The Business of Mobile Apps
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The Business of Mobile Apps



TIM Presentation: The Business of Mobile Apps

TIM Presentation: The Business of Mobile Apps



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The Business of Mobile Apps The Business of Mobile Apps Presentation Transcript

  • The  Business  of  Mobile  Apps   February 2012 Brian Hurley President and CEO, Purple Forge Corp © 2012 Purple Forge Corporation
  • Spread  the  Love   •  I am happy to freely share my knowledge and experiences to help you in achieving your goals •  Only expectation is you do the same in the future for others •  Strengthens our community •  You will never regret the time invested in sharing. You will learn as you share your learning. Added bonus of generally “doing good” as Tony says!©    2012  Purple  Forge  Corpora1on  
  • Agenda   •  Pre-amble •  Part 1 - Building a Mobile App Business •  Discussion •  Break •  Part 2 - Selling, Challenges, Operationalizing •  Discussion©    2012  Purple  Forge  Corpora1on   View slide
  • Caveat  Emptor   •  Based on my experiences with Purple Forge and Liquid Computing •  My opinions •  There is more I don’t know then I know •  I am not a lawyer •  Mobile is a rapidly developing and dynamic environment©    2012  Purple  Forge  Corpora1on   View slide
  • Purple  Forge  -­‐  Overview   •  Founded 2008 •  Headquartered in Ottawa •  Federally incorporated •  Leadership: –  Brian Hurley, President and CEO –  John Craig, VP Sales and Marketing •  Private company – no investors •  Hosted mobile app solutions •  iOS, iOS Tablet, Android, Mobile Web, Blackberry •  Over 100 apps published •  Reseller partners in US, Canada •  Sales in US, Canada, South America, Europe, Australia •  Revenue growth doubling every year •  International awards and recognition©    2012  Purple  Forge  Corpora1on  
  • Purple  Forge  -­‐  SoluAons   •  Political Campaigns •  Government •  Market Research •  Conferences & Events •  Print Replacement •  Tourism •  Public Consultation •  Advocacy and Associations •  Celebrities©    2012  Purple  Forge  Corpora1on  
  • Purple  Forge  OpportuniAes  •  Virtual Concierge Licensing•  Postcard App Licensing (10+ themes que’d up)•  Customer Portal Licensing•  Reseller / Referral Partnerships•  Jobs ©    2012  Purple  Forge  Corpora1on  
  • The  Mobile  Apps  Gold  Rush   Ref:  Telus  Mobile  SoluAons,  Jan  2012      ©    2012  Purple  Forge  Corpora1on  
  • Gold  Rush  Stories  ©    2012  Purple  Forge  Corpora1on  
  • Case  Study  1  ©    2012  Purple  Forge  Corpora1on  
  • Case  Study  1The idea is hard©    2012  Purple  Forge  Corpora1on  
  • Case  Study  2  ©    2012  Purple  Forge  Corpora1on  
  • Case  Study  2An idea needs tohave a path tomake money©    2012  Purple  Forge  Corpora1on  
  • Case  Study  3  ©    2012  Purple  Forge  Corpora1on  
  • Case  Study  3Validate path tomoney withprospective customers©    2012  Purple  Forge  Corpora1on  
  • Building  a  Mobile  App  Business   Determining   how  idea   Turning   Developing   can  make   idea  into   Selling     an  Idea   money   an  App   Part  1   Part  2  ©    2012  Purple  Forge  Corpora1on  
  • Making  Money  with  Apps   Product  Focused   •  Pay  for  Downloads   •  AdverAsing  (e.g.  Apple  iAds,  Google  Ads)   •  Sponsorship  (e.g.  splash  page,  branded  app)   •  Digital  “Goods”  (e.g.  game  levels,  extra  health/points,  new  features)  Making  Money   •  SubscripAon/Memberships  (e.g.  content,  feature  use,  membership  access)   •  TransacAon  fee(s)  (e.g.  per  transacAon  fee,  %  of  transacAon)   •  Sell  physical  products  (e.g.  Ackets,  printed  photos)   •  DonaAons   Service  Focused   •  Build  Apps  on  Contract  to  Customers  ,  e.g.  Macadamian  Technologies   •  Sell  Hosted  Apps  to  Customers,  e.g.  Purple  Forge   Complementary  Product  Focused   •  License  Source  Code  to  App  Developers   •  Sell  Cloud  Services  to  App  Developers   •  Marke:ng/Business  Development  Services  to  App  Developers   •  Sell  complimentary  hardware  (e.g.  auto  diagnos:cs,  medical,  card  readers)   *  -­‐  not  in  scope  for  today  ©    2012  Purple  Forge  Corpora1on  
