What is a learning management system (LMS)?

What are learning management systems used for?

LMSes have a range of use cases in education institutions and companies. They're primarily used for knowledge management: the gathering, organizing, sharing and analysis of an organization's knowledge in terms of resources, documents and people skills. The role of the LMS varies according to the organization's training strategy and goals.

Onboarding and training

Employee training and onboarding are two common uses of LMSes in a business environment. For onboarding, the LMS helps train new employees, providing opportunities to access training programs across various devices. New employees add their own knowledge and provide feedback. This helps employers understand how effective the training course materials are and identify areas where new hires need assistance.

LMSes are used for extended enterprise training purposes as well. This includes customer, partner and member training. Customer learning activities are common in software and technology companies where user learning goals might include learning how to use a product or system. Ongoing LMS-based customer training improves the customer experience and can increase brand loyalty.

When using an LMS for these purposes, instructors create immersive learning experiences that let users develop new skills and problem-solving capabilities. For example, an LMS could be used to create tutorials that incorporate augmented reality, virtual reality and artificial intelligence (AI). This will likely have the effect of improving creativity and innovation throughout the workforce.

Development and retention

Employee development and retention is another way LMSes are used in businesses. The system assigns courses to employees to ensure they are developing effective job skills, remain informed about product changes and have requisite product and compliance knowledge.

Sales training

Another way LMSes are used is to enhance employee sales skills. This includes the creation of seminars on product knowledge, customer interaction training and case study-based tutorials that use previous experiences with clients to improve future interactions.

Blended learning

An LMS provides students with blended learning experiences that combine traditional classroom teaching with online learning tools. This method is more effective than simple face-to-face education because it enriches instructor-led training in the classroom with digital learning content customized to fit a student's learning needs.

How do learning management systems work?

An LMS is a large repository where users store and track information in one place. Any user with a login and password can access the system and its online learning resources. If the system is self-hosted, the user must either install the software on their computer or access it through their company's server.

Some common LMS features include the following capabilities and technologies:

• Responsive design. Users access the LMS from any type of device, whether it's a desktop, laptop, tablet or smartphone. The system automatically displays the version best suited for each user's chosen device and lets users download content for offline work.
• User-friendly interface. The UI lets learners navigate the LMS platform and is aligned with the abilities and goals of the user and the organization. An unintuitive UI risks confusing or distracting users, making the LMS less effective.
• Reports and analytics. E-learning assessment tools and dashboards show instructors and administrators how effective online training initiatives are. Both groups of learners and individuals can be analyzed with these tools and metrics.
• Catalog and course management. Admins and instructors manage the catalog of course content in the LMS to create more targeted learning experiences.
• Content interoperability and integration. Content created and stored in an LMS must be packaged in accordance with interoperable standards, including SCORM and experience application programming interface or xAPI.
• Support services. Different LMS vendors offer varying levels of support. Many provide online discussion boards where users connect and help each other. Additional support services, such as a dedicated, toll-free phone number, might be available for an extra cost.
• Certification and compliance support. This feature is essential to systems used for online compliance training and certifications. It enables instructors and admins to assess an individual's skill set and identify any gaps in their performance. This feature also makes it possible to use LMS records during an audit.
• Social learning capabilities. Many LMSes include social media tools in their learning platforms to let users interact with their peers, collaborate and share learning experiences.
• Gamification. Some LMSes include game mechanics or built-in gamification features that add extra motivation and engagement to courses. This gives students an additional incentive to complete courses, in the form of leaderboards, points and badges.
• Automation. Learning management systems automate and streamline repetitive and tedious tasks, such as grouping, adding and deactivating users, and handling group enrollments.
• Localization. LMSes often include multilingual support, removing language barriers from learning and training content. Some LMSes integrate geolocation features that automatically present the appropriate version of the course when a user accesses it.
• Artificial intelligence. LMSes use AI to create personalized learning experiences for users with course formats suited to their needs. AI also helps suggest topics a user might find interesting based on courses they've already completed.

Types of LMS deployments

The different LMS deployment options include the following:

• Cloud-based LMSes are hosted on the cloud and often follow a software as a service (SaaS) business model. Providers maintain the system and handle updates or upgrades. Online users access the system apps from anywhere at any time using a username and password.
• Self-hosted LMSes require the organization to download and install the LMS software. The self-hosted platform provides creative control and customization, but the organization is responsible for maintaining the system and might also have to pay for updates.
• Third-party hosted LMSes are learning resources that a third-party organization hosts. Courses are obtained directly from a public cloud location or from the training company's own data center or private cloud.
• Desktop application LMSes are installed on the user's desktop. However, the application might still be accessible on multiple devices.
• Mobile app LMSes support a mobile learning environment and are accessible wherever and whenever through mobile devices. This platform deployment type lets users engage with and track their online learning initiatives on the go.
• Custom-built LMSes are built by a company's development team or by external consultants and only include the functionalities a company needs.
• Open source LMses are built with existing code that's shared with users so they can add their own features and functionalities as they see fit.
• Learning content management systems (LCMSes) are content management systems built for creating and managing new learning or training content.
• LMS modules are add-ons to HR systems built to perform specific tasks. These modules aren't meant to be as advanced as full LMSes.

