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Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
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Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
Day 5 presentations columbia apr 2012
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Day 5 presentations columbia apr 2012

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  • 1. Columbia B7739-002 Steve Blank Bob Dorf Day 5 - Advanced Entrepreneurship April 20, 2012
  • 2. Welcome to Day 5! Order of Presentations 1. Diagnosly 2. Factabase 3. eFood 4. Kadak (Tea Lab) 5. Mobile Marketing 6. Jiae 7. DEN (FavorNet) 8. TVM Technologies 9. Social Crowd 10. YSN 11. Table Compass (FidelEat) 12. Bakamba 13. Pulze 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 Each team will have 15 minutes to present and for Q&A
  • 3. 14 New (59 Total) Interviews Thomas Jonathan Melissa Nina Tim Vladimir Friday – Day 5 Diagnose your health from anywhere
  • 4. Interviews 0 5 10 15 20 25 30 35 Industry Expert Patient Provider Payer Mfg Thursday Wednesday Tuesday Monday
  • 5. 5 • 15% Commission DIAGNOSLY - Yesterday • Provider engagement • Device mfg relationships • R&D • Customer support • Payer Approval Process • Convenience of time and place • Reduced cost for uninsured or high deductible plan subscribers • Diagnostic and monitoring device OEMs • Insurance networks • Independent sales reps • Healthcare Professional Staffed Remote Centers • People (R&D) • Regulatory & Liability • Customer acquisition • Testing fees (per test/kit) • Engineers and designers • Legal/Regulatory Knowledge (IP, FDA, HIPPA, etc) • Reduced cost and increased quality of software • Lower costs due to reduced visits, less fraud and consistent, comprehensive data Consumers Families (primarily subsequent mothers) in the pregnancy and early childhood phase + traveling families Device Makers Small/med, at-home monitors and diagnostic devices Payers Insurance, Medicare, Medicaid Providers General Practitioners, Midwives, Nurses, Office Manager, Specialists (Pediatricians, OB/GYNs, vets etc) • Improved patient outcomes • Earn more money via focus on higher value procedures Automated, Optional 24x7 Support Automated, Optional SDK Support • Indirect, trusted supplier Corporate • Physician / Clinics • Online • Independent Sales Reps • Free Beyond Provider Acquisition • Pay Per Click • Testing fees (per test/kit) • Subscription
  • 6. 6 • 15% Commission and SPIFs DIAGNOSLY - Thursday • Provider engagement • Device mfg relationships • R&D • Customer support • Payer Approval Process • Convenience of time and place • Reduced cost for uninsured or high deductible plan subscribers • Diagnostic and monitoring device OEMs • Insurance networks • Independent sales reps • Healthcare Professional Staffed Remote Centers • People (R&D) • Regulatory & Liability • Customer acquisition • Testing fees (per test/kit) • Engineers and designers • Legal/Regulatory Knowledge (IP, FDA, HIPPA, etc) • Reduced cost and increased quality of software • Lower costs due to reduced visits, less fraud and consistent, comprehensive data Consumers Families (primarily subsequent mothers) in the pregnancy and early childhood phase + traveling families Device Makers Small/med, at-home monitors and diagnostic devices Payers Self Insured Companies, Insurance, Medicare, Medicaid Providers General Practitioners, Midwives, Nurses, Office Manager, Specialists • Improved patient outcomes • Earn more money via focus on higher value procedures Automated, Optional 24x7 Support Automated, Optional SDK Support Indirect, trusted supplier Corporate • Physician / Clinics • Self-insured co’s • Independent Sales Reps • Marketing support for interest generation • Testing fees (per test/kit) • Subscription • Data acquisition fee
  • 7. 7 Payer Discussions  OTC: FSA & Insurance cannot reimburse OTC  CPT: Review indicates that some home diagnostics have data acquisition codes  A major reason companies self insure is that they can include this type of items in plan - Also likely to provide ready third party MD/Nurse Hotline
  • 8. CONFIDENTIAL 8 Diagnosly Ecosystem Patients Online Health Services (3rd Party) DIAGNOSLY PLATFORM Cloud & Data ServicesPhone, Tablet, and Web Applications Medical Devices (OEMs) Primary Physicians Payers Pharmacy Remote MD/Nurseline Independent Representatives
  • 9. CONFIDENTIAL 9 Primary Archetype – Day in the life Before Diagnosly Heather, 36: 3rd time expectant mom • 10pm: Noah (5 yrs) comes out to say that his throat hurts • Mom uses artery thermometer • Temperature is 101 • Mom gives him Tylenol and lozenge, puts him back to bed • 7am: Noah still complaining of sore throat, looks pale, swollen glands, fever still at 101 • 8am: Mom calls dr office as soon as it opens, makes appt for 11am • Noah gets popsicle and watches TV with Ryan (3 yrs) • Mom calls school to let them know Noah won’t be there, calls Ryan’s ju jitsu class to cancel for the day • 10:30am: Mom, Noah and Ryan go to drs office, wait 20 min in waiting room, 20 min in exam room, take strep test, wait for results, get prescription called in (Noah and Ryan are VERY bored) • Noon: Mom, Noah, and Ryan go to Walgreen’s to pick up prescription • 12:30: Arrive home and give Noah antibiotic, take a Valium
  • 10. CONFIDENTIAL 10 MVP
  • 11. CONFIDENTIAL 11 Diagnosly
  • 12. CONFIDENTIAL 12 My Devices Home Reports Inbox 3 My Devices Ear Infection Detector Last Used: 4/20/12 WheezOmeter (Asthma) Last Used: 4/15/12 Strep Throat Test Last Used: 3/25/12 Thermometer Last Used: 2/18/12
  • 13. CONFIDENTIAL 13 Connect a New Device Home Reports Inbox 3 My Devices My Devices Start
  • 14. CONFIDENTIAL 14 Searching for Devices… Home Reports Inbox 3 My Devices My Devices
  • 15. CONFIDENTIAL 15 Home Reports Inbox 3 My Devices My Devices 2 Devices Found Select Device to Connect: Ear Infection Detector Strep Throat Test
  • 16. CONFIDENTIAL 16 Home Reports Inbox 3 My Devices My Devices Connecting…
  • 17. CONFIDENTIAL 17 Ready to Begin Test Home Reports Inbox 3 My Devices My Devices Start Strep Throat Test Last Used: 3/25/12
  • 18. CONFIDENTIAL 18 Home Reports Inbox 3 My Devices My Devices Test in Progress…
  • 19. CONFIDENTIAL 19 Home Reports Inbox 3 My Devices My Devices Analyzing Data…
  • 20. CONFIDENTIAL 20 Home Reports Inbox 3 My Devices My Devices Test Complete Your Results are Ready View Share
  • 21. CONFIDENTIAL 21 Home Reports Inbox 3 Reports My Devices Strep Test Results 4/20/12 11:05 AM EST 103 mcL 32 mcL 1343 c/ 1535 c/ 10 342 mg/ White Blood Cell Red Blood Cell Hemoglobin Hierocratic Platelets Strep Live Consult
  • 22. CONFIDENTIAL 22 My Physicians Home Reports Inbox 3 My Devices Dr. Anne Miller, MD OB/GYN Last Contact: 3/29/12 Dr. Steve Blank, MD Entrepreneurology Last Contact: 4/20/12 Dr. Mike Johnson, MD Pediatrician Last Contact: 4/14/12
  • 23. CONFIDENTIAL 23 Primary Archetype – Day in the life After Diagnosly • 10pm: Noah (5 yrs) comes out to say that his throat hurts • Mom uses artery thermometer • Temperature is 101 • Mom swabs his throat and does a Diagnosly Strep Test which comes back positive • Diagnosly sends results to central server, runs confirmation scan and calls in prescription to 24 hour pharmacy • Noah takes Tylenol and lozenge • 10:30: Jason (dad) goes to pharmacy to pick up prescription • 11pm: Noah takes antibiotic • Everyone goes to sleep • 8am: Mom calls Noah in sick to his school • 11am: Noah goes with Mom to watch Ryan’s ju jitsu class
  • 24. CONFIDENTIAL 24 Adword Campaign • Signs of market demand among target segment. (young parents) • Signs of broader demand for home diagnostic tests.
  • 25. CONFIDENTIAL 25 Sales Funnel Awareness Interest Consideration Referrals Cross-Sell Up-Sell Unbundling Keep Purchase Consumers • Physician Recommendation (Partnerships) • Self-Insured Company Health Plan Recommendations (Partnerships) • Viral in online mother’s groups (Earlyvangelists) Providers • Independent Sales Force (Existing Relationships & Cold Calls) • Trade Journal Marketing • Professional Conferences
  • 26. CONFIDENTIAL 26 Awareness Interest Consideration Referrals Cross-Sell Up-Sell Unbundling Keep Purchase Sales Funnel Consumers • Recommendations from physician groups • Recommendations from other mothers • Targeted marketing campaign Providers • Sponsored research and articles regarding improved outcomes • Diagnosly forwards leads to independent reps
  • 27. CONFIDENTIAL 27 Awareness Interest Consideration Referrals Cross-Sell Up-Sell Unbundling Keep Purchase Sales Funnel Consumers • Ask physician for validation Providers • Speak to independent reps • Review materials for medical validity • Provide free samples
  • 28. CONFIDENTIAL 28 Awareness Interest Consideration Referrals Cross-Sell Up-Sell Unbundling Keep Purchase Sales Funnel Consumers • Subscription or One Time Purchase • From physician, online, pharmacy Providers • Indirect Sales Force
  • 29. CONFIDENTIAL 29 EVOLUTION OF DIAGNOSLY
  • 30. 30 DIAGNOSLY - Monday Patients Device Makers Physicians Payers Researchers What they want: • Fewer hospital visits (spend less time, and money) • On-demand testing • Frequent testing • Access to test data • Integration with other health data • Privacy, security • R&D • Tech support • Partner sales & support • Customer support Problem / Need – 1. Medical diagnostic tests cannot be conducted effectively outside of a hospital or clinic. • Diagnostic and monitoring device OEMs • Lab-on-chip OEMs • Health networks • Testing labs • Clinical research companies • Online health service providers Getting from them: • Hardware to conduct diagnostic tests • Access to customers Payment process Giving them: • A platform • Mobile connectivity • Data mgmt • Integration with online health ecosystem • People (R&D) • Tech infrastructure • Customer acquisition • Testing fees (per test) • Monthly subscriptions (freemium model) • Online (direct) • Physicians • Hospitals • Clinics • Health networks • Industry experts • Engineers and designers • IP experts • Privacy experts • Lawyers Get customers: • Partnerships • Online marketing Keep + Grow: • Quality service and • user experience 2. Developing and maintaining proprietary software for each device is expensive 3. Integrating patient data is hard Key Features – Provide an easy way for diagnostic devices to connect to the internet, so that patients and physicians can run tests and access their data from anywhere.
