business model canvas

Hanze Institute of Engineering

Business Model Canvas Report Teleprompter Application Project

Group names    

Andrii Semenov Bogdan Obreja Gabi Caraus Volodymyr Nestaykov

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Contents Introduction ................................. ................................................. ................................. ................................. ................................. .................................. ................................. ............................ ............ 3 Business model canvas ............................... ................................................ .................................. .................................. .................................. ................................. ............................ ............ 4 I.

What ................................. ................................................. ................................. ................................. ................................. .................................. .................................. ............................... .............. 5 1.

II.

Values Proposition ................................ ................................................. .................................. .................................. ................................. ................................. ....................... ...... 5 Who .................................. .................................................. ................................. ................................. ................................. .................................. .................................. ............................... .............. 6

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Customer Segments .................................. .................................................. ................................. ................................. ................................. .................................. .................... ... 6

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Customer Relationships ................................. ................................................. ................................. .................................. .................................. ............................... .............. 6

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Channels .................................. .................................................. ................................. ................................. ................................. .................................. .................................. .................... ... 6

III.

How .................................. .................................................. ................................. ................................. ................................. ................................. ................................. ............................. ............ 8

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Key Partnerships ................................. ................................................. .................................. .................................. ................................. ................................. ......................... ......... 8

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Key Activities Activities ................................. .................................................. ................................. ................................. .................................. ................................. ............................... ............... 9

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Key Resources ............................... ................................................ ................................. ................................. .................................. ................................. ............................. ............. 10

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How much ............................... ................................................ .................................. ................................. ................................. .................................. .................................. ................... 11

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Revenue Streams ............................... ................................................ ................................... .................................. ................................. ................................. ....................... ....... 11

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Cost Structure ............................... ................................................ ................................. ................................. .................................. ................................. ............................. ............. 11

Conclusions and Recommendations ............................................. .............................................................. .................................. ................................. .......................... .......... 13 References ............................... ................................................ .................................. ................................. ................................. .................................. .................................. ............................. ............ 14

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Introduction

The teleprompter is a device that allows a presenter to read a script whilst maintaining direct eye contact with the audience by scrolling the script on the displaying device. The fundamental principle is that the text is displayed on a monitor that is mounted beneath a piece of reflective glass or beam splitter. The glass is transparent on one side, allowing the camera to shoot straight through the back of it, or to appear invisible to an audience, and reflective on the other, so that the presenter can see the reflection of the script. The image must be reversed in the monitor so that when it’s reflected by the

glass, it appears the right way round for the presenter to read. This project focuses on the development of an android application called PURE Teleprompter which is used to provide journalists, TV reporters, singers performing on stage, video bloggers, video and film producers which are using scrolling scripts during filming or presenting. This application will have features of remote control, mirrored mode, adjustment of background and text color, script import, editing and sharing. The feature that makes our product competitive amongst other teleprompter applications is the use of the remote controlling device to control the android displaying device via Wi-Fi Direct. In this case the range of control is more distant (100 m[1]) than with Bluetooth and no access point is needed to connect the devices. Moreover the data displayed on the android devices is synchronous, i.e. the text displayed on displaying device is the same as on controlling device. Mentioned features will be implemented for first generation of the application, which will be available for online public download and purchase in the Google Play Market. Next updates will include speech recognition and tracking, self-regulating size of text font based on the distance between the teleprompter and the user, remote control from Bluetooth devices and hands-free devices. The company under which the application will be developed is named PLURAL solutions. It specializes on developing mobile and web applications for different purposes and delivers services of software development.

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Business model canvas

Figure 1, The Business Model Canvas

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I.

What

1. Values Proposition We would like to introduce first premium teleprompter application which will make your presentations and speeches run smoothly and efficiently with plenty of tools that satisfy the requirements of most professional teleprompter setups. Our company helps people to prepare better speeches and presentations by providing unique solutions such as Wi-Fi Direct teleprompter control and script synchronization, customizable text and background options, scripts editing and import, screen mirroring for use in the te leprompter rigs. PURE Teleprompter is not just for studio use. The area of application is wider than one can think. We suggest services for different customer segments and professional occupations. Because of customization option the product can be used to help during presentations and speeches in companies, universities and schools, journalist and reporters broadcasts and will ease your video blog recording. Our company closely cooperates with Intelligent Lectern Systems and Sho-Q. This partnership allows us to implement control, preview and synchronization of PC scripts installed on the lecterns.

Full list of functions (payed version): 1. Screen mirroring and normal screen options 2. Text color, font and background customization 3. Wi-Fi direct control with script preview (two android or android-PC setups) 4. Script import in .txt .doc .docx 5. Script synchronization. 6. Script text editing with highlights and bookmarks.

Free version functions: 1. Screen mirroring and normal screen options 2. Text color, font and background customization 3. Script import in .txt 4. Script text editing.

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II.

