Columbia B7739-002Day 2 - Advanced EntrepreneurshipApril 17, 2012Steve BlankBob Dorf
Welcome to Day 2! Quick Announcements ● Please sit with your team members ● Name cards are helpful! Please continue to put them up ● Remember to sign in when the sheet is passed around ● Please grade and provide comments to the other teams‟ presentations ● Yesterday‟s lecture presentations will be emailed or available on angel today, including Alexander Osterwalder‟s presentations. Lecture slides are not available prior to the lectureOrder of Presentations 7. Jiae1. YSN 8. Factabase2. TVM Technologies 9. eFood3. Table Compass 10. Digital Exchange Network4. Social Crowd 11. Diagnosly5. Mobile Marketing 12. Bakamba6. Kadak 13. Pulze 2
Technology for medical and comfort problems of the feet Advanced Entrepreneurship Day 2 April 17, 2012 Interviewed 35 people (end-users) Team Brian Vogt Doug Carlson Mohamed Maimouni AG Crum Gabriel Giles Sameer Kotak
TEAM NAME HERE FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 Get, keep, grow? Partners? Activities? Customer’s End-users: PR, Shoe mfg.s/ Customer problems? End- branded captivity Most important? branders by input, IP users: foot sweat, Partners: Men, dress & region , filings, beta hot, cold, fatigue. Convince of business casual development development, , su Partners: unique value for ppliers differentiation end-users Archetypes? Suppliers? (1) Sought med Component Customer needs? (2) UnSought med mfg.s, Ventiva Comfort, medical / (3) Tech „comfort‟ Profitability growth Getting? Reach segments? Technology, Resources? Product features? Established Job to get done? manufacturing Development Battery powered partner retail Enable comfort Giving? partner, seed shoe sole outlets (brick & and productivity Differentiation funding ventilation, cooling, mortar) and price heating, massage Making money & pricing model? Inherent in our model? $40mfg‟ed, 80 soles, 200 shoes, 400 retail Variable material, mfg overhead 400 retail 250 retail
Market size • Medical (sweat) – Hyperhidrosis, 1-3% impaired • General (sweat) – comfort, 10-30% problematic • $14B global … high-tier dress & business casual • 3% total-med SOM volume = 2M pairs, $500m (to be verified) • Additional tech luxury (to be quantified)
Business type Startup …• Contract manufacturing of self-contained shoe sole• Sell as branded component to shoe makers• Customers are partners and end-users• Limited partners globally
Proposed experiments Startup …• Verify data & hypotheses on total med market – • podiatrist, dermatologist, foot clinic, sweat-help orgs • channels, reimbursement, sizing, etc• Design new experiment to quantify ‘tech comfort’ segment• Discuss business type options (contract manufacturing, licensing, IP) with the brands• Survey end-retail to better understand requirements
Table Compass Advanced Booking Discounts for Restaurants 10 Restaurant InterviewsSarah Brown William Cooke Dennis Kwon Robert Montrone JaidevRao AbhishekSheetalEMBA ‟12 EMBA ‟12 MBA ‟11 EMBA ‟12 EMBA ‟12 EMBA ‟12Consulting Strategy & Engineer / Tech Consultant / Management Tech Marketing /Neuberger Financial Entrepreneurship TV Producer Consulting StrategyBerman Planning Lala.com ABC Television Rothstein Kass LeCroy Corporation Blue Sky Solar
Table Compass Key Partners Key Activities Which of our customer’s How will we Get, Who are our most Restaurant owners • Platform design and problems are we helping to Keep and Grow important solve? development • Empty tables Customers? Retention customers? Key Suppliers • Business • Difficulty making plan: points system, Both restaurants and Possibly Open Table development, reservations Groupon, promotional end users partnerships and • Price item, value add free What are we getting marketing meal, etc. What are their Which customer needs are from them? we satisfying? archetypes? Reservation Service • Restaurants: revenue People who management, working plan, price capital conscious, occasions, Giving them? • End Customers: groups of friends Restaurant traffic discounted meals, secured reservations, Through which restaurant comparisons Channels do our What Job do they Customer Segments want us to get done Key Resources What are the Key Features want to be reached? for them? • Designers, Engineers of our product that match • Restaurants: face to End customer: • Business customers problem/need? face meetings • Discounted pricing discounts development, Sales • End Customers: Word Restaurants: fill seats • Restaurant discovery • Money of mouth marketing, online, direct emailWhat are the most important costs inherent in our How do we make money? What’s the revenuebusiness model? model? Pricing tactics?Fixed Cost: Building the website Options: listing fees, percentage of restaurant fee,Variable: Marketing, sales people, advertising restaurant flat fee, first year free, etc.
Hypothesis Test Results Mixed Yield management is a (confusion, pro, not Asked 10 restaurant important) real issue for owners and managers restaurants More of an issue for high-end vs. low-end Working Capital is a Asked 10 restaurant Yes, money up front isconcern for restaurants. owners and managers great Restaurant discount sites have muddied the Restaurants are OK Asked 10 restaurant water/ some said 10% with giving discounts owners and managers max on food/ some said easier for alcohol
Customer Quotes• “Retention on a discount customer in a restaurant is almost zero”• “Discounts work in other businesses really well but maybe not in restaurants”• “We don‟t take reservations. Too many no shows and then we have to turn people away”• “It‟s really hard for people to wait for money”• “I‟ve been burned by this shit before so I‟m hesitant to deal with it again”• “I get 5-20 phone calls from people like you every day”
Table Compass Key Partners Key Activities Which of our customer’s How will we Get, Most important Restaurant owners • Platform design and problems are we helping to Keep and Grow customers? solve? development • Empty tables during Customers? Retention • Medium-high end Key Suppliers • Business slow periods plan: points system, restaurants that Possibly Open Table development, partn • Difficulty making Groupon, promotional currently use erships and reservations item, value add free online What are we getting marketing • Price meal, etc. reservations from them? Which customer needs are • End users Reservation Service we satisfying? • Restaurants: Revenue Archetypes? management, Working People who plan, Giving them? capital price conscious, Restaurant traffic • End Customers: Discounted Through which occasions, groups of bookings, secured Channels do our friends reservations, restaurant Customer Segments Key Resources comparisons want to be reached? Job they want us to • Designers, Engineers • Restaurants: face to get done for them? • Business What are the Key Features face meetings of our product that match End customer: development, Sales • End Customers: Word Discounted bookings customers problem/need? • Money • Discounted pricing of mouth marketing, Restaurants: Fill • Restaurant discovery online, direct email seats, Working capitalWhat are the most important costs inherent in our How do we make money? What’s the revenuebusiness model? model? Pricing tactics?Fixed Cost: Building the website Options: listing fees, percentage of restaurant fee,Variable: Marketing, sales people, advertising restaurant flat fee, first year free, etc.