  • 31. 31 DIAGNOSLY - Tuesday • R&D • Tech support • Partner sales & support • Customer support • Convenience of time and place • Reduced cost for uninsured or high deductible plan subscribers • Diagnostic and monitoring device OEMs • Lab-on-chip OEMs • Health networks • Testing labs • Clinical research companies • Online health service providers Getting from them: • Hardware to conduct diagnostic tests • Access to customers Payment process Giving them: • A platform • Mobile connectivity • Data mgmt • Integration with online health ecosystem • People (R&D) • Tech infrastructure • Customer acquisition • Testing fees (per test) • Monthly subscriptions (freemium model) • Online (direct) • Physicians • Hospitals • Clinics • Health networks • Industry experts • Engineers and designers • IP experts • Privacy experts • Lawyers Get customers: • Partnerships • Online marketing Keep + Grow: • Quality service and • user experience • Reduced cost and increased quality of software • Lower costs due to reduced visits, less fraud and consistent, comprehensive data Consumers Families (primarily mothers) in the fertility testing, pregnancy, and early childhood phase Device Makers Makers of at-home monitors and diagnostic devices Payers Insurance, Medicare, Medicaid Providers General Practitioners, Midwives, Nurses • Improved patient outcomes • Earn more money via focus on higher value procedures
  • 32. 32 DIAGNOSLY - Wednesday • Provider engagement • Device mfg relationships • R&D • Customer support • Convenience of time and place • Reduced cost for uninsured or high deductible plan subscribers • Diagnostic and monitoring device OEMs • Insurance networks • Independent sales reps • People (R&D) • Customer acquisition • Regulatory & Liability • Testing fees (per test/kit) • Online • Independent sales reps • Physicians / Clinics • Engineers and designers • Legal/Regulator y Knowledge (IP, FDA, HIPPA, etc) • Reduced cost and increased quality of software • Lower costs due to reduced visits, less fraud and consistent, comprehensive data Consumers Families (primarily subsequent mothers) in the fertility testing, pregnancy, and early childhood phase Device Makers Small to medium makers of at-home monitors and diagnostic devices Payers Insurance, Medicare, Medicaid Providers General Practitioners, Midwives, Nurses, Office Manager, Specialists (Pediatricians, OB/GYNs, vets etc)• Improved patient outcomes • Earn more money via focus on higher value procedures Automated, Optional 24x7 Support Automated, Optional SDK Support Indirect, trusted supplier Livestock Managers Cattle ranchers, horse farmers Drug Developers Big Pharma, Biotechs
  • 33. 33 • 15% Commission DIAGNOSLY - Thursday • Provider engagement • Device mfg relationships • R&D • Customer support • Payer Approval Process • Convenience of time and place • Reduced cost for uninsured or high deductible plan subscribers • Diagnostic and monitoring device OEMs • Insurance networks • Independent sales reps • Healthcare Professional Staffed Remote Centers • People (R&D) • Regulatory & Liability • Customer acquisition • Testing fees (per test/kit) • Engineers and designers • Legal/Regulatory Knowledge (IP, FDA, HIPPA, etc) • Reduced cost and increased quality of software • Lower costs due to reduced visits, less fraud and consistent, comprehensive data Consumers Families (primarily subsequent mothers) in the pregnancy and early childhood phase + traveling families Device Makers Small/med, at-home monitors and diagnostic devices Payers Insurance, Medicare, Medicaid Providers General Practitioners, Midwives, Nurses, Office Manager, Specialists (Pediatricians, OB/GYNs, vets etc) • Improved patient outcomes • Earn more money via focus on higher value procedures Automated, Optional 24x7 Support Automated, Optional SDK Support Indirect, trusted supplier Corporate • Physician / Clinics • Online • Independent Sales Reps • Free Beyond Provider Acquisition • Pay Per Click $$$ • Testing fees (per test/kit) • Subscription
  • 34. 34 • 15% Commission and SPIFs DIAGNOSLY - Friday • Provider engagement • Device mfg relationships • R&D • Customer support • Payer Approval Process • Convenience of time and place • Reduced cost for uninsured or high deductible plan subscribers • Diagnostic and monitoring device OEMs • Insurance networks • Independent sales reps • Healthcare Professional Staffed Remote Centers • People (R&D) • Regulatory & Liability • Customer acquisition • Testing fees (per test/kit) • Engineers and designers • Legal/Regulatory Knowledge (IP, FDA, HIPPA, etc) • Reduced cost and increased quality of software • Lower costs due to reduced visits, less fraud and consistent, comprehensive data Consumers Families (primarily subsequent mothers) in the pregnancy and early childhood phase + traveling families Device Makers Small/med, at-home monitors and diagnostic devices Payers Self Insured Companies, Insurance, Medicare, Medicaid Providers General Practitioners, Midwives, Nurses, Office Manager, Specialists • Improved patient outcomes • Earn more money via focus on higher value procedures Automated, Optional 24x7 Support Automated, Optional SDK Support Indirect, trusted supplier Corporate • Physician / Clinics • Self-insured co’s • Independent Sales Reps • Marketing support for interest generation • Testing fees (per test/kit) • Subscription • Data acquisition fee
  • 35. TEAM FACTABASE Comprehensive Business Statistics on Developing Economies Day 5: 6 Interviews (48 Survey) Mary Leong, Alexis Farfaro, Calin Bota, Prosasty Chaudhuri, Bader AlKahtani
  • 36. HYPOTHESIS TESTING Channels Hypothesis Experiment Finding Interview / Survey • There’s a need for a direct sales team • Individual users will be acquired online through search engines Revenue Streams • Pricing and volumes Interview / Survey Inconclusive / needs more thought Customer Segments • I-banks are the only segment within financial firms • Professionals with per project needs (Entrepreneurs, Investors, etc…) are a segment interested in this Interview / Survey
  • 37. What are the most important costs inherent in our business model? Fixed? Variable? Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets. (Majority of which are not indexed on search engines & hidden on authority servers) Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates. • Management Consultancies • Investment Banks • Market Research Firms • Educational Institutes • Professionals/E ntrepreneur • Automated Services • Subscription model (comprehensive or sector/country specific) • Per-table sale option • API $xx per call • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 3 • Direct Sales • Online Sales Pay as you go
  • 38. What are the most important costs inherent in our business model? Fixed? Variable? Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets. (Majority of which are not indexed on search engines & hidden on authority servers) Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates. • Management Consultancies • Investment Banks and Commodity Traders • Market Research Firms • Educational Institutes • Professionals/E ntrepreneur • Automated Services • Subscription model (comprehensive or sector/country specific) • Per-table sale option • API $xx per call • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Direct Sales • Online Sales Pay as you go Still unclear how to approach individual users. - 50% of respondents had an interest in business statistics on developing markets and ALL of which faced serious challenges getting access to them. - From the people that faced challenges, the vast majority did not pay a subscription to a service if the tables they needed were on a premium service – However, when asked if they would be interested in premium tables sold on a per project basis, all were extremely excited about this offering. - The expected prices per table were very diverse ranging from $10 to $200.
  • 39. HYPOTHESIS TESTING Channels Hypothesis Experiment Finding Interview / Survey • There’s a need for a direct sales team • Professionals would use their credit cards to buy a table - and expense it to their companies Revenue Streams • Pricing and volumes Interview / Survey Inconclusive / needs more thought Customer Segments • Financial Services Firms are a segment on their own • Individual users (i.e. individual professionals) are a segment Interview / Survey
  • 40. What are the most important costs inherent in our business model? Fixed? Variable? Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets. (Majority of which are not indexed on search engines & hidden on authority servers) Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates. Companies and individuals with a need for detailed public statistics on Emerging Markets. • Frequent - Consultancies - Universities • Non-Frequent - Professionals - Entrepreneurs - Students/Professo rs • API access (special datasets) • Automated Services • Subscription model (comprehensive or sector/country specific) • Per-table sale option • API $xx per call • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 3 • Direct Sales • Online Sales Pay as you go
  • 41. What are the most important costs inherent in our business model? Fixed? Variable? Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets. (Majority of which are not indexed on search engines & hidden on authority servers) Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates. Companies and individuals with a need for detailed public statistics on Emerging Markets. • Frequent - Consultancies - Universities • Non-Frequent - Professionals - Entrepreneurs - Students/Professo rs • API access (special datasets) • Automated Services • Subscription model (comprehensive or sector/country specific) • Per-table sale option • API $xx per call • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Direct Sales - No VP of Sales, personal prospection from founder for key accounts - Sales admin • Online Sales for individual professionals (paypal and credit card) Pay as you go
  • 42. What are the most important costs inherent in our business model? Fixed? Variable? Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets. (Majority of which are not indexed on search engines & hidden on authority servers) Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates. • Automated Services • Subscription model (comprehensive or sector/country specific) • Per-table sale option • API $xx per call • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Direct Sales - No VP of Sales, personal prospection from founder for key accounts - Sales admin • Online Sales for individual professionals (paypal and credit card) Pay as you go • Management Consultancies • Investment Banks and Commodity Traders • Market Research Firms • Educational Institutes • Professionals/E ntrepreneur “Access through an excel interface is very important”
  • 43. HYPOTHESIS TESTING Channels Hypothesis Experiment Finding Interview / Survey • There’s a need for a direct sales team • Individual users will be acquired online through search engines Customer Segments Revenue Streams • Financial Services Firms are a segment on their own • Individual users (i.e. individual professionals) are a segment • Pricing and volumes ?? Interview / Survey Interview / Survey Inconclusive / needs more thought
  • 44. • Focusing on priority segments: – Management Consultancy, 100+ consultants – Investment Banking, 500+ employees 850 accounts $86 million spent on databases with potential for growth Based on census generalized to world + interviews FACTABASE: $13 million Based on $50/table or $15,000/subscription + interviews MARKET SIZE AND REVENUE HYPOTHESIS
  • 45. What are the most important costs inherent in our business model? Fixed? Variable? • Management Consultancies • Investment Banks and Commodity Traders • Market Research Firms • Educational Institutes • Professionals/E ntrepreneur • Automated Services• National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Direct Sales - No VP of Sales, personal calls from founder for key accounts - Sales admin • Online Sales for individual professionals Unique access to valuable official statistics on developing economies in a Convenient, Reliable and Cost effective way Per-table sale option (with pay as you go option for large accounts)
