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MIS5101: Business Intelligence Week 4 – Digital Goods

Today’s Agenda

  Case Discussion

  Recap: Blog Discussion Question

  Reading Discussion

  Case Study Analysis Feedback

  Activity

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?

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?

1-Minute Essay

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

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

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

In-Class Exercise

  See handout

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

P R O F . S T E V E N L . J O H N S O N E M A I L : S T E V E N @ T E M P L E . E D U

T w i t t e r : @ S t e v e n L J o h n s o n http://stevenljohnson.org

http://community.mis.temple.edu/mis5001fall10johnson/

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