13[Social Crowd]An online forum where (local) Finders & Grinders meetjerry sanders4/16: 12 interviews (5 Finders; 7 Grinders) Group 14
The Problem 14Yesterday… we were almost right.Small businesses (“Grinders”) -- which are essential to vibrantcommunities -- face increasing threats to viability due to theinaccessibility of:•Development capital•Working capital•Third party contractors (planning, design, construction)They rely on the “Finders” of new business opportunities (akainvestors) to provide the illusive capital inputs.[Social Crowd]jerry sanders Group 14
The Solution (version 1.0) 15[Social Crowd]jerry sanders Group 14
Interview results 16We struck oil!Broad questions aimed at two key stakeholder groups revealedthe following trends:•2 types of small business owner: self- & third-party funded•Grinders want access to small amounts of capital $10K-$2M;typically they had LT r/ships with third party contractors•Structural holes exist between the ‘Money Men’ (Finders) andthe ‘Operators’ (Grinders)•Finders have limited time for DD; don’t want to be botheredunless the opportunity ‘has legs’[Social Crowd]jerry sanders Group 14
Type of Business 17The solution (version 1.1)• Online ‘matchmaking’ forum to connect F&G• Differentiating factors: – Local project focus – Investments of $10K - $2M – Improved efficiency & compatibility: • Screening process conducted by a panel of CBS graduates with NYC start-up success • Ability for both parties to upload a profile – Investment history / prior start-up success – “I am looking for…”[Social Crowd]jerry sanders Group 14
Compatibility is key 18[Social Crowd]jerry sanders Group 14
[Social Crowd] FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 19 One-off: - Platform design Ongoing: - Screening An online - Semi-automated Finders: - Marketing „matchmaking‟ forum - Local community- Individuals & groups - Independent - IT maint. & where F&G connect. focused seeking investment business organizations support opportunities that - Community - New market ID Finders: Investment provide (i) requisite funding efficiency through a returns and (ii) a institutions screening process direct benefit to a - Local business that ensures only the local community. school alumni top ideas are posted. - Personal Grinders: connections Grinders: Access to - Direct contact Start-ups and locally - Customer d/base - Local business small amounts of through website owned businesses - Proprietary activists capital typically hard - Local news & PR seeking capital knowledge to acquire through channels investments of - Brand copyright institutional routes. - Word of mouth $10K-$2M - Site skin: look, feelValue-driven: Most important costs include:- Web platform development Dual revenue structure:- IT management & technical support - Finders Fee (2% of consummated deal value)- Marketing & customer acquisition - Grinders Fee ($250 application review fee) jerry sanders- Application review costs (experts) Group 14
Market Size* 20Number of new small businesses Target MarketTotal Addressable Market In 2010, NYC600,000 new small accounted forbusinesses per 5% of the newyear in the small businessUnited States launches in the 600,000 200,000 10,000 United States Served Available Market Assume 1/3 are self funded & 1/3 are funded by conventional (institutional) facilities[Social Crowd]jerry sanders *Need to pressure test these assumptions Group 14
Proposed Experiments 21Diving deeper…Test ActivitiesGenuine market size Further research to determine the accurate dollar value attributable to our target marketCustomers’ willingness to pay Surveys & interviews to determine: Perceived value in CBS Alum review process Value attributed to time-saving component Pricing sweet-spot for fees: F&GImportance of the local aspect Surveys & interviews with F&G to determine Research local investment statistics Research industry constituentsHow to plug (not bridge!) the gap Surveys & interviews to determine impact of consummating: a good deal: loyalty to us or the contracting party? a bad deal: negative splash-back on us?[Social Crowd]jerry sanders Group 14
Hypothesis Facts Can be solved byRestaurants have offering a flexible a marketing web-based tool to problem execute marketing campaigns People would like People don’t like to receive it if theyto receive random were able to advertisement manage the (email, SMS) content
Owner of 5 Restaurants Manager of a New York in New York Restaurant ChainMain Problems • People retention • People retention • Access to capital • Increasing sales ( breakfast, grab- • Sale fluctuation and-go)Marketing • Customer more loyal to booking • Chain manages the marketingProblem services than to the restaurant campaignDescription • Significant spend on online • Developed focused campaigns marketing and discounters fees ( • GM doesn’t engage in websites >$5K pm) • Have developed a loyalty customer baseInterest in the • If it works and reduces the total • See the potential on addressingsolution spent on marketing people passing by • Could give certain discounts to get • Willing to try the product and ready new customer but there is a limit to give 50% of the profit of the new because of the margin campaign • Will pay on resultsOthers • Against building a culture of getting • High on reviews that allowed them customers due to discount to build a customer base • Nearby restaurant is rebranding because of bad reviews
Segment 20-27 (6) 28-35 (6) 35-45 (2) 45+ (2) (surveys)Main reason for • Location • Quality • Quality • Qualitychoosing a • Price • Looks • Tidiness • Tidinessrestaurant • QualitySelection • Website • Word of mouth • Zagat • Knownmechanism • Zagat restaurantsRestaurant • Don’t do much • Yes, but to • Don’t do much • Don’t doAdvertisement known customersReaction to email, • Annoying but • Annoyed by • Don’t want to • Don’t want toSMS allows you to too many receive any receive anyadvertisement get a discount advertisements • Prefer emailWould they accept • Only if you can • Only if you can • Only if you can • Only if theyto get email, SMS choose what choose what choose what liked the placeadvertisement you get you get you get • Sizable • Max number of discount messagesApp that could like • Email with • Proximity app • Proximity app • Proximity app(guided question) pictures send including including including for what you quality, price quality and quality and are interested and discount price price