  • 46. Factabase What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue model? Pricing tactics? FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 A one stop shop for all public statistics on the GCC. A top notch user interface with export options Advanced Charting tools Monthly Reports Management Consultancies Local Companies International Companies interested in the region Direct Sales Online Sales • Personal Assistance • Self Service • Subscription service based on: • Duration of use • Coverage of content • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable)
  • 47. FACTABASE What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue model? Pricing tactics? FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 Enhancing access to public statistics on emerging markets that often have issues relating to: 1) Availability: Believed to be non existent or are difficult to find. 2) Convenience: Require multiple steps to prepare them for use and/or compare multiple tables from multiple sources. Through a user friendly one-stop setting with easy search, visualization and export options. Companies and individuals with a need for detailed public statistics on Emerging Markets. • Frequent and comprehensive (Financial services, consulting, Media, Universities and R&D) • Frequent and sector/country specific (Ad Agencies and Market Research) • Non-frequent and comprehensive (Individuals or Students) • Non-frequent and sector/country specific (Entrepreneurs, International investors) • Online • Direct Sales • Automated Services • Personal assistance • Co-creation • Subscription model (comprehensive or sector/country specific) for premium tables • Per-table sale options for premium tables • Ad-based model for free tables • API access for application developers • Special pricing for customized reports • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable)
  • 48. What are the most important costs inherent in our business model? Fixed? Variable? Enhancing access to public statistics on emerging markets that often have issues relating to: 1) Availability: Believed to be non existent or are difficult to find. 2) Convenience: Require multiple steps to prepare them for use and/or compare multiple tables from multiple sources. Through a user friendly one-stop setting with easy search, visualization and export options. Companies and individuals with a need for detailed public statistics on Emerging Markets. • Frequent (Consultancies) • Non-Frequent (Financial Services, Entrepreneurs, Individuals, News Agencies) • API access (special datasets) • Online • Direct Sales • Automated Services • Subscription model (comprehensive or sector/country specific) • Per-table sale option • API $xx per call • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 1; FOCUSED CUSTOMER SEGMENTS, RELATIONSHIPS, CHANNELS AND REVENUE STREAMS
  • 49. What are the most important costs inherent in our business model? Fixed? Variable? Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets. (Majority of which are not indexed on search engines & hidden on authority servers) Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real- time updates. Companies and individuals with a need for detailed public statistics on Emerging Markets. • Frequent - Consultancies • Non-Frequent - Professionals - Entrepreneurs - Students/Professo rs • Automated Services • Per-table sale option • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 2; FOCUSED CUSTOMER SEGMENTS, RELATIONSHIPS, CHANNELS AND REVENUE STREAMS • Direct Sales • Online Sales Pay as you go
  • 50. What are the most important costs inherent in our business model? Fixed? Variable? • Automated Services Per-table sale option (with pay as you go option for large accounts) • National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 3 • Direct Sales • Online Sales • Management Consultancies And Investment Banks • Market Research Firms • Educational Institutes • Professionals/E ntrepreneur Unique access to valuable official statistics on developing economies in a Convenient, Reliable and Cost effective way
  • 51. What are the most important costs inherent in our business model? Fixed? Variable? • Management Consultancies • Investment Banks and Commodity Traders • Market Research Firms • Educational Institutes • Professionals/E ntrepreneur • Automated Services• National Statistics Offices • Public Authorities • International Organizations • Companies that publish public statistics • Collecting and preparing the statistical tables • Development of automation software and webapps • Customer acquisition and management • Software/Web developers • Research analysts • Data entry people • HR and admin • Business Development • IT Infrastructure • FTE, IT costs, Rent (Fixed) • Part time employee salaries, SEO (variable) OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Direct Sales - No VP of Sales, personal calls from founder for key accounts - Sales admin • Online Sales for individual professionals Unique access to valuable official statistics on developing economies in a Convenient, Reliable and Cost effective way Per-table sale option (with pay as you go option for large accounts)
  • 52. Your Groceries… in the 21st Century 170 interviews + 15 partner meetings + Google ads + survey + website visits Jyotsna Gianluigi Kerli Brian Dimitar Camilla
  • 53. What do I have? Mmmm… What should I eat tonight?
  • 54. Start the App
  • 55. Chicken! What should I eat tonight?What do I have?
  • 56. Shop Now! Deliver Today!
  • 57. www.efood-global.com Number of hits: 100 Google Ads hits: 0
  • 58. Recipe and online shopping solutions exist - > millions of users No inventory and integrated solutions! Co-opetition – Clear interest from retailers
  • 59. • 42 Usability Tests – 76% - Yes! – 50% - willing to pay • $ 1.50 - $ 5.00 • Web Survey – 86% - Yes! – 70 % - willing to pay
  • 60. • Weekly meal plans • Single guys a potential customer segment • «Dial-a-Chef» - > «Impress the Date!» • Link to social media • My Recipe Book (add and edit)
  • 61. Revenue (2 Sided Platform) • Consumers: Free App (Users in year 500K)) • Advertising Revenue ($ 3-4 /1000 impression) • Commission on retail orders (starting in month 7th – 4-5% of online sales) Costs • Research & Development ($200K) • Sales and Marketing (10% of sales)
  • 62. • You must get out of the building - you WILL discover the unexpected • It is OK to Pivot • It’s challenging to work in a newly formed team under the time pressure • Communication is critical
  • 63. E-Food • End-users: - Single households (students / young professionals) - Family busy mums - Seniors • Small HoReCa businesses (restaurant chain) • Platform management • Platform promotion • Marketing & sales tool • Providing direct access to information on consumption behaviour of users • Increased loyalty through benefit to users • Grocery Distributors to stores / horeca sector • Apple / Android Platforms • University campuses (tech clubs) • OEM hardware manufacturers • Platform management and development • Customer acquisition costs • Cost for service premium users • transaction fees on online purchases (from supermarkets) • add revenues • Sales force • Platform • Customer base • Human resources 1 3 2 5 6 7 8 9 • Save time (finding and delivery) • Reduce costs (waste, best deals) • Diet advisory • Recipes management & recommendations • Automated services4 • Grocery Retailers • Distributors (Food) • Basic app is for free • Selling smartphone apps and extra services - freemium • Selling hardware (scanning devices) • Smartphone apps market • web sales • Household appliance store for scanners (Premium users) • Automated mass customization based on past consumption patterns & reccomendation analyses End user FMCG retailers Multi-sided platforms DAY 1
  • 64. E-Food Online and Offline End- users: - Family busy mums / working fulltime - Higher income - Willing to pay for convenience (headspace) • Platform development & management • Platform promotion • Marketing & sales tool • Providing direct access to information on consumption behaviour of users • Increased loyalty through benefit to users • Grocery Distributors to stores / horeca sector • Apple / Android Platforms • University campuses (tech clubs) • OEM hardware manufacturers • Delivery company (fresh direct) • Content providers • Platform management and development • Customer acquisition costs • Cost for service premium users • transaction fees on online purchases (from supermarkets) • add revenues • Sales force • Platform • Customer base • Human resources • Software developers • Partners relationship managers 1 3 2 5 6 7 8 9 • Save - time - money • Value added - Diet advisory - Recipes management • Automated services4 • Grocery Retailers • Distributors (Food) • Basic app is for free • Selling smartphone apps and extra services - freemium • Selling hardware (scanning devices) • Smartphone apps market • web sales • Household appliance store for scanners (Premium users) • Automated mass customization based on past consumption patterns & reccomendation analyses End user FMCG retailers Multi-sided platforms DAY 2 Key Insight: CUSTOMER DEMAND for inventory app?? YES! – KEEP GOING!! Key Changes: Refine customer segment and value proposition
  • 65. • Automated services • Dedicated manager • Online and Offline End-users: • - Family busy mums / working fulltime • - Higher and medium income • - Willing to pay for convenience (headspace) • People who cook at home and buy at least something online • Platform development & management • Platform promotion Marketing & sales tool: • new customers • Increase revenues • information on consumption behaviour • Increased loyalty • Grocery Distributors to stores / horeca sector • Apple / Android Platforms • Delivery company (fresh direct) • Content providers (recipes) • BeVinco • Quantified self • Platform management and development • Customer acquisition costs • Cost for service premium users • transaction fees on online purchases (from supermarkets) • add revenues • Direct sales force • Platform • Customer base • Software developers • Partners relationship managers • Content development and management 1 3 2 5 6 7 8 9 • Save - time - money • Value added - Diet advisory management - Recipes • Home cooking service 4 • Grocery Retailers • Distributors (Food) • Basic app is for free • Selling smartphone apps and extra services - freemium • Selling hardware (scanning devices) • On-line retailers • myvirtualpantry.com • Smartphone apps • web sales • Household appliance store for scanners (Premium users) • Automated and targeted mass customization based on past consumption patterns &, reccomendation analyses End user FMCG retailers Multi-sided platforms DAY 3HoReCa Key Insights: PUPIL DILATING INTEREST and WTP for inventory + recipes App converts in store customers  online Key Changes: Identified key potential retail partner (Bevinco) Understood our B2B value proposition. Redefined customer segment
  • 66. Automated Service (Smartphone App and Website) • Time Conscious • Tech Friendly • Cook at home NB. Trackers (Early evangelists) • Platform development & management • Platform promotion Generate Sales, expand retailers customer base and avg. shopping basket • Retailers (Physical & Online) • Apple / Android Platforms • Content providers (Recipes etc.) • Platform management and development • Customer acquisition costs • Cost for service premium users Sales commissions on retail orders • Software developers • Partners relationship managers • Content management 1 3 2 5 6 7 8 9 • Save time & effort by Tracking, Deciding on & Buying Groceries • Eat Better 4 Physical Retailers Online Retailers • Two tier Smartphone App pricing : Lite = Free, Pro = $1.99 (Limited time free promo) • Selling hardware (scanning devices) Direct App Store In –person dedicated (Relationship Manager) Consumers DAY 4Advertisers In-person dedicated (Ad sales) Indirect Partner Stores Direct Advertisers Deliver targeted Advertising Display ads, recommendations MULTI-SIDED PLATFORM Advertiser Retailers Key Insights: Concept validated Customers willing to scan / record inventory Sales delivery partners are NOT small retailers Opportunity to integrate Advertising channel Key Changes: Pivot to TRACK – DECIDE – BUY (not recipe service) Refined revenue model: Paid App, revenue sharing with large retailer, advert revenue.
