iPerceptions - Internet Business Model Analysis
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iPerceptions is an on-demand provider of web attitudinal, web analytics services and research for online marketers and Fortune 500 companies. iPerceptions’ solutions impact two traditional business intelligence practices: 1. Website Analytics and 2. Market and Customer Satisfaction Research. Because iPerceptions’ solutions overlap with many companies in different areas, it is hard to differentiate iPerceptions’ services from others. Each competitor in the web analytics field seeks to differentiate from others by offering a unique approach. Therefore, given the infancy of this industry, there are no true substitutes, but rather, competitors with different approaches.
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iPerceptions - Internet Business Model Analysis
- 3. 1. E-business commitment Pure dot-com No brick and mortar
- 6. 3. Market Performance iPerceptions (IPE)
- 7. 4. Competitors Omniture Inc. (OMTR)
- 8. 4. Competitors Harris Interactive Inc. (HPOL)
- 13. 7. Future Plan Components of business model Old model Prospective changes Positioning Medium = Customer value Medium = Scope Low + Price High * + Revenue High * + Activities High + Implementation High = Capabilities Medium = Sustainability Low + Cost structure Low +
- 14. Questions?
Notas del editor
- In the subscription-based model a company charges a flat rate on a periodic basis (this case a year) that qualifies the user for a certain amount of service. The user pays this subscription fee whether or not the service is actually used. This is analogous to the monthly charge you pay on your telephone bill whether or not you make any telephone calls. In the case of iPerceptions, the company charges a typical annual fee of $60,000 per business division per region (e.g. for Samsung, a $60,000 would buy webValidator for its cell phone division in the United States). It is important to point out that the final decision to implement the suggested changes by iPerceptions is up to the client. Is it working? Yes, check out these facts from the management’s discussion and analysis for the second quarter ended June 30, 2008: iPerceptions added numerous high-profile corporations to its customer portfolio in the second quarter of 2008,such as IDG (13 properties), The Economist, Tractor Supply, Crate and Barrel, and Dolby. iPerceptions renewed annual contracts with high profile clients such as Land Rover USA, BMW/Mini Canada, and Nissan Canada. Q22008 also saw pilot continuations from Videotron, Pottery Barn, Autodesk and BMW North America, as well as custom studies developed for LG Canada, Dell and Samsung. For the second quarter of 2008, the Corporation experienced an important increase in revenues which were$1,132,181 compared with $715,191 for the same period in 2007. The increase represented $416,990 or 58%. Is this enough? As discussed earlier, a weakness of this business model is that it needs to create more incoming cashflows for it to be sustainable. The three ways to seek more cashflows are: 1) expansion into new markets, 2) broadening of customer base, and 3) partnership with complementary products/services. Fortunately, iPerceptions has been able to foresee the necessity for these 3 incremental avenues of income: Expansion into new markets: In April 3, 2008, iPerceptions announced the opening of its London office, allowing the company to enhance its services to clients based in the U.K. and providing a gateway for the rest in Europe. Later on the future, the company could open a similar office in Asia. Currently the business model is focused on large corporate clients. A cool $60,000 is beyond the reach of Average Joe. Therefore, the company is pushing 4Q, a free survey tool that allows website owners and operators of all sizes to easily understand the reasons why visitors are coming to their websites and whether or not they are able to complete their tasks. The company hopes that the 4Q effort will strengthen the iPerceptions brand as the leader in web analytics, grow its user database (especially important for the iPSI), and create more revenue. The creation of free Java script tagging web analytics tools such as the 4Q is intended to create partnerships with complementary services companies such as hosting companies and blogs. iPerceptions is testing the waters for web-hosting package value-add tools for hosting companies. Duringthe second quarter of 2008, iPerceptions focused on integrating such third-party's technology with the 4Q tool. By adding on 4Q as a value-added tool within hosting company interfaces, 4Q will be open to millions of small tomedium business/website owners that may not have otherwise been exposed to the service.
- In the subscription-based model a company charges a flat rate on a periodic basis (this case a year) that qualifies the user for a certain amount of service. The user pays this subscription fee whether or not the service is actually used. This is analogous to the monthly charge you pay on your telephone bill whether or not you make any telephone calls. In the case of iPerceptions, the company charges a typical annual fee of $60,000 per business division per region (e.g. for Samsung, a $60,000 would buy webValidator for its cell phone division in the United States). It is important to point out that the final decision to implement the suggested changes by iPerceptions is up to the client. Is it working? Yes, check out these facts from the management’s discussion and analysis for the second quarter ended June 30, 2008: iPerceptions added numerous high-profile corporations to its customer portfolio in the second quarter of 2008,such as IDG (13 properties), The Economist, Tractor Supply, Crate and Barrel, and Dolby. iPerceptions renewed annual contracts with high profile clients such as Land Rover USA, BMW/Mini Canada, and Nissan Canada. Q22008 also saw pilot continuations from Videotron, Pottery Barn, Autodesk and BMW North America, as well as custom studies developed for LG Canada, Dell and Samsung. For the second quarter of 2008, the Corporation experienced an important increase in revenues which were$1,132,181 compared with $715,191 for the same period in 2007. The increase represented $416,990 or 58%. Is this enough? As discussed earlier, a weakness of this business model is that it needs to create more incoming cashflows for it to be sustainable. The three ways to seek more cashflows are: 1) expansion into new markets, 2) broadening of customer base, and 3) partnership with complementary products/services. Fortunately, iPerceptions has been able to foresee the necessity for these 3 incremental avenues of income: Expansion into new markets: In April 3, 2008, iPerceptions announced the opening of its London office, allowing the company to enhance its services to clients based in the U.K. and providing a gateway for the rest in Europe. Later on the future, the company could open a similar office in Asia. Currently the business model is focused on large corporate clients. A cool $60,000 is beyond the reach of Average Joe. Therefore, the company is pushing 4Q, a free survey tool that allows website owners and operators of all sizes to easily understand the reasons why visitors are coming to their websites and whether or not they are able to complete their tasks. The company hopes that the 4Q effort will strengthen the iPerceptions brand as the leader in web analytics, grow its user database (especially important for the iPSI), and create more revenue. The creation of free Java script tagging web analytics tools such as the 4Q is intended to create partnerships with complementary services companies such as hosting companies and blogs. iPerceptions is testing the waters for web-hosting package value-add tools for hosting companies. Duringthe second quarter of 2008, iPerceptions focused on integrating such third-party's technology with the 4Q tool. By adding on 4Q as a value-added tool within hosting company interfaces, 4Q will be open to millions of small tomedium business/website owners that may not have otherwise been exposed to the service.