Review of the cover story of Business World, 2014

1. An analysis
By- Smita, Subhashish, Tanika, Varun and
Hridya.

2. Types of App Developers
1. Enterprise app developers
• Develop apps for various aspects of running a business.
• $100 million business
2. Gaming app developers
• Create a free basic and a paid version of app
• On android platform, either tie up with ad networks or do
advertising
• Create apps for companies to engage customers
3. Advertising app developers
• Full service to clients and customer engagement

3. The App Market
• In 2013, 102 billion apps were downloaded across the world
• India accounts for 800 million apps
• This business has low entry barriers and needs relatively low
investment
• Currently 3 lakh SME’s are building apps in India
• Annual mobile ad revenue from apps is about 300 cr in India
• India doesn’t figure in the top 10 countries by ad revenues
from apps

4. Business Models of Apps
1. Time & material Model – Flat dollar rate per hour
2. Scope & Milestone Model – Developer meets a deadline and
charges a flat fee
3. Transaction based Pricing Model – Revenue according to the
number a time customer uses the app
4. Outcome base Model – Developer build the app & takes a
percentage of revenue

5. Model of AdNear
• AdNear ties up with globally popular apps
• The SDK(using GPS) tracks location of the customer
• Leads to bidding for inventory of popular app companies
• Based on customer’s location,AdNear guides brands on
targeted advertising
• AdNear gets Rs5 for each impression by advertiser

6. Apps in Business
• Madura Garments - In 2013,it launched Allen Solly colour lab app
• Ford Motor - Its Eco-sport models will use apps with voice activated
menu
• Mahindra Reva App – Start/Stop the car, Vital stats, alerts on
battery status
• Renault dealers – Customers can view inventory, Request for
service and test drives
• Shopper’s Stop app- See fashion catalogue and select designs
• Mumbai power Dist. Company to check corruption in meter
reading

7. Challenges for app developers
• Application Discovery – Finding the right apps
• Persuasive Descriptions ,Analytics & Testing – The way
developers are allowed to present apps
• Try before you buy – Providing trials to users
• App User Targeting – Target users fro within apps and store
experience
• Integration & Evolution of business models

8. Next Big thing
• Most apps will migrate to Indian languages in next 5 years
• Future lies in building payment gateway and vernacular apps
• Wearable apps like Smart Watches going to flourish in consumer
technology
• Predictive apps to leverage big data and predictive analytics

9. 2015 Apps
• Pregnancy Test App
• Secure Travel App
• National Children’s ID App
• Invisible ID Tag
• Safe-To-Eat App
• The Sky App
• Fake Made App