  • 67. Automated Service (Smartphone App and Website) • Time Conscious • Tech Friendly • Cook at home NB. Trackers (Early evangelists) • Platform development & management • Platform promotion Generate Sales, expand retailers customer base and avg. shopping basket • Large retailers (Physical & Online) (Freshdirect, Dagostino’s Eden Garden) • Apple / Android Platforms • Content providers (Recipes etc.) • Platform management and development ($200k) • Customer acquisition costs • Cost for service premium users Sales commissions on retail orders • Software developers • Partners relationship managers • Content management 1 3 2 5 6 7 8 9 • Save time & effort by Tracking, Deciding on & Buying Groceries • Eat Better • Social 4 Physical Retailers Online Retailers • FREE APP • Two tier Smartphone App pricing : Lite = Free, Pro = $1.99 (Limited time free promo) • Selling hardware (scanning devices) Direct App Store In –person dedicated (Relationship Manager) Consumers DAY 5Advertisers In-person dedicated (Ad sales) Indirect Partner Stores Direct Advertisers Deliver targeted Advertising Display ads, recommendations MULTI-SIDED PLATFORM Advertiser Retailers Key Insights: Users loved the app Desire for extended soft user functionality Interest from large retail partners Key Changes: Free App
  • 68. Automated Service (Smartphone App and Website) • Time Conscious • Tech Friendly • Cook at home NB. Trackers (Early evangelists) • Platform development & management • Platform promotion Generate Sales, expand retailers customer base and avg. shopping basket • Large retailers (Physical & Online) (Freshdirect, Dagostino’s Eden Garden) • Apple / Android Platforms • Content providers (Recipes etc.) • Platform management and development ($200k) • Customer acquisition costs Sales commissions on retail orders • Software developers • Partners relationship managers • Content management 1 3 2 5 6 7 8 9 • Save time & effort by Tracking, Deciding on & Buying Groceries • Eat Better • Social 4 Physical Retailers Online Retailers FREE APP Direct App Store In –person dedicated (Relationship Manager) Consumers FINAL CANVASAdvertisers In-person dedicated (Ad sales) Indirect Partner Stores Direct Advertisers Deliver targeted Advertising Display ads, recommendations MULTI-SIDED PLATFORM Advertiser Retailers
  • 69. Adeem Fenster Shashi Shrimali Stella Chan Sanjay Bharadwaj Richard James Neeraj Lal Total Interviews: 242 to date (21 in person + 42 online + 3 mall visits + 2 store manager interviews yesterday + BUILT A WEBSITE!) Authentic Asia Tea T4U
  • 70. Tested the concept: Kiosk at a mall
  • 71. Click the step that’s most important to your tea experience
  • 72. Like the idea 86% Hate the idea 1% I wish the idea were... 13% Testing the Kiosk Concept Coffee 19% Cold tea drinks 22% Food 28% Pastries 24% Other 7% What are we missing? 10% 10% 24% 41% 41% 59% Setting how long I want my tea to boil Something else... Having someone make the tea for me A lounge to hang out and enjoy my tea Remebering the way I made my tea so I don't have to do it again Choosing the tea leaves that I want What's most important? Absolutely 49% Maybe 33% No way 10% Only if... 8% Would you buy? Validation but still needs improvement…
  • 73. Tested the concept: Website MVP! TeaLAB
  • 74. How will we Get, Keep and Grow Customers? • Consistent quality • Increase product variety • loyalty program tea card • word-of-mouth from students (campuses) • Tea cart promotion via Facebook or Tweeter • Tea tasting event to collect customer feedback (via iPad) Kadak – 04/16/2012 Who are our most important customers? • repeat customers, Asian- immigrants consumers • health conscious customers What are their archetypes? • The Indian • The rising teen • Healthy parents • Undergrads • Baby-boomers What Job do they want us to get done for them? • make the tea (incl. picking the best ingredients) • education of tea What Key Activities do we require? • Purchasing raw material • Brewing tea • Setting up retail outlets • Advertising, & marketing • Setting up customer feedback channel and analysis • Business development with campuses • Product mix creation • FP&A management • Hiring Which of our customer’s problems are we helping to solve? • consumer have limited access to authentic Asian tea in a retail format Which customer needs are we satisfying? • Desire to consume authentic Asian tea outside home What are the Key Features of our product that match customers problem/need? • taste of our tea (quality) • the availability of tailored flavor • speed of delivery • convenience Who are our Key Partners? • Indian stores and Asian stores • Eventually tea makers • Indirect distribution through -- subway, panda express Who are our key suppliers? • Indian store from NJ • Chinese stores from Chinatown • Grocery stores such as Wal-mart • Restaurant utensils/hardware suppliers What are we getting from them? Giving them? • Milk, sugar, Splenda, tea leaves, cups, spices, pots/pans • MONEY, more revenue What are the most important costs inherent in our business model? Fixed • Rent • Equipment, furniture and fixtures Variable • Raw materials & supplies • Employee salaries How do we make money? What’s the revenue model? Pricing tactics? • Low Intro promotion price to attract customers($1.99) • Keep the price close to Starbucks thereafter • Never price below breakeven even during promotion period • Find ways to give them discounts (survey --- buzz discounts) Through which Channels do our Customer Segments want to be reached? • direct retail • direct-to-home delivery What Key Resources we require? • Money • Retail outlets • POS system to track sales • SAP system for accounting • License from NY / Campus approval • HR for hiring & training • Tea brewing equipment
  • 75. How will we Get, Keep and Grow Customers? • Consistent quality • Increase product variety • loyalty program tea card • word-of-mouth from students (campuses) • Tea cart promotion via Facebook or Tweeter • Tea tasting event to collect customer feedback (via iPad) Kadak – 04/17/2012 (morning) Who are our most important customers?  repeat customers, Asian-immigrants consumers • health conscious customers What are their archetypes? •  The Indian • The rising teen • Healthy parents •  Undergrads •  Baby-boomers What Job do they want us to get done for them? •  make the tea (incl. picking the best ingredients) •  education of tea What Key Activities do we require? • Purchasing raw material • Brewing tea • Setting up retail outlets • Advertising, & marketing • Setting up customer feedback channel and analysis • Business development with campuses • Product mix creation • FP&A management • Hiring Which of our customer’s problems are we helping to solve? • consumer have limited access to authentic Asian tea in a retail format Which customer needs are we satisfying? • X Desire to consume authentic Asian tea outside home What are the Key Features of our product that match customers problem/need? •  taste of our tea (quality) •  the availability of tailored flavor • speed of delivery • convenience Who are our Key Partners? • Indian stores and Asian stores • Eventually tea makers • Indirect distribution through -- subway, panda express Who are our key suppliers? • Indian store from NJ • Chinese stores from Chinatown • Grocery stores such as Wal-mart • Restaurant utensils/hardware suppliers What are we getting from them? Giving them? • Milk, sugar, Splenda, tea leaves, cups, spices, pots/pans • MONEY, more revenue What are the most important costs inherent in our business model? Fixed • Rent • Equipment, furniture and fixtures Variable • Raw materials & supplies • Employee salaries How do we make money? What’s the revenue model? Pricing tactics? • Low Intro promotion price to attract customers($1.99) • Keep the price close to Starbucks thereafter • Never price below breakeven even during promotion period • Find ways to give them discounts (survey --- buzz discounts) Through which Channels do our Customer Segments want to be reached?  direct retail/franchise model • direct-to-home delivery What Key Resources we require? • Money • Retail outlets • POS system to track sales • SAP system for accounting • License from NY / Campus approval • HR for hiring & training • Tea brewing equipment
  • 76. How will we Get, Keep and Grow Customers? • Unique, customized tea, their way • Consistent quality • Increase product variety • loyalty program TEA I.D. Tea Lab – 04/18/2012 Who are our most important customers? • repeat customers • health conscious customers • Customers looking for a fun new experience What are their archetypes? • The Indian • The rising teen • Healthy parents • Undergrads • Baby-boomers What Job do they want us to get done for them? • Custom tea their way! • Fun/unique ingredients • make the tea (incl. picking the best ingredients) • education of tea • cool place to hang out What Key Activities do we require? • Purchasing raw material • Brewing tea • Setting up retail outlets • Advertising, & marketing • Setting up customer feedback channel and analysis • Business development with campuses • Product mix creation • FP&A management • Hiring Which of our customer’s problems are we helping to solve? • consumer don’t have access to quality tea outside the home • Formula/proportions are off Which customer needs are we satisfying? • Tea the “way I like it” outside the home • Cool experience / social setting for tea • Tea w/out tea bags What are the Key Features of our product that match customers problem/need? • taste of our tea (quality) • Experience • the availability of tailored flavor • speed of delivery • Convenience Who are our Key Partners? • Indian stores and Asian stores • Eventually tea makers • Indirect distribution through -- subway, panda express Who are our key suppliers? • Indian store from NJ • Chinese stores from Chinatown • Grocery stores such as Wal-mart • Restaurant utensils/hardware suppliers What are we getting from them? Giving them? • Milk, sugar, Splenda, tea leaves, cups, spices, pots/pans • MONEY, more revenue What are the most important costs inherent in our business model? Fixed • Rent • Equipment, furniture and fixtures Variable • Raw materials & supplies • Employee salaries How do we make money? What’s the revenue model? Pricing tactics? • Online sales for home consumption • Data – based on the TEA ID card! • Keep the price close to Starbucks thereafter • Never price below breakeven even during promotion period • Find ways to give them discounts (survey --- buzz discounts) Through which Channels do our Customer Segments want to be reached? • Teal lab stores • direct-to-home delivery • Online What Key Resources we require? • Money • Retail outlets • POS system to track sales • SAP system for accounting • License from NY / Campus approval • HR for hiring & training • Tea brewing equipment
