Name: John Farfan/FlipBooks
Executive Summary
According to (Ozelkan 2017), market variations in the past five years have affected the
capacity for revenue growth in the Global Book Publishing industry. Over this period, a
switch directed to digital technology, specifically electronic books, has brought about a
segment that is defined with fast growth. Challenge is in pricing of e-books, as there
characteristics differ from printed creations and are comparatively new to the publishing
processes. Early adopters, like North America and Europe
according to (Ozelkan
2017), have embraced digital technologies early. The lack of strong growth in a
burgeoning sector is primarily attributed to booms and busts over the period, including a
3.1% revenue increase expected in 2017. Industry growth will hinge upon disposable
incomes and literacy growth over the next five years period. Growing usage of the
internet can create an ease for book sales and the inherent convenience aligned to ebooks will facilitate an expansion in the market. As a result, industry revenue is forecast
to grow an annualised 1.8% over the five years to 2022, reaching $115.5 billion
(Ozelkan 2017). It is unassailable that many creations have popularised due the rapid
technological advancements. The innovation of e-books is one such example of
technological advancements. In the past five years their use has been continuously
increasing and have been filtering towards use in classrooms. A research made by Anon
n.d. found that one in three children in United Kingdom now has his own tablet.
In 1995, the Internet was born. So, too, was Generation Z. Generation Z students fill our
classrooms, campus programs, and residence halls.
Through smartphones, broadband Internet access at home, or an online connection at
school, Generation Z students have had access to more information than any other
generation at their age. Anything they want to know is only a click away.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Table of Contents
2
1. Introduction
3
2.0 Business Concept
4
2.1 Product/Service
4
2.2 Paradigm
5
2.3 Major Industry Trends in E-Book content creation
6
2.3.1. Transition to digital
6
3. Market Analysis
8
3.1.Customer Validation:
8
3.2 Global consumer spending
9
3.3. S. W. O. T. Analysis Global
10
4. Brand Development
14
4.1 Sales and marketing
14
4.2. S. W. O. T. Analysis of Brand
15
5. Operational and technical analysis
18
5.1. Technological needs
18
5.2. Staffing
18
5.3. Timetable
19
6. Financial Analysis
20
6.1.COST STRUCTURE:
20
6.2. REVENUE STREAMS
20
6.3. Market Test
20
6.4 Income and Expenditure Statement First Year
22
6.5. Go to Market:
23
6.6. The Vision
23
References
24
Appendices
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CDEN 6000-Research Methodology for Design Entrepreneurship
1. Introduction
An electronic book is a digital format publication, which has text and images features,
or both, readable on digital tablets, smart phones, computers or other devices Gardiner
etcetera 2010. Occasionally identified as "an electronic version of a printed
book”,Oxford (2018) some e-books are published without a hardcopy equivalent. Ebooks are commonly designed to be read on e-reader devices. E-books are literary
works in another format from the textbook, according to Merriam Webster it is a book
composed in or converted to digital format for display on a computer screen or handheld
device. The marked period that physical textbooks have enjoyed in the education and
learning seems to be approaching its end. The emergence of e-books in learning
process, seems to be best suited for today’s classroom and learners alike. E-readers
have posed the opportunity to set free learners from having the need to carry around
loads of pages every term. With a cadre of digital readers there lies the opportunity to
stymie the era crammed book bags of textbooks with a handy, lightweight tool with
every book required for the academic year. An approach
that can be used is that
students bring their own devices to school(b.y.o.d.)(Anon n.d.). Given these contexts, it
is practical to let E-books be replacements for physical textbooks. The features that are
characteristic of e-books provides an increase benefits that cannot be offered in printed
books. Devices such as tablets, smartphones and other e-reader have an ability
to
store several textbooks or e-books, increasing student engagement and creativity, whilst
lowering environmental impact through reduced printing and are cheaper than print
books (Procon.org, 2014). Further to which, printed textbooks impact the backs of
children negatively . It is reported that more than 13,700 US children, aged 5-18, were
treated for backpack injuries for the school year 2011-2012 (MedlinePlus., 2012).
