IWikiPhone Tech Garage 2009

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IWikiPhone Tech Garage 2009

IWikiPhone Tech Garage 2009

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  • ROM-ENL111-18042005F-32707/FMRgm


  • 1. CROWDSOURCING iPhone APPS DEVELOPMENT Business Concept Luca Di Cesare [email_address] +39 348 47 19 492
  • 2. intro
    • Objective of this document is to present a business concept for iPhone Applications development crowdsourcing.
    • In the document, the symbol indentifies data from a market research conducted to support our assumptions.
    • The market research has been developed with the Market Research Institute SKOPOS AG ( www.skopos.de ):
    • 315 quantitative interviews
    • Respondents from 8 countries (US: 160; UK: 30; DE: 30; IT: 20; FR: 21; ES: 20; CAN: 20; NL: 14)
    • Response rate: 26%
    • Research period: from Feb 12 2009 to 25 Feb 2009
    • Market Research tool: Zoomerang
  • 3. Index
      • Mission
      • Crowdsourcing
      • Market Scenario
      • Business idea
      • People
      • Funding Needs
  • 4. Mission
      • To create the biggest global iPhone users social network
      • To build a software firm for iPhone Applications development based on a global community of contributors
      • To use the social network as marketing channel, building a virtual bridge between products and community
  • 5. Index
      • Mission
      • Crowdsourcing
      • Market Scenario
      • Business idea
      • People
      • Funding Needs
  • 6. Crowdsourcing
    • “ the act of taking a task traditionally performed by an employee or contractor,
    • and outsourcing it to an undefined, generally large group of people,
    • in the form of an open call”
  • 7. Crowdsourcing, a well working example:
      • Threadless  is a community-centered online apparel store
      • Members of the Threadless community submit t-shirt designs online that are then put to a public vote
      • Around 700 designs compete in any given week and about ten are selected by the staff (taking into consideration community’s vote)
      • Chosen designs are selected for printing and sold through an online store
      • Creators of the winning designs receive a prize of cash (USD 2.000 + USD 500 every time their design is reused for a new printing) and store credit
      • Authors of selected designs transfer intellectual rights of their work to Threadless
      • Revenues 2007: USD 30million; Profit 2007: USD 9 million
  • 8. Index
      • Mission
      • Crowdsourcing
      • Market Scenario
      • Business idea
      • People
      • Funding Needs
  • 9. Market Scenario
    • iPhone applications can only be downloaded from iTune’s App Store
    • iTunes’ Application store offers 1000’s of applications (>23.000 on Feb 26 th )
    • Applications can be free to download or subject to payment through iTunes
    • Free apps are estimated to be 20% of the total, making 90% of the downloads
    • Estimated avg cost for paid apps is USD 2,90
    • On Jan 16 th , the 500millionth application was downloaded (was 300 on 5 th Dec 08)
    • Avg daily turnaround is > USD 1million
    • Apple’s commission is 30%
    • As of Dec 2008, 17million iPhones were sold
    • Projected annual avg expense per iPhone user is USD 22
  • 10. Market: users habits Q How many Applications have you downloaded from the App Store?
  • 11. Market: users habits Q How many of them are paid Apps?
  • 12. Market: users habits Q How much did you spend so far for paid Apps altogether?
  • 13. Market: Apps developers point of view
    • Problem:
    • Effective marketing initiatives to push sales of new applications are difficult, if not impossible
    • There’s no direct way to access iPhone users market apart from small sites and blogs
    • Marketing strategies are today mainly based on pricing (light versions of applications for free, discounts)
  • 14. Index
      • Mission
      • Crowdsourcing
      • Market Scenario
      • Business idea
      • People
      • Funding Needs
  • 15. Business idea
    • To make the market gravitate round the offer
    • How?
    • By creating a social network where iPhone’s users can interact, share knowledge and opinions, have conversations and collaborate to the design, development and testing processes of new applications, earning
  • 16. Business idea
    • So, what is iWikiPhone?
    • iWikiPhone is a place where people do stuff
    • It’s a real social network that offers members participation tools to:
    • post text and video contributes about their knowledge/experience with iPhone
    • rate and comment other members’ contributes
    • build their own circle of friends and Apps list
    • submit, rate, comment ideas for new applications
    • ask, and answer, questions
    • get recognitions
    • cooperate in new Apps development, earning from sales
  • 17. Business idea: graphic concept
  • 18. Crowdsourcing applications production
    • Crowdsourcing should be considered as an high impact marketing strategy , a way to involve members and to increase their loyalty to the community and boost sales.
    • Ideally, the whole development process should be crowdsourced:
    • new application idea submission and selection
    • development
    • graphic design
    • testing
    • Practically, the crowdsourcing process will begin with phases 1. and 4. (that already proved to work well in the mobile industry); phases 2. and 3. remain a goal, but their feasibility will be checked starting from year 2.
  • 19. Building the community iPhone users already rely on (limited) community tools to take decisions about new Apps to purchase… Q Before an App purchase, do you usually read users reviews?
  • 20. Building the community … but it seems what is already provided is not enough Q Did you proactively search for the Apps you've downloaded or did you come across by chance?
  • 21. Building the community The iTunes’ App Store shows some limits… Q
  • 22. Building the community … and word on mouth is the second most used way to take decisions about new Apps to download Q How did you know about the Apps you've downloaded? (pls choose all that apply)
  • 23. Building the community Would you be interested in sharing your experience with iPhone Apps with other users? What would you be willing to do? (pls choose all that apply) iPhone users show a clear desire of active participation… Q Q
  • 24. Building the community Would you be interested in learning tips and tricks about your iPhone and its various Apps from other users? Would you like to use a recommendation system to learn about new Apps you might be interested in? … as well as the need to use social tools to learn more Q Q
  • 25. Building the community Would you like to co-operate in new Apps production? (pls choose all that apply) iPhone users seem also to be ready for a more concrete participation Q
  • 26. Index
      • Mission
      • Crowdsourcing
      • Market Scenario
      • Business idea
      • People
      • Funding Needs
  • 27. Idea owner Luca Di Cesare Electronic Engineer http://www.linkedin.com/in/lukadice on line sales & marketing consultant for companies such as:
  • 28. Index
      • Mission
      • Crowdsourcing
      • Market Scenario
      • Business idea
      • People
      • Funding Needs
  • 29. Funding Needs
    • The monthly cash flow analysis results in a funding need of about € 500.000