EdTech Trends 2023: a Guide for Entrepreneurs

Today, the demand for developing distance learning systems is extremely high. This trend has been driven by the surge in demand for online learning, largely due to the impact of quarantine restrictions. Therefore, creating your own EdTech project is a promising and highly profitable business. Let's dive deeper into this topic.

EdTech development involves using advanced tools and technologies to create a more engaging and inclusive learning experience. A few years ago, educational technology primarily meant using computers for learning. Now, the term encompasses tablets, interactive online courses, and even cloud-based learning platforms. When discussing the development of a distance learning system, let’s explore its features and break down exactly what it entails.

The audience for EdTech projects, particularly LMS platforms, goes beyond just schoolchildren and students.

It's no secret that educated employees work harder and faster, quickly acquiring new skills, and easily transitioning into more specialized roles. We discussed the specific advantages of using corporate LMS systems in business in our previous article.

LMS platforms are not only useful for school and university students but also for those who want to continue their education outside traditional institutions (e.g., online courses to enhance skills and advance in their careers). A mobile app enables users to learn from anywhere, even between meetings.

Online distance learning systems allow:

• Supporting teachers by offering adaptive distance learning features that allow students to learn at their own pace;
• Simplifying course attendance with mobile tools for recording video calls;
• Motivating and engaging learners by incorporating gamification into lessons;
• Building learning communities by allowing adult learners to create online courses, include Q&A boards, and use chat tools for accessible communication.

Gamification in Online Education is Not Just for Kids

Gamification in education refers to a unique approach that integrates game design elements into the learning environment to boost motivation and student engagement. Educational technology tools adapt game mechanics and motivational techniques to introduce competition into the learning environment, fostering behaviors necessary to achieve learning goals. For example, game tasks give students a sense of control, tapping into their intrinsic motivations. Additionally, learners can set goals and compete with themselves or others.

Advantages of Gamification Elements in EdTech Projects:

• The use of goals, achievements, and reward systems boosts long-term motivation, satisfaction, and productivity;
• Gamification creates a more relaxed, collaborative learning environment, enhancing productivity;
• It fosters a sense of belonging and helps learners align themselves with educational goals;
• Gamified LMS introduces innovative dynamics and game-based learning that helps students develop various skills and enhances learning efficiency and engagement.

There have been several key reasons for the recent shift towards gamification in learning:

• Over 50% of adults with mobile devices admit they play games, and this number continues to grow, along with interest in games;
• Games increase loyalty and improve retention in organizations;
• Alongside children, adults show increased success in learning through games.

However, we must differentiate between games and gamification. Games are used solely to engage audiences, while gamification incorporates game-like features but with clear educational goals.

Thus, gamification in EdTech projects is a modern and highly effective approach to achieving various goals in human resource management, team building, marketing, sales, or education.

LMS Platform Requirements for Server and Storage

Many believe that a massive server and extensive cloud storage are necessary for the full functionality of educational technologies. However, modern serverless architecture (or microservices) proves otherwise.

Serverless architecture (or microservices) provides the flexibility to adapt to constant changes without worrying about the intricacies of operating systems, servers, storage capacity, and other technical aspects.

Launching an EdTech Startup and Monetizing LMS Apps

With so many free educational apps available, why would people pay for yours? The good news is you can offer your app for free to download and still make money. Let’s look at the main monetization strategies.

• In-App Purchases: One of the simplest ways to make money from your app is by offering users premium educational materials/courses/worksheets or products. These can be physical or virtual but intended for in-app use.
• Advertising: A common monetization strategy for apps, including educational ones, is displaying pop-up ads that generate revenue whenever users click on them. It’s important to ensure that the ads are relevant to education and appropriate for the age group of your learners.
• Subscription-Based Learning: The issue with ads is that they can interrupt users during their learning sessions. You can offer subscription-based learning, where users pay a monthly or annual fee to access the app without interruptions. In return, they gain access to valuable content/courses/lectures/videos.
• Partnerships with Educational Institutions: Another way to monetize educational apps is by partnering with educational institutions, especially if you have a unique and valuable LMS offering.

Cloning Existing LMS Projects

Cloning a business or project means duplicating its model and functionality. However, this doesn't guarantee that your project will be as successful as the original.

Take Uber, for instance. Its unique feature was offering professional on-demand rides. Once its business model was proven successful, it was cloned by others, but with innovative twists. As a result, another service captured its share of customers and became a thriving business.

You can borrow the idea, concept, or even business model of an educational technology project. But the only way for your version to thrive is to solve a problem that the original doesn't address, adding significant value. This isn’t exactly cloning—it requires more effort, analysis, market research, and creativity.

Staying on Top of EdTech Trends

One of the most common mistakes in developing distance learning systems is assuming changes happen slowly. Those considering launching a project may feel uncertain, as slow development can impact revenue.

The broad adoption of innovations like Augmented Reality (AR), the Internet of Things (IoT), Virtual Reality (VR), and Artificial Intelligence (AI) in education, alongside global universities offering online courses, is driving the growth of the EdTech market worldwide.

Perhaps you're interested in learning about the key players in the EdTech market. Some products are everyday tools, such as those from Google and Microsoft.