  • Downloads  -­‐  Opportunity  h[p://­‐average-­‐ios-­‐app-­‐publisher-­‐isnt-­‐making-­‐much-­‐money/   ©    2012  Purple  Forge  Corpora1on  
  • Downloads  -­‐  What  Does  it  Take?   United States (Daily Downloads) •  Top 50: 25 thousand •  Top 25: 45 thousand •  Top 10: 80 thousand Canada is approx 1/10th US Ref:  h[p://­‐answering-­‐series-­‐download-­‐volume-­‐needed-­‐to-­‐hit-­‐the-­‐top-­‐charts/   h[p://­‐apps/  ©    2012  Purple  Forge  Corpora1on  
  • Digital  Goods   “In  –App  Purchase”  ©    2012  Purple  Forge  Corpora1on   h[p://­‐Spend-­‐Average-­‐of-­‐14-­‐per-­‐TransacAon-­‐in-­‐iOS-­‐and-­‐Android-­‐Freemium-­‐Games  
  • AdverAsing   h[p://­‐money-­‐with-­‐iads-­‐not-­‐so-­‐easy   h[p://­‐iAd-­‐StaAsAcs  ©    2012  Purple  Forge  Corpora1on   h[p://­‐iad-­‐revenues.html  
  • Sponsorship   Can sell sponsorship of the app as a whole or sponsor elements separately For example, can sell sponsorships for elements of an app: •  Splash screen logo •  About page •  Pop-up •  Slide in/out banner ad •  Individual functions/features of app Sponsorships can be time-based, e.g. sold year by year, or during specific days (if time-related event) We’ve seen conference-app related sponsorships ranging from $5K – $25K+ Sponsors are typically looking for name/brand visibility to app audience or app owner©    2012  Purple  Forge  Corpora1on  
  • SubscripAons  –  Content   •  Media content subscription, e.g. New York Times, Netflix, Zino •  Books (e.g. iBook), Publications •  “In-App” and “Out-of-App” purchase©    2012  Purple  Forge  Corpora1on  
  • SubscripAons  –  Membership  ©    2012  Purple  Forge  Corpora1on  
  • TransacAon  Fees  ©    2012  Purple  Forge  Corpora1on  
  • Physical  Goods  ©    2012  Purple  Forge  Corpora1on  
  • Build  Apps  on  Contract   •  Contract Types –  Fixed cost –  Time and materials •  Contract Scope –  Server + Mobile Client –  Mobile Client Only •  Typical Rates –  Hourly Rates: $20 - $150/hour –  Fixed Fee Contracts: $10K - $100K+ •  Typical Terms –  50% on signing, 50% on sign-off –  Usually have to assign IP and source code to the client with indemnification •  Competition –  Thousands of companies offering “hired gun” services –  Lots of Offshore services and proxy companies pushing price down –  Large companies starting to do work in-house for large/©    2012  Purple  Forge  Corpora1on   strategic – but will always be demand for custom dev
  • Hosted  Apps   •  Setup fee •  Monthly hosting fee •  Base offer - modules •  Customizations extra •  One-stop solution •  Fast delivery •  Economical cost •  Worry free support©    2012  Purple  Forge  Corpora1on  
  • Cloud  Services  ©    2012  Purple  Forge  Corpora1on  
  • Smartphones  Key  A[ributes   Demographics Technology •  Over 1/3 of population owns a •  Location aware Smartphone and growing •  Push notifications •  Replacing desktop as primary •  Compass method of accessing online •  SMS information •  MMS •  Camera(s) – Front and Back •  Video(s) – Front and Back •  Audio recording •  Voice recognition •  Accelerometer •  Touch interface •  WiFi •  Bluetooth •  NFC •  Cloud services (e.g. Siri, Google)©    2012  Purple  Forge  Corpora1on  
