What Is Learning Management System: The Ins and Outs

Demand for digital education (or e-learning) is expected to increase by 400% by 2020. The global learning management systems (LMS) market is predicted to reach $44.49 billion by 2028, making it the fastest-growing education industry. 

With such rapid growth, it goes without saying that the LMS market is hotter than ever. Hence, the question “How to build a learning management system?” is becoming increasingly prevalent. 

Savvycom, the leading software development company in Vietnam IT hub, are here to provide you with a complete answer, including everything from the many types of LMS to its fundamental features and the specific procedures in this process. 

What is Learning Management System? 

A learning management system (LMS) is software that allows educators to develop, share, and manage various training courses and programs. LMSs offer numerous tools that simplify the creation of educational resources such as scripts, presentations, audio, and video materials and establish the complete learning process through pacing, various assessments, grading systems, and more. 

An LMS, like other software, is often composed of two parts: 

• CMS and administration: Educators use this interface to engage with the learning management system. This interaction includes managing existing courses, developing new courses, adding students, analyzing progress, connecting with students, and various other tasks. 
• User interface: This interface may alter depending on the device on which it is launched. However, all platforms share one feature. Students enroll in the course and interact with the educator’s content via this interface. 

Creating an LMS for your business 

Building an LMS may bring a plethora of benefits to your company. Let’s see the main reasons you should consider developing a Learning Management System. 

Managing partner training: This is an excellent way to improve affiliate programs and provide more value to counterparties. Partner training is another great approach for enhancing affiliate programs. 

Client education: Customer learning management leads to greater product value and helps prevent user loss. Companies that want to attract clients effectively may want to consider acquiring this sort of training. 

Staff training: LMS can boost the educational process’s importance by centralizing training resources and encouraging employee participation through digital learning. Furthermore, constructing a remote learning system for individuals operating in remote locations has become imperative. 

Assessing employees: A learning management system is commonly used for receiving mandatory training and testing one’s knowledge, tolerances, regulatory documents, and certifications. 

Supporting HR: The system offers the chance to convert paper documents and records into digital format, develop software that caters to the needs of your employees, and automate tasks that are typically performed by human resources. 

6 Types Of LMS

Before we move on to the process of designing a bespoke learning management system, let’s explore the main types of learning management systems. 

Open-source 

A free, open-source learning management system may be tailored to meet any needs. It also implies you’ll need an accredited expert to create a custom learning management system out of free code. Reliable support may also be lacking.  

Commercial LMS 

Commercial LMS software is expensive and can only be modified by the firm that owns it. If you are a customer, you may be missing out on certain desired functionalities. On the other side, you get consistent and dependable support. 

Installed LMS 

An installed or hosted LMS operates on your premises and stores data on your own servers. Therefore, it is highly secure and completely customizable. However, you will want an in-house server rack for installed LMS development and maintenance. 

SaaS LMS 

The vendor hosts and maintains the software-as-a-service learning management system in the cloud. You, as a customer, will pay a membership fee and focus exclusively on training. There is minimal room for customization. This might be one of the reasons for developing your own LMS system. 

Integrated LMS 

Integration with third-party apps may be necessary during the development of a learning management system. Some of the most common apps to integrate with an LMS include social networks, calendars, talent management systems for HR function support, email, and other tools. 

Non-integrated LMS 

Some LMS systems may limit their features to the fundamentals. These LMS kinds’ only purpose is to give users a single source of important information. 

Fundamental features of an LMS 

What are the key features of an LMS that any learning system should have? When you decide to create a learning management system, include the features listed below when you begin your LMS creation quest. 

Course Builder 

The capacity to build courses that will be used to train people in your company is the most critical part of an LMS. It should be able to develop various courses, ranging from themes to quizzes for testing students. 

Content management 

One of the most crucial roles of LMS systems is that it serves as the foundation for everything. Educators can use it to manage current courses (alter tags and descriptions, conceal or add ready-made courses to the list) and create new ones. 

User and group management 

This feature is critical for creating a smooth learning experience. It enables teachers to divide students into groups, give assignments to entire groups or individual students, send students private messages and alerts, and much more. As a result, contact with the platform will become more comprehensive and convenient. 

