nickelring OAP final submission
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nickelring OAP final submission



Final submission of team Data Insights

Final submission of team Data Insights



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nickelring OAP final submission nickelring OAP final submission Presentation Transcript

  • nickelring corp. OAP Final Submission Team Data Insights 20 May 2012 1 Confidential
  • Executive SummaryBackground• nickelring is a firm committed to the vision of developing a meaningful data analytics solution for SME’s• A team of 11 motivated individuals (originally 14) from 7 countries have worked extensively over the last 3 weeks to develop a compelling proposition that addresses a “real-need” of the target clientInitial hypothesis• There is a gap in the market – The data analytics needs of SME’s around the world are significantly underserved• There is a market in the gap – This represents a large enough market for a sustainable commercial ventureKey milestones achieved during the first three weeks• Market sizing – There is sufficient evidence that Data Analytics is a large, growing business and that our addressable market (SME’s) is of significant size (this is not a niche play) that is currently under-served• Market testing – The feedback (through survey & interviews) validated our hypotheses that current systems are not “easy to use”, with average satisfaction levels among users and highlighted interesting aspects that will need us to pivot• Competitor analysis – While there are a number of players in this space, there is a lack of a genuine focus on the needs of the SME’s with products offering little differentiation and with low perceived value• Value proposition – At nickelring ( we intend to develop a unique product for the SME’s that will differentiate on three aspects – The user experience (“Ease of use” to be specific), time to market (decision making & relevance) & market leading ROI (balancing the price-value equation) We will pursue this initiative into the OEP phase 2 Confidential
  • Our process Opportunity Analysis Project Opportunity ExecutionPhases Project Proposition Development Proposition TestingKey tasks  Team formation – Assignment of  Finalise proposition – clearly  Develop prototype roles & responsibilities articulate points of  Develop service proposition  Agree on communication tools differentiation  Develop marketing strategy  Develop questionnaire & deploy  Market test proposition through  Develop distribution strategy Survey & face-to-face interviews  Develop functional website  Develop financial model  Pivot and refine proposition  Educate “diverse” team on  Outline operational risks and fundamentals of “Data Analytics”  Develop business model canvas mitigation plan  Conduct competitor analysis  Outline market level risks & mitigation plan  Develop high level market sizingOutcomes  Initial feedback from potential  Finalised value proposition  Prototype customers  Results from market testing  Cost benefit analysis  Market sizing  Execution plan 12 May 19 May 3 Confidential View slide
  • Why SME’s?• Empirical research has highlighted that SMEs currently have 4 critical technology needs 1. An accounting package 2. An email system 3. A website 4. A set of productivity tools (Excel, Word, etc.,)• It is our hypothesis is that there is a fifth need and that is around the need to better understand their data - predominantly financial and customer/sales data• The systems that are currently on offer are – Too technical to implement – Reasonably expensive – Difficult to change and are quite static – Unable to handle multiple, unstructured data sources in an easy to use manner – Not intuitive• However, technology has now advanced such that cloud based solutions delivered in SaaS/PaaS format make it affordable to develop a meaningful solution for SMEs.• Most software firms aim to service the large enterprise- there is a big gap in the SME space 4 Confidential View slide
  • Selected survey results (N=25) Extensive focus on sales & forecasting – revenue generation avenues Cost of tool is important, but A startling response- interviews set with 85% scoring confirm not 3 or below necessarily “cheap” 5 Confidential
  • Summary of interview feedback• The team conducted 15 interviews in total with a range of firms in Singapore, USA, South Africa, India, Italy, etc.,• Sectors were varied (as our proposition is vertical agnostic) – Law firm, Chemical manufacturer, Supply Chain management product developer, Government R&D, IT hardware solutions, etc.,• Key learning: – Ease of use is the single most important factor emerging as a client need – Price is not the most important consideration: Customers are willing to pay for a good quality product, i.e., this is not a commoditized market – Data availability and accuracy is a major concern: While the overall concept was well received, significant concerns were raised on this point and we were requested to try and develop something that could potentially address this basic issue. – Response time and security (data privacy) were raised as key concerns for cloud based solution – Some respondents were unaware of appropriate BI tools and/or did not believe they needed one – Excel is the primary substitute at most firms for data analysis 6 Confidential