  • Why  Do  People  Use  Apps?  •  Access to internet is continuous during day for smartphone users - apps are downloaded anywhere and at anytime – considered rewarding in itself…•  Apps preferred over mobile web because: –  Quick access –  Direct access –  Ease of use –  “Offline” functionality•  Main reasons for using apps: –  staying part of the social loop –  building image and appearance –  managing everyday chores –  instant access to know-how –  structure and self-discipline (becomes part of routine for day) –  receiving inspiration/ideas –  immediate updates on areas of interest –  infinite entertainment/distraction Ref:  Device  Study  2010  The  US  Results,  Ericsson     ©    2012  Purple  Forge  Corpora1on  
  • Finding  the  Idea  -­‐  Where  to  Start?   Technology   Category   Content   Add-­‐on   Solve  Problem   Hired  Gun   • Mobile   • Game   • Media   • Enhance   • Previously   • Build  what  a   feature   • Social   exisAng   not  possible   customer   centric   • Etc   business   without   will  pay  you   processes   mobile   for   Talk  with   Talk  with   prospecAve   prospecAve   Sell   customers   customers   ©    2012  Purple  Forge  Corpora1on  
  • Gejng  to  “the”  Idea   Establish  the  evaluaAon  parameters   Evaluate  Ideas  against  parameters   Narrow  down   Invest  Ame  incrementally   Fastest  Ame  to  $$$   Make  your  decision  ©    2012  Purple  Forge  Corpora1on  
  • Filtering  Ideas  (Example)   Column  Headings   •  Ranking   •  App  Name   •  App  DescripAon   •  Comments   •  Expected  Ease  of  Development  (Quick  (based  on  app  example  template,  mainly  text-­‐based)/Easy   (client  only,  minimal  graphics)/Medium  (GPS,  Music/Sound  Effects,  staAc  graphics  with  simple   manipulaAons)/Hard  (heavy  animaAon,    AI  player,  client  and  server  sides,  lots  of  content  creaAon,   ongoing  maintenance  of  server  content))     •  App  Category   •  Addressable  Size  (H/M/L)     •  "Cool"  Factor  (H/M/L)     •  A  "Candy  Bar"  Purchase  Decision?  (Y/N)     •  Uses  Graphics  (staAc/dynamic)     •  Uses  AI  Players/Game  Control  Logic  (Y/N)     •  Uses  3G  Network  (Y/N)     •  Uses  GPS  (Y/N)     •  Uses  Accelerometer  (Y/N) Talk  with  prospecAve  customers       •  Uses  Audio  Input  (Y/N)     •  Uses  Audio  Output/Sound  Effects/Music  (Y/N)     •  Uses  MulA-­‐touch  (vs  single-­‐touch,  single-­‐touch  swipe)  Interface  (Y/N)   •  Uses  Client-­‐Server  (Y/N)     •  Uses  Manual  Tasks  to  Maintain  Server/Network  Content  (Y/N)     •  CompeAAve  Apps  Exist  (Y/N)     •  Price  per  Client     •  Price  per  annual  service  sub     •  EsAmated  Selling  Period  (weeks)     •  PenetraAon  %  EsAmate     •  Extra  Development  Costs  (e.g.  any  special  hardware/configuraAons,  libraries)     •  Est  Copies  Sold    ©    2012  Purple  Forge  Corpora1on   •  Est  Annual  Revenue  
  • Filtering  Ideas  (Example)   Confirm  it  will  be   profitable   Determine  Ame  and   cost  to  implement   and  sell   Understand   potenAal   compeAAon  and   Define  revenue   posiAoning/ opportunity  (e.g.   advantage   how  much,  who,   Define  how  it  will   how  many,  when)   make  money   (talk  to  prospecAve   customers)  ©    2012  Purple  Forge  Corpora1on  
  • Where  Are  These  Customers?   One way to meet prospective customers is to join the Ottawa Chamber of Commerce and participate in their networking events. h?p://o?  ©    2012  Purple  Forge  Corpora1on  
  • Where  Are  These  Customers? First municipal politician First bilingual municipal app (French/English)©    2012  Purple  Forge  Corpora1on  
  • Where  Are  These  Customers? •  Pick up the phone and do a cold call – the worst that can happen is they say “no” •  Ask your friends and family who they know – get an intro •  Network, network, network©    2012  Purple  Forge  Corpora1on  
