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Digital Business Model

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Group assignment made for the Digitazing your Business Model class at Hult International Business School. ...

Group assignment made for the Digitazing your Business Model class at Hult International Business School.

We designed a new digital business model for a publishing company.

Note: We were not hired by the company and all the data used in this project was gathered by the group through internet.

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Digital Business Model Digital Business Model Presentation Transcript

  • Baen publishing Andrew Boyd Satomi Hisamoto Kate Davids Ivannia Figueroa Charise Mason David Ioli 1
  • Agenda 2
  • AgendaCurrent organisation 2
  • AgendaCurrent organisationBook publishing industry 2
  • AgendaCurrent organisationBook publishing industryTime to move Print Vs. Digital 2
  • AgendaCurrent organisationBook publishing industryTime to move Print Vs. DigitalBusinesses models evaluated 2
  • AgendaCurrent organisationBook publishing industryTime to move Print Vs. DigitalBusinesses models evaluatedChosen business model 2
  • AgendaCurrent organisationBook publishing industryTime to move Print Vs. DigitalBusinesses models evaluatedChosen business modelCommunity building 2
  • AgendaCurrent organisationBook publishing industryTime to move Print Vs. DigitalBusinesses models evaluatedChosen business modelCommunity buildingBusiness Budget Estimation 2
  • AgendaCurrent organisationBook publishing industryTime to move Print Vs. DigitalBusinesses models evaluatedChosen business modelCommunity buildingBusiness Budget EstimationCustomer’s journey 2
  • Our products: 3
  • Our products:Webscription e-books 3
  • Our products:Webscription e-booksPaperbacks 3
  • Our products:Webscription e-booksPaperbacksAudiobooks 3
  • Our products:Webscription e-booksPaperbacksAudiobooksFree library 3
  • The Industry Structure 4
  • 5
  • 5
  • 5
  • 5
  • 5
  • 5
  • 5
  • 6
  • current customers 7
  • current customers45-65 year old 7
  • current customers45-65 year oldMale 7
  • current customers45-65 year oldMaleNo children 7
  • current customers45-65 year oldMaleNo childrenEducated 7
  • current customers45-65 year oldMaleNo childrenEducatedBrowse from home 7
  • current customers I love Sci-fi45-65 year old booksMaleNo childrenEducatedBrowse from home 7
  • Motivation 8
  • Motivation 8
  • Current audience video 9
  • Time to move?Print Vs. Ebooks 10
  • Argument for change 11
  • Argument for change 11
  • Arguments for change 12
  • 13
  • 13
  • Amazon sold $12010. 2.95 bil lio n in ebo oks in 13
  • Amazon sold $1 2010. 2.95 bil lio n in ebo oks in ck s. e r ba d p ap as se su rp s al es oo k le ebKi nd 13
  • Amazon sold $1 2010. 2.95 bil lio n in ebo oks in ck s.100 paperbacks = 115 ebooks. r ba ap e d p as se su rp s al es oo k le eb Ki nd 13
  • We need to go digital... 14
  • 3 Businesses models evaluated 15
  • What is Crowdsourcing? 16
  • Advantages 17
  • Advantages Brand Engagement 17
  • Advantages Brand Engagement Insights 17
  • Advantages Brand Engagement Insights Cost Saving 17
  • Advantages BrandCreative Engagement ideas Insights Cost Saving 17
  • Advantages Brand Creative Engagement ideasR&D Cost Insights Saving 17
  • Disadvantages 18
  • DisadvantagesLack ofStability 18
  • DisadvantagesLack of CopyrightStability issues 18
  • Disadvantages Lack of Copyright Stability issuesProfitable? 18
  • Disadvantages Lack of Copyright Stability issuesProfitable? Vandalism 18
  • Data-driven Business Model 19
  • information 20
  • information 20
  • information information 20
  • valuable data 21
  • third partiesvaluable data 21
  • third partiesvaluable offer tailored products data and/or services 21
  • third partiesvaluable offer tailored products data and/or services advertising 21
  • valuable data = 21
  • Freemium Business Model 22
  • 23
  • quantity / quality of services paid by paid by advertising consumers 23
  • quantity / quality of services Free paid by paid by advertising consumers 23
  • quantity / quality of services Pa i d Free paid by paid by advertising consumers 23
  • quantity / quality of services Pa i d80/20 rule Free paid by paid by advertising consumers 23
  • 24
  • Our new business model: Freemium + crowdsourcing 25
  • What is on the website? 26
  • 27
  • Engaging the community Forums Offline Games Community Email SNS Mobile 28
  • Engaging the community Forums 28
  • Stories 29
  • StoriesFeatured 29
  • StoriesFeaturedFavourite Characters 29
  • ForumsConnect directly to profilesFocus on stories Available on user’s homescreen 30
