifications. Users get notified when there is an upcoming event, unfinished task, the deadline is close, and so on.
  • Analytics. This function presupposes generating reports on course progress for each attendant separately and the course as a whole, discovering and visualizing tendencies, reporting on the weakest and strongest aspects of learning, etc.
  • Certifications. Course attendant profile registered in enterprise LMS enables managers to see how things are going for each employee. After course completion, they boost their qualification and get certificates confirming the successful finish of the learning process.
  • Competency management. Other employees can access public info about the competency of a given attendant. Potentially, it will help managers to create effective teams where different skills are combined into a powerful set that is tailored to specific business tasks.

enterprise learning management systems

Why Do Enterprises Need It?

Enterprises tend to complain that the money spent on employee training does not pay off in the form of better productivity, increased competence, more income, and so on. A lack of results may point to the ineffective organization of learning, the irrelevance of learning material, and low motivation of employees. All of these problems can be solved with a unified and multi-function LMS. This is how businesses come to the implementation of learning management systems:

learning management systems for enterprises

We compiled a list of the 10 most important reasons why enterprises may need to adopt LMS at the workplace:

  1. This is a foundation for interactive, social learning. Enterprise learning management systems make learning dynamic and proactive. You get access not only to the material you need to cover but also to the bunch of useful tools, tests, quizzes, and interactions that facilitate learning. With such an approach to education, it becomes easier to learn new information and apply it at work.
  2. LMS is all about learner-oriented education. You move from trainer-centered to student-centered learning. In trainer-centered learning, employees passively absorb information delivered by one person. There is a limit of students that can undergo the course simultaneously for a trainer to have the physical capacity to control everyone’s progress. Under a learner-oriented approach, the learning process is adjusted to their schedule, tempo, and needs.
  3. You get personalization. A look at the general picture makes it harder to see individual progress. LMSs give learners the tools for the personalization of their learning process. For instance, a quick quiz before starting the course helps to define the expectations and emphasize the aspects of learning that require particular attention. Informative reporting at the end of each learning episode and at the end of the course may also facilitate positive results.
  4. LMS is a centralized repository for managing education at the workplace. You get everything in one place: launching courses, keeping track of your employees’ self-development, detecting gaps and weak spots to receive the needed training, training newbies, and much more. In fact, learning management systems combine education, communication, practice, and analytics in one solution.
  5. You increase education accessibility. By adjusting an enterprise learning management system to different formats of learning (video, audio, PPT, PDF), you increase the audience’s interest in the results. Also, when you use a single system for enterprise learning management, you reduce the possibility of tech issues and bugs. An experienced software development team will build an LMS solution that is responsive and intuitive. This, in turn, will enable employees to study when and where they want. For instance, if you enable a user to access the course via mobile, you increase the time spent by the attendant on studying the material.
  6. You get control over the situation. By using a multi-function platform, you get access to a number of features and integrations. It allows you not only to track employee progress but also to get to know your team better. For instance, by analyzing what type of learning suits your employees the most, you can build the right communication strategy for effective collaboration and information exchange.
  7. Improving team results effortlessly. There will be no need for you to ask a manager to conduct onboarding courses each time a newcomer joins your team. Instead, you will be able to sign them up on the enterprise learning management platform and give them access to the onboarding course. The same goes for compliance training, which is aimed at detecting skill gaps to be trained and improved via further learning. You will save a ton of time for your managers if you let them perform these processes with the help of a software solution.
  8. You favor the exchange of experience. If you order course development from a trainer, you put the trainer in the center of the whole learning process. If you decide to use LMS to present or build a course — you leave space for employee initiative. That is, via communication tools in an LMS, your learners will be able to exchange their knowledge, comment on the course, or present their opinions and feedback. It will not let your team get stuck in one place.
  9. Your company shows an expert approach. If you have a single learning management system for managing all the learning aspects and steps, your employees will have to take this process seriously. It will positively affect your brand image in the eyes of prospective customers as well as potential teammates.
  10. You automate the processes and effort. Instead of collecting info on how your employees evaluate the course results, you may just look at the analytics section of your enterprise LMS. It automates the analysis and saves you time that can be spent on generating fresh ideas for your team to become more powerful and effective.