  • Aser  the  “Idea”   •  Target market •  Team formalization •  Business plan –  Sales plan –  Implementation plan •  Build vs Buy/License vs Partner –  Financial plan •  Costs: labour, 3rd party contracts, servers, operations infrastructure, marketing, legal •  Revenue: sales Only  do  the  minimum  to  get  to  the  next  stage  of  the  business  ©    2012  Purple  Forge  Corpora1on  
  • Target  Market   Interests   App  Store   Age   Device   Gender   OS  Version   PEOPLE   Plauorm   TECH   REGION   Carrier   Language   Country  ©    2012  Purple  Forge  Corpora1on  
  • Necessary  Team  Skills  Mix   Advisors   •  Business  Leadership   Contract   •  Sales  and  MarkeAng   Part-­‐Time   •  Technical   Core   Team   •  CreaAve   •  OperaAons  ©    2012  Purple  Forge  Corpora1on  
  • Components  of  an  App   User  Experience   Editorial  Content   Digital  Media  Content  APP   Mobile  Plauorm(s)  Coding   Mobile  Plauorm(s)  TesAng   Cloud  Services  Coding   Cloud  Services  TesAng   Cloud  Services  IntegraAon     ©    2012  Purple  Forge  Corpora1on  
  • Plauorm  Technology  Choices  Op1ons   Examples  Plauorm   iOS,  Android,  Blackberry  OS,  Bada,  Web  OS  Versions   Android  V2.3,  Blackberry  OS5,  iOS4.2  Form  Factors   Smartphone,  Tablet,  Phablet  Devices   Blackberry  9000,  Nexus  S,  iPhone  3GS,  Fire  Development  Tools  -­‐  NaAve   ObjecAve  C,  C++,  Java  Development  Tools  -­‐  Web   HTML5,  CSS3,  Javascript,  JQueryMobile  Cross-­‐Plauorm  Frameworks   Appcelerator,  PhoneGap,  Sencha  Game-­‐Oriented  Development     Torque,  Unity,  Game  Salad  Apps  as  a  Service   Purple  Forge  ©    2012  Purple  Forge  Corpora1on  
  • Game  Environments©    2012  Purple  Forge  Corpora1on  
  • Cloud  Services  Op1ons   Example   •  Servers:  Amazon,  Rackspace,  GoDaddy,  ..  Role  your  own   •  Sosware:  e.g.  Open  Source  Sosware   •  Services:  e.g.  Apigee   •  YouTube,  Flickr,  Facebook,  Twi[er,  Picasa,  LinkedIn,  Flurry,   Google  AnalyAcs,  Urban  Airship,  Parse,  Apple  Game  Center,  Commercial  APIs   Apple  Push  NoAficaAon,  Google  Search,  Google  Maps,   YellowPages,  OpenFeint   •  See  h[p://  for  more  examples   CondiAons  of  Use   SLA   Cost  (parAcularly  wrt  usage)   Capacity/Scaling,  Usage  quotas,  Usage  thro[ling  rates  Usage  ConsideraAons   Data  Privacy   Data  Ownership   Security   FaciliAes  LocaAon     ©    2012  Purple  Forge  Corpora1on  
  • Technical  Resourcing   •  Project  management   •  Technical  leadership     •  ImplementaAon  skill  sets  will  be  dependent  upon  the   technology  choices  made  (or  vice  versa)   •  Different  implementaAon  skill  sets  required  and  exist   in  individuals     •  Skills  vary  by  plauorm,  e.g.  Android,  iOS,  Blackberry   •  Some  example  skill  types:   •  Server  Apps  and  OperaAons     •  Mobile  APIs   •  2D/3D  Gaming   •  Graphic  Designer   •  Unity  Developer   •  Torque  Developer   •  3D  Graphics  Model  Designer   •  User  Experience  Designer   •  Database  Developer   •  Website  Developer     •  Tester  ©    2012  Purple  Forge  Corpora1on   •  OperaAons  
  • Outsourcing  Labour  ©    2012  Purple  Forge  Corpora1on  
  • Outsourcing  Infrastructure©    2012  Purple  Forge  Corpora1on  
  • Simplified  ProducAon  Cycle   Project   Placeholder   Test   Available  for   Established   Media   Download   Incremental   Add    Final   Submit  to   API  Spec   Development   Media   Distribu1on   Prototype/ Wireframes   Mockups   Test   Sign-­‐offs  ©    2012  Purple  Forge  Corpora1on  
  • Wireframe  Example   h[p://­‐examples-­‐of-­‐wireframes-­‐and-­‐mockups-­‐sketches/   h[p://­‐interface/website-­‐wireframing/   h[p://  ©    2012  Purple  Forge  Corpora1on  
  • Agenda   •  Pre-amble •  Part 1 - Building a Mobile App Business •  Discussion •  Break •  Part 2 - Selling, Challenges, Operationalizing •  Discussion©    2012  Purple  Forge  Corpora1on  