  • Hypothesised market size* Total number for firms in Tier 1 the world - ~ 500 million Total number of SME’s in the world • ~90% of registered firms are SME’s Tier 2 • ~450 million SME’s globally SME’s who are active & material - ~ 90 mil • There are ~20% are inactive SME’s and Tier 3 40% are “mom & pop shops” Target Market Analysis • ~20% are sizeable firms with no critical need for Data Analytics (DA) / Business Intelligence (BI) tool nickelring • ~25% are estimated to have an existing solution target • Profile of target client market • Revenue p.a.: USD 1 mil + • Number of employees: 10 – 250 • Target market for nickelring – ~50 million firmsOur proposition is global in nature with a large target market! 7 Source: Based on nickelring research and estimates Confidential
  • Industry analysis highlights that this is an attractive market Barriers to entry Threat of new entrants • This is a very lucrative market globally with strong growth forecast (>15% pa over the next 5 years) & will attract a number of new entrants • However, effective execution and access to distribution channels is a challenge • Strength of threat: High Supplier power Supplier power Industry rivalry Industry rivalry Buyer power Buyer power• Technology is continually maturing & • A fragmented market with – large • Typical SME management team will hence there is a need to constantly adapt global players & niche / boutique firms have limited technology and/or analytical resources• Recruiting resources (especially for • Large players dominate big corporates startup) is a challenge space but are weak in SME’s • SME’s will appreciate simple product with good service at affordable price• Funding will be a constraint, but not a • Niche firms lack scale & differentiation point show-stopper for unique proposition • SME market under-served • Strength of threat: Low• Strength of threat: Medium • Strength of threat: Low Substitutes • Limited substitutes to BI/DA tools for an organisation to glean insights • Excel is perhaps the most popular tool, especially in the SME space • Strength of threat: Low 8 Confidential
  • Competitor analysis Competitive landscape1 Large players that service big enterprises; Leverage other products; Not suited for SME’s (despite promise) 2 Basically reporting / dashboard systems; Low level differentiation; highly fragmented • Trad. Players represent the larger firms & “Open” represents smaller firms • Analysis will enable nickelring pricingSource: 1)Source: Lowering the Cost of Business Intelligence With Open Source2) nickelring analysis based on competitor pricing information 9 Confidential
  • nickelring – Value proposition Strategy Canvas* High Capability Low Value Attributes By providing advanced analytics and choice for efficient deployment, nickelring aims to democratize the use of analyticsConcept: Blue Ocean Strategy 10 Confidential
  • Risks and mitigations Based on the analysis* of 32 startups that failed, the following were the top 5 risks that were identified for new ventures. Here is how we plan to mitigate the risk Key Risks Mitigating activities Ignore customers • Deploying our survey to over 300 SME’s globally • Conduct at least 25 face-to-face interviews with target customers • Build relationships with 5-10 clients to test proposition on an ongoing basis No market need • Our research and credible market reports (by IDC, Gartner, IBM) clearly indicate that: – There is a need for data analytics globally and this is a growing market – SME market is significantly under-served – The market is large and profitable Not the right team • We have a built a balanced team that consists of motivated individuals that are representative of key organisational functions (Product, Technology, Marketing, Finance, Operations, etc.,) • During the first two weeks the team members have displayed an affinity to high performance and those who could not contribute found themselves self-selecting out of the team Poor marketing • We are working on our marketing strategy in conjunction with product development • The emphasis of the message will be on key value attributes – Simple, Secure & Easy to use Need business model • We have a good grasp of our business model (that is being fine tuned) – Both in terms of solution delivery and the economics of operations • We will elaborate on this during the OEP presentationSource: We excluded “Ran out of cash”, which was the 5th reason, as it is not yet applicable for us. 11 Confidential
