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Biz model for augmented reality


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my student use ideas from my class on business models to develop a business model for Aurasma's Augmented Reality Product. WIth Aurasma's product, smart phone users can access data from magazines and other print media, thus providing them with additional information and magazines with a new source of revenues. These slides describe the value propositions, customer selections, and methods of value capture for the various firms involved with this form of augmented reality.

Published in: Business

Biz model for augmented reality

  1. 1. MT5016 – Business Models for Hi-tech Products Business Model forAugmented Reality Technology Group Members  Aryoko Wibowo S. A0082149A  Jerico Juico A0091472E  Lim Shoa Siong A0068312L  Mun Kek Chian A0090745B  Yeo Lian Sheng A0081976N
  2. 2. Scope• Technology Description• Product Overview• Market Segment• Value Proposition• Value Capture• Scope of Activities• Strategic Control• Aurasma Demo Slide 2
  3. 3. Technology
  4. 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. 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. 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. 7. AR Market Potential • Global AR Market projected to increase significantlyStratecast, “Augmented Reality: The Virtual World Gets Real”, June 2012 Slide 7
  8. 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 2012Frost & Sullivan, “The Race of Smartphones, What Next”, June 2012Frost & Sullivan, “Mobile Augmented Reality”, January 2011 Slide 8
  9. 9. Product
  10. 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. 11. Product (Content Browser) Free (Content Creation) Free Through PartnershipFree Apply forAccess Skinned Apps and Download Kernel into Existing Apps Slide 11
  12. 12. Video –
  13. 13. Customer Market Segment
  14. 14. Customer Market Segment• Printed Magazine Publishers – General Interest Content – Niche Interest Content Slide 15
  15. 15. Customer Market Segment • Printed Magazine Publishers – Value Chain Content Content Content Content Content Creation Aggregation Management Distribution ConsumerJuha 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
  16. 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 Slide 17
  17. 17. Customer Market Segment Consumers expect more life content from advertisement Slide 18
  18. 18. Customer Market Segment Print version of magazines continue to be the preferred mode of reading Slide 19
  19. 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 Slide 20
  20. 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
  21. 21. Trends in Print Magazine - QR Code Magazine advertisers’ use of QR codes grew to new heights Slide 22
  22. 22. Comparison of AR vs QR
  23. 23. 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
  24. 24. Video –
  25. 25. Potential Applications of AR in How would itMagazine 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
  26. 26. Value Proposition
  27. 27. 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
  28. 28. AR Digital Content + MagazineMagazine comes to life withadditional digital content! Slide 29
  29. 29. AR Digital Content + MagazineMakes the magazine moreappealing to the readers! Slide 30
  30. 30. AR + Magazine AdvertisementEnhance advertisement effect by incorporatingaudio/video into print! Slide 31
  31. 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 EcosystemStratecast, “Mobile Advertising Building Blocks”, February 2012 Slide 32
  32. 32. AR + Magazine Advertisement Magazine Publishers Can Capture the Growing Revenue in Mobile AdvertisingFrost & Sullivan, “The Status of the Mobile Advertising Market in Europe - The Perspective of the Ad-TechnologyEnablers”, April 2011Frost & Sullivan, “US Mobile Advertising and Search Market”, February 2012Frost & Sullivan, “Asia Pacific Mobile Advertising Markets 2010”, February 2011 Slide 33
  33. 33. Value Capture
  34. 34. Value Capture • Printed Magazine Publishers – Value Chain Advertiser Reader Magazine PublisherJuha 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
  35. 35. Value Capture Modified Value Chain for Magazine Publishing Market AR Platform Manager Mobile Advertiser Advertiser Reader Magazine PublisherJuha 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
  36. 36. Value Capture• Printed Magazine Publishers – Money Flow & Revenue Stream Brand AdvertiserCompany Magazine Distributor Reader PublisherOutsourced Printing Sales & Content House Marketing Slide 37
  37. 37. Value Capture • Increase revenueModified Revenue Stream from existing stream • Generate new revenue stream Brand AdvertiserCompany Mobile Magazine Distributor Reader Advertiser Publisher NEW IncreasedOutsourced Printing Sales & Content House Marketing Slide 38
  38. 38. AdvertiserpaysPublisher for PublisherPrinted AdsAdvertiser Informed by the product/content, Consumer
  39. 39. Publisher develops content to create the Aura Aurasma Charges per clickAdvertiserpaysPublisher for Publisher & SystemPrinted Ads Publisher Pays per click Publisher Charges AURA Advertiser for AuraAdvertiser Seeks the product/content, Consumer Delighted by the AURAsma Aurasma experience experience Slide 40
  40. 40. Scope of Activities
  41. 41. 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
  42. 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
  43. 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
  44. 44. Strategic Control
  45. 45. Strategic Control Overview Complementary IP Protection Assets Strategic Control Network Effects R&D Slide 46
  46. 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
  47. 47. Complementary Assets Distribution channels Aura Marketing development capabilities training Complementary Assets Aura Strategic development alliances toolsStrong controlover key Aura Customer browser relationshipscomplementaryassets is required Slide 48
  48. 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
  49. 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
  50. 50. SummaryBusiness Model DescriptionComponentProduct • Aurasma Lite (Content Browser) • Aurasma Pro (Content Creation)Customer Segment • Print magazine publisherValue Proposition • Expand magazine contents • Enhance magazine appeal • Increase sales & advertising revenueValue Capture • Charge per-click on content & advertisement accessed thru AurasmaScope of Activities • R&D in image recognition technology • Partnership with print magazine publisher, mobile OS developer, mobile device manufacturer and Aura developersStrategic 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
  51. 51. Aurasma Demo
  52. 52. 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 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
  53. 53. References• Scocco, D. (2006). The Teece Model. Retrieved 2012, from• 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:• Autonomy. (2012). Autonomy: Aurasma. Retrieved 2012, from• Consumer QR Code Scans up 157%. (2012). Retrieved 2012, from 22145/scanlifeqrdemos585jpg/• Consumers agree: ads should tell unique stories. (2012). Retrieved 2012, from stories-24304/• Magazine advertisers use of Mobile Action Codes reaches new heights. (2012). Retrieved 2012, from 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 said-delivering-strong-response-engagement-rates-23698/ Slide 55
  54. 54. References• Marketing Charts: Magazines. (2012). Retrieved 2012, from• (n.d.). Retrieved 2012, from We are organized chaos (WAOC): Slide 56