  • Selling   •  Resellers   •  Partners     •  Direct       •  App  Stores   “TECHIES”  marginalize  the  effort   associated  with  selling  the  way   “SALES”  marginalize  the  complexity   of  implementaAon.  ©    2012  Purple  Forge  Corpora1on  
  • Selling  –  Heavy  Lising   Resellers   They  resell  your  product/service  in  return  for  a  %  of  the  sale  30%-­‐60%.    They   may  white-­‐label.           You  need  to  cold  call  to  find  Resellers.  (Once  established  they  may  call  you!)   Partners   They  sell  your  product  as  a  complementary  products  or  services  to  their  sales.     They  bring  you  deals.    You  may  need  to  work  on  proposals  with  them.     You  need  to  cold  call  to  find  Partners.    (Once  established  they  may  call  you!)   Direct   You  do  all  the  heavy  lising  –  direct  calling  to  end  purchaser.      Cold  calling.   MarkeAng  –  Website,  Google  Ads,  TradiAonal  Media.     Closing  “reference  customers”  may  be  required  in  order  to  land  Resellers  and   Partners.   App  Stores   Publish  thru  App  Stores.    Sales  via  pay  per  download,  pay  per  in-­‐app  digital   content  or  subscripAons.    App  Store  collects  the  revenue  and  handles  returns.           They  take  30%  of  sale.    They  keep  their  cut  on  returns.     MarkeAng  –  Website,  Google  Ads,  TradiAonal  Media  ©    2012  Purple  Forge  Corpora1on  
  • App  Stores   Store  User   Submission   Transac1on   Popularity   Exp   to  Approval   Fee   Market   Best   5-­‐  10  days   30%   leader   Increasing   Good   Immediate   30%   Rapidly   5  to  10++   Poor   30%   declining   days   Increasing   Good   5  to  10+  days   30%     Very  Poor  -­‐   Mobile  Web   Steady   Google   N/A   N/A   Search  ©    2012  Purple  Forge  Corpora1on  
  • MarkeAng  Strategy   Publishing in an app store is NOT a marketing strategy©    2012  Purple  Forge  Corpora1on  
  • Gejng  Your  App  NoAced  •  TweeAng   •  Podcast  review  •  Dedicated  Facebook  Page  for  App   •  TV  coverage  -­‐    Local  •  MenAoned  on  related  Facebook  Page   •  TV  coverage  -­‐  NaAonal  •  PosAngs  on  related  Facebook  Pages   •  Special  Feature  by  Apple  •  Dedicated  domain  and  website   •  New  and  Notable  by  Apple  •  Dedicated  landing  page  that  supporAng  organizaAons  all  point   •  Mashable  coverage   to  (e.g.  h[p://   •  TechCrunch  coverage  •  Dedicated  webpage  on  exisAng  organizaAons  website   •  CNN  website  coverage  •  MenAoned  on  shared  page  on  exisAng  organizaAons  website   •  Press  Release  -­‐  PR  Web  •  MenAoned  on  front-­‐page  rotaAon  of  organizaAons  main   •  Press  Release  -­‐  Self-­‐distributed   website  in  prominent  manner,  e.g.  large  graphic  banner   •  eNewsle[er  Announcement  (exisAng  distribuAon  related  to  •  MenAoned  on  front-­‐page  rotaAon  of  organizaAons  main  page   organizaAon)   by  a  link  to  another  page   •  Print  Newspaper  Coverage  -­‐  NaAonal  •  Cross-­‐linked  from  related  app  partner  sites  to  a  dedicated   •  Print  Newspaper  Coverage  -­‐  Local   webpage  for  the  app   •  Topic  of  App  -­‐  Common  Interest  •  In  app  cross-­‐selling  catalog  (where  organizaAon  has  mulAple   •  Topic  of  App  -­‐  Local/Regional  Interest   apps)   •  Topic  of  App  -­‐  Niche  Common  Interest  •  Webpage   •  Topic  of  App  -­‐  Seasonal  Interest  •  “Rate  the  app”  nag   •  Topic  of  App  -­‐  Event  A[endee  Specific  Interest  •  Blog  coverage   •  AdverAsed  with/linked  to  a  specific  event  which  has  people  arriving  /  •  Review  sites  coverage   interested  on  a  specific  date  •  Paid  web  adverAsing   •  Event  collateral  -­‐  business  card  handouts  with  links  to  download  page  •  Sponsored  Blog  RSS  feed   •  Event  collateral  -­‐  posters  