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CDEN 6000-Research Methodology for Design Entrepreneurship
2.0 Business Concept
Flip Books is an educational publishing, and media company. The company seeks to
publish and distribute, education books, school textbooks, children’s books and be the
lead provider of educational technology products and services, and offers associated
media. The company will operate in Trinidad and Tobago. Flip Books is headquartered
in Port of Spain, Trinidad and
would employ about 5-10 highly technological and
creative personnel. The content of the e-books will be primarily interactive in nature with
embedded videos, photos and hyperlinks. E-books from Flip Books will be different as
its content will accommodate different learning styles.Howard Gardner of Harvard has
identified seven distinct intelligences. Based on Howard Gardner’s theory of multiple
intelligences it "documents the extent to which students possess different kinds of minds
and therefore learn, remember, perform, and understand in different ways," according to
Gardner (1991). This will inform Flip Books approach to content creation for e-books.
2.1 Product/Service
Flip Books e-book platform offers an interactive component that is available on both
computer and iPad. Once a book is purchased, many students can log in at the same
time. Students will enjoy reading books on the iPad. Users can search for a book by
topic, title, and author or by scrolling though options. Once a book is found, students
can configure the reading speed, watch highlighted words, and turn off the sound to
practice reading on their own. After reading, students can play a game or take a quiz for
comprehension. Flip Books Interactive Books Will be helpful for students who are
learning to read or struggling to read on their own. If a school is looking to add
interactive e-books, especially for struggling readers, this product would be a good start.
Flip Books places content into a captivating, fashioned experience designed to bolster
engagement with end users.
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CDEN 6000-Research Methodology for Design Entrepreneurship
2.2 Paradigm
A New Paradigm for Pricing Digital Content
A series of tectonic shifts has occurred in the publishing industry over recent years, with
intense focus on digital content and products according to (Ozelkan 2017). Reports on
the Global Publishing Industry by (Ozelkan 2017)”These movements continue to have a
significant impact, ensuring a need for the industry to continue to adapt to meet these
changes. One of the primary outcomes for publishers has been a move from the very
traditional print-based system of publishing toward embracing digital content, eBooks,
and the variety of other options that digital opens the door to. The publishing process,
therefore, adapts along with it, as digital development is a far more fluid beast, and does
not necessarily sit neatly within the phases of production in the same way that print
does”.
If an approach to outsourcing workflow is adopted in the publishing industry, therefore
disruption would surely take place. Inherent in this revolutionary approach, pricing
models would experience drastic changes in the supplying of services. Considering
these shakes ups, an examination of the present and future models for pricing in the
provision of services to the publishing industry must take place to determine the way
forward. Thus, examining two different paradigms, publishing via traditional/print method
and via digital content.
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CDEN 6000-Research Methodology for Design Entrepreneurship
2.3 Major Industry Trends in E-Book content creation
According of (Ozelkan 2017) the traditional model in publishing involves charging on a
unit basis centred on labour, and in publishing, this comes down to a price per page
cost. Therefore, there is a cost associated with each member of the production line
working on a page-by-page basis. This approach to pricing was bore little complications
and is viewed as an effective way to determine work as printing and publishing
produced a physical result in the form of a book. With shift from the customary
approach to publishing in page format to one that has diverse content offerings begs the
question is there potentially improved procedure to measure the work created or the
time and effort involved?
“Publishers no longer want to produce just a physical copy of the book, in either
paperback or hard back. They now require a multitude of formats, including a print and
web PDF, a POD file, as well as an EPUB file, an enhanced eBook and XML/XHTML”
according to (Ozelkan 2017)
2.3.1. Transition to digital
Ultimately, the industry has been at the mercy of changing technologies over the past
few years and will likely continue its transformation and adaptation in the outlook period.
