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The GoodWorks “Engagement Platform” is a web-based enterprise social network that

The GoodWorks “Engagement Platform” is a web-based enterprise social network that
inspires spontaneous collaboration, empowers action, and stimulates innovation.

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GoodWorks 2011 GoodWorks 2011 Document Transcript

  • GoodWorks Good Work is the Best BusinessGOODWORKSJ. Bean, K. Crisp, G. Hayward, K. Hayuk, K. James, T. Ko, J. Stoneberg !May 18, 2011! Capstone - Spring 2011 Final Business Plan
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergTable of Contents1.0 Executive Summary 1 1.1 Introduction of the Venture 1 1.2 Opportunity and Customer Need 1 1.3 Target Market and Projections 2 1.4 Competitive Advantage (Value Proposition) 2 1.5 Business Model 2 1.6 Management Model 2 1.7 Financial Summary Table 22.0 Venture Overview 33.0 The Opportunity & Customer Need 4 3.1 Disengaged Employees 4 3.2 Correlation Between Engagement and CSR 4 3.3 The Sustainability Journey 5 3.4 Total Addressable Market 6 3.5 Target Market 8 3.6 Market Growth 84.0 The Venture 9 4.1 Overview 9Capstone: GoodWorks i
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg 4.2 Key Features, Benefits, and Product Experience 10 4.3 Concept Basis 12 4.4 Value Chain 13 4.5 Value for Sustainability 145.0 Competition 15 5.1 Competitive Landscape 15 5.2 Competitors 15 5.3 Competitive Advantage 176.0 Marketing 19 6.1 Marketing Research 19 6.2 Distribution and Pricing Strategy 20 6.3 Brand Promise, Positioning & Values 20 6.4 Market Segmentation 21 6.5 Customer Archetype 22 6.6 Promotion & Sales Strategy 237.0 Business Model 248.0 Financials 25 8.1 Financial Projections 25 8.2 Break Even Analysis 26 8.3 Capital Requirements 26 8.4 Exit 279.0 Management & Organization for Venture Launch 28Capstone: GoodWorks ii
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg 9.1 Management Team 28 9.2 Advisory Board – Target Members 2910.0 Appendix 31 10.1 Financial Assumptions 31 10.2 GoodWorks Engagement Platform Screenshots 3211.0 Resources 35Capstone: GoodWorks iii
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg1.0 Executive Summary1.1 Introduction of the VentureThe GoodWorks “Engagement Platform” is a web-based enterprise social network thatinspires spontaneous collaboration, empowers action, and stimulates innovation.GoodWorks leverages a corporation’s greatest asset, its people, and enables them torealize their latent potential for solving sustainability issues. Through gaming dynamics,users create interactive missions (Projects with Purpose) that solve sustainable businesschallenges, turning unmotivated members of a workforce into engaged players on acompany’s team. GoodWorks’ vision is to transform the way people work by maximizingengagement, increasing productivity, and empowering employees to make a difference.  This will result in companies realizing stronger brand equity, enhanced talent retention andacquisition, and an improved integrated bottom line. For a demo of GoodWorks, pleasevisit the following website.1.2 Opportunity and Customer Need70% of employees are disengaged at work. This is a significant problem translating intocostly factors such as lower productivity, higher turnover, and lower profits for companiesto the tune of $300 Billion per year in the US alone (“Employee Engagement: What’s YourEngagement Ratio?”, 2008). GoodWorks recognizes the intersection of employeeengagement and sustainability and has identified $852 Million as the initial marketopportunity outlined below in Figure 1. GoodWorks plans to go beyond sustainability andfundamentally transform the way people work thereby tapping into the larger $300 Billionmarket opportunity.Capstone: GoodWorks 1
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg1.3 Target Market and Projections Figure 1: TAM - Overlap of Employee Engagement and Sustainability1.4 Competitive Advantage (Value Proposition)GoodWorks’ vision of its own “mission accomplished” is to raise the performance of clientcorporations by maximizing employee engagement, increasing productivity, strengtheningbrand equity, while improving an integrated bottom line. The customizable platform willallow all “players” of the organization to more effectively communicate and form strongerconnections as they collaborate to carry out Missions.1.5 Business ModelGoodWorks’ business model is a standard enterprise Software-as-a-Service (SaaS) model.Customers purchase yearly “player” licenses for each employee to participate in theircustomized GoodWorks Engagement Platform. GoodWorks consulting services provideexperts to help customers launch and grow their GoodWorks community. GoodWorkscommunity managers provide ongoing expertise in Mission design, community facilitationand CSR initiatives/metrics.1.6 Management ModelGoodWorks’ founding members are highly competent sustainability professionals with corevalues such as systems thinking and adaptability which align to the spirit of the venture.1.7 Financial Summary Table Figure 2: Financial Summary TableCapstone: GoodWorks 2
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg2.0 Venture Overview GoodWorks is a consulting firm and enterprise software developer that specializes in solving the needs for corporations to engage employees in actively meeting and exceeding the company’s CSR (Corporate Social Responsibility) goals. Our licensing model provides clients with access to an interactive online “Engagement Platform”, which enables employees as “players” to connect and collaborate to carry out CSR missions. Through gaming dynamics we encourage members to co-create fun, interactive missions that solve real-world problems; turning unmotivated members of a workforce into engaged players of the company’s team. The customizable platform will allow all “players” of the organization to more effectively communicate, form stronger connections and receive the intrinsic reward of recognition for those who perform admirably in socially conscious missions. Goodworks’ “Engagement Platform” leverages a corporation’s greatest asset, its people, and enables them to realize their latent potential for solving complex sustainability issues. We focus on implementing systems that inspire, engage and empower employees to take the lead in forming and completing company CSR goals. Fundamentally, GoodWorks’ platform will transform the way people work. GoodWorks’ vision of our own “mission accomplished” is to raise the performance of our client corporations by maximizing employee engagement, increasing productivity, strengthening brand equity, while improving an integrated bottom line.Capstone: GoodWorks 3
