Executive Summary

Festo LX (learning experience), a leader within the e-learning space has tasked itself with a significant scaling initiative to grow its user base from 65,000 to 500,000 over the next five years. The platform currently offers a diverse range of over 650 technical training courses, integrating advanced learning formats like eLab, eLearning, and virtual reality (VR). Despite its innovative features, Festo LX aims to enhance its market presence and user engagement by addressing current limitations and leveraging new opportunities in the digital learning space.

Goal

The primary objective of this project is to develop and implement a strategic plan to scale Festo Learning Experience. This involves identifying and mitigating potential risks associated with rapid growth, optimizing the platform's operational efficiency, and ensuring that the expanded user base benefits from high-quality, relevant educational content. The strategy aims to position Festo LX as the global leader in technical education, providing accessible, high-quality training to a diverse audience.

Methodology

In this project, the project team utilized the strategic growth analysis method. This was adapted for Festo LX’s technological learning platform. Initially, the team identified the different types of scaling methods, understanding past and present use cases in large upscaling that were both successful and failures. Taking into consideration all possible strategies to identify and outline the requirements needed for a large scaling approach, whilst ensuring to minimize all foreseen risks involved. Comprehensive market analysis was conducted, including extensive SWOT analysis across the key areas being sales and marketing, operation and resources, customer value propositions and market engagement. Furthermore, the existing markets in which LX is used and sold were analyzed to understand where improvements are needed, and resources can be allocated. The second phase involved conducting extensive internal interviews with industry experts whilst continuing to research within the scaling space, aiming to pinpoint the methods that would align most to LX. Followed by interviews with current Festo LX employees to provide an integral understanding of current processes and shortcomings. The final stage focused on providing an in-depth roadmap of solutions to partner with pain points of the most imminent areas LX must focus on now and over the next 5 years. This utilized all prior areas of research to ensure the needs can be met to provide the required financial, technological and human resources to scale from 65,000 to 500,000 users in 5 years as effectively as possible.   

Results

Following the extensive external and internal interviews conducted, we, the project partner, identified 14 key solutions for FESTO LX. The five most important ones to drive substantial growth included establishing a dedicated integration team that will streamline platform improvements, expedite processes, and foster community engagement by incorporating user feedback effectively. Securing upfront funding is crucial. This enables the necessary investment in skilled personnel and advanced technology, supporting FESTO LX’s scaling strategy. Revising the pricing model will accommodate different market segments and smaller companies, enhancing market reach and ensuring flexibility in sales processes. Developing an online sales platform will significantly enhance customer access, reduce reliance on traditional sales methods, and improve scalability, positioning FESTO LX for a greater market presence. Expanding partnerships and distribution channels will internationalize the brand, tapping into new markets and maximizing growth potential. Attached is a detailed roadmap illustrating these ideas on the following page.

These strategic initiatives position FESTO LX to achieve its ambitious goal of 500,000 users by 2029, establishing it as a global leader in technical education and significantly impacting the digital learning landscape.

Cooperation Partner

• Festo SE & Co. KG - services.didactic@festo.com

Contact Person

• Contact Person: Dr. Ute Gebhard - ute.gebhard@festo.com

Student Team

• Julian Grandl

• Anastasiia Khatsko

• Florian Bernleithner

• Florian Wilfinger

• Oskar Felsch

• Elena Jeftic

Project Manager

• Shtefi Mladenovska, M.Sc.