Slides from week 4 of MIS5101: Business Intelligence taught by Prof. Steven L. Johnson at Temple University Fox School of Business.

1. MIS5101: Business Intelligence
Week 4 – Digital Goods
PROF. STEVEN L. JOHNSON
Twitter: @StevenLJohnson
http://stevenljohnson.org
http://community.mis.temple.edu/mis5101fall10/

2. Today’s Agenda
 Case Discussion
 Recap: Blog Discussion Question
 Reading Discussion
 Case Study Analysis Feedback
 Activity

3. Overview Questions
 What business is SKOLAR in?
 What is SKOLAR’s product?
 What is SKOLAR’s business model?
 Who are SKOLAR’s potential customers?
 What does the McKinsey report recommend?

4. Discussion Questions
 Based on the information provided in the case, do
you think SKOLAR has a viable business model?
Why or why not? What additional information would
you like to know to make a better determination?
 What is your assessment of the McKinsey report?
How do you assess the approach, facts, and
conclusions of the report?
 If you were Paul Lippe, CEO of SKOLAR, what would
you do? Be specific. For example, what market would
you approach first? How? Why?

5. 1-Minute Essay
1. What is something you learned?
2. What would you like to know more about?
3. Other comments

6. Blog Discussion + Reading
 Digital information goods
 Experience goods
 Non-rival
 Often perishable: time = $$
 Market solutions
 Browsing / segmentation (time, detail, analysis tools)
 Distribution
 Bundling
 Tiers
 $$
 Subscriptions
 Advertising-supported

7. Case Study Analysis Feedback
 Strengths
 One page
 Mostly clear what question addressed
 Weaknesses
 OT1H, OTOH, OTOOH
 Evidence beyond the case
 Opportunities
 Make a decision, stick to it
 Analysis: use case facts as evidence
 Write and rewrite

8. In-Class Exercise
 See handout

9. Product Offering Formula
 Potential Subscribers (PS)
 Conversation Rate (CS) (~ market share / penetration)
 Annual Subscription Charge (SC)
 Variable Costs (VC)
 Fixed Costs (FC)
(PS * CR * (SC-VC)) – FC = gross profit for product

10. For More Information
PROF. STEVEN L. JOHNSON
EMAIL: STEVEN@TEMPLE.EDU
Twitter: @StevenLJohnson
http://stevenljohnson.org
http://community.mis.temple.edu/mis5001fall10johnson/