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg3.0 The Opportunity & Customer Need3.1 Disengaged EmployeesA 2007-2008 Global Workforce Study by Towers Perrin found that only 30% of employeesacross the country are engaged at work (Towers Perrin, 2008).  And, according to a recentGallup report, engagement drives business results, including customer satisfaction andprofitability (Robison, 2010).  “People want to be engaged in work with a purpose, andthey want insight into how their work is linked to larger organizational and societalgoals” (Reeves & Read, p. 6, 2009). Finding a way to tap into latent human potential couldunlock a $300 Billion opportunity, which represents the annual US revenue lost from adisengaged workforce (“Employee Engagement: What’s Your Engagement Ratio?”, 2008).3.2 Correlation Between Engagement and CSRThe Towers Perrin study also showed that an organization’s reputation in terms of being agood corporate citizen is one of the main drivers for employee engagement (Towers Perrin,2008, p. 9). More and more organizations are awakening to the value of Corporate SocialResponsibility (CSR) initiatives and their correlation to positive returns in the form ofincreased employee productivity and profitability. Figure 3 below illustrates this correlation.Capstone: GoodWorks 4
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 3: Correlation Between Employee Engagement and CSR (Willard, 2011)The financial crisis does not seem to be impacting this trend, as 20% of CSR reports filedover each of the last few years were first timers (Hicks, 2010). In spite of this growth incompanies establishing CSR policies, goals and annual reports, employees are often theleast informed (Kinnicutt & Mirvis, 2008, p. 49). Moreover, businesses are challenged byhow to make CSR initiatives relevant to employees and part of the larger business strategy.3.3 The Sustainability JourneyIn the book, The Sustainability Champion’s Guidebook, author Bob Willard (2009)illustrates the “The Corporate Sustainability Journey” (Willard, 2009, p. 11), as shown inFigure 4 below. As a company moves from stage one to stage five, the company’ssustainability initiatives become more robust and pervasive to the company’s culture.However, most companies that are involved in some form of sustainability practice remainin stages one through three. Companies that are at stage three might have a SustainabilityDirector or volunteer-based green teams. However, sustainability usually remains siloedand left on the periphery of the organization. The main environmental initiatives are usuallyaround eco-efficiencies — making environmental improvements to company operations inorder to save energy and cut costs. While these efforts are a step in the right direction, inCapstone: GoodWorks 5
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stonebergstages one through three, sustainability is not leveraged as a driver of employeeengagement. Furthermore, sustainability is not leveraged as a driver of innovation, newproduct development or new revenue generation. Figure 4: The Sustainability Journey (Willard, 2011)Finding a way to communicate and involve employees in CSR initiatives will close theengagement gap and result in happier, more productive employees, satisfied customers,and greater company profitability (Gallup Consulting, 2010, p. 3). GoodWorks is positionedto address this opportunity.However, the potential for the GoodWorks platform extends beyond employeeengagement in CSR initiatives. Ultimately, the platform will be used as a self-organizing toolthat will fundamentally transform the way people work.3.4 Total Addressable MarketThe initial addressable market is found where employee engagement practices and CSRinitiatives intersect. While both can be difficult to measure, the following criteria informedthe addressable market calculation:• Being ranked among Fortune’s 100 Best Companies to Work For® and the 50 Best Small and Medium Workplaces shows that a company invests in its employees. GoodWorks assumes that all ranked companies understand the correlation betweenCapstone: GoodWorks 6
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg CSR and employee engagement and are actively pursuing some form of CSR initiatives within the organization.• Producing a Sustainability Report is a best practice and demonstrates that a company values CSR performance and a positive brand reputation. GoodWorks assumes that all companies that produce a CSR report understand that CSR can be an employee engagement driver.• More than 7,630 companies globally produce some form of a sustainability report (“CorporateRegister.com Reports,” 2011). Reports could include the Global Reporting Initiative (GRI), Carbon Disclosure Project (CDP) or an integrated annual report.• There are roughly 400 Certified B Corporations (“B Corporation - Home,” n.d.), which represent organizations that are committed to solving social and environmental issues. GoodWorks assumes that all Certified B Corporations are within the addressable market.• For the market calculation, small-to-medium sized companies are defined as having fewer than 1,000 employees while large companies have greater than 1,000 employees. GoodWorks assumes that target customers have, on average, 2,500 employees.The price for the GoodWorks Engagement Platform will be subscription based per numberof employees. It is assumed that customers will be willing to spend three dollars peremployee per month. To account for rapid growth in CSR reporting and for simplicitypurposes, the addressable market calculation below (see Figure 5) assumes no overlapbetween segments. Figure 5: Total Addressable Market CalculationCapstone: GoodWorks 7
