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THE CASE 2014
THE BRIEF HISTORY OF MACOM
22
years ago a company called MaCom
came into existence. Its founders were
two Danish high school graduates, both
of whom are still in charge. Today Ma-
Com have become a small Danish soft-
ware company consisting of around 20
employees, that specializes in system
development and maintenance of their
core software solutions.
Back then, in 1992 to be exact,
these high-school entrepre-
neurs were fed up by the Dan-
ish educational system, where
poor administration and inefficient com-
munication standards between teacher
and pupil was predominant. With this
belief these two young high school grad-
uates set out on a quest to change this,
and not just for the educational environ-
ment! They were driven by a desire to un-
derstand the emerging technologies all
around them and intrigued by the possi-
bilities these new frontiers could offer for
generations to come.
With this mindset, these visionary entre-
preneurs had but one clear vision for the
future: to explore the possibilities of tech-
nology and thereby create easy to use
software solutions for knowledge man-
agement and more.
MaCom has ever since its establishment
been exploring managerial prospects of
technology and has developed multiple
software solutions for the private sector
as well as the public sector ranging from
administration of information to system
integration.
MaCom’s preferred development plat-
form is Oracle, and has been a certified
Oracle partner since 1998.
Besides delivering software solutions for
the business community, MaCom offers
one core product: Lectio.
Lectio was developed for educational
purposes. It serves as an easy administra-
tion and communication online platform
between teacher and pupil - remember
the founders desire to aid the inefficien-
cy in communication in education? This
is their solution! Lectio is, in brief, an on-
line platform for organisational adminis-
tration and user communication. Lectio
started back in 2003 and the first module
was released in 2004.
Lectio is the focal point of this case. Lec-
tio has since its release become a huge
success amongst Danish high schools
where upwards of 90% of all high schools
in Denmark uses Lectio for course admin-
istration and communication.
E
inar Poulsen, one of the found-
ers’ father, originally established
the core idea and foundation for
Lectio. He was, before retiring, a
high-school teacher at Nørre Gymnasi-
um, and he had a simple belief. He be-
lieved that administration in high-schools
could benefit from technology, and make
it much more efficient.
He then invented a rudimentary system
which could keep track of how far courses
were and avoid double-booking of teach-
ers. Few but Einar saw the potential of his
system, thus after his retirement, com-
bined with the lack of attention, his sim-
ple invention quickly became forgotten,
but far from obsolete!
His son, Mads Poulsen - to whom he had
long been preaching about the inefficien-
cy of high school administration - had,
along with his high school friend, Martin
Holbøll, since 1992 established a quite
successful software company, MaCom.
Together they quickly combined their en-
deavours towards a collective goal, the
goal of creating an administrative educa-
tional platform with nationwide potential.
Their combined determination and en-
deavours towards this seemingly simple
collective goal resulted in what we now
know as Lectio. And Lectio has ever since
its establishment in 2003, been evolving
for the better. MaCom doesn’t want this
evolution to stop, and envisions Lectio as
a far greater product in the future.
The History Behind MaCom
MaCom’s Formal Mission
MaCom’s mission is to ensure in-
tegrity and create structure with-
in our customers information,
this helps abolish trivial organi-
zational routines, which thereby
releases organizational resourc-
es. We will achieve this by con-
tinuous product development,
combined with open dialogue
with existing and potential cus-
tomers.
MaCom’s Formal Vision
MaCom’s vision is to be the mar-
ket leader within the danish field
of knowledge management by
software solutions. We see an
inspiring working environment
as a key factor in the fulfilment
of this vision.
The Future Vision Behind Lectio
MaCom has a vision beyond what Lectio
is today. MaCom wants to make Lectio
even greater and make it an even more
integrated part of today’s educational en-
vironment. MaCom wants to make Lectio
a platform for digital learning. In short,
“MaCom wants to create a
newlearningenvironment
for a new generation!”
Pupils today are in some cases learning
from the same textbooks as their parents.
Meanwhile, their use and understanding
of technology is phenomenal and com-
prehensive compared to their parents.
This generation was born into a fast mov-
ing global environment with rapid eco-
nomic growth which has led to radical
change on many fronts, thus this genera-
tion’s medium of choice is not books, it is
their electronic devices, especially smart-
phones and tablets.
MaCom has recognized this gap of com-
petence and desire, and wants to explore
the possibilities by creating a technologi-
cal ecosystem fit for this generation whilst
enabling the learning of tomorrow.
MaCom envisions this ecosystem will
mimic those of smartphones, where an in-
novation like apps serves many purposes.
MaCom believe an app-like setting can
be utilized for educational purposes and
be implemented in Lectio.
MaCom’s Strategy for Lectio
For the purpose of reaching their future
goal, MaCom have devised a 3-part strat-
egy for Lectio as illustrated below.
This strategy is constructed around 3 key
elements. Starting from below, adminis-
tration along with communication, serves
as the backbone of Lectio. These aspects
act as a platform for the element of digi-
tal learning, and are already deployed.
Lectio’s module based design is a key in-
gredient in this strategy. This design ena-
bles MaCom’s next course of action, dig-
ital learning.
Administration and communication is part
of the package if an educational institu-
tion decides to enroll and adapt Lectio.
MaCom is the facilitator in those process-
es of administration and communication,
it ensures security and maintenance whilst
providing institutions with data storage
and more.
MaCom views
the main pur-
pose of adminis-
tration as being a
service which enables
efficient and friction-
less work operations by
the administration depart-
ment within the respective
educational institution.
Communication abilities is also
a paramount factor within organ-
izations. Here Lectio provides a me-
dium for easy communication along
with the ability to administrate and
manage this.
The fact that MaCom is able to offer a
package, a unity of services, for educa-
tional institutions, consisting of the fa-
cilitation of internal administration and
communication and the possibility to ex-
pand Lectio beyond today, gives MaCom
a phenomenal competitive advantage.
By now, as mentioned, around 9/10 of all
Danish high-schools utilize Lectio’s capa-
bilities. According to MaCom this grow-
ing affiliation towards Lectio is a sign of
the future. MaCom believes it has estab-
lished a healthy community around Lectio
with a new generation ready for the next
step in their 3-part strategy, which is dig-
ital learning.
What is digital
learning? Digital
learning is the es-
tablishment of an ed-
ucational environment
online, an eco-system con-
taining various educational
material such as e-books etc.
For this establishment MaCom
sees Lectio as a perfect platform
and MaCom believes it will be the
facilitator in the process.
For MaCom digital learning can be as
little as an e-book. But MaCom sees a far
greater potential for digital learning and
what is possible for Lectio. As introduced
earlier MaCom believes that Digital learn-
ing via Lectio could be like an app store.
This app store would only contain mate-
rial for educational purposes. But digital
learning should not be confined to only
apps, and could possibly be many other
alternatives out there!
