What is an LMS?

An LMS is a software that enables you to create, manage, and deliver eLearning courses to empower learning and development for their learners for a continued company’s growth, success, and revenue.

A Learning Management System (LMS) is designed for the administration, tracking, reporting, automation, delivery, and management of training courses or learning and development programs.

The acronym LMS explained:

Learning - An LMS helps deliver online courses or training to an organization’s employees, customers, and partners.

Management - HR managers can easily organize, manage, and track their online courses, learner progress, and easily analyze the training program’s effectiveness.

System - In this context, ‘system’ refers to software that is used commonly by corporations, hospitals, government organizations, universities, and companies across different industries to deliver, track, and report on training programs.

Most LMSs consist of two primary user roles:

Admins are responsible for managing the Learning Management System, which involves a combination of various tasks like ensuring course creation, content management (creating training courses, learning plans, or contacting third party content providers), assigning employee groups to particular training plans, and tracking their learning outcomes.

An L&D manager works in the Admin Interface to create, organize, manage, deliver, and monitor eLearning courses, add learners, evaluate reports, automate notifications, and share data with senior management.

An LMS learner can be an employee, partner, or customer who is enrolled in a training program. Most LMS solutions facilitate personalized and streamlined learning experiences. The training is available on-demand and can easily be accessed by mobile devices. The learner interface in an LMS includes an intuitive dashboard that displays key training metrics as courses enrolled, assignments, grades, course completions, learner progress, and more.

LMS Types

Cloud-based LMS
A cloud-based LMS allows you to access and use the LMS without installing any software or hardware on your system. Users will simply need to login into their web portal to gain access to the LMS and its training content.

On-premise LMS
The On-premise LMS is built and installed to the specifications of the organizations on a physical server of their choice. The on-premise installation ensures the security of the user as well as corporate data compared to a cloud-based LMS, where the vendor is responsible for service and support; the entire LMS platform, its security, content, necessary upgrades- all are the responsibility of an organization’s internal IT department. However, the only downside is the additional costs associated with setup and maintenance.

Open-source LMS
An Open Source LMS is an eLearning platform that allows you to access and modify the code. For setting up, installing, customizing, and maintaining the LMS, you will need a dedicated IT team. Most Open Source Learning Management Systems don’t have any licensing costs but there are significant hidden costs that are associated with setup and maintenance.

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LMS Use cases

An LMS supports a variety of internal as well as external corporate use cases, including:

Employee development & retention
Organizationsacross industries use an LMS to train and upskill their employees. Within an LMS, training courses can easily be assigned to employees based on their job responsibilities, interests, experience, strengths, and weaknesses. You can easily ensure that they are being informed about product changes and are up-to-date on regulatory compliance, and more. For instance, you want to deliver compliance training to your employees; with the help of enterprise LMS, you can easily eliminate business disruptions associated with traditional training because now your employees will be able to access all the training materials on their mobile devices at their convenience. Moreover, enterprises can reduce their employee training costs in contrast with traditional classroom training. Administrators with the help of LMS can now deep dive into their training metrics to analyze its performance, course completion rates, effectiveness, and more with pre-built reports and reporting tools.

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Onboard recruits
A Learning Management System can be deployed effectively to support, simplify, and automate new hire onboarding for multiple departments across the globe via eLearning training programs. The key point here is that face-to-face training and onboarding for each new employee can be very time-consuming and costly. This is especially true if the organization is large with a high turnover rate. This is why most organizations utilize an LMS to shift onboarding training or at least a portion of this, online. New employees may struggle to remember the specifics of an organization’s history or compliance policies. However, with an effective online employee onboarding program delivered via an LMS, the recruits have access to all important information when they need it the most. You can also educate your new employees on the organization’s employee code of conduct, harassment policies, privacy guidelines, and more all via a one-stop center.

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Customer & Partner training
An LMS can also be deployed to train an organization’s channels partners (e.g., resellers). You can easily educate them on how best to market, sell, and support your products. This is an excellent way to improve your reseller programs and provide more value to your partners. For instance, if you are an agency that helps enterprises develop their employees’ technical skills, you can simply create a course in your LMS and share it with your clients. Another common LMS use case for enterprises is to provide training to their customers. This is especially common for software and technology companies where ongoing customer training provides more value to their customers and enables them to use their products easily. Whether you have sales professionals that need to go to market immediately or have access to just-in-time training, or a network of partners who require product training, an LMS makes the delivery, management, monitoring, and reporting of all this via an Extended Enterprise LMS.

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Sales Enablement
Most organizations want a deal to be “closed or won”. An LMS is essential to enable sales at scale by preparing sales professionals with the right knowledge they need, whether it’s about new products and services, new selling techniques, industry changes, or compliance. The system enables you to provide just-in-time training immediately following the new product releases. A Learning Management System also speeds up employee onboarding so that new hires can start selling immediately and help in retaining your top talent.

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Compliance training
With the help of an LMS, you can easily keep your employees updated with compliance regulations. With a learning platform, you can easily add new compliance standards to your online training in just a few clicks. Moreover, an LMS facilitates monitoring to ensure employees receive required training and what areas they need to improve. This is especially useful in the BFSI, Healthcare, or manufacturing industries.

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Pricing models used for LMSs include

This pricing model enables users to access the basic features of an LMS platform. When they start engaging with more advanced features and functionalities of the platform, a fee is added.

In this pricing model, users pay a recurring fee at regular intervals to access the complete functionality of an LMS. The subscription may require payment for each system user or may grant enterprise-level access to all features of an LMS.

Active User Pricing Model:
In this pricing model, you only charge your users based on how active they are. This means, only the users who use the LMS will be charged. Enterprises can enroll as many employees they want into the learning management system, but only those will be charged who use them.