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg3.5 Target MarketThe target market encompasses a spectrum of companies at the CSR and engagementintersection. Per the criteria previously mentioned above, the target market is narroweddown to companies that produce a sustainability report and are headquartered in the U.S.(estimated at 1,100). Additional screens, such as membership in a collaborative CSRgroup (e.g. Businesses for Social Responsibility or the Sustainability Consortium), furthernarrows the scope to a few hundred companies. Then, GoodWorks targets companiesaccording to high engagement ratings, such as ranking among the best companies towork for, having a volunteer based green team, or having a Chief Sustainability Officerwithin the organization.3.6 Market GrowthNot only is the GoodWorks platform a tool that can be used to effectively communicateand engage employees in company CSR initiatives, but it also has to potential to transformthe way people work. The use of GoodWorks extends beyond CSR and can be utilized asa self-organizing tool. By offering employees a voice to communicate their ideas, buildproject teams and track performance, GoodWorks is an appropriate tool for any companythat is committed to shaping social consciousness and creating innovative products orservices. Similar to the growth in companies adopting sustainability measures due to theimportance of remaining current and competitive, tools like social networks are increasinglyembraced by organizations to maintain nimbleness and to inspire idea generation andinformation sharing. Designed as a social network with a purpose, GoodWorks takescollaboration to the next level by inspiring action in the real-world and tracking results.Companies can adopt the GoodWorks platform throughout the supply chain andcompanies of all sizes that embrace less hierarchical governance can use the platform toseek better ways to spur innovation, collaboration and action. Therefore, the potentialmarket for GoodWorks is much larger than the $852 million addressable market calculatedabove.Capstone: GoodWorks 8
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg4.0 The Venture4.1 OverviewGoodWorks provides an enterprise software system that radically improves employeeengagement by making it fun and rewarding to participate in CSR-related projects.Through gaming dynamics within a corporate social network and online community, theGoodWorks Engagement Platform turns unmotivated members of a workforce intoengaged “players” on the company’s team. Figure 6 below illustrates components ofgamification (see definition in Figure 7) and how these components align with humandesires. The green dots signify the primary desire a particular game mechanic fulfills, andthe blue dots show the other areas it affects. Figure 6: Game Mechanics (Bunchball, Gamification 101, 2010) ga·mi·fi·ca·tion [gay-muh-fi-kay-shuhn] - Applying the mechanics of gaming to non-game activities to change people’s behavior. Figure 7: Definition of GamificationCapstone: GoodWorks 9
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergAt the core of the venture and product design, GoodWorks provides sustainable value tothe world by helping turn employees into engaged contributors and unlocking latenthuman potential to “do good” for society.  Beyond wages, individuals engage with theirwork when they feel a strong sense of purpose and the potential to achieve mastery in askill or topic area. GoodWorks helps individuals create and achieve “Projects withPurpose” known as Missions that derive from a company’s CSR goals.  These Missionsnot only provide measurable value to employees and their companies, but also driveprogress towards a sustainable society by converting CSR from a company cost-center toa source of innovation and increased profits.4.2 Key Features, Benefits, and Product ExperienceKey Features of the Platform:I. Company specific and employee-created projects, known as “Missions.”II. Personal employee profiles that show skills, passions, accomplishments and higher “experience levels” as the employee completes Missions.III. Online collaboration tools for building Mission teams and executing Missions.IV. Virtual rewards / points for both completing and creating Missions.V. Community leader boards and “newsfeeds” highlighting employee accomplishments.VI. Dashboard and reports showing the positive impact of employee’s participation.Benefits to Players (Employees):I. Easy Meaningful Activity: Clearly tying simple games and missions to CSR objectives, players (customer employees) feel purposeful accomplishment from small investments in time and energy.II. Connection, Trust and Community:  Team missions and meaningful online conversations encourage social connections across organizational and geographic boundaries.  Newsfeeds, leaderboards and the CSR Dashboard visibly include employees in the corporate community.III. Development and Leadership: Team missions help broaden employee skill sets.  In creating Missions, employees explore their passions, practice leadership, and clarify their own career path.IV. Larger Purpose: Employees feel connected to a larger purpose due to community recognition and their personal impact on overall company CSR metrics.  The platformCapstone: GoodWorks 10
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg highlights “experience levels” and uses storytelling to place individuals in the larger context.V. Fun!: The power of play is harnessed to bring meaningful fun to the workplace.Benefits to Customers:I. Employee Engagement: With company-designed missions and dashboards, the customized experience helps employees associate the company with positive, meaningful activity.II. Knowledge Management & Collaboration: Through personal profiles and search functions, employees find and connect with others based on skills and interests.  By allowing employees to create missions, the company unlocks the creative knowledge equity of its people.III. CSR Education and Engagement: With a community tailored to the company’s CSR goals, employees self-educate and become active participants in the company’s overall CSR objectives.IV. External CSR Benefits / Brand Enhancement:  With extensive CSR reporting tools, companies can publish CSR results with regular reports, on websites, or in marketing material for external facing audiences.V. Recruitment and Retention: Employee accomplishment reports enhance the company’s reputation as a great place to work.  Employee turnover decreases as players engage in the platform.VI. Improved Work Processes: Beyond the Missions, employees become accustomed to a more productive, more collaborative working style.  The same teamwork and tools can be used for any type of project within the company, ultimately driving more efficient operations and increased product innovation.Next Generation Features:I. Shared library of industry-specific Missions.II. Integration with other corporate social networks, enterprise HR/Finance systems.III. Integration with other CSR software systems (e.g. GHG tracking).IV. Extension of community to company’s customers, suppliers, or partners.Capstone: GoodWorks 11
