ARTEMIS IMAGE CASE STUDY

1. Discuss why Chris started her company and what was the opportunity?
Chris started her business because she realized a simple business model that would
lead to revenue and success with the proper launch. She realized digitizing documents using
the latest technology, tagging them with easy-to-read labels, and linking them to search
engines for easy retrieval and widespread use will meet customers wants and needs while
also preserving images and data and earning revenue. The strategy of the model it to provide
digitizing services to companies in exchange for rights to market the content on the internet,
receive merchandising rights, and also promotion of Artemis Images ULR with each partner.
While Artemis Images provides a meaningful service of preserving the companys valuable
media and data, the get to sell the images to customers, and link the images to key words in
search engines. The opportunity for Chris to start her own company was because she
discovered that the photo archives were obtaining a ton of requests from fans and customers
but they were unable to fill those requests to the full potential. Chris knew how to reach the
potential. Chris also held the opportunity because she understood the value for an
organization to have its inventory, pictures, and information digitalized and saved forever and
she understood the cost of scanning and digitalizing this media. Artemis Images will be able
to make profit off of the unrealized value of the images that is kept hidden by companies and
consumers. Chris was able to put all these little knowledgeable aspects together in order to
form a business.

2. What is your evaluation of the teams qualification for this business?

With an aggressive time-line for well qualified sales professionals to support our nation-wide
sales expansion, Artemis Consultants exceeded expectations in all areas. Artemis presented
exceptional candidates, all qualified and well-informed on the requirements and challenges of the
sales opportunities. Recommend for any company that is looking for exceptional sales professionals.
It is important to me when working with a recruiter that they understand the importance of my time
and the quality of the candidates that are presented to me. Artemis is naturally engaged, thoughtful,
and professional in their work. Instead of sending the wrong candidates, rather wait for the best.
Artemis takes the time to listen to the needs of our organization and works hard to make sure we get
the best candidates. If you are looking for a business partner, Artemis is someone you should meet.

3. Discuss the division of ownership among the team.

They consist of four partners to build a group. Individuals who join the group are
Christine Nazarenus, George Dickert, Frank Costanzo and Greg Hughes. Each of them has
the same interest of 25% and contributed equally to the company that operated it.
Here are profiles of friends sharing within the company operating them.
Artemis Images management team 1999-2000.
a. Christine Nazarenus, 34, was formerly vice president of national accounts for AGT,
one of the top three content management system providers in the world securing
million dollar deals for this $ 500 million company. She is an expert in creating digital
workflow strategies and has designed and implemented content management solutions
for some of the largest corporations in the world including Sears, Conde Nast,
Spiegel, Vio, State Farm, and Pillsbury. Ms. Nazarenus has extensive general
management experience and has managed a division of over hundred people. Chris
holds a BA communications from the University of Puget Sound.
b. George Dickert, 32, most recently worked as a project manager for the Hibbert
Group, a marketing materials distribution company. He has experience with ecommerce, Web-enabled fulfilment, domestic and international shipping, call centres
and CD-ROM. He has overseen the implementation of million-dollar account, has
managed over $20 million in sales, and has worked with large companies including
Hitachi, Motorola, On Semiconductor, and Lucent Technologies. Mr Dickert has an
MBA from the University of Colorado. George and Christine have been friends since
high school.
c. Frank Costanzo, 40, is currently a senior vice president at Petersons.com.
Petersons.com has consistently been ranked as one of the top one hundred sites
worldwide. Mr Costanzo is an expert in content management industry. He has worked
on content management solutions for the worlds top corporations including General
Motors, Hasbro, Bristol-Meyers Squibb, and Sears.
d. Greg Hughes, 32, is currently a senior sales executive with one of the largest
commercial printers in the world. Mr Hughes has 10 years sales experience and has
sold million-dollar projects to companies like US West, AT&T, R.R. Donnelly, and
MCI. His functional expertise includes financial and operational analysis, strategic
marketing, fulfilment strategies and the evaluation of start to finish marketing
campaigns. Mr .Hughes has an MBA from the University of Colorado.

4. Evaluate the business model for Artemis. Is it strong and will the firm be profitable?
Artemis images has a complex business model. Artemis Images business model was
to scan and digitally archive images for companies and regular people and sell the stock
images to other companies and consumers. In doing so, they will get the rights to sell the
photos on their websites, taking 85% of the revenues, while the original owners of the photos
receive 15% of the revenues. However, Artemis Images do not attain ownership of the
material, simply rights to distribute and sell. The advantage of this is that it is a niche
business model as at that time, if companies wanted to digitally archive their collection of
photos, they would need to pay a company a large sum of money to do so, and many
companies were not in financial positions to incur such large costs. However Artemis Images
would archive for any company regardless of their size because of their revenue sharing
model. This would allow them to reach out to a larger consumer base. Another advantage of
this business model is that it allows them to tap into the existing customers of the larger
companies. For example, fans of Indianapolis Motor Speedway Corporate (IMSC) who spend
$500,000 a year on the photos of racing cars and events would have to go through Artemis
Images to get photos from IMSCs archive. This would also apply for many companies
including big names such as National Geographic if the manage to secure a contract with
them. In addition, they would be promoted by their partner companies, and be co-branded
with their client-partners, which would mean that they would save on advertising and
promotion costs
Yet another advantage of this model is that it saves a lot of costs and time for Artemis
and the client-partner companies. The digitization of the archives and systematically tagging
photos would make it much faster to locate the photo that is demanded. Before this,
companies such as IMSC would have taken 2 weeks to locate one photo that would only sell
for about $60-$100, which does not justify the costs. The search system would make it much
more efficient to locate photos. Also, because Artemis would be scanning thousands of
photos a day instead of scanning on demand, the cost per photo would only be about $2
instead of what other photo archiving companies such as Corbis and Getty incur which is
about $40 per image. Thus, being more cost efficient than their competitors would make them
much more able to compete with them in the long run.

Their Business model also extends to them being Application Service Providers
(ASP) which would mean that they would provide the archiving software to companies who
want to archive their photos themselves and have control of their own photo sales and archive
system. The advantage of this is that they would be able to tap into the market where some
companies do not want to give Artemis Images rights to distribute and sell their photos and
keep 85% of the revenues. Furthermore, they would also have a greater chance of receiving
financing from investors as investors were losing faith in B2B and B2C business models at
that time but were still willing to invest in ASPs.
Moreover, an additional source of revenue from their business model would come
from web syndication. As customers who are fans of car racing may go on Artemis Images
web page to purchase some images from IMSCs NASCAR, they may also be interested in
other racing related merchandise, and Artemis may link other websites that sell these
merchandise or sell merchandise of related companies on their website. The 3 rd party related
companies would pay Artemis a fee for the affiliation. The advantage of this is that since they
will be generating traffic into their website, they can capitalize on the existing traffic by
redirecting the traffic to buy related merchandise and earn money while doing so. Hence, they
would be able to earn additional revenue on top of their main revenue model.