EdTech

Enterprise Learning Management System: Criteria for Selecting the Best

11 min read

Today, it’s become more evident than ever that long emails, MS Office, and YouTube videos can’t replace dedicated corporate training software. In fact, 41% of businesses that use general-purpose software for staff training eventually decide to implement an enterprise learning management system (LMS). The reason is that common office tools are limited in their functionality. By contrast, an LMS has so much to offer for large enterprises.

A learning management system makes corporate training convenient for both employees and employers. It allows fast knowledge exchange and smooth delivery of information. Whereas traditional instructor-led training may ruin the learner’s schedule, be ineffective due to poor delivery, and also cost a fortune. 

No wonder LMSs are currently high in demand. An enterprise learning management system reduces the cost of workplace learning. It improves employee retention and skill development. So, if you want to learn more about its must-have features and scout through the best LMS solutions on the market, read on. We’ve prepared an ultimate guide to enterprise learning management systems for large businesses.

What aspects define an enterprise learning management system

An enterprise LMS is a software solution that helps businesses report, track, and manage corporate learning activities among employees. Let’s take a look at the essential features of a learning management system for a large enterprise. 

Scalability and customization

It’s important for an LMS to be flexible. The system must have great scalability in order to handle the increased number of users. At the same time, enterprise learning management software should be highly customizable to correspond to dynamic business needs. Scalability and customization are the main features to look for in an enterprise LMS. Unfortunately, not all off-the-shelf solutions may offer them to a desired extent. 

Integration capabilities

A modern enterprise learning management system must have wide integration capabilities. It has to be able to integrate with the internal company’s software in order to exchange useful data. Also, an LMS must support API integration with third-party solutions, such as analytics and video conference tools.

Secure data storage

Large amounts of sensitive data, which an LMS operates, should be well-protected. That is why security becomes a priority number one in the development and implementation of an enterprise LMS. You have to make sure that the data is encrypted and safe in the storage. Therefore, only use software that offers comprehensive security measures. 

Enterprise knowledge management

An LMS stores the enterprise knowledge base. It helps to monitor the employee acquisition of knowledge and identify the current knowledge gaps. Additionally, the enterprise learning management system encourages the sharing of valuable working experience among the employees. 

Content management

A perfect enterprise LMS should be able to support various types of content. Whether it’s online learning or instructor-led offline training, the system has to track all the employees’ activities. On top of that, editing and creating any new content by administrators must be easy. 

User management and advanced reporting features

The user management features allow app administrators to manage all the user accounts and also their access to the system. For instance, an admin can create or remove user accounts and assign supervisors or instructors. 

Reporting features are vital for any LMS. Thanks to them, businesses can track the employees’ learning progress. What’s more, reports can provide additional insights on which program is more popular and what aspects of an LMS need changing. 

Single sign-on

It’s convenient for employees to have the same login information for an LMS as for the other business software. To achieve that, an LMS should be able to integrate seamlessly through API with the other corporate systems. 

Gamification

Sure, you can implement an enterprise LMS without any gamification features in it. But the truth is that both custom-built and ready-made learning management systems usually have one. According to Harvard Business Review’s 2023 study, gamified training leads to higher employee engagement and improved performance. That is why, for a modern enterprise LMS, gamification becomes a must. 

The benefits of implementing an enterprise LMS

Using an enterprise learning management system comes with profits. Here are the main advantages of implementing an LMS for businesses. 

Corporate learning culture improvement

One of the goals of modern businesses today is to build a strong learning culture in their organizations. Which means fostering continuous employee learning. According to Deloitte’s research, organizations need to become pillars of learning, providing the institutional education that their employees look for.

Implementing an enterprise LMS is a significant step towards improving corporate learning culture. It helps to establish a safe and accessible learning environment for employees. Also, thanks to an enterprise LMS, collaboration between colleagues and the sharing of knowledge in the company become much easier.  

Reduced learning costs

Compared to establishing traditional learning approaches, LMS implementation costs less. With a learning management system, you don’t have to pay for specific training equipment or cover any transport expenses for a trainer and your employees. LMS allows conducting a learning session anywhere and at any convenient time. Moreover, unlike in traditional learning, you don’t have to pay for each new user enrollment or a sudden change in the schedule. 