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergProduct Experience:The platform is most easily understood with a simple experience story. See Figure 8 below. Employee Jane signs on to find her initial personal profile already has her office location, home city, and cartoon avatar.  At any time she can add her interests and hobbies as well as customize her avatar, but she starts with zero experience in the company’s top CSR Mission Areas: Energy, Education, and Empowerment. Jane starts by playing a quick energy efficiency puzzle game to gain experience. Within a week, she’s completed some simple Missions like turning off her computer at night or requesting an LED light bulb for her desk.  Seeing how easy it is to earn points, Jane browses for team Missions and finds the Cool Offices Mission to find ways to reduce energy used for air conditioning.  She then uses the online forums to connect with the Mission team and kick off the project. When Jane helps finish the Cool Offices Mission, her profile now shows her as Energy Guru Level 3.  After the online community “newsfeed” highlights the mission and her higher level, co-workers reach out to ask her to join their Missions.  She has also earned 1,000 points that she can use for discounts on green home products. CSR Director John watches the Community Impact Dashboard and publishes monthly reports for the company’s external website.  When Jane reaches Energy Guru Level 5, John reaches out to encourage her to create her own Energy Mission.  John and other CSR managers review Jane’s Mission and give it experience and rewards points. Figure 8: GoodWorks Experience Story4.3 Concept BasisThe GoodWorks premise is based on extensive research on the trends and effects ofgaming, and was particularly inspired by Jane McGonigal’s TED talk on how gaming cancreate a better world.  According to McGonigal’s research, games are really good atgetting people to solve complex problems and games are helping humans to become amore collaborative species (Jane McGonigal: Gaming can make a better world, 2010).   Capstone: GoodWorks 12
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergMcGonigal essentially asks the question, “So what if we took game mechanics andapplied them to solving real-world problems?” This is the birth of the engagementeconomy where society leverages a corporation’s greatest asset, its people, and enablesthem to realize their latent potential for solving complex sustainability issues. This is a worldwhere people play for good work, where ordinary people achieve extraordinarily epic winsfor collective ends.4.4 Value ChainGoodWorks’ Value Chain is illustrated below in Figure 9. Figure 9: GoodWorks Value ChainThe GoodWorks Engagement Platform includes a base infrastructure, community andMissions software features that will be hosted on a cloud service. The GoodWorksmanagement team will engage in consulting and mission design where appropriate oroutsource this service to independent consultants or internal company HR/CSR teams tocustomize the software for the user base. Additional partnerships will be explored withsoftware providers such as carbon accounting mechanisms that add more robust featuresto the service and enhance the total user experience.Capstone: GoodWorks 13
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergValue is passed onto a corporation by empowering employees to take the lead in formingand completing company CSR goals.  Reaching CSR goals results in more engaged andproductive employees, higher brand value and loyalty, mitigation of regulatory risks, andthe ability to attract and retain talented employees.  All of these benefits lead to increasedshareholder value through higher profits and results also contribute to building a better andmore sustainable world.Data derived from user participation on the software platform will be compiled tosupplement a company’s CSR report for current and potential investors. Missions couldalso be sponsored by advertisers.  Advertisers deliver further value to users who engage inand complete CSR missions with extrinsic incentives such as Groupon style rewards orproduct discounts. Finally, NGO and community partners receive value through reachingCSR goals via employee-completed missions. These goals align with the participatingcorporate customers’ own CSR goals; therefore collaborative shared value is generated.4.5 Value for SustainabilityGoodWorks’ fundamental role in the value chain is to provide the tools and expertise thatenable people to collaborate, engage with their work, and make a positive difference in theword.  In terms of a sustainability framework, no single set of metrics captures all thepossible contributions to sustainability that this venture could inspire.  However,GoodWorks is committed to measuring tangible value provided by its business.  Theclearest way to measure such value is to track employee engagement and productivitywhile making sure that customers are achieving increased completion of CSR goals thatlead to profit driving innovations.The GoodWorks platform can integrate with corporate Human Resources and CSRtracking systems to ensure that participation in Missions achieves measurable results.  Where available, the best metrics to use are those developed by the company itself.  If nosuch metrics exist, GoodWorks consults with the company before launch to develop theappropriate performance metrics. Ongoing, GoodWorks will maintain its own differentiatedvalue as the experts in gamification for engagement in sustainability.  The GoodWorksventure will thrive as this expertise is realized in software systems throughout the corporateworld and beyond.Capstone: GoodWorks 14
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg5.0 Competition5.1 Competitive LandscapeThe strategy canvas below in Figure 10 visually demonstrates the priorities of GoodWorksin comparison to that of the competition, showing GoodWorks’ differentiating factors andunique offerings.  Points of differentiation include a playful interface, project managementtools, stimulating innovation, strong social networking, and fun, engaging missions.  Whileother platforms offer CSR tracking and reporting, none of them have features that focus onunlocking latent human potential using gaming dynamics and fun interfaces. Figure 10: Strategy Canvas5.2 CompetitorsGreenNurture is the clear first mover and closest competitor. It provides a web-basedplatform for organizations to achieve their sustainability goals through employee-initiatedprojects, offering a social networking component, a reward system powered byCapstone: GoodWorks 15