This is either an annual fee that organizations must pay to renew services or a one-time fee that provides users with unlimited lifetime access.

Benefits of using an LMS

An LMS supports a variety of internal as well as external corporate use cases, including:

Save training costs
LMS platforms help decrease learning costs by eliminating expenses such as instructor fees, classroom rentals, travel, and printed material costs. You can have webinars/Virtual Instructor-Led Training as well as a digital repository for all learning material, thereby eliminating excess costs.

Rapid Content Update
Make updating your training content a seamless and swift task. Administrators can add new content modules on top of the existing training curriculum with ease. Traditional learning whereas would have required the trainer to create new material from scratch.

Remote Training
Provide effective training to your employees without the physical location barrier. Keep the momentum going with virtual training, regardless of employees working from home or other non-traditional work environments.

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Mobile Learning
Employees would have to leave their daily tasks specifically to attend training, thereby impacting productivity. Provide seamless access to the training material with the help of mobile-friendly applications, anytime and anywhere.

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Track results
Most LMS platforms come with analytics and reporting tools to help administrators identify learning gaps, generate user engagement metrics, and understand the ROI of training programs. This data provides valuable information about the efficacy of the training program, the requirements to improve performance management in your company, and provides clear development paths for employees.

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Promoting a culture of Continuous Learning
Offline training courses take a long time to organize, so they usually take place annually or on-demand. E-learning courses are easy to conduct and, along with online presentations and webinars, are inexpensive. Using an LMS for training ensures the continuity of improvement and employee learning.

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Efficient Compliance Training
In several cases, corporate employee training is geared towards legal compliance. A good LMS automatically monitors and reports on compliance levels and warns early on renewals. This is an efficient risk management tool when it comes to costs to avoid incurred in the event of non-compliance.

LMS Features

Most modern LMS solutions have the features listed below

User management
An LMS platform allows administrators to add and edit users, assign them roles and combine them into different groups.

Course management
This allows administrators to use various learning assets to create training courses. These courses can then be managed and administered to different groups across the organization.

Content Creation
Course authoring is another well-known feature of an LMS platform. It allows administrators to create custom courses using various interactive and multimedia elements like videos, images, and many more.

Content Library
LMS platforms also contain off-the-shelf training courses for their learners. This pre-built content access makes it easy to start training programs instantly.

Tracking & Reporting
This feature helps administrators track training performance at the user level and the course level. Instructors can use these analyses to evaluate their areas of improvement and increase their training efficacy.

Mobile Learning
The mobile Learning feature lets learners access their training content from any location and at any time via their mobile device. This helps improve knowledge Retention And Information Recall. And also allows learners to complete the training at their pace

Gamification and social learning
This is another widely used and preferred feature. The use of gamified elements such as badges and certificates helps boost learner engagement. It also increases employee motivation and accelerates course completion rates. Some LMS platforms promote informal learning techniques through features like Chat, Group feed, Discussion forums, etc. These features help enhance collaboration and training participation.

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Steps involved in using a Learning Management System to deliver effective training

Step 1: Create Your Training Courses
The first step is to create training material or upload existing content onto the LMS.
You can create new training courses from scratch by using a built-in Course authoring tool. Alternatively, you can also upload existing content onto the LMS platform. Some LMS providers let you embed content such as YouTube videos, webinars, and many other multimedia formats onto your Training Courses.

Step 2: Manage Users
The second step in the process is to categorize users based on their job title, department, skill level, certifications, etc. This helps in providing contextual and personalized training content. , Creating learning-based groups, and more.

Step 3: Deliver Training
The third step of the training program process is for the Administrator to plan and deliver the training program. The Administrator ideally should choose the best mix of training styles such as Virtual Instructor Training, self-paced online learning, Mobile learning, etc. Additionally, they can also choose to include features like gamification and social learning to enhance training effectiveness.

Step 4: Track & Evaluate Training Progress
Once the training program has commenced, the administrator/trainer needs to measure the learner’s progress and activity. LMS allows administrators to track, review performance, and gain insight into training impact with the help of reports and analytics.

An LMS can help track the number of key training metrics such as:

  • Active courses
  • User activity reports
  • Certifications and Reports
  • Course completion data
  • Overall Learner Engagement
  • Most viewed courses
  • Test/assessment scores

Why choose KloudLearn?

KloudLearn helps deliver high-impact business training with a simple, intuitive, and powerful learning management system. Create interactive training courses with a powerful course creation tool. Increase student engagement through gamification and social learning. Track training progress using pre-built reports and interactive dashboards. Training through the KloudLearn Zoom integration. Offer your employees a continuous learning experience with the KloudLearn mobile app. Contact us now and find out how we can help you transform your corporate learning. Get free access for up to 100 users.


A learning management system is software used by organizations to create, deliver, and track employee training, customer training, or partner training. An LMS is designed to manage a company’s training and development eg, identifying organizational and individual learning goals, tracking progress, ensuring training meets key industry standards, and analyzing key performance indicators.

Some of the key features of a learning management system include integrations, delivering personalized training experiences, data tracking, centralized learning resources, and flexible reporting and analytics.

To learn more about key features required in an LMS,

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The major purpose of an LMS is to create, deliver, track, and manage training in an organization all in one place. Furthermore, L&D professionals can use this data to identify various learning needs and deliver them on time to meet organizational goals and objectives.

Selecting the right LMS for your organization can be challenging especially when there are a lot of options available. There are numerous factors to consider when choosing an LMS such as whether or not an LMS is having features you are looking for or if it will fit your budget.

To help smoothen your process, we have shortlisted some tricks for you to consider while selecting an LMS for your organization.

How to Select an LMS: Top 8 Things to Consider

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