Hypothesis Facts - There is a marketing Can be solved by problemRestaurants have offering a flexible - Reviews are the main a marketing web-based tool to issue problem execute marketing - Only see a potential in campaigns the product - They don’t like People would like People don’t like random email, SMS to receive it if theyto receive random - Would if they were in were able to advertisement control manage the (email, SMS) - Want to mix quality content and price
Mobile Marketing Key Activities do we require? Restaurants want Marketing - Restaurants to Get/keep/Grow to minimize the Who are our Key Campaign reduce sales Customers? dependency on Partners? templates, fluctuations - Low-cost platform discounters Online Software advertisement development, - Restaurants to - Mkt Campaign Restaurant want to relationship engage customers Templates run local marketing Who are our key building campaign ( 2 mins suppliers? breakfast , cheap Telecoms, search - Cheap and an bagel after 11am, engines effective way of …) reaching the What are we customers getting from What Key them? Giving Resources we - Reaching local Which Channels? them? require? customer Online Message delivery People, IT (location based) services infrastructure (data center) Important costs? Fixed? Variable?Software (technology) development, (fixed) Fee per marketing campaign, monthly marketing/sales (variable) subscription fee
In person Interviews – 78Adeem Fenster Stella Chan Richard JamesShashi Shrimali Sanjay Bharadwaj Neeraj Lal
Kadak – 04/16/2012 Who are our Key What Key Activities do Partners? we require? How will we Get, Keep• Indian stores and Asian • Purchasing raw material and Grow Customers? stores • Brewing tea Which of our customer’s • Consistent quality • Setting up retail outlets problems are we helping Who are our most• Eventually tea makers • • Increase product variety Advertising, & marketing to solve? • important customers?• Indirect distribution • Setting up customer feedback loyalty program tea card • consumer have limited • word-of-mouth from students • repeat customers, Asian- through -- subway, channel and analysis (campuses) • Business development with access to authentic Asian immigrants consumers panda express • Tea cart promotion via campuses tea in a retail format • health conscious • Product mix creation Facebook or Tweeter Who are our key • Tea tasting event to collect customers • FP&A management suppliers? • Hiring customer feedback (via iPad)• Indian store from NJ Which customer needs What are their• Chinese stores from are we satisfying? archetypes? Chinatown • Desire to consume authentic • The Indian• Grocery stores such as Asian tea outside home • The rising teen Wal-mart • Healthy parents• Restaurant • Undergrads utensils/hardware What Key Resources we • Baby-boomers What are the Key Through which suppliers require? Features of our product Channels do our • Money What Job do they that match customers Customer Segments What are we getting • Retail outlets want us to get done for problem/need? want to be reached? from them? Giving • POS system to track sales them? them? • taste of our tea (quality) • direct retail • SAP system for accounting • make the tea (incl.• Milk, sugar, Splenda, tea • License from NY / Campus • the availability of tailored • direct-to-home picking the best leaves, cups, spices, flavor delivery approval ingredients) • speed of delivery pots/pans • HR for hiring & training • education of tea• MONEY, more revenue • convenience • Tea brewing equipment What are the most important costs inherent in our business model?Fixed How do we make money? What’s the revenue model?• Rent Pricing tactics?• Equipment, furniture and fixtures • Low Intro promotion price to attract customers($1.99) Variable • Keep the price close to Starbucks thereafter• Raw materials & supplies • Never price below breakeven even during promotion period• Employee salaries • Find ways to give them discounts (survey --- buzz discounts)
GLOBAL HOT US HOT DRINKS DRINKS MARKET MARKET Coffee Coffee Tea $2b Tea $9.5b $75b $42b Other Hot Other Hot drinks $0.4b drinks $16b Tea is expected to grow +4% in the next 5 years as compared to Coffee of +2%
<<Findings>>Consumers Channel• Lots of tea drinkers •Owners/managers see hot tea as an essential menu offering and would switch suppliers•Most prefer to consume •Significant diversity in the quality of teas offered exists:tea at home • Economy, mass produced, bagged tea• A retail format is not as • High quality, steeped, whole leaf teasdesirable •Economy: purchased in bulk from wholesalers (manufacturers = Unilever, Nestle etc)• Quality of tea is problem • High quality: purchased from domestic specialist tea• Health is a big reason merchants (importers/blenders), e.g. Numi (California),• Sweet spot was $1.99 Teaguys (Mass)for good quality tea •Taste, aroma, exoticness, presentation/packaging, reliability, sourcing are• Lack of awareness of key attributesvarieties of tea • Distinct lack of brand awareness in this segment – customers do not know who‟s tea they are drinking!
Business HypothesisHypothesis Tests Results Desire to consume 20% outside the home authentic Asian tea Interview 66% preferred at home outside homeconsumer have limited 38% have access in aaccess to authentic Interview retail formatAsian tea in a retailformat 53% consume tea at make the tea (incl. home picking the best Interview 38% not satisfied with ingredients) the quality
Business HypothesisHypothesis Tests ResultsParticular about the 38% not satisfied with Interview taste of tea (quality) the quality Many comments on Lack of retail survey citing availability of tailored Interview inconsistency versus flavor home Only 7% citedConsumers care about convenience as a Interview convenience/speed preference
Business HypothesisHypothesis Tests ResultsConsumer wants to be Only 20% cited retail reached through retail Interview channel as the channel preference Customers are willing Only 19% were willing to pay Startbucks Interview to pay > $4 prices for good tea. 38% chose $1.99 66% of responsesWe need to educate chose Englishcustomer about breakfast, Indian Interviewdifferent varieties of chai& green tea out oftea. 20 choices.
