2A Explanation of the new initiative. This is the “What?”

What is LEGO Learn?

LEGO Learn is our proposed subscription service for children to receive a personalised educational Lego set. This initiative effectively combines business model reinvention, product development, and customer service enhancement to address Lego’s strategic challenges.

Main page of LEGO Learn

Business Model Reinvention

This initiative incorporates a subscription based business model that also promotes a circular economy and reduces operating costs for Lego. Full details of the subscription are in the customer journey map and video presented by Zoey and Jasmine below:

Product Development

For the subscription, educational Lego sets in topics such as global awareness and STEAM, will be developed. Lego will collaborate with Area9 Lyceum, a venture it currently invests in through LEGO Ventures, Lego’s venture capital group. Area9 Lyceum is a leader in dynamic and personalised learning, as well as education research and data analytics. This initiative will incorporate their Rhapsode LEARNER, an online learning platform, to design the digital app to complement learning with the Lego set (Area9, 2021).

Customer Service Enhancement

A key component of our digital initiative involves data analytics and artificial intelligence (AI) to customise the subscription for the child. This enhancement ensures children receive products that meet their educational needs, develops their key skills effectively and ultimately increases the value of Lego.

According to Lego’s Privacy Policy page, Lego faces strict rules about how they can use data from children under 16 and must receive explicit consent from parents to collect it (Lego, 2018).

Data for our algorithm will come from three main sources:

Upfront data about Lego customer purchasing history, consumer preferences, and industry trends. Lego can also leverage Area9’s large datasets in their algorithm.
Data from onboarding and continuous feedback surveys that parents fill out before purchasing the subscription and after each package.
Digital touch data will be collected when the child uses the app that accompanies the subscription.

This data combined with Area9’s data analytics expertise will allow Lego to create an AI software to curate the educational subscription for each child’s needs. The AI algorithm is inspired by StitchFix’s algorithm which tailors fashion to customers needs based on customer feedback. As the algorithm learns from feedback surveys and uses collaborative filtering, it improves product matches (Colson et al.).

Onboarding Survey

Feedback Survey

Proceed to the next page to see why LEGO Learn is necessary

References

Area9 Lyceum, 2021. Rhapsode Learner™ – Personalized Learning experience. Area9 Lyceum. Available at: https://area9lyceum.com/the-platform/rhapsode-learner/ [Accessed March 7, 2022].

Colson, E., Coffey, B., Rached, T. and Cruz, L. (no date) Stitch fix algorithms tour, Stitch Fix. Available at: https://algorithms-tour.stitchfix.com/ [Accessed: March 5, 2022].