at  event  site  registraAon  and  entrances  •  Sponsored  eNewsleKer   •  MenAon  of  app  in  all  press  release  communicaAons  of  organizaAon  •  Sponsored  website   •  MenAon  in  .sig  of  emails  for  members  of  organizaAon  •  AdverAsing  on  public  transit  buses   •  YouTube  videos  •  AdverAsing  on  airport  screen  Ackers   •  QR-­‐codes  in  organizaAons  print  materials  •  AdverAsing  on  airport  display  screens   •  AdverAsing  on  print  (e.g.  magazines,  news  papers,  brochures)  •  Google  Ads  Web   •  Push  noAficaAon  to  ask  people  to  "Tell  their  friends"  about  the  app  •  Google  Ads  Mobile   •  Press  event  by  Mayor  •  iAds  Mobile   •  App  wins  an  Award  which  is  publicly  announced  by  award  giving  •  Radio  On-­‐air  MenAon/Interview   organizaAon   ©    2012  Purple  Forge  Corpora1on  
  • What  Works   •  App Store Featured App •  App Store What’s Hot •  App Store New & Noteworthy •  App Store Top 50, 25, 10 in Category (accelerates downloads) •  App Store Top 100, 50 Overall (accelerates downloads) •  Major Online News coverage •  National Traditional Media coverage – TV, Newspapers •  Regional Traditional Media coverage – TV, Newspapers •  Part of existing coordinated campaign / event marketing •  eMail Newsletters to established list •  App cross selling •  Prominent placement on established org/business website •  Press release •  Awards©    2012  Purple  Forge  Corpora1on  
  • The  Holy  Grails  ©    2012  Purple  Forge  Corpora1on  
  • Press,  TV,  Papers,  Blogs,  Apple,…   Apple  Featured   Online  News  Coverage  Big  Launch   Digital  signage,  websites,  print  ads  for  specific  events   ©    2012  Purple  Forge  Corpora1on  
  • Web,  eMail,  Media,  Event   Event  Ends   Event  Starts   Few  weeks  before  Event  Starts   Media  Coverage  Starts   eMail,  Web  Launch   MenAoned  in  associated  campaign  ©    2012  Purple  Forge  Corpora1on  
  • Launch,  Press,  Event   Event  Ends   Event  Starts   Week  Before  Event  Starts   Media  Coverage  Starts   eMail,  Media,  Web  Launch   MenAoned  in  associated  campaign  ©    2012  Purple  Forge  Corpora1on  
  • Press,  Social,  Featured,  Event   Event  Ends   Event  Starts   Featured  Strong  Press,  Social  Launch   MenAoned  in  associated  campaign   ©    2012  Purple  Forge  Corpora1on  
  • Do  nothing…  free…  common  interest  ©    2012  Purple  Forge  Corpora1on  
  • Do  lots…  get  nothing…  go  free    ©    2012  Purple  Forge  Corpora1on  
  • Zombiegram  ©    2012  Purple  Forge  Corpora1on  
  • Challenges  –  Technology   •  TesAng:  n  x  n  problem   •  MulA-­‐language   •  MulA-­‐version     •  MulA-­‐plauorm   •  App  upgrade  management   •  Dev  environment  management   •  Dev  skillsets  management   •  FragmentaAon    ©    2012  Purple  Forge  Corpora1on  
  • FragmentaAon  •  Blackberry is off the scale – includes variants by carrier (BB10 may be better?)•  Android fragmentation is a rapidly growing challenge•  Apple – constrained, minimal fragmentation•  Form factors - Smartphone, Tablet, Phablet (phone-tablet hybrid)•  Screen sizes / resolutions - graphics x “n”•  OS versions•  OS forks (e.g. Amazon Fire)•  App Stores (e.g. Google, Amazon, Blackberry Android, others++)•  No such thing as an “Android App”, only “Android Compatible” FragmentaAon  =  cost  to  develop,  cost  of   hardware  to  test  on,  poor  user  experience,   lengthy  Ame  to  deliver,  support  issues  (and  a   stain  on  your  reputaAon)  ©    2012  Purple  Forge  Corpora1on  
  • Challenges  -­‐  Business  •  RestricAons  by  app  store  •  Shising  App  Stores  policies  •  Privacy  •  Security  •  PCI  compliance  •  Open  source  risk  management  •  Rapidly  changing  trends  and   demographics  •  Provenance  /  Copyright    •  IP  risks    •  IP  ownership  ©    2012  Purple  Forge  Corpora1on  
