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27.07.2015
The most used LMS software feature is trainee testing (cited by 73 percent of users), followed by training administration (68 percent). LMS software positively impacts the organization of content and training efficiency for 99 percent of users surveyed.
The top challenge for LMS users is the integration of LMS software with other systems, cited by 32 percent of survey respondents. The vast majority use LMS software on their desktop computers (89 percent) and laptops (76 percent), while just 19 percent access these solutions via smartphone. Ninety percent of survey respondents plan to maintain or increase their investment in LMS software over the next year.
LMS solutions provide businesses and educational institutions with the ability to manage online training and learning programs for their employees.
The evolution of LMS software is allowing more businesses to invest in and benefit from these human capital solutions. While large corporations will generally have more resources to spend on an advanced learning system, an LMS can be a useful tool for a business of any size. When asked what functionality of their LMS software respondents use most, 73 percent say trainee testing, while 68 percent say training administration.
These findings correspond with the intended purpose of LMS software as a platform for developing and managing e-learning. She goes on to explain that having a Web-based LMS allows organizations to reach a wider audience, which benefits both the learner as well as the organization or individual conducting the courses. Based on this data, it is reasonable to conclude that organizations that adopt an LMS can expect to see a similarly positive impact on the effectiveness of their training. While an LMS can benefit a business in many ways, like any type of software it is merely a tool; not a fix-all solution. The biggest obstacle is trying to integrate an LMS with other systems, cited by 32 percent as a moderate to major challenge.
According to SuccessFactors’ Brandau, a LMS should be easy to configure and integrate with other systems, including talent management applications such as performance management, succession and career development planning.
According to Jared Stein, the vice president of research and education for Bridge, an LMS provider, this can be an expensive venture. Although many LMS vendors use mobility as a key selling point for their software, the majority of respondents in our sample access their LMS from a desktop computer (89 percent) or laptop (76 percent).


According to Honig, this move to the cloud has essentially eradicated the previous lifespan of an LMS. Web-based systems meet companies' need for consistent, ongoing training for the long term because they're continually updated without requiring reinstallation. To get a better understanding of the LMS market landscape, we also surveyed respondents on which specific system they use. Foreman attributes the wide variety of LMS products used to the fact that vendors specialize in different features or functions and service different market segments.
Foreman goes on to explain that there are also vendors that specialize in different market sizes and cater their products to suit the needs of those businesses, be it small and midsize businesses (SMBs) or larger corporations. The marketplace is also divided by vendors servicing vertical industries, such as those who orient their business toward only hospitals, manufacturing companies, or financial institutions.
When we asked survey respondents about their future investment in LMS software, 45 percent say it is expected to moderately or significantly increase in 2015. These findings are consistent with a study cited in Forbes, which states that the market for LMSs is one of the fastest growing segments of HR software, currently estimated at over $2 billion and continuing to grow. The data here shows that companies recognize this need for training, and have either already invested in an LMS or are planning to do so. Foreman has written extensively about how to successfully implement an LMS to avoid challenges and have the benefits associated with the software come to fruition.
Top benefits of LMS software include more organized and consistent delivery of training material, which can lead to improved job performance, better retention of data and increased employee engagement. As with any tool, LMS software must be carefully selected, implemented and utilized to yield positive results.
Sixty-three percent of LMS users in our sample work for companies with 500 or less employees, with the largest percentage of respondents (20 percent) from businesses with 51 to 100 employees. We found similar results when we looked at the annual revenue of LMS users’ companies. Nearly 80 percent of respondents work for companies that had an annual revenue of less than $250 million. By enabling consistent learning experiences, an LMS can help improve an organization’s ability to meet its strategic goals.
MarketsAndMarkets predicts the LMS market near $8 billion by 2018, with North America leading the marketplace in terms of revenue contribution.


This report will help potential LMS buyers gain an understanding of how their peers are currently using their LMS software to help them make a more informed decision.
They also align with the three main factors that drive companies seeking to adopt LMS software in the first place, according to Mark Brandau, vice president of solution marketing for SuccessFactors. We next asked the LMS users in our survey what the top challenges they experience with their system are. According to Steve Foreman, president of InfoMedia Designs, this is why there has been a shift away from highly customized, on-premise LMS solutions toward more configurable cloud-based solutions in recent years. Only 25 percent of users access their LMS from a tablet while, 19 percent use their smartphone. In the first of several articles in Learning Solutions Magazine, Foreman outlines five crucial steps to follow when evaluating and selecting an LMS.
In fact, most report their organizations have seen enough of a positive impact that they plan to continue or increase their level of LMS investment in 2015. This suggests that SMBs are now utilizing and benefiting from an LMS in rates similar to those of larger corporations.
The largest group of users in our sample work for companies that have an annual revenue of $10 to $50 million.
We screened our sample to only include respondents who worked in HR and used LMS software at least monthly. This report will help potential buyers of LMS software learn more about this technology to better guide their purchase decisions.
To combat this, companies increasingly have to educate and train employees to reach certain standards.
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.



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