The G-App Factory Mobile app imagined, built, and used by the Filipinos for every Filipino

PROJECT PROPOSAL

Proposed by: The Milk Team

For The Globe Game Changer Challenge

G-App Factory Mobile app imagined, created, and used by the Filipinos for every Filipino.

EXECUTIVE SUMMARY

What if you have a brilliant app idea in mind, but lack the technical skills to pull it off? Or you could have the most awesome app development skills, but don’t exactly know which app customers really want and wish for?

Globe App Factory fills in such gap. G-App Factory is a mobile community for Filipino app-enthusiasts where users who have a creative app idea can work with mobile app developers and technopreneurs alike who are searching for innovative projects to work on to.

App ideas are free, but execution often requires technical skills. Hence, G-App Factory streamlines a platform for a consortium of app ideas where end-users could express what mobile application suits their needs and usage. In turn, through Globe’s intensive mobile network solutions, app developers could bring these ideas to life that could result to an innovative app for market’s consumption.

At the heart of G-App Factory’s business model is the idea of collaboration. Its revenue model is based on the value that customers get for pitching in an idea for the app (thinker), signing up to work on an app (creator), and downloading each app (user).

Driven by projected transaction volumes, the number of in-app advertisement placements is a function of the activation count of registered users, executed projects, and consequently, the number of successfully launched apps.

BACKGROUND

Mobile computing is the future of business and digital world.

According to a 2011 report from AGB Nielsen Philippines on web usage behavior, 56% of Filipino internet users access the internet everyday on their mobile phone and majority of them use mobile applications.1 Tech companies are on the rise and we believe that Globe should jump on board in today’s very smartphone and application-driven social market base.

Yet, despite the attention paid to app development in the previous years, there arises a need in answering the following questions: How are these applications made? Are they sustainable forms of income? Can a person execute an application of his own? What if I have an idea for an application, where do I ask help to build and market it thoroughly?

Challenges in App Development

Point is, there remain looming challenges that app development faces in general. For one, app development is quite unpopular in the country. There is little to no interest among app users on engaging on app development. For them, app development is contrived within the bounds of ivory-towered mobile engineers whose highly complex computing languages estrange non-technical users. Also, there is still a large portion of mobile users which remained untapped of mobile apps.

Alongside the technical aspect of app development, launching an app also includes business phase which often inhibits Filipino-made applications from becoming commercially successfully. The matured and crowded Apple and Google app stores, for instance, left Filipino technopreneurs lagging behind other app developers. Marketing and cross-platform promotion, while very crucial in the life cycle of an app, is something that Filipinos have no access to.

In the Philippines, there are various app development outsourcing communities, but these lack the integrity of network (e.g. OptiMind Technology Solutions, Dynamic Objc.com, etc) and after-development support (e.g. Quantumx.Com, MicroSourcing PH). Say, iConcept Global Advertising Inc, a mobile solutions company based in the country, only caters to corporate clients and is often deficient of a reliable pool of Andoid, iOS developers. Jim Gow, Business Solutions Consultant for Google Philippines, even pointed that keeping up with the hyper-moving processes of app development constraints Filipino developers who lack marketing and legal know-how in sustaining business.

Regardless of these challenges, it transpired that there are app-idea sharing communities that thrive in serving its purpose: share ideas on app. The roster includes IdeasWatch.com, PreApps.com, Reddit-Somebody-Make-This, and The Internet Wish List.com. All of these sites, however, obviously flunked on execution. Most of the brilliant ideas here sit sedentarily, unnoticed.

1 AGB Nielsen Philippines Manila (July 2014). Two in three consumers access intern ion mobile phones. Report pre-release in Nielsen’s inaugaural Southeast Asia Digital Consumer Report available from July 2014.

PROBLEM STATEMENT AND SOLUTION

There are many reasons to jump in on app development – maybe you need it for a business app, or maybe you just have an idea you wish to implement. What if you have a brilliant app idea in mind, but lack the technical skills to pull it off? Or you could have the most awesome app development skills, but don’t exactly know which app customers really want and wish for?

The Solution: Globe App Factory.

G-App Factory is a mobile community for Filipino app-enthusiasts where users who have a creative app idea can meet mobile app developers and technopreneurs alike who are searching for innovative projects to work on to. It aims to provide a platform where consumers collaborate on ideas for an application and execute that idea through a reliable, extensive technological resources. Specifically, G-App Factory wishes to accomplish the following objectives:

1. Provide a launch-pad for promising mobile app ideas where end-users could express their idea on the app they need and wish to use;

2. Stimulate innovation in digital technology businesses by developing startup projects from simple app ideas; and,

3. Demonstrate concrete commitment to empowering Filipino technopreneurs and mobile app developers by providing them an extensive platform for app learning (through Massive Open Online Course or MOOC) and development (through platform utility).

