September 2016 Digital Transformation Product Envisioning
Digital Transformation and Product Strategy for a Private Online Education Provider
A private Australian online education provider needed to transform its technology environment and fundamentally rethink its product delivery model in response to regulatory change and shifting market conditions. Knowble delivered a comprehensive three-year ICT strategy across sixteen initiatives, followed by a product development and delivery strategy that assessed market opportunities, evaluated leading learning platforms, and defined the methods and architecture needed to launch differentiated learning products in a fee-for-service market.
Overview
The client — a private Australian online vocational education provider and subsidiary of an international education group — was navigating a period of significant change. Recent acquisition, leadership transition, and major regulatory reform across the vocational education sector were converging simultaneously. The organisation's ICT environment had grown organically and was no longer fit for purpose, while shifting funding models demanded a fundamental rethink of how learning products were developed, delivered, and taken to market.
Knowble was engaged to deliver two interconnected pieces of work: first, a comprehensive ICT strategy and three-year roadmap to transform the technology foundation; and second, a product development and delivery strategy to position the organisation for growth in a fee-for-service and business-to-business market — addressing both the technology platform and the method by which new learning products would be conceived, built, and launched.
The Challenge
The assessment revealed an organisation whose technology environment had significant structural gaps across five dimensions:
- Underinvestment — IT spend was approximately 2% of revenue, less than half the industry benchmark of 4.9–7.6% for education providers, with zero capital investment and 100% operational spending
- Platform risk — the learning management system and student management system were tightly coupled in a single platform, creating a critical single point of failure. Over forty security vulnerabilities were identified in the current version, representing considerable risk to student personal information
- No formal development practices — there was no defined development methodology, no test management process, no reliable release management, and development was occurring directly in production environments
- Information management gaps — no data governance framework, no reliable central repository, highly manual data gathering for regulatory reporting, and a prior data loss event with a previous vendor creating ongoing compliance exposure
- Limited tooling — beyond the ERP investment, there were limited formal tools for sales, marketing, student services, and aftermarket engagement. Spreadsheets had evolved into de facto line-of-business applications
Compounding these technology challenges, the regulatory landscape was shifting fundamentally. New quality standards meant that seventy-five percent of registered training organisations had failed to meet minimum standards at audit. The organisation's funding model was moving away from government-subsidised fees toward fee-for-service and B2B revenue, requiring it to differentiate through the quality and uniqueness of its learning products rather than relying on accessible funding.
Our Approach
This engagement combined two of Knowble's service areas: Leadership Advisory for the ICT strategy and digital transformation roadmap, and Applied Innovation for the product development and delivery strategy.
Phase 1: ICT Strategy and Roadmap
Delivered within a four-week window, the strategy was developed through approximately twenty-five one-on-one stakeholder interviews with senior leadership and staff, consultation with the parent company's ICT team and key vendors, desktop industry and vendor research, and direct observation of operational practices. The current state was assessed across five dimensions — market, people and resourcing, governance, information, and systems — before defining the future state architecture, platform strategy, and prioritised program of work.
Phase 2: Product Development and Delivery Strategy
The second engagement addressed the strategic question of how the organisation would establish itself as a provider of differentiated learning products. This involved consultation with experienced product and instructional design staff, desk-based market research into leading learning platforms and delivery models, evaluation of the current ICT platform's fitness for the product roadmap, and development of a formal product development methodology covering the full lifecycle from concept through to market delivery.
What We Delivered
ICT Strategy and Roadmap
The strategy delivered a complete transformation plan built on eight ICT principles and a platform-centric architecture:
- Platform strategy — a cloud-first architecture centred on separating the learning management system from the student management system to enable independent innovation in learning delivery, with a CRM platform providing a 360-degree student view across the entire lifecycle from recruitment through to career placement
- Sixteen prioritised initiatives across five domains — People (IT function establishment, HR systems), Governance (process definition, information governance, product development lifecycle), Information (enterprise reporting, system integration), Applications (information management, SMS/LMS remediation, community engagement portal, partner portal, employer engagement portal), and Infrastructure (monitoring, security, telephony, hosting consolidation)
- Three-year investment plan — a fully costed program of work with budgetary estimates, resource profiles, delivery options, and variance analysis, demonstrating the investment required to bring IT spending in line with industry norms
- Delivery methodology — recommendation to adopt agile/SCRUM practices across the organisation, with specific guidance on specialist roles (SCRUM Master, release manager, test manager) and modern development practices including containerised environments and sandbox-based development
Product Development and Delivery Strategy
The product strategy addressed the organisation's need to compete on the quality and innovation of its learning products:
- Market and product analysis — assessment of market trends including mobile learning, blended delivery, curriculum customisation, simulation, and immersive technologies, mapped against the organisation's capabilities and competitive position
- Platform evaluation — research and evaluation of leading learning management platforms against the product roadmap requirements, covering user experience, functionality, scalability, and budget alignment
- Product development lifecycle — a formal six-phase methodology covering concept definition, design and prototyping, implementation, testing, production release, and maintenance — giving the organisation a repeatable, governed process for bringing new learning products to market
- ICT architecture alignment — revised architecture recommendations to ensure the technology platform could support the product development plan and the desired user experience models for learning delivery
Outcomes
The combined engagement gave the organisation's leadership the strategic clarity to navigate a critical transition period:
- Transformation roadmap — a prioritised, costed plan that translated the organisation's strategic ambitions into a concrete program of technology investments, enabling informed decision-making about sequencing, resourcing, and budget allocation
- Risk reduction — critical security vulnerabilities and platform risks were formally documented and prioritised, with the separation of learning and student management systems positioned as the foundation for all subsequent capability development
- Product-market readiness — the product development strategy equipped the organisation with a formal methodology and platform assessment to develop differentiated learning products for a fee-for-service market, directly supporting the board's requirement for a credible growth plan
- Investment alignment — the strategy demonstrated how to leverage existing platform investments and parent company assets to maximise the return on new technology spending, particularly through cloud-first and platform-based approaches
- Organisational capability — recommendations for formal IT function establishment, agile delivery practices, and information governance gave the organisation a path to building the internal capability needed to sustain the transformation beyond the consulting engagement
Navigating market change and technology transformation simultaneously?
Learn more about our Leadership Advisory and Applied Innovation services, or get in touch to discuss how we can help.