Who

2. Customer Segments Customer segments are one of the most important building blocks in the business model canvas for our business. As a company we need to identify which customers we are going to serve, based on their particular needs. The different types of customer segments include: Mass market, Niche market, Segmented, Diversify and Multi-sided Platform/market[2,3]. We are going to concentrate on Mass Market, because we are planning to fulfill the needs of a wide cross section of the population, beginning from Bloggers, TV reporters, Film and Music makers and ending with Politicians and Corporate sector. This customer groups were chosen, because our product m atches their particular needs.

3. Customer Relationships To ensure the success of business, we must identify the type of relationship that we want to create with the customer segments. In our case we are going to concentrate on Dedicated Personal Assistance, Communities and Self-service. We chose this types of Customer relationships, because our Product(App) will be divided on Free and Paid version. We will create Communities in Internet and Self services for all our client, where Users can help each other, as well as find answers to the most frequently asked questions. On the other hand, customers, who paid more money for the Full version of app should get not only better functionality, but a better Service as well, so we would provide them an access to our Dedicated Personal Assistance, with 24h call center and Online help center.

4. Channels It is important for us to distribute our value proposition in a fast, efficient and cost effective ways. We are planning to reach our clients through our own channels, as well as through partner channels. In our case the best choice for partner channel are such popular digital distribution platforms as App Store and Play market with more than 100 billion app downloads. From chart below you can see that Google Play store and Apple App Store are the leaders on the market of digital distribution with total number of around 2,500,000 apps[4].

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Figure 2, Digital Distribution

In addition to sales through partner distribution platforms, our own channels, in our case Website, will give us a good platform for communication with our customers and will save us a lot of money in the long run, as Google Play market and App stores takes 30% of our revenue.

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III.

How

5. Key Partnerships Key Partnerships refers to the network net work of suppliers and partners that are making the business model canvas work. Furthermore our company forges strategic alliances to optimize the business models, to reduce risk and to acquire resources or revenue.[5] The types of partnerships that our company is focusing on are the following: 

Strategic alliances between non-competitors

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Funds-supplier relationship

Strategic alliances between non-competitors: One of the strategic alliances that our company is going to have with a non-competitor is with a company called Intelligent Lectern Systems(ILS) which is the premier sources for lecterns and podium’s that are suited for presenting, training, teaching, events and also conferences. The main partnership is based that all the systems that ILS will sell in the future, will come with our software which will help the presenter to easy navigate between pr esentations and in exchange our company will gain public visibility and awareness of the application and more connection with people who are interested in applications such as ours.

Funds-supplier relationships: Our company currently doesn’t require a large amount of money to be on the market since is focusing

on creating and developing new android applications. However when it comes to make people aware of our application (marketing) and also to future research and development projects, PLURAL Solutions requires some additional funds. In order to solve this problem, the company is focusing on acquiring financial income from sponsors such as Hanze University of Applied Sciences but also from the government by proving that is worth investing into the applications created by our own company. Furthermore in this way PLURAL Solutions is reducing financial risks that could happen in the near future and can focus on allocating the right amount of resources and activities in order to expand the company development.

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6. Key Activities The activities that a company must engage in to make th e business model work are called Key Activities. To operate successfully Plural Solutions has three activities that allow the company to generate revenue and in turn continue to improve the value it offers to customers: 

Problem Solving

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Research and Development

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Marketing

When it comes to providing a service to a customer it always requires a problem solving. Furthermore each individual using the company applications services may interpret the service differently and a variety of problem can arise. At Plural Solutions we are confident that we have the knowledge and the technology required to eliminate any serious problems that the customer might have before getting out of control and gaining a bad reputation. Furthermore our company also focusing on Research and Development (R&D) to conduct investigation in android applications with the intention of making discoveries that could lead on developing new apps or improving existing products. This way Plural Solutions can experience future growth by developing, improving and expanding our operations. Within our organization, marketing is vital business function that is necessary for our company to bring revenue and to distribute our services among different customer personas. Furthermore it creates a competitive environment that helps to lower product prices and it also helps in developing applications that satisfy needs of the customer.

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7. Key Resources Key Resources is the building block describing the most important assets needed to make the business canvas model work. The key resources that company is focusing on are intellectual and human and not physical since the company currently, doesn’t own any manufacturing facilities, building, vehicles etc. [6]

The Intellectual resources that our company is focused on are: 

the proprietary knowledge

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patents

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copyrights partnerships

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customer databases

All the intellectual resources mentioned above are increasingly important components of a strong business model and each one of them needs to be taken into account and analyzed accordingly. Since our company is focused on developing and implementing apps it depends on software intellectual property that has to be developed continuously and also around patents for different applications ideas since the company can earn substantial revenue from licensing fees. Another important key resource of our company is structured based on the Lattice Organization Model which is characterized by self-management as this structure has no hierarchy and no defined leadership. Furthermore the lattice organizational structure allows the company to become more flexible and to adapt more quickly to changes in the market. Also by giving workers more responsibility and the opportunity to change their work pattern to balance their work it provides a better worker retention and greater productivity. [7]

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IV.

