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MT5016 – Business Models for Hi-tech Products



    Business Model for
Augmented Reality Technology

  Group Members
   Aryoko Wibowo S.         A0082149A
   Jerico Juico             A0091472E
   Lim Shoa Siong           A0068312L
   Mun Kek Chian            A0090745B
   Yeo Lian Sheng           A0081976N
Scope
• Technology Description

• Product Overview

• Market Segment

• Value Proposition

• Value Capture

• Scope of Activities

• Strategic Control

• Aurasma Demo             Slide 2
Technology
Forms of AR Implementation
• Head-up Display (HUD)
   – Sensics Smartgoggle
       • Adv: Include sound with 3D
         capability; allows interactions
       • Dis: Not mobile; primarily in-
         home experience like
         entertainment,
         communication and egaming
   – Google Glasses
       • Adv: Data display floats in
         virtual field; utilizes mono-
         vision correction
       • Dis: Not truly immerse; loses
         depth perception
   – Innovega iOptik
       • Adv: Fully immerse
       • Dis: Not completely wear and
         use, require contact lens

                                           Slide 4
Forms of AR Implementation
• Smartphones
  – In the form of AR browsers and apps
  – Data tagging readers that look for data tags placed on specific
    items, images or locations
  – Not continuous and automatic
  – Has to be started, selected and managed to obtain information




                                                                      Slide 5
AR Applications
     •    Marketing & Advertising
     •    Tourism & Navigation
     •    Translation & Instruction
     •    Gaming & Magazines
     •    And more … …




Frost & Sullivan, “Emerging Technologies in the European Mobile Space”, June 2011   Slide 6
AR Market Potential
     • Global AR Market projected to increase significantly




Stratecast, “Augmented Reality: The Virtual World Gets Real”, June 2012   Slide 7
Drivers for AR in Smartphone




                                                                                 In particular, AR in
                                                                                 smartphones has
                                                                                 great potential for
                                                                                 growth!
Frost & Sullivan, “Exploring the Evolution of Smartphone Vendors”, August 2012
Frost & Sullivan, “The Race of Smartphones, What Next”, June 2012
Frost & Sullivan, “Mobile Augmented Reality”, January 2011                                              Slide 8
Product
Product

                         Leveraging its industry-leading pattern-recognition
                            technology, Autonomy introduce Aurasma
                            Augmented Reality platform.


Aurasma App uses location or the
  camera to translate the image
  into data and recognise it with the
  associated content


                                  Once the location or image is
                                    recognised, it will seamlessly
                                    overlays multimedia content into the
                                    viewer to create a unique and
                                    engaging experience for the user Slide 10
Product
              (Content
              Browser)
                           Free




               (Content
               Creation)
                           Free Through Partnership
Free                       Apply for
Access                     Skinned Apps
                           and Download
                           Kernel into
                           Existing Apps

                                                      Slide 11
Video –
http://www.youtube.com/watch?v=tl4ic-UrtHk
Customer Market Segment
Customer Market Segment
• Printed Magazine Publishers
  – General Interest Content
  – Niche Interest Content




                                Slide 15
Customer Market Segment
     • Printed Magazine Publishers
           – Value Chain
             Content              Content               Content              Content               Content
             Creation            Aggregation          Management            Distribution          Consumer




Juha Saukkonen, “Technologies for the Future - Value System Analysis as a Tool for (Media) Convergence Assessment”,
EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods, Seville 13-14 May 2004                   Slide 16
Customer Market Segment




  • Consumers believe that traditional media is still the best
    sources for advertising!



