Learning Experience Platforms or LXPs are in their prime in the newly overhauled corporate world we live in. Market statistics show that the LXP market is set to grow at a whopping 25.3% CAGR globally, from USD $508.5 Million in 2020 to an estimated USD $2186.4 Million in 2026.
The LXP concept began with a few new LMS features that were seemingly unheard of just a few years ago, but surprisingly experienced a growth trajectory at a rate that was far above average. The term became popular in the late 2010s when Learning Management Systems began to take on features that are now considered as typical of Learning Experience Platforms. UK based Fosway, Gartner and other industry leaders have also recognized the need for a separate name i.e., Learning Experience Platform (LXP) or Learning Engagement Platform or Learning Productivity Platform. The term (LXP) has since stuck, and many have debated whether there really is a need to replace their LMS with an LXP. The answer lies in understanding the basic differences between the two and what the corporate world today is in dire need of.
LMS vs LXP
It is to be noted, that despite marked differences, the LXP is an advanced version of the LMS! So, the claim that the LMS is being replaced, is not quite right. Every good product needs upgrades and the LXP is the LMS’ step-up to meet current and future corporate learning needs.
Who’s in the market for LXPs?
Those who are looking for personalized learning: Intelligent discovery!
In today’s content-stuffed world, learners are often frustrated looking through mountains of data and scores of courses, then not finding the course or piece of information that they were looking for. Intelligent discovery, used to identify learning content and to define personalized learning pathways, was hard to come by with a simple LMS. Something more powerful, driven by smart technology, was needed. The AI-driven recommendation engines with smart suggestions to view/learn expert-authored content are key features of the Learning Experience Platform that allow learners to quickly search and find what they’re looking for. Follow-up learning and personal growth is much easier with an LXP.
Those who are looking for employee-centered learning
Since 2020, businesses across the world are focusing on employee development, making employee satisfaction and engagement a high priority as L&D transforms into its new normal model. You’ve probably heard that the LXP is L&D’s own ‘Netflix’ for good reason.
So, if the LXP is our Netflix, then the LMS is Cable TV.
Back-to-back courses queued up for future learning show how a learning pathway is laid out for individual learners – placing employees at the center! All that the learner needs to do is express their interests or goals, and the map is laid out for them to follow one step at a time with the flexibility to change their route whenever they want or need to.
Those who are looking to bridge the skills gap
The Covid-19 pandemic created work environments and business needs that were never seen before. Businesses have had to reskill and upskill their employees to fill needs they hadn’t anticipated. Mckinsey reports that operational automation has caused a shift in the skill profiles of jobs in the future. In order to keep up with the new skill requirements, the learning function itself also must undergo transformation! Consequently, the goal for HR has changed from talent-acquisition to talent-building or creation. The LXP has proven to be the solution to all these new L&D needs. This is one of the prime reasons why the LXP has gained tremendous acclaim and continues to grow at a breakneck speed over the past year and a half.
The LMS is a great tool for managing content, but personalization, learning pathways, collaboration, and recommendation engines are not on every LMS’ features list. L&D is rapidly evolving, and HR technology, such as the LXP, has the potential to expand into employee driven learning, high performance teams, and create the base for talent experience platforms. With current market needs for online and blended learning modes, the need of the hour is LXPs.
Market research studies show that the global Learning Experience Platform (LXP) market was estimated at USD 508.5 Million in 2020 and is expected to reach USD 2186.4 Million by 2026. LMS vendors stand to gain much by including LXP features in their product offerings. Once LXP features are available, vendors must then reposition themselves to take advantage of the thriving LXP market. LMS vendor brands will be able to capitalize on their existing LMS target audience and their vast LXP target audience will expand their customer base. This means shifting product focus and ramping up marketing communications to reflect new positioning. LMS vendors must take the leap to stay relevant in our new world.