Comparison: McKinsey 7S framework

Although both businesses operate in the same market, it is clear from their descriptions that there are significant differences in their approach to providing a solution that affects how their software systems are used. These differences can be summarized using the McKinsey 7S framework, which identifies their operation structure and motivations.

Goals and shared values

The shared goals and values for each of the businesses identifies the similarities and differences of the problems they aim to solve and their value proposition:

IXL Learning

Nextpoint

Focus:

  • Technology first and foremost

Education:

  • Solve real world problems in education
  • Help teachers to teach and students to learn
  • Improve the learning process

Technology:

  • Focus on creating technology to reshape learning and teaching for the better
  • Belief in the power of technology enhancing learning through creativity
  • Mission to innovate education

Focus:

  • Learning strategy first and foremost

Education:

  • Break barriers to understanding math concepts
  • Provide an effective learning strategy for disadvantaged learners
  • Innovate teaching and learning for disadvantaged learners through strategy

Technology:

  • Focus on technology to assist executing the learning strategy
  • Technology as a tool to engage learners
  • Technology as a tool for extending the learning methods
  • Belief in the power of technology to enhance decisions in teaching strategy

Strategy

The strategy adopted by each business is a complete reflection of their goals and shared values, hence their strategy having an equivalent component for each of the identified core values:

IXL Learning

Nextpoint

Focus:

  • Identify problems in teaching and learning that can be addressed with the help of software technologies

Education:

  • Match software apps to their real world counterpart problem
  • Develop specific tools to improve engagement of mainstream teaching strategies
  • Help teachers and parents integrate the use of IXL Learning tools into their teaching and coaching routines
  • Provide a wide range of content to meet every area of the school curriculum

Technology:

  • Build software tools to match the needs of teachers and learners
  • Integrate creativity into learning exercises
  • Enhance the execution of teaching strategy through the use of IXL.com software

Sales:

  • Higher volume sales with lower sale pricing

Focus:

  • Identify the causes of problems in learning and develop learning methods to overcome them

Education:

  • Develop new ways to express math concepts using non math thinking processes
  • Teach learners to think of math inline with everyday thought processes
  • Engage parents and teachers concerned about learners who are struggling with math
  • Provide a specific range of content to match the tuition programs provided

Technology:

  • Build software components to match learning strategy concepts
  • Use software to increase learning engagement
  • Create software tools to influence delivery of tuition sessions
  • Build software that can make sense of learner progression for better lesson planning
  • Develop reporting tools that identify causes of problems for better decision making in teaching

Sales:

  • Lower volume sales with higher sale pricing

Skills

The models used by both businesses make use of many skills, that are shared between them, to produce and raise awareness of the core software components. The differences in how the business strategies focus their delivery of learning solutions introduce two main differences in the skill sets used. With IXL Learning focusing on international high volume sales, their learning product has been made available in 11 languages and hence requires skills in language translation. In contrast, Nextpoint only sell tuition services to a local geographical area within the UK and so hence can avoid the effort and expenses of language translation, but requires teaching skills in order to provide the tuition services that are sold to their customers:

IXL Learning

Nextpoint

  • Learning content design
  • Graphic design
  • Software development
  • Marketing
  • Project management
  • Customer support
  • Quality assurance / testing
  • Language translation
  • Learning content design
  • Graphic design
  • Software development
  • Marketing
  • Project management
  • Customer support
  • Quality assurance / testing
  • Teaching

Structure

Despite both businesses being involved in the development of software that focuses on delivering solutions for learning math, the differences in their goals, values and strategy results in a completely different structure for their operations. With IXL Learning trading internationally, their organization structure has specific departments with people engaging job roles matching a specific skill set.

