OSIA Portal Business Model Version 2.0

Transcription

1 Communication System Design Project 2009 Fall OSIA Portal Business Model Version 2.0 Prepared by Xin Guo 2009/11/02 Teaching Team Principal: Dan Kopparhed Coach: Raul Jimenez Champion: Björn Pehrson

2 Content of Table Document History Introduction Delivery Model Product and Service OSIA content distribution management system OSIA service package OSIA platform and website Open Source Community Market Segmentation Value Proposition Value Chain Revenue Model Timeline of Business Model Dual-License Business Model Revenue Streams Reference Business Model V2.0

3 Document History Version Date Charged Content Version Initial Version Version Final Version 3 Business Model V2.0

4 1.Introduction Interactive digital service is becoming popular and essential in communication and information transmission. Many new interactive digital services came out such as IP-TV, VOD and Youtube. Service provider can easily share their legal resources and update them whenever they want. Service providers need a friendly, secure and energetic platform to share their resources, not only for free, but also maybe for commercial usage. But one problem is how to design the best user interfaces (human/machine) particular for use in portal systems and its services, like a widescreen TV, a PC screen or a handheld device. User experience tells us that we must pay special attention to these differences. OSIA (Open Service Interface Architecture) Portal will solve these problems above by providing a more convenient innovative way to enhance the communication between end users and service providers. As an Open Source technology developer, OSIA Portal also will build a new open source community to accelerate the development of OSIA technology in brain storms way. OSIA Portal will be the software or proof-of concept system, which will be able to provide open interfaces for distribution, provisioning and management of digital services. Through the user interface OSIA Portal, end users can directly access the media content offered by service providers and meanwhile accomplish the payment process on the OSIA final software. 2.Delivery Model OSIA AB will establish product and service delivery model according three business units following: OSIA platform (website) will establish its own website to distribute free media content for social radio and free online video service Content distribution management software: Based on OSIA open source technology, service providers also can obtain separated software, which can be applied on their own servers and websites Service package including training, consultancy, technical support and maintenance services involved in entire product package. 4 Business Model V2.0

5 2.1 Product and Service Figure 2.1 Service Delivery Model OSIA content distribution management system The final product of OSIA will be performed as an integrated content distribution management system based on core open codes from OSIA. The final system will be compatible with PC, set-top box, and even mobile phone. Through OSIA system users can access various media content provided by different media content providers, who are offering such as online film service and music video on demand. OSIA Software can be downloaded by service providers to manage their content and deliver to customers and users they are trying to reach through their website. The system will be operated under dual-license model, which means that anyone involved in OSIA open source community can use and develop the software freely under open source license (AGPL-based) on one hand; on the other hand, industrial companies, who are willing to develop their own software as their commercial product or business product package based on OSIA core code, could buy commercial permit from OSIA. 5 Business Model V2.0

6 Potential customers of the software will be content provider like following: New media companies need to distribute huge number of media files on their website, online-tv, online games, online-music, online-radio, etc. Media production company : Bond Street film,bonnier,nordic Film These companies need to put a series of their product to promote on their website. Educational organizations and university to give online video lectures Customer to Customer platform to share video in community (Youtube, MySpace etc.) OSIA service package Besides OSIA software, the company will also provide additional services including training, consultancy, technical support and maintenance services involved in entire product package. These additional services can be divided into three main service packages according to different needs from different customers. First one is development service package, which mainly includes graphical customizing, functional customizing, and configuration management. This package will help small-sized companies who do not have strong technical capability figure out integrated solution based on free codes. Second package named project service package, which involves training, consultancy and software integration, is suitable for large-scaled companies with numbers of professional technical engineers and software developers. The final service package can be served for all customers, which provides hosting of application, technical support in terms of phone support, online support, 24 hours physical support, and software updating. Figure 2.2 Service Package 6 Business Model V2.0

7 2.1.3 OSIA platform and website OSIA Platform (See Figure 2.2) is one of example frame based on OSIA technology. It will be operated by OSIA AB directly as its homepage as well as an open content distribute for small-sized service providers,who don t have enough capital to finance content distribution. To overcome the finance problems and earn more profit when providing open source solution, OSIA website will also play as a new communication platform and media information exchanging platform. Figure 2.3 OSIA Platform 2.2 Open Source Community OSIA is a web-based platform to provide content distribution solutions, which contributes to build the community to involve more service providers, users and developers. The project OSIA Portal is still on the research and development stage, the final product is still in the process of development and improvement. However, OSIA Portal still boasts abundant market potential since the integrated technology of OSIA Portal is born on the internet. The market shares of OSIA Portal will cover any regions around the world. The brand awareness of OSIA Portal will be pushed up to an international and global level. The value chain of OSIA Portal network will establish between providers, brokers, users and OSIA Portal Company (see Figure 2.4). 7 Business Model V2.0