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergRecycleBank, and custom assessment and reporting features. The platform enables anorganization to analyze 30 variables related to how its employees conduct business anduses surveys to analyze how they interact with one another. Once the initial assessment iscomplete, the organization is assigned an overall dynamic score. GreenNurture targetscompanies that range from 10 to 10,000 employees, and recently announced a widerdeployment initiative with universities and municipalities (Mains, 2010).Yammer is a corporate enterprise social network platform that enables employees tocommunicate within the workplace and invite internal and external stakeholders to jointeams.  It also hosts forums for communication throughout the organization, and utilizesthese forums to solve various issues. Yammer is compatible with a variety of apps,increasing its user utility (Yammer, 2011).AngelPoints (AP) is an enterprise software developer that provides online tools to helpbusinesses engage their employees in an array of different CSR goals. The platformprovides a comprehensive window that allows employees to easily access, organize, andmanage their CSR objectives. AP’s clients have logged more than 10 million volunteerhours and engaged over 2 million employees in large-scale, world-class CSR andsustainability programs. AngelPoints’ sole focus on CSR gives it a more limited potentialmarket than GoodWorks, and less market agility (AngelPoints, 2011).Jive Engage is a social business platform that allows users to collaborate via internal-facingonline communities and to communicate with and gather market information fromcustomers using external-facing communities. It provides users with profiles and advancedsearch options to recommend partners for collaboration and topics in which a user may beinterested.  Users also gain experience and expertise points on their profile.  Jive tripled itsnumber of users and doubled its number of corporate customers in the 2009-2010 fiscalyear, and hopes to IPO in 2011, when it expects to achieve $100 million in annualrevenues (WSJ, 2010). Although specific pricing is unavailable and dependent oncontractual agreements, a representative indicated that Jive was a high-quality platform,and that low price was not a key differentiator (M. Davis, personal communication, May17th, 2011).Capstone: GoodWorks 16
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg5.3 Competitive AdvantageWhile other products focus on aspects of social networking, engagement, innovation, orCSR, GoodWorks is unique in combining all four.  No direct or indirect competitor hasstreamlined the process of turning good sustainability ideas into action-oriented, mission-style objectives that can be dynamically tracked and measured through a social interface.  By tying these missions directly back to overarching company objectives, the GoodWorksEngagement Platform allows each employee and their managers to understand howindividual participation impacts larger organizational CSR goals.GoodWorks differentiates itself through strengths in the following areas:• Fun, engaging missions• Personalized missions, avatars, and dashboard themes• Mission management tools• Player profiles with cumulative experience, awards, and achievement• Tradable virtual currency• CSR software packages with cross-platform customized avatars and profilesA comparison of GoodWorks to its competitors is outlined below in Figure 11.Capstone: GoodWorks 17
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 11: Competitive GridCapstone: GoodWorks 18
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg6.0 Marketing6.1 Marketing ResearchEnd-User Research: The first phase of research focused on validating the GoodWorksconcept and identifying primary features to be included in the design prototype. This wasachieved through an online survey among potential GoodWorks end-users(SurveyMonkey.com, 2011). 78% reported being somewhat, very or extremely likely to usethe GoodWorks platform. End users were most interested in the following features: onlinecollaboration tools for building Mission teams and managing the execution process,community leader boards and “newsfeeds” highlighting employee accomplishments, anddashboards and reports showing the impact of the missions. The common theme madeclear the need for more company-wide transparency regarding sustainability initiatives, asa majority of the respondents stated that the company they worked for had a CSR plan,but did not know what type of software or tools were used to support these initiatives.Moreover, the majority of the respondents stated that the biggest barrier to adoptingcompany-wide CSR initiatives was the lack of employee programs in place to promoteCSR practices. Lastly, nearly three quarters of the sample stated the Engagement Platformshould include education regarding global sustainability initiatives, confirming that anoptimal sales proposition to potential customers is the availability of consulting services forthe integration process.Customer Needs Research: After the initial product concept and prototype design werefurther developed, interviews were conducted with NetApp’s global sustainability director,Peter Perrault. Findings from these discussions helped to further identify the user needs ofa potential customer. Although there was interest in the ability to track sustainabilitycontributions and impacts more closely and increase employee engagement in theseefforts, there were concerns that employees would be reluctant to adopt and learn a newplatform. The conclusion of the analysis is that employee contribution towards company-wide sustainability is fragmented, that executive-level decision makers are the keyinfluencers for sustainability initiatives, and that there are a variety of adoption drivers,Capstone: GoodWorks 19