3 years ago MaCom tried to establish the
foundations for digital learning, howev-
er, they did not succeed. MaCom started
by implementing an upgrade for Lectio
which enabled users to upload e-books
and e-works (quizzes, sound and movies
etc.) to Lectio but the new capabilities
were not utilized at all.
MaCom quickly realized that the project
of digital learning was not going as well as
they hoped, mainly because of resistance.
Resistance came
from both from the
educational institu-
tions and publishers,
especially Gylden-
dal. Publishers were
extremely reluctant
to participate, and
saw no gains in Ma-
Com’s initiative.
The main problem
behind MaCom’s in-
itiative was the fact
that publishers have
great power and influence in relation to
digital educational material. Their pow-
er stem from property rights and various
legislation. Furthermore authors of edu-
cational books have to go through these
publishers, and publishers like Gyldendal
have their own environment with sites
containing e-books, which is why these
publishers do not recognize any further
benefits offered by MaCom via Lectio.
MaCom has since its failed attempt, ac-
knowledged that e-books are not the
best way to promote digital learning.
MaCom has instead been pursuing other
frontiers by which digital learning could
be achieved. MaCom hopes that digital
learning could, with just a small amount
of input about various ways to enable dig-
ital learning in depth, illustrate the vast
potential of digital learning to be offered
by Lectio.
As one of the founders puts it in a meta-
phor of his:
“The internet is like an ocean filled with
different kinds and sorts of fish. Lectio,
however,isatthemo-
ment just an empty
aquarium containing
no fish. We wish to
fill our empty aquari-
um with fish, but only
fish fit for education-
al purposes.”
Let’s elaborate. The
internet as an ocean
serves as a symbol,
a symbol where the
water illustrates the
enormous knowl-
edge base and the near infinite possi-
bilities the internet contains, while the
fish refer to ideas about everything. The
aquarium is yet another symbol, a symbol
of MaCom’s own platform, the two parts
of their 3-part strategy below digital learn-
ing, communication and administration.
Try Lectio on
Lectio.dk
THE CHALLENGE AHEAD FOR MACOM
M
aCom would like you to en-
vision yourselves as entrepre-
neurs.
Think of yourselves as students looking
for a possibility to earn a litte extra on
the side of your studies. You remember
from your high-school tenure that the
company behind
the administration
system Lectio, Ma-
Com was about
to launch an app-
store for educa-
tional material and
in that process you
now discover that
MaCom offers a
developer kit for
you to explore.
You begin to ex-
plore the possibili-
ties and limitations
of this developer
kit, however, you
quickly realize that for this to happen you
first need an extraordinary idea.
You then begin to contemplate. Soon
after you recall a specific situation from
your high school years where a certain
app would have benifited both the teach-
er and the pupils.
Now with an idea in mind you begin to
imagine how your idea could become re-
ality, and in turn provide you with a little
extra income. But you also wonder, could
this be a start-up?
You feel excited. You start exploring the
current possibilities of Lectio, and discov-
ers that Lectio gathers all kinds of data,
for you to exploit in relation to your idea.
You consider the somewhat endless pos-
sibilities with geographical, age-related,
gender specified, grades etc. data and
wonder how these could be put into the
context of the idea.
But then you think to yourself, what about
the business side of it? Is there even a
need for this app
you have thought
of? In what context
should it be used?
And is it even pos-
sible to develop?
MaCom wants
you to generate
a great idea in re-
lation to digital
learning and in this
process also think
of the business po-
tential. Your input
should correspond
and align with Ma-
Com’s overall strat-
egy of creating a new learning environ-
ment for a new generation.
This idea, input or tool etc. need to be fit
for education and learning, and thereby
help MaCom fill its aquarium. Your idea
should emphasize if there is really a need
for it, and how it should be used in edu-
cation, and finally consider the business
side and economic prospects of the idea.
To summerize: (1) Generate and design
an idea which could fit in the aquarium
of digital learning; (2) Consider the need
for this idea and in what context this idea
should be used; (3) Consider the eco-
nomic feasibility and business potential
of this idea.
Though MaCom and especially Lectio are widely known, many
difficulties have followed in the footsteps of their popularity.
The general surroundings were to become an even greater
barrier for MaCom, as external factors made projects such as
e-works impossible because of monopolistic conditions and
governmental regulations amongst other things.
Especially the two factors mentioned above have put MaCom
in a situation where they are stuck with stakeholders as Gylden-
dal, working against its vision to become number one in digital
learnings. Also the teachers have shown to be up for quite a
fight.
THE SETTINGS
L e c t i o i n D e p t h
Lectio is a annual fee per module based
course administration and communica-
tion online platform for educational in-
stitutions. It serves as a medium which
brings teacher and pupil closer together.
Lectio offers many services such as: (1)
it enables effective scheduling in educa-
tional institutions; (2) it provides teachers
with an easy overview of their assigned
courses, and also enables them to upload
any sort of information in relation to the
their specific courses’ curriculum; and (3),
it enables pupils within these institutions
to actively engage their schedule, and
communicate with teachers, and through
this, pupils are able to estimate and plan
their desired level of performance.
Lectio is, as mentioned, a module based
platform. Lectio has steadily evolved
through the years since its release. Lec-
tio consists today of six modules which
have been implemented into the main
platform. In the following paragraphs
each module will be briefly described.
For further elaboration on each module,
visit http://www.lectio.dk/produktinfor-
mation.html
T h e B a s i c M o d u l e
The basic module serves four purposes:
schedule slanning; timesheet administra-
tion; staff wages; and book administra-
tion.
Schedule planning provides both pupil
and teacher with a personal schedule of
the current week - with schedule plan-
ning a teacher is able to cancel/create
lectures, see which rooms are booked or
available, and book rooms. With this tool
the teachers are able to send the sched-
ule to all pupils with one click.
Timesheet administration enables the
schools to track each teacher’s progress
as well as whether the annual lectures for
each student are met.
Staff wages is a tool for staff to view
their wages and track bonuses for specif-
ic activities.
Book administration enables the stu-
dents to see which books they have rent-
ed and when they should be returned. If
a book is overdue, the pupil will receive
an automatic notification from Lectio.
BASIC MODULE
- Schedules
- Timesheet Adminis-
tration
- Staff Wages
- Book Administration
STUDENT MOD-
ULE	
- Abscence
- Grades
- Questionnaires
- Consultations
STUDY MODULE	
- Documents
- Messages
- Groups
- Syllabus
EXAM MODULE	
	
- Reporting
- Planning
- Scheduling
- Grade Transcripts
COURSE ADMINISTRA-
TION MODULE
- Electives Enrollment
- Class Compostition
- Course Administration
-Schedule Planning
EXAMINOR MODULE
- Exam hand-in
- Plagiarism Checking
- Distribution
- Grading
BEHIND THE MODULES OF LECTIO
T h e S t u d e n t M o d u l e
The student module contains the follow-
ing tools: absence, grades, surveys &
consultations. These modules primarily
serves each individual pupil with informa-
tion about their in-school progress.