How much

8. Revenue Streams From each customer segment described in the WHO section our company plans to generate a Revenue stream which will allow our company to continue its activities on the market and thus providing our product for new customers. Revenues that our product is going to create are going to be off the next forms : one-time customer payment sale , Licensing and Advertising.

Our plan is to have two products for our customers: a free version and a paid version. Both of them will be available in different online stores: Android Play Store (Android users), Amazon App Store (Android users), iTunes Apple Store (Apple IOS users), Windows Store (Windows users). The free version will facilitate the user the main required actions of the PURE Teleprompter described earlier, but it will feature the second method of collecting revenue which is Advertising. As a revenue source we are going to host ads on our app in a manner that it does not affect the efficiency of the app and maintain the same level of usage quality for the users [8]. If the user would want to have the functions of the full version described earlier it require of him an one-time product purchase which will be available only for that user and only on the operational platform it will be installed on. The one time purchase will be done through the online store which will direct the money to the offshore account registered on the company thus giving us the unique opportunity not to pay taxes. Our company cooperates closely with Intelligent Lectern Systems (ILS) on developing and implementing the PURE Teleprompter with their lectern rigs. Licensing grants ILS the right to sell our product together with their lectern products and separately with other software products of their own.

9. Cost Structure Selling and advertising The product sales can be done through different application selling platforms such as Play Market, iTunes Apple Store, Windows Store, Amazon App Store. We provide multiple subscription and licensing options. For subscription the payment can be done yearly (2 euros/year) or one-time payment for lifetime use (10 euros). Also free version will be issued with limited functionality to attract clients, advertise and thus raise customer awareness of a product and brand, generate sales.

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Research and Development (Innovations)

Wi-Fi Direct [9,10] is a new certificate, issued by Wi-Fi alliance in 2010 and is relatively new method to interface with nearby devices and stream peer-to-peer data. It is already used for connections android-android and android-printer, scanner, monitor and player systems. It is also capable of creating Wi-Fi Direct networks to share any data at high speed rates. With this technology we innovate in the teleprompter development to allow fast and wireless data exchange with controller device and displaying device. The capable range of the transmission is about 100 m as stated in Wi-Fi alliance documentation[1], created wireless network does not need the access point and moreover it is protected by WPS[10] (Wi-Fi Protected Setup) which makes this method most suitable for classrooms, lecture halls and studios.

Promotion Partnership with ILS and Sho-Q will give us access to capture both presentation and video markets and send our products along with theirs to promote, advertise and create brand loyalty for companies. From different view functionality of our products will enlarge ILS and Sho-Q product diversity and extend their presentation toolbox.

Economies of scope PLURAL solutions plans to develop other products for the public use and for that reason we are adopting a policy of economies of scope and not scale because of the following advantages : 1. Extreme flexibility in product design and product mix 2. Rapid responses to changes in market demand, product design and mix, output rates, and equipment scheduling 3. Cheaper to produce one product in conjunction with other products than to produce that product alone 4. Greater control, accuracy, and repeatability of processes 5. Less risk as if one product will not sell as expected there will still be available other products developed by PLURAL

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Conclusions and Recommendations To sum up the application with its number of features is going to be a must have tool for presenters, video bloggers and journalists. PLURAL solutions, the company providing the application, is going to suggest various subscription and licensing plans to capture the market of software Teleprompters and advertise the product. After the first Android app PLURAL solutions in partnership with Sho-Q and ILS is going to develop a system which will include both software and hardware solutions to provide more tools and functions for ease of presentations and speech. For future improvements concerning PURE Teleprompter we plan to use Google APIs to provide voice navigation and control over the script, thus adding more attractive functions to the toolbox of the application and making it more competitive on the market. Future plans also include expanding to different software platforms and providing access to the app to Apple, Windows and Linux users.

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References [1]Wi-fi.org,. "How Far Does A Wi-Fi Direct Connection Travel? | Wi-Fi Alliance". N.p., 2016. Web. 1 Mar. 2016. [2] Cleverism,. "Business Model Canvas: Customer Segments". N.p., 2015. Web. 1 Mar. 2016. [3] Wikipedia,. "Business Model Canvas". N.p., 2016. Web. 1 Mar. 2016. [4] Android Authority,. "Google Play Store Vs The Apple App Stor e: By The Numbers (2015)". N.p., 2015. Web. 1 Mar. 2016. [5] Ecommerce-digest.com,. "Key Partnerships In The Business Model". N.p., 2016. Web. 1 Mar. 2016. [6] Ecommerce-digest.com,. "Key Resources In The Business Model". N.p., 2016. Web. 1 Mar. 2016. [7] Smallbusiness.chron.com,. "How Does A Lattice Organization Work?". N.p., 2016. Web. 1 Mar. 2016. [8] Google.com,. "Google Adsense & Admob - Earn Money With Online Ads - G oogle". N.p., 2016. Web. 1 Mar. 2016. [9] Wi-fi,. "Wi-Fi Specifications". N.p., 2016. Web. 1 Mar. 2016. [10] Wi-fi,. "Wi-Fi Direct". N.p., 2016. Web. 1 Mar. 2016.

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