     Advertising segment is important for                        • Magazine advertising influenced the
     magazine publisher                                            customers decision on purchasing

http://www.marketingcharts.com/category/magazines/                                               Slide 17
Customer Market Segment




            Consumers expect more life content from advertisement
http://www.marketingcharts.com/wp/television/consumers-agree-ads-should-tell-unique-stories-24304/   Slide 18
Customer Market Segment




                                                                                     Print version of
                                                                                     magazines continue
                                                                                     to be the preferred
                                                                                     mode of reading




http://www.magazinescanada.ca/uploads/File/AdServices/Research/Trends/Trends2011July2012.pdf          Slide 19
Customer Market Segment

                                                                          Although consumers still
                                                                          prefers print version of
                                                                          magazine, they see
                                                                          digital content as
                                                                          complementary



        Consumers think that
        videos and photos
        greatly enhanced their
        magazine reading
        experience


http://www.magazinescanada.ca/uploads/File/AdServices/Research/Trends/Trends2011July2012.pdf         Slide 20
Trends in Print Magazine -
           QR Code




   Magazines’ QR Codes
   Said Delivering Strong
   Response, Engagement
   Rates

                                                                Mobile barcode (or QR Code)
                                                                scans by consumers were up
                                                                157% in Q1 2012 over Q1 2011Slide 21
http://www.marketingcharts.com/topics/demographics/consumer-qr-code-scans-up-157-22145/scanlifeqrdemos585jpg/
Trends in Print Magazine -
           QR Code




   Magazine advertisers’ use of QR codes grew to new heights



http://www.marketingcharts.com/direct/magazine-advertisers-use-of-mobile-action-codes-reaches-new-heights-
23075/nellymoser-mag-ad-pages-mobile-action-code-mar2011-mar2012-jun20120-aug2012png/                        Slide 22
Comparison of AR vs QR
Customer Market Segment
• Integrating AR into magazines
   – AR industry is set to grow rapidly
   – Magazine publishers are looking for new innovative solutions to
     capture readership and attract advertisement
   – Readers are looking to complement print magazines with digital
     content (esp. video and photos)

• Potential for AR to be integrated into print
  magazines!
   – AR can replace QR Code




                                                                   Slide 24
Video –
http://www.youtube.com/watch?v=kvEisDAsu8w
Potential Applications of AR in
                     How would it
Magazine               benefit
                      readers /
                                          publisher?
    What AR can
       do for                               Enhance readers
     Magazine?                              experience, more
                   Additional digital     information, more fun
                  content for printed
                      magazine           Boost sales of Magazine
                                        by more appealing content

                                        Readers gain better visual
                                        experience out of attractive
                      Enhance                      ads
                    advertisement
                       content          Publishers can attract more
        AR
                                                advertiser

                                          Direct readers to online
                                           shopping site easily
                     Access to E-
                    commerce site        New revenue stream for
                                        publisher by refer readers
                                           to commercial site
                        Enhance          Publisher can integrate
                  interaction between    AR to social platform to
                  readers & publisher     attract more readers
                                                                       Slide 26
Value Proposition
Value Proposition
• Expand Magazine Contents
   – Convergence of print and digital content
   – Hybrid media as a new product service


• Open Potential Revenue Stream in Mobile Advertising for
  Magazine Publishers
   – Extract benefits from increasing digital connection trend


• Enhance the Appeal of Magazine
   – Increase readership
   – Attract advertisement


• Increase Revenue
   – Magazine Sale Revenue
   – Advertising Revenue

                                                                 Slide 28
AR Digital Content + Magazine


Magazine comes to life with
additional digital content!




                                    Slide 29
AR Digital Content + Magazine

Makes the magazine more
appealing to the readers!




                                  Slide 30
AR + Magazine Advertisement




Enhance advertisement effect by incorporating
audio/video into print!                         Slide 31
AR + Magazine Advertisement
     • Potential Revenue Stream from Mobile Advertising
       for Magazine Publishers
            – Defined as advertising activity delivered via mobile devices (e.g.
              smart-phones, tablets) to target audiences
            – Including mobile display and video advertising




                                                                  Mobile Advertising Ecosystem


Stratecast, “Mobile Advertising Building Blocks”, February 2012                              Slide 32
AR + Magazine Advertisement



   Magazine Publishers Can Capture the
  Growing Revenue in Mobile Advertising




Frost & Sullivan, “The Status of the Mobile Advertising Market in Europe - The Perspective of the Ad-Technology
Enablers”, April 2011
Frost & Sullivan, “US Mobile Advertising and Search Market”, February 2012
Frost & Sullivan, “Asia Pacific Mobile Advertising Markets 2010”, February 2011                                   Slide 33
Value Capture
Value Capture
     • Printed Magazine Publishers
           – Value Chain