With the absence tool students are able
to see when they have recorded absence
and it enables each student to type in the
causes of the absence for the school to
see. Based on the information gathered
statistics will be generated for both stu-
dent and administration purposes.
Grades enables the students to see their
grade transcripts online. Teachers are
also able to comment on the grades giv-
en.
Questionnaires gives student, teacher
and administration the ability to create
questionnaires to be shared with specific
groups or individual persons.
To be able to coordinate consultations,
more specifically parent consultations,
between the teachers and their pupilss
and parents, Lectio enables the adminis-
tration to create dates for the parents to
sign-up for. When a family has signed up
for a consultation with their child’s teach-
ers, the teachers can either approve the
time, or propose another time.
T h e S t u d y M o d u l e
The study module is a module that han-
dles knowledge sharing. Both teachers
and pupils are able to use this module to
communicate, share information and cre-
ate groups or team rooms across classes.
The module contains the following
sub-categories: documents, messages,
groups & syllabus.
The documents module enables teach-
ers, administration and pupils to share
documents without thinking of the doc-
ument format, as Lectio handles all doc-
ument types.
With the messaging module, teachers
and pupils are able to communicate with
each other. Messages can be sent to in-
dividuals or groups based on privileges
chosen.
Groups works on the same way as mes-
saging. Pupils, teachers or administration
is able to create groups across classes.
This can be used for students to create
study groups or teachers to create spe-
cific groups across classes (for example
gathering all art students in one group).
The syllabus module enables the teach-
ers to upload and update study plans.
The syllabus module uses the various in-
formation Lectio contains to enable au-
tomation.
!
DID YOU KNOW THAT
LECTIO HAS 40 MIL-
LION PAGE VIEWS
A MONTH? THAT’S
THE SAME AS THE
DANISH NEWSPA-
PER POLITIKEN!
The Exam Module
This module enables communication di-
rectly with the Ministry of Education as
well as exam planning, exam plans and
the ability to both see and print the fi-
nal grade transcripts. The exam mod-
ule basically manages all information in
regards to exams.
This module serves
the following pur-
poses: reporting,
planning, schedul-
ing and transcripts.
With reporting,
the administra-
tion is able to re-
port whom of the
schools teachers
that are eligible
for the Ministry of
Education’s exami-
nation pool, which
is a pool consisting of available exter-
nal examiners across different schools.
The courses and their prioritized order is
pulled from the Ministry of Education’s
databases through Lectio and afterwards
used for creating the automated exam
plans. When this is created and approved
by each individual school, it is sent back
to the ministry who assigns external ex-
aminers needed for each school.
The planning resource uses the already
stored information about students,
teachers, rooms etc. to auto-generate
the best scenarios available. Based on
these information, rooms will be booked,
students will be informed about their
schedules, and teachers will get informa-
tion on when to be where. All this can be
automatically generated by Lectio, while
previously it was a manual assignment for
the administration to get this puzzle to fit
each year.
Scheduling within the exam module
uses the already ex-
isting schedules and
puts the dates, and
times of the sched-
uled exam into the
students’ own sched-
ules. This is also used
to inform teachers by
putting in the exams
they are hosting as
well as exams they
are scheduled to su-
pervise.
The last feature in
this module enables
both students and administration to view
and print grade transcripts. These will
be made available through Lectio, where
administration can print specific classes
or the individual student can print their
own.
TheCourseAdministrationModule
The course administration module func-
tions as an administrative module that
helps the administration plan electives,
create classes and make this puzzle solv-
able so that everything is handled most
efficiently.
Electives enrollment enables students
to pick and select electives through Lec-
tio. The student logs in to Lectio and has
WILL YOUR
IDEA BECOME
THE 7TH
MODULE?
an overview of the electives selectable.
The electives can be targeted for the stu-
dent based on the information already
stored by Lectio. The student is also able
to prioritize the electives and will receive
a notification if there are not enough stu-
dents for the single elective chosen.
Class composition takes the already
known information based on the elec-
tives enrollment and the normal class
enrollment to effectively and efficiently
create the best schedules able. It makes
sure that the classes are put into the most
suitable slots in the schedule, so the stu-
dents or teachers do not have gaps in
their schedules.
Course administration helps the admin-
istration and teachers to find the most
suitable plan based on the school’s edu-
cational focus, teaching wishes and eco-
nomical resources.
All of the above is then fitted into the
overall schedule planning of Lectio. The
schedules can be sent out one by one, in
bulks, or based on specific periods.
The Examination Module
The examination module contains all that
is needed to organize digital exams, thus
enabling Lectio to keep the costs down
without having to use a lot of paper or
postage on exams. This module serves
the following purposes: online submis-
sion, plagiarism checking, distribution
and grades.
Online submission is the module that
handles exam hand-ins at written exams.
This module functions both on- and of-
fline. When the student has sent in
the assignment, he/she will get a receipt
that the assignment has been delivered.
After the assignment has been handed in,
Lectio’s plagiarism checking will check
all of the documents for plagiarism. The
assignment is then compared to other
assignments previously handed in. Lectio
compares all assignments across schools
and classes. This can only be done by us-
ing all of the stored information Lectio
has access to.
The distribution module makes sure that
the correct examiner will receive the cor-
rect assignments. The examiner will then
receive a link on their dashboard noti-
fying that there is a new assignment for
evaluation.
After evaluation the examiner is able to
grade the student’s assignment, and give
individual notes to each student based
on their assignment. When all the grades
have been given, each teacher is able
to print all notes and grades and bring
these to examiner meetings.
MORE INFORMATION ABOUT
THE MODULES CAN BE
FOUND (IN DANISH) HERE:
HTTP://WWW.LECTIO.DK/
PRODUKTINFORMATION.
HTML
The Teacher’s Point of View
Whilst being the number one in educa-
tion software and enabling the organiza-
tions to create better workflows and new
opportunities, MaCom has experienced
one fundamental problem, the fact their
system is so revolutionary that people,
especially teachers, are afraid of becom-
ing obsolete in the process.
Looking back at the early ages of Dan-
ish education, teachers have always been
the center of education supplemented
by books, blackboards and crayons. But
with the introduction of this new platform
the education is evolving into a new era
within education, education 2.0.
Moreover the current education consists
of analogue books, blackboards, and in-
school education, here MaCom’s vision
is to create a platform that functions as
a supplement to the regular education
bringing the benefits of new technology
into the educational environment.
Education 2.0 is what MaCom describes
the old way of teaching combined with
the endless possibilities technology has
brought into the everyday lives of near-
ly all students ranging from kindergarten
all the way to universities. A study has
shown that a third of children get their
first phone at the age of 10. MaCom
wants to use this possibility to integrate
the phone as a part of the education with
its new platform.