  • 77. How will we Get, Keep and Grow Customers? • Unique, customized tea, their way • Consistent quality • Increase product variety • TEA I.D. • word-of-mouth from students (campuses) • Tea tasting event to collect customer feedback (via iPad) Tea Lab – 04/19/2012 Who are our most important customers?  repeat customers  health conscious customers  Customers looking for a fun new experience What are their archetypes?  The rising teen  Healthy parents  Undergrads What Job do they want us to get done for them?  Custom tea their way!  Fun/unique ingredients  make the tea (incl. picking the best ingredients)  education of tea  cool place to hang out What Key Activities do we require?  Purchasing raw material  BRAND – Tea Lab  Brewing tea  Setting up retail outlets  Advertising, & marketing  Setting up customer feedback channel and analysis • Business development with campuses • Product mix creation • FP&A management • Hiring Which of our customer’s problems are we helping to solve?  consumer don’t have access to quality tea outside the home  Formula/proportions are off Which customer needs are we satisfying?  Tea the “way I like it” outside the home  Tea w/out tea bags  Cool experience / social setting for tea What are the Key Features of our product that match customers problem/need?  Taste of our tea (quality)  The availability of tailored flavor  Speed of delivery  Convenience  Experience Who are our Key Partners? • Indian stores and Asian stores • Eventually tea makers • Indirect distribution through – franchises in airports, hotels? subway, panda express Who are our key suppliers? • Indian store from NJ • Chinese stores from Chinatown • Grocery stores such as Wal-mart  Tea merchants  Kiosk manufacturers  Restaurant utensils/hardware suppliers What are we getting from them? Giving them?  Milk, sugar, Splenda, tea leaves, cups, spices  MONEY, more revenue What are the most important costs inherent in our business model? Fixed  Rent  Equipment, furniture and fixtures Variable  Raw materials & supplies  Employee salaries How do we make money? What’s the revenue model? Pricing tactics? • Online sales for home consumption • Data – based on the TEA ID card! • Keep the price close to Starbucks thereafter • Never price below breakeven even during promotion period • Find ways to give them discounts (survey --- buzz discounts) Through which Channels do our Customer Segments want to be reached? • Tea lab stores • direct-to-home delivery • Online What Key Resources we require? • Money • Retail outlets • POS system to track sales • SAP system for accounting • License from NY / Campus approval • HR for hiring & training • Tea brewing equipment Tea lab kiosks
  • 78. • Unique, customized tea, their way • Consistent quality • Increase product variety • TEA I.D. • Tea Pots Tea Lab – 04/20/2012 Mall shoppers repeat customers health conscious customers Customers looking for a fun new experience  The rising teen  Healthy parents  Undergrads  Custom tea their way!  Fun/unique ingredients  Have us make your tea  education of tea  cool place to hang out  Purchasing raw material  BRAND – Tea Lab  Brewing tea  Setting up kiosks  Advertising, & marketing  Setting up customer feedback channel and analysis • Product mix creation • Hiring + training consumer don’t have access to quality tea outside the home Formula/proportions are off Tea the “way I like it” outside the home  Taste of our tea (quality)  The availability of tailored flavor  Remember me  Experience  Cool experience / social setting for tea • Tea manufactures • Mall managers • Other raw material suppliers Kiosk manufacturers Restaurant utensils/hardwar e suppliers Milk, sugar, Splenda, tea leaves, cups, spices Equipment Fixed Rent Equipment, furniture and fixtures Variable Raw materials & supplies Employee salaries • Mall kiosks • Online sales for home consumption • Flagship store • Data – based on the TEA ID card! • Tea lab kiosks • Flagship store • Money • Custom kiosks • POS system to track I.D • HR for hiring & training • Tea brewing equipment
  • 79. Walk in with an idea End of day 2 End of day 1 End of day 3 End of day 4 Our Journey in this class …… Beginning Day 1
  • 80. Marketing campaign designed for delivery to cell phones, smart phones and other media devices. Team members: Alex Goncharuk Jorge Melgar Hasan Shahid Broor Spahr van der Hoek Interviews: 22 restaurants, 17 customers, 2 channel partner, 2 telecom, 2 medical,
  • 81. Customer Discovery Phase 1Phase 2 Phase 3 Phase 4 State Hypotheses Restaurants have a marketing problem Customers don’t like to receive random mobile marketing (i.e. SMS, email) Restaurants Customers Test the Problem 2 interviews with owners 14 interviews with customers Test the Solution Web-based mobile marketing tool App that allows them to choose what they receive Verify or Pivot Pivot Verified
  • 82. Restaurant Segments Fine dining - Always full - Dedicated marketer Midlevel prime location - Generally full - Part-time marketer Midlevel neighborhood Low restaurants - No budget Margin 17% Labor 39% Food 25% Others 9% Rent 10% - Income subject to weekly and monthly seasonality - Dependent on loyal customers sales - Low margins don’t allow high discounts - Mixed results from digital marketing - Fear of implementing new technologies
  • 83. Customer Segments Age 20-25 - Price, location, quality - Website Age 26-35 - Quality, decor - Zagat, word of mouth Age 35-45 - Quality - Zagat Age 45+ - Quality, clean - Known restaurants - Interest in receiving opt-in mobile marketing information - Location based restaurant info - Initial interest in getting an app that gives the quality, price and promotions
  • 84. Market Size US 600,000 New York 28,000 Mid Level 8,700 - Restaurant expenses in the mid level range for marketing/discounting is within $750-$1,000 - Assuming a 30% market share and a fixed monthly fee of $200 annual revenue is $6.2M
  • 85. Restaurant’s Ecosystem Suppliers Merchant processing provider Point of Sale
  • 86. Product Diagram Data Data Application Pay Bill Receipt Registration (email) Marketing Promotions (web) Push / Pull Promotions (mobile) Point of Sale Marketing ApplicationPortal with Promotions Targeted Campaigns
  • 87. Acquire Customers Plan
  • 88. MVP - Customer
  • 89. MVP - Restaurant
  • 90. Web Portal Customers Statistics - Sales - Average Expenditure - Frequency Marketing summary - Subscribers - Consumption patterns - Promotion Results
  • 91. Mobile Marketing Day 1 Most important customers? Small businesses (or Telecoms, marketing agencies?) What are their archetypes? Companies that would want to use mobile marketing services Job they want us to get done? Deliver msg to end- customer through platform Key Activities do we require? Software development, data analysis Problems solved: - Allow customers to develop and execute mobile marketing campaigns (based on interactive access with end users) Needs satisfied: - Efficient low-cost communication with end consumers Key features? - Simple standardized Web- based software tool allowing use of SMS, QR codes and NFC Who are our Key Partners? Telecoms Who are our key suppliers? Telecoms, search engines What are we getting from them? Giving them? Phone numbers/ short code, advertising Important costs? Fixed? Variable? Software (technology) development, (fixed) marketing/sales (variable) Subscription fee, campaign fee and performance-based fee? Which Channels? Online (trade fairs?) What Key Resources we require? People, IT infrastructure (data center) Get/keep/Grow Customers? Low-cost platform that is effective and quickly shows results (switching costs for telecoms and marketing)
  • 92. Mobile Marketing Day 2 Restaurants want to minimize the dependency on discounters Restaurant want to run local marketing campaign ( 2 mins breakfast , cheap bagel after 11am, …) Key Activities do we require? Marketing Campaign templates, Software development, relationship building - Restaurants to reduce sales fluctuations - Restaurants to engage customers Who are our Key Partners? Online advertisement Who are our key suppliers? Telecoms, search engines What are we getting from them? Giving them? Message delivery services Important costs? Fixed? Variable? Software (technology) development, (fixed) marketing/sales (variable) Fee per marketing campaign, monthly subscription fee Which Channels? Online What Key Resources we require? People, IT infrastructure (data center) Get/keep/Grow Customers? - Low-cost platform - Marketing Campaign Templates - Cheap and an effective way of reaching the customers - Reaching local customer (location based)
  • 93. Mobile Marketing Day 3 Restaurants want to minimize the dependency on discounters Restaurant want to run local marketing campaign ( 2 mins breakfast , cheap bagel after 11am, …) - Mid pricing level restaurants in neighborhood areas Key Activities do we require? Marketing Campaign templates, Software development, relationship building - Restaurants to reduce sales fluctuations - Restaurants to engage customers - Cheap and an effective way of reaching the customers - Reaching local customer (location based) - Increase customers without affecting existing sales Who are our Key Partners? Online advertisement review webpages restaurants Who are our key suppliers? Telecoms, search engines What are we getting from them? Giving them? Message delivery services Quality information Important costs? Fixed? Variable? Software (technology) development, (fixed) marketing/sales (variable) Fee per marketing campaign, monthly subscription fee Fee based on effectiveness Which Channels? Online, app, loyalty programs What Key Resources we require? People, IT infrastructure (data center) Get/keep/Grow Customers? - Low-cost platform - Marketing Campaign Templates - Filter incoming “discount” info - Receive restaurant information (price, quality) if you are in an unknown place - People between 30- 45 years - People in an unknown area Free