                                               Advertiser




                                                                                       Reader

                                   Magazine Publisher




Juha Saukkonen, “Technologies for the Future - Value System Analysis as a Tool for (Media) Convergence Assessment”,
EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods, Seville 13-14 May 2004                   Slide 35
Value Capture
 Modified Value Chain for Magazine Publishing Market
                      AR Platform Manager




                                       Mobile Advertiser

                                               Advertiser




                                                                                       Reader

                                   Magazine Publisher




Juha Saukkonen, “Technologies for the Future - Value System Analysis as a Tool for (Media) Convergence Assessment”,
EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods, Seville 13-14 May 2004                   Slide 36
Value Capture
• Printed Magazine Publishers
    – Money Flow & Revenue Stream


 Brand
             Advertiser
Company



                           Magazine
                                        Distributor   Reader
                           Publisher




Outsourced                  Printing    Sales &
 Content                     House     Marketing

                                                          Slide 37
Value Capture
                                          • Increase revenue
Modified Revenue Stream                   from existing
                                          stream
                                          • Generate new
                                          revenue stream
 Brand
                Advertiser
Company




        Mobile               Magazine
                                          Distributor      Reader
       Advertiser            Publisher
                    NEW                    Increased



Outsourced                    Printing    Sales &
 Content                       House     Marketing

                                                               Slide 38
Advertiser
pays
Publisher for
                              Publisher
Printed Ads




Advertiser
            Informed by the
           product/content,
                               Consumer
Publisher develops content to
                                           create the Aura


                                                Aurasma Charges
                                                       per click
Advertiser
pays
Publisher for
                               Publisher                              & System
Printed Ads                                   Publisher
                                              Pays per click



   Publisher
    Charges
                                                                                 AURA
  Advertiser
    for Aura


Advertiser
  Seeks the product/content,    Consumer
            Delighted by the                                   AURAsma
         Aurasma experience                                    experience
                                                                             Slide 40
Scope of Activities
Scope of Activities
• Continous Improvement on Image Recognition Technology
   • Increase ability on recognizing real world objects
   • Fast response of the image recognition
   • Speed connection detection to adjust content quality


• Adding more features on Aurasma Studio that will benefit
  content creator in creating interactive Auras

• Participate in Augmented Reality Events and Conferences to
  benefit from industry experience




                                                               Slide 42
Scope of Activities
•   Partnership with Magazine Publishers
     •   Starting from Technology Related Magazines into all categories of magazines




     •   Educate Magazine Publishers and also 3rd party involved on Magazine publishing
         especially Magazines Advertisers by conducting free training on adding Auras
         using Aurasma Studio
     •   Collaborate with Magazine Publishers on defining the best user experience for
         the customer in order to enhance it
     •   Develop a platform for personalized user experience of the magazines
         customers




                                                                                       Slide 43
Scope of Activities
•   Due to the Indirect Network Effects between Aurasma Lite and
    Aurasma Pro, both sides of users should grow sustainably.
     •   Make Aurasma Lite available in dominant Mobile OS platform




     •   Collaborate with Mobile Devices Manufacturers to make Aurasma Lite as Pre-
         Installed Apps




     •   Distribute Aurasma Pro to prospective partners such as Content Developers,
         Advertisers, etc.
                                                                                      Slide 44
Strategic Control
Strategic Control Overview


                   Complementary
  IP Protection
                      Assets

             Strategic
              Control


 Network Effects         R&D

                                   Slide 46
IP Protection
• Increase IP protection in major countries of target
  markets
   – Patent
   – Copyright
   – Trademark


• However, even with IP protection, it is difficult to
  enforce against infringements

• Need to have strong control over complementary
  assets


                                                         Slide 47
Complementary Assets

                                               Distribution
                                                channels



                         Aura
                                                                               Marketing
                     development
                                                                              capabilities
                       training




                                             Complementary
                                                Assets
                   Aura
                                                                                      Strategic
                development
                                                                                      alliances
                   tools




