July 31, 2024

What is the Purpose of an LMS?

The use of a Learning Management System (LMS) varies depending on an organization’s specific training needs.

Internal vs External Training

An LMS can facilitate both internal training for employees and external training for customers or partners. The effectiveness of an LMS depends on the training methods employed and the specific features of the LMS that align with your business requirements.

Training Applications

Employee Training

An LMS can support various types of employee training, including development, onboarding, compliance, and sales training. It helps employees gain confidence from the start and enables their growth and potential.

Customer Training

Training your customers using an LMS can enhance their growth and strengthen your relationship with them. Product training through an LMS can build a community of knowledgeable users who value and adopt your products. Integration with tools like HubSpot can further enhance this learning experience.

Partner Training

Using an LMS to train your partners can drive their success and foster revenue-generating relationships.

Extended Enterprise

An LMS can train everyone within your organizational ecosystem, providing a unified training platform.

Types of LMS

The term LMS encompasses a wide range of tools with significant differences. For example, an LMS used by a university differs greatly from one used by a software company. Key factors that influence the type of LMS needed include:

Corporate vs Academic Systems

Businesses typically use a corporate LMS, while schools and universities opt for academic LMSs. Corporate LMSs are frequently updated with new features and offer functionalities like white-labeling and tool integrations. Academic LMSs, in contrast, provide fewer updates and limited integration capabilities.

Cloud vs Hosted Systems

Organizations can choose between installing an LMS on their own hardware or using a cloud-based service. While most have moved to the cloud, some still prefer on-site installations to meet specific industry regulations or network requirements.

Who Benefits from an LMS?

Anyone needing to deliver training can benefit from an LMS. It streamlines the training process, reducing the time spent on course creation, delivery, and reporting. Organizations of all sizes and industries use LMSs. Examples include:

Small to Medium Enterprises

SMEs use LMSs to save time on training, freeing up resources for other tasks while ensuring employees gain the necessary skills and knowledge.

Large Enterprises

Large companies use LMSs to deliver varied training to different audiences, such as new hire onboarding and customer product training.

Specialized Product Training

Companies, especially those offering specialized products like software or medical devices, use LMSs to train customers and partners, reducing churn and increasing customer engagement.

How an LMS Operates

An LMS typically has two main interfaces:

Admin View

This view is accessible to the main admin, manager, or instructor. It allows for the creation of diverse courses without requiring technical expertise, efficient management of training, and comprehensive tracking and reporting of training data.

User Interface

Once a learner is added to the LMS, they can be enrolled in any available course. Some LMS platforms allow the creation of groups organized by job role, department, or specific training needs. Learners can access their training via a desktop, laptop, tablet, or mobile device, ensuring flexibility and support for anytime, anywhere learning (ensure your LMS provider offers a mobile-friendly solution).

LMS Features

Each LMS offers a unique set of features. Identifying the right functionalities for your training needs without getting overwhelmed is crucial. Understanding the purpose and benefits of each feature can be challenging. To help, we’ve compiled a list of the Top 29 Learning Management System Features You Should Consider. This list can assist you in evaluating your needs and determining which features are essential for your organization.

Benefits of Using an LMS

An LMS is an invaluable tool for meeting your organization’s training needs, providing significant benefits to both learners and the organization as a whole.

Time Savings

An LMS streamlines the training process compared to traditional, in-person sessions. Instead of learners taking time out of their day, missing work, or traveling, they can simply log in to the platform and complete courses from anywhere. This flexibility saves considerable time for both learners and administrators.

Cost Reduction

Traditional training methods incur various expenses, such as instructor fees, travel costs, training materials, and venue rentals. An LMS minimizes these costs by enabling online training, which can be accessed anytime. Even if face-to-face sessions are necessary, an LMS supports a blended learning strategy by combining online and offline training activities, all managed through one system. This approach creates economies of scale and positively impacts your bottom line.

Demonstrating Training Impact

A significant advantage of an LMS is the access to invaluable training data. Reports on exam completion rates, training histories, and course progress provide insights into how training impacts your organization’s return on investment (ROI).

Calculating LMS ROI

To determine the ROI of your LMS, start by discussing training goals with leadership. Identify the training programs needed to achieve these goals, prioritize metrics to measure (e.g., retention rates, product upgrades), and gather the necessary data. For detailed metrics and calculation methods, refer to the ROI Formula.