  • 94. Mobile Marketing Day 4 - Mid priced level restaurants Build and Support marketing Campaign templates Website and Mobile App development Relationship building - Increased profit - Increased customer loyalty- Restaurants databases - Online advertisement - Review websites - Restaurants - search engines Important costs? Fixed? Variable? Software (technology) development, (fixed) marketing/sales (variable) Campaign fee, Subscription - Piggy back on loyalty program - Restaurant databases websites People, IT infrastructure, Telecom Infrastructure, Marketing Strategies for Restaurants - Provide cheaper alternative to discounter websites - Customizable marketing program - Filtered promotion information - Local and timely promotions - Age group 30-45 years - Travellers Free - Filtered access to local deals - App store - visited restaurants
  • 95. Mobile Marketing Day 5  Mid priced level restaurants  Website and Mobile App development  Marketing & Sales ‘Tailored’ marketing to existing customers New customer acquisition Expenditure analysis Increase profit Increase customer loyalty  Merchant processing service provider Software (technology) development(fixed), marketing/sales (variable), IT Infrastructure(fixed/variable) Campaign fee, Monthly Subscription fee - Direct sale  People, IT infrastructure, Payment Processing Network  Functionality Demo  Switching cost Targeted promotion information Age group 30-45 years Free  Economic benefit  Reward program Web portal, Visited restaurants, App store - Restaurants databases - Online advertisement - Review websites - Restaurants - search engines Build and Support marketing Campaign templates Relationship building Telecom Infrastructure, Marketing Strategies for Restaurants  Provide cheaper alternative to discounter websites Customizable marketing program - Piggy back on loyalty program - Restaurant databases websites Local and timely promotions Travellers
  • 96. Summary  Payment terminal as a client data aggregation point  Acquisition and activation points  High cost of customer(restaurants) acquisition  Targeting new and existing clients  Rewarding the existing clients, target high spenders  provide spenditure statistics that drives targeted marketing campaigns  Payment Processor as a KEY Partner Next Steps …
  • 97. Jiae.com: Interest based platform for creative minds in China Team: Deymon Chen, Yu Guo(Hugh), Mathias Rosenthal, James Hagen 12 Fashion Bloggers Interviews + 12 Top Designers Surveys 1 digital Marketing Domain Expert 2012.04.20 - Day 5 Potential Partners with 4Leading Design Schools Total Numbers Up to Day: 780
  • 98. Survey 3: Western Fashion/Designer Content? Designer like Western Fashion/Design Content, However, - they are either blocked 50% - or not be translated into Chinese 33.3% New Vision: Great Design should have no boundaries: It can transcend borders, language, traditions, culture, and even the aging of time. It speaks directly to a person’s heart I like it, most of them are translated, 16.7% No Interest 0% Read English, but Blocked 50% Read Chinese, need translation 33%
  • 99. • Main objective of blogger is to increase visibility • Did not realize content was blocked in China • All interested in tapping into the Chinese Market but don’t know how • All interested in partnering with a site that would handle translation and elegantly display content Key learning from Western Fashion Bloggers
  • 100. • Just returned from China, and exploring innovative ways to expand visibility there • Eager to see our site, and very interested • Willing to provide a feed of original content from multiple design discipline • Design Schools could be key content providers and advertisers Key learning from Leading Design Schools
  • 101. Ecosystem
  • 102. Customers Acquisition Cost • Fashion Bloggers: $1450/Fashion Blogger x 100 = $180000 • $2.1/Design students x 163000 = $345000 • $0.77/End users X 750000 = $580000
  • 103. Collect and Share Ideas Tools for Design School Targeted Ads Space Find Good Designers Design Market Places Top Designers Design School Design Media Government Web Partners Companies/Brands Platform Management Customer Acquisition Expanding Reach Platform Customer Base Brand Network Platform Costs Customer Acquisition Costs Marketing and Sales Costs Advertising CPS (click per sales) and Design Products Sales Free Interest Based Network Acquisition Activation Retention Jiae.com 1300 Design Schools Design Union Sites SNS Sites (weibo, renren) Designers Design schools Consumers Companies Advertiser Day 1 Business Canvas for Jiae
  • 104. •Photo based nice and clean SNS platform •More Traffic •Top Designers Design School Design MediaGovernmentWe b PartnersCompanies/B rands •Platform Management •Customer Acquisition •Expanding Reach •Platform •Customer Base •Brand •Network Platform Costs Customer Acquisition Costs Marketing and Sales Costs Advertising Design Marketplace •1:1 Customer Support •China Photo Related sites •China SNS Sites - weibo, renren, qq, douban •Fashion Bloggers •Find, organized and share inspiration Ideas effectively (Designers) •Find jobs/projects (Designers) •Showcase Portfolios for Feedback •Find Good Designers (Companies) •Design Marketplaces (All Customers) •Designers •Consumers •Companies •Advertiser•D-School Ambassador •1300 Design Schools •Design Message Boards •Jiae.com Free Interest Based SNS Platform •Community Management Day 2 Business Canvas for Jiae (1 fashion blogger, 9 students interviews) •Collect and Share Ideas Tools for Design School •Targeted Ads Space •Find Good Designers •Design Market Places •AcquisitionActivationRete ntion
  • 105. •Photo based nice and clean SNS platform •More Traffic •Easy to Share •Statistics Tool •Platform Management •Customer Acquisition •Expanding Reach •Platform •Customer Base •Brand Platform Costs Customer Acquisition Costs Marketing and Sales Costs Advertising, Sponsorships, Deign Services Click Per Sales , Design Marketplace •1:1 Customer Support •China Photo Related sites •China SNS Sites - weibo, renren, qq, douban •Fashion Bloggers •Find, organized and share inspiration Ideas effectively •Find jobs/projects •Showcase portfolios for feedback, big Space •Target Ad Space •Find Good Designers •Promotion Opportunity •Sales Channels •Design Marketplaces •Designers Companies • Advertising • Sponsorship • Design Services • Click Per Sales •D-School Ambassador •1300 Design Schools •Design Message Boards •Jiae.com Freemium Free Interest Based SNS Platform Day 3 Business Canvas for Jiae (4 companies, 2 fashion bloggers, 3 designers interviews) •End Users Consumers •Fashion Medias •Design School •Government •Design Associations •Traffic Partners •Online B2C Partners •Consumers •Companies •Advertiser •Community Management
  • 106. •Image based nice and clean SNS platform •More Traffic •Easy to Share •Statistics Tool •Platform Management •Customer Acquisition •Expanding Reach •Platform •Customer Base •Brand Platform Costs Customer Acquisition Costs Marketing and Sales Costs Advertising, Sponsorships, Deign Services Click Per Sales , Design Marketplace •1:1 Customer Support •China Photo Related sites •China SNS Sites - zcool, weibo, renren, qq, douban •Fashion Bloggers •Find, organized and share inspiration Ideas effectively Rich/Fresh Content •Find jobs/projects Image Based Content •Showcase portfolios for Expert Feedback big Space •Target Ad Space •Find Good Designers •Promotion Opportunity •Sales Channels •Design Marketplaces •Designers Companies • Advertising • Sponsorship • Design Services • Click Per Sales •D-School Ambassador •1300 Design Schools •Design Message Boards •Jiae.com Freemium Free Interest Based SNS Platform •End Users Consumers •Fashion Medias •Design School •Government •Design Associations •Traffic Partners •Online B2C Partners Day 4 Business Canvas for Jiae (12 Interviews, 410 Survey, MVP)
  • 107. •Image based nice and clean SNS platform •More Traffic •Easy to Share •Statistics Tool, Translation •Platform Management •Customer Acquisition •Expanding Reach •Platform •Customer Base •Brand Platform Costs Customer Acquisition Costs ($1.1 million for 100 fashion bloggers, 160k students, 750000 designers) Advertising, Sponsorships, Deign Services Click Per Sales , Design Marketplace •1:1 Customer Support •China Photo Related sites •China SNS Sites - zcool, weibo, renren, qq, douban •Fashion Bloggers •Find, organized and share inspiration Ideas effectively Rich/Fresh Content •Find jobs/projects Image Based Content •Showcase portfolios for Expert Feedback big Space •Target Ad Space •Find Good Designers •Promotion Opportunity •Sales Channels •Design Marketplaces •Designers Companies • Advertising • Sponsorship • Design Services • Click Per Sales •D-School Ambassador •1300 Design Schools •Design Message Boards •Jiae.com Freemium Free Interest Based SNS Platform Day 5 Business Canvas for Jiae (12 Interviews, 12 Survey, 4 Design Schools) •End Users Consumers •Fashion Medias •Design School •Government •Design Associations •Traffic Partners •Online B2C Partners
  • 108. FAVORNET platform for exchanging high-value favors 16 INTERVIEWS 81TOTAL OVER 4 DAYS Dave Spezzano, Alexey Okhlopkov, Amy Villari, Steve Alperin, Dmitri Dyakin
  • 109. key findings: value to favor doer • reduce time spent doing favors • prioritize response order & probability based on profile of requester • increase likelihood of payback value to connector • validate requester & quality of connection • reduce time of making introduction • tangible benefit from fulfilled favors (what is it? % of transaction? explore) • status in network • goodwill (can this be distributed?) value to requester • obvious reasons
  • 110. challenges: trust barrier • possible solutions: – aggregate existing social data (#/type connections, online behavior) – user scores, reviews, ratings, rankings NEXT STEP: ENGINEER TO DESIGN FUNCTIONALITY (KEY RESOURCE) monetizing behavior • from customer discovery, we learned that FAVORS ≠ SERVICES I do / receive for other reasons: -Goodwill / karma -Social expectation I get paid / I’m willing to pay NEXT STEP: EXPERTISE IN BEHAVIORAL PSYCHOLOGY (KEY RESOURCE)
  • 111. favor, as we define it….. • high value • would require the receiver to go through extraneous effort to achieve without the doer • allows access to otherwise inaccessible areas of life – contacts (business & social) – services & products – information & expertise …..but how do we differentiate ourselves?