Strong control
over key                            Aura                        Customer
                                   browser                    relationships
complementary
assets is required
                                                                                                  Slide 48
Network Effects
• Focus on building strong base of magazine
  publishers and readers using Aurasma through free
  distribution of Aurasma Lite and Aurasma Pro

• Leverage on network effects to make Aurasma the
  defacto standard for AR in magazines
                      Browser growth drives
                     demand for Aura creation
 Magazine readers                               Magazine publishers



  Content Browser                           Content Creation
                       Aura growth drives
                    demand for Aura Browsers



                                                                      Slide 49
Research & Development
• Continued improvement in core AR technology

• Enhancement of Browser App and Aura
  Development tools

• Push the frontier of magazine reader experience




                                                    Slide 50
Summary
Business Model        Description
Component
Product               •   Aurasma Lite (Content Browser)
                      •   Aurasma Pro (Content Creation)
Customer Segment      •   Print magazine publisher
Value Proposition     •   Expand magazine contents
                      •   Enhance magazine appeal
                      •   Increase sales & advertising revenue
Value Capture         •   Charge per-click on content & advertisement accessed thru
                          Aurasma
Scope of Activities   •   R&D in image recognition technology
                      •   Partnership with print magazine publisher, mobile OS
                          developer, mobile device manufacturer and Aura developers
Strategic Control     •   IP protection thru patent, copyright & trademark
                      •   Tight control of key complementary assets
                      •   Leverage on network effects between Aurasma Lite and Pro
                      •   R&D to maintain technology leadership


                                                                                  Slide 51
Aurasma Demo
References
•   Bernados, A., & Casar, J. (2011). Analyzing business models for mobile augmented reality.
    15th International Conference on Intelligence in Next Generation Networks (ICIN), (pp. 97-
    102).
•   Frost&Sullivan. (2010). The race of smartphones, what next?
•   Frost&Sullivan. (2011). Emerging technologies in the European mobile space.
•   Frost&Sullivan. (2011). Futuretech Alert.
•   Frost&Sullivan. (2011). The status of the mobile advertising market in Europe - the
    perspective of the ad-technology enablers.
•   Frost&Sullivan. (2012). Exploring the evolution of smartphone vendors.
•   Frost&Sullivan. (2012). U.S. mobile advertising and search market.
•   Jude, M. (2012). Augmented reality: the virtual world gets real. Frost & Sullivan.
•   Lee, I. (2009). Towards augmented reality a review of its enabling technologies.
    International Symposium on Ubiquitous Virtual Reality, ISUVR '09, (pp. 25-28).
•   Lopez, H., Navarro, A., & Relano, J. (2010). An analysis of augmented reality systems. Fifth
    International Multi-conference on Computing in the Global Information Technology (ICCGI),
    (pp. 245-250).
•   MagazinesCanada. (2012). Magazine trends 2011. Retrieved 2012, from
    http://www.magazinescanada.ca/uploads/File/AdServices/Research/Trends/Trends2011July
    2012.pdf
•   Saukkonen, J. (2004). Technologies for the future - value system analysis as a tool for
    (media) convergence assessment. EU-US Seminar: New Technology Foresight,
    Forecasting & Assessment Methods. Seville.
                                                                                             Slide 54
References
•   Scocco, D. (2006). The Teece Model. Retrieved 2012, from
    http://innovationzen.com/blog/2006/08/24/innovation-management-theory-part-5/
•   Stratecast. (2011). Mobile advertising building blocks: subscribers, networks and
    platforms. Frost & Sullivan.
•   Sullivan, F. &. (2011). Asia Pacific mobile advertising markets 2010.
•   Teece, D. (1986). Profiting from technological innovation: implications for integration,
    collaboration, licensing and public policy.
•   Aurasma. (2012). Retrieved 2012, from Aurasma: http://www.aurasma.com/
•   Autonomy. (2012). Autonomy: Aurasma. Retrieved 2012, from
    http://promote.autonomy.com/promote/products/aurasma.page
•   Consumer QR Code Scans up 157%. (2012). Retrieved 2012, from
    http://www.marketingcharts.com/topics/demographics/consumer-qr-code-scans-up-157-
    22145/scanlifeqrdemos585jpg/
•   Consumers agree: ads should tell unique stories. (2012). Retrieved 2012, from
    http://www.marketingcharts.com/wp/television/consumers-agree-ads-should-tell-unique-
    stories-24304/
•   Magazine advertisers' use of Mobile Action Codes reaches new heights. (2012). Retrieved
    2012, from http://www.marketingcharts.com/direct/magazine-advertisers-use-of-mobile-
    action-codes-reaches-new-heights-23075/nellymoser-mag-ad-pages-mobile-action-code-
    mar2011-mar2012-jun20120-aug2012png/
•   Magazines' QR Codes Said Delivering Strong Response, Engagement Rates. (2012).
    Retrieved 2012, from http://www.marketingcharts.com/wp/direct/magazine-action-codes-
    said-delivering-strong-response-engagement-rates-23698/
                                                                                           Slide 55
References
•   Marketing Charts: Magazines. (2012). Retrieved 2012, from
    http://www.marketingcharts.com/category/magazines/
•   (n.d.). Retrieved 2012, from We are organized chaos (WAOC):
    http://weareorganizedchaos.com/index.php/category/mobile/