As MaCom is trying to change the view
on education, the current generation of
teachers, who grew up with the same
books from 1966 as their parents, are
hanging on to their old habits of teach-
ing, afraid of implementing the new pos-
sibilities brought to them by MaCom. The
habits and mindsets of the teachers are a
serious challenge ahead for MaCom and
will hopefully change when this new gen-
eration “the smartphone generation”,
grows up to be the teachers themselves.
A Monopolized
Market
As the Danish educa-
tional system is run and
driven almost solely
by the Danish gov-
ernment, MaCom
has, as a private
company, expe-
rienced difficulties
trying to enter, a market
already dominated by a
governmental institution.
This has forced MaCom
into creating this innova-
tive platform to be able to
take the market shares from
an already existing gov-
ernmental provider, UNI-C.
UNI-C is a governmental institution
under the Ministry of Education, which
focuses on digital development within
education as well as being the biggest
competitor of MaCom. With UNI-C as
the biggest competitor, MaCom is expe-
riencing this monopolized market. Thus
having a system developed for education
2.0, MaCom still has to work around this.
Governmental Regulations
Though MaCom is the market leader
within management software for high-
schools, is is still subject to governmen-
tal regulations as it is working with per-
sonal data from many students, schools
and high schools. One thing is the per-
sonal data act that states which data can
be collected and how they should be
stored. Therefore it is important that Ma-
Com lives up to these regulations as well
as the personal data act to ensure that
the data is safely handled. Another thing
is the requirements the government has
put for systems with educational pur-
poses. MaCom has had a battle with the
Ministry of Education to get Lectio ap-
proved for educational purposes as it has
to fulfill several requirements; require-
ments for study administrative process-
es, subsidies, periods etc. Without these
demands fulfilled, Lectio is not able to be
approved.
The Culture Within the Organization
MaCom is a relatively young organization
consisting of mainly developers and sup-
porters, besides the two founders who
function as the only business developers.
MaCom has 20 employees with an aver-
age employee age around 30, thus cre-
ating a very young and dynamic culture
within the organization.
This setup has some key benefits as most
of their employees have grown up with
the very same education system they now
are responsible for redesigning, thus cre-
ating the education of tomorrow.
Martin Holbøll describes Lectio as the fol-
lowing: “In contrast to other software
companies that deploy new versions
on an annual basis, MaCom strives
to come with a new version of Lectio
every day”. With this approach Lec-
tio is able to stay updated at all time
without any innovators to drive
the development of
the software.
GENERAL
MANAGEMENT
SUPPORTERS
DEVELOPERS
PROJECT
MANAGERS
1ST LINE MAN-
AGERS
ANALYSTS
Target Group
As mentioned earlier, the primary users
of Lectio are the students of the various
high schools using Lectio. With this being
said, the target group MaCom is aiming
for with this new platform, is students at
various universities studying IT. As well as
any other app store on the market, Ma-
Com only wants to facilitate the frame-
work of the app store, creating a place
for creativity using whatever framework
is available. Thus creating the app store
itself enabling IT students, developers,
teachers etc. to be able to put “fish in
the aquarium” as Martin Holbøll says.
MaCom is especially hoping for the
teachers to embrace this new platform
as it enables them to publish their works
in order to break with the regular pub-
lishers, such as Gyl-
dendal, whose busi-
ness model is known
for asking 85-90%
of the profit gains.
Thus creating a plat-
form where you can
gain 70% profit (Ma-
Com takes 30%) on
your input, instead
of the usual 10-15%
provided by publish-
ers. This potential of
70% in profits cre-
ates incentives, especially for the teach-
ers as e-learning is expected to grow
23% a year between 2013 to 2017.
Though everything sounds too good to
be true for the teachers, MaCom has run
into the problem that the first-movers in
the technology are usually not the teach-
ers, but the generation being educated.
Therefore MaCom wants to address this
problem by turning to the IT students
and/or developers to get the aquarium
filled. And when the aquarium is full, it
will hopefully create a platform that be-
comes so popular that the teachers are
unable to avoid it and eventually will em-
brace this new education 2.0. When this
mission is completed, we will have a new
app-store, like Apple’s, but within educa-
tion.
Financial Situation
MaCom is a company with a solid eco-
nomic foundation. The gross profit has
been consistent through the last many
years with only few drops even through
the financial crisis. Though being an or-
ganization in constant growth, MaCom
has been able to uphold a solid equity
around DKK 10 mil. With MaCom being
a solely software-oriented company, they
are able to keep their capacity costs at a
steady level. The only drop in their finan-
cial situation is seen in 2012, where one
of their customers was declared bank-
rupt, therefore 2012 shows a big loss in
the net profit.
Business Model
The current business model of MaCom
is based on licensing. The basic module
costs DKK 10.000 a year. This covers one
department at one school. Each extra
module costs DKK 10.000 per depart-
ment a year. To put this into context, a
similar system from its competitors costs
approximately one million DKK a year.
An example, based on a random high
school with two departments, an eco-
nomic institute and a technological insti-
tute. They have chosen all modules.
Two departments (economic & tech-
nology) * (6 modules) * DKK10000 =
DKK120.000. Though most schools only
have one department it is still close to
90% savings compared to a competitive
system and this is without considering
the human capital. As Lectio is a system
hosted in the cloud, MaCom is able to
implement this system in 1-2 days which
enables the schools to cut costs from day
one.
As mentioned earlier, the business mod-
el for this digital learning is to provide a
framework for developers to use and af-
terwards take a cut of the gross earnings.
MaCom has decided to follow the gen-
eral approach on the app market, taking
30% of the retail price, leaving 70% for
the developers. Though utilizing
this business model, MaCom is open for
suggestions on their model, as long as it
helps getting the aquarium filled. That
would mean if the best idea ever where
to pop up, MaCom is willing to forfeit
this fee to the greater cause of their plat-
form.
Marketing
Within the area of marketing, MaCom has
experienced that the most efficient way
is mouth to mouth and is thus not do-
ing any specific marketing. The one thing
MaCom is doing, is sharing stories about
using MaCom in a magazine published
by “Gymnasieskolernes Lærerforening”
(The High School Association of Teachers)
which is published each month. These
stories include positive stories about the
use of Lectio and can be found on lectio.
dk under Experiences. The schools can
also request a visit by MaCom, but often
when this is done, the decision about pur-
chasing Lectio has already been made.
Whats next?
We don’t know and this is where you
come in. The case is to be upload-
ed online on https://podio.com/web-
forms/7985462/600252 as well as copied
to the USB provided. The online submis-
sion form will close on the 9th of May at
18:00. Good luck!
CASE WRITERS
Kristoffer Brodersen
Stefan Johansen
THANKS TO
On behalf of IT Case Competition 2014, we, the case writers
would like to thank the following people for their invaluable
input to this case and the creation of ITCC 2014.
