8 Key LMS Investment Questions To Consider When Building A Business Case

8 Key LMS Investment Questions To Consider When Building A Business Case
Summary: Building a business case for a new or replacement LMS can be overwhelming, but it doesn't have to be. Check out these basic tips and download a comprehensive guide to get started.

Key LMS Investment Questions To Consider When Building A Business Case

Organizations today face extreme changes in the learning requirements of their workforces. Particularly, the influx of Millennials into the workforce has shifted the way organizations need to create and deploy their learning.

These new sets of learning requirements are forcing companies to rethink their learning strategies, and world-class organizations are responding to the challenge by rethinking their learning technology selections. That’s the key point in a new report published by Brandon Hall Group and distributed through Docebo, one of the world’s leading eLearning solution. The goal the report is to help organizations think through the technological decisions and business case for the right learning technologies.

The report focuses on why companies need to rethink their learning technology decisions and what type of Learning Management System is required to meet the rapidly evolving needs of the learning audience.

One key aspect the report focuses on is some of the key LMS investment questions to consider when trying to build a business case for a new Learning Management System (LMS), and that’s something we will discuss here.

What You Need To Consider When Building A Business Case For A Learning Management System

With an investment in a newer Learning Management System, organizations will need to consider the following questions related to resources, including:

1. Budget.

  • What is the budget for learning management technology?
  • What are we currently investing in and what are we planning to invest in for the future?

Determining your organization’s learning budget is critical before moving forward with a selection.

When companies invest in on-premise solutions, IT departments typically are responsible for HR technology. When companies invest in SaaS or cloud solutions, the Learning and Development function usually becomes responsible for the budget.

When thinking about the budget, companies should consider what they have spent in the past, what they can spend today, and what is realistic for the future.

2. Pricing.

  • What is the cost of a next-generation system and what is the pricing model available to us (pay per user, subscription model, licensing model, implementation fees, etc)?
  • What happens if the price escalates after the first year?

After determining the budget, understanding pricing options is a critical component for selecting a system. Since many factors influence pricing, it is nearly impossible to compare different pricing models for these systems.

The most important thing that companies need to consider is what they are spending on every aspect of product capabilities, implementation, and upcoming releases. Companies can combat this challenge by asking very detailed questions about pricing. They also must plan for additional costs such as implementation services, training or additional users.

3. Implementation.

  • Do we need third-party support for implementation?
  • What is a realistic implementation timeframe?
  • Will HR or IT own implementation?
  • Do we need training post-implementation?
  • Do we need a global implementation strategy?

LMS Implementation is challenging for many companies and frustrating when you have expectations about when and how you will be able to use your system. Companies must develop a plan for rolling out their technology – possibly by region or by business unit. Companies must also be patient when implementation does not go smoothly and plan accordingly with additional resources if needed.

4. Timeframe.

  • When do we need to revisit our existing contracts with our technology providers?
  • When do we need to upgrade our technology?

Companies often look to replace technology when it is time to upgrade their existing technology. Companies look at what options are available and if a new system will be able to meet its individual workforce needs. The timeline will depend on a company’s existing technology and its readiness to change.

5. Delivery Model.

  • What is our preferred delivery model?
  • If we currently use on-premise solutions, what resources do we need internally to support a SaaS or cloud-based system?
  • If we currently use on-premise solutions, what resources do we need internally to support a SaaS or cloud-based system?

Many organizations have a delivery model preference or requirements based on their overarching company strategy and policies. For example, industries with high-security needs require an on-premise or hosted model. The majority of next-generation learning management system providers offer an on-demand Software as a Service (SaaS) model or a cloud-based solution.

6. Integration.

  • How will we handle integration?
  • What existing solutions do we need to integrate with?

This high degree of integration in learning can feel overwhelming for organizations feeling pressure to select and implement a system in a short period of time. In order to maximize the level of investment in these systems, organizations need to consider the long-term implications of an integrated strategy and begin any communications and change management to support this strategy before investing in a system.

7. Metrics.

  • How do you measure the real impact for your organization?
  • Which metrics do we need to measure the effectiveness of our learning management system?
  • How will this system enable competency and skills progression as well as productivity and performance?

Metrics include both traditional learning metrics such as course completions and course satisfaction. For a better understanding of what metrics to consider and how to translate these metrics to business leaders, please see the “Metrics” section below in this report.

8. Learner Experience.

  • How will this solution improve the learning experience?
  • Is the technology simple and engaging?

Organizations of all sizes are looking for ways to engage with candidates on a daily basis. In fact, nearly 60% of companies found that enhancements of learning technology had a significant impact on their employee engagement scores. Technology solutions should provide a simple experience that encourages better communication and engagement between employer and job seeker.

But this is all only a part of the picture. To get a true sense of how to develop a proper business case for a new learning technology solution, download the full Brandon Hall Group report from Docebo free today and better arm yourself to win the solution you need to progress your learning and development journey.

eBook Release: Docebo
Docebo’s LMS transforms how enterprises & corporations onboard, develop, enable and educate customers and partners. Docebo scales from 500 learners to thousands - from content creation, management, delivery, to measuring business impact.