Why the gains from a learning management system outweigh its costs

1 min read

To provide a learner-centric learning experience, it is essential for
organizations to invest in the right Learning Management System. More organizations are finding that their existing learning methodology isn’t meeting business needs.

The question that arises is whether a LMS is the right investment for the future?
It helps if you illustrate costs, benefits, risks and time to have more clarity on investment better. It makes the company’s payback period for the LMS transparent and clear.

Creating a business case examines the feasibility of an investment with exact figures of the company’s spending clearly defined.

• Expenditures for the employees professional development.
• Manual administration of employee training courses. This includes both labour and material costs
• The analysis also extends to parameters that directly or indirectly impact revenue growth.

What is measured in a LMS business case
The focus is on the cost savings on what the learning platform offers
compared to traditional employee training measures.
• Costs and revenue potentials should be equally examined.
• Expenses related to training and professional development are listed.
• Evaluation of factors affecting revenues. Based on these cases,
• secondary calculations can also be used for specific departments of the company.

How does calculation work?
• The calculation on an LMS business case looks at the entire training and professional development process. Along this process, the parameters that can be influenced by the LMS are filtered out.
• Travel cost savings achieved by moving training courses from a face-to- face format to a virtual platform.
• Reduction in production error rate through more engaging and efficient training.
• Revenue increase through a shorter time-to-market cycle.

A well-maintained and well managed LMS can avoid such unnecessary training,
as comprehensive competence management is employed to automatically
match each employee with the most suitable training courses.

At Acadle, we offer you comprehensive learning management system that
enables organizations to build online academies for every purpose.


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