MaCom
Everyone at the MaCom office at Vesterbrogade 48,
1620 KBH V and especially the following people who
made this case become a reality:
Martin Holbøll, CEO
Mads Poulsen, Board President
Signe Friis Jensen, Project Manager
MENTORING
Andreas Nielsen, PA Consulting Group
Christian Øhrgaard, Pandora (prev. PACG)
GRAPHIC DESIGN
Stefan Johansen
DISCLAIMER THIS CASE IS THE SOLE RESPONSIBILITY OF THE TWO WRITERS ALONE. MACOM IS SUBSEQUENTLY NOT RESPONSIBLE FOR ANY STATEMENTS OR
CONSTRUCTIONS IN THIS CASE REGARDGING ITS BUSINESS OR OPERATIONS. THIS CASE CANNOT BE USED OUTSIDE OF IT CASE COMPETITION 2014 AND MAY NOT
BE PUBLICLY QOUTED OR COPIED WITHOUT THE ACCEPT OF THE AUTHORS. MAY THE FORCE BE WITH YOU. COPYRIGHT OF IT CASE COMPETITION 2014.

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IT Case Competition Case 2014

  • 2. THE BRIEF HISTORY OF MACOM 22 years ago a company called MaCom came into existence. Its founders were two Danish high school graduates, both of whom are still in charge. Today Ma- Com have become a small Danish soft- ware company consisting of around 20 employees, that specializes in system development and maintenance of their core software solutions.
  • 3. Back then, in 1992 to be exact, these high-school entrepre- neurs were fed up by the Dan- ish educational system, where poor administration and inefficient com- munication standards between teacher and pupil was predominant. With this belief these two young high school grad- uates set out on a quest to change this, and not just for the educational environ- ment! They were driven by a desire to un- derstand the emerging technologies all around them and intrigued by the possi- bilities these new frontiers could offer for generations to come. With this mindset, these visionary entre- preneurs had but one clear vision for the future: to explore the possibilities of tech- nology and thereby create easy to use software solutions for knowledge man- agement and more. MaCom has ever since its establishment been exploring managerial prospects of technology and has developed multiple software solutions for the private sector as well as the public sector ranging from administration of information to system integration. MaCom’s preferred development plat- form is Oracle, and has been a certified Oracle partner since 1998. Besides delivering software solutions for the business community, MaCom offers one core product: Lectio. Lectio was developed for educational purposes. It serves as an easy administra- tion and communication online platform between teacher and pupil - remember the founders desire to aid the inefficien- cy in communication in education? This is their solution! Lectio is, in brief, an on- line platform for organisational adminis- tration and user communication. Lectio started back in 2003 and the first module was released in 2004. Lectio is the focal point of this case. Lec- tio has since its release become a huge success amongst Danish high schools where upwards of 90% of all high schools in Denmark uses Lectio for course admin- istration and communication.
  • 4. E inar Poulsen, one of the found- ers’ father, originally established the core idea and foundation for Lectio. He was, before retiring, a high-school teacher at Nørre Gymnasi- um, and he had a simple belief. He be- lieved that administration in high-schools could benefit from technology, and make it much more efficient. He then invented a rudimentary system which could keep track of how far courses were and avoid double-booking of teach- ers. Few but Einar saw the potential of his system, thus after his retirement, com- bined with the lack of attention, his sim- ple invention quickly became forgotten, but far from obsolete! His son, Mads Poulsen - to whom he had long been preaching about the inefficien- cy of high school administration - had, along with his high school friend, Martin Holbøll, since 1992 established a quite successful software company, MaCom. Together they quickly combined their en- deavours towards a collective goal, the goal of creating an administrative educa- tional platform with nationwide potential. Their combined determination and en- deavours towards this seemingly simple collective goal resulted in what we now know as Lectio. And Lectio has ever since its establishment in 2003, been evolving for the better. MaCom doesn’t want this evolution to stop, and envisions Lectio as a far greater product in the future. The History Behind MaCom MaCom’s Formal Mission MaCom’s mission is to ensure in- tegrity and create structure with- in our customers information, this helps abolish trivial organi- zational routines, which thereby releases organizational resourc- es. We will achieve this by con- tinuous product development, combined with open dialogue with existing and potential cus- tomers. MaCom’s Formal Vision MaCom’s vision is to be the mar- ket leader within the danish field of knowledge management by software solutions. We see an inspiring working environment as a key factor in the fulfilment of this vision.
  • 5. The Future Vision Behind Lectio MaCom has a vision beyond what Lectio is today. MaCom wants to make Lectio even greater and make it an even more integrated part of today’s educational en- vironment. MaCom wants to make Lectio a platform for digital learning. In short, “MaCom wants to create a newlearningenvironment for a new generation!” Pupils today are in some cases learning from the same textbooks as their parents. Meanwhile, their use and understanding of technology is phenomenal and com- prehensive compared to their parents. This generation was born into a fast mov- ing global environment with rapid eco- nomic growth which has led to radical change on many fronts, thus this genera- tion’s medium of choice is not books, it is their electronic devices, especially smart- phones and tablets. MaCom has recognized this gap of com- petence and desire, and wants to explore the possibilities by creating a technologi- cal ecosystem fit for this generation whilst enabling the learning of tomorrow. MaCom envisions this ecosystem will mimic those of smartphones, where an in- novation like apps serves many purposes. MaCom believe an app-like setting can be utilized for educational purposes and be implemented in Lectio. MaCom’s Strategy for Lectio For the purpose of reaching their future goal, MaCom have devised a 3-part strat- egy for Lectio as illustrated below. This strategy is constructed around 3 key elements. Starting from below, adminis- tration along with communication, serves as the backbone of Lectio. These aspects act as a platform for the element of digi- tal learning, and are already deployed. Lectio’s module based design is a key in- gredient in this strategy. This design ena- bles MaCom’s next course of action, dig- ital learning. Administration and communication is part of the package if an educational institu- tion decides to enroll and adapt Lectio. MaCom is the facilitator in those process- es of administration and communication, it ensures security and maintenance whilst providing institutions with data storage and more.
  • 6. MaCom views the main pur- pose of adminis- tration as being a service which enables efficient and friction- less work operations by the administration depart- ment within the respective educational institution. Communication abilities is also a paramount factor within organ- izations. Here Lectio provides a me- dium for easy communication along with the ability to administrate and manage this. The fact that MaCom is able to offer a package, a unity of services, for educa- tional institutions, consisting of the fa- cilitation of internal administration and communication and the possibility to ex- pand Lectio beyond today, gives MaCom a phenomenal competitive advantage. By now, as mentioned, around 9/10 of all Danish high-schools utilize Lectio’s capa- bilities. According to MaCom this grow- ing affiliation towards Lectio is a sign of the future. MaCom believes it has estab- lished a healthy community around Lectio with a new generation ready for the next step in their 3-part strategy, which is dig- ital learning. What is digital learning? Digital learning is the es- tablishment of an ed- ucational environment online, an eco-system con- taining various educational material such as e-books etc. For this establishment MaCom sees Lectio as a perfect platform and MaCom believes it will be the facilitator in the process. For MaCom digital learning can be as little as an e-book. But MaCom sees a far greater potential for digital learning and what is possible for Lectio. As introduced earlier MaCom believes that Digital learn- ing via Lectio could be like an app store. This app store would only contain mate- rial for educational purposes. But digital learning should not be confined to only apps, and could possibly be many other alternatives out there!