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stonebergincluding integration with existing corporate systems, measuring achievement of businessobjectives and return on investment. Although interest in the GoodWorks concept wasrelatively strong, revisions to the description are needed to ensure clear comprehension ofintended user benefits (P. Perrault, personal communication, April 22, 2011; P. Perrault,personal communication, May 13, 2011).6.2 Distribution and Pricing StrategyGoodWorks will market and sell its application as a standalone service to new markets andusers and as an application for existing platforms such as SalesForce via AppExchange,and Jive via its application developer community. Through this multi-channel approach,GoodWorks can leverage the existing platform’s marketplace and user base whileindependently reaching new markets. GoodWorks will charge a $36 per seat fee per yearand provide platform specific customization upon request to enhance the value andexperience of the GoodWorks service.6.3 Brand Promise, Positioning & ValuesGoodWorks’ vision is to transform the way people work by creating a workplace whereemployees are inspired, engaged and empowered to create a thriving and compassionateworld.Brand Promise: Employees Engage. Companies Prosper. Communities Thrive.GoodWorks leverages a corporation’s greatest asset, its people, and enables them tosolve sustainability issues. Fundamentally this is about unlocking latent human potentialthrough more effective communication and collaboration in order to transform the waycompanies choose to work. This is achieved through the GoodWorks EngagementPlatform that matches human creativity with meaningful work, enabling companies to trackand meet sustainability goals while realizing higher profits and happier employees.Positioning: Good Work is the Best BusinessThe GoodWorks turnkey solution specializes in using CSR goals to engage employees inmore productive work.  Through gaming dynamics, GoodWorks breaks down theboundaries between work and play and encourages employees to co-create interactivemissions (Projects with Purpose) that solve real-world problems, while simultaneouslyrealizing higher profits and strengthening brand equity. Through a customizable and flexibleCapstone: GoodWorks 20
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stonebergplatform, companies get up and running quickly, while the platform’s powerful trackingtools provide real-time metrics on the financial, environmental and social impacts.GoodWorks’ positioning statement is shown below in Figure 12: To socially responsible and employee centric companies who want to achieve an integrated bottom line, GoodWorks provides a powerful turnkey solution that enables companies to achieve greater profits, increased productivity and stronger brand equity by empowering its employees to take action through a more collaborative and engaging work environment. Figure 12: Positioning Statement6.4 Market SegmentationThe total addressable market analysis previously discussed places the initial market sizefor GoodWorks at approximately $852 million per year. The initial target customer will haveon average 2,500 employees, understand the importance of employee engagement, andhave CSR goals already in place. Further targeting is based on Bob Willard’s five-stagesustainability continuum (in Figure 4 above), which starts from the leadership’s mindsetwhere “green” initiatives are considered as expensive and bureaucratic threats in Stages 1,2 and 3, to recognizing them as catalysts for strategic growth in Stages 4 and 5. Based onthe nature and design of the platform, GoodWorks aims to initially target the companies inStages 3 that are seeking movement into stages 4 and 5. The initial target customer willhelp to evolve and refine the GoodWorks Engagement Platform, generating successstories that will be used to demonstrate its value. Once the platform attains credibility inthe market, GoodWorks will expand its customer base into more mainstream markets (seeFigure 13 below).Capstone: GoodWorks 21
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 13: Market Opportunity6.5 Customer ArchetypeThe target group, “People Centric”, have a global workforce and a strong company culturethat places an emphasis on sustainability and personal responsibility. Investing in thecompany, the community and the employees is the underlying theme for the “PeopleCentric” company culture. Employees that work for “People Centric” companies have likelyparticipated in volunteer activities through company driven initiatives, as paid volunteertime is one of the company perks and highly encouraged. The company fosters anenvironment of innovation and teamwork, encouraging workers to take a few hours a weekfor their own projects, and celebrating achievements and milestones with companyparties. They have also been named one of the “best places to work” by Fortune Magazineand proudly promote this title.Capstone: GoodWorks 22
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergGoodWorks provides this customer with the tools to actively involve its entire workforce inits sustainability initiatives and a dynamic network to share ideas, creativity and innovation,while enabling the seamless integration of these efforts to the company’s customer-facingwebsite and CSR report.6.6 Promotion & Sales StrategyTo achieve greater market penetration and address the complexities of company-wideadoption, GoodWorks is designed to work well as a standalone service, but just as wellwhen integrated into another system. GoodWorks may choose to initially partner withsmaller companies in the San Francisco Bay Area and roll the product out through asubset of offices as a pilot project. This will enable GoodWorks to test its value proposition,technology, and feature set with real customers.Then, GoodWorks will pursue integration and distribution partnerships through enterpriseplatforms such as Jive or SalesForce, in order to quickly and effectively access the marketand grow. GoodWorks will leverage their data and platforms in a unique way to create acustomized and premium service for its user base. In this case, the distribution partnersbecome part of the GoodWorks customer set and will be served accordingly. GoodWorkswill also develop an affiliate program in order to partner with companies who provideexpert change management consulting services to further elevate the customer’s outcomebased on their specific needs.What makes GoodWorks unique is the executive team’s depth of knowledge and breadthof experience in sustainable management. In order to position GoodWorks as a leader inthe sustainability space and tap into and leverage its target market as GoodWorksevangelists during the launch, the following strategies will be implemented.• Engage key influencers in target organizations, change management and sustainability communities and get them to test and promote GoodWorks in order to demonstrate momentum.• Provide a compelling story on how GoodWorks is the “future of how organizations choose to work” and challenge stakeholders to see if they agree.• Leverage a combination of traditional and social channels to communicate with these constituencies.Capstone: GoodWorks 23
