Integrated Festo LX – the business model of the future?

09. Februar 2021

Wintersemester 2020 - FESTO Didactic


Our project partner Festo Didactic is a global leader in basic training in the industrial sector and a provider of skill development for manufacturing and process automation. The services they offer range from educational equipment for training facilities to training and advice for industrial production companies. Festo LX (Learning Experience) is a newly launched educational and training tool created by Festo Didactic. It is an online portal for teachers and learners to access and create a customized learning experience. Our project was about their product idea Integrated Festo LX, a way of delivering educational content through LTI (Learning Tools Interoperability).


The main problem that was being tackled in this project is how Festo Didactic should price and market their new product Integrated Festo LX and if the integration of Festo LX content into existing customers’ Learning Management Systems (LMS) by using the LTI standard is feasible.

The main goal of this project was to develop a business model and pricing strategy for a new way of delivering Festo content to users. Built on this elaborated model and strategy, the main aim was to help the project partner in becoming the leading provider of integrated niche-specific content using the LTI standard.


In order to achieve the main objectives of the project, empirical and secondary research has been conducted that included a market research of the biggest 24 e-learning providers, quantitative data collection, in specific a survey sent to over 700 companies in the DACH-region, and qualitative data collection in the form of 15 in-depth interviews with e-learning experts and customers.
The aim of the market research was to give an overview of the biggest LMS and e-learning providers on the market and what are their business and pricing models. Based on the findings, a framework has been created for the business and pricing models that most suit Integrated Festo LX. The survey gave the team information on the status-quo of e-learning platform and LMS usage in the corporate world, as well as more detailed knowledge on integration standards currently being used. The interviews were conducted in order to further deepen into some questions and gain valuable insights regarding the integration, pain-points, preferences and others when it comes to using learning management systems.


After analyzing the results of the data collection, we could see that only 50% of e-learning providers support the LTI standard and most LMS users aren’t yet familiar with it. It can be observed that its demand is growing by analyzing reviews of LMS websites and users are starting to understand the benefits of LTI. But, unless it gains more popularity among users, SCORM will remain the standard integration option. As of now, LTI is seen just as an add-on for some interested customers. If Festo Didactic decides to move forward with their product Integrated Festo LX, which there does not seem to be high demand for right now, but will probably in the future, a subscription based pricing model that is slightly less expensive than the standard version Festo LX, proved to be preferred by company representatives.

Cooperation Partner

  • Festo Didactic SE
    Rechbergstraße 3
    73770 Denkendorf

Contact Person

  • Dr. Ute Gebhard

Student Team

  • Barbara Binder
    Aleks Yotov
    Marian Moritz Hildebrand
    Sebastian Cisar

Project Manager

  • Caroline Fabian

  • Shtefi Mladenovska

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