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EdTechReview > Trend & Insight > Insight > How an LMS Is Impacting Your Business Goals (Learning Management Systems Explained)
Insight

How an LMS Is Impacting Your Business Goals (Learning Management Systems Explained)

Andrii Slobodianiuk
Andrii Slobodianiuk Published April 7, 2023
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9 Min Read
How an LMS Is Impacting Your Business Goals (Learning Management Systems Explained)
How an LMS Is Impacting Your Business Goals (Learning Management Systems Explained)
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A learning management system or LMS is a software resource that enables all aspects of the educational process – from housing learning materials to tracking students’ progress. It makes training delivery more manageable and streamlined. Based on GoIT LMS development, I’ll explain how an LMS can drive business growth and improve student engagement.

Contents
How an LMS was createdLearning Management System Market TrendsCan EdTech companies survive without an LMSFirst steps to developing an Learning Management SystemHow to develop an effective LMS: Tips and Tricks
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Learning Management System Explained

How an LMS was created

With the advent of audio-video communication for remote or distance learning in the early 20th century, online learning or e-learning became a reality. In the 1980s, computers became increasingly prominent in the delivery of learning materials and some forms of assessment. The prototype of the modern LMS was created in 1924 when phycology professor Sidney Pressey invented the first ‘teaching machine,’ which was similar to the typewriter with a window showing questions. Online teaching transformed lesson delivery and methodology, allowing a more individualized approach. Nowadays, LMS can combine database management and digital frameworks to control course schedules, regulatory compliance, teaching materials, evaluation tools, etc. LMS can be used for all kinds of learning activities, including internal employee training and educational programs.

Learning Management System Market Trends

The e-learning industry is having a speedy development. According to Statista, in 2019, the global e-learning market was sized at almost $200 billion, and by 2026, it is foreseen to hit $400 billion. LMS use is rising as well – a study conducted by ATD shows that most companies (73%) have been using LMS more and more over the past years. At the same time, the global LMS market is expected to reach a value of $23.21 billion by 2023.

The global EdTech market received new development opportunities during the pandemic, and the overall approach to educational processes has changed. A majority of educational institutions support their student’s learning through LMS and EdTech tools. The blended learning format, which implies the combination of online and offline classes, is becoming more relevant than ever. With hybrid courses, students can choose their class schedules, take part in the courses online, and take part in traditional campus classrooms. According to researchers, 63% of learners choose to study online not because of the cost or features of the program itself but because of the optimal work-life balance.

Further, over 60% of learners prefer personalized content online, and over 56% opt for on-demand training. Next-generation learning portals have emerged: for instance, an LXP is a collaborative platform that allows users to control the learning process themselves rather than with the help of course administrators. LXP represents an upgraded version of LMS programs, providing knowledge management, content management, and learning system on one platform.

Can EdTech companies survive without an LMS

Companies can provide learning materials without an LMS using instruments like Google Docs and Youtube. However, they can’t track the key metrics in the educational process and improve the methodology if needed. For instance, in GoIT.global, with the help of LMS tools, we measure the success rate of our students, and if they are stuck on a certain level, we implement gaming techniques to increase user engagement.

An LMS brings benefits to both students and organizations. With a proper learning management system, training reports can be generated for the entire company or on a user-by-user basis. Trainers can easily track goals and knowledge gains and increase the retention rate. For instance, companies understand the time needed to complete the course and can improve its content. On the other side, it saves costs and provides consistent training.

First steps to developing an Learning Management System

LMS can be cloud-based when it’s provided by a third party, self-hosted when a web application is sold as a licensed product or private cloud. In a hybrid solution, you get a secure and private LMS environment that does not share resources or code with other businesses. The cloud LMS relies on a Software As A Service (or SaaS) model, whereas the open-source LMS requires a dedicated IT team to install, customize, and support the application.

To create an LMS, you need to understand its purposes, such as user acquisition or increasing engagement. We aim that our students can find a job after getting their diploma and therefore they need to finish the course.
Then you choose the deployment model and need to develop the project’s architecture; it can include the following elements: CRM, CMS, notification services, etc.
The next step is to calculate the MVP and start the development.

How to develop an effective LMS: Tips and Tricks

Use AI tools: By analyzing previous data, an AI-powered LMS can recommend courses and materials that are relevant to each student. Apart from content recommendation AI is capable of providing learning analytics and data visualization, creating video transcriptions and translations. AI in LMS can detect when, where, how, and why users require help and display or recommend solutions to resolve problems. We introduced AI in test tasks so the students could check their knowledge after completing each part of the course.

Add gamification: Gamification is particularly useful in the K12 EdTech segment since modern kids have a lesser attention span in comparison to previous generations. However, gamification is more than effective in lifelong education as well. It helps to provide continuous learning and increases user engagement. Industry players admit that 80% of learners are more effective with gamified practices.

Community integration: Though learners can’t attend offline events or take in-person classes, they still need to enhance their professional development and want to stay connected with their classmates. Online environments can be challenging to create personal connections, but people still seek a sense of belonging to a larger community. Companies can choose their ambassadors to develop online forums and spread the word about the courses. Besides, businesses can create a central hub for community members to communicate and cultivate personal connections.

Provide instant feedback: It is believed that immediate feedback provided at the time of learning can improve learners’ self-awareness, motivation, and confidence. Our students can see their progress and receive feedback right away without the need to wait for an admin or course supervisor.

Implement AR/VR technologies: Augmented and virtual reality tools are very useful in education, and according to research, 97% of students would like to have a VR course. Due to their immersive experiences and the ability to share information in new, engaging ways without being limited by cost or physical distance, AR/VR technologies are an effective addition to the growing field of education technology. They work in corporate training as well. For example, companies like BMW and Peugeot are using VR in safety training, and Walmart implements VR to recreate scenarios for effective training and to improve employees’ learning experience.

TAGGED: AR/VR Experience, Artificial Intelligence, Feedback Software Tool, Gamification, Learning Management System, LMS
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By Andrii Slobodianiuk
Andrii Slobodianiuk is a highly skilled tech professional with a passion for education. At GoIT he developed a LMS, which won ProductHunt in two categories. He has been instrumental in developing several courses for edtech companies and has experience as a lecturer and mentor in the field. Additionally, Andrii has worked as a developer for esteemed companies such as Virgin, Under Armour, and British American Tobacco, and has successfully founded and sold two startups in tourism and e-commerce.
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