Basically, these 10 reasons make enterprises put the question “What is LMS?” on Google and look for a good solution. But what solution can actually be considered good? Let us present some of the popular options and then discuss a custom way of LMS software engineering.

enterprise lms

Moodle

enterprise learning management

Moodle is a free tool for enterprise learning management. It enables businesses to register an unlimited number of users and add activities, plugins, integrations, and add-ons. You and your team get access to various guides, resources, and APIs.

Also, one of the strong aspects of Moodle is its universality. But what does universality mean in the context of learning? It means that to get all the needed functions, your dedicated team of developers will have to customize the solution. If you have no people with profound tech skills around, consider other educational options for the software.

TalentLMS

enterprise-level lms

TalentLMS is a great solution for training both your employees and your clients. It is cloud-based and does not require you to install or regularly update it. TalentLMS is used for effective course creation by both small and big enterprises. Its flexible pricing allows everyone to find a suitable plan.

Among the famous users of TalentLMS, we may mention the University of Arizona, LG, and Acquia. You may ask, why such famous companies are not afraid of using a third-party service for running internal learning processes? Simply because of the security and reliability of the solution. In TalentLMS, data is encrypted and processed via secure channels. The weak side of TalentLMS is its communication features. There is no chat function, comments, or discussions that could help employees manage their learning better.

Adobe Captivate Prime

corporate learning management

This is a complex learning management system solution that aims to make the learning process more entertaining and personalized. With Adobe Captivate Prime, you can organize courses for any audience, be it your employees, stakeholders, or clients.

The solution allows for social, peer-to-peer learning across the value chain. Your employees get the chance to boost their skills and reskill based on your business needs. Users rate this platform at 7.6 out of 10. Among the weaknesses, they mention lack of client support and poor customization of certificates.

Looop

lms for enterprise

Looop is one of the favorite tools of big enterprises — more than 10 000 businesses adopt this solution in their learning strategies. Not to distract user attention, Looop encompasses only necessary features. This allows learners to leave their feedback on the engagement of the material. Also, you can use the format of the text, audio, video, or pictures to create and manage educational content.

Due to the high rate of this solution, there are not so many drawbacks to focus on. Still, users mention that some features of Looop could be more time-saving and intuitive.

Learndash

enterprice lms

This is a WordPress plugin that enables you to create and even sell online courses. With Learndash, you can create an immersive education experience, release certificates after course completion, give assignments, and build quizzes (this is in addition to all basic functions of course creation).

When talking about the drawbacks of the solution, we may mention limited payment options and limited membership features.

Custom Enterprise Learning Management Systems

The solutions mentioned above are great. But they are targeted at a big audience, which improves their universality and expands applicability. At first glance, it may seem like a big benefit, particularly for businesses with a limited budget. Yet, in the course of using a platform, it may turn out that it cannot meet your specific goals and cover your particular pains. If you went through all the options and found out that you see the education process in your organization differently than service providers see it — consider building a custom enterprise learning management system based on the Agile methodology.

Custom LMS will give you many benefits. Together with the hired team, you will create a project roadmap, choose the right approach, be it microservices or monolith, and adjust the development process to your budget and deadlines.

Apart from being tailored to your requirements and the peculiarities of your business, custom solutions provide your audience only with needed functionality and features. Your team builds a solution from scratch — you choose what the platform should look like, what sections to build in the menu, and what elements and adds-on to integrate. You do not overload your users with unnecessary features, do not pay for the unnecessary functionality. A one-time investment in custom LMS will help you organize the learning process effectively.

To develop a powerful LMS, consider the following key aspects:

corporate lms

And last but not least, you need to organize the very process of employee training effectively. For this, check out the following 3 tips from Stephen Goldberg, a leadership trainer and coach for managers.

Summing Up

In this post, we discussed what enterprise-level learning management is, what functions LMS has, and what LMS options are available on the market. If you feel that the off-the-shelf solutions will be ineffective for your business — you may always consider one of the outsourcing models and build a custom LMS. This one-time investment will surely pay you off in the form of saved time, a motivated team, and better business results.

If you are at the crossroad between paying for a ready-made solution or developing your own — it’s a good idea to consult an experienced IT team. Together with business analysts and software engineers, you will build an effective strategy for becoming a truly “learning” business. All you need is to leave us your contact details, and you will get a prompt response from the Forbytes representatives.