                                                                  Slide 56

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Biz model for augmented reality

  • 1. MT5016 – Business Models for Hi-tech Products Business Model for Augmented Reality Technology Group Members  Aryoko Wibowo S. A0082149A  Jerico Juico A0091472E  Lim Shoa Siong A0068312L  Mun Kek Chian A0090745B  Yeo Lian Sheng A0081976N
  • 2. Scope • Technology Description • Product Overview • Market Segment • Value Proposition • Value Capture • Scope of Activities • Strategic Control • Aurasma Demo Slide 2
  • 4. Forms of AR Implementation • Head-up Display (HUD) – Sensics Smartgoggle • Adv: Include sound with 3D capability; allows interactions • Dis: Not mobile; primarily in- home experience like entertainment, communication and egaming – Google Glasses • Adv: Data display floats in virtual field; utilizes mono- vision correction • Dis: Not truly immerse; loses depth perception – Innovega iOptik • Adv: Fully immerse • Dis: Not completely wear and use, require contact lens Slide 4
  • 5. Forms of AR Implementation • Smartphones – In the form of AR browsers and apps – Data tagging readers that look for data tags placed on specific items, images or locations – Not continuous and automatic – Has to be started, selected and managed to obtain information Slide 5
  • 6. AR Applications • Marketing & Advertising • Tourism & Navigation • Translation & Instruction • Gaming & Magazines • And more … … Frost & Sullivan, “Emerging Technologies in the European Mobile Space”, June 2011 Slide 6
  • 7. AR Market Potential • Global AR Market projected to increase significantly Stratecast, “Augmented Reality: The Virtual World Gets Real”, June 2012 Slide 7
  • 8. Drivers for AR in Smartphone In particular, AR in smartphones has great potential for growth! Frost & Sullivan, “Exploring the Evolution of Smartphone Vendors”, August 2012 Frost & Sullivan, “The Race of Smartphones, What Next”, June 2012 Frost & Sullivan, “Mobile Augmented Reality”, January 2011 Slide 8
  • 10. Product Leveraging its industry-leading pattern-recognition technology, Autonomy introduce Aurasma Augmented Reality platform. Aurasma App uses location or the camera to translate the image into data and recognise it with the associated content Once the location or image is recognised, it will seamlessly overlays multimedia content into the viewer to create a unique and engaging experience for the user Slide 10
  • 11. Product (Content Browser) Free (Content Creation) Free Through Partnership Free Apply for Access Skinned Apps and Download Kernel into Existing Apps Slide 11
  • 12.
  • 15. Customer Market Segment • Printed Magazine Publishers – General Interest Content – Niche Interest Content Slide 15
  • 16. Customer Market Segment • Printed Magazine Publishers – Value Chain Content Content Content Content Content Creation Aggregation Management Distribution Consumer Juha Saukkonen, “Technologies for the Future - Value System Analysis as a Tool for (Media) Convergence Assessment”, EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods, Seville 13-14 May 2004 Slide 16
  • 17. Customer Market Segment • Consumers believe that traditional media is still the best sources for advertising! Advertising segment is important for • Magazine advertising influenced the magazine publisher customers decision on purchasing http://www.marketingcharts.com/category/magazines/ Slide 17
  • 18. Customer Market Segment Consumers expect more life content from advertisement http://www.marketingcharts.com/wp/television/consumers-agree-ads-should-tell-unique-stories-24304/ Slide 18
  • 19. Customer Market Segment Print version of magazines continue to be the preferred mode of reading http://www.magazinescanada.ca/uploads/File/AdServices/Research/Trends/Trends2011July2012.pdf Slide 19