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg7.0 Business Model7.1 Three Revenue StreamsI. Customization: GoodWorks helps its customers develop and implement a solution tailored to their business imperatives.II. Consulting: GoodWorks’ sustainable management experts offer a range of service levels to addresses the breadth and depth of its customers’ needs.III. Subscription: GoodWorks’ platform is available on a per seat subscription basis.GoodWorks derives 92% of its revenue from the annual employee subscription fees withthe remaining 8% coming from consultancy and customization shown graphically below inFigure 14. GoodWorks assumes that as the target audience becomes less competent insetting missions related to sustainability, that GoodWorks consultancy services willcontribute to a greater percentage of revenue. This is not reflected in the revenue figures,as this section of customers will be targeted after the company’s fifth year of operation in2017. Figure 14: Revenue StreamsCapstone: GoodWorks 24
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg8.0 Financials8.1 Financial ProjectionsGoodWorks’ highly scalable subscription model allows the company to grow its revenue atcompound annual growth rate (CAGR) of 75% over the first five years of operation, withrevenue reaching over $17 Million in 2017 (see below in Figure 15). Figure 15: Revenue ProjectionsProduct development and beta testing is estimated to take 18 months with theGoodWorks platform coming to market in the first quarter of 2012. GoodWorks’ financialprojections assume that the company will become profitable at the end of 2014, threeyears after coming to market, with the company becoming cash-flow positive in the fourthquarter of 2015. GoodWorks profits reach over $17 Million in 2017, five years afteroperations with cumulative cashflow surpassing $15 Million in the same year. A summaryof financials is provided below in Figure 16.Capstone: GoodWorks 25
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 16: Financial Summary8.2 Break Even AnalysisAs costs begin to stabilize in 2017, GoodWorks’ breakeven point is 123,646 users, whichtranslates into approximately 49 companies with 2500 employees as shown in Figure 17below. Figure 17: Breakeven Summary8.3 Capital RequirementsAs can be seen from the GoodWorks return map below in Figure 18, the company requiresapproximately $500,000 to develop the platform with an additional $1.5 Million needed togrow the business until it is cashflow positive in 2015. GoodWorks assumes that the first$500,000 will be raised through friends and family by the end of 2011 with the remaining$1.5 Million being raised by the end of 2012 from angel investors. With low capital costsand a scalable revenue growth, GoodWorks predicts that the company will be able to payinvestors more than three times their money within a four year period. GoodWorks willavoid raising funds from venture capitalists in order to maintain control of how thecompany chooses to grow.Capstone: GoodWorks 26
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 18: Return Map8.4 ExitGoodWorks intends to grow its revenue stream considerably by 2020 before looking for astrategic buyer to purchase the whole or part of the business. GoodWorks believes thatthe Engagement Platform will be an attractive investment for enterprise softwarecompanies such as SAP and will also be a strategic purchase for social networkingcompanies such as Facebook or Google who are looking to enter the corporate space anddevelop existing products into social networks with a purpose.Capstone: GoodWorks 27
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg9.0 Management & Organization for VentureLaunch9.1 Management TeamThe organizational design of GoodWorks will embody and reflect the transformationalnature of its service.  Not only will GoodWorks help customers create a new way for theiremployees to engage with each other and their company, GoodWorks will also employ itsown platform to work with each other using the paradigm of self organizing teams andleveraging cross functional relationships throughout the organization.  The management team’s organization and experience are outlined below in Figure 19.Capstone: GoodWorks 28
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 19: GoodWorks’ Management Team9.2 Advisory Board – Target MembersI. Dr. Jane McGonigal is a visionary game designer and futurist. She is harnessing the power of Internet games in new ways to help solve some of the biggest challenges facing our world today and tomorrow.  In her groundbreaking new book: Reality is Broken: Why Games Make Us Better and How They Can Change the World (Penguin Press), Dr. McGonigal explores the power and future of gaming and reveals how its collaborative and motivational aspects are being used to solve some of the most difficult challenges facing humanity.II. Richard Price - founder and CEO of Academia.edu, a social network for academics.Capstone: GoodWorks 29
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergIII. Cynthia Scott - VP of Organizational Strategy at Saatchi & Saatchi S. and Professor of Leadership at Presidio Graduate School. IV. Richard Muncaster - VP of Corporate Strategy at KlickNation, a producer of social games for Facebook.Capstone: GoodWorks 30
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg10.0 Appendix10.1 Financial AssumptionsGoodWorks has made a number of assumptions in order to forecast financial projections,which can be found on the Assumptions page of the GoodWorks Financial Spreadsheet.The revenue figures assume a subscription price of $3 per employee. This translates into$36 per employee per year. The company is able to justify this price by showing that thecost of the platform is 0.1% of the cost of an average employee of the target audience.GoodWorks’ ability to increase productivity and reduce turnover provides an added valueto its subscribers rather than a cost center.GoodWorks has also assumed that the average number of employees per company will be2,500. This fits into the companys policy of targeting small to medium sized companies.GoodWorks also assumes that a fee of $2,000 will be paid by each company to install theplatform. Additionally, GoodWorks has assumed that 60% of its clients will need 60 hoursof consultancy work per year and that the hourly rate would be fixed at $150. It was alsoassumed that 20% of GoodWorks’ clients will need customization work of 40 hours peryear, at $150 per hour.For Headcount assumptions please see the Assumptions page of the GoodWorksFinancial Spreadsheet.Capstone: GoodWorks 31
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg10.2 GoodWorks Engagement Platform Screenshots Figure 20: GoodWorks CEO Challenge Figure 21: Design a MissionCapstone: GoodWorks 32
