The Learning Management System (LMS) market is worth about $5.2 billion today, and will be valued at roughly $16 billion in four years.1 These impressive statistics indicate that learning management systems offer massive benefits to organizations. In fact, 75 percent of companies use learning management systems to manage corporate training programs. Organizational leaders are finding that in addition to delivering, tracking, and reporting training, an LMS can also help keep company expenses down.
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Learning Management Systems Save
All Types/Sizes of Organizations Money
Learning management systems are money-savers not only for small- and medium-sized companies, but also for huge, wealthy organizations. According to IBIS Capital, 41.7 percent of Fortune 500 companies were utilizing eLearning tools three years ago.2 A learning management system is a unique eLearning tool because it is equally useful to a wide variety of organizations, managing their training initiatives and reducing expenses.
An LMS Significantly Lowers Corporate Training Costs
The main way an LMS lowers an organization’s bottom line is by reducing corporate training expenses. This statement may seem contradictory since learning management systems require an initial investment. Company leaders should consider that the right LMS often gives a good ROI, lowering training costs over time. As eLearning Industry said, “Returns on Investment models have shown huge savings on training expenditure by using a Learning Management System and eLearning courses.”3
Our blog article Is a Learning Management System Really Worth the Investment? stated,
“Although an LMS does involve an initial investment, the right type of LMS will eventually lower a company's costs of training. eLearning expert Christopher Pappas wrote, ‘There are a number of examples proving that eLearning is in fact lowering the cost of employee training. Research has shown that moving your training online not only allows you to allocate valuable resources to other areas of your budget, but also makes the training process even more effective.’”
Besides diminishing training costs by making processes quicker and more effective, moving training online erases the need for paper products, physical classrooms, and travel related to training.
Major Companies Save Millions After
Moving to Online Training
When a company makes the switch from classroom-based training to online training, which is most efficiently accomplished with the right LMS, that company will likely save money. Growth Engineering reported that major companies like Dow Chemical and Nortel saved millions after making this move:4
- Nortel saved $7.7 million between 2005 and 2006 after implementing online training.
- Dow Chemical cut training costs from $87 per employee to $11 after launching an online training model. Overall, the company saved $34 million.
Even outside the corporate realm, online learning is saving organizations huge sums of money. For example, The Hybrid Classroom estimated that online learning cuts costs for universities by about 57%.5
Reduce Expenses with TOPYX LMS
Are you researching ways to save your company money? If so, consider launching an LMS like TOPYX.
- Fully-hosted
- Full-featured
- Free of any hidden/per-user fees
- Competitively priced
- Discounted for select nonprofit associations
- Award-winning
Request a free demo of TOPYX LMS to find out more about how a learning management system can save your company money.
If your company’s current LMS isn’t doing great things for its bottom line, it may be time to try something new. Read our blog article 3 Signs You Need a New LMS to decide whether or not a different eLearning system would be an asset to your organization.
References
1. CNBC. A lesson plan from the tech giants on how to transform education. https://www.cnbc.com/2017/03/28/microsoft-google-and-facebook-see-billions-in-future-of-education.html. March 28, 2017.
2. SkyPrep. Nearly half of Fortune 500 companies use e-learning. Why aren’t you? https://skyprep.com/2014/12/16/nearly-half-fortune-500-companies-use-e-learning-why-not-you/. December 16, 2014.
3. eLearning Industry. How a learning management system benefits your organization. https://elearningindustry.com/learning-management-system-benefits-organization. July 1, 2016.
4. Growth Engineering. Companies who cut training costs with online learning. http://www.growthengineering.co.uk/cut-training-costs-with-online-learning/.
5. The Hybrid Classroom. How online learning can cut costs by 57%. http://www.gettingsmart.com/2012/10/the-hybrid-classroom-how-online-learning-can-cut-costs-by-57/.