The e-book market is growing at a rapid pace, particularly in developed economies
where consumers are quickly adopting mobile devices like smartphones, tablets and ereaders. Sales of these devices are expected to pick up as disposable income rises and
companies offer lower prices, more content and better distribution. With the growing
number of reading-capable devices, book publishers are capitalising on new revenue
streams. Accompanying these new revenue streams is increasing demand for higher-
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CDEN 6000-Research Methodology for Design Entrepreneurship
skilled employees, which is expected to contribute to a 2.1% annualised increase in
wages over the five years to 2022, which will reach $14.9 billion.
Growth in the e-book sector provides opportunities to publishers, whilst also raising their
risks. Growth in the e-book market is expected to reduce the size of book print runs,
thus raising printing costs due to downward pressure on prices for physical books. As ebooks gain a larger share of the book market, e-reader and online shopping platform
owners, such as Amazon and Apple, will gain greater power in their negotiations with
publishers. Amazon, iTunes and similar businesses are expected to expand their
already well-established supply roles while developing adjoining publishing businesses
through organic growth and acquisitions.
New media content, including news sites and video streaming, may adversely affect
demand for some types of books. In many markets, increasing telecommunication
bandwidth and demand for faster access to information and news are spurring the
global adoption of the internet as the primary delivery platform for information. In
particular, printed books in the legal, regulatory, finance and science industries can
quickly become obsolete. Many professional publications are turning toward e-books
and electronically accessed information. Therefore, innovation to provide relevant
content is shifting publications online in these markets but is endemic to the entire
industry.
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CDEN 6000-Research Methodology for Design Entrepreneurship
3. Market Analysis
3.1.Customer Validation:
A study conducted by Rockinson-Szapkiw, Holder, & Dunn (2011) compared the
motivation of students for a number of learning tasks when using E-books in
comparison with paper books. The authors found a significant difference in motivation
between groups. The students with E-books has a significant higher motivation to study
the instructional material as the other group. Education experts in the US were
convinced that the use of E-books and tablets over paper books is a better alternative.
As a consequence, they submitted to the US Secretary of Education a recommendation
on the adoption of E-books or tablets to replace paper books. For they believe that an
interactive education and an up to date content are the key in improving the quality of
education all across America (Federal Communications Commissions, 2012). The
current generation “Generation Z” students are observers. They like to watch others
complete tasks before applying the learning themselves. One student said, “To learn
something, I prefer watching someone do it correctly, then make an attempt to do just
the same.” This approach is reflected in Generation Z students’ affinity for seeking
information through video. As one student described: “If I don't understand something or
if I need to watch something to help me … I'll look it up on YouTube.” You might see a
Generation Z student watching someone make lasagna in a video rather than reading a
recipe posted online. A student in our study illustrates their desire to learn through video
content, saying, “I am exposed to many videos that allow me to learn a variety of things
… from strength training to how to make food and so on.”
Generation Z students also want to know that the concepts they are learning have
broader applicability to more than just a practice example. One student discussed the
importance of being “able to apply [learning] in a variety of everyday life settings,” and
another shared about “grasping concepts and applying them to other
problems.” (Seemiller and Grace, 2017)
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CDEN 6000-Research Methodology for Design Entrepreneurship
Market Research 700 students: see Appendix A
1. 81.3% feel comfortable learning with e-textbooks and tablets
2. 69.8% believe it will accelerate their learning process
3. 75.2% believe it will keep them engaged and more interested in the subject
matter
4. 68.2% believe that given the cost to implement, it is a worthwhile venture which
will benefit them as students and improve the quality of education in Trinidad and
Tobago
Market Research 150 parents and teachers: see Appendix B
1. 91.9% of parents and teacher believe that students should utilise technology in
the classroom to enhance their educational experience.
3.2 Global consumer spending
Consumers willingness to spend on books or any nature is dependant on their ability to
afford optional items of entertainment. There is an expectation of an increase in
spending for the periods 2017 and 2018, constituting a potential opportunity for the
publishing industry.
