4. Tech comes to home
Business model canvas
only to diagnose
construction
problem
5. Day Month Year
No.
Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?
Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers?
Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established?
Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model?
How costly are they?
What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments
Our Distribution Channels? Customer Relationships? want to be reached?
Revenue Streams? How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
What are the most important costs inherent in our business model? For what value are our customers really willing to pay?
Which Key Resources are most expensive? For what do they currently pay?
Which Key Activities are most expensive? How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
5
6. Tech comes to home
Business model canvas
only to diagnose Not profitable
construction
problem
9. Not financially
Tech comes to home
Business model canvas feasible with cost
only to diagnose
construction structure / revenue
problem
stream
Diagnose auto body
Too difficult to
repairs with picture Visit 10 local auto
accurately assess
uploaded to web for body shops
damage from a photo
bid
Interviewed:
9
10. Re-Interviewed:
Shadowed:
15-90 3-4
minutes per estimate every day
10
16. furnissj
Jordan
Furniss
Customer
Amount
From
Date
furnissj@autobid.com
Join
AutoBid
Plus
Smith,
John
$895.85
Geico
7
Nov
2011
Account
seTngs
Sign
out
Richards,
John
$5,336.71
State
Farm
1
Nov
2011
Petersen,
Sco?
$2,986.28
All
State
26
Oct
2011
Wille,
Mike
$7,542.99
Geico
25
Oct
2011
Liddle,
Steve
$627.66
Bear
River
25
Oct
2011
Corbridge,
Chase
$1,294.45
State
Farm
22
Oct
2011
Brown,
Stephanie
$519.07
Progressive
15
Oct
2011
17. furnissj
Customer
Amount
From
Date
Smith,
John
$895.85
Geico
7
Nov
2011
Original
Preliminary
EsWmate
Vehicle:
1999
SUBA
Legacy
L
4D
SED
4-‐2.2L-‐FI
Black
Customer:
SMITH,
JOHN
Line
OperaWon
DescripWon
Qty
Extended
Labor
Paint
Price
$
1
REAR
BUMPER
1.0
2
R&I
bumper
1.0
3
Bumper
1.0
2.4
Category
Basis
Rate
Cost
Body
Labor
2.0
hrs
@
$42/hr
84.00
Paint
8.0
hrs
@
$42/hr
302.44
Grand
Total
386.44
Import
To
Audatex
18. furnissj
ImporWng…
EsOmate
Successfully
Imported!
View
in
Audatex
19. Tech comes to home Not financially
to diagnose Business model canvas feasible with cost
maintenance need/ construction structure / revenue
collision repair stream
Diagnose auto body
Too many variables
repairs with picture Visit 10 local auto
that bids can’t be
uploaded to web for body shops
given from a photo
bid
SaaS that can convert MVP solves a huge
Shadowed body shops
between all major headache for the
and created a MVP
estimating software shops!
19
20. Time spent by employees re-entering bids
Yearly
$540,000,000
300 hours/year shop average
60,000 US body repair shops
20
21. 8 Commitments 3 States
This is wonderful!
–Owner, Sergio Martins
$2.5 M
When can we start using this?
–Owner, James Nichols
$2.5 M
This is a serious thing for
the auto industry.
–Owner, Ray Banks
21
$1 M
24. Day Month Year
No.
Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?
Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers?
*Signing up Personal
Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established?
Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model?
How costly are they?
clients Time account
*Developing saving reps Auto body
APU shops
lean SaaS
Solutions
Eliminate
human
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships? error Through which Channels do our Customer Segments
want to be reached?
Estimating *Sales
Revenue Streams? How are we reaching them now?
How are our Channels integrated?
Software Which ones work best?
Which ones are most cost-efficient?
Software: groups
How are we integrating them with customer routines?
platform
*Audatex Increase
*CCC Productivity *Direct
*Mitchell sales
What are the most important costs inherent in our business model?
Hosting and For what value are our customers really willing to pay?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what do they currently pay?