On the other hand, Nextpoint is a micro business that operates a highly agile structure that keeps overheads to a minimum through the use of outsourcing to key partners and engaging staff across multiple activities; in short, the Nextpoint structure could be operated as a very small team or even as an individual:

IXL Learning

Nextpoint

  • Chief Executive Officer (CEO) who defines the overall direction of the business
  • Department teams, each having a director responsible for executing their individual area of the business strategy:
    • Finance/accounts
    • Sales
    • Marketing
    • Customer support
  • Product development:
    • Content development
    • Software development & IT
    • Product management
    • Quality assurance
  • Director of the business who defines the overall direction of the business
  • Director, staff and key partnership collaborators/suppliers contribute to multiple areas of the business strategy:
    • Finance/accounts
    • Sales
    • Marketing
    • Customer support
    • System development
    • Teaching

Style

The styles of business engaged by both are vastly different due to the differences in their structure and strategy. With IXL Learning being a much larger organization consisting of fixed departments that require more overhead commitments, there is a higher requirement for operations to be formal and structured so that each department can run in harmony with each other for executing the business strategy and further developing the software within targeted release schedules and budget.

With Nextpoint being a much smaller business and not making money directly from the software development, the business is able to operate in a less formal fashion. Best practices are still adhered to for ensuring the quality of software code, but with significant differences in job roles combining skills from multiple domains when required:

IXL Learning

Nextpoint

  • Structured and formal processes for co-ordination of departments
  • Emphasis on best practices for software development
  • Agile operation of business processes
  • Emphasis on best practices for software development

Systems

Despite both businesses operating different software business models in ways that are often the opposite to each other, they both share a dependence on software systems that are central to their operations. The main differences are in the customer facing systems used by each business, with IXL providing a much wider range of topics to make their subscription options more relevant and appealing, while Nextpoint only provides content and features that are related to supporting their tuition programs:

IXL Learning

Nextpoint

  • In-house developed learning software is the product sold to customers:
  • Access to learning exercises:
    • Wide range of topics
    • For use as revision exercises
  • Access to learning reports:
    • Generated by learning exercise interactions
  • Additional systems for:
    • Sales and marketing
    • Accountancy management
  • Additional systems for Communications:
    • Internal communications
    • External communications
  • In-house developed learning platform is the product to support and enhance the service sold to customers:
    • Ability to request tuition sessions
    • Access to tuition session history
  • Access to tuition program learning content:
    • Specific to registered tuition programs
    • For use as revision exercises
    • For use within tuition sessions
  • Access to learning reports:
    • Generated within tuition sessions
    • Generated via learning content interactions
  • Additional systems for:
    • Sales and marketing
    • Accountancy management
  • Additional systems for Communications:
    • Internal communications
    • External communications
    • Delivery of tuition services via Skype

Staff

With both businesses having a focus on using software technologies as a major part of delivering their education solutions, they share a strong emphasis for a large number of their staff and key partner collaborators to be involved in the production of the education learning content, whether this be through programming, design of graphics or concept design for software features. The key difference is in how staff of IXL Learning are hired for a very specific type of job, whereas Nextpoint as a small agile business will get staff and key partner collaborators in any area of the business that they have suitable skills to engage.

IXL Learning

Nextpoint

Shared values:

  • Interest in improving education through technology

Specialist roles:

  • Sales people—Multiple specialist sales roles
  • Marketeers—Multiple specialist marketing roles
  • Accountants
  • HR
  • Product management
  • Product designers,
  • Product managers
  • User interface designers
  • Web production artists
  • Front end software developers
  • Server side software developers
  • Data analyst
  • Quality assurance

Shared values:

  • Interest in improving education through modernized learning strategy

Specialist roles:

  • Accountant (Key Partnership)

Semi-specialist roles:

  • Full stack software developer—one programmers takes responsibility for the full software system; with scope to expand later or develop key partnerships in this area later if required
  • Content developers—Multi-skilled content creators who have skills and experience in teaching, programming and content design
  • Tutors—Provide the tuition service directly to the customers

Generalist roles:

  • Marketing and sales—Engaged by the full team where required
  • Quality assurance—Testing performed by team members and key partners to identify software issues before release
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