The Interactive Book-Business Plan copy

The Interactive AR (Augmented Reality) Book Business Plan

Problem Description ............................................................................................................................. 3 Product and Service Description........................................................................................................... 3 Business Model..................................................................................................................................... 5 Market Description ............................................................................................................................... 6 Market Size/ Growth......................................................................................................................... 6 Market Segmentation ........................................................................................................................ 7 Market Needs .................................................................................................................................... 8 Market Trends................................................................................................................................... 8 Industry Analysis .................................................................................................................................. 8 Main Competitors ................................................................................................................................. 9 Go to Market Strategy......................................................................................................................... 10 Marketing Programs............................................................................................................................ 10 Strategic Alliances .............................................................................................................................. 11 Porter Five Forces ............................................................................................................................... 11 • Bargaining Power of Customers ......................................................................................... 11 • Bargaining Power of Suppliers ........................................................................................... 11 • Threat of New Entrants....................................................................................................... 11 • Competitors......................................................................................................................... 11 • Threat of Substitute............................................................................................................. 11 Milestones ........................................................................................................................................... 13 Pricing Strategy................................................................................................................................... 13 Promotion Strategy ............................................................................................................................. 13 Company Summary ............................................................................................................................ 14 Vision.................................................................................................................................................. 14 Mission................................................................................................................................................ 14 Objectives ........................................................................................................................................... 14 Meet the Team .................................................................................................................................... 15 Personnel Table................................................................................................................................... 16 Financial Plan...................................................................................................................................... 16 Sales Forecast Assumption ............................................................................................................. 16 Start-up funding .............................................................................................................................. 16 Income Statement................................................................................................................................ 17

Problem Description Today’s generation is feeling bored during the class, they don’t find relation between what they are learning and their world problems. They feel disengaged Product and Service Description The interactive book is a Mobile/ Cloud based application that displays AR content associated with markers from books, adding extra information like 3D Models, short biography of a person, some facts about various kinds of stuff, historical events or visual models of math concepts. This may give students wider understanding about the topic, entrap their attention as well as motivate them to study. Students, who had downloaded the application for free, can interact with the content of the selected augmented books as long as the publishers are subscribed. Book Publishers can add fun and interactivity to their books through our web site (arlibrary.live) by: o buying Interactive Augmented Content (Gig) from our growing library. o Requesting customization o Sending the marker picture o They will have the content available on our interactive book app for every user who directs the camera to the picture

If they didn’t find what they are looking for, they can request the production of that Interactive Content by contacting us. AR books provide deeper understanding of complex content. It also helps make learning process brighter and more engaging.

Business Model With “The interactive book” platform publishers can provide augmented content without building an application - save the application development cost and maintenance. They can browse our Library of ideas. We pushed the industry of 3D modeling into providing augmented content with interactions Additional Detail: Content Library & Services/Subscription Business Model Key Partners Key Activities Value Proposition Customer Customer Image • Sales & Relationships Segments Recognition Marketing enhance your published • Support Platforms: • Social • Publishers/ • Library books with interactive Wikitude.com Marketing Editors Development & augmented content Maintenance • Responding to Teaching Gig requests Community Channels Key Resources • AR App • Direct Sales to • AR Library Publishers • Developers • Online Ads Cost Structure Revenue Streams • Fixed cost of developers, Administrative cost • Selling AR/VR Content (hosting) • Customer acquisition cost (online ads), Sales & Marketing Cost Alternative: E-Commerce Business Model Key Partners Key Activities Value Proposition Customer Customer Unity Developers • Sales & Relationships Segments Community Marketing • Social • Platform to publishers: • Publishers/ Maintenance easy to use platform Marketing • Resolving dedicated to educational Editors Teaching augmented content Community Sellers- buyers • Unity to developers: get Developers issues connected with a large

