REPORT PREPARED FOR: BY XI U QI N LI U, 1 4 6 3 3 4 9 GUANG HUI - - PowerPoint PPT Presentation
REPORT PREPARED FOR: BY XI U QI N LI U, 1 4 6 3 3 4 9 GUANG HUI DUAN, 1 4 7 4 4 9 7 XI N LI , 1 4 8 8 9 1 6 MOHI NI MARI A, 1 4 8 1 5 9 6 POSTGRADUATE DI PLOMA I N BUSI NESS APMG 8 1 1 9 : DI GI TAL ENTERPRI SE 2 0 1 7 > > APMG 8119:
> > APMG 8119: DIGITAL ENTERPRISE
REPORT PREPARED FOR: BY XI U QI N LI U, 1 4 6 3 3 4 9 GUANG HUI DUAN, 1 4 7 4 4 9 7 XI N LI , 1 4 8 8 9 1 6 MOHI NI MARI A, 1 4 8 1 5 9 6 POSTGRADUATE DI PLOMA I N BUSI NESS APMG 8 1 1 9 : DI GI TAL ENTERPRI SE 2 0 1 7
> > APMG 8119: DIGITAL ENTERPRISE
Background of Pushpay
Found in 2011 Listed on NSX & ASX High-tech firm Provide third party payment/engagement/community solutions Easy, Fast, Simple: in 10 seconds Markets: Faith sector, schools, charities, S&M enterprises Functional features: Cash and Check Recording, Autopay, Text Giving (enable donors to pay via text message link), Annual Giving Statements, Echurch Apps
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Background of Pushpay
2017 Performance Highlights key metric FY 2017 (US$) FY 2016 (US$) Change Increase in Annualised Committed Monthly Revenue (ACMR) over the year $30.9m $15.6m +97.9% ACMR $50.5m $19.6m +157.7% Total Customers 6,737 3,766 +78.9% Average Revenue Per Customer (ARPC) $625/M $434/M +44.1% Staff Headcount 376 215 +74.9% Published App rank in the Apple App Store worldwide 5 13 +61.5% Transactions processed over the year 6.1m 1.9m +220.1% Annualised Monthly Payment Transaction Volume $1.8b $0.6b +193.1%
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Market Position
The Pushpay Market Position in the US Faith Sector Market Size TOP 20 largest Top 100 largest Pushpay Customers 10 42
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Future Plan
Short term plan - the company focuses on increasing its markets share in the US faith sector in width and depth. Long term - the company is to develop and grow market shares in three additional target areas, together with churches. The customer numbers are displayed in the table, with a total market potential of $5.5 billion.
Market Churches Public schools Private schools Not-For Profit Market size >340k >98k >3k >1.6 million
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Revenue Analysis Revenue Creation
Individual users payment through Pushpay. Pushpay transact the money to churches, schools, charities and S&M companies.
Pushpay also provides engagement solutions for
community establish.
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Revenue Analysis Why is this revenue created?
Pushpay delivers business value through their services which meets customer needs initiated by e-commerce and mobile device development.
New Zealanders own a smartphone by 2015
Communication with Online APPs is replacing physical interactions. Higher demand on convenience and simplification of nearly all aspects of daily life.
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Revenue Analysis Revenue estimation
Annual Committed Monthly Revenue (In Million US dollar)
2017 June 2018 March
Key drivers for revenue growth:
customer size.
terms of the huge amount of churches, schools and Not-For-Profit
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Revenue Analysis Risk and Opportunities
Major risks of revenue component Major opportunities of revenue component
Trust and satisfaction are the core of an
which is highly related to customer experience when using APP or website.
would emerge along with the widespread utilization of social media. (WeChat as an example)
Further revenue opportunities of Pushpay is generated by its competitive advantages as follows.
with both payment and engagement.
the industry, such as social network with top churches.
by customer resource sharing to enlarge Pushpay market share.
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service fees,
costs, stock exchange listing expenses.
cost.
advertising cost, promotional events, brand building and corporate communications.
platform maintenance
costs
payment to third party
Third party direct cost Product development and maintenance cost General and
administration cost Sales and marketing cost
Cost Component Analysis
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Costs 2017(US$000) 2016(US$000) Change Third party direct cost 14869 4580 225% Product Development and Maintenance cost 7821 3050 156% Sales and Marketing cost 19206 10044 91% General and other Administrative cost 15101 5865 157% Total Cost 56997 23539
Estimated Total Cost
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to increase in the near future.
development in technology may lead to higher technology investment.
direct cost by forming good ties with financial institutions.
focusing on cloud-based solutions.
sharing.
the accounting software firm.
Cost Analysis- Risk and Opportunities
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Value Propositions
Simplicity
Community Enhancement
Efficiency Empower
Security
Transparency through
engagement
Mobile
Value Propositions
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Church Pushpay Donor/Payer Charity School S&M Companies 3rd Party Developer
Engagement Participation Social Community Payment Engagement Payment Payment
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Content Customer Experience Platform
school are very brief
requested by customers
through mobile app., web and text.
for churches, donors, and among them.
payments through mobile, text, website & 3rd party APIs.
MasterCard, American Express and Discover only.
The Pushpay Business Model Status
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An External Perspective
Dimensions Church School Charity S&M Businesses Note Loyalty
High High Low Low Extent of shared interest
Size
Small High Medium High Group size
Wealth
High Medium Low Medium-Low Purchasing power
Competition
Low High Low High Competing offerings
Revenue Model Church School Charity S&M Businesses Business Model Bias
Pay Volume-based Pay Mixed of Free + Pay Free& Volume-based Pay
Note Pay to Access Small Unite Access fee Advertising Fee and/or Small Access Fee
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Value Proposition Indicators Pay Free Mix Compelling Content Coverage Distribution control Choice Context Convenience Connectivity Community Comment Customization Conversation Collaboration Citizenship Customer experience Application Consumer review and compensation
Source: KPMG,2009
An Internal Perspective
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The Business Model Matrix
School S&M Charity Church
School
Revenue Model Bias Pay Supportive Initiatives Free Supportive Initiatives Mix Supportive Initiatives Churches
Pay
Strengthen distribution control for client commitment Schools
Volume- based pay
Strengthen distribution control for client commitment Create features of community, connectivity and collaboration between schools; expose school products online for easier identification Enhance customer review and compensation Charities
Mixed of free+pay
Strengthen client control, as well as more functional applications Create features of community, connectivity and collaboration between Charities. Enhance customer review and compensation S&M Enterprises
Free& Volume- based Pay
Create features of community, connectivity, collaboration between schools; increase products exposure, as well as product citizenship impacts for clients
review and compensation
features and more functionality.
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Theoretical and Managerial Implications
content) must be coupled with understandings of
customer needs and industrial analysis first.
for ender user market, less for business-to-business software providers: connectivity, engagement, community
Theoretical implications
functionality and system compatibility to cope with risks (platform stability, increasing social media functions) .
strategic alliance, obtaining grants and social sharing R&D, support via Cloud-based solutions
school for less-pay model and S&M for free to volume- based model. Managerial implications
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