Report and analytics 

LMS reporting features provide you instant access to actionable learning data. View individual and group aggregated reports. In the shape of a grade book, these reports provide a birds-eye perspective of your pupils’ results. You may also filter reports by time, such as today, yesterday, and the last seven days. View only the required information without having to scroll up and down a report. 

Testing and assessment 

The most crucial training step is assessment, which allows you to determine how the pupils mastered the new educational content. This module should provide the ability to build a wide range of assessments, from basic one-answer exams to multi-answer quizzes and activities needing a detailed answer. Moreover, options for defining deadlines and time restrictions for a specific test should be introduced. 

Reminders and announcements 

Other important aspects of a training LMS include reminders and announcements. They allow students to meet course completion or credential expiration deadlines. This feature allows instructors to define a completion date for courses or quizzes. They can also specify certificate expiration dates. This is a simple way to assure ongoing compliance and a greater course completion rate. 

User roles and permission 

Safety comes first. Editors can configure access to certain course blocks, information, and functionality using user roles and permissions to maintain data security. This will increase confidence among users in your platform. 

Gamification 

Classic online learning may be tedious, especially if you’re creating an LMS website or app for a younger audience. Gamification solves this problem by making learning more fun and engaging. You may, for example, build a simulated transition to the next level, implement a system of rewards for task completion, and so on. As a result, user engagement will rise. 

Mobile learning 

One of the most helpful features of a Learning Management System is the ability to access training materials and assessments on mobile devices such as smartphones and tablets. Furthermore, it encourages individuals to finish their courses on schedule and aids with retention. This powerful technology is very beneficial since it enables self-paced microlearning on mobile devices without needing a place to study. Remove typical scheduling concerns by allowing students to learn at their own speed if they meet deadlines. 

8 steps to build a learning management system 

Now, let’s go through a step-by-step procedure to get a learning management system that will be a trusted assistance for you and your company’s employees. 

Step 1. Analyze and improve your idea 

This is the foundation step for all following development decisions. The future shape of your LMS is defined at this point. 

Ask yourself the following questions to determine a project idea: 

• Why do you need an LMS? 
• What are your organization’s problems that this LMS may solve? 

• Who will develop and implement the LMS? 
• What are the required resources for LMS development? 
• How much will you invest in the LMS? 

Based on our expertise, the two most prevalent issues that users may encounter with an LMS are complex systems and unoptimized UX/UI design, both of which provide an imperfect experience.   

Furthermore, the monetization strategy should not be overlooked when designing the future LMS. Many LMS systems are frequently paid to remove adverts or banners that may distract students from the learning process.  

You may take into account the following monetization alternatives: 

• Paid software with a trial period: Although commercial LMS systems are widely available, they compete hard in the market with free systems. To get people to start buying your platform, you must first create your own LMS system, which must be a high-quality product that provides users with unique solutions that no competitors have. 
• Freemium software: At its core, this software is free; you provide certain functionality for free, but the user must pay to unlock any additional useful features. For example, your LMS may include chat functionality for basic communication, but video calling with screen capture may be a premium feature that requires payment. 

Step 2. Select an experienced vendor 

A competent LMS platform development requires extensive experience to integrate all key features effectively for a faultless user experience. You may decide to cooperate with an expert education app development business to outsource your product. They will consult you on any technical concerns and carefully lead you through the software development process, from idea validation to development and support. 

Step 3. Consider your LMS’s features 

You can’t start developing a learning management system unless you know what features it will include. As a result, you must define all functionality in advance.  

We have already discussed the essential components of an LMS. 

Step 4. Work on responsive design 

When designing a learning management system, you should have a well-thought-out design of the future system since it affects half of the user experience. In addition to the carefully chosen color scheme and block design, the system should seem perfect on all existing devices. Responsive design, which implies automated adaptation to any device, is important for such solutions. 

The ability to utilize the platform on mobile devices is critical nowadays since it speeds up the learning process. As a result, developing a responsive online resource or mobile application design is critical. So, users may quickly access instructional resources from any location. Also, remember that the LMS should be easy to use for all participants, whether instructors, students, or administrators. 