Key Resources community of publishers Channels • Other • Platform industries • AR App • Online Ads with • Developers • Google, Apple educational Stores content: Restaurants, hospitals, Cost Structure Revenue Streams • Fixed cost of developers, Administrative cost (hosting) • Publishers Subscription • Sales & Marketing Cost • e-commerce: % on augmented content Sold future: • Selling AR content through (In-app purchase) Market Description Market Size/ Growth • Total market size of AR/VR Revenue is $40B as of now and is expected to reach $108B by 2020 • AR market is expected to grow from USD 11.14 Billion in 2018 to USD 60.55 Billion by 2023, whereas the VR market is expected to grow from USD 7.90 Billion in 2018 to USD 34.08 Billion by 2023 • AR/VR content and apps market reached $3.2 billion in 2017 • In the education market Global VR is expected to reach USD 1,7 Billion in 2021 (as per Technavio). • Within the MENA region VR is expected to become a billion dollar niche market in the near term, according to international research firm Deloitte; with about $700 million in hardware sales, and the remainder from content ($ 300 Million). By 2020, the market could be worth up to $30 billion, notes Tech advisory firm Digi-Capital. • based on the numbers presented by Digi-Capital, AR is set to be three times as profitable as VR is. Conclusion is that educational market size in the MENA region for AR is currently around $900 Million

Illustration 1: $ 30 Billion VR Market Distribution by 2020 as per Deloitte Market Segmentation There are different types of book publishers:

- Textbook, educational, academic publishers: developing books for schools - professional publishers: developing books geared toward knowledge profession - \"trade\" publishers: those who publish the books typically found in bookstores - Bargain book publishers: those creating low-cost books (calendars, activities books...) We are targeting the Scholarly and education publishers in the MENA region. Market Needs Publishers have the need to distinguish their content and fulfill the market push for digitization. They have a daily pain of selecting the right content that make their books more appealing to teachers and decision makers in schools, knowing that their profit is at 10% of sales price. They tried to do so by providing content on CDs. However only 20% of students reached have used the CD so far and only 16% of teachers have done so. Market Trends In 3 years time the AR Market size is tripling. Industry Analysis We are in the business of providing AR/VR content for the education industry, which puts us in front of an eco-system consisting of: - Publishers providing or looking to provide augmented content of their books (stories, encyclopedia, history) - Schools/Universities and teachers looking for educational apps and content. - Platforms for Educational VR/AR (e-commerce or services) - Companies providing general AR/VR services

Main Competitors Although they might not be all considered as competitors, the picture below shows the main players in the AR/VR Eco-system of education We will also watch closely the below list of competitors to learn from even though they do not operate in the local market and they are not focused on education: Competitor Business Model, Location, Market Segment, Pricing Limitless Lab Services Company located in Beirut providing AR/VR services Edulab.com.lb EduLab helps to create, enhance, distribute, protect and manage digital assets, such as books, magazine, brochures, etc. They provide end-to-end content-related technological solutions and services. VironIT Since 2004 provides full-game and entertainment development services, including 3D modeling, AR/VR and MR apps development. SoftwareHQ Since 2001, They provide full-cycle custom software development with the focus on AR, VR, IoT, and E-learning solutions. Launching about 16 games per year, in their work for AR projects they use Unity, Vuforia, Wikitude, Kudan, and other SDK. 8ninth builds AR and VR products using ARKit, Tango, Vuforia, Unreal Engine and Unity. With only 3 years experience Scanta AR Emojis being a core product aimed to deliver a seamless integration of fun-filled augmented characters in the concept of video making and sharing