  • Engaging the community Forums Offline Games Community Email SNS Mobile 31
  • Engaging the community Gam e s 31
  • GamesFollows freemium modelFull site integrationSocial / Casual games 32
  • Engaging the community Forums Offline Games Community Email SNS Mobile 33
  • Engaging the community SNS 33
  • Social networking sitesDrive Traffic to the websiteContestsGame functionality on Facebook?Discussion of books Encourage users to interactbetween them 34
  • What we are doingWhat authors we are talking toPossible stories for the futureMarketing promotionsSurveys 35
  • Engaging the community Forums Offline Games Community Email SNS Mobile 36
  • Engaging the community Mobile 36
  • MobileDisplay adsText alertsMobile friendly websiteApps (future) 37
  • Engaging the community Forums Offline Games Community Email SNS Mobile 38
  • Engaging the community Email 38
  • Email *%$+,&!"#"&-.&/01/+#$12&-.&3!45& &6.7-8%9&72:/%2;2#& !"#$%&())&Drive traffic to the websiteOffers and promotionsNew books and productsCall to action 39
  • Engaging the community Forums Offline Games Community Email SNS Mobile 40
  • Engaging the community Offline 40
  • OfflineEventsYearly conference Advertising in publishedbooks 41
  • MarketingOnline adsSEOOffline adsDatabasesStart-up promotionsPay with a tweet 42
  • Community 43
  • Community BuildingThe number of members in 5 semesters will be... 44
  • Community BuildingEnglish speakingThe number of members in 5 semesters will be... 44
  • Community BuildingEnglish speakingInternet connectionThe number of members in 5 semesters will be... 44
  • Community BuildingEnglish speakingInternet connectionInterested in Sci-FiThe number of members in 5 semesters will be... 44
  • Community BuildingEnglish speakingInternet connection = 20,188,330Interested in Sci-FiThe number of members in 5 semesters will be... 44
  • Community BuildingEnglish speakingInternet connection = 20,188,330Interested in Sci-Fi X 5%The number of members in 5 semesters will be... 44
  • Community BuildingEnglish speakingInternet connection = 20,188,330Interested in Sci-Fi X 5%The number of members in 5 semesters will be... 504,708 44
  • Community Building 504,707.80 423,954.52 New Users Total Users 252,353.80 171,601 171,601 80,753.08 80,753 68,136 12,617.501st Semester 2nd Semester 3rd Semester 4th Semester 5th Semester 45
  • ? 46
  • ,%$$+ -%.)/$+ 0(1#$%+ + "/0"(.*-1&"()*+$,-."& 56!"+,"(.& !"#$%&()*+ 2334.& G%>*3(.& !"#"$%"& E(3?,& ;3%()"& 73(%/.& 8+/".& ;3)-+<& =">?3(4.& 9:-$"&& E3//%$->F& @7+)"0334& A&B?-C"(D& 47
  • Freemiumfree 48
  • Freemiumfree bronze £ 2.99 x m 48
  • Freemiumfree bronze ✓ No ads £ 2.99 x m 48
  • Freemiumfree bronze ✓ No ads ✓ Special content £ 2.99 x m 48
  • Freemiumfree bronze ✓ No ads ✓ Special content ✓ Enhanced game play £ 2.99 x m 48
  • Freemiumfree bronze silver ✓ No ads ✓ Special content ✓ Enhanced game play £ 2.99 x m £ 6.99 x m 48
  • Freemiumfree bronze silver ✓ No ads ✓10% off ✓ Special merchandise content ✓ Enhanced game play £ 2.99 x m £ 6.99 x m 48
  • Freemiumfree bronze silver ✓ No ads ✓ 10% off ✓ Special merchandise content ✓ Downloadable ✓ Enhanced PDFs game play £ 2.99 x m £ 6.99 x m 48
  • Freemium80%£0 12% 8% £ 2,152,800 £ 3,355,200 49
  • AdvertisingFree members only5 visits per week15 pages x visit7 ads x page £ 1,036,800Standard CTRStandard revenue 50
  • Gaming20% play games20% of players spend money 51
  • Gaming20% play games20% of players spend money £2.50 £5.00 £10.00 £15.00 40% 25% 25% 10% 51
  • Gaming20% play games20% of players spend money £ 484,519 £2.50 £5.00 £10.00 £15.00 40% 25% 25% 10% 51
  • MerchandiseOutsourcing everything20% buy merchandiseRevenue is 30% of sales 52
  • MerchandiseOutsourcing everything20% buy merchandiseRevenue is 30% of sales £10.00 £25.00 £50.00 £100.00 40% 25% 25% 10% 52
  • MerchandiseOutsourcing everything20% buy merchandise £ 495,875Revenue is 30% of sales £10.00 £25.00 £50.00 £100.00 40% 25% 25% 10% 52
  • Revenue 53
  • Revenue Games Merchandise 10% 10% Advertising 22% Freemium 58%Advertising FreemiumMerchandise Games 53
  • Revenue Games Merchandise 10% 10% Advertising 22% Total = £4,771,194 Freemium 58%Advertising FreemiumMerchandise Games 53
  • Costs Initial investment £370,000 (servers, computers,technology, web design, external consultants, etc) Operational costs £350,000 x semester (personnel,advertising, maintenance, other expenses) 54
  • Revenue Revenue£720,000 £350,000 £350,000 £350,000 £350,0001st semester 2nd semester 3rd semester 4th semester 5th semester 55
  • Revenue Revenue£720,000 £350,000 £350,000 £350,000 £350,0001st semester 2nd semester 3rd semester 4th semester 5th semester 55
  • The Journey 56
  • Journey video 57
  • Questions 58