  • 20. Customer Market Segment Although consumers still prefers print version of magazine, they see digital content as complementary Consumers think that videos and photos greatly enhanced their magazine reading experience http://www.magazinescanada.ca/uploads/File/AdServices/Research/Trends/Trends2011July2012.pdf Slide 20
  • 21. Trends in Print Magazine - QR Code Magazines’ QR Codes Said Delivering Strong Response, Engagement Rates Mobile barcode (or QR Code) scans by consumers were up 157% in Q1 2012 over Q1 2011Slide 21 http://www.marketingcharts.com/topics/demographics/consumer-qr-code-scans-up-157-22145/scanlifeqrdemos585jpg/
  • 22. Trends in Print Magazine - QR Code Magazine advertisers’ use of QR codes grew to new heights http://www.marketingcharts.com/direct/magazine-advertisers-use-of-mobile-action-codes-reaches-new-heights- 23075/nellymoser-mag-ad-pages-mobile-action-code-mar2011-mar2012-jun20120-aug2012png/ Slide 22
  • 24. Customer Market Segment • Integrating AR into magazines – AR industry is set to grow rapidly – Magazine publishers are looking for new innovative solutions to capture readership and attract advertisement – Readers are looking to complement print magazines with digital content (esp. video and photos) • Potential for AR to be integrated into print magazines! – AR can replace QR Code Slide 24
  • 26. Potential Applications of AR in How would it Magazine benefit readers / publisher? What AR can do for Enhance readers Magazine? experience, more Additional digital information, more fun content for printed magazine Boost sales of Magazine by more appealing content Readers gain better visual experience out of attractive Enhance ads advertisement content Publishers can attract more AR advertiser Direct readers to online shopping site easily Access to E- commerce site New revenue stream for publisher by refer readers to commercial site Enhance Publisher can integrate interaction between AR to social platform to readers & publisher attract more readers Slide 26
  • 28. Value Proposition • Expand Magazine Contents – Convergence of print and digital content – Hybrid media as a new product service • Open Potential Revenue Stream in Mobile Advertising for Magazine Publishers – Extract benefits from increasing digital connection trend • Enhance the Appeal of Magazine – Increase readership – Attract advertisement • Increase Revenue – Magazine Sale Revenue – Advertising Revenue Slide 28
  • 29. AR Digital Content + Magazine Magazine comes to life with additional digital content! Slide 29
  • 30. AR Digital Content + Magazine Makes the magazine more appealing to the readers! Slide 30
  • 31. AR + Magazine Advertisement Enhance advertisement effect by incorporating audio/video into print! Slide 31
  • 32. AR + Magazine Advertisement • Potential Revenue Stream from Mobile Advertising for Magazine Publishers – Defined as advertising activity delivered via mobile devices (e.g. smart-phones, tablets) to target audiences – Including mobile display and video advertising Mobile Advertising Ecosystem Stratecast, “Mobile Advertising Building Blocks”, February 2012 Slide 32
  • 33. AR + Magazine Advertisement Magazine Publishers Can Capture the Growing Revenue in Mobile Advertising Frost & Sullivan, “The Status of the Mobile Advertising Market in Europe - The Perspective of the Ad-Technology Enablers”, April 2011 Frost & Sullivan, “US Mobile Advertising and Search Market”, February 2012 Frost & Sullivan, “Asia Pacific Mobile Advertising Markets 2010”, February 2011 Slide 33
  • 35. Value Capture • Printed Magazine Publishers – Value Chain Advertiser Reader Magazine Publisher Juha Saukkonen, “Technologies for the Future - Value System Analysis as a Tool for (Media) Convergence Assessment”, EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods, Seville 13-14 May 2004 Slide 35
