BUSINESS MODEL for a publishing industry

1
BUSINESS MODELfor a publishing industry

• By
• Jamil Sewanyana
• Simwogerere Katende

2
PAPER STRUCTURE

• Traditional Publishing Model
• Down sides of traditional Publishing
• Online Publishing Model (OPM)
• Benefits of OPM
• Business Model
• Situation of Uganda
• Way Forward

3
Traditional Publishing Model

• The Traditional book publishing
• model is fraught with problems
• that conspire against an
• individual author/publisher
• making a decent living from
• their work.

4
Traditional Publishing Model
Use Commercial Publishers
Two Options
Self Publisher
5
Commercial Publisher route

• Author submit book proposal or full manuscript to
  commercial publisher
• Contract signed between author and publishing
  house
• Keeps off time-consuming and complex process
  involving printers, shippers, wholesalers,
  distributors, markets and finally book sellers
  (all managed on author's behalf)
• Takes 18 24 month

6
Self-Publishing route

• Author eliminates some of the middlemen and
  manages the overall publishing, distribution and
  marketing processes by himself/herself
• Option gives author much more control of the
  process and allows him/her to earn more money
• Publisher is responsible for performing all the
  functions and services that commercial publishes
  would look for

7

• Model is less time consuming in terms of elapsed
  time, since no manuscript submission and approval
  process are involved
• Self publishing can save 6 12 month

8
Down sides of traditional Publishing

• Most archaic and poorly run Business Model
• The entire industry seems to be behind current
  day business practices of other industries
• Backward/outdated and dysfunctional

9
Conventional Book Publishing

• Give away half your books value upfront
• Discount at least 40 60 off
• Dont count on making big bucks
• 6 10 of the net
• You will have to write lots of books
• Wait forever to get paid 90 120 days after the
  actual book sales
• Get stuck in someone else's time cycle
• Commercial publishers time frame 18 24 month

10
MODERN PUBLISHING MODELS

• Eliminates all negative
• aspects of the traditional
• publishing model and add a
• number of benefits.

11
Online Publishing Model

• It is a combination of online digital
• download delivering and print on
• demand (POD) hard copy publishing
• that side steps all the pitfalls of the
• traditional book publishing model

12

• It offers authors and publishers an excellent
  alternative that give items more control and will
  increase their sales and profits
• It is worldwide solution to information
  dissemination
• It improves the quality of indigenous knowledge

13

• Increased visibility
• It provides Ugandan publishers with increased
  opportunities for the production and
  dissemination of scholarship and research
  findings.

14
Business Models

• The topic of business model has become important
  in
• todays competitive landscape. The capacity to
• manage continuous change and constantly adapt to
• rapidly changing business environment by
• introducing new business ideas concepts is
  nowadays
• indispensable for companies to thrive and
  survive.
• The business model concept is a particularly
  helpful
• unit of strategic analysis tailored to todays
  business
• Environment like the publishing industry.

15
Meaning of a business Model

• A business model is a conceptual tool
• that contains a set of elements and
• their relationships and allows
• expressing the business logic of a
• specific firm.

16
Meaning of a business Model

• It is a description of the value, a company
• offers to one or several segments of customers
• and of the architecture of the firm and its
• network of partners for creating, marketing and
• delivering this value and relationship capital,
  to
• generate profitable and suitable revenue
• streams.

17
Building Blocks for the Model

• The Value Proposition of what is offered to the
  market
• The target customer segments addressed by the
  value proposition
• The communication and distribution channels to
  reach customers and offer the value proposition

18

• The relationships established with customers
• The core capacities needed top make the business
  model possible
• The configuration of activities to implements the
  business model

19

• The partner and their motivations of coming
  together to make a business model happen
• The revenue streams generated by the business
  model constituting the revenue model
• The cost structure resulting from the business
  model

20
Business Model
Partner networks
Customer Relationships
Core Capacities
Value Configuration
Ugandan Publishers
Success/Growth in Publishing
Value Propositions
Distribution Channel
Customer Segment
Cost Structure
Revenue Streams
21
Situation of Uganda Today

• Books are expensive reading habits are
  underdeveloped
• Few text books are produced to be used among
  neighboring countries
• The actual printing process is also suboptimal
  printers using out of date technology and
  unskilled labor reduce the suitability of the
  most carefully produced work

22

• Cost of printing increases every year due to the
  need for printers to import (paper) materials
• High cost of unreliability of postal services
• Unreliable banking facilities, lack of
  communication between banks in different
  countries and high changes for currency
  conversions

23

• Lack of support staff and basic computing
  equipment
• Editors operate in lonely and discouraging
  situations
• Few commercially available training
• courses designed to develop auditing
• and publishing skills

24
Problems of online publishing

• Lack of computing equipment /facilities with
  internet/low bandwidth/need for governments to
  invent
• Editors basic computing skills
• Rigorous production and subscription maintenance
• Technological and administrative skills in the
  publishers office.

25
Problems faced by african publishers

• Shortage of capital
• State of the art skills and technology
• Poor marketing
• Poor distribution infrastructure
• Low level of literacy
• Low level of reading culture
• State policies deter freedom of expression

26

• Political instability
• Absence of good governance
• Writers/ Book sellers are in short supply
• Unreliable electricity supply
• Absence of an organized network in the book
  chain- from writers to end users.

27
WAY FORWARD

• Inject life and professionalism into the industry
  
• All those connected to the book chain need to
  come together and talk about these problems
• Network, put resources to work support capacity
  building and engage in advocacy

28
CONCLUSION