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 22: Player Dashboard Figure 23: Player Skills ProfileCapstone: GoodWorks 33
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg Figure 24: Company Progress DashboardCapstone: GoodWorks 34
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg11.0 ResourcesAngelPoints. (2011). AngelPoints Solutions. Retrieved May 17, 2011, from http://www.angelpoints.com/index.php?page=productB Corporation - Home. (n.d.). Retrieved May 17, 2011, from http://www.bcorporation.net/Bunchball. 2010.  Gamification 101: An Introduction to the Use of Game Dynamics toInfluence Behavior.  Retrieved from: http://www.bunchball.com/gamification/g101-banner.shtmlCERES. (2010). The 21st Century Corporation: The CERES Roadmap for Sustainability.Creative Commons. CorporateRegister.com Reports. (2011, March 9). Retrieved March10, 2011, from http://www.corporateregister.com/reports/DavisMason. (2011, May 17).CorporateRegister.com Reports. (2011, March 9). Retrieved March 10, 2011, from http://www.corporateregister.com/reports/Environmental Leader. (2009, July 19). GRI Touts 46% Increased Use of GRI Guidelines InSustainability Reporting.Environmental Management & Energy News · EnvironmentalLeader. Retrieved February 18, 2011, from http://www.environmentalleader.com/2009/07/16/gri-touts-46-increase-use-of-gri-guidelines-in-sustainability-reporting/Employee Engagement: What’s Your Engagement Ratio? (2008). Gallup Consulting.Retrieved from http://www.gallup.com/.../Employee_Engagement_Overview_Brochure.pdfESA. (2011). The Entertainment Software Association - Video Games & the Workplace.Retrieved February 18, 2011, fromhttp://www.theesa.com/gamesindailylife/workplace.aspFeldman, S. (2010, October 29). Carbon reporting countdown. Sustainable Industries.Retrieved February 14, 2011, fromhttp://sustainableindustries.com/articles/2010/10/carbon-reporting-countdownGlobal Reporting Initiative. (2011). News 2011 - 50% rise in companies using software tomonitor sustainability performance says new survey. Global Reporting Initiative. RetrievedCapstone: GoodWorks 35
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergFebruary 18, 2011, from http://www.globalreporting.org/NewsEventsPress/LatestNews/2011/SurveyOnSustainabilitySoftware.htmGreat Place to Work® Institute. (2011). Retrieved March 10, 2011, from http://www.greatplacetowork.com/what_we_do/lists-us-bestusa.htmGreenNurture. (2010). GN Platform. Retrieved May 17, 2011, from http://greennurture.com/gn-platform.aspxGRI Portal - News 2011. (n.d.). Retrieved February 14, 2011, from http://www.globalreporting.org/NewsEventsPress/LatestNews/2011/SurveyOnSustainabilitySoftware.htmHicks, J. (2010, May 13). CSR Reporting—and Interest in What It Shows—Is GainingSteam. Retrieved from http://www.triplepundit.com/2010/05/csr-reporting—and-interest-in-what-it-shows—is-gaining-steam/Jane McGonigal: Gaming can make a better world. (2010). Retrieved from http://www.ted.com/talks/lang/eng/jane_mcgonigal_gaming_can_make_a_better_world.htmlKinnicutt, S., & Mirvis, P. (2008). Structure and Strategies: Profile of the Practice 2008:Managing Corporate Citizenship. Boston College Center for Corporate Citizenship.MainsDerrick. (2010). YouTube - GreenNurture Interviewed by Presentmyself.com.Retrieved May 18, 2011, fromhttp://www.youtube.com/watch?v=m7lKJfds8wU&feature=player_embedded#at=35McGonigal, J. (2011, February 17). Jane McGonigal: Video Games: An Hour A Day Is KeyTo Success In Life. The Huffington Post. Retrieved February 17, 2011, from http://www.huffingtonpost.com/jane-mcgonigal/video-games_b_823208.htmlMember List | BSR | Sustainability, Corporate Social Responsibility Network andConsultancy. (n.d.). Retrieved March 9, 2011, from http://www.bsr.org/en/our-network/member-listMIT Sloan Business of Sustainability - Page 4-5. (n.d.). Retrieved February 11, 2011, fromhttp://www.mitsmr-ezine.com/busofsustainability/2009#pg7Capstone: GoodWorks 36
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergPema, G. (2010, October 21). Study: Video Games Lead To Workplace Success.International Business Times. Retrieved February 18, 2011, from http://www.ibtimes.com/articles/74352/20101021/video-games-training-employers-workplace-study.htmPerformance Management Blog - smartKPIs.com. (2010, August 6). Retrieved February15, 2011, fromhttp://www.smartkpis.com/blog/2010/08/06/employee-engagement-and-organisational-performance/Perrault, Peter. (2011, May 29). Retrieved from http://www.google.com/firefox?client=firefox-a&rls=org.mozilla:en-US:officialSchwartz, A. (2011, February 16). The Secret Service Plays Video Games to Prepare forTrouble. Fast Company. Retrieved February 17, 2011, from http://www.fastcompany.com/1728445/virtual-tiny-town-secret-service-uses-video-games-to-prepare-for-threats?partner=rss&utm_source=pulsenews&utm_medium=referral&utm_campaign=Feed%3A+fastcompany%2Fheadlines+%28Fast+Company+Headlines%29Seriosity: The Enterprise Solution for Information Overload. (n.d.). Retrieved February 18,2011, from http://seriosity.com/Sustainability: The “Embracers” Seize Advantage - Special Report - MIT SloanManagement Review. (n.d.). Retrieved February 11, 2011, from http://sloanreview.mit.edu/special-report/sustainability-advantage/?utm_source=Publicaster&utm_medium=email&utm_campaign=Sust%20Enews%20Feb%2010%202011&utm_term=http%3a%2f%2fsloanreview.mit.edu%2fspecial-report%2fsustainability-advantage%2fReeves, B., & Read, J. L. (2009). Total Engagement : Using Games and Virtual Worlds toChange the Way People Work and Businesses Compete. Boston  Mass.: HarvardBusiness Press.Robison, J. (2010, August 5). Engagement, Wellbeing, and the Downturn. GallupManagement Journal. Retrieved from http://gmj.gallup.com/content/141722/engagement-wellbeing-downturn.aspx  SurveyMonkey.com. (2011). Retrieved from http://www.surveymonkey.com/Capstone: GoodWorks 37
  • Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill StonebergTowers Perrin. (2008). Closing the Engagement Gap: A Road Map for Driving SuperiorBusiness Performance. Global Workforce Study 2007-2008 (p. 32). Retrieved fromwww.simnet.org/resource/group/.../towers_perrin_global_workfor.pdfWillard, Bob. (2009). The Sustainability Champions Guidebook: How to Transform YourCompany (First Edition.). New Society Publishers.Worthen, Ben. (2010, May 18). Jive Software Hopes to Juke Toward an IPO. Wall StreetJournal. Retrieved May 17, 2011, fromhttp://blogs.wsj.com/digits/2010/05/18/jive-software-hopes-to-juke-towards-an-ipo/Yammer. (2011). Product: What is Yammer? Retrieved May 17, 2011, from https://www.yammer.com/about/productCapstone: GoodWorks 38