{"id":20249,"date":"2016-11-18T17:55:43","date_gmt":"2016-11-18T22:55:43","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/digitizing-daycare-how-the-learning-care-group-has-used-technology-to-get-ahead\/"},"modified":"2016-11-18T17:55:43","modified_gmt":"2016-11-18T22:55:43","slug":"digitizing-daycare-how-the-learning-care-group-has-used-technology-to-get-ahead","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/digitizing-daycare-how-the-learning-care-group-has-used-technology-to-get-ahead\/","title":{"rendered":"Digitizing Daycare: How the Learning Care Group has used technology to get ahead"},"content":{"rendered":"

Introduction<\/strong><\/p>\n

Of the 20.4 million US children under the age of 5, approximately 24% (4.8 million) were in organized daycare facilities as of 2011.[1]<\/a><\/sup> Web-based applications are helping daycare centers enhance connectedness with parents who do not get to see their children during the workday. Additionally, these applications help daycare centers reduce the time spent creating daily child-level progress reports.<\/p>\n

The US daycare industry is estimated to be roughly $33B, but is highly fragmented.[2]<\/a><\/sup> The private, for-profit Learning Care Group (LCG) has grabbed a decent market share with annual revenues estimated at $700M.[3]<\/a><\/sup> Across its 900+ facilities operated under a family of brands (Tutor Time, Montessori Unlimited, plus others) LCG is experimenting with multiple education documentation applications.[4]<\/a>,[5]<\/a><\/sup> Within this post we examine the value these applications generate for both parents and LCG. Additionally, we will look at the operational adjustments LCG needs to make to incorporate these applications.<\/p>\n

Parents\u2019 Perspective<\/strong><\/p>\n

Education documentation applications provide platforms for daily child-specific updates to parents across several categories of information such as mood, activities, eating, naps, potty training, attendance, and requests for additional supplies (such as diapers). Additionally, the ability to provide pictures is usually a feature of these applications. Also, some of these applications allow parents to engage with teachers. At Tutor Time centers, LCG has implemented the PreciouStatus app. Below are some examples of information updates for my nephew from the PreciouStatus iPhone app showing bathroom updates, food consumption, nap duration, and a quote from him:<\/p>\n

\"ps3\"<\/a> \"ps2\"<\/a> \"ps1\"<\/a><\/p>\n

The value generated for parents from PreciouStatus (and similar applications such as LifeCubby and Montessori Compass) is heightened connectedness with their child and increased satisfaction with parent-teacher communications.[6]<\/a>,[7]<\/a><\/sup> The picture updates tend to be a favorite feature, at least for the Montessori Compass. [8]<\/a><\/sup> Parents can use the information from these applications to engage with their children about their day and learn about their child\u2019s sleep and eating habits. Also, the applications are free for parents.<\/p>\n

LCG Perspective<\/strong><\/p>\n

Business Model<\/em><\/p>\n

There is a case to be made that LCG has differentiated itself from other daycares along the lines of parent engagement. While comprehensive, unbiased data to prove this is scant, there is anecdotal evidence to support this claim. For instance, 3 out of 15 (20%) of the positive reviews for the Wichita, KS Tutor Time cite the PreciouStatus app as a feature they enjoy about the facility.[9]<\/a><\/sup> Additionally, the Tutor Time website specifically markets its use of mobile apps as a way for parents to keep connected with their children.[10]<\/a><\/sup> However, large competitors such as Bright Horizons are keeping pace with LCG, releasing a proprietary mobile application with similar functionality to PreciouStatus in August 2015 to replace paper based reports.[11]<\/a><\/sup><\/p>\n

Operating Model<\/em><\/p>\n

Assuming that parents require a daily update about their child, education\u00a0documentation applications can replace paper reports or face-to-face interactions. Implementation requires an investment in technology, likely a tablet such as an iPad and training of staff in how to use the application. However, the time savings for a center already producing paper reports can be high, with 20X savings versus creating the same content by hand.[12]<\/a><\/sup> Additionally, in some instances parents have been sufficiently engaged by the applications that they do not feel the need for in-person parent-teacher conferences, providing further time savings to school staff.[13]<\/a><\/sup><\/p>\n

The costs LCG must pay to implement these applications are small and likely beneficial overall when considering the time savings generated. Pricing per student per month is between $1 and $2 for a medium sized class (>=12 students) on Montessori Compass and LifeCubby.[14]<\/a>,[15]<\/a><\/sup> If we distributed the cost of an iPad across a medium sized class, assuming a 3-year useful life, it would amount to ~70 cents per student per month ($300 \u00f7 36 months \u00f7 12 students). [16]<\/a><\/sup> In total, the costs for implementation are a few dollars per student per month, which is very small compared to the cost of tuition (which exceeds $1,000 per month in Massachusetts for example[17]<\/a><\/sup>). This appears to be a case where applications have created value for both the customer and firm by providing a platform for information exchange.<\/p>\n