How are they currently paying? Monthly Pay per
Development How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
recurring use
fee
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
24
25. Worldwide
$1.5 Billion / year
$199/month * 625,000 shops
TAM
North America, Europe, China
SAM $816 Million / year
$199/month * 340,000 shops
Target
Market Largest 10%
$81 Million / year
$199/month * 34,000 shops
25
26. Lessons Learned
Build an MVP asap
Shadow to Learn
Fail Fast
Flaws cannot be Hidden in the Canvas
26
27. Chase Corbridge – CEO Advisors
• Security One Scott Petersen-Industry Advisor
• Bulls Eye Pest Control
Robert Wille- Technical Advisor
• Incite Marketing
James Nichols- Industry Expert
Mike Wille - CTO
• Bamboo Forever Peter Hamilton – Programmer RoR
• Raging Bull Marketing
• Platinum Protection
Jordan Furniss - COO
• Vivint
• Façade Clothing
• Dowser
Taylor Moss – VP of Sales / front end web developer
• Klymit
• TruConnect Mobile
• Oak Strategy Partners
27
29. “The Big 3”
There are presently five companies in the United States that
sell Estimatics: CCC, Mitchell, Audatex, Web-Est LLC (“Web-
Est”), and Applied Computer Resources, but the three major
competitors in the Estimatics market today are CCC, Audatex
and Mitchell, which collectively hold the lion’s share of the
market — approximately 99% — thus earning the nickname, the
“Big Three.”
From the FTC’s documentation of their case against CCC.
http://www.ftc.gov/os/caselist/
0810155/090309cccmitchellpublicopinion.pdf
29
31. The CIECA suite of exchange standards/messages are based on XML,
eXtensible Markup Language. The strength of XML is that it provides a
generic way to process data on the internet and an efficient way to transfer
data between applications and business partners.
CIECA refers to these standards/messages as the BMS (Business Message
Specification). In the Collision Repair Industry, CIECA BMS/XML provides a
foundation for real-time exchange of data between repairers, insurers, car
rental companies, parts & materials providers, and more.
Implementing the BMS standards within the collision repair industry results
in more efficiencies, consistencies, cost savings, and vehicle owner
satisfaction - saving the industry time, effort, money, and customers.
The BMS/XML includes messages for transactions relative to Vehicle Damage,
Glass, Rental, Salvage Assignments, Estimates, Salvage Dispositions,
Attachments (images), Parts and Materials Procurement, Repair Status,
Authorizations, Invoicing & Statements, Rental Locations, and Subrogation.
Twice annually CIECA produces a Release Package which includes the BMS,
the XML schema, and the Code Lists. This provides developers and business
partners with predictable systems development cycles
http://www.youtube.com/watch?feature=player_embedded&v=PwL3FnRBHtQ
31
32. SEMA Show takes place October 30 - November 2, 2012 at the Las Vegas
Convention Center.
The SEMA Show is the premier automotive specialty products trade event
in the world. It draws the industry’s brightest minds and hottest products
to one place, the Las Vegas Convention Center. In addition, the SEMA
Show provides attendees with educational seminars, product
demonstrations, special events, networking opportunities and more.
SEMA Show 2011 drew more than 60,000 domestic and international
buyers. The displays are segmented into 12 sections, and a New Products
Showcase featured nearly 1,500 newly introduced parts, tools and
components. In addition, the SEMA Show provides attendees with
educational seminars, product demonstrations, special events,
networking opportunities and more…
32
33. APU Solutions is the technology leader for the insurance,
collision-repair and alternative parts-supply industries.
APU's web-based network provides nationwide parts
availability, quality, pricing and procurement, plus tools to
track and manage Alternative Parts Utilization.
• PartsNetwork
• SubroNetwork
• TotalLossNetwork
• DataNetwork
33
34. Employee work time spent on entering estimates
* 50 min/bid * 30 bids/month = 25 hours/month
* 25 hours * 12 months/year = 300 hours/year
* $30/hour * 300 hours = $9,000 year per shop
* $9,000/shop * 60,000 shops = $540,000,000
34
35. Specifications:
Estimating industry just beginning to embrace SaaS
estimating platforms. Wide open spaces for SaaS solutions
that improve the functionality of these estimating
platforms.
Peter Hamilton – Back-end engineer
140 hours to working MVP
1-2 months
Ruby on Rails development of the XML code
35