Building a business case for a learning platform (LMS & LXP) | The definitive guide

Author:
Nelson Sivalingam
PUBLISHED ON:
February 23, 2025
June 26, 2023
PUBLISHED IN:

If you’re putting together a business case for a learning management system or learning platform, then your business is literally our business! Or at least it will be if we pull off a compelling argument that conveys learning platforms as vital to the development of people and progress towards company success.

Firstly, remember that the purpose is to convince a decision-maker that your proposition is worthwhile. Keep it brief, convey the essential information in an interesting way, talk positively about the future, and hammer home the benefits. Here are a few of the key points your business case should include and address.

  • Justify why you need a learning platform
  • Present the costs and ROI
  • Discuss the risks and benefits of using and not using a learning management system or platform
  • Present a number of options and your recommendation
  • Support your argument with numbers

These key points and the structure for your business case apply regardless of whether you’re choosing a learning management system (LMS) or learning experience platform (LXP). If you’re unsure which might be best, we’ve explained the differences here. If you’ve already got a good idea, it’s time to focus on how you make a compelling argument for why you need it.

Justify your need for a learning platform with these statistics

The cost of the skills shortage

The cost of neglecting learning and development is steep, with the UK’s national skills shortage costing businesses £6.6 billion in higher salaries, recruitment costs, and temporary staffing. (Great Place to Work, 2024)

A lack of career development only makes this worse. 88% of the UK’s Best Workplaces for Development provide individualised career plans, proving that businesses investing in employee growth are better positioned to tackle skills gaps.

It’s not just an HR problem—it’s a top concern for leadership too. 78% of UK CEOs report experiencing a skills shortage in their organisations, highlighting the urgent need for workforce upskilling and reskilling. (PwC UK CEO Survey)

Without structured learning and development, businesses risk falling behind. Investing in skills not only fills immediate gaps but ensures long-term business resilience and growth.

Learning helps me adapt (LinkedIn Workplace Report 2025)

Developing, engaging and retaining employees

It’s not just about learning in the flow of work—learning platforms create clear pathways for employee development, giving people the tools to build new skills and progress in their careers. The bonus? Increased engagement and retention, strengthening your LXP or LMS business case.

Here’s what the numbers say:

  • 88% of organisations are concerned about employee retention, with learning opportunities being their No.1 retention strategy. (LinkedIn Workplace Learning Report 2025)
  • 84% of employees say learning adds purpose to their work, and 68% agree it helps them adapt during times of change.

By investing in employee development, businesses don’t just improve engagement and retention—they strengthen their workforce, future-proof their organisation, and improve overall business performance.

Measuring the impact of career development (LinkedIn Workplace report 2025)


Using learning platforms to drive profitability

If we told you that time wasted searching for information could cost over £6,000 per employee, per year in lost hours and productivity, would you be shocked?

The average employee spends 25% of their working day looking for knowledge. With average UK hourly pay at £14.80, that adds up to £6,216 annually in lost productivity.

A learning platform doesn’t just boost efficiency—it reduces the cost and time spent on formal training. Studies show that e-learning:

  • Cuts training time by 40-60%
  • Reduces expenses for travel, instructors, venues, and time away from work

And the return on investment is huge. According to Accenture, the average ROI for training is 353%—meaning for every £1 spent on training, businesses see £4.53 in return.

Put simply, investing in learning isn’t just good for employees—it’s good for business.

Structuring your business case for a learning platform

How to structure your business case for a Learning Platform

The executive summary

This is the greatest hits of your business case: following the same structure, picking out the key points and selling them in a compelling fashion that convinces the decision-makers. For some, this is the only section they’ll read or the influential factor in whether they continue beyond the summary. It’s recommended that you write this last, or at least finalise it as your final act.

Why do you need a learning platform? Address the problem or opportunity

The important thing is to establish the context that led you to this point. Have you reached the limit of the system(s) that you’re already using? Are you operating without a platform and that’s created a different ceiling to learning and development? These are two of the likely reasons you started looking into learning systems and platforms.

Two strings to your bow here are your ability to link it back to the company’s goal or vision and the inclusion of any data that supports why this issue needs to be addressed. If it is a case of replacing the current platforms, you should provide details on why they’re no longer fit for purpose or providing a return on your investment. Ideally, you should be impartial and factual at this point.

Dive into the specific L&D goals

Setting the general scene is absolutely vital, but so is explaining the more specific goals a platform will help you achieve. You can also think of these as the smaller problems or opportunities through which you highlight who will benefit and to what extent. Ultimately, this helps your cause as it shows how you plan to use the learning platform in practical and relevant scenarios.

  • Will it help you create a more efficient onboarding process that enables joiners to contribute sooner?
  • Do your customer-facing teams need better access to more useful resources?
  • Is knowledge currently being buried in silos where it should be shared?
  • Are you facing an upskill battle when it comes to developing the traits and competencies your team’s need?
  • Could it be the key to addressing poor levels of staff engagement and retention?

Think of the specific instances and pain points that drove your search for a learning platform.

Discuss the competition

If there’s one guaranteed way to get attention, it’s bringing up how your competitors are using and benefiting from learning platforms, especially if you can draw on some data. If you can’t get the scoop on your rivals, support your argument through insights on a similar company from a related industry. As we’ve alluded to throughout this, hard data will trump anecdotal evidence in your business case, so make sure you crunch a few numbers.

Assess the available platforms and options

You will have drawn up a shortlist of learning platforms, and this is the time to present the risks and benefits, costs and implementation timelines for each. Remember, doing nothing is also an option, so it’s important to address the risk and cost of no action.

Your recommended learning platform

You’ve been factual and diplomatic up until now, so it’s high-time you unleashed your passion for driving a better L&D future through your desired platform. There are a few ways that you can do this: you may choose to further explain the risks and benefits of adopting this platform, you might outline the project timeline in detail to highlight when the decision would pay dividends or discuss who will be involved in its delivery.

The important idea is to show that you’ve considered the resources required and the scale of moving to that platform.

Sell what the platform will help you achieve – ‘Features tell, benefits sell’

Possibly the best way to present your argument is to forget about the features and focus solely on the benefits and value your preferred tool offers. This is more powerful because you can talk about how it will positively impact return on investment, which is arguably far easier when talking about an LXP or ILP.

You could focus on how they cut down the time it takes to search for knowledge, which increases employee productivity and helps create a culture of learning at the point of need. In turn, that reduces the training costs associated with the traditional methods of learning and development. Learning platforms also cut down the ramp up time for new starters, by connecting them to useful knowledge and people in one searchable platform. Combine all of these points and you’re more likely to engage and retain your employees, meaning the cost of staff churn is reduced.

Conclusion

Keep this short and sweet. Simply summarise why it’s important to address this problem and reinforce why the plan you’ve proposed is the most effective way of solving it.

Download the Template

Your PDF version of building a learning platform business case/LMS business case.

Need help with your learning platform business case?

Putting together a business case can be daunting, right? Especially if you’re not familiar with learning platforms!

We’d be happy to lend an ear if you’ll give us a few minutes to discuss the benefits of HowNow.

Check out our other learning management system (LMS) resources