Additional Advantages of an LMS
Reusing Existing Training Materials

Uploading pre-existing training materials, such as PowerPoint presentations or PDFs, and embedding video content, allows for quick course creation at no extra cost, without needing technical expertise.

Variety of Training Methods

An LMS offers various training approaches, allowing you to choose the most suitable one for the situation or subject matter. Options include different media types, assessments, live webinars, and on-demand content.

Efficient Training Management

Organizing training can be complex, especially for small teams. An LMS automates many administrative tasks, such as adding learners, enrolling them in courses, administering exams, issuing certificates, and generating reports, freeing up time for more critical tasks.

Centralized Training

An LMS consolidates course content, data, and training materials in one place, enabling efficient delivery of consistent, effective training across your organization. Learners can easily access courses, and administrators can manage training content effortlessly.

Tracking Learner Progress

An LMS allows you to monitor learner engagement and progress through courses. Progress reports provide status updates on each learner, including their profile information, course start and completion dates, and scores.

Certification

Certification ensures learners acquire the necessary skills and knowledge. Many LMS platforms offer reporting features based on certification, allowing you to track certifications held by users and identify those needing recertification. Automated recertification enrollments ensure compliance with ongoing training requirements, such as annual compliance training.

LMS Implementation

Successfully implementing an LMS requires careful planning, adequate resources, and a clear vision of what success looks like for your organization. Here’s what you need to know about LMS implementation.

Types of LMS Implementation

There are various types of LMS solutions to choose from, depending on your needs. The two main types are cloud-based and self-hosted.

Cloud-Based LMS

This type of LMS does not require specific hardware or software installations. Users simply log into a web portal to access the LMS features and courses. Cloud-based LMSs are popular because they are easy to implement, low maintenance, secure, and configurable.

Self-Hosted LMS

A self-hosted LMS is installed locally on your company’s servers. While it may offer more customization options, it requires your IT department to handle updates and maintenance.

Implementation Timeline

The time required to implement an LMS varies based on the complexity of the integration and the efficiency of the vendor. Quick and straightforward implementations also depend on your company’s internal procedures. When comparing LMS vendors, inquire about their timelines to set clear expectations and ensure they can meet your implementation deadlines.

Steps to Implement an LMS
  1. Support and Success Team: Ensure your LMS provider has a dedicated Support and Success team to assist with implementation.
  2. Goal Setting and Planning: Clearly define your goals and implementation plan.
  3. Course Building and User Addition: Start building courses and adding users to the system.
  4. Testing: Conduct a pilot test with a small group of users.
  5. Promotion: Promote the launch of the new learning system before it goes live.
  6. Review: Have your Customer Success representative review everything before the official launch.
Choosing an LMS

With numerous learning management systems available, finding the best solution for your business can be challenging. Focus on essential areas to narrow down your search.

LMS Licensing Types

Pay Per User

You pay for every user that accesses your LMS. This model is typically used by cloud-based LMS providers who also handle hosting, maintenance, and upgrades.

Pay Per Active User

This popular pricing model charges you only for users actively using the platform. It usually includes two payment options: paying for each active user during the billing cycle or paying for each active user per month.

Unlimited

In this model, you pay a monthly or annual fee for unlimited users. However, some providers may require a contractual commitment, such as a minimum one-year subscription.

How to Choose the Best LMS
  • Customer Care: Evaluate the level of customer support provided throughout each stage of onboarding. A great vendor will have dedicated team members to support you at every phase.
  • Support Hours: Verify the vendor’s support hours to ensure timely resolution of any issues.
  • Demos and Free Trials: Take advantage of demos and free trials to test the LMS and see if it meets your organization’s needs.
  • Vendor Understanding: Ensure the LMS provider understands your organization’s needs and goals. The provider should be more of a partner than just a software supplier.

Choosing the right LMS involves assessing your specific needs, evaluating potential features, and selecting a platform that aligns with your strategic goals. By following these guidelines, you can implement an LMS that empowers your learners, streamlines training processes, and drives organizational success.

Why Choose GOLS EdTech?

GOLS EdTech is a comprehensive solution for managing, delivering, and tracking your training programs. It offers everything you need to provide impactful training that drives your business growth. The GOLS EdTech LMS simplifies and centralizes training management throughout your organization.

Our team is dedicated to providing personalized solutions tailored to your specific training needs and use cases. Schedule a demo with one of our experienced team members today.

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