Primary school completion rate represents the percentage of students around the world
who finish primary school; it also represents global literacy and educational attainment.
Primary school is often the place where most people learn to read and acquire books to
aid in learning. As literacy rates increase globally, the potential market for industry
products increases with it. Furthermore, completing primary education boosts people's
chances of furthering their education, and reading is correlated positively with
educational attainment.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Global internet usage
The internet offers another retail platform for books (e.g. books ordered on the internet
and e-books) and enables sales to markets in which consumers historically had few
reading options. As access to internet increases, global internet usage increases as
well, making it a proxy for access to industry products. In 2017 and 2018, global internet
usage is expected to increase, representing a potential opportunity for the industry.
3.3. S. W. O. T. Analysis Global
Global number of adults aged 65 and older THREATS
This is a measure of the number of adults aged 65 and older. In developing economies,
many of the older generations are not as literate as the younger generations.
Furthermore, they are more likely to be less technologically savvy. Therefore, they are
less likely to purchase industry products. As this segment of the population increases,
industry revenue will decline. The number of adults aged 65 and older worldwide is
expected to increase in the periods 2017 and 2018, posing a potential threat to the
industry.
Global number of people aged 15 to 34 OPPORTUNITY
This is a measure of the number of people aged 15 to 34 worldwide. Since there is a
large generational difference in literacy rates and internet proficiency in emerging
economies, young adults represent a large segment of the book publishing industry's
key consumers. Therefore, when there is an increase in the number of people aged 15
to 34, industry revenue should respond favourably in turn. The number of people aged
15 to 34 worldwide is expected to increase in 2017.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Current Performance
Increasing literacy and consumer spending in newly industrialised countries are
bolstering revenue in the Global Book Publishing industry. Conversely, a slowdown in
disposable income growth in developed economies like the United States and the
United Kingdom has dampened book publishers' success in established, and therefore
saturated, markets. Heightened competition from alternative forms of entertainment,
namely online, is continuing to draw revenue away from the industry. As a result,
revenue is estimated to stagnate, increasing at a slow annualised rate of 0.3% reaching
$105.5 billion over the five years to 2017 including a 3.1% increase in 2017 alone. IBIS
World (2018)
The increasing availability of e-books and the rising convenience of shopping for books
(print and digital) online is helping support industry revenue in 2017, but growing market
acceptance is expected to lessen the revenue boost of the transition in developed
economies. The growing popularity of e-books also help balance rising process costs,
such as the increasing price of wood pulp, by reducing the amount of paper the industry
consumes. Resulting, in increased profit margins since 2012, from 9.0% to 11.0% in
2017.
Restructuring and development
(Ozelkan 2017) states a paradigm shift toward lower-cost e-books has enabled some
small publishers to enter the industry and thrive, whilst other small publishers have
come under pressure in some markets because of the capital and human investments
required to transition to digital publishing. Many publishers are increasingly specialising
in either educational or professional materials and strictly consumer fiction or nonfiction
products.
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CDEN 6000-Research Methodology for Design Entrepreneurship
In mature markets, like North America and parts of Europe, consolidation has become
commonplace in the face of declining revenue, particularly among major players in the
industry. In these markets, the sale of e-books has slowed with the full acceptance of
the digital format in the publishing process. For industrialising countries, the growth of
literacy and disposable income has created a new target demographic, attracting new
companies and bigger multinationals. Over the five years to 2017, the number of
publishers in the Global Book Publishing industry is expected to increase an annualised
1.7% to 64,411 enterprises. With the growth of companies in the industry, employment
has also risen to 392,120 people in 2017, representing an annualised growth of a more
subdued 0.9% over the five-year period.