  • Next steps• Commence work on OEP – Finalise proposition including product features – Develop technical architecture – Develop product prototype – Engage alpha & beta testing clients – Develop marketing strategy – Evaluate and build distribution partnerships – Develop financial business case 12 Confidential
  • Appendix 13 Confidential
  • Team compositionName Location Work experience Core competence EducationAlessandro Dublin 2 Years Software Engineering (C++, VHDL) BSc, MScArnaud Tahiti, French 13 Years Marketing & Business development BSc, MSc PolynesiaBharath Singapore 2 Years Software Engineering, Database BSc Eng. AdministrationDeepak Singapore 8 Years Software Engineering, Machine Learning BSc, MSc, MTec TechniquesFilip Antwerp Area, 10 Years Business Consultancy BSc Eng. BelgiumMatej Slovenia, EU 10 Years Software Engineering, System Administrator BSc. MathMunir NC, USA 15 Years PLM, Business Analytics (Data Mining) BSc. Eng , MBAPatrick CA, USA 1 Year Software Engineering Reading BSc. EngRomil New Delhi, 10 Years Internet Marketing & Branding, E-commerce BSc (HM), MTM India and Web developmentSajith Singapore 5 years Software Engineering, Data Mining, BSc (Hons) Eng. SemanticsSandeep Singapore 14 years Strategy Consulting Engineer & MBA Business case development 14 Confidential
  • About nickelring Why nickelring? You can visit us at • Nickel is a chemical element with the chemical Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge (Source: Wikipedia). What does that have to do with Data Analytics for SME, you ask? • The answer lies in the underlying characteristic of Nickel. We all know that Nickel is an easily available metal that was widely used in manufacturing… well a nickel (US currency). However, did you know that Nickel is also a key component of superalloys that are used in the aerospace, industrial gas turbine and marine turbine industry? Today, over 60% of the global Nickel production is consumed in making nickel- steels used as part of high-strength infrastructure. Moreover, under appropriate treatment Nickel can obtain the luster of silver. • One simple metal – multiple benefits! • Similarly, we are committed to developing a simple solution that will provide you and your organization with multiple benefits. We intend to indulge in a virtuous cycle of listening to you and taking your feedback onboard to develop insanely great products. And hence the name – nickelring! 15 Confidential
  • Supporting data points – Data Analytics is a booming market (1/2) More data required to support decisions – McKinsey 2011 Survey* • Executives say their companies still rely upon a mix of data and experience in decision making, although they are increasingly looking to analytics tools for support • Despite the promise of big data to reshape strategy and decision making, more than 75 percent of respondents to this survey report that their organizations’ greatest benefits from data use flow from clear and timely reporting of financial and performance metrics – Only about half say they seek to use data to provide new business insights or develop new information-based products and services • Respondents highlight three barriers to more effective use of data and analytics : – A cultural preference for experience over data; – A lack of skills in synthesizing and translating the analytics and data for decision makers and – Concerns that the data quality is poorSource: McKinsey & Co online survey conducted from October 4 to October 14, 2011, and generated responses from 927 executives. 16 Confidential
  • Supporting data points – Data Analytics is a booming market (2/2) • Analytics is the application of computer technology, operational research, and statistics to solve problems in business and industry* • Analytics is a rapidly growing industry with a lot of existing and emerging players. According to IDC analytics market will be $33.9 Billion in 2012 – growing at 8+% since 2011. • Most of the advanced analytics market is currently owned by big players such as IBM, Oracle, SAS, Microsoft, SAP, Microstrategy, etc. • Most consumers of advanced analytics capabilities are medium-large size enterprises as these solutions are resource-intensive in terms of hardware, software and licensing costs. Excel still the predominant solution in finance – WesierMazars study of Global Insurance related firms 2011 • The WeiserMazars study found that 87% of the CFOs they surveyed relied heavily on Excel spreadsheets in their financial close and also in their FP&A activities, as well as for budgeting and reporting.Source: Wikipedia 17 Confidential