G-App Factory aims to catapult Globe as the leader in digital lifestyle as it could pave the way for incubation, building, and launching of mobile applications that could be a momentous part of today’s interactive lifestyle.

ASSUMPTIONS

Just as personal computer revolutionized technology, the era of app development will forever change the landscape of digital. The team then subscribes to the following assumptions.

Everyone can imagine an app. Mobile computing’s biggest advantage – centralization – could also be its biggest weakness. People are often aversive of the idea that app development is for all. The G-App Factory believes that the spirit of bayanihan among Filipinos is still pertinent in our times – that when we work together, we can create better app ideas that can make our world more wonderful. People participation is free from the constraints of time and cost; the promises of return, however, is utterly boundless. As an innovator in the telecommunications industry, Globe can provide an intensive network for introducing app usage and development to untapped markets. Not everyone can build their own app. The idea that app development is one of the hardest technical skills to acquire has often been discounted for. The usual connotation is that one just has to build an app, make sure it looks reasonably attractive in a 4-inch device, and upload it on app store. Truth be told, that’s not how easy as it sounds. To those without prior coding experience, learning to navigate their way in Objective-C or Java computing languages could be a daunting knack to master. Worse, it’s not just about coding. User interface designing and fluidity of navigation experience are similarly becoming a critical part of app development. In a nutshell, G-App Factory provides a launch-pad for promising mobile app ideas where end-users could express their idea on the app they need and wish to use. On a broader view, it democratizes the activity of app development. Process of app development is universal. While App development can be facilitated on various platforms, utilizing different mechanisms and systems, the team grew convinced that the process can be condensed in the following procedures.

STRATEGY

Mobile applications generally serve one of the three purposes: internal use, customer use, or revenue generation. G-App Factory caters to all purposes. While it allows customer to access apps in a centralized location (internal/customer use), it also allows builders to position them in the marketplace (revenue generation).

G-App Factory would be aimed to a threefold market segment. For one, it will be directed to the Thinkers, the one who pitch in their creative ideas for an app. Believing that Filipinos are inherently creative and imaginative, G-App Factory provides them an avenue to articulate their ideas that could transform the app development market and the society as well.

Secondly, it caters to the Builders/Companies. They bring the ideas to reality through their adept skills in navigating through different mobile software platforms. From calibrating backend processes, UI designing to debugging, builders or the skilled app developers make sure that the thinkers’ ideas will turn exactly as they imagined it to be.

Lastly, it services the Users. They are the end consumers who could benefit from the entire process of app creation. They are likely to identify with the apps as these are ideated by end users like their selves.

Empowering Technopreneurship

Generally, G-App Factory envisions to stimulate innovation in digital technology businesses by developing startup initiatives from simple app ideas. Through Globe’s intensive network, G-App Factory would inspire ordinary users to upload their app ideas and work with seasoned app developers.

App developers often find it difficult to validate customer needs, draft a business model addressing monetization, and find legal and marketing skills that are crucial in protecting and promoting the application they create. This is especially true with the existence of app-consortium giants like App Store and Google Play.

G-App addresses this need by providing a solid backend platform for Builders and Thinker from the ideation stage to the launching phase of their apps. It allows app store optimization, providing users means to position its app amidst the array of competing mobile items.

Collaboration

G-App Factory is outsourcing by nature, crowdsourcing by technology. Filipino consumers may partner with a pool of app developers to save on production cost. Since mobile development would entail long planning and development cycle, some apps that have been launched may be dated and irrelevant. To rectify this, it is proposed that a dedicated workforce of specialists will closely monitor Matched (III) app projects up until they reach the Launching (VI) stage.

Unified System

One of the drawbacks of app crowdsourcing is the apparent fragmentation of devices and operating systems

utilized in hosting development. With an array of devices system variants, developing and testing becomes

trulychallenging as well. Hence, through G-App Factory’s unified app development suite, that is fit for product

enhancement, it is hoped to resolve the purported fragmentation of mobile tools.

EXECUTION

Backend Processes and Operations

The G-App Factory serves as a platform to create game changing ideas, allowing thinkers and builders to meet

and create value-adding applications towards end users. The following summarizes the procedures on utilizing

the technology. It is noteworthy to mention though that the “G-App Way” resembles the universal process of app

development the team identified.