Business HypothesisHypothesis Tests ResultsDemand from health 66% cited health as the Interviewconscious consumers reason for drinking tea 83% drink tea averaging Demand from students Interview slightly over 1 cup per day 94% of Asian consume tea versus 88% averageDemand from Asians Interview Cups/day slightly above average Caucasian #2 group
Kadak – 04/17/2012 Who are our Key What Key Activities do Partners? we require? Which of our customer’s How will we Get, Keep• Indian stores and Asian • Purchasing raw material problems are we helping and Grow Customers? • Brewing tea Who are our most stores to solve? • Consistent quality important customers? • Setting up retail outlets• Eventually tea makers • consumer have limited • Increase product variety • Advertising, & marketing • • repeat customers,• Indirect distribution • Setting up customer feedback access to authentic loyalty program tea card • word-of-mouth from students Asian-immigrants through -- subway, channel and analysis Asian tea in a retail • Business development with (campuses) consumers panda express • Tea cart promotion via campuses format Facebook or Tweeter • health conscious Who are our key • Product mix creation • BRAND - TBD • Tea tasting event to collect • FP&A management customers suppliers? • Hiring customer feedback (via iPad)• Indian store from NJ Which customer needs What are their• Chinese stores from are we satisfying? archetypes? Chinatown • Desire to consume • The Indian• Grocery stores such as authentic Asiantea Wal-mart • The rising teen• Restaurant outside home • Healthy parents Through which utensils/hardware What Key Resources we Channels do our • Undergrads suppliers require? What are the Key Customer Segments • Baby-boomers • Money Features of our product want to be reached? What are we getting • Retail outlets that match customers What Job do they • direct from them? Giving • POS system to track sales problem/need? want us to get done for them? retail/franchise • SAP system for accounting • taste of our tea them?• Milk, sugar, Splenda, tea • License from NY / Campus model (quality) • make the tea (incl. leaves, cups, spices, • direct-to-home approval • the availability of picking the best pots/pans • HR for hiring & training delivery ingredients) tailored flavor• MONEY, more revenue • Tea brewing equipment • education of tea • speed of delivery • convenience What are the most important costs inherent in our business model?Fixed How do we make money? What’s the revenue model?• Rent Pricing tactics?• Equipment, furniture and fixtures • Low Intro promotion price to attract customers($1.99) Variable • Keep the price close to Starbucks thereafter• Raw materials & supplies • Never price below breakeven even during promotion period• Employee salaries • Find ways to give them discounts (survey --- buzz discounts)
Jiae.com: Interest based platform for creative minds in China Team: Deymon Chen, Yu Guo(Hugh), Mathias Rosenthal, James Hagen 10 Interviews 2012.04.16 and 9 design students from Rich Tong Tumblr Fashion Director Fashion Blogger
What We Learn From Design Students
Insights from Design Students Interviews
Business Hypothesis for Design Students
Interview insights From Fashion BloggerSatisfaction with platform promoting good quality photos based contentContent Quality is the key, platform needs to drive awareness for good photosTraffic is the most important incentive for these fashion bloggersFeedback is a way to keep them sharingKeep touch with community is another motivation for them to shareCreator of the photos, many bloggers post 50 original photos dailySharing different photos on different sites, 10 eachPinterest has more curators, rather than creators with affiliated model with sitesTumblr has more curators, together with curatorsDribbble attracts lots of designers to share partial original design worksFancy focuses on driving sales to B2C sites with good quality merchandising photos.Barriers in china is high for these emerging photo based US SNS sites to enter ChinaSources of good photo and good fashion bloggers in China are limitedDemand for good photo based information is highLifestyle inspiration ideas are what users are looking for on these photo based sites
Business Hypothesis for Fashion Blogger
Jiae: leading interest based online community in China•Design School •Platform Management • Photo based nice and •1:1 Customer Support •Fashion Bloggers•Design Media •Customer Acquisition clean SNS platform •D-School Ambassador •Designers•Government •Expanding Reach • More Traffic•Web Partners •Community Management •Consumers•Companies/Brands • Find, organized and •Companies share inspiration Ideas •Advertiser effectively (Designers) • Find jobs/projects (Designers) • Showcase Portfolios for Feedback •Platform •China Photo Related sites •Customer Base • Find Good Designers •China SNS Sites - weibo, •Brand (Companies) renren, qq, douban • Design Marketplaces (All Customers) •1300 Design Schools •Design Message Boards •Jiae.com Platform Costs Advertising Customer Acquisition Costs Design Marketplace Marketing and Sales Costs Free Interest Based SNS Platform
Columbia B7739-002: Advanced Entrepreneurship JiaeTEAM MEMBERS Deymon Chen Hugh Guo Mathias Rosenthal James Hagen Scott YooDegree program and EMBA Global-Asia EMBA Global-Asia Columbia Business Columbia Business EMBA Global-AsiaDepartment/Major 2013 2013 School 2012 School 2012 2013Provide your LinkedIn http://www.linkedin. http://www.linkedin.c http://www.linkedin.com http://www.linkedin. N/Apublic profile URL com/pub/deymon- om/in/guoyu /pub/rosenthal- com/in/jamesohag chen/48/2a4/12 mathias/24/7b8/97a enAre you the subject Business User Experience Business development Business Marketing; Salesmatter expert (SME) Development Design, Business Developmentfor this team? DevelopmentPick a role you think Hustler Designer Product Picker Strategist Hustleryou most likely willplay on this team(Hustler, Hacker,Designer or ProductPicker)Anything interesting Citibank, Setup Chief Designer of Banking, Startup-Chile, eCommerce Doosan marketingwe should know about China’s first rural Baidu.com, Blogger North American President, social regional manager,you (be brief) foreign lending Chilean Chamber media strategist for supply chain company nonprofit management
TEAM FACTABASE 8 Interviews already conducted 20 pending
