These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for augmented reality software in the furniture industry. This software, in the form of a mobile app, enables users to envision new furniture in their home. After picking a scene from their home, users can download a 3D image of furniture from an online furniture’s web site into the app, and change the furniture’s position and color. The customers for the software are online retailers and furniture buyers. The value proposition for the user is better purchase decisions and for the on-line retailer is fewer returns. Possible methods of value capture include sales of the app to online retailers, pay per click, and commissions per sale of furniture to end users. Intellectual property and network effects are the possible barriers to entry and thus methods of strategic control.