  • Intellectual  Property   •  Intellectual Property –  You assign all rights, e.g. hired gun –  You retain all rights –  You license •  exclusive, non-exclusive Code   •  source code and/or binary Content   •  Indemnification against infringement •  Splitting IP Ownership –  Code versus content Graphics/ –  Indemnification considerations Media   •  Open Source –  Exposure to IP claims –  Risk of having to make proprietary code public •  Employment Contracts –  If doing “on the side” you may be violating your employment contract and compromising your Mobile  App   product IP Unknowable  world  –  assigning  away  IP  is  giving  away  future   business  opportuniAes,  e.g.  derivaAve  works  ©    2012  Purple  Forge  Corpora1on  
  • OperaAonalizing  Your  Business   •  If  creaAng  something  of  value  with  others  involved  -­‐   good  paper  makes  good  friends/business   •  Legal  enAty  establishment    -­‐  form  of  company,   shareholder  agreement,  stock  opAon  plan,  HST  number   •  Bank  account  /  paypal  account  /  google  market   account  /  itunes  app  store  account  /  android  market  /   RIM  developer  accounts  /  cloud  service  accounts  –   company  controlled     •  Infrastructure  –  file  shares,  SCM,  bug  tracking,  project   management  –  company  controlled  –  virtual  /  SaaS   products   •  Employment  contracts  –  IP  assignment,  NDA,  terms  for   divorce   •  Insurance     •  Taxes  -­‐  paying  and  collecAng  and  remijng     •  AccounAng     •  Payroll   •  HST  collecAon/payment   •  Contracts   •  Intellectual  Property  (IP)  –  patents,  trade  secrets   •  Trademarks   •  Business  plan  ©    2012  Purple  Forge  Corpora1on   •  Roadmap  
  • IniAal  Money  /  Launching  Base   •  Gejng  first  customer  to  pay  up-­‐ front   •  Government  programs   •  University  /  College  collaboraAons   •  Personal  Savings   •  Friends  and  family   •  Unpaid  labour  from  founders   •  Equity  /  stock  opAons   •  Good  will   •  Spouse’s  paycheck   •  Doing  contract  work  in  parallel  ©    2012  Purple  Forge  Corpora1on  
  • The  Opportunity  is  Now   •  Build  your  network  of  potenAal   collaborators/partners   •  Leverage  your  schools  experts  –   informal  discussions  around  their   interest  areas/areas  of  research   •  Experiment  with  new   technologies  and  how  you  and   your  friends  might  use  them   •  Government  programs  –  summer   jobs,  research  grants   •  Resell  another  companies   products   •  Apply  to  Lead  to  Win  ©    2012  Purple  Forge  Corpora1on  
  • Lead  to  Win   •  Apply to Lead to Win (it’s free!) •  Will “fill in the details” •  Will support your efforts to grow a sustainable business •  Need to have a business idea and desire to make it a reality •  Next sessions Feb 21-23 (Days 1 to 3) , Mar 20-22 (Days 4 to 6)©    2012  Purple  Forge  Corpora1on  
  • Next  Steps  •  Lead to Win - Receiving Applications Now•  Feedback on your ideas – Lead to Win can help•  Monthly Networking Sessions to connect people who are looking to form teams – Lead to Win•  Join the Ottawa Chamber of Commerce – meet some prospective customers•  Lead to Win Mobile Stream – Interest? Send Tony a note with what you need to build your business!©    2012  Purple  Forge  Corpora1on  
  • Agenda   •  Pre-amble •  Part 1 - Building a Mobile App Business •  Discussion •  Break •  Part 2 - Selling, Challenges, Operationalizing •  Discussion©    2012  Purple  Forge  Corpora1on  
  • Case  Study  4  ©    2012  Purple  Forge  Corpora1on  
  • About  Me     h[p://     h[p://twi[     h[p://     h[p://  (lots  of  lists   of  useful  stuff  related  to  tools  and   stats)     h[p://  ©    2012  Purple  Forge  Corpora1on  
  • Thank You!