  • 36. Value Capture Modified Value Chain for Magazine Publishing Market AR Platform Manager Mobile Advertiser Advertiser Reader Magazine Publisher Juha Saukkonen, “Technologies for the Future - Value System Analysis as a Tool for (Media) Convergence Assessment”, EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods, Seville 13-14 May 2004 Slide 36
  • 37. Value Capture • Printed Magazine Publishers – Money Flow & Revenue Stream Brand Advertiser Company Magazine Distributor Reader Publisher Outsourced Printing Sales & Content House Marketing Slide 37
  • 38. Value Capture • Increase revenue Modified Revenue Stream from existing stream • Generate new revenue stream Brand Advertiser Company Mobile Magazine Distributor Reader Advertiser Publisher NEW Increased Outsourced Printing Sales & Content House Marketing Slide 38
  • 39. Advertiser pays Publisher for Publisher Printed Ads Advertiser Informed by the product/content, Consumer
  • 40. Publisher develops content to create the Aura Aurasma Charges per click Advertiser pays Publisher for Publisher & System Printed Ads Publisher Pays per click Publisher Charges AURA Advertiser for Aura Advertiser Seeks the product/content, Consumer Delighted by the AURAsma Aurasma experience experience Slide 40
  • 42. Scope of Activities • Continous Improvement on Image Recognition Technology • Increase ability on recognizing real world objects • Fast response of the image recognition • Speed connection detection to adjust content quality • Adding more features on Aurasma Studio that will benefit content creator in creating interactive Auras • Participate in Augmented Reality Events and Conferences to benefit from industry experience Slide 42
  • 43. Scope of Activities • Partnership with Magazine Publishers • Starting from Technology Related Magazines into all categories of magazines • Educate Magazine Publishers and also 3rd party involved on Magazine publishing especially Magazines Advertisers by conducting free training on adding Auras using Aurasma Studio • Collaborate with Magazine Publishers on defining the best user experience for the customer in order to enhance it • Develop a platform for personalized user experience of the magazines customers Slide 43
  • 44. Scope of Activities • Due to the Indirect Network Effects between Aurasma Lite and Aurasma Pro, both sides of users should grow sustainably. • Make Aurasma Lite available in dominant Mobile OS platform • Collaborate with Mobile Devices Manufacturers to make Aurasma Lite as Pre- Installed Apps • Distribute Aurasma Pro to prospective partners such as Content Developers, Advertisers, etc. Slide 44
  • 46. Strategic Control Overview Complementary IP Protection Assets Strategic Control Network Effects R&D Slide 46
  • 47. IP Protection • Increase IP protection in major countries of target markets – Patent – Copyright – Trademark • However, even with IP protection, it is difficult to enforce against infringements • Need to have strong control over complementary assets Slide 47
  • 48. Complementary Assets Distribution channels Aura Marketing development capabilities training Complementary Assets Aura Strategic development alliances tools Strong control over key Aura Customer browser relationships complementary assets is required Slide 48
  • 49. Network Effects • Focus on building strong base of magazine publishers and readers using Aurasma through free distribution of Aurasma Lite and Aurasma Pro • Leverage on network effects to make Aurasma the defacto standard for AR in magazines Browser growth drives demand for Aura creation Magazine readers Magazine publishers Content Browser Content Creation Aura growth drives demand for Aura Browsers Slide 49
  • 50. Research & Development • Continued improvement in core AR technology • Enhancement of Browser App and Aura Development tools • Push the frontier of magazine reader experience Slide 50
