In an era of digitalization, the education industry is also adapting to current trends, especially after the COVID-19 pandemic.

With the rise in the WFH culture in corporations across the world and the demand for ebooks and other such materials increasing, the need for a customized Learning Management System (LMS) is also being felt by organizations.

In this guide, we will discuss in detail how to develop a custom LMS, the key features to include, types of LMS platforms, and the latest trends—like AI-powered learning that are transforming online education. Let’s dive in.

What’s a Learning Management System?

A Learning Management System (LMS) can be defined as software designed to aid in the learning processes allowing educators to create, share, and manage various courses online.

Some of the key features of a Learning Management System are course management, user and group management, gamification, etc.

Why is it Important?

Developing a Learning Management System is important due to the following benefits-

Partner Training– Sharing materials and information is easier with LMS, fostering better collaboration between the cross functional team.

Customer Learning– LMS development plays a vital role in equipping the client sitting at a distance with the relevant information, avoiding customer loss.

Employee Training– Streamlines employee training by centralizing the training materials and fosters digital learning, preparing them for industry advancements.

HR Tools– Foster’s conversion of physical files into digital format, developing software, and automating other tasks performed by the HR department.

Till now we have underlined the meaning and importance of developing LMS. Let’s explore the types of LMS.

Types of LMS You Can Build

Learning Management System has the following types-

1. Open-Source LMS

A free, open-source learning management system can be customized to any requirement. But you need a skilled developer for custom LMS software out of free code. May lack reliable support.

2. Commercial LMS

Commercial learning management system software costs money and can only be customized by an owning company. So, you, as a client, might lack some desired features. On the other hand, you get solid and continuous support.

3. Installed LMS

An installed or hosted LMS works on your premises and uses your servers to store data. Therefore, it is highly secure and can be infinitely customized. However, you need an in-house server rack for installed LMS development and maintenance.

4. SaaS LMS

The Software-as-a-Service (SaaS) learning management system is hosted on the cloud and is maintained by the vendor. As a client, you pay a subscription fee and fully focus on training. There is little opportunity for customization, though. This might be the reason to build your own LMS system.

5. Integrated LMS

Learning Management System development can involve integration with third-party apps. These can include social networks, calendars, talent management systems for HR functions support, email, and more.

6. Non-Integrated LMS

Some LMS solutions can limit their functionality to the core features. The goal of these LMS types is merely to provide users with a single source of important information.

Must-Have Features of a Customized Modern LMS

1. Course Management

The main reason for a Learning Management System development is course management. It allows the users to create new online courses and manage the existing ones. But you need a good editor who can implement tools for working with text, images, and video files.

2. User and Group Management

While developing edtech software the integration of this feature holds great significance for building a clockwork network system.
It allows teachers to organize the students into groups, assign assignments to individuals or groups, and more.

3. Gamification

This feature is often designed to make the learning process interesting by making it more fun. Example- Creating a simulated transition to the next level, introducing a system of prizes on the completion of tasks, increasing user engagement and satisfaction.

4. User Roles and Permissions

It allows editors to customize access to specific course units, information, and functionality to ensure data security, providing users with the necessary trust for your platform.
Additionally Role- Based Access (RBAC) allows adherence to security standards and educational regulations such as GDPR in Europe and FERPA in the USA.

5. Testing and Assessments

Testing and assessments are necessary to analyze growth and areas of improvement for the students.
Therefore this feature should have multiple tools for creating different types of assessments from simple to quizzes and long explanatory answers and for setting time limits etc.

6. Reminders and Announcements

Reminders are essential for almost every activity that is taking place on the LMS whether it’s for assigning tasks or updating new course material etc.

7. Reporting and Analytics

In-depth analysis allows you to find out the results of the training. Apart from awarding grades and generating the grades, the data provided can suggest areas of improvement in the curriculum.
Keeping track will give you an idea regarding the completion of assignments like which one is taking time etc.
We have a basic understanding of a Learning Management System, its importance, features, etc. Now let’s move on to the development part of it.

Basic Features	Advance Features
Course Management	Gamification
User and Group Management	User Roles and Permissions
Reporting and Analytics	AI-Powered Proctoring
Testing and Assessments	Automated Assessment Generation
Reminders and Announcements	Virtual Tutors

Licensing vs. Building an LMS: What’s the Right Choice for Your Organization?

Identifying the prospects of building vs licensing an LMS is crucial before diving into the development steps. Licensing facilitates faster Time to Market over a subscription-based pricing model, ranging $2-$10/ user, a month. For some enterprises, it may vary between $20-$40/user, a month, depending on the features and number of users. These cover Operational Expenses (OPEX) such as hosting, technical support, regular updates, and standard integrations. While being a cost-efficient approach, it offers limited customization support for specific workflows or branding needs.

On the contrary, a customised LMS offers enterprises complete command over the solution from UI and branding to features and integrations. The inaugural development costs (CAPEX) could be $25,000 to over $100,000, based on complexity, technical stack, and geographical region of the development team. Though it comes with a hefty initial investment, its advantages, such as reduced dependencies on third-party apps, complete data ownership, deeper integrations with internal systems, and a customised learning experience for the users, makes it a profitable deal in the long run.

If you want to build, identifying your objectives and target audience, the core and advanced features, choosing the right tech stack and building a Minimum Viable Product (MVP) which can be upgraded as per user feedback and usage insights becomes crucial.