8 POTENTIAL CUSTOMERS AND AN INDUSTRY EXPERT HELPED US FOCUSOUR SEGMENTS, RELATIONSHIPS AND REVENUE STREAMS No Change Changed Value Industry # Prop Segments Relationships Revenue Streams Financial Same • Non-frequent • Automated • Per table Services 2 (4) Service Market Same • Needs are • Automated • Limited only 1 (1) frequent Service to per table Research however has a risk of limiting growth News Agencies Same • Non-frequent • Automated • Per table 1 (2) Service • Frequent • Automated • Subscription Consulting 1 (4) Same Service Entrepreneurs Same • Non-frequent • Automated • Per table &Indp 2 (3) Researchers Service Universities 0 (2) Pending Interviews App Developers 0 (2) 8 (20)
WE INITIALLY BELIEVED THAT THE MAJORITY OF CUSTOMER SEGMENTSFALL UNDER A FULL ACCESS SUBSCRIPTION SERVICE Universities Consultancies Comprehensive Financial Services Firms News Agencies Coverage Needed Full Access Subscri- Per Table Charge ption Based Service Entrepreneurs Market Research and Independent Firms Researchers Sector Specific Sector based Subscri- Per Table Charge ption Service Less Frequent Frequent Frequency of Need
HOWEVER, IT SEEMS THAT LESS OF OUR CUSTOMERS ARE INTERESTEDIN A SUBSCRIPTION PACKAGE AND ARE MORE INTERESTED IN A PERTABLE ACQUISITION Consultancies Universities Comprehensive Market Research Firms Coverage Needed Full Access Subscri- Per Table Charge ption Based Service Entrepreneurs and Independent News Agencies Researchers Sector Specific Financial Services Firms Sector based Subscri- Per Table Charge ption Service Less Frequent Frequent Frequency of Need
OUR BUSINESS MODEL CANVAS AT DAY 0 • Automated Services Enhancing access to • National Statistics • Collecting and preparing public statistics on • Personal assistance Companiesand Offices the statistical tables emerging markets that • Co-creation individuals with a • Development of often have issues need for detailed • Public Authorities automation software and relating to: public statistics on webapps 1) Availability: Emerging Markets. • International • Customer acquisition and Believed to be non • Frequent and Organizations management existent or are comprehensive difficult to find. (Financial services, consulting, Media, • Companies that 2) Convenience: Universities and R&D) publish public Require multiple • Frequent and statistics steps to prepare sector/country them for use and/or specific (Ad Agencies compare multiple and Market Research) • Online tables from multiple • Non-frequent and • Software/Web sources. comprehensive developers Through a user friendly • Direct Sales (Individuals or Students) • Research analysts • Non-frequent and one-stop setting with • Data entry people sector/country easy search, • HR and admin specific visualization and export • Business (Entrepreneurs, options. International investors) Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or• Part time employee salaries, SEO (variable) sector/country specific) for premium tablesWhat are the most important costs inherent • Per-table sale options for premium tables • Ad-based modelmake money? What‟s the How do we for free tablesin our business model? Fixed? Variable? • API access for applicationPricing tactics? revenue model? developers • Special pricing for customized reports
OUR BUSINESS MODEL CANVAS AT THE END OF DAY 1; FOCUSED CUSTOMER SEGMENTS, RELATIONSHIPS, CHANNELS AND REVENUE STREAMS Enhancing access to • Automated Services • National Statistics • Collecting and preparing public statistics on Companiesand Offices the statistical tables emerging markets that individuals with a • Development of often have issues need for detailed • Public Authorities automation software and relating to: public statistics on webapps 1) Availability: Emerging Markets. • International • Customer acquisition and Believed to be non Organizations management existent or are • Frequent difficult to find. (Consultancies) • Companies that 2) Convenience: publish public Require multiple • Non-Frequent statistics steps to prepare (Financial Services, them for use and/or Entrepreneurs, compare multiple Individuals, News tables from multiple • Online • Software/Web Agencies) sources. developers Through a user friendly • Direct Sales • Research analysts • API access one-stop setting with (special datasets) • Data entry people easy search, • HR and admin visualization and export • Business options. Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or• Part time employee salaries, SEO (variable) sector/country specific)What are the most important costs inherent • Per-table sale optionin our business model? Fixed? Variable? • API $xx per call
eFood day 2Interviews – End Users
End Users Value propositions Hypotheses check 28 interviews • Save time (finding and delivery) - YESGrocery Shopping and • Reduce costs (waste, best deals) - NOInventory Management is • Diet advisory - …not testedan Inconvenient Process • Recipes management & recommendations - … not tested 5 interviewsRestaurants lack robust • Save time (finding and delivery) - NOand reliable inventory • Reduce costs (waste, best deals) - NOsystem for keeping track offood and beverages
Test Details - Grocery Shopping Results Most shoppers find it to be inconvenient Method for tracking inventory is un- sophisticated “looking in the fridge” / taking notes Test Online shopping / delivery used in 80% of tests in W Village Found potential partners We tested 28 consumers in Fresh Direct three grocery store Max Delivery locations Fairways Wholefoods Market – Two people had actively considered the Midtown concept and wanted to use it, Citarella – West Village Connection to online delivery platform not Columbia Grocery Store essential Tracking of data was deemed to be a negative for one interviewee People still want to buy perishable goods themselves Not relevant to students
Test Details - Restaurants Test We tested 5 restaurants owner in: Results • Bahamas (several Hotel/restaurants): Most of the restaurants have an automatic high-end inventory system. • West Village : A minor problem might be the beverages - asia-fusion solutions are already in place. • Times Square: convenient
Digital Exchange Network Six Interviews
Customer Segmentation- Start at The High End & Work Down• TOP 5% of LinkedIn users..roughly 10 million people.• Educated professionals, income above $80,000 a year• People for whom networking is a regular activity for real time or future benefit• People who have exchanged a piece of information worth more than $500• People who place high value on creating goodwill, validation, stronger connections, verification. Capturing this will be a major differentiator.