Step 1: Registration Users will have to register and create an account. Their basic information, education background, work experience, and other credentials are being solicited to validate one’s competencies and credibility within the community. Upon registration, users will then have to categorize their profile as either Thinker, Builder, Company or a Free User.

Thinker. A thinker is anyone who has an idea that he or she wants to pursue and turn into a functioning application. There are no limit as to the ideas generated by Thinkers. Its authenticity, potential and viability will serve as some factors that will attract Builders to pursue the idea and turn it into a working mobile app. Builder. Builders have the necessary knowledge and skills to develop an application. Anyone interested can enter the G-App Factory and choose the idea that he or she wants to pursue that is able to meet his or her criteria. Company. Companies are also free to register as G-App Factory provides a platform where they can

post app demands suitable to fulfill their business functions. For example, a company may post a

request for an online application that promotes their products. Companies can also purchase the

developed application before it is released for public consumption if the Thinker and Builder agree.

Free Users. Free users are the people who want to explore different communities since they will be the end users of the idea’s that will be executed.

Step 2: Ideation Thinkers or Companies initiate the ideation for the mobile application. G-App Factory tailors ideas among different phases, helping these ideas to be formulated and later on be concretized for the builders’ reference.

Phase 1: Idea Description A short brief encapsulating the idea. This could be an excerpt that developers, free users and

companies can read to get a gist of what the project is all about. A more detailed explanation and

description of the idea can later be viewed by parties who commit to the idea.

Phase 2: Objective or Goal Summarizes the objective or the market opportunity that the application wishes to address. Phase 3: Target Market Who do you intend to be the users of your application? Whose interest do you want to get? Phase 4: Function of your Application How do you imagine your application to function? What are its features, uses, etc.? Phase 5: Language or Platform What platform do you plan to release your application?

After filling up the various stages, the system of the G-App Factory will process all of this into various categories to aid in the matching process. Details regarding the specifications, price, and timeline are posted to help thinkers and developers assess whether this is something that would interest them.

Step 3: Matching Phase In this stage, the Builder chooses his preference in terms of timeline, target market and platform for implemetation (Andorid / iOs). The G-App Factory will automatically filter all ideas that meet his or her requirements. After filtering, the page will release a list of idea briefs which they can click on for a more detailed description of the idea for them to get a better grasp as to what the Thinker envisions. If interested, the Builder can pick a specific idea. He will be forwarded to a page with terms and agreements regarding the privacy and protection of the thinker. The Thinker, who essentially owns the idea, will be notified on his or her profile by the G-App Factory system. From there, the Thinker and the Builder can start working on the app project.

Finance

At the heart of G-App Factory’s business model is the idea of collaboration. Its revenue model is based on the value that customers get for pitching in an idea for the app, signing up to work on an app, and downloading each app (user). While download traffic does not promise a lucrative profit, G-App Factory aims to sustain the business through in-app advertising and product placement. It is important to note though that unlike the usual mobile ads, G-App Factory aims to employ rich media ad networks to keep users’ interest and to yield higher CPMs.

Establishing partnership with reputable app development platforms like Apple’s iOS and Google’s Android could similarly assure a stable stream of income through regular downloads.

Globe’s strength lies with its dynamism and boldness to tailor its solutions to its customers. More than the revenue-generating feature of G-App Factory, this project is deemed to be a social revolution where we can gauge market feedback and interest. In other words, it can similarly provide a syndicate of market insight which the company could capitalize on in making “the happiest customers”.

REVENUE STREAM (Projected in a 6-month period)

Primary:

Download Influx: 8M Globe users, assuming 75% downloads the app

0.50 pesos average revenue per download

6M X 0.50 pesos = 3M pesos from Q1-Q2

Commissions from approved projects

40 approved projects by Q2

50,625 - Average revenue per app in Google

10% commission

40 X 50,625 X .10 = 202,500 in 6 months

Secondary:

a) In-store app purchases

a.1) General Apps = Php135 - Php315

a.2) Company Apps = Php 1350

b) App advertisements

c) Data Analytics - Since there is an option to log-in from FB account, this would pull info that could be used for future

projects Globe wants to work on

Step 4: Execution After coming into terms and agreement between the specifications indicated by both the Thinker/Company and the Builder, abiding by Globe’s terms and conditions, the Builder shall create the application. The application will be initially released within the G-App Factory community for testing and debugging. Step 5: Testing The duration of the testing will be dependent on the specifications of the project. Here, all of the members of the community, whether they may be other Thinkers, Builders or Free Users, may test the application. Through syndicated analytics, this stage also facilitates data collection for both the Thinker and the Builder to gauge the type of market they are able to reach, audience interest and impact and so on. They could further analyze the data and make the necessary change they deem fit to achieve the objective or goal of the Thinker. Step 6: Launch of Application to the Market After making final revisions, the application will finally be launched through various existing platforms that Globe has partnered with such as that of App Store or Google Play. In the event that a Company opts to assume ownership of the application, the launching of the application will be managed by the Company and no longer by Globe. Step 7: Sustainability and Efforts for further growth After a certain period, the Thinker and the Builder can choose to continue utilizing the support of the G-App Factory in exposing their mobile application through app-hosting portals like App Store and Google Play. Upon the Thinker’s and Builder’s discretion, constant updates and upgrades for the application could also be made to further advance their product.