Better engagement and onboarding for new employees

As Harvard Business Review states, ‘poor onboarding experience can leave employees feeling uncomfortable, confused, and dejected.’ A number of surveys have proved that good onboarding experience matters. 52% of new hires say they feel undertrained after onboarding. And 50% of those who felt disengaged after their onboarding plan to quit their new job soon. 

An enterprise LMS can help to reduce these numbers. A learning management system offers personalized employee training tailored to their needs. It can ensure the exact learning curve and pace the person needs. On top of that, an enterprise LMS delivers training material in an engaging manner through gamified elements and various types of content. It makes onboarding more personal and dynamic compared to the traditional learning approach.  

Increased staff retention

According to LinkedIn’s 2023 Workplace Learning Report, 93% of organizations are concerned about employee retention. And the way they are addressing this issue is by providing learning opportunities. 

Thanks to an LMS, employees receive personalized training and gain the exact skills they need for their jobs. An enterprise learning management system constantly motivates and engages employees. It shows them that the company truly cares for their personal growth. All these aspects result in employees forming a long-term bond with the organization they work for. 

Measurable ROI 

An enterprise LMS implementation is cost-effective. Upon your investment in it, you gain an increase in employee performance, retention rates, and business revenue. At the same time, you reduce the costs of employee training and hardware and the risks associated with high employee turnover. 

In fact, the benefits of using a learning management system for a large enterprise are actually measurable in the long run. You can calculate the Return on Investment of an LMS implementation using the well-known formula: 

ROI formula

Key integrations for enterprise learning management system

Extended enterprise is the second most requested LMS functionality, according to Gartner. Providing it, however, largely depends on the software’s ability to ensure seamless integration. Let’s look at the integrations that are necessary for an effective enterprise learning management system.

top LMS functionalities (2021-2022)

Customer relationship management (CRM)

Integrating an enterprise LMS with your CRM will allow data exchange between these software systems. Instead of manual user data and permissions entry, you will be able to operate the list of current CRM users. What’s more, CRM gives employees a hands-on experience of the training that they have just received. 

Enterprise resource planning system (ERP)

Integrating an LMS with an enterprise resource planning system is convenient and cost-effective. ERP-LMS integration enabled by a single sign-on will streamline the business processes. Moreover, it will help avoid data duplication.

Content and video conference software

Integrating your enterprise LMS with content platforms allows quick material preparation for learning programs. Take Coursera, YouTube, or LinkedIn Learning, for instance. With webinar and video conference software integration, your LMS platform will be able to support live learning sessions for the employees. 

Human resource information systems 

You can also integrate an enterprise LMS with HR software. This will enable the exchange of training data, employee information, and other HR materials between the two systems. Thanks to this integration, onboarding, training, and adding new users to the LMS will be easy. 

Evaluating the enterprise learning management systems of 2024

With many solutions available on the market, it’s hard to choose the right LMS for an enterprise. Let’s compare the top ready-made learning management systems to see how they differ from one another. We’ll evaluate Moodle, Docebo, Canvas LMS, and TalentLMS according to several features. 

top enterprise learning management systems in 2024

Design customization

While all four systems offer design customization, they do so to a different extent. Moodle allows you to customize dashboards and learning paths. Docebo supports branding and dashboard customization too. So does TalentLMS, but this solution doesn’t have a convenient drag-and-drop option for customization. Canvas LMS also provides extensive design customization, with a user-friendly interface that includes a drag-and-drop feature for easy customization and course creation.

Third-party integrations

All four LMS platforms support third-party integrations with various apps, including popular analytics, e-commerce, and workplace solutions. 

Technical support

With a ready-made LMS system, round-the-clock technical support is vital. TalentLMS and Moodle do not offer 24/7 support for their platforms. You can reach out to the online community, read FAQs, or browse through the knowledge base if you have a problem. By contrast, Canvas LMS and Docebo offer 24/7 technical support for their users, ensuring immediate assistance is available through various channels including chat, email, and phone.

Gamification

All platforms have gamification options built into them. You can customize the ready-made elements according to your needs. Canvas LMS's approach is interesting in allowing for countless plug-ins. This provides greater flexibility for customization and aligning with specific corporate learning objectives.

Moodle vs. Docebo vs. TalentLMS comparison

Accessibility and mobile learning support

Unfortunately, none of these platforms have too many built-in accessibility options. An example of what is available is Canvas LMS' accessibility option list, mainly dealing with font sizes, high-contract modes in presentation, etc. In most cases, though, you will have to customize your LMS yourself to make it more accessible. At the same time, Moodle, Docebo, Canvas, and TalentLMS all have mobile learning options.  