Layar From 2009 Dutch, Layar app (iOS/Android) lets users scan magazines, posters etc. and enjoy additional digital content in form of videos or animations. Another feature is Layar Creator – to build AR items, flyers, landing pages by simple drag-n-drop. Augment.com augmented reality (AR) app and platform enables students and teachers to visualize 3D models in the real environment Go to Market Strategy We will market our services and Library through Social Content Marketing. We will develop a plan for each of the buyer’s journey stage: Awareness, Evaluation, Purchase. For the awareness stage we will be posting articles about AR/VR in blogs, Facebook page and other social media platforms. We will also go for paid Ads on google and boost posts on Facebook For the evaluation stage, we will take care of the content on our website to show “why we are different from competitors”, offer white papers for download and e-books For the buying stage we will provide them sample markers to download and print to try the mobile app and feel the end result. Additional Detail Publishers will be promoting the Mobile application through their books, which will grow our students user base. Marketing Programs Our Marketing program consists of : - An Advertising Campaign to drive traffic to our website, increase the number - Social Media Campaign to increase the number of users following our page - Content Marketing Strategy consisting of nurturing leads during their journey to become customers Additional Detail Each marketing program in your Milestones table should appear in this topic, along with relevant details. Details and specifics are critical to implementation. You may also go over them again in the topic related to the Milestones table.

Strategic Alliances We will make strategic alliance with companies having platforms and SDKs for online image recognition: Platform Features Wikitude.com Wikitude SDK is all-in-one augmented reality SDK combines Instant Tracking technology (SLAM),Object Recognition and Tracking, top-notch Image Recognition and Tracking and Geo- location AR for mobile, tablets and smart glasses. The engine covers cross-platform AR experiences • Cloud based Image Recognition • Best suited for apps requiring recognition of more than 1,000 target images • Fast, scalable and reliable ONLINE recognition • Stable image tracking upon recognition Virbela.com A social Virtual Platform for Business and Education Kabaq.com provide simple augmented reality automation to restaurants. We can cooperate to provide this automation to publishers and editors. Edorble.com help teachers and students create, publish, and use social, 3D worlds . The Edorble Creator Sketchfab.com Tools is a plugin built on top of Unity 3D Platform for sharing and selling 3D models, AR/VR ready models with a viewer web-GL and API Porter Five Forces Bargaining Power of Customers Publishers profit in educational books is as low as 10% of book price which makes them price sensitive. Which increases their bargaining power. However when they become customers and have their books augmented through our application, It won’t be easy for them to switch between different companies providing the same service as it would require students to download a new application. Bargaining Power of Suppliers Our suppliers are unity developers, these resources are scarce in Lebanon which increases their bargaining power. To reduce that power, we will tap into the Indian pool of resources. Threat of New Entrants Once we ‘ ve built a good library it will be difficult for new entrants to follow Competitors AR/VR market is very new which makes it open to all kind of specializations. Each competitor is looking after different sectors. Threat of Substitute Publishers can use Digital Content produced on CDs as alternative to our product. They can build their own applications with the help of some IT resources using platforms like Viromedia. Schools and Teachers can use existing Augmented Reality Education Apps below as alternative to buying the

developed by DAQRI studio. Application supports students in exploring fields of chemistry subjects by allowing to combine different elements publishers books to see how they react in reality. To start it, the teacher and students Element 4D should have special triggers on printed cards. Moreover, DAQRI’s website has lessons plans with the usage application which is suitable Anatomy 4D not just for high school, but also for secondary and elementary. Human Heart 3D AugThat Best suitable for medical students’ needs. By scanning printed targets CARE Experience Chemistry application shows 3D model of human body and allows to interact with it. Users may customize any part of human body, look how parts fits, Math Alive how different are joint moves and how function human organs. AR anatomy application with much shorter content base, but much deeper. Students may explore human heart in details. 3D model of heart completed with animation to view how it works, using support of text tips with explanations about heart’s functionality and anatomy. Available on Android. allows using augmented reality in the classroom lessons boost education process. AugThat mainly targets students that shows the lowest motivation. Application helps teachers involve them in fields of augmented reality science education. AugThat obtained different lessons in various formats that include 360° virtual photos and 3D experience. a wide range of lectures, tutorials and lessons completed with AR features to use all materials in education purpose. It’s mainly composed of Science, Technology, Engineering and Math parts. Students may learn from various animated material and use 4D modeling options to visualize some parts of text. Chemical puzzle quest is suitable for students. To progress through levels users should make certain reactions with various ingredients and elements. The main features of that application allow to use for reaction any chemical elements users want to interact with. But meantime they should choose the right one to complete tasks. So, Experience Chemistry helps promote memory of chemical elements and teach them what reactions they may undergo Developed by Alive Studio, Math alive is designed for usage by PreK-3 students. By using AR features the application connects computer, camera and special printed cards in one complex system. Pupils under leading of a teacher place cards under camera and practice in basic numeracy and counting skills