New markets sustain revenue
According to a UNESCO study, a large and relatively stable demand for textbooks helps
to develop a reading culture, and can also provide the financial underpinning for a
broader publishing industry. I
Governments of Jamaica and Barbados and many advanced countries seek to better
educational outcomes for their citizenry, promoting government spending on
various
educational products. Placing demands of these educational products. However,
weaker government fiscal positions, in some cases, have negatively affected
government spending on education. In contrast, falling unemployment has resulted in
more people continuing their studies through professional development, which has
benefited operators that specialise in standards and protocol information. These
publishers are developing digital and interactive content to reduce their dependence on
printed materials, improve educational products and expand their bottom line.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Technological shift
Ultimately, at the forefront of this evolving industry is the transformation that is taking
place, placing an emphasis on digital platforms rather than physical books. E-books are
a small but steadily growing part of the book publishing market. IBISWorld estimates
that e-books account for 17.8% of industry revenue in 2017 and has been on the rise
over the current period. According to the 2016 Global E-book report by the Publishers'
Forum Berlin, the market share of e-books in Germany increased 174.0% from 2011 to
2012 but only 4.7% from 2014 to 2015. Meanwhile, a similar pattern emerged in the
United Kingdom, which experienced a 65.6% jump in market share in 2011 to 2012 then
only an 11.0% growth in 2013 to 2014.
E-books during their initial acceptance phase clearly drove market acceptance but the
trend since has been characterised by growth, of a less dramatic nature than the initial
surge. The release of new e-readers and tablets has supported e-book sales in many
countries because the devices make books more convenient to buy and transport.
Retail channels for books are also changing. Internet based companies or e-sellers/
retailers that sell books, such as Amazon, have experienced rapid growth, at the
expense of brick and mortar bookstores. Not only do online stores provide convenience
and a wide array of book offerings and price comparison, but the number of traditional
bookstore locations is also dwindling, which further boosts the relative benefits of
shopping for books online. Large bookstore operators, such as Barnes & Noble, have
secured publishing and distribution rights to books to help vary their current revenue
streams.
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CDEN 6000-Research Methodology for Design Entrepreneurship
4. Brand Development
Flip Books is an educational publishing, and media company. The company seeks to
publish and distribute, education books, school textbooks, children’s books and be the
lead provider of educational technology products and services, and offers associated
media. The company will operate in Trinidad and Tobago. Flip Books is the current
‘working title’ for the brand, which shall be reviewed and other options explored. The
necessary legal steps will be taken to verify availability of the chosen name. The brand’s
hierarchy may be represented as follows:
Book Title
From Flip Books
Published in partnership with a XXX (Current Publishing House)
4.1 Sales and marketing
Flip Books e-book platform offers an interactive component that is available on both
computer and iPad. Making interactive e-books is not sufficient in ensuring that e-books
and their content will find audiences searching for them. Works would be tailored to
meet the demands of institutions with a view of discoverability and ease of use.
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CDEN 6000-Research Methodology for Design Entrepreneurship
4.2. S. W. O. T. Analysis of Brand
Strength
Unlike other publishing companies, which have imprints covering all genres, the
company will maintain be focused on children's books and educational books. This can
be a competitive advantage for the company as children and educational books
burgeoning industry that are adapting to digital disruption much better than the rest of
the industry.
Broad portfolio of offerings
The company intends to have a broad portfolio of offerings. The company's children's
book publishing and distribution segment will be engaged in the publication and
distribution of children's books in Trinidad and Tobago through school-based book clubs,
book fairs, e-commerce and the trade channel. The company's hopes to develop an
international segment that will publish and distribute products outside Trinidad and
Tobago, namely english speaking Caribbean. The educational technology and services
segment will develop technology-based instructional materials and seek to distribute
them directly to schools in Trinidad and Tobago. Its operations will be focused on
reading and math improvement programs in it's early stages and other educational
technology products, as well as consulting and professional development services.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Weaknesses
Heavy dependence on theTrinidad and Tobago Education market
Flip books major market will be focused on school textbooks in Trinidad and Tobago for
the majority of its revenues. This makes it vulnerable to Government policies and
Ministry of Education Curriculum and recommend texts as per subject. Trinidad and
Tobago makes the company vulnerable to region specific problems. The company's
high dependence on the Trinidad and Tobago market makes its operations vulnerable to
fluctuations in the economy. In addition, limited international presence will deprive the
company from opportunities existing in other geographies.