Pricing

Docebo offers a free trial and a subscription plan. Its pricing, however, isn’t transparent and depends on the features of the desired enterprise LMS. Which may lead to additional expenses along the way. Moodle has free, standard, and premium options. The price depends on the number of users and the storage you need. Meanwhile, Canvas offers a Free-f0r-Teacher option. Similarly, TalentLMS has several subscription plans. However, they offer not only different numbers of users but also different features. Which may not be cost-effective if the two don’t match. 

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Looking to build an LMS similar to Moodle or Canvas? Discover the how-tos in our piece on Creating a System Like Moodle or Canvas, offering clear steps and smart insights.

Making the right LMS choice for your business

You can’t choose a learning management system for the enterprise without having completed the following steps. 

Understand corporate learning needs

To start with, it’s important to define the learning needs of your organization. This can be done by setting clear goals that your company wants to achieve. Additionally, the HR department can conduct anonymous surveys and polls to identify any knowledge gaps among employees. You can also refer to the reports generated by your current Learning Management System (LMS) to understand the needs and preferences of your employees. By gathering all this data, you will be able to gain a better understanding of the current status and requirements for corporate learning in your enterprise.

Matching features to enterprise requirements

As soon as you have a clear understanding of the corporate learning needs, you can enlist the desired LMS features. All the data that you gathered while analyzing the goals and needs of corporate learning will help you define the enterprise requirements for the software.  

The cost-benefit analysis of different LMS solutions

Before buying an enterprise LMS, you have to weigh all the possible options. Conduct an in-depth analysis of each LMS solution available on the market. Measure the benefits and the cost of each ready-made enterprise learning management system.

Why custom-built LMS is more beneficial

Unfortunately, businesses that choose a ready-made enterprise LMS may become a bit disappointed with it later. According to the survey, the main reasons for companies’ dissatisfaction with their current LMS are limited functionality, inefficiency, and difficulty using the software. To cope with those issues, businesses often have to implement other solutions.

Top 3 motivations for businesses to replace their LMS

The truth is, no off-the-shelf solution will ever meet the company’s needs the way a custom-built enterprise LMS will. Even a feature-rich, ready-made LMS is never a 100%  perfect fit. Because it was designed with standard functionality that may not cover some unique company’s demands. 

A custom enterprise learning management system has many advantages, such as:

  • full compatibility with current enterprise software - integrating a custom-built LMS with any business systems that the company already uses won’t be a problem;
  • high scalability - a custom enterprise LMS can grow and change with the business needs of the company. If you need to add a few features, optimize processes, or scale the application up, your development team can make any sudden changes;
  • better security - your development team will follow the security protocols that your business needs;
  • ownership and complete control - with a custom-built LMS for your enterprise, you don’t depend on any third-party vendors. You own the technology and can modify it in any way you want;
  • better maintenance - you cannot rely on the support of a ready-made app the way you can on 24/7 maintenance of your own app. The dedicated developers will make sure your enterprise LMS works smoothly and without interruption;
  • cost-effectiveness - custom LMS development is cost-effective in the long run. It may look like a large expanse at first, but it comes without subscription fees, increasing costs, or recurring unplanned expenses. 

So, if you want an LMS to meet the unique needs of your enterprise, choose custom software development. This way, you won’t regret the investment and search for the system replacement later. 

Wrapping up

According to Gartner, 83% of organizations want to build a people-centric culture. Modern companies understand that a business’s success depends largely on its employees’ success. That is why today organizations choose to invest more in the learning and development of their workers.

Enterprise learning management systems help businesses effectively train employees and form a bond with them through learning. Implementing LMS results in high staff retention, better employee engagement, and productivity. An enterprise LMS makes onboarding and compliance training easier. Also, it’s a cost-effective solution that reduces the training expenses. 

Keep in mind that enterprise LMS applications differ. The ready-made systems available on the market have their own peculiarities and limitations. They may not have real-time technical support or offer poor scalability. The custom EdTech development, on the other hand, will always meet your business needs. With a dedicated software development team, you can create an enterprise learning management system that covers the unique demands of your business. 

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If you want to evaluate the state of your current LMS or create an enterprise LMS from scratch, contact ElifTech. Our software development experts will help you with the task. 

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