  • 7. 3 years ago MaCom tried to establish the foundations for digital learning, howev- er, they did not succeed. MaCom started by implementing an upgrade for Lectio which enabled users to upload e-books and e-works (quizzes, sound and movies etc.) to Lectio but the new capabilities were not utilized at all. MaCom quickly realized that the project of digital learning was not going as well as they hoped, mainly because of resistance. Resistance came from both from the educational institu- tions and publishers, especially Gylden- dal. Publishers were extremely reluctant to participate, and saw no gains in Ma- Com’s initiative. The main problem behind MaCom’s in- itiative was the fact that publishers have great power and influence in relation to digital educational material. Their pow- er stem from property rights and various legislation. Furthermore authors of edu- cational books have to go through these publishers, and publishers like Gyldendal have their own environment with sites containing e-books, which is why these publishers do not recognize any further benefits offered by MaCom via Lectio. MaCom has since its failed attempt, ac- knowledged that e-books are not the best way to promote digital learning. MaCom has instead been pursuing other frontiers by which digital learning could be achieved. MaCom hopes that digital learning could, with just a small amount of input about various ways to enable dig- ital learning in depth, illustrate the vast potential of digital learning to be offered by Lectio. As one of the founders puts it in a meta- phor of his: “The internet is like an ocean filled with different kinds and sorts of fish. Lectio, however,isatthemo- ment just an empty aquarium containing no fish. We wish to fill our empty aquari- um with fish, but only fish fit for education- al purposes.” Let’s elaborate. The internet as an ocean serves as a symbol, a symbol where the water illustrates the enormous knowl- edge base and the near infinite possi- bilities the internet contains, while the fish refer to ideas about everything. The aquarium is yet another symbol, a symbol of MaCom’s own platform, the two parts of their 3-part strategy below digital learn- ing, communication and administration. Try Lectio on Lectio.dk THE CHALLENGE AHEAD FOR MACOM
  • 8. M aCom would like you to en- vision yourselves as entrepre- neurs. Think of yourselves as students looking for a possibility to earn a litte extra on the side of your studies. You remember from your high-school tenure that the company behind the administration system Lectio, Ma- Com was about to launch an app- store for educa- tional material and in that process you now discover that MaCom offers a developer kit for you to explore. You begin to ex- plore the possibili- ties and limitations of this developer kit, however, you quickly realize that for this to happen you first need an extraordinary idea. You then begin to contemplate. Soon after you recall a specific situation from your high school years where a certain app would have benifited both the teach- er and the pupils. Now with an idea in mind you begin to imagine how your idea could become re- ality, and in turn provide you with a little extra income. But you also wonder, could this be a start-up? You feel excited. You start exploring the current possibilities of Lectio, and discov- ers that Lectio gathers all kinds of data, for you to exploit in relation to your idea. You consider the somewhat endless pos- sibilities with geographical, age-related, gender specified, grades etc. data and wonder how these could be put into the context of the idea. But then you think to yourself, what about the business side of it? Is there even a need for this app you have thought of? In what context should it be used? And is it even pos- sible to develop? MaCom wants you to generate a great idea in re- lation to digital learning and in this process also think of the business po- tential. Your input should correspond and align with Ma- Com’s overall strat- egy of creating a new learning environ- ment for a new generation. This idea, input or tool etc. need to be fit for education and learning, and thereby help MaCom fill its aquarium. Your idea should emphasize if there is really a need for it, and how it should be used in edu- cation, and finally consider the business side and economic prospects of the idea. To summerize: (1) Generate and design an idea which could fit in the aquarium of digital learning; (2) Consider the need for this idea and in what context this idea should be used; (3) Consider the eco- nomic feasibility and business potential of this idea.
  • 9. Though MaCom and especially Lectio are widely known, many difficulties have followed in the footsteps of their popularity. The general surroundings were to become an even greater barrier for MaCom, as external factors made projects such as e-works impossible because of monopolistic conditions and governmental regulations amongst other things. Especially the two factors mentioned above have put MaCom in a situation where they are stuck with stakeholders as Gylden- dal, working against its vision to become number one in digital learnings. Also the teachers have shown to be up for quite a fight. THE SETTINGS
  • 10. L e c t i o i n D e p t h Lectio is a annual fee per module based course administration and communica- tion online platform for educational in- stitutions. It serves as a medium which brings teacher and pupil closer together. Lectio offers many services such as: (1) it enables effective scheduling in educa- tional institutions; (2) it provides teachers with an easy overview of their assigned courses, and also enables them to upload any sort of information in relation to the their specific courses’ curriculum; and (3), it enables pupils within these institutions to actively engage their schedule, and communicate with teachers, and through this, pupils are able to estimate and plan their desired level of performance. Lectio is, as mentioned, a module based platform. Lectio has steadily evolved through the years since its release. Lec- tio consists today of six modules which have been implemented into the main platform. In the following paragraphs each module will be briefly described. For further elaboration on each module, visit http://www.lectio.dk/produktinfor- mation.html T h e B a s i c M o d u l e The basic module serves four purposes: schedule slanning; timesheet administra- tion; staff wages; and book administra- tion. Schedule planning provides both pupil and teacher with a personal schedule of the current week - with schedule plan- ning a teacher is able to cancel/create lectures, see which rooms are booked or available, and book rooms. With this tool the teachers are able to send the sched- ule to all pupils with one click. Timesheet administration enables the schools to track each teacher’s progress as well as whether the annual lectures for each student are met. Staff wages is a tool for staff to view their wages and track bonuses for specif- ic activities. Book administration enables the stu- dents to see which books they have rent- ed and when they should be returned. If a book is overdue, the pupil will receive an automatic notification from Lectio. BASIC MODULE - Schedules - Timesheet Adminis- tration - Staff Wages - Book Administration STUDENT MOD- ULE - Abscence - Grades - Questionnaires - Consultations STUDY MODULE - Documents - Messages - Groups - Syllabus EXAM MODULE - Reporting - Planning - Scheduling - Grade Transcripts COURSE ADMINISTRA- TION MODULE - Electives Enrollment - Class Compostition - Course Administration -Schedule Planning EXAMINOR MODULE - Exam hand-in - Plagiarism Checking - Distribution - Grading BEHIND THE MODULES OF LECTIO
  • 11. T h e S t u d e n t M o d u l e The student module contains the follow- ing tools: absence, grades, surveys & consultations. These modules primarily serves each individual pupil with informa- tion about their in-school progress. With the absence tool students are able to see when they have recorded absence and it enables each student to type in the causes of the absence for the school to see. Based on the information gathered statistics will be generated for both stu- dent and administration purposes. Grades enables the students to see their grade transcripts online. Teachers are also able to comment on the grades giv- en. Questionnaires gives student, teacher and administration the ability to create questionnaires to be shared with specific groups or individual persons. To be able to coordinate consultations, more specifically parent consultations, between the teachers and their pupilss and parents, Lectio enables the adminis- tration to create dates for the parents to sign-up for. When a family has signed up for a consultation with their child’s teach- ers, the teachers can either approve the time, or propose another time. T h e S t u d y M o d u l e The study module is a module that han- dles knowledge sharing. Both teachers and pupils are able to use this module to communicate, share information and cre- ate groups or team rooms across classes. The module contains the following sub-categories: documents, messages, groups & syllabus. The documents module enables teach- ers, administration and pupils to share documents without thinking of the doc- ument format, as Lectio handles all doc- ument types. With the messaging module, teachers and pupils are able to communicate with each other. Messages can be sent to in- dividuals or groups based on privileges chosen. Groups works on the same way as mes- saging. Pupils, teachers or administration is able to create groups across classes. This can be used for students to create study groups or teachers to create spe- cific groups across classes (for example gathering all art students in one group). The syllabus module enables the teach- ers to upload and update study plans. The syllabus module uses the various in- formation Lectio contains to enable au- tomation. ! DID YOU KNOW THAT LECTIO HAS 40 MIL- LION PAGE VIEWS A MONTH? THAT’S THE SAME AS THE DANISH NEWSPA- PER POLITIKEN!