Opportunities
Strong outlook for the global eBook market
The global e-book market is expected to grow in the coming years. According to
industry estimates, the global eBook sales are estimated to grow at a CAGR of 15%
during 2014-17 to reach a value of 22 billion in 2017, which is expected to be larger
than the printed book market. The growth in the eBook market is primarily attributed to
the launch of new devices and bookstore applications, such as Apple's iBookStore and
Amazon's Kindle. Furthermore, the significant growth in tablets and smartphones has
boosted the consumer demand for eBooks (Sage Pub. 2017). Flip Books is hoping to
focus on catering to the demand for eBooks. Flip Books' significant focus on the eBook
market coupled with robust eBook market outlook, positions it to benefit from the
projected growth in the medium and long term.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Threats
Intense competition
The markets for children's education, educational technology and entertainment
materials are highly competitive (Prezi 2015). Competition is based on the quality and
range of materials made available, price, promotion and customer service, as well as
the nature of the distribution channels. Flip Books will be competing with large
organisations such as Mohammeds, Charrans, and Royards.
The company also faces competition from several books, e-books, text books, libraries,
reference material and supplementary text publishers, distributors and other resellers
(including over the internet) of children's books and other educational materials. It also
competes with national publishers of classroom and professional magazines with
substantial circulation; numerous producers of television and film programming (many of
which are substantially larger than the company); television and cable networks;
publishers of computer software and interactive products; and distributors of products
and services on the internet.The company's educational technology and services and
educational publishing businesses could be adversely affected by budgetary restraints
and other changes in government educational funding as a result of new legislation or
regulatory actions, as well as changes in the procurement process, to which the
company may be unable to adapt successfully. In addition, there are many competing
demands for educational funds, and there are no guarantee that the company will be
successful in obtaining sales of its products from any available funding.
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CDEN 6000-Research Methodology for Design Entrepreneurship
5. Operational and technical analysis
5.1. Technological needs
E-Book Content Server that can be built on a phase by phase basis. This is as content
distribution increases, the platform will be expanded to facilitate such. The use of Open
Source software, that is software that is already coded can be tailored to fit Flip Books
Technological needs.
5.2. Staffing
Flip Books staff would be made up of industry experts in Education, Marketing and
Sales, E-Learning, Programming and Design and Web Development.
Melissa Farfan, Director of Sales and Marketing, with over ten years in sales and
marketing with an MBA from Australian Institute of Business
John Farfan, Programme Coordinator, this is a critical and substantive role, supporting
the editorial work of Flip Books. Possesses over ten years experience in Education and
website creation with a Post Graduate Diploma in Education from University of west
Indies.
Irving Whitehall, Programmer/Web Developer, with over eighteen years experience in
programming and insight into E-Learning.
Andrew Nicome, Network Analyst, with over twenty years in networking and cloud
based expert. with an MBA form Arthur Lok Jack Graduate School of Business.
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CDEN 6000-Research Methodology for Design Entrepreneurship
Full Circle Animation Studio, industry experts in animation with over twenty-five years
experience. Full Circle Animation Studio will oversee interactive content embedded in
Flip books e-books.
5.3. Timetable
Flip Books will seek to set negotiate a period of 5 year commitment from institutions that
are early adopters. Proposed activities for duration of five years.
Year One
Appoint an Oversight Committee and Editorial Board. Engage in consultation and
research to develop a prospectus that will meet the objectives of Flip Books. Exploring a
variety of educational publications to develop the Flip Book brand.
Year Two
Website launched and ongoing review of progress, with an anticipation of publishing 4
e-books t2 for primary and 2 for secondary schools.
Year Three
It is anticipated that 8 publications will be produced, of which 4 will be for secondary and
4 will be for primary schools. Each book will encompass industry standard digital
innovations.