Customer Sentiment/Emotions• SOCIAL…connected, ambitious, worried about advancement, anxious about execution of their job,• OPEN to helping others but not into free love• ENGAGED…I have built a lot of goodwill in the world and sometimes feel like it doesn’t come back around• MAGNAMIOUS... I like doing things for other people• “SEEN” Want to be appreciated, admired for what I do. Would like the world to really “see me.”• BELONGING.(I might deny it) but I like being member of the right club• KARMA..is real
VALUE PROPOSITION• HYPOTHESIS: People want to exchange high value business information online. This value is well understood and there is WTP for some.• RESULT: Some willingness to try, but some late adopters scared of compromising relationships, “is it still personal? confidential? Not sure I’d actually use it? Why would I give away high value unless I know you” Realization that networks are very important. Already use some form of socially enabled marketplace, “buyers have nothing to offer..not an equal exchange.” IS IT REALLY HIGH END?
DROWNING IN TWEETS?• HYPOTHESIS: Users are frustrated by energy spent on LinkedIn/social platforms or want an alternative with more value OR stronger, BETTER connections and verification.• Result: Some recognition of the potential for private/high level groups. “Keep it smaller and closer.” “I don’t blog or tweet, don’t care. SEC rules” If it can get me more business… sure. What do I get out of LinkedIn?
I NEED THIS?• HYPOTHESIS.. Top uses for D.E.N will be business expertise, sales leads, job search,favors, recognition for favors, making money, getting validation.• RESULT: “I get it, we could use that perfectly in our community.” Some interviewees not sure of utility. Personal uses? The “priceless exchange of favors..Cancer Dr. Appointment?”
THE CLUB?• HYPOTHESIS: Social structures that will influence uptake of D.E.N include alumni and affinity groups. Creating scarcity will cause uptake.• RESULT:Very positive feedback from business school chiefs, alumni relations…need to overcome nervousness over brand, alumni don’t want job calls. Are there amazing people in the network? Exchanges of genuine high value?? More than other places? Why not email?
DOING GOOD?• HYPOTHESIS: Karma matters! Existing platforms (Linkedin, GLG, Evisorsetc) miss this & it’s important enough for me to switch.• RESULT?:
CANVAS 1.0 --People have People who needAlumni trouble finding high qualitygroups, Networki expert, reliable, ver information andng ified information. Tap communities services andgroups, (build to Software already have troublesuit..potential development, --People spend transacting finding it.white label business huge amounts ofsevice) development, time displaying offline or chaotically Business expertise with no builders, salesmeOutsourced tangible benefit n, anyone whoengineering has ever lookedteams, --A marketplace to for a connectionWe get paid to match buyers and once removedincrease bonds sellers from their closestbetween --Simple easy way circlemembers ,make to aggregate Biz Dev, Cash, Affinity groups --Reduce thecrucial offline postings about tech development friction to findingactivity more expertise info, help me getefficient. Allow --Scoring/ranking value from what Imonetization of for reliability. do for others andexpertise. ? what I know.MVP engineering/hosting/design costs are fixed as is some project management.. Free to join and use– then transaction fee,community management, feature set build listing fee, fee for top tier circles are variable
CANVAS 1.1 --People have trouble finding People who needAlumni expert, reliable, high qualitygroups, Networki verified information andng Seeding the high information. services andgroups, (build to level community, Tap communities already have troublesuit..potential Software --People spend finding it.white label development, transacting huge amounts ofsevice) business offline or time displaying Business development, chaotically expertise with no builders,Outsourced tangible benefit salesmen,engineering anyone who hasteams, --A marketplace to ever looked for aWe get paid to match buyers and connection onceincrease bonds sellers removed frombetween --Velvet --Simple easy way their closest circlemembers ,make Goodwill, rope, leaky door to aggregate --Reduce thecrucial offline Brand, User policy postings about friction to findingactivity more Propagation --Affinity groups expertise info, help me getefficient. Allow --Scoring/ranking value from what Imonetization of for reliability. do for others andexpertise. ? what I know. Scalable marketplace business. MVPengineering/hosting/design costs are fixed. --Free to join and use– then transactionFeature set build are variable..buildto spec fee, listing fee, fee for top tier circles for partners?