Step 5. Sort information into the specification 

The next step is creating a specification – a document that fully covers all information about the business, business goals, the concept of the LMS system, its needs, its features and technologies, and the technologies on which future development will be based. Your software provider compiles this document under your control. After you have approved all the specifics, you may go on to the development step. 

Step 6. Develop the LMS 

In this stage, UI/UX designers start to build screen prototypes for the LMS using specifications and wireframes. After the design phase is completed, designers hand over all layouts to the development team. Developers employ their technical knowledge to transform appealing designs into functional products. The development process consists of sprints. During each sprint, which typically lasts two weeks, developers must implement a certain aspect of the product’s functionality. 

Step 7. Release LMS  

When all of the features have been produced, and the LMS has been polished, it is time for the release stage. You should hire a marketing business to help it grow. 

The firm should be launched around a month before the release for the optimum effect. You may begin by advertising your brand’s social networks by making publications about your product’s upcoming release in which you advertise your LMS in-depth and explain how your solution is superior to rivals. Also, don’t forget to purchase contextual advertising. It will assist in making your products visible for an extended period. Announce the release on social media, buy adverts inviting people to sample your product, and submit prerelease posts. 

Step 8. Support based on user feedback

Your product is now live and earning money. You can now start thinking about LMS support and enhancements. This is where user reviews can help. Analyze user feedback to determine what you successfully implemented and which areas of the LMS require improvement. This will help you plan for future improvements. 

Furthermore, you may immediately begin integrating new features to increase the platform’s functionality and enhance the user experience. The Savvycom team provides technical support and software updates to keep your product up to date with new technologies. Furthermore, our professionals can assist you in expanding the functionality or developing LMS from the ground up. 

Costs of developing a learning management system  

The LMS system typically costs between $40,000 to $400,000 or more. The exact pricing can be tricky to calculate at this time because it is affected by numerous aspects such as project scope, feature complexity, third-party integrations, etc.  

If we divide the LMS solution by its level of complexity and size, we get the following picture: 

• Simple LMS: $40,000 – $60,000+ 

This kind of LMS is better as an MVP. 

• Medium complexity LMS: $60,000 – $150,000+ 

This is suited to those who want to create a functional solution with a basic set of features. 

• Complex LMS: $150,000 – $400,000+ 

If you want to produce a high-quality product with complex features, go with this one. 

In short, the number and complexity of the LMS’s features are what impact the final costs the most. Below are factors that have a significant impact on an educational system: 

• Registration and installation fees 

Cloud-based learning management systems charge for the initial download or registration. Some LMS providers charge monthly subscription fees rather than upfront payments. If it is unclear, contact your LMS provider for an overview of all LMS software prices and due dates. 

• Platform support and maintenance 

Support costs approximately 15-20% of the original cost. There is no direct cost because the LMS supplier often manages this internally. Integration of an LMS into your learning and development plan, as well as software updates, frequently incur extra fees. 

• Annual licenses renewal fees 

You may swap LMS platforms or renew your licensing when your agreement expires. Check the license agreement with the LMS vendor again. Do changes and extra materials cost money? What kind of support is available? 

• Learning content development 

Without online tutorials to download, building a new LMS is pointless. Consider online learning development costs or the expense of a certain material. 

• Personnel training expenditures 

To build an effective working procedure, you must thoroughly train the employees. This could involve online lectures and step-by-step instructions and engaging an LMS provider to dispatch an expert technician to reduce the learning curve. Your team’s experience and the intricacy of your LMS platform are key factors to consider. 

• User prices 

Some LMS providers charge per user. For this reason, you must take into account the LMS’s online learner count. The majority of LMS software pricing is determined by the number of active users. 

Besides the above costs, you should also be aware of: 

• Third-party integration: Connecting your LMS to Grammarly, Amazon, or other internet services will incur costs. 
• Hosting fees: Users can access an LMS after it is published on a hosting site. There may be an additional cost if a larger repository is required to hold all the media files. 
• Strict deadlines: A larger crew may be required to complete the project within the specified time frame, resulting in a salary increase. 
• Software development method: If your technology partner adopts an Agile development approach, as Savvycom does, you can collaborate with the entire team, which may provide more opportunities for negotiation.