8 Figure 2.4 Community of OSIA Portal In the whole community OSIA Portal is trying to establish, the end users will be individual or organization clients who will use the portal by simply downloading the partial codes (software) for free. The quantity of end users is key index to evaluate the total value of the OSIA Portal.. 8 Business Model V2.0

9 3.Market Segmentation Target customer of OSIA will be local content service provider like new media service providers in Sweden even Europe market. On one hand, the service providers, who are providing online VOD (Video on Demand) service including films, music videos and TV programs, will be the target customers of OSIA platform. On the other hand, OSIA platform can be used on the websites of television stations as an internet distribution platform, or used in other media production company as a demonstration platform. According to different service customer provide, different service providers with different needs can be sorted into five segments following: Online VOD, Digital TV, Web TV, IPTV and Mobile TV providers. Figure 3.1 Content Service Provider Segmentation Figure 3.1 demonstrates five main segments, which serve different types of media content separately. In all five segments, online VOD service providers which will be targeted. Digital TV service providers, who served via set-top box, will be exactly potential as well. 9 Business Model V2.0

10 4.Value Proposition Compared to traditional software, open source software is concentrate on creating more value in terms of integrated solution which combines product bundling and extension in meeting customer needs. Formulating specific value proposition could be a strong strategy to differentiate from competitors as well as attract more valuable customers. For the service providers, the value proposition of OSIA platform will be formulated like this: OSIA AB will offer you the best distribution solution with our superexcellent service in package. You will improve your business in terms of cost-reduction and time-efficiency via OSIA content distribution solutions. 5. Value Chain Figure 5.1 Value Chain of OSIA Portal in Community The value chain of OSIA will established between OSIA company, service providers and end users. The OSIA platform and software will benefit payment providers and content providers. For example, payment service providers will charge money from users for 10 Business Model V2.0

11 service providers, based on the micro-payment solution OSIA supports. The payment, which seems more convenient for users, will be finished quickly before service. The set of integrated service system will increase satisfaction rate of customers, which will also attract and retain more users for providers. 6. Revenue Model 6.1 Timeline of Business Model Figure 6.1 Timeline of business model Open source business now is undergoing various tribulations in economical crisis environment. Hence, combination of open source development and commercialization will guarantee open source industry s survival. Open source software companies need to think about more about the future constant development. On one hand, they should try to keep the open concept in development perspective in community. On the other hand, they also need to try to establish a mature commercial package system to create more value for specific customers. Figure 6.1 suggests one typical timeline of business model applied in the open source product for OSIA s development in the future. In the beginning, OSIA AB will focus on building an open source community. In this stage, we will try to involve more users and open content providers into our community. When the number of users achieves a certain level and also service providers start to demand more services, we will start to charge for customized improvements and technical supports. Then we will expand our service follow this stairs. When we have stabile users and providers basis, we will plan to make open source commercialized. That's the aim that many open source software company like My SQL are also trying to achieve. 11 Business Model V2.0

12 However, commercial version of the product will produce many conflicts between open source license and commercialization, maybe we should buy some open source license, since OSIA is born in open source.hence, to figure out which open source license would be used in future model will become also a key thing we need to consider during this business model scenario. 6.2 Dual-License Business Model Figure 6.2 Dual-license Business Model of OSIA Portal Revenue model of OSIA Portal will be established based on dual-license business model which is containing open source license and commercial license. For the participants who obey AGPL license can benefit from open code of OSIA Portal respecting precondition defined based on the open concept. However, in the context of commercial license, those companies who intend to develop commercial products based on the open codes of OSIA Portal or need to keep the privacy of improved code should negotiate with OSIA to purchase the rights of use. Revenue streams of OSIA Portal will mainly come from these companies or other organizations. 12 Business Model V2.0

13 Reverting to open source business model, besides dual-license business model, additional services, such as technical support and training, will also be adding in the entire business model that OSIA Portal is trying to achieve in the future. 7.3 Revenue Streams Based on Dual-license model, main revenue stream of OSIA will come from service package provided to service providers or other parties who needs more additional service within produce package in community. The other revenue stream will be obtained from those companies who are willing to develop software based on OSIA but they prefer to keep closed right away from the public under the commercial license. Figure 6.3 Revenue Model 13 Business Model V2.0

14 Reference [1] Steven Weber. The Success of Open Source Harvard University Press [2] Fabrizio Capobianco.My Honest Dual Licensing. /blog/capo/2006/07/ honest-dual-licensing.html. Last Visited on Sep.18 [3]Eric Uiardot. Successful Marketing Strategy for High-Tech Firms Artech House London [4]Jakki Mohr. Marketing of High-Technology Products and Innovations Prentice Hall New Jersey [5] Alexander Osterwalder. Business Model Manual-How to Describe and Improve your Business Model to Compete Better. last accessed May 20,2009 [6] Koen Vandenbempt,Patrick Dunne.The European Venture Capital and Private Equity Association s (EVCA)Module 2-A LOOK AT THE BUSINESS PLAN Business Model V2.0