What Will Sustain This Market? The continuous and inevitable digitalization of the education sector worldwide. Traditional approaches will no longer work, and there is a high demand for innovative and customized distance learning solutions.

The Impact of Online Learning Systems on Student Engagement

There are common myths that educational technologies aren't engaging enough for students. However, online learning systems can actually be quite captivating. For example, let's consider distance learning platforms that utilize VR and AR technologies: learning with integrated Virtual Reality (VR) and Augmented Reality (AR) transforms students from passive observers into active, motivated participants in the educational process.

With these technologies, students can actively interact with the learning environment. Additionally, they can visualize what they're studying and feel as though they're truly immersed in the educational experience. The rapidly developing LMS industry is poised to take AR/VR to the next level on its exciting path forward.

To enhance the learning experience and overall program effectiveness, educational software incorporates artificial intelligence technologies, such as machine learning. A key trend in AI for education is conversational learning, also known as chatbots. This technology offers interactive, two-way communication and can be tailored to students.

Personalize learning by developing a unique profile for each student, then adapt the learning materials based on their abilities. Automated assessment tools help evaluate student performance and provide feedback, reducing the workload on teachers. Chatbots can be used for various educational purposes, such as student admissions, assessing learning outcomes, and even as a teaching assistant.

Key Considerations for LMS Platform Development

To make your project scalable and sustainable, you must stay aware of changes and trends across all sectors of the local ecosystems it belongs to: government stakeholders, education innovators, investors, customers, and end-users.

Develop a strong data culture: create a foundation for data compatibility and standardized criteria for innovation. One of the most significant challenges in LMS projects is ensuring the system meets the development needs of every student. While big data has not been widely utilized in traditional education settings, it has become increasingly popular.

Here are three ways to use data in LMS:

• Descriptive Analytics: Focuses on using all available data to accurately describe the current situation. Results are often visualized using charts/graphs, etc.
• Predictive Analytics: Used to forecast events based on data comparisons.
• Prescriptive Analytics: During the learning process, each student leaves a unique data trail. Analyzing this data is highly beneficial for identifying knowledge gaps and helping students achieve their goals.

Digital learning systems generate large amounts of data on student behavior, interests, and interactions with content. This data can be analyzed to improve the overall educational process or specific aspects of it.

Supporting Sustainable LMS Business Models:

• Develop a project that meets market needs;
• Follow a financial strategy that doesn't jeopardize all your efforts;
• Build strong partnerships to secure long-term revenue.

Invest in talent: train your development, implementation, and support teams to increase productivity and become a recognized player in the market.

Provide objective proof of your high-quality product or service through communication platforms that share information with the relevant audience and maintain open channels for engagement.

It’s important to find your niche and the right team for you. By asking the right questions and listening closely to the answers (trends, data, financial reports, etc.), you'll gain insights into when and how to take your project to the next level.

The Relevance of Distance Learning Systems

Learning Management Systems (LMS) in EdTech are used for the administration, documentation, tracking, reporting, automation, and delivery of educational courses and training programs worldwide. For some unknown reason, people sometimes think LMS is "dead."

As a centralized platform, LMS is criticized for leading people to be less proactive in seeking new information beyond it. As a result, less active individuals may never progress beyond the system in terms of personal development. Critics of LMS point out that it focuses primarily on students within the system, rather than the system itself. They advocate for an ecosystem approach, which means creating a learning environment that is much broader than traditional LMS.

The old LMS model includes:

• A homogenous workforce;
• Low tolerance for risk;
• Organizationally oriented technology;
• Heavy emphasis on compliance;
• Low budget flexibility.

In contrast, a multifunctional ecosystem approach involves:

• A diverse workforce;
• High tolerance for risk;
• Employee-centered development;
• Greater focus on exploration;
• High budget flexibility.

It's too early to claim that LMS is "dead." You don’t need to stick with an old LMS if it no longer meets your needs. There's a strong reason to adopt new approaches and make it more relevant to current demand. LMS is still alive and functioning, but its features have greatly expanded.

An LMS should now be outward-focused, encourage unlimited development, and include specific features such as:

• A management dashboard for internal communication, additional information, and notifications;
• Certification programs to encourage understanding of products or services;
• Communication strategies for marketing purposes;
• Learning pathways for student achievement and advancement;
• Returning to our earlier point—gamification to keep learners engaged and satisfied.

EdTech Development Market Competition

In recent years, the number of LMS startups has skyrocketed. Currently, there are over 8,000 firms, with one-third of them based in the United States. One surefire way to ensure your project's success is to analyze your competitors and offer something they don't.

After the pandemic, digital education has solidified its place as a new top priority. We’re seeing two contrasting situations: high unemployment rates and companies struggling to hire. This is why there are opportunities for reskilling, helping people find jobs and businesses improve employee training to stay competitive.

So yes, competition is fierce, but the rewards are worth it.

Conclusion

EdTech projects and tools hold unparalleled potential for the modern education system. Advanced learning tools can facilitate the development of strong, lasting knowledge that goes beyond what students can discover on their own. Developing an entirely new online learning system is undoubtedly challenging, so it’s crucial to work with a web development company that not only delivers quality but also helps guide you through all stages to select the best plan.