CRM, ERP, LMS – in times of digitalization, many abbreviations for tools are floating around. While CRM and ERP are among the more well-known options for increasing efficiency, especially in sales, the LMS, i.e., the Learning Management System, is not yet equally widespread everywhere. What is behind it? What does it really do? And what matters when choosing one? We clarify the most important questions.

Content

• Definition: What is an LMS?
• Benefits: Why should I use an LMS in my company?
• Advantages: What does a Learning Management System do?
• Disadvantages: Can a learning management system also be harmful?
• Areas of application: Where is the use of an LMS particularly suitable?
• Technology: How does an LMS work?
• Functions: What should a Learning Management System cover?
• What are the differences?
• How much does an LMS cost?
• Trends: What else do I need to know?
• keelearning: Your partner for learning solutions!

Definition: What is an LMS?

LMS is the abbreviation for Learning Management System, sometimes also called Learning Management Software. It refers to a platform that combines various functions that influence effective learning.

• L(earning): Digital delivery of learning content to employees
• M(anagement): Managing learning content and analyzing or continuously improving learning progress
• S(ystem): Learning platform with which the whole thing can be implemented

Benefits: Why should I use an LMS in my company?

For years, seminars, training sessions, workshops, and similar formats were common in companies to further educate employees. This is very important, especially for onboarding, but also for continuous training, for example in sales, in order to make staff strong and quickly operational for the respective topics. Unfortunately, classic offline formats have turned out to be old-fashioned and demotivating. Often these are no longer accepted quite as well by employees. What advantages does an LMS bring in comparison?

Advantages: What does a Learning Management System do?

• Varied and motivating: Due to the various formats covered by a learning management software, learning is demonstrably more fun.
• Individual learning content: An algorithm based on artificial intelligence calculates which questions fit which learning level.
• Addressing individual prior knowledge: With learning software, everyone can enter a topic at the point that suits their personal prior knowledge.
  
  Healthy competition: Through functions such as a quiz or other gamified approaches, comparability is created and employees receive an additional learning incentive.
• Fast feedback: Learners receive immediate feedback on their performance. Thanks to smart systems, they are always motivated to continue learning.
• Independence from time and place: Everyone learns when they can muster the necessary concentration for it. Whether on the way to work, while waiting for a customer, or at a specific scheduled appointment.
• Cost savings: No or fewer travel and accommodation costs for external seminars.
• Always up to date: Content can always be kept up to date and is immediately accessible to everyone in the latest version with one click.
• Observe learning progress: Thanks to clear statistics, learning progress can be viewed at all times. If it turns out that a topic is particularly difficult, the content can be adjusted if necessary.
• Simple organization of processes: Adding employees to courses, setting goals, sharing learning materials, sending certificates - thanks to an LMS, organizational processes like these are simplified.
• Covering multilingualism: Modern learning management software enables international corporations to offer learning materials in different languages without a coach having to be fluent in other languages.
• Greater company success: Well-trained personnel influence the success of companies. Skills are increased – the employer is perceived as attractive. This can also reduce fluctuation.

Disadvantages: Can a learning management system also be harmful?

Where there are advantages, there are also disadvantages – this is also the case with an LMS. However, it is only important to know the disadvantages and turn them into advantages from the beginning. On the one hand, there is the pressure to perform. As a rule, comparability is an advantage for your employees. If it turns out that this has negative effects, there should be the option, for example, to turn off learning statistics.

On the other hand, the line between game and learning content must always remain balanced, especially with gamification approaches. Although learning management software should be fun and motivating, if it becomes a pure game, this should be countered.

Finally, the usage should be mentioned here: Is it useful to learn on the way to work or during breaks? Is working time really still being used effectively? Or at the other extreme: Do the employees use the system at all in the end? In order to train a healthy approach to an LMS, it is part of it that staff are included in the decision-making process of the implementation. Only in this way can the Learning Management System also be a success.

Areas of application: Where is the use of an LMS particularly suitable?

In principle, learning software can be sensibly used in all corporate areas where continuous knowledge transfer is concerned in the broadest sense. In recent years, these have been, for example:

• LMS for further training in sales (e.g., for training field staff)
• LMS for safety training (e.g., fire protection, occupational safety)
• LMS for mandatory training (e.g., hygiene training in hospitals)
• LMS as an onboarding tool (e.g., by the HR department)
• LMS for apprentice training (e.g., maintained by training managers)

Technology: How does an LMS work?

A modern Learning Management System is web-based, meaning: No cumbersome installations are necessary. On the contrary: A (mobile) device and internet access are enough to get started. Every user receives an account with which they can easily log in using their access data.

As a rule, there is also a person in the company who is trained a bit more deeply in the technical processes. For example, for user administration if passwords are forgotten, or to upload new learning content. An introduction usually takes place within a few hours.

Functions: What should a Learning Management System cover?

Ultimately, the learning management software lives from exciting learning content that you create. However, an LMS should master some basic functions:

• Multimedia: In addition to images and text, video and audio files should also be compatible with your learning management system.
• Import: The import of files should be enabled through a simple administration environment.
• Assignment of participants: It should be easily possible to assign participants to individual courses or to share specific learning content only for certain groups of people.
• Multilingualism: The uncomplicated implementation of learning content in different languages is essential for international companies.
• Automatic sending of certificates: A learning platform should save work through the automatic sending of certificates upon passing an exam.
• Chat function: Communication with and between your employees should be possible via learning software.

What are the differences?

The essential distinguishing features between providers lie in functionality and cost. These can be compared quite objectively. On a subjective level, however, you should also include usability and service in your decision-making process. After all, the LMS will only be used regularly if it is easy to use and fun to work with. Also, regarding the topic of data protection, you should – especially after the introduction of the GDPR – ensure that the provider acts according to German law.

How much does an LMS cost?

As a rule, costs depend on the exact functions and the number of users. At keeunit, you start, for example, from 190 Euros per month plus setup fees. Plan for costs between a sum in the high four-digit range to the low five-digit range for a term of one year. Contrast this with what you save, for example, on seminar costs, travel expenses, and accommodation costs. You will find that the sum generally amortizes very quickly.

Trends: What else do I need to know?

Some buzzwords have established themselves in connection with modern learning. You can find the five most important ones here at a glance.

• Adaptive Learning: Everyone learns what fits their level of knowledge – easily mappable thanks to artificial intelligence in an LMS.
• Blended Learning: The combination of on- and offline learning content is considered particularly effective.
• Gamification: The playful approach, for example through a quiz, can motivate learning in addition.
• Microlearning: Learning in small units is demonstrably sustainable.
• Mobile Learning: Mobile learning enables device-, location-, and time-independent access to content.

In the coming week, we will present our checklist on the topic of LMS here. Stay in touch with us on Linkedin to be informed about the release of part 2 of our series.

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