Looking to investigate new LMS solutions and want to create an LMS business case? We provide the complete guide.
Implementing a learning management system isn’t a simple process.
In order to get buy-in, you need to create an LMS business case in order to get stakeholder approval.
Whether you’re starting from scratch with a new LMS, or you are one of the 42% of organisations who use an LMS but are thinking of replacing theirs, creating an LMS business case is essential.
Keep reading to learn:
- What an LMS business case is
- The purpose of an LMS business case
- What to include in your LMS business case
- How to improve your LMS business case
Let’s get started.
What is an LMS business case?
An LMS (learning management system) business case is a structured document that presents the rationale for implementing an LMS within an organisation.
It outlines the specific business needs, benefits, costs, and potential risks associated with adopting an LMS.
The purpose of the business case is to provide decision-makers with a clear understanding of why the LMS is needed, how it will benefit the organisation, and what the investment entails.
Related: LMS migration: a step by step guide to making the switch
What is the purpose of an LMS business case?
An LMS business case is an essential tool for advocating for the adoption of an LMS by showcasing its value, addressing concerns, and ensuring that the investment aligns with your strategic goals.
Related: How a Totara LMS can help you achieve your goals
When you’re pitching a new LMS, or a tool to replace your previous solution, it will help to have a business case to hand.
Not only does it show you understand the cost benefits and have researched solutions, but it also acts as a central resource for deciding parties.
Some key benefits of an LMS business case include:
Justify investment: Demonstrate the need for the LMS and provide a compelling argument for the investment.
Inform decision-makers: Provide comprehensive information to help stakeholders make informed decisions.
Highlight benefits: Clearly articulate the benefits of the LMS, such as improved training outcomes, cost savings, and increased compliance.
Outline costs: Present a detailed breakdown of the costs associated with the LMS to ensure transparency and accurate budgeting.
Identify risks: Highlight potential risks and provide mitigation strategies to reassure stakeholders.
Related: LMS implementation process: a step-by-step guide
What to include in your LMS business case
So now we know what an LMS business case is and why it’s so essential when you’re considering a switch, what exactly do you need to include?
Of course, you might want to tweak your document on a case by case basis, but there are a few elements that can really help you to sell your point.
You should include the following in your LMS business case:
Executive summary
The executive summary should encapsulate your argument and clearly identify the issues you’re facing, and show how an LMS is the solution.
It should be concise and confident so you can grab the attention of the decision makers from the very first page.
Make sure to include:
- A problem statement: What gap will the LMS address
- The proposed solution: Explain that an LMS is a strategic solution to the current organisational issues you’re facing
- Expected ROI: Add data where you can and show the cost-benefit where possible
- KPIs: What are you using to measure the effectiveness of a new LMS, what data do you currently have?
Supporting evidence
The supporting evidence is the backbone of your case. It’s where you prove your claims are more than just words.
This is where you need to add statistics, research or quotes to support your argument.
Make sure you include:
- Stats and figures: Back up your stance with proof that can’t be denied and that helps to tell the story
- Testimonials or expert opinions: What are those in your team who are struggling, saying? Use their voices to help sell the proposition
- Industry benchmarks: Use industry stats to further justify your case
Objectives
What do you hope to achieve by implementing an LMS? Maybe you want to up your compliance, improve learner engagement or sell learning content.
Setting out key goals that are ambitious, achievable and relevant to your organisation will show how you’re prioritising the needs of the company.
Make sure you include:
- Metrics: Highlight what key metrics you want to track, and show your current standing.
- Forecast goals: Using your current goals, try to predict how your chosen stats could be impacted by implementing a new LMS.
Options analysis
Now you’ve outlined what you hope to achieve, you now need to present the findings of your research into a new LMS.
Show which solutions you considered and evaluate what they included.
Even better is if you can create a matrix of what is included in each with simple check boxes. This makes your analysis scannable, and it easily identifies the strongest candidates.