  • 12. The Exam Module This module enables communication di- rectly with the Ministry of Education as well as exam planning, exam plans and the ability to both see and print the fi- nal grade transcripts. The exam mod- ule basically manages all information in regards to exams. This module serves the following pur- poses: reporting, planning, schedul- ing and transcripts. With reporting, the administra- tion is able to re- port whom of the schools teachers that are eligible for the Ministry of Education’s exami- nation pool, which is a pool consisting of available exter- nal examiners across different schools. The courses and their prioritized order is pulled from the Ministry of Education’s databases through Lectio and afterwards used for creating the automated exam plans. When this is created and approved by each individual school, it is sent back to the ministry who assigns external ex- aminers needed for each school. The planning resource uses the already stored information about students, teachers, rooms etc. to auto-generate the best scenarios available. Based on these information, rooms will be booked, students will be informed about their schedules, and teachers will get informa- tion on when to be where. All this can be automatically generated by Lectio, while previously it was a manual assignment for the administration to get this puzzle to fit each year. Scheduling within the exam module uses the already ex- isting schedules and puts the dates, and times of the sched- uled exam into the students’ own sched- ules. This is also used to inform teachers by putting in the exams they are hosting as well as exams they are scheduled to su- pervise. The last feature in this module enables both students and administration to view and print grade transcripts. These will be made available through Lectio, where administration can print specific classes or the individual student can print their own. TheCourseAdministrationModule The course administration module func- tions as an administrative module that helps the administration plan electives, create classes and make this puzzle solv- able so that everything is handled most efficiently. Electives enrollment enables students to pick and select electives through Lec- tio. The student logs in to Lectio and has WILL YOUR IDEA BECOME THE 7TH MODULE?
  • 13. an overview of the electives selectable. The electives can be targeted for the stu- dent based on the information already stored by Lectio. The student is also able to prioritize the electives and will receive a notification if there are not enough stu- dents for the single elective chosen. Class composition takes the already known information based on the elec- tives enrollment and the normal class enrollment to effectively and efficiently create the best schedules able. It makes sure that the classes are put into the most suitable slots in the schedule, so the stu- dents or teachers do not have gaps in their schedules. Course administration helps the admin- istration and teachers to find the most suitable plan based on the school’s edu- cational focus, teaching wishes and eco- nomical resources. All of the above is then fitted into the overall schedule planning of Lectio. The schedules can be sent out one by one, in bulks, or based on specific periods. The Examination Module The examination module contains all that is needed to organize digital exams, thus enabling Lectio to keep the costs down without having to use a lot of paper or postage on exams. This module serves the following purposes: online submis- sion, plagiarism checking, distribution and grades. Online submission is the module that handles exam hand-ins at written exams. This module functions both on- and of- fline. When the student has sent in the assignment, he/she will get a receipt that the assignment has been delivered. After the assignment has been handed in, Lectio’s plagiarism checking will check all of the documents for plagiarism. The assignment is then compared to other assignments previously handed in. Lectio compares all assignments across schools and classes. This can only be done by us- ing all of the stored information Lectio has access to. The distribution module makes sure that the correct examiner will receive the cor- rect assignments. The examiner will then receive a link on their dashboard noti- fying that there is a new assignment for evaluation. After evaluation the examiner is able to grade the student’s assignment, and give individual notes to each student based on their assignment. When all the grades have been given, each teacher is able to print all notes and grades and bring these to examiner meetings. MORE INFORMATION ABOUT THE MODULES CAN BE FOUND (IN DANISH) HERE: HTTP://WWW.LECTIO.DK/ PRODUKTINFORMATION. HTML
  • 14. The Teacher’s Point of View Whilst being the number one in educa- tion software and enabling the organiza- tions to create better workflows and new opportunities, MaCom has experienced one fundamental problem, the fact their system is so revolutionary that people, especially teachers, are afraid of becom- ing obsolete in the process. Looking back at the early ages of Dan- ish education, teachers have always been the center of education supplemented by books, blackboards and crayons. But with the introduction of this new platform the education is evolving into a new era within education, education 2.0. Moreover the current education consists of analogue books, blackboards, and in- school education, here MaCom’s vision is to create a platform that functions as a supplement to the regular education bringing the benefits of new technology into the educational environment. Education 2.0 is what MaCom describes the old way of teaching combined with the endless possibilities technology has brought into the everyday lives of near- ly all students ranging from kindergarten all the way to universities. A study has shown that a third of children get their first phone at the age of 10. MaCom wants to use this possibility to integrate the phone as a part of the education with its new platform. As MaCom is trying to change the view on education, the current generation of teachers, who grew up with the same books from 1966 as their parents, are hanging on to their old habits of teach- ing, afraid of implementing the new pos- sibilities brought to them by MaCom. The habits and mindsets of the teachers are a serious challenge ahead for MaCom and will hopefully change when this new gen- eration “the smartphone generation”, grows up to be the teachers themselves.
