A modern addition to the management of education, learning management systems (LMS) are designed to simplify the administration side of teaching and learning. This can include handling student rosters, course materials, assignments and grades, and other support functions.
With the increasing use of digital tools in schools, online teaching and self-directed elearning modules, use of LMS is likely to continue growing in the future. While this may make new LMS ventures appear attractive, significant established companies in the marketspace, along with minimal barriers to entry, suggest caution when considering this.
Features of LMS Platforms
The variety of possible features in an LMS is significant, and can vary greatly depending on the learning context is it used in. They can track attendance, host online classes, track student submissions and relay feedback and grades, link with parent/guardian communication, and many other tasks. These systems are, by necessity, highly customizable to the unique requirements of each client institution. The extent that a client users the various features will relate to the value they see in the system: a school only using attendance tracking will see less benefit in the system than one that uses their LMS as a complete student and data management system.
For more than basic class use, setup and maintenance of these systems is an important aspect to be considered. These tasks could be conceivable done by three roles:
- Teachers/administrators who perform setup on the LMS as a side task to their primary work
- A dedicated LMS administrator at the client organization who is solely or largely responsible for LMS setup and maintenance
- Staff at the LMS vendor who complete setup and maintenance work on behalf of their clients
In reality, there will likely be some mixture of these roles: larger setup steps done by specialists, with teachers able to input and customize their specific resources.
Technical support needs should be carefully considered in evaluating the viability of any LMS venture, as they will be highly important to potential clients. This can be broken down into several factors:
- Nature of Tasks – Some functions, such as entering and tracking assignment tasks, will most likely be viewed as value adding functions and consistent with normal work of teachers, thus clients will not be averse to performing them. More technical aspects, such as uploading files to a web server, may be perceived as outside of the scope of the client’s work, and they will be resistant to engage with them.
- Cost of Support – Hiring dedicated LMS staff can represent a significant cost, especially for small organizations. The benefits of an LMS need to be sufficient to justify this. Relying on vendor support may be a compromise, although as the frequency and complexity of requests increases, the total cost may reach the point of hiring a full or part time administrator.
- Existing IT Infrastructure – There are free or low cost LMS systems available, such as Moodle. However, the interactive nature of an LMS requires more sophisticated hardware and web hosting than basic informational web pages. If a potential client does not have an online presence more sophisticated than a typical blog hosting service, it is unlikely that they would have the required systems or knowledge to implement one of these offerings.
- Education and Training – To ensure both acceptance and optimal use of an LMS, training support may be required, especially if the organization is switching to a new system. Who this will be provided by would be part of the considerations when selecting a new provider, as the inclusion of live or recorded training, job aids, etc. would be a positive feature as part of the overall value provided.
Evaluating the LMS Market
Enthusiasm for new LMS proposals should be tempered by considerations of existing competitors and the overall nature of the business. Significantly, the low barriers to entry of the market make this a saturated space: the technical features of existing offerings are not terribly complex and easily replicated. The fact that details are tailored to the individual client’s needs makes competitive features hard to establish, and are likely to be focused on the setup and support aspects.
Many current LMS systems use a software as a service model (SAAS), with hosting done on cloud-based servers and clients accessing use browsers or mobile apps. The model has appeal to clients, as it minimizes the amount of hardware and software support they need to do specific to the LMS. For vendors, it offers a subscription based business model, with ease of implementing new features and allowing clients to opt in or out of different add on. Not needing to support software reduces the development and support that dedicated packages would require. The ability to scale easily and cheaply is significant, allowing firms to support a large client base and rapid growth. However, the SAAS approach does make it relatively easy for clients to switch providers if a more attractive offering becomes available.
To understand some of the strategies in play, here are some examples of prominent LMS systems:
- Google Classroom
Google Classroom focuses on a teacher centric offering, with modest features for administrators. It focuses on K-12 education. Basic functions are available in a free plan, and the integration with other free Google products, such as Google Docs and Gmail, make this an attractive offering.
https://edu.google.com/intl/ALL_ca/workspace-for-education/editions/overview
- Moodle
As an open source product, Moodle is available completely free, however, this requires the user to have the expertise and resources to host and setup the system. Other firms offer hosting and setup services, and as they do not need to develop the software, can be expected to be very competitive on pricing.
