Another of the tools covered in this chapter that can be used to compare both businesses is the Business Model Canvas, which provides a more detailed insight to the different components of the business models. The Business Model Canvas highlights how both business models share common elements in many of their categories, with the exception of the categories for value propositions, revenue streams and customer segments. It becomes clear from these categories that although IXL Learning and Nextpoint use software to provide solutions for a similar type of problem, there are vast differences between their value propositions, revenue streams and customer segments—with the former business model designed as a solution to help people teach and the latter model being designed to deliver the teaching services. Another major difference between between the two models lies within their value propositions and target market segments. The former being designed to help with mainstream teaching and appeal to the mass market, while the latter focuses on a the smaller segment of the market that need an alternative to mainstream teaching strategy; hence why the learning method is part of the value proposition.

Even though these differences may sound small on paper, they have a large impact that cascades throughout the full structure and execution of their models. With software being key elements of both models, it is important for the software components to be designed in a way that supports their owner's business strategy. Whereas both businesses make use of software to deliver learning solutions for math, the way that the software is designed and provided to customer segments are different due how the businesses differ in their structure and operation strategy. Their software systems are designed in a way that reflects how their business operates—one has a revenue stream from selling subscriptions to use the software, while the other's revenue stream is from the services that the software creates a demand for. This identification shows how one model's software design is influenced by an agenda to reduce support in order to eliminate user costs, while the other's model benefits when its software design can create more demand for support as an opportunity to sell services.