  • 15. A Monopolized Market As the Danish educa- tional system is run and driven almost solely by the Danish gov- ernment, MaCom has, as a private company, expe- rienced difficulties trying to enter, a market already dominated by a governmental institution. This has forced MaCom into creating this innova- tive platform to be able to take the market shares from an already existing gov- ernmental provider, UNI-C. UNI-C is a governmental institution under the Ministry of Education, which focuses on digital development within education as well as being the biggest competitor of MaCom. With UNI-C as the biggest competitor, MaCom is expe- riencing this monopolized market. Thus having a system developed for education 2.0, MaCom still has to work around this. Governmental Regulations Though MaCom is the market leader within management software for high- schools, is is still subject to governmen- tal regulations as it is working with per- sonal data from many students, schools and high schools. One thing is the per- sonal data act that states which data can be collected and how they should be stored. Therefore it is important that Ma- Com lives up to these regulations as well as the personal data act to ensure that the data is safely handled. Another thing is the requirements the government has put for systems with educational pur- poses. MaCom has had a battle with the Ministry of Education to get Lectio ap- proved for educational purposes as it has to fulfill several requirements; require- ments for study administrative process- es, subsidies, periods etc. Without these demands fulfilled, Lectio is not able to be approved. The Culture Within the Organization MaCom is a relatively young organization consisting of mainly developers and sup- porters, besides the two founders who function as the only business developers. MaCom has 20 employees with an aver- age employee age around 30, thus cre- ating a very young and dynamic culture within the organization. This setup has some key benefits as most of their employees have grown up with the very same education system they now are responsible for redesigning, thus cre- ating the education of tomorrow. Martin Holbøll describes Lectio as the fol- lowing: “In contrast to other software companies that deploy new versions on an annual basis, MaCom strives to come with a new version of Lectio every day”. With this approach Lec- tio is able to stay updated at all time without any innovators to drive the development of the software. GENERAL MANAGEMENT SUPPORTERS DEVELOPERS PROJECT MANAGERS 1ST LINE MAN- AGERS ANALYSTS
  • 16. Target Group As mentioned earlier, the primary users of Lectio are the students of the various high schools using Lectio. With this being said, the target group MaCom is aiming for with this new platform, is students at various universities studying IT. As well as any other app store on the market, Ma- Com only wants to facilitate the frame- work of the app store, creating a place for creativity using whatever framework is available. Thus creating the app store itself enabling IT students, developers, teachers etc. to be able to put “fish in the aquarium” as Martin Holbøll says. MaCom is especially hoping for the teachers to embrace this new platform as it enables them to publish their works in order to break with the regular pub- lishers, such as Gyl- dendal, whose busi- ness model is known for asking 85-90% of the profit gains. Thus creating a plat- form where you can gain 70% profit (Ma- Com takes 30%) on your input, instead of the usual 10-15% provided by publish- ers. This potential of 70% in profits cre- ates incentives, especially for the teach- ers as e-learning is expected to grow 23% a year between 2013 to 2017. Though everything sounds too good to be true for the teachers, MaCom has run into the problem that the first-movers in the technology are usually not the teach- ers, but the generation being educated. Therefore MaCom wants to address this problem by turning to the IT students and/or developers to get the aquarium filled. And when the aquarium is full, it will hopefully create a platform that be- comes so popular that the teachers are unable to avoid it and eventually will em- brace this new education 2.0. When this mission is completed, we will have a new app-store, like Apple’s, but within educa- tion. Financial Situation MaCom is a company with a solid eco- nomic foundation. The gross profit has been consistent through the last many years with only few drops even through the financial crisis. Though being an or- ganization in constant growth, MaCom has been able to uphold a solid equity around DKK 10 mil. With MaCom being a solely software-oriented company, they are able to keep their capacity costs at a steady level. The only drop in their finan- cial situation is seen in 2012, where one of their customers was declared bank- rupt, therefore 2012 shows a big loss in the net profit.
  • 17. Business Model The current business model of MaCom is based on licensing. The basic module costs DKK 10.000 a year. This covers one department at one school. Each extra module costs DKK 10.000 per depart- ment a year. To put this into context, a similar system from its competitors costs approximately one million DKK a year. An example, based on a random high school with two departments, an eco- nomic institute and a technological insti- tute. They have chosen all modules. Two departments (economic & tech- nology) * (6 modules) * DKK10000 = DKK120.000. Though most schools only have one department it is still close to 90% savings compared to a competitive system and this is without considering the human capital. As Lectio is a system hosted in the cloud, MaCom is able to implement this system in 1-2 days which enables the schools to cut costs from day one. As mentioned earlier, the business mod- el for this digital learning is to provide a framework for developers to use and af- terwards take a cut of the gross earnings. MaCom has decided to follow the gen- eral approach on the app market, taking 30% of the retail price, leaving 70% for the developers. Though utilizing this business model, MaCom is open for suggestions on their model, as long as it helps getting the aquarium filled. That would mean if the best idea ever where to pop up, MaCom is willing to forfeit this fee to the greater cause of their plat- form. Marketing Within the area of marketing, MaCom has experienced that the most efficient way is mouth to mouth and is thus not do- ing any specific marketing. The one thing MaCom is doing, is sharing stories about using MaCom in a magazine published by “Gymnasieskolernes Lærerforening” (The High School Association of Teachers) which is published each month. These stories include positive stories about the use of Lectio and can be found on lectio. dk under Experiences. The schools can also request a visit by MaCom, but often when this is done, the decision about pur- chasing Lectio has already been made. Whats next? We don’t know and this is where you come in. The case is to be upload- ed online on https://podio.com/web- forms/7985462/600252 as well as copied to the USB provided. The online submis- sion form will close on the 9th of May at 18:00. Good luck!
  • 18. CASE WRITERS Kristoffer Brodersen Stefan Johansen THANKS TO On behalf of IT Case Competition 2014, we, the case writers would like to thank the following people for their invaluable input to this case and the creation of ITCC 2014. MaCom Everyone at the MaCom office at Vesterbrogade 48, 1620 KBH V and especially the following people who made this case become a reality: Martin Holbøll, CEO Mads Poulsen, Board President Signe Friis Jensen, Project Manager MENTORING Andreas Nielsen, PA Consulting Group Christian Øhrgaard, Pandora (prev. PACG) GRAPHIC DESIGN Stefan Johansen DISCLAIMER THIS CASE IS THE SOLE RESPONSIBILITY OF THE TWO WRITERS ALONE. MACOM IS SUBSEQUENTLY NOT RESPONSIBLE FOR ANY STATEMENTS OR CONSTRUCTIONS IN THIS CASE REGARDGING ITS BUSINESS OR OPERATIONS. THIS CASE CANNOT BE USED OUTSIDE OF IT CASE COMPETITION 2014 AND MAY NOT BE PUBLICLY QOUTED OR COPIED WITHOUT THE ACCEPT OF THE AUTHORS. MAY THE FORCE BE WITH YOU. COPYRIGHT OF IT CASE COMPETITION 2014.