Step-by-Step Guide for Custom LMS Development

Step 1: Identifying the Objectives for LMS Development

The first step is to identify and define the objectives of development LMS as it plays a crucial role in identifying the target audience.
The objectives may vary from company to company depending on their requirements and so does the target audience.
Several factors play their part in determining the target audience. These are –

1. Educational Qualification– Analyse your audience on the basis of their educational qualification. Are they corporate employees, university students, or professional trainees? This will help you tailor the LMS accordingly.
2. Skill Levels– Consider the varying skill levels of your users to ensure the LMS caters to beginners, intermediate learners, and advanced users.
3. Demographics– Gather demographic data such as age, location, and preferred learning styles to create a user-centric design.

Step 2: Defining Core Features

Once you have identified your target audience, defining the core features of your edtech solution shouldn’t be a daunting task anymore.
After understanding the audience’s needs and demands and studying the other factors completely, the core features should be decided.
For the further simplification of the task. These could be divided into two main categories. These are-
Essential Features– These can also be termed as the basic features. Without them, a Learning Management System is of no use, like course creation tools, user management, etc.
Optional Features– These are certain additional features which make your LMS attractive in terms of user engagement but are not so important for the functionality of the Learning Management System—Ex- Gamification, social learning too etc.

Step 3: Choosing the Right Stack for LMS Development

The selection of the right Stack is very crucial for developing a LMS which is functional and stable at the same time.
Four types of technologies are crucial to build an LMS. These are-
Frontend refers to everything a user can see and interact with within a product. Languages such as HTML5, CSS3, and JS are used in front-end technologies.
Backend– The user doesn’t engage with them directly, but it can be termed as the base of the Learning Management System. Certain Backend frameworks are Nord.js, Django, etc.
Databases– Choose a reliable database management system like MySQL, PostgreSQL, or MongoDB for data storage and retrieval.
Hosting– For hosting purposes Amazon Web Services (AWS) and Digital Ocean can be used due to their enhanced security and reliability features.

Step 4: Building a Qualified LMS Development Team

Having a skilled and experienced team is a must for performing any task effectively and so it is for LMS development.
Building an in-house LMS development team is a one-time investment and is, therefore a costly affair too. For long-term projects, it is the best thing you can have.
If you require a team for a one-time project, outsourcing is a better option. It is cost-effective and time-saving.

Step 5: Developing Appealing UI/UX

Responsiveness is probably the most important feature of a Learning Management System. You should focus on creating an LMS that is visually appealing, compatible with all devices like mobiles, laptops, and tablets, and is responsive to all the Operating Systems
Moreover, the UI should cater to every individual, including persons with disabilities, ensuring that every user gets an intuitive experience.

Step 6: Creating the First Version of Your LMS

This step is generally performed to access the market response with a demo product before releasing the main LMS. It is done with the help of MVP, which stands for Minimum Viable Product.
Moreover, it serves another purpose: the client can start generating revenues as soon as this first version is developed, irrespective of the project timelines.

Step 7: Rolling Out the Final Product

Once all the required checks are completed and no errors are found then the final code is uploaded and your Learning Management System is now fully ready for a release.
After the rollout process is complete, you should keep an eye on the user feedback and improve the functioning of your Learning Management System accordingly.

Understanding the Latest Trends in LMS Development

As time progresses, technological advances shape the future of learning and the learning management system.
Certain trends that have emerged as defining for the LMS are-

Micro-Learning

Micro-Learning is an easy and quick way to pass on information. It presents information in small chunks allowing the learners to revisit it anytime.
It is very useful for organisations with little time for training. These modules provide important information in an easy-to-understand manner. Besides this, it is also-

• Cost and Time-Efficient
• Personalized to Learners
• Unbiased and Purposeful Knowledge
• Can be used on any device in any location
• More comprehensible for learners

AI Integration

Artificial Intelligence is everywhere. In LMS it is being leveraged as virtual assistants helping the students in going through the module etc. The reason behind AI being so popular in LMS development is due to its faster translation ability of modules. Other benefits of AI Integration include-

• Real-Time Questioning
• Natural Language Processing
• Improves Accessibility
• Generates Fresh Content
• Personalizes the Learning Experience

Mobile Learning

The most convenient way of learning today is with the help of mobile. It has offered multiple benefits at the same time for the learners as well as the teachers such as effectiveness and flexibility etc.
According to a market research website, almost 67% of the people access the learning materials through their mobile devices. It also makes tracking of the learner’s progress easier for the tutor.
Some other benefits are –

• Formal Training
• Instant Learning Ads
• Informal Training
• Self-Directed Learning
• Social or Collaborative Learning

Video Learning

This technique makes learning more fun and engaging for the learners. It is easy to understand as compared to written text as well as easy to create for the trainer or tutor.
Moreover it allows the learners to learn by themselves rather than depending on a dedicated educator whether it’s from youtube or any other learning platform saving the learner’s time and money.
It is highly customisable as you can learn at your own pace at any time, anywhere. Also you can revisit the course if you want for free (especially when it’s on YouTube)
It can also be used in

• To complement or supplement corporate training needs.
• As stand-alone instructional modules or as a connected series.
• To promote informal learning.
• To improve social or collaborative learning.
• To support instructor-led training (ILT) and virtual instructor-led training (VILT).

Gamification




It is another feature used to make learning interactive and fun that also plays a vital role in boosting engagement in your Learning Management System.
Educators and corporate trainers can use this feature very effectively to simplify concepts and take a good chunk of time otherwise.
Some other benefits are –

• Higher engagement
• Better completion rates
• Higher recall and retention
• Quicker application of the learning material
• Proficiency gain
• Influences behavior

Conclusion

Development of learning management systems can be underlined as the need of the hour due to rapid technological advances and user needs. Through this blog, we aim and hope to paint a clear picture of the overall LMS development, its features, and other factors that influence the development processes that you have a more clear picture of LMS development and its importance.
In the hunt for custom LMS development services; our team is all set to accomplish the project requirements for you.