EdTech Insight – How to find opportunity in a crisis: Launching a spinoff business

by | Apr 11, 2024 | Blog

Executive Summary and Main Points

The discussion with Drop Technologies CEO Derrick Fung offers several insights into strategic business innovation, especially in the context of responding to global events such as the COVID-19 pandemic. Fung shares valuable lessons from launching Cardify (now Drop for Business), a separate venture from Drop’s core business, highlighting the benefits of data monetization, the need for swift adaptation, and focusing on high-margin opportunities in challenging times. This indicates a broader trend in leveraging consumer data for targeted marketing and enhanced e-commerce experiences.

Potential Impact in the Education Sector

The strategic approaches discussed by Fung have implications for the education sector, as institutions can leverage data to enhance student recruitment and engagement. Further Education and Higher Education can use consumer behavior insights to optimize marketing strategies and create more tailored educational offerings. Moreover, Micro-credentials can capitalize on such data to design demand-driven courses, cultivate strategic partnerships with industry, and foster personalized learning experiences that align with market needs.

Potential Applicability in the Education Sector

Innovative applications may include AI-driven analytics platforms for predicting student success, adapting curriculums based on real-time labor market data, and creating customized learning paths. Adopting a data-centric approach similar to Drop’s could empower educational institutions to make informed decisions, improve student retention rates, and align curricular developments with emerging professional trends globally.

Criticism and Potential Shortfalls

Critically, while data-driven strategies offer competitive advantages, they also raise concerns about privacy, consent, and the ethical use of personal information. International case studies reveal varying degrees of regulatory compliance and cultural sensitivities regarding data privacy in education. Institutions need to navigate these complexities to avoid eroding trust or breaching ethical and legal standards.

Actionable Recommendations

Educational leaders should consider robust data governance frameworks, transparent communication with stakeholders, and strategic investments in digital infrastructure. Collaboration with technology partners can help integrate sophisticated data analytics into decision-making processes, and continuous professional development in data literacy for staff may further sustain innovation in global higher education dynamics.

Source article: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/how-to-find-opportunity-in-a-crisis-launching-a-spinoff-business