  • 51. Summary Business Model Description Component Product • Aurasma Lite (Content Browser) • Aurasma Pro (Content Creation) Customer Segment • Print magazine publisher Value Proposition • Expand magazine contents • Enhance magazine appeal • Increase sales & advertising revenue Value Capture • Charge per-click on content & advertisement accessed thru Aurasma Scope of Activities • R&D in image recognition technology • Partnership with print magazine publisher, mobile OS developer, mobile device manufacturer and Aura developers Strategic Control • IP protection thru patent, copyright & trademark • Tight control of key complementary assets • Leverage on network effects between Aurasma Lite and Pro • R&D to maintain technology leadership Slide 51
  • 53.
  • 54. References • Bernados, A., & Casar, J. (2011). Analyzing business models for mobile augmented reality. 15th International Conference on Intelligence in Next Generation Networks (ICIN), (pp. 97- 102). • Frost&Sullivan. (2010). The race of smartphones, what next? • Frost&Sullivan. (2011). Emerging technologies in the European mobile space. • Frost&Sullivan. (2011). Futuretech Alert. • Frost&Sullivan. (2011). The status of the mobile advertising market in Europe - the perspective of the ad-technology enablers. • Frost&Sullivan. (2012). Exploring the evolution of smartphone vendors. • Frost&Sullivan. (2012). U.S. mobile advertising and search market. • Jude, M. (2012). Augmented reality: the virtual world gets real. Frost & Sullivan. • Lee, I. (2009). Towards augmented reality a review of its enabling technologies. International Symposium on Ubiquitous Virtual Reality, ISUVR '09, (pp. 25-28). • Lopez, H., Navarro, A., & Relano, J. (2010). An analysis of augmented reality systems. Fifth International Multi-conference on Computing in the Global Information Technology (ICCGI), (pp. 245-250). • MagazinesCanada. (2012). Magazine trends 2011. Retrieved 2012, from http://www.magazinescanada.ca/uploads/File/AdServices/Research/Trends/Trends2011July 2012.pdf • Saukkonen, J. (2004). Technologies for the future - value system analysis as a tool for (media) convergence assessment. EU-US Seminar: New Technology Foresight, Forecasting & Assessment Methods. Seville. Slide 54
  • 55. References • Scocco, D. (2006). The Teece Model. Retrieved 2012, from http://innovationzen.com/blog/2006/08/24/innovation-management-theory-part-5/ • Stratecast. (2011). Mobile advertising building blocks: subscribers, networks and platforms. Frost & Sullivan. • Sullivan, F. &. (2011). Asia Pacific mobile advertising markets 2010. • Teece, D. (1986). Profiting from technological innovation: implications for integration, collaboration, licensing and public policy. • Aurasma. (2012). Retrieved 2012, from Aurasma: http://www.aurasma.com/ • Autonomy. (2012). Autonomy: Aurasma. Retrieved 2012, from http://promote.autonomy.com/promote/products/aurasma.page • Consumer QR Code Scans up 157%. (2012). Retrieved 2012, from http://www.marketingcharts.com/topics/demographics/consumer-qr-code-scans-up-157- 22145/scanlifeqrdemos585jpg/ • Consumers agree: ads should tell unique stories. (2012). Retrieved 2012, from http://www.marketingcharts.com/wp/television/consumers-agree-ads-should-tell-unique- stories-24304/ • Magazine advertisers' use of Mobile Action Codes reaches new heights. (2012). Retrieved 2012, from http://www.marketingcharts.com/direct/magazine-advertisers-use-of-mobile- action-codes-reaches-new-heights-23075/nellymoser-mag-ad-pages-mobile-action-code- mar2011-mar2012-jun20120-aug2012png/ • Magazines' QR Codes Said Delivering Strong Response, Engagement Rates. (2012). Retrieved 2012, from http://www.marketingcharts.com/wp/direct/magazine-action-codes- said-delivering-strong-response-engagement-rates-23698/ Slide 55
  • 56. References • Marketing Charts: Magazines. (2012). Retrieved 2012, from http://www.marketingcharts.com/category/magazines/ • (n.d.). Retrieved 2012, from We are organized chaos (WAOC): http://weareorganizedchaos.com/index.php/category/mobile/ Slide 56