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MM 5011 Knowledge Management and Innovation

Group Assignment Compumat: Math That Can`t Add

Syndicate 2 X.46 (Great Leaders Syndicate) 29111311 29111328 29111329 29111338 29111344 29111384 29111387 29111393 Haidir Afesina Hendra Winata Mita Listyatri Andek Prabowo Aprian Eka Rahadi Chairunnisa Mirhelina Franciscus Xaverius Kresna P Agung Indri Pramantyo

MASTER OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS AND MANAGEMENT INSTITUT TEKNOLOGI BANDUNG 2012

Background Mara Victoria Marshall, founder of Compumat S.A, developed math learning software called E-mat. The software is using entertainment to engage students in a virtual learning community to practice their skills. The number of school (private and public) is nearly 11.000 in Chile with their 1.9 million students are becoming the potential market. The software was first sold in 2006, by June 2009 nearly 13.000 students in 85 schools in Chile were using it. Objective To help Chilean students between 8 and 14 years old to learn math on line at their own speed to improve their performance Problem The company has not reached the breakeven point after five years of commercial operation with the challenge in Cultural barriers in adoption new educational software and teaching methodologies are imposed by teachers who: o Recent external services o Afraid of new technologies and innovatiove teaching methods o Unwilling to adopt change in their teaching methods Lesson Learned 1. Change the way students study math is needed in order for Chili to develop. Innovation in entrepreneurship is about a change to make meaning as an opportunity helping lots of people, doing what is right and paying back society to improve the quality of life (Bessant and Tidd, 2011). 2. Marshall has doubts about where to focus in terms of profitability and competitive advantage. Good positioning targeted the intended customer as it communicated the message of the product ability to solve the problem and differentiate it (Kawasaki, 2004). 3. Compumat has not yet developed appropriate distribution channels for its software, nor has it advertised its products. Partnership should benefit and enhance both parties, only if it specifies what each partners do and when (Kawasaki, 2004). 4. Marshall estimated that three to four visits and meetings are needed before a school signs annual contract.

Mass markets and niche markets require different approaches, while


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segmented customer bases share similarities, but their needs vary slightly (Osterwalder and Pigneur, 2010). 5. The size of the business was not consistent with the size of the operations and sales team. Define a clear business model is needed to describe how company works (Osterwalder and Pigneur, 2010). Recommendation 1. Business Model Long Tail Business Model It provides for the sale of a wide variety of personalized products to a mass market of small-quantity buyers. 2. Business Strategy a) Marketing Gained a certification from the central government also have it patented. E-mat will find it easier to be considered part of the educational budget in a municipality once it authorized also gain trust from public and investor. Computer human interaction concept. The software must design computer human interaction concept not only in student perspective but also in teacher and parents perspective. E-mat software must design in simple way so the teachers and parents feel comfort and will feel that using the software is very easy. Standard of Human computer interaction must based on novice teachers (as user) with no experience in whatever software before. So, the teacher will feel that with Compumat, their job to teach math to student (for their children if using by parents) become easier and successfull than before. Compumat also must provide free pre-training before the teachers or parents use the software at class or in home. If needed, Compumat can build community of math teachers and students to help them in develop and improve the software. This condition will make the teacher or parents as partner and marketing agent indirectly for Compumat products in their school or community.

Figure 1 Computer Human Interaction in Compumat

Figure 2 Free Training for teacher or parent

Customer relationship. Cooperate with government, reputable university and others researchers in order to share the effectiveness, strength and weakness of the software from customer insight. It is not only promoting it but also helping for the next innovation development

b) Sales Customized contract. Compumat can offer the schools to buy the software license for no limit time at once and per school basis, not per student basis anymore. The schools got 1 year free maintenance support, include upgrade version of software, math expert assistance. School only need to pay maintenance support after first year for one year period. For instance, the price of software before is USD $100 per student basis per year, with this new concept, license for no limit time price as $10,000
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per school and maintenance support(include software-upgrade) starting for next year is $2,000 per school per year. With this condition, no-limit time contract will perceived by Compumat for each school and they can maintain or minimize customer churn rate.

Figure 3 Licensing & Maintenance Support Model

Purchasing Discount There is also discount for purchasing another product of Compumat if a school already Compumat customer. The more they buy variation of Compumat product means more discount will perceive for that school.

Figure 4 Purchasing Discount Model

c) Human Resources Recruit people who have faith with the company and passion with the industry. Successful organization need people who good at implementing the company vision and mission
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References Bessant, John and Tidd Joe (2011) Innovation and Entrepreneurship (2nd Ed), Chichester: John Wiley & Sons Kawasaki, Guy (2004) The Art of The Start, London: Penguin Books Osterwalder, Alexander and Pigneur Yves (2010) Business Model Generation, John Wiley & Sons