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.

1. Baen publishing
Andrew Boyd
Satomi Hisamoto
Kate Davids
Ivannia Figueroa
Charise Mason
David Ioli
1

2. Agenda
2

3. Agenda
Current organisation
2

4. Agenda
Current organisation
Book publishing industry
2

5. Agenda
Current organisation
Book publishing industry
Time to move Print Vs. Digital
2

6. Agenda
Current organisation
Book publishing industry
Time to move Print Vs. Digital
Businesses models evaluated
2

7. Agenda
Current organisation
Book publishing industry
Time to move Print Vs. Digital
Businesses models evaluated
Chosen business model
2

8. Agenda
Current organisation
Book publishing industry
Time to move Print Vs. Digital
Businesses models evaluated
Chosen business model
Community building
2

9. Agenda
Current organisation
Book publishing industry
Time to move Print Vs. Digital
Businesses models evaluated
Chosen business model
Community building
Business Budget Estimation
2

10. Agenda
Current organisation
Book publishing industry
Time to move Print Vs. Digital
Businesses models evaluated
Chosen business model
Community building
Business Budget Estimation
Customer’s journey
2

11. Our products:
3

12. Our products:
Webscription e-books
3

13. Our products:
Webscription e-books
Paperbacks
3

14. Our products:
Webscription e-books
Paperbacks
Audiobooks
3

15. Our products:
Webscription e-books
Paperbacks
Audiobooks
Free library
3

16. The Industry Structure
4

17. 5

18. 5

19. 5

20. 5

21. 5

22. 5

23. 5

24. 6

25. current customers
7

26. current customers
45-65 year old
7

27. current customers
45-65 year old
Male
7

28. current customers
45-65 year old
Male
No children
7

29. current customers
45-65 year old
Male
No children
Educated
7

30. current customers
45-65 year old
Male
No children
Educated
Browse from home
7

31. current customers
I love Sci-fi
45-65 year old books
Male
No children
Educated
Browse from home
7

32. Motivation
8

33. Motivation
8

34. Current audience video
9

35. Time to move?
Print Vs. Ebooks
10

36. Argument for change
11

37. Argument for change
11

38. Arguments for change
12

39. 13

40. 13

41. Amazon
sold $1
2010. 2.95 bil
lio n in ebo
oks in
13

42. 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 eb
Ki nd
13

43. 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

44. We need to go digital...
14

45. 3 Businesses models evaluated
15

46. What is Crowdsourcing?
16

47. Advantages
17

48. Advantages
Brand
Engagement
17

49. Advantages
Brand
Engagement
Insights
17

50. Advantages
Brand
Engagement
Insights Cost
Saving
17

51. Advantages
Brand
Creative
Engagement
ideas
Insights Cost
Saving
17

52. Advantages
Brand
Creative
Engagement
ideas
R&D Cost
Insights
Saving
17

53. Disadvantages
18

54. Disadvantages
Lack of
Stability
18

55. Disadvantages
Lack of Copyright
Stability issues
18

56. Disadvantages
Lack of Copyright
Stability issues
Profitable?
18

57. Disadvantages
Lack of Copyright
Stability issues
Profitable? Vandalism
18

58. Data-driven Business Model
19

59. information
20

60. information
20

61. information information
20

62. valuable
data
21

63. third parties
valuable
data
21

64. third parties
valuable offer tailored products
data and/or services
21

65. third parties
valuable offer tailored products
data and/or services
advertising
21

66. valuable
data
=
21

67. Freemium Business Model
22

68. 23

69. quantity / quality
of services
paid by paid by
advertising consumers
23

70. quantity / quality
of services
Free
paid by paid by
advertising consumers
23

71. quantity / quality
of services
Pa i d
Free
paid by paid by
advertising consumers
23

72. quantity / quality
of services
Pa i d
80/20 rule
Free
paid by paid by
advertising consumers
23

73. 24

74. Our new business model:
Freemium + crowdsourcing
25

75. What is on the website?
26

76. 27

77. Engaging the community
Forums
Offline Games
Community
Email SNS
Mobile
28

78. Engaging the community
Forums
28

79. Stories
29

80. Stories
Featured
29

81. Stories
Featured
Favourite Characters
29

82. Forums
Connect directly to profiles
Focus on stories
Available on user’s home
screen
30

83. Engaging the community
Forums
Offline Games
Community
Email SNS
Mobile
31

84. Engaging the community
Gam e s
31

85. Games
Follows freemium model
Full site integration
Social / Casual games
32

86. Engaging the community
Forums
Offline Games
Community
Email SNS
Mobile
33

87. Engaging the community
SNS
33

88. Social networking sites
Drive Traffic to the website
Contests
Game functionality on Facebook?
Discussion of books
Encourage users to interact
between them
34