Proposed solution
Once you’ve gone through all of the solutions you considered, now you can present your chosen LMS.
Highlight its key features, why you want to choose this LMS, and compare it to some of the other high scorers.
Make sure you include:
- A detailed description of the recommended LMS and its features plus how it will be implemented.
- Highlighted features that are essential to your company; even better if they are new to your LMS.
- An overview of cost, but not too much detail. We’re coming onto that next.
Cost-benefit analysis
This is where you will get most of your questions when it comes to implementing a new tool.
Stakeholders will want to know all of the costs involved beyond just core pricing.
Budget and cost doesn’t just account for the outgoings, it also factors in where you’ll save and even earn back your investment.
Make sure you include costs like implementation, maintenance hosting and training.
But alongside that, include the benefits too.
Whether that’s cost savings, improved performance, saved compliance fines etc.
Make sure you include:
- Initial set up costs: Sometimes there are one-off charges for hosting, licensing, installation etc.
- Ongoing expenses: What costs can be expected on a yearly bases such as subscription, maintenance, upgrades and so on.
- ROI projections: Can you cost for any savings? How will implementing a new LMS impact your return on investment?
Implementation project plan
Outline the roadmap of tasks and timelines that will be needed to successfully roll out your LMS.
Your LMS provider should be able to provide you with this.
Make sure you include:
- Key milestones: From initial planning to launch, make sure you cover all key bases so that stakeholders know what to expect, when.
- Assign tasks: Specify who is responsible for what.
- Costs and details: Highlight how much it’ll cost for each task, the manpower required and any tools needed.
Risk analysis
When implementing any new tool, you will need to identify any potential roadblocks and how you will circumnavigate them.
This will show that you’ve fully understood the risks, and that you’re prepared mitigate for any potential issues along the way.
Conclusion
The conclusion, or final summary, is the place to make your closing argument.
Summarise your business case by reiterating the key points for a new LMS.
Make sure you include:
- A recap of the problems you’re hoping to address
- A summary of the proposed solution
- A recap of your chosen LMS and why it is the preferred solution
- ROI and cost recap
- What next steps you need to take
A summary of the business case, reiterating the recommended action and expected outcomes.
How to improve your LMS business case
Do you already have an LMS business case and are looking for some quick wins to improve it?
Improving your business case for an LMS allows you to enhance its clarity, comprehensiveness, and persuasiveness to ensure it effectively communicates the need and benefits of the LMS to decision-makers.
Related: 8 L&D trends you need to try
Here are some strategies to improve your business case:
1. Understand the audience
When it comes to implementing a new tool, you need to understand the audience it’s going to impact the most.
Make sure the LMS you choose is tailored to the audience that’s going to be most impacted by it.
However, when it comes to your LMS business case, you need to tailor the language and insight to address your stakeholders.
They might not be the direct end user of the tool, but they will be concerned with cost savings, compliance and employee development.
2. Use data and evidence
When it comes to implementing a new LMS, you can expect to get a long list of questions from stakeholders.
Come prepared.
Back up your proposition with quantitative data, case studies, survey results and more that show the impact a new solution will have.
3. Highlight strategic alignment
When creating your LMS business case, you need to ensure that the organisation remains the priority.
That means showing how the LMS aligns with your strategic goals and objectives and how it could support long-term growth and efficiency.
Wrapping up
Crafting a compelling business case is step one in getting a new system.
But many fall at the first hurdle.
Hopefully, with our guide in tow, you can create an LMS business case that is perfectly suited to your organisation.
With a well-constructed business case, you’ll be well-positioned to demonstrate the significant value an LMS can bring to your organisation, paving the way for enhanced training outcomes and organisational success.
Not bad!
Learn more about our Edition of LMS, or, if you want to see it in action, book a demo with our team.
We will show you how to use the key features of Totara, as well as all the bonus extras that we’ve built in.
Get our LMS business case template
We’ve built an LMS business case template that you can access for free, right here 👇👇