- ManageBac
ManageBac appeals to schools by providing an LMS tailored to specific school curricula, such as the International Baccalaureate or Advanced Placement programs. By capturing the language, details and unique requirements of these programs, it aims to offer a valuable product with minimal setup and repetition costs. Additionally, it integrates with other offerings for admissions, plagiarism detection, etc.
- Canvas
Currently the most widely used LMS system, Canvas offers an extensive range of features and support options. This range of customization means that Canvas does not position itself towards one market exclusively, but offers features for K-12, tertiary or corporate learning and development.
https://www.instructure.com/k12/products/canvas/canvas-lms
Opportunities For New Ventures
Despite the existence of substantial and mature competitors, new proposals remain worth considering based on the size of the potential market. Several approaches seem especially viable.
- Targeting Small Institutions
While most schools or educational institutions would benefit from a modern LMS, the costs may be a deterrent to smaller scale operations. Finding a model to offer a valuable but low cost offering to these schools could be viable. As individual clients would not provide considerable income, a solid plan to market to a large number of potential clients would be essential.
- AI Integration
Although many uses of AI tools in LMSs are conceivable, a significant advantage could be found in utilizing them to simplify and automate the setup, maintenance and training aspects. Using an AI system to create a user friendly interface could make the technical aspects less demanding, which would reduce the need for support staff, either with the vendor or client. Reducing the workload for maintenance, and creating more customized feedback to help questions would address significant concerns of clients, and the use of AI to deal with these factors would reduce the overall cost of the service, thus increasing it’s perceived value.
- Niche Markets
Finding a subset of users with specific needs could be an opportunity to create a tailored offering that had not been previously addressed. Major regional and international curricula are easily identified, but opportunities could conceivably be found in non-traditional contexts. An example would be Skillshare, which hosts teaching content from independent teachers in a variety of creative and technical subjects.
- Data Security and Privacy Needs
With ongoing developments in data management regulations, the competitive landscape may shift in certain areas to create opportunities. Restrictions may exist on where personal data is physically stored (i.e. the actual data centers supporting cloud-based applications), cross border communications or dealing with companies from certain countries.
Although this may create some potential opportunities, a high degree of diligence will be involved. Even if restrictions remove major competitors, the environment is likely to have many significant limitations and government regulations that need to be complied with, potentially outweighing the benefits of the market. For example, internet restrictions in China prevent use of Google classroom but also bar many other companies unless they are able to cooperate sufficiently with local policies. Additionally, these restrictions can change and disappear – the province of British Columbia previously had regulations against out of country data storage for student information, but this restriction has been lifted.
Conclusion
The use of an LMS in modern education is unlikely to diminish, and increased integration and new features quite likely. Despite this, the current market is highly saturated with sophisticated offerings, making a new product a challenging proposition. Opportunities need to be evaluated carefully. Based on the conditions discussed, the most likely avenues for success are by focusing on small and underserved markets as opposed to mass market strategies. Cost competitiveness will be key, as sufficiently funded niche markets will likely have already contracted existing vendors to create suitable products for them.
References
Adminuser. (2023, October 8). 11th Annual LMS Data Update. Edutechnica. https://edutechnica.com/2023/10/08/11th-annual/
Canvas LMS for schools: Product. Instructure. (n.d.). https://www.instructure.com/k12/products/canvas/canvas-lms
Explore bundles. ManageBac. (2024, January 15). https://www.managebac.com/mb-bundle#dp
Google. (n.d.). Learning tools & educational solutions. Google for Education. https://edu.google.com/intl/ALL_ca/workspace-for-education/editions/overview/
Learning management system – moodle LMS – best LMS platform. Moodle. (n.d.). https://moodle.com/solutions/lms/
Online classes for creatives | skillshare. Skillshare. (n.d.). https://www.skillshare.com/Zhang, E. (2022, October 4). Changes to privacy law: FIPPA, Data Residency Rules and Privacy Impact Assessments. Clark Wilson LLP – Vancouver Lawyers | Vancouver Law Firm. https://www.cwilson.com/changes-to-privacy-law-fippa-data-residency-rules-and-privacy-impact-assessments/