  • 112. Why people give and receive favors? Who? Why? Benefit? Why Online? Person in need of a favor No other way to get “it” done Extended network to areas not available before My direct network is limited (1st degree) Delivering a favor for a cause Monetize favor for a belief I hold Philanthropy Larger market to raise awareness Delivering a favor for a trade Monetize favor for myself Created value on something that only had value to holder Create a bidding/auction market where none currently exists Delivering a favor to help others Feel good about myself Extended network to areas not available before Reach those outside my network Delivering a favor for self gratification Raise my profile and status Self serving; serve the individuals ego Express my status to others visually
  • 113. first movers
  • 114. tradeafavor.com • Stuck in “re-launch” as of mid-2011 • < 13,000 users, ~130 views per day • [In 2007] we made the strategic decision to build the prototype as an application for the new Facebook platform • It’s a social application, we kept saying, and it needs a social network to run on • Limited to barter without monetary value TIMING IS EVERYTHING
  • 115. first movers
  • 116. charity buzz • $15 m revenues, $3 m EBITDA • No integration with other social media sites; doesn’t leverage information of user • According to a VC: “it’s a nice little business” SCALE IS CRITICAL
  • 117. what they miss (if we had more time…) • scale – TEST SOLUTIONS: build an app, partner, disrupt • not all favors are equal – TEST SOLUTIONS: rank, rate, monetize; incentivize doer & not just requester • high-end is very small segment – TEST SOLUTIONS: broad segment (everyone online with a LinkedIn & facebook profile) • value to connectors as a segment – TEST SOLUTIONS: rank, rate, monetize; incentivize connector; test value of status
  • 118. problems/issues that still need to be addressed • incentives – best way to attract customers to use – how do we incentivize givers to connect with receivers? • moving a behavior from an offline to an online – gain trust of users – maintain security and intimacy of behavior – associate emotion and reaction in a virtual world • over saturation – integrate with other online platforms – leverage existing networks/platforms/user base
  • 119. FAVORNET Search Who Are You? Mission StatementRecent Favors TestimonialsCategories AffiliationsHome Site Schematic
  • 120. Who are you? • Need a favor • Give a favor for charity • Favor for trade • Favor to help • Favor for gratification • What you can offer? • What you need? • Who can you match me with? (Search Box for Favors) (Dropdown) • Peer verification • Match through Networks • Search key words • Favor score from previous review information • Compatibility test Categorization • Introductions • Events • Experiences • Quick hits Connection How does it work? • Select Category • Select a favor • Broker deal
  • 121. Exchange Occurs Following Exchange receiver gives peer rating on execution/delivery/ usefulness Peer ratings create trust and provide credibility to the source Peer rating is then delivered to social stream of networks Option to push out Steve needs help with (fill in the blank) for a client outing . No one in Steve’s immediate network has access or can help. Steve posts on FavorNet. Joe responds he can help but asks for something or nothing in return. Following the completion of the transaction, Steve peer rates Joe on his ability to deliver. After the Exchange
  • 122. CANVAS 1.1 People who need high quality information and services and have trouble finding it. Business builders, salesmen, anyone who has ever looked for a connection once removed from their closest circle --Reduce the friction to finding info, help me get value from what I do for others and what I know. Seeding the high level community, Software development, business development, --People have trouble finding expert, reliable, verified information. --People spend huge amounts of time displaying expertise with no tangible benefit --A marketplace to match buyers and sellers --Simple easy way to aggregate postings about expertise --Scoring/ranking for reliability. ? Alumni groups, Networking groups, (build to suit..potential white label service) Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise. Scalable marketplace business. MVP engineering/hosting/design costs are fixed. Feature set build are variable..build to spec for partners? --Free to join and use– then transaction fee, listing fee, fee for top tier circles --Velvet rope, leaky door policy --Affinity groups Goodwill, Brand, User Propagation Tap communities already transacting offline or chaotically
  • 123. CANVAS 1.2 CHANGES IN RED --PEOPLE WHO NEED ACCESS & FAVORS FOR BUSINESS OR PERSONAL USE --PEOPLE WHO PROMOTE THEIR BUSINESS THROUGH CONTENT --PEOPLE WHO WANT TO STENGTHEN TIES WITH CONNECTIONS Seeding the high level community, Software development, business development, -- HELP PEOPLE EXCHANGE ACCESS & FAVORS THAT ARE IMPORTANT. --Help people get more benefit from their digital marketing content --A marketplace to match buyers and sellers --HELP PEOPLE BUILD TRUSTED CONNECTIONS ? Alumni groups, Networking groups, (build to suit..potential white label service) Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise. Scalable marketplace business. MVP engineering/hosting/design costs are fixed. Feature set build are variable..build to spec for partners? --POINT SYSTEM TO EXCHANGE VALUE & GOODWILL --Free to join and use– then transaction fee, listing fee, fee for top tier circles --Velvet rope, leaky door policy --Affinity groups --Goodwill, --HIGH LEVEL ACCESS Tap communities already transacting offline or chaotically
  • 124. CANVAS 1.3 CHANGES IN RED --PEOPLE WHO NEED AND PROVIDE ACCESS & FAVORS FOR BUSINESS OR PERSONAL USE --PEOPLE WHO PROMOTE THEIR BUSINESS THROUGH CONTENT --PEOPLE WHO WANT TO STENGTHEN TIES WITH CONNECTIONS Seeding the high level community, Software development, business development, - --IMPROVED WAY TO BUILD TRUST & VERIFICATION --DISCOVERY & VALIDATION OF 2nd DEGREE CONNECTIONS --SAFE ENVIROMENT FOR PERSONAL EXCHANGE --HELP PEOPLE EXCHANGE ACCESS & FAVORS THAT ARE IMPORTANT. ? Alumni groups, Networking groups, (build to suit..potential white label service) Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise. --LINKEDIN, FACEBOOK, OTHER NETWORKS (UNLESS WE SCALE OURSELVES) Scalable marketplace business. MVP engineering/hosting/design costs are fixed. Feature set build are variable..build to spec for partners? --TIP JAR / PAY-WHAT-YOU-WANT --FEE FOR GIFTING AS THANK YOU --POINT SYSTEM TO EXCHANGE GOODWILL FOR $$ --PREMIUM ADVERTISING (MAYBE – HARD MODEL) --transaction fee, listing fee, fee for top tier circles --Velvet rope, leaky door policy --Affinity groups --Goodwill, --HIGH LEVEL ACCESS --WELL CONNECTED PEOPLE Tap communities already transacting offline or chaotically
  • 125. CANVAS 1.4 CHANGES IN RED PROFESSIONALS (HHI, WELL- EDUCATED) WITH ACCESS TO HIGH- VALUE, HARD-TO- OBTAIN CONTACTS, SERVICES & PRODUCTS WHO DO AND RECEIVE FAVORS OFFLINE 1) REQUESTERS 2) DOERS 3) CONNECTORS Seeding the high level community, Software development, business development, EFFICIENT, TRUSTED ONLINE PLATFORM FOR TRANSACTING FAVORS IMPROVED WAY TO BUILD TRUST & VERIFICATION ONLINE DISCOVERY & VALIDATION OF 2nd DEGREE CONNECTIONS IMPROVE CYCLE TIME OF ASKING FOR & DOING FAVORS Alumni sites - TEST MVP HERE LINKEDIN, FACEBOOK, GOOGLE+, TWITTER Scalable marketplace business. MVP engineering/hosting/design costs are fixed. Feature set build are variable..build to spec for partners? --PAY-WHAT-YOU-WANT, FEE FOR GIFTING --POINT SYSTEM TO EXCHANGE GOODWILL FOR $$ --PREMIUM ADVERTISING --transaction fee, listing fee, fee for top tier circles --Velvet rope, leaky door policy --Affinity groups 1) ENGINEERS 2) BEHAVIORAL PSYCHOLOGY EXPERTS (ON- /OFFLINE) 3) EARLYVANGELISTS IMPROVE EXPERIENCE OF OFFLINE CUSTOMERS
  • 126. key learning: VALUE of fulfilling human social need • value propositions come in two forms: they solve a problem or they fulfill a human social need • Social Needs are friendship, dating, sex, entertainment, art, communication, blogs, confession, networking, gambling, religion, etc. • they have always been fulfilled face-to-face • they are now moving on-line • the market size for these applications equals the entire human race • these are the ultimate applications
  • 127. Welcome to THE experience
  • 128. Advanced Entrepreneurship April 20, 2012 Brian Vogt Doug Carlson Mohamed Maimouni AG Crum Gabriel Giles Sameer Kotak FOR DAY 5: 32 IN-PERSON INTERVIEWS Consumers Retailers: Macy´s, Geox, Saks, Cole Haan, Lord & Taylor, Boticelli, David Z. 46 Online survey responses +81 In-person interviews 58 end-users 10 retail 6 medical 4 brands 3 design & mfg
  • 129. TEAM T VM Brian Vogt Doug Carlson Mohamed Maimouni AG Crum Gabriel Giles Sameer Kotak EMBA NY, BS Engineering EMBA NY, BS Engineering EMBA Berkely/CU, Fashion EMBA NY, BS InfoSys EMBA NY, BS/MS Engineering EMBA NY, BS/MS Pharma
  • 130. VISION CREATE A MARKET AT THE INTERSECTION OF FOOTWEAR STYLE, TECHNOLOGY, AND COMFORT
  • 131. THE JOURNEY
  • 132. OPPORTUNITIES ‘’BREATHING SHOES’’ MARKET GROWING SUCCESS OF BRANDED COMPONENTS EMERGING TECH-STYLE TREND $1.1B $260M SOLD OUT!
  • 133. DISCOVERY HYPOTHESIS TEST RESULT • End-users • Retailers • Med providers Branded component $400 retail All men’s dress and bus casual Own shoe brand • Online retail partner • Brands • Designers • Manufacturers • End-users • Retailers $249 retail + accessories • General comfort • Medical SEGMENT: CHANNEL: PRICING:
  • 134. ARCHETYPES Description: 35 Affluent male VALUE PROP: General comfort, clean and controlled ventilation for shoes Description: Suffering (Eg. Hyperhydrosis, Pernio) VALUE PROP: Alternative, discrete, controlled option to existing costly therapies GENERAL COMFORT MEDICAL CONDITION
  • 135. Most important? Men, dress & business casual Archetypes? Stuck in closed shoes during work-day with changing environments Job to get done? Enable comfort and productivity Activities? Customer input, IP filings, beta development, , suppliers Customer’s problems? End-users: foot sweat, hot, cold. Partners: differentiation Customer needs? Comfort, medical / Profitability growth Product features? Battery powered shoe sole ventilation, cooling, heating Partners? Shoe mfg.'s / branders by region , development Suppliers? Component mfg.'s, Ventiva Getting? Technology, manufacturing Giving? Differentiation and price Inherent in our model? Variable material, mfg overhead Making money & pricing model? $50 mfg’ed, 100 soles, 200 shoes, 400 retail Reach segments? Established partner retail outlets (brick & mortar) Resources? Development partner, seed funding Get, keep, grow? End-users: PR, branded captivity Partners: Convince of unique value for end-users Day 1 Canvas
  • 136. Day 2 Canvas Day 1 -- Key Learnings CUSTOMER SEGMENTS • Identified three distinct segments VALUE PROPOSITIONS • Identified additional value prop.
  • 137. Day 3 Canvas Day 2 -- Key Learnings CUSTOMER SEGMENTS • Refined three distinct segments VALUE PROPOSITIONS • Identified value propositions for each segment • Price differentiation for a range of feature sets • Price differentiation for each segment CHANNELS • Identifying channels for each segment
  • 138. Day 4 Canvas Day 3 -- Key Learnings CUSTOMER SEGMENTS • Refined focus to “General Comfort” segment • Developed a phased segment rollout strategy CHANNELS • Switched to Online Retail and kiosks for our General Comfort segment PARTNERS • Switched from selling components to brands to making whole shoes
  • 139. Day 5 Canvas Day 4 -- Key Learnings CUSTOMER SEGMENTS • Prioritized General Comfort • Dropped Tech Lovers (for now) • Clarified that target segments were for men only CHANNELS • Switched to Online Retail for all segments • “To try is to buy” VALUE PROPOSITION • Identified the need for strong designs by a notable designer • Confirmed $199-$249 as the pricing sweet spot PARTNERS • Equity partnership with Chinese manufacturing consortium
  • 140. Medical Condition General Comfort Online Retailer Kiosks Designer Manufacturer TVM ECOSYSTEM Property Managers $ $ $ $ $ $ Brand Development
  • 141. THE OPPORTUNITIES ARE LIMITELESS
  • 142. THANK-YOU!