89. What we are doing
What authors we are talking to
Possible stories for the future
Marketing promotions
Surveys
35

90. Engaging the community
Forums
Offline Games
Community
Email SNS
Mobile
36

91. Engaging the community
Mobile
36

92. Mobile
Display ads
Text alerts
Mobile friendly website
Apps (future)
37

93. Engaging the community
Forums
Offline Games
Community
Email SNS
Mobile
38

94. Engaging the community
Email
38

95. Email *%$+,&!"#"&-.&/01/+#$12&-.&3!45&
&6.7-8%9&72:/%2;2#&
!"#$%&'())&
Drive traffic to the website
Offers and promotions
New books and products
Call to action
39

96. Engaging the community
Forums
Offline Games
Community
Email SNS
Mobile
40

97. Engaging the community
Offline
40

98. Offline
Events
Yearly conference
Advertising in published
books
41

99. Marketing
Online ads
SEO
Offline ads
Databases
Start-up promotions
Pay with a tweet
42

100. Community
43

101. Community Building
The number of members in
5 semesters will be...
44

102. Community Building
English speaking
The number of members in
5 semesters will be...
44

103. Community Building
English speaking
Internet connection
The number of members in
5 semesters will be...
44

104. Community Building
English speaking
Internet connection
Interested in Sci-Fi
The number of members in
5 semesters will be...
44

105. Community Building
English speaking
Internet connection
= 20,188,330
Interested in Sci-Fi
The number of members in
5 semesters will be...
44

106. Community Building
English speaking
Internet connection
= 20,188,330
Interested in Sci-Fi X 5%
The number of members in
5 semesters will be...
44

107. Community Building
English speaking
Internet connection
= 20,188,330
Interested in Sci-Fi X 5%
The number of members in
5 semesters will be...
504,708
44

108. 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
12,617.50
1st Semester 2nd Semester 3rd Semester 4th Semester 5th Semester
45

109. ?
46

110. ,%$$+
-%.)/$+
0(1#$%+
+
'"/0"(.*-1&
'"()*+$,-."&
56!"+,"(.&
!"#$%&'()*+
2334.& G%>*3(.&
!"#"$%"&
E(3?,&
;3%()"&
73(%/.& 8+/".&
;3)-+<&
=">?3(4.&
9:-$"&&
E3//%$->F& @7+)"0334&
A&B?-C"(D&
47

111. Freemium
free
48

112. Freemium
free bronze
£ 2.99 x m
48

113. Freemium
free bronze
✓ No ads
£ 2.99 x m
48

114. Freemium
free bronze
✓ No ads
✓ Special
content
£ 2.99 x m
48

115. Freemium
free bronze
✓ No ads
✓ Special
content
✓ Enhanced
game play
£ 2.99 x m
48

116. Freemium
free bronze silver
✓ No ads
✓ Special
content
✓ Enhanced
game play
£ 2.99 x m £ 6.99 x m
48

117. Freemium
free bronze silver
✓ No ads ✓10% off
✓ Special merchandise
content
✓ Enhanced
game play
£ 2.99 x m £ 6.99 x m
48

118. Freemium
free bronze silver
✓ No ads ✓ 10% off
✓ Special merchandise
content ✓ Downloadable
✓ Enhanced PDFs
game play
£ 2.99 x m £ 6.99 x m
48

119. Freemium
80%
£0 12%
8%
£ 2,152,800 £ 3,355,200
49

120. Advertising
Free members only
5 visits per week
15 pages x visit
7 ads x page
£ 1,036,800
Standard CTR
Standard revenue
50

121. Gaming
20% play games
20% of players spend money
51

122. Gaming
20% play games
20% of players spend money
£2.50
£5.00 £10.00
£15.00
40% 25% 25% 10%
51

123. Gaming
20% play games
20% of players spend money
£ 484,519
£2.50
£5.00 £10.00
£15.00
40% 25% 25% 10%
51

124. Merchandise
Outsourcing everything
20% buy merchandise
Revenue is 30% of sales
52

125. Merchandise
Outsourcing everything
20% buy merchandise
Revenue is 30% of sales
£10.00
£25.00 £50.00
£100.00
40% 25% 25% 10%
52

126. Merchandise
Outsourcing everything
20% buy merchandise £ 495,875
Revenue is 30% of sales
£10.00
£25.00 £50.00
£100.00
40% 25% 25% 10%
52

127. Revenue
53

128. Revenue
Games
Merchandise 10%
10%
Advertising
22%
Freemium
58%
Advertising Freemium
Merchandise Games
53

129. Revenue
Games
Merchandise 10%
10%
Advertising
22%
Total = £4,771,194
Freemium
58%
Advertising Freemium
Merchandise Games
53

130. 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

131. Revenue Revenue
£720,000
£350,000 £350,000 £350,000 £350,000
1st semester 2nd semester 3rd semester 4th semester 5th semester
55

132. Revenue Revenue
£720,000
£350,000 £350,000 £350,000 £350,000
1st semester 2nd semester 3rd semester 4th semester 5th semester
55

133. The Journey
56

134. Journey video
57

135. Questions
58