The Accelerating Need for Custom LMS Solutions

by Fransic verso
Accelerating Need for Custom LMS

As the demand for more robust and specialized employee training continues rising, an increasing number of US organizations are seeking custom learning management systems (LMS). Off-the-shelf LMS products often cater towards generalized customer scenarios, lacking the specific tools and configurability needed for certain use cases. This has fueled substantial growth in the custom LMS development space recently. 

US Market Projections

Spending on corporate training reached over $90 billion in 2022 within the US. As budgets continue shifting towards digital learning platforms, the US LMS market is expected to grow at over 12% CAGR, approaching $30 billion by 2030. Within this expanding market, custom LMS deployments are becoming the preferred choice for enterprise organizations.

According to expert projections, over 65% of US-based companies will rely on a custom or heavily customized LMS solution within the next few years.

What’s Causing the Surge in Custom LMS Demand? 

There are a few underlying factors that continue propelling the demand for tailored LMS capabilities:

Need for Specialized Functionality

Corporate training requirements vary greatly across industries and organizations. Custom LMS development provides the flexibility to build specifically to those specialized needs – from role-based permissions to compliance tracking to integration with other workplace systems. Of companies recently surveyed, over 80% wanted functionality not offered in standard LMS platforms.  

Desire for Customized User Experiences

Creating familiar and consistent experiences across workplace systems has become vital for employee technology adoption. Custom LMS solutions give organizations the power to tightly align interfaces, styles and workflows with established internal branding and usability standards. 

Concerns Over Data Security  

Learning programs often handle sensitive employee records and confidential development plans tied directly to business strategy. The ability to manage data policies, access and governance centrally rather than rely on external multi-tenant SaaS providers has therefore become a priority for L&D.  

Interest in Emerging Learning Innovation

There has been surging interest around next-gen learning technology like VR/AR simulations, adaptive learning driven by AI, and video microlearning. However, availability of these capabilities in off-the-shelf LMS products has lagged. Custom development provides a path to rapidly experiment and rollout innovative features.

Evolving Compliance Landscape

Regulatory and compliance training needs have become intricately woven into broader corporate learning initiatives. Custom LMS solutions enable building this directly into the platform’s design – from encrypted lesson delivery to automated assignment workflows to extensive audit reporting.  

Best Practices for Custom LMS Success

When exploring a custom LMS project, there are a few key best practices to consider:

Foster Executive Stakeholder Buy-In 

Gaining IT, Finance and other executive sponsorships beyond just L&D stakeholder desires ensures broader organizational alignment and support.

Assemble a Cross-Functional Team

Technology, data, security, training and change management leaders should all have input into requirements and design. 

Prioritize Must-Have Use Cases

 Focus on building for the 2-3 top specialized training scenarios rather than trying to address every possible future need.

Design for Scale and Agility

Creating flexibility to quickly add new features and scale capacity cost-effectively gives long-term value.

Leverage Platform Expertise

An experienced LMS platform architect knows how to craft tailored solutions while optimizing licenses, infrastructure and integration expenses.  

The demand for customizable learning systems with specific functionality continues rising across US enterprises. With a thoughtful approach, custom LMS solutions can pay both short and long-term dividends on an organization’s workforce development investments.Copy textCopy HTMLDoneRefuse

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