Year Four
Will aim to publish 12 e-books, of which two will be children’s fiction for 5-7 year olds.
The others will be for primary and secondary education.
Year Five
A critical milestone of the fifth year in which e-books would be integrated in educational
system of Trinidad and Tobago. The Oversight Committee will meet and undertake an
assessment of Flip Books impact, success and future directions.
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CDEN 6000-Research Methodology for Design Entrepreneurship
6. Financial Analysis
6.1.COST STRUCTURE:
1. Create the Platform-$40,000 TTD
2. Legal Fees-Intellectual Property-$8,000 TTD
3. Educational Content-$80,000 TTD
6.2. REVENUE STREAMS
1. Subscription from Parents $10 per year (attached to a student identification)
2. Subscription from Schools
3. 20% of Cost Price of each downloaded E-book
6.3. Market Test
Secondary School Education
CSEC Secondary School Students in 5 Secondary Schools
200 students per school, students-Bring Your Own Device (BYOD)
2 books per student tested
Cost Price in store-$200 per book
Cost Price E-download $180 (10% markdown)
Flip Books Revenue Percentage 20% =$36 per book
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CDEN 6000-Research Methodology for Design Entrepreneurship
Revenue for Flip Books $36 per book x 2 books per student x 200 per 5 educational
districts (1,000) students =$72,000 for secondary school
Revenue for Flip Books $36 per book x 2 books per student x 1000 students =$72,000
Revenue for Publisher $144 per book x 2 books per student x 1000 students =$288,000
5 years Market Potential
50% of market CSEC students-10,000 students-BYOD
6 books per student tested
Revenue for Teach Ed $36 per book x 6 books per student x 10,000 students
=$2,160,000
5 years Market Potential
50% of market CSEC students-10,000 students-BYOD
Primary School Education
Primary School Students in 10 Primary Schools
100 students per school, students-Bring Your Own Device (BYOD)
2 books per student tested
Cost Price in store-$75 per book
Cost Price E-download $67.50 (10% markdown)
Flip Books Revenue Percentage 20% =$13.50 per book
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CDEN 6000-Research Methodology for Design Entrepreneurship
Revenue for Flip Books $13.50 per book x 2 books per student x 100 per 10 educational
districts (1,000) students =$27,000 for secondary school
Revenue for Flip Books $13.50 per book x 2 books per student x 1000
students=$27,000
Revenue for Publisher $54 per book x 2 books per student x 1000 students =$108,000
5 years Market Potential
50% of market Primary School students-10,000 students-BYOD
6 books per student tested
Revenue for Teach Ed $13.50 per book x 6 books per student x 10,000 students
=$810,000
6.4 Income and Expenditure Statement First Year
Revenue
$
$
Revenue from ebook Sales
99,000
Revenue from subscription per year parents (2,000@$25)
50,000
Digital Workspaces Yearly Subscription Schools($50/student a year)
100,000
Total Revenue
249,000
Less Expenses
Create the Platform/Workspaces
40,000
Legal Fees-Intellectual Property
8,000
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CDEN 6000-Research Methodology for Design Entrepreneurship
Educational Content
80,000
Sales and Marketing
50,000
Research and Development
100,000
General and Administrative
60,000
Earnings Before Interest and Taxes (EBIT)
(338,000)
(89,000)
6.5. Go to Market:
Proposal to the Ministry of Education
Dialogue with Publishers to Digitise and enhance Content
Present Schools with the Platform, through endorsement from the Ministry
Continued teacher training for technology in the classroom
Market product to Parents and Students through Mandate from the Ministry
6.6. The Vision
1. Expand throughout the Caribbean and other Markets
2. Virtual Classrooms, Homework Centres
3. Critical skill-building and other educational games
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References
Indiviglo,David (2012) Will E_Books Replace Physical College Textbooks[online]
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Anon, (n.d.). Tablets and E-books: Taking Over Schools - A-all Web Wire. [online]
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Appendices
Appendix A
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Appendix B
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