  • 143. Most important? Men, dress & business casual Archetypes? Stuck in closed shoes during work-day with changing environments Job to get done? Enable comfort and productivity Activities? Customer input, IP filings, beta development, , suppliers Customer’s problems? End-users: foot sweat, hot, cold. Partners: differentiation Customer needs? Comfort, medical / Profitability growth Product features? Battery powered shoe sole ventilation, cooling, heating Partners? Shoe mfg.'s / branders by region , development Suppliers? Component mfg.'s, Ventiva Getting? Technology, manufacturing Giving? Differentiation and price Inherent in our model? Variable material, mfg overhead Making money & pricing model? $50 mfg’ed, 100 soles, 200 shoes, 400 retail Reach segments? Established partner retail outlets (brick & mortar) Resources? Development partner, seed funding Get, keep, grow? End-users: PR, branded captivity Partners: Convince of unique value for end-users Day 1 Canvas TVM Tech
  • 144. Day 2 Canvas Most important? Men, dress & business casual Archetypes? (1) Sought med (2) UnSought med (3) Tech ‘comfort’ Job to get done? Enable comfort and productivity Activities? Customer input, IP filings, beta development, , suppliers Customer’s problems? End-users: foot sweat, hot, cold, fatigue. Partners: differentiation Customer needs? Comfort, medical / Profitability growth Product features? Battery powered shoe sole ventilation, cooling, heating, massage Partners? Shoe mfg.'s / branders by region , development Suppliers? Component mfg.'s, Ventiva Getting? Technology, manufacturing Giving? Differentiation and price Inherent in our model? Variable material, mfg overhead Making money & pricing model? $40 mfg’ed, 80 soles, 200 shoes, 400 retail 400 retail 250 retail Reach segments? Established partner retail outlets (brick & mortar) Resources? Development partner, seed funding Get, keep, grow? End-users: PR, branded captivity Partners: Convince of unique value for end-users TVM Tech Day 1 -- Key Learnings Customer Segments • Identified three distinct segments Value Propositions • Identified additional value propositions
  • 145. Day 3 Canvas TVM Tech Active Seekers (1) Sought med Activities? Customer input, IP filings, beta development, , suppliers Partners? Shoe mfg, manufacturing Inherent in our model? Variable material, mfg overhead Making money & pricing model? $40 mfg’ed, 80 soles, 200 shoes, 400 retail 400 retail 250 retail Resources? Development partner, seed funding Get, keep, grow? End-users: PR, branded captivity Partners: Convince of unique value for end-users Passive Sufferers (2) UnSought med Tech Lovers 3) Tech ‘comfort’ •Mitigate hyperhidrosis •Low effort solution •Foot comfort •Discreteness •Cool factor •Foot comfort •Medical catalogs •Referrals ? Established partner retail outlets Suppliers? Component mfg.'s, Ventiva Getting? Technology, manufacturing Giving? Differentiation and price Day 2 -- Key Learnings Customer Segments • Refined three distinct segments Value Propositions • Identified value propositions for each segment • Price differentiation for a range of feature sets • Price differentiation for each segment Channels • Identifying channels for each segment
  • 146. Day 4 Canvas TVM Tech Active Seekers Activities? Customer input, IP filings, beta development, , suppliers Partners? Shoe mfg, manufacturing Inherent in our model? Product development, variable costs, online retail, kiosks, SG&A Making money & pricing model? $40 mfg’ed, 80 soles, 200 shoes, 400 retail 400 retail $250 retail Resources? Development partner, seed funding Get, keep, grow? End-users: PR, branded captivity Partners: Convince of unique value for end-users General Comfort Tech Lovers ’ •Mitigate hyperhidrosis •Low effort solution •Foot comfort •Discreteness •Cool factor •Foot comfort •Medical catalogs •Referrals Online Retail, Kiosks Established partner retail outlets Suppliers? Component mfg.'s, Ventiva Getting? Technology, manufacturing Giving? Differentiation and price Day 3 -- Key Learnings Customer Segments • Refined focus to “General Comfort” segment • Developed a phased segment rollout strategy Channels • Switched to Online Retail and kiosks for our General Comfort segment Partners • Switched from selling components to brands to making whole shoes
  • 147. Day 5 Canvas Medical Condition Activities Marketing, R&D, Design Partners Shoe manufacture Inherent in our model? Product development, variable costs, online retail, kiosks, SG&A Making money & pricing model? $199 – $249 retail $100 – $125 wholesale Resources Seed money, Engineering talent, Established designer, Chinese partner TVM Tech Get, keep, grow Informational Website, testimonials, kiosks, 30-day guarantee, customer svc General Comfort •Relief from significant medical conditions •Foot comfort •Cool factor •Style Online Retail Partner Suppliers Component Electronics & Footwear Getting Technology, manufacturing Giving Differentiation and price Men, 25-45
  • 148. jerry sanders Group 14 159 [Social Crowd] An online platform helping local communities to thrive 4/16: 12 interviews (5 Investors; 7 Businesses) 4/17: 15 interviews (3 Investors; 12 Businesses) 4/18: 3 interviews (3 Community Groups) 4/19: 18 interviews Total: 48 interviews
  • 149. jerry sanders Group 14 160 Monday “Neighborhood” shops who need $ for their business but also “do good” for their community. People who want to invest in their local community while also getting a return on their investment. Project management, renovation, software. Shop owners who want to renovate their building & needs both cash & expertise (renovation, project management, …) but also providing them for a “supply” of customers as the business is starting. People investing $ and in their local community, satisfying their desire for a return on $ but also to invest in their local community. Key partners and suppliers are people from the construction/ renovation industry We get know- how/expertise & we give them … work! Web platform, program management and technical support Brokerage fee, licensing, advertising Media, social media, direct contact, chamber of commerce Financial, physical, technical, HR FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 Direct contact and social media. Retaining and growing customers will be a challenge.
  • 150. jerry sanders Group 14 161 Tuesday Finders: Individuals & groups seeking investment opportunities that provide (i) requisite returns and (ii) a direct benefit to a local community. Grinders: Start-ups and locally owned businesses seeking capital investments of $10K-$2M One-off: - Platform design Ongoing: - Screening - Marketing - IT maint. & support - New market ID An online ‘matchmaking’ forum where F&G connect. Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. - Independent business organizations - Community funding institutions - Local business school alumni - Personal connections - Local business activists Value-driven: Most important costs include: - Web platform development - IT management & technical support - Marketing & customer acquisition - Application review costs (experts) Dual revenue structure: - Finders Fee (2% of consummated deal value) - Grinders Fee ($250 application review fee) - Direct contact through website - Local news & PR channels - Word of mouth - Customer d/base - Proprietary knowledge - Brand copyright - Site skin: look, feel FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 - Semi-automated - Local community- focused
  • 151. jerry sanders Group 14 162 Wednesday One-off: - Platform design Ongoing: - Screening - Marketing - IT maint. & support - New market ID An online ‘matchmaking’ forum where F&G connect. - Independent business organizations - COMMUNITY INTEREST ORGS - Community funding institutions - Local business school alumni - Personal connections - Local business activists Value-driven: Most important costs include: - Web platform development - IT management & technical support - Marketing & customer acquisition - Application review costs (experts) Dual revenue structure: - Direct contact through website - Local news & PR channels - Word of mouth - Customer d/base - Proprietary knowledge - Brand copyright - Site skin: look, feel - Semi-automated - Local community- focused Finders: Individuals & groups seeking investment opportunities that provide (i) requisite returns and (ii) a direct benefit to a local community. Grinders: Start-ups and EXISTING locally owned businesses & COMMUNITY GROUPS seeking capital investments of $10K-$2M Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. - Finders Fee (2% of consummated deal value) - Grinders Fee ($250 application review fee)
  • 152. jerry sanders Group 14 163 Thursday j One-off: - Platform design Ongoing: - Screening - Marketing - IT maint. & support - New market ID An online platform helping local communities to thrive‘matchmaking’ forum where F&G connect. - Independent business organizations - Community Groups & Block Associations interest orgs - Community funding institutions - Local business school alumni - Local business activists - Personal connections - Government entities Value-driven: Most important costs include: - Web platform development - IT management & technical support - Marketing & customer acquisition Dual revenue structure: - Direct contact through website - Local news & PR channels - Word of mouth - Customer d/base - Proprietary knowledge - Brand copyright - Site skin: look, feel - Semi-automated - Local community- focused FindersInvestors: Individuals & groups seeking investment opportunities to provide a direct or indirect benefit to a local community. GrindersBusiness es: Existing locally owned businesses seeking capital investments of $10K-$2M FindersInvestors: Investment efficiency through a screening process that ensures only the top ideas are posted. GrindersBusinesses: Access to small amounts of capital typically hard to acquire through institutional routes. Giving residents a way to preserve their neighborhood - Finders Fee (2% of consummated deal value OR top line revenue interest in subject business) - Grinders Application Fee ($250 application review fee)
  • 153. jerry sanders Group 14 164Experiments Yesterday [Social Crowd] Test Activities Results Long term viability Surveys & interviews to determine LT sustainability of our business model. For instance, the impact of consummating:  a good deal: loyalty to us or the contracting party?  a bad deal: negative splash-back on us? Inconclusive User interface How investors and businesses prefer to interact (privacy etc) Conclusive Markets Attend a community board meeting to further test the genuine market size/need  Streets vs Neighborhoods  Street Ambassadors Conclusive, but not scaleable Diving deeper…
  • 154. jerry sanders Group 14 165 Friday One-off: - Platform design Ongoing: - Screening - Marketing - IT maint. & support - New market ID Helping local communities thrive by creating an online platform for them protect and preserve their way of life - Independent business organizations - Community Groups & Block Associations Local business school alumni - Local business activists - Personal connections - Government entities Value-driven: Most important costs include: - Web platform development - IT management & technical support - Marketing & customer acquisition Dual revenue structure: - Direct contact through website - Local news & PR channels - Word of mouth - Customer d/base - Proprietary knowledge - Brand copyright - Site skin: look, feel - Semi-automated - Local community- focused Investors: Individuals & groups seeking investment opportunities to provide a direct or indirect benefit to a local community. Businesses: Existing locally owned businesses seeking capital investments of $10K-$2M Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. Businesses: Access to small amounts of capital typically hard to acquire through institutional routes. Giving residents a way to preserve their neighborhood - Finders Fee (2% of consummated deal value OR top line revenue interest in subject business) - Application Fee ($250 application review fee) - Revenue sharing (Percentage from topline)
  • 155. jerry sanders Group 14 166Home Page [Social Crowd] I have $ I need $
  • 156. jerry sanders Group 14 167Profile [Social Crowd]
  • 157. jerry sanders Group 14 168Boston Area – 2 leads [Social Crowd]
  • 158. jerry sanders Group 14 169 Friday A platform helping business owners who need to renovate funding & construction services Monday Results/ lessons learnedWhat we thought Experiments “unearthed” questions Tuesday Wednesday Thursday An online ‘matchmaking’ forum where F&G connect. Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. ? An online platform helping local