Scope Narrowing Narrowed focus to look at the life cycle around • Home Fertility Monitoring • Pregnancy Checkups • Toddler & Infant Monitoring & Unplanned Physician Visits
Interviews Monday76543 Monday210 Industry Patient Provider Payer Mfg Expert
Interviews SAYING NEW INSIGHTS• “This would be a huge value.” • Payers have a large problem of combating• “The wait at the OB/GYN is atrocious. All fraud (e.g. billing unnecessary of my friends complain about it.” procedures)• “I wouldn‟t have to get a babysitter!”• “I had to manually relay the data from my heart monitor. It was so primitive!” DOING FEELING / THINKING• Manually recording test results • Stress• Retaining hard copies of medical records • Avoidance and trying to identify trends to discuss with their doctor• Mother with 3 kids 25+ doctor visits per year. ~ 90% of them only involved basic diagnostic tests (ear, blood, throat culture) 70
MONDAY Hypotheses HYPOTHESIS TEST RESULT1• Patients would run diagnostic tests from home • Interviews • Valid if given a viable solution2• Medical device makers are willing to use a 3rd party • Interviews • Inconclusive software platform3• Parents with young children would like to • Interviews • Valid reduce their number of doctor visits 71
MONDAY Hypotheses HYPOTHESIS TEST RESULT4• Pregnant women would like to reduce their number • Interviews • Inconclusive of doctor visits5• People are concerned about being exposed to • Interviews • Valid other illnesses at a hospital6 72
DIAGNOSLY • Convenience of time Get customers: Consumers• Diagnostic and and place Families (primarily monitoring device • Partnerships • R&D • Reduced cost for mothers) in the fertility OEMs • Online marketing• Lab-on-chip OEMs • Tech support uninsured or high testing, pregnancy, an deductible plan Keep + Grow: d early childhood• Health networks • Partner sales & • Quality service• Testing labs subscribers phase support and• Clinical research • Customer support • Reduced cost and • user experience Device Makers companies• Online health service increased quality of Makers of at-home providers software monitors and diagnostic devices Getting from them: • Lower costs due to• Hardware to conduct reduced visits, less Payers diagnostic tests fraud and Insurance, Medicare,• Access to customers Payment process consistent, comprehe • Online (direct) Medicaid nsive data • Industry experts • Physicians Providers Giving them: • Engineers and • Improved patient • Hospitals General• A platform outcomes Practitioners, Midwive• Mobile connectivity designers • Clinics • Earn more money via s, Nurses• Data mgmt • IP experts focus on higher value • Health• Integration with online • Privacy experts procedures networks health ecosystem • Lawyers • People (R&D) • Tech infrastructure • Testing fees (per test) • Customer acquisition • Monthly subscriptions (freemium model) 73
Future Hypotheses HYPOTHESIS TEST RESULT1• Patients would be willing to pay the same amount or • Interviews more for home diagnostics2• Small device manufacturers would be • Interviews willing to use 3rd party software, if it‟s free3• Small device companies will be more willing to • Interviews partner than larger ones 74
Future Hypotheses HYPOTHESIS TEST RESULT4• Bill physician a fee as a % of insurance / Medicare / • Interviews Medicaid payments we facilitate5• Some patients will be • Interviews willing to pay out of pocket6• General practitioners will be more receptive than • Interviews specialists 75
Future Hypotheses HYPOTHESIS TEST RESULT4• Payers will be supportive of software platform to unify • Interviews data 76
Market Size Young family segment – 30 million • 51 million children from 0 to 11 years old • Average 2.1 children per household • 4 million babies born in the U.S. each year (6 million pregnancies) - http://www.childstats.gov/americaschildren/tables.asp 77
thApril 17 2012 Ari Scott Alex Sarah Francois Michael Harkov Greco Morrison Shenton Viargues Burke
Version 1 – April 15th 2012 Get: PR, digital WOM, SEO, SEM, consumer 1. Traveling to urban 1. Itinerary collection & promotions destination and a updates For Customers: desire for 1. Access to Keep: great customerPartners: hotels, local service, expand authentic 2. Marketing / PR authentic, non- experiencesmerchants, airlines, onli cities, improve partner touristy spots 2. Own smart phonene booking sites, local offerings 3. Customer service – / tablet (ideal) sites, rental car 2. Better planned days locals & travelers Grow: CRM / relationship 3. Age 25-45 / targetcompanies, internation = easier, maximize marketing, expand offering to 25-35 (?)al phone data carriers vacation time more cities 4. Professional, $50k Suppliers: local + income 3. Save time 5. Time-starved trendsetters, work inhospitality, younger/cre 4. Clean UX and ative, bloggers, active Our job: 1. Web developers interactive itineraries 1. Search (SEO/SEM) -making planning parents take the guidebook 2. Marketing/PR team 2. Social media quicker, easier, pa 3. Local expert to 21st century 3. Travel blogs inlessGet itineraries: $$ for outreach 4. Travel/local sites -access to off the beaten sales as well as For Local Experts:exposure (blog, video) 4. Sales force (low path spots end, in person) 1. Monetize your local -vacation that meets knowledge their specific interests Fixed costs: upfront development of site and app How: Sell itinerary for $4.99, pay local 20%, keep 80% gross margin. Variable costs: talent/people, marketing/advertising, compensation of Pricing tactics: compete between guidebooks & free locals, product iterations Promos: 1st free, free if feedback, buy 1 get 1 free, free if FB post
Customer Analysis :•Bakamba has two core customer segments: – Tourists & Hotel Concierge – Content Providers (Locals)Testing Methodology:• Customer Segment 1: Tourists – Interviewed 20 groups of NYC tourists including couples, families, singles, international, and domestic tourists• Customer Segment 2: Content Providers – Received responses from potential local contributors via CraigsList and our own personal networks.
Hypothesis Result Tourists desire more Looking good. With only a authentic experiences few exceptions, we learned while traveling. that this seems to be true. Inconclusive. While someTourists will find value in tourists expressed a highour one-day itineraries & WTP (>$50), others wanted are willing to pay. it to be free. Validated. We haveLocals will find it appealing received over 45 to contribute content to contributions from locals Bakamba. already.
Other Feedback & Insights from TouristInterviews : – Flexibility – People seemed to want more flexibility in itinerary length, as well as more alternate options for meals and activities – Greater Customization – Tourists seemed to want to see a greater number of filters to help them sort itineraries. – Cost- We observed two distinctly different groupings of willingness to pay (Free-$1.99 / $20-$100) – Additional Benefit Requested - Discounts on activities; better directions to destination – Logistical Challenges - Foreign users will often not have internet access on their phones, and many were concerned about the accuracy of our information – Other Concerns – Many wanted to know more about who the locals writing the itineraries were.
