Learning Management System ROI

What is a System?

Return on Investment (ROI)

Moodle LMS Advert

“A Learning Management System (LMS) is software or the category of software which is used to perform multiple tasks like documentation, tracking, reporting, and administration of of educational courses or corporate training material.”

(Markets, 2015)

LMS is the framework that handles all aspects of the learning process

Global Market

The global LMS market had revenues of around $2.15bn in 2013 and this is expected to increase to around $4.7bn at a CAGR of around 17%.

There are around 500 LMS solutions based on proprietary software as well as open source offerings, but the market is dominated by established companies like Blackboard, Desire2Learn, Instructure etc with respect to revenues.

Functionality of LMS and LCMS

LMS Functionality

  • Course Content Delivery
  • Student Registration and Administration
  • Training Event Management (i.e., scheduling, tracking)
  • Curriculum and Certification Management
  • Skills and Competencies Management
  • Skill Gap Analysis
  • Individual Development Plan (IDP)
  • Assessing and resulting
  • Reporting
  • Training Record Management
  • Courseware Authoring
  • Resource Management
  • Virtual Organizations
  • Performance Management System Integration

LCMS Functionality

  • Template-driven, Collaborative Content Development
  • Facilitated Content Management(i.e., indexing and reuse)
  • Publishing
  • Workflow

(Kerschenbaum , 2013)

Testing, Training and Recordkeeping Are Most Used LMS Functions

When asked what functionality of their LMS software respondents use most, 73 percent say trainee testing, while 68 percent say training administration. Another 53 percent of users cite recordkeeping as the most used LMS functionality with virtual classroom about 45%

(O’Loughlin, 2015)

LMS Has Greatest Impact on Organization of Training Content and Efficiency

Overall, the majority of users surveyed say their LMS software has a “positive” or “very positive” impact on training operations. The organization of training content and efficiency in content delivery receive the highest ratings, with 99 percent of respondents saying each is positively impacted, with 87% positive impact on training cost.

(O’Loughlin, 2015)

For potential buyers, this suggests that the purchase of an LMS solution has the potential to be a worthwhile investment that yields similarly positive results.

(O’Loughlin, 2015)

ROI Calculation

A typical LMS and an E-Learning Training Programme “versus” Face to Face Training will save a Company:-


ROI Elite Training

Please follow and like us:

Enjoy this blog? Please spread the word :)