COST DRIVERS

Application Development: 1.5M

System Maintenance: 500,000

Management: 500,000

Marketing

A concerted marketing effort would focus on raising awareness and engagement among the three-fold target market that G-App caters to – the Thinkers/Company, Builders, and Users. Here, different marketing efforts will be positioned across different platforms (print, social media, TV, etc.) to engage target market. It is also proposed to tap and coordinate with local app development communities and encourage them to sign up as Builder in G-App Factory. This is of course to supplement the already dependable reservoir of talented Globe developers. The official website of Globe will also be used to promote the new application and its availability in the app stores for iOs and Android.

As the product turns more mature, it is proposed to launch product feature and marketing campaigns that aspire for sustainability in the promotion of G-App Factory to build more brand awareness, generate more revenues and forge more partnerships and collaborations with different companies. Depending on the market reception, it is envisioned to launch different product features on the platform to engage more users and adapt to change in demands.

SUCCESS INDICATORS

G-App Factory’s transcendental intention is to create awareness and sustainability on app development in the country. It is therefore envisioned that three-to-six months (Q1, Q2) after its take-off, it will be able to secure an activation of at least 500,000 users (generously distributed among Thinkers/Companies and Builders). As projects grow mature towards the end of the Project Launch (VI), it is projected that at least 200 start-up mobile applications will be launched on the platform provided by G-App Factory, with stable download streams and in-app advertisement placement.

Condensed in the following matrix are the projected activations for each phase of app development within G-App Factory platform.

PHASE Q1 – Q2

(Months 1-6) Q3

(Months 7-9) Q4

(Months 10-12)

Registration 100,000 registered users among different user

category types

120,000 (20%↑ from Q1-

Q2) 130,000 (10%↑ from Q3)

Ideation 20,000 project briefs uploaded on the Thinker’s archive

24,000 project briefs uploaded

26,400 project briefs uploaded

Matching 10,000 ideas matched to developers to work on

the project

12,000 matched idea 13,200 matched idea

Execution 4,000 projects implemented through a

prototype app for testing

4,800 implemented projects

5,280 implemented projects`

Testing 200 projects submitted for alpha- and beta-

testing

240 tested projects 264 tested projects

Launch 80 apps marketed and launched on the G-App

Factory platform (with at least 60 free apps – 20 paid apps)

96 implemented projects (with at least 72 free apps – 24 paid apps)

105 implemented projects

(with at least 79 free apps – 27 paid apps)

Sustained 40 being continuously improved and sustained

48 implemented projects 53 implemented projects

GROWTH STRATEGY AND REVENUE MODEL

For long-term sustainability, it is recommended that channels for each activation will be tracked to identify key

network sources that could be optimized to improve influx of Registration (I) Execution (IV), and Launch (VI).

Syndicated analytics will be employed for each steps of the life cycle.

Syndicated analytics will be employed for each steps of the life cycle.

Promising mobile apps crafted through the G-App Factory network could also be adopted to Globe’s subsidiary,

Kickstart Ventures, Inc. which provides a launch-pad for startup businesses. Here, commercially successfull app

projects can drive more revenue for the company.

Revenue streams for G-App Factory is driven by transaction volumes. The number of in-app placement is a

function of the number of registered users, executed projects, and consequently, the number of successfully

launched projects. It is expected that bulk of the revenue for the business will originate from Company activation

which are going to use the innovative platform of G-App Factory to leverage apps within their business function

Commission-based business model will be structured to address monetization of Thinker-Builder venture. Here,

Globe is entitled to be remunerated of 5.0% to 10.0% of the net returns of advertisement placement and

download streams (for paid application)of projects launched in the platform. Hence, the more projects ideated,

executed, and launched, the more lucrative G-App Factory will be.

G-App Factory will similarly optimize secondary income-generating services such as supplementary services that

the Thinkers, Builders, or Users can sign up to. This includes, but is not limited to, inter-platform hosting, UI design

templates, and in-app ad placement.