Version 2 – EOD April 16th 2012 Get: PR, digital 1. Itinerary collection & WOM, SEO, SEM, consume Bakamba helps tourists r promotions updates have richer, more authentic travel Tourists – ContentPartners: hotels, local Keep/ Grow: great customer 2. Marketing / PR experiences by tapping Purchasersmerchants, airlines, onli service, expandne booking sites, local into the knowledge of cities, improve partner 3. Customer service – locals offeringssites, rental car Revenue sharing & Locals - Content locals & travelers Save time planningcompanies, internation relationship marketing Providersal phone data carriers See the “Real” City Filter based on interestsSuppliers: local Everything in one place Mass Distributors –trendsetters, work in Content Purchasers (Ex:hospitality, younger/cre Hotel Concierge)ative, bloggers, active Unique platform for locals • Search (SEO/SEM)parents 1. Web developers experts to share and • Social media 2. Marketing/PR team monetize their local • Travel blogs / sitesGet itineraries: $$ for 3. Local expert knowledgesales as well as outreach • Craigslistexposure (blog, video) 4. Sales force (low • Social media end, in person) • Local blogs Fixed costs: upfront development of site and app How: Sell itinerary for $4.99, pay local 20%, keep 80% gross margin. Variable costs: talent/people, marketing/advertising, compensation of Pricing tactics: compete between guidebooks & free locals, product iterations Promos: 1st free, free if feedback, buy 1 get 1 free, free if FB post
Next Steps – Continue evaluating the willingness to pay of Customer Segment 1 (Tourists) – Begin evaluating value proposition for mass distributor channels – Challenge price point by requesting actual payment & offering different pricing structures
Pulze Day 2Testing the improbable hypotheses
Customer Segments InterviewedCompany Sample - 50,000+ employeesEmployees (15+) HR Manager (3)- Feel Disconnected from - Believe that employee surveys the firm provide enough data- Feel like employers dont - Feel like there is enough care information make decisions- Data does not reflect the - Believe Management wishes of the employees Accountability is a major- Lack of Feedback concern- Have better things to do - Believe that empowering managers for one-to-one conversations is more efficient
Test 1 - Enterprise EmployeesBelieve annual employee surveys dont matterFeel disengaged from the strategy making processWill participate in a survey for a small incentive ($5)Will participate under favorable circumstances unrelated to monetary compensationSurvey Size: 15Methodology: In person, and over the phone
Test 2 : HR ManagersInterested in feedback from front-line employeesSaw a problem in the current survey systemDid not look for incisive feedback, but for problems in the organizationSurvey Size: 3Methodology: In person
Team Pulze R&D Key Account Partners Marketing and management 500 < Software Manage the Bottom-Up Enterprises vendors platform Semi customized employee < 2000 Recruitment service based onEnterprise social engagement needs platforms Lead gen Middle Provide employees Management of ownership in larger Suppliers business strategy corporations Cloud service Low cost solution Sales force Software Data to interim surveys developers warehousing Website HR talent 3rd party analytics Research experts Variable Fixed Customer acq. One time Payroll service fee Talent acq. Subscription marketing service Sales
What we plan to do tomorrow?• Test original idea with mid-sized companies 500-2000 employees• Test original idea with more strategy-focused people• Test whether HR departments might respond to "What if surveys showed that most employees provide bogus answers to their employers surveys?"• Test whether middle managers feel that they have insufficient feedback and would benefit from running their own feedback surveys• Test whether employees would like to join anonymously provide feedback on their companies on a third-party site• Test whether HR departments would consider paying for analysis of employee criticism provided to a third-party site
Advanced Entrepreneurship YOUR SUPPLIER NETWORKTEAM MEMBERS ArezMardoukhi Gopi Sukhavasi Kevin Woolley Ravi PingliDegree program and MS, Financial MBA Candidate, MBA Candidate, MBA Candidate,Department/Major Engineering Columbia Business Columbia & London Columbia Business School Business School, M.S in School B.S, Computer Finance, Science B.A in Liberal ArtsProvide your http://www.linkedi http://www.linkedin.c http://cl.linkedin.com/pu http://www.linkedin.cLinkedIn public n.com/in/arezmar om/pub/gopichand- b/kevin- om/pub/ravi-profile URL doukhi sukhavasi/4/b18/678 woolley/2a/353/95 pingli/4/30/95aAre you the subject No Yes No Nomatter expert (SME)for this team?Pick a role you think Picker Hacker Hustler Designeryou most likely willplay on this team(Hustler, Hacker,Designer or ProductPicker)Anything interesting 10 years of Over 6 years in Chilewe should know experience in Spend and Peru and 3 years inabout you (be brief) management, Accou Clean water technology nts Payable, T&E in entrepreneurship various Fortune 500 companies.
Day 1 : Outside of the building• 21 Interviews with restaurant owners/managers o Upper West Side o West Village o New Jersey o Time Warner Center
• No consistent pricing Key Findings• Low Volume of Business for small restaurants• Reliability issues when it comes to small suppliers in terms of delivery time and quality of the product.• Sales done based on the word of mouth/trade shows/food shows• Not Organized Industry• Local restaurants suppliers‟ procurement process is a labor-intensive, paper and pencil, time consuming, monotonous routine requiring knowledgeable buyers, capable sellers and heavily word-of-mouth.
YOUR SUPPLIER NETWORK Partnerships with Industry Trade Software Buyers shows Marketing 1. Find the best Sales possible suppliers Chain/Corporate Professional Restaurants Purchasing for procuring goods network Associations and services. 2. One solution to Chain/CorporateMarketing/Sales manage end to end Hotels Team source-to-pay process Sales Companies Professional Network Distributing to Software Hotels and Suppliers Development Companies 1. Provide platform Purchasing Team Associations to reach target market customers Marketing Industry conferences Resources Fixed - Software development, maintenance Subscription fee will be charged per seat for costs, administrative costs each customer. The pricing will be higher for buyers than Variable – Marketing/Sales costs suppliers
Market Size TAM : 2 Billion USD SOM : 400 Million USD
Type of Business & Experiments• Type of Business : IT• Pivoted customer segments into Chain Restaurants, Hotels, Sales companies• Interviews/Surveys with different customer segments