Animal Alphabet AR Flashcards To engage children in learning letters the application uses AR capabilities to scan special cards and bring live animals on them. Application helps pupils to study letters and remember them, as well as sounds that animals make. App on iOS Amazing Space Journey on Android to help study the sky and all secrets that it contains. Each one of them and iOS. includes a pack of unique features, but most of the content is the same, SkyORB 3D on Android and iOS. and serves the same purpose. So despite the app you choose you’ll get mostly the same content. Entering AR mode users may see stars in the Star Walk on Android and iO S. sky even in day-time. Meantime, all important objects such as constellars, planets of the Solar System and major stars. Carlton Books Bring to life our popular range of unique, award-winning Augmented Reality books. As they’re powered by DIGITAL MAGIC(TM), they come to life and leap off the page. The books are woken using a mobile or tablet so you can control, customise, and make the characters lifesize, play with friends and share the amazing experience Milestones Milestones Month1 2 3 4 5 6 Web Site Ready with blog and click to action √ Create facebook page √ Launch paid targeted campaign to drive √ √ traffic to the website (newsletter subscription) √ √ √ √ √ Post weekly articles about AR/VR on √ √ √ facebook, linkedin Write an e-book about AR in education Pricing Strategy Our prices will match those of Royalty-free 3D models provided in platforms like sketchfab. we will use Economy Pricing Strategy, allowing publishers to feel that AR/VR technology is available to them at prices that won’t increase their cost. Each Gig (describing the Model and its interactions) will be priced at 10% of the effort it took to be developed, with average around $200. Promotion Strategy We will use Social Media Promotion Strategy, spreading awareness about the use of AR/VR in education and running contests related to the design of the best augmented reality interaction for a specific topic

Company Summary Founded: December 2016 Employees: 3 Capital Seeking: $150k TIC is a Dubai based company that is into PhyGital solution provider bridging the gap between Physical and Digital worlds through the use of latest multi-touch, projection, hologram, VR/AR and mixed reality technologies Innodev Technologies is an sister company of TIC HQ in Bangalore. With combined expertise in Design Thinking, Agile Development and Customer Development. Employees are skilled technical experts from around the world Vision Disrupting current educational system and Leading Education into Exciting new Directions Mission To initiate, adopt and execute innovative ideas that would enhance students engagement and make education experience a more personalized, effective and enjoyable one. Objectives Our objectives are: • to enhance relationship between the student and the book using AR (Augmented Reality) technology • provide educational alternatives for students using AR/VR (Virtual Reality) technology • allow children to choose what they want to learn, when and how.

Ismail Ouaydah CTO/ Co-Founder-TIC, MD - Innodev Technologies Meet the Team Has more than 20 years of experience in providing IT solutions for Key people: various businesses across multiple sectors, built his expertise over IT Solutions Developments, R & D, Product Management, System Ad- ministration, he gathered business know how of different industries like aviation, hospitals, tourism, education, internet service provid- ers, and more. Tameem ALZOABI CEO/ Co- Founder – TIC +15 years' experience in ICT aviation, global sales and business de- velopment with valuable knowledge in varied operations of lead- ing businesses with more than $20 million turnover A possessor of excellent strategic Sales & Business Development, Change Man- agement. Use Innovative Techniques in the new era of business Ahmad El Kerdi Development Manager/ Co-Founder Certified Trainer in the Arab Trainers League, has more than15 years in IT industry. Senior Developer, with experience in 3D modeling and rendering and Unity3D game engine, he founded Trio Code Studio, a digital entertainment specialized studio.