Investing in an LMS development is a profitable strategy if it’s implemented effectively. If you own or run a business, a learning management system can improve staff knowledge and performance, reduce attrition, boost brand credibility, and save a lot of money and time. The Harvard Business Review names dissatisfaction with staff development as one of the key reasons for high turnover rates. When replacing an employee costs an average of 20% of that employee's salary — that’s $15,000 for a staff member on a $75,000 salary — it’s far more efficient to invest in LMS development to grow employees’ professional skills and performance, and reduce attrition.
If you’re planning to build an LMS as a product to sell, it’s still a good idea, but it may require more effort and it will require in-depth study of the market. And, of course, you need to have a clear image of your customer. If you’re planning to develop an LMS for schools, be prepared for tough competition as you’ll compete with giants such as Google Classroom. Your product has to be unique, innovative, and efficient to be competitive. You’ll also have to follow government regulations for educational software, and be ready to jump through bureaucratic hoops to sell your LMS. On the plus side, you might be able to access public funding if your LMS idea brings real value to educational management.
The corporate LMS market seems to be easier in terms of both access and competition. That said, note that you will have serious rivals including Adobe Systems, PowerSchool, IBM, and Blackboard. However, don't be discouraged. Be prepared and study the market for opportunities. For example, MarketsandMarkets research highlights how gamification in learning management platforms is a winning idea.
Gamification enhances learning, making it easy, fun and engaging. Combine this with an innovative idea, robust business planning, and a clever full-featured final product and your LMS platform should be very competitive.