What are the payment options for LMSes?

The various pricing models used for LMSes include the following:

• Freemium. This free model lets users access the basic features of some LMS platforms for free. Once users start engaging with the more advanced functionalities of the system, a fee is imposed.
• Subscription. Users pay a recurring fee at regular intervals to access the LMS. The subscription might grant an organization total access to all LMS features or it might require the organization to pay for each user.
• Licensing. LMS licensing is based on either an annual fee that companies must renew or a one-time fee that provides users with unlimited lifetime access.
• Open source. Open source products are usually provided at no cost. Some examples are Chamilo, Ilias, Moodle and Sakai.

What are the benefits of an LMS?

An LMS saves an organization time and money. Learners don't have to travel to other locations for classes or training sessions. Instead, they can complete coursework at a time and place that's best for them. In addition, these systems require less interaction with live instructors, and they cut back on training days, training materials, travel expenses and location hiring.

Other benefits of learning management systems include the following:

• The ability to monitor users' learning progress and performance.
• Increased e-learning accessibility without geographic limitations.
• Personalized online courses, training and learning experiences.
• The ability to easily and efficiently update e-learning modules and activities.
• Consistent and streamlined distribution of online training and learning content across an organization.
• Elimination of repetitive tasks in learning programs, such as user enrollment and certification.
• Centralized management so all data is organized and stored in one place. This makes it easier for instructors and admins to update and maintain learning materials.
• Advanced security features, such as encryption, to keep data and content secure.

What are the challenges of an LMS?

A few challenges with LMSes prove they aren't a silver bullet for upskilling or training employees:

• Setup and integration. Expertise in setting up an LMS and integrating it with an organization's existing tech infrastructure is required. Not all organizations have the necessary personnel to do this.
• Lack of accommodation. Employees and students learn differently from one another or learn better with personalized teaching methods; LMS systems typically don't have the flexibility to accommodate a range of learning approaches and meet all students' needs.
• Lack of reporting. Some LMSes lack the advanced analytics dashboards and built-in features needed to analyze student performance.

Using content management systems with LMSes

An important part of the LMS process is creating learning content. If the LMS has its own content, it's important that it can be adjusted to meet an organization's requirements. If the organization needs to create its own content, an LCMS is helpful because it's built specifically for creating content in a learning environment. LCMSes contain the standard functionalities found in a typical CMS, but they're better suited for these learning environments.

A standalone CMS could suffice for learning content creation depending on the needs of an organization. A CMS produces a variety of content types and includes two components:

• A content management software application to design, modify and delete the content.
• A content delivery application that formats the content for its ultimate destination.

For example, an instructor can create a website for administering an online course. The software app is used for creating the website content, and the delivery app presents it as a user-friendly website for the students to use.

How to choose a new LMS

Prior to buying an LMS, an organization must assess its learning requirements. This means determining the following:

• LMS goals. The long-term goals an LMS will accomplish, such as cohort-based continuous learning, are determined first.
• Users. Intended users should be identified and segmented into groups.
• Costs. An organization must pick an affordable option that fits within its budget.
• Technology requirements. Determining if the existing tech infrastructure will integrate with a specific LMS product is key.
• Features. LMSes offer various capabilities, such as gamification and AI, to help employees learn.
• Compliance. Depending on where an organization is located, laws and regulations might dictate acceptable use of an LMS, especially with the collection of personal data.

Learning experience platforms vs. LMSes

Learning experience platforms (LXPs) are the next generation of learning management technologies. This SaaS-based technology uses AI to adapt the learning experience to the student's needs and raise the bar on the overall experience. LXPs differ from LMSes, which generally require students to follow a program as the provider designed it.

The AI component of an LXP gives students a more autonomous and self-managed experience. For example, if the student takes an interest in certain information, the LXP presents relevant content from the internet to the student. The LXP also captures data on the student's preferences and uses it to increase personalization. The goal is to make the training experience more student-centric.

LMS vs. training management system (TMS)

An LMS and a TMS differ in both purpose and intended users. Administrators and other managers use an LMS to create compelling learning content; employees use an LMS to learn.

Meanwhile, admins and managers use TMSes to organize and customize their training methods. This includes tasks such as setting up training dates and sessions, cost management and overseeing trainers.

The two types of systems are often combined to create a unified platform. The LMS handles processes such as delivering online courses to students and communicating with them virtually. The TMS handles training logistics. This combined approach is suitable for large-scale, instructor-led training situations where there are large pools of employees and trainers.

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