 <\/p>\n

What\u2019s next?<\/strong><\/p>\n

A likely next step for LCG is to implement more holistic education documentation that incorporates tools for teachers such as lesson planning. Montessori Compass already offers some of this functionality and LifeCubby recently released a software integration application geared towards reporting lesson plans and academic growth.[18]<\/a><\/sup> Looking ahead even further, LCG will need to think big to stay differentiated. For instance, can the data generated from education documentation be used to identify developmental disabilities earlier than traditional observations? Are there other ways to leverage the trove of data begin generated by these applications to improve academic outcomes for children?<\/p>\n

 <\/p>\n

Word Count: 782<\/p>\n

[1]<\/a> Laughlin, L. “Who\u2019s minding the kids? Child care arrangements: Spring 2011 (Current Population Reports, pp. 70\u2013135). Washington, DC: US Census Bureau.” (2013).<\/p>\n

[2]<\/a> Daycare Business Overview & Trends, 2014 http:\/\/www.sbdcnet.org\/small-business-research-reports\/daycare-business-2014<\/a>, accessed Nov. 18, 2016.<\/p>\n

[3]<\/a> Roumeliotis, G. and Kim, S., \u201cMorgan Stanley near deal to sell Learning Care\u201d, Apr. 11, 2014, http:\/\/www.reuters.com\/article\/us-learningcare-sale-idUSBREA3A1U220140411<\/a>, accessed Nov. 18, 2016.<\/p>\n

[4]<\/a> Learning Care Group \u201cabout us\u201d webpage, https:\/\/www.learningcaregroup.com\/about-us\/<\/a>, accessed Nov. 18, 2016.<\/p>\n

[5]<\/a> Alexander, S. (2014, Feb 15). PreciouStatus wants to become the informative app for day-care parents.\u00a0McClatchy – Tribune Business News\u00a0Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1498254141?accountid=11311<\/a>, accessed Nov. 18, 2016.<\/p>\n

[6]<\/a> Ellis, Michelle L., “The Efficacy of Classroom Management Software on Parent-Teacher Communication” (2015). Masters of Arts in Education Action Research Papers. Paper 110.<\/p>\n

[7]<\/a> Seril, Lindsey A., “Communicating Effectively with Parents in the Montessori Environment” (2015). Masters of Arts in Education Action Research Papers. Paper 116.<\/p>\n

[8]<\/a> Ellis, Michelle L., “The Efficacy of Classroom Management Software on Parent-Teacher Communication” (2015). Masters of Arts in Education Action Research Papers. Paper 110.<\/p>\n

[9]<\/a> Reseller Ratings, Tutor Time – 7026 West 21st Street<\/a>, http:\/\/www.resellerratings.com\/store\/TT_Wichita_Ks_6367<\/a>, accessed Nov. 18, 2016.<\/p>\n

[10]<\/a> Tutor Time \u201ctechnology\u201d webpage, https:\/\/www.tutortime.com\/parent-resource-center\/technology\/<\/a>, accessed Nov. 18, 2016.<\/p>\n

[11]<\/a> iTunes App Store, \u201cMy Bright Day\u201d, https:\/\/itunes.apple.com\/us\/app\/my-bright-day\/id1025221590?mt=8<\/a>, accessed Nov. 18, 2016.<\/p>\n

[12]<\/a> Ghose, C., “LifeCubby lets parents watch child care centers from iPad”, Jan 25, 2013, http:\/\/www.bizjournals.com\/columbus\/print-edition\/2013\/01\/25\/lifecubby-lets-parents-watch-child.html<\/a>, accessed Nov. 18, 2016.<\/p>\n

[13]<\/a> Ellis, Michelle L., “The Efficacy of Classroom Management Software on Parent-Teacher Communication” (2015). Masters of Arts in Education Action Research Papers. Paper 110.<\/p>\n

[14]<\/a> Montessori Compass \u201cpricing\u201d webpage, http:\/\/montessoricompass.com\/pricing<\/a>, accessed Nov. 18, 2016.<\/p>\n

[15]<\/a> LifeCubby homepage, https:\/\/www.lifecubby.me\/index.php<\/a>, accessed Nov. 18, 2016.<\/p>\n

[16]<\/a> Amazon.com iPad deals, https:\/\/www.amazon.com\/Apple-MC769LL-Tablet-Black-Generation\/dp\/B0013FRNKG<\/a>, accessed Nov. 18, 2016.<\/p>\n

[17]<\/a> Economic Policy Institute, \u201cThe Cost of Childcare in Massachusetts\u201d, http:\/\/www.epi.org\/child-care-costs-in-the-united-states\/#\/MA<\/a>, accessed Nov. 18, 2016.<\/p>\n

[18]<\/a> LifeCubby and FunShine announce the integration of their software platforms. (2016, Nov 03).\u00a0ICT Monitor Worldwide\u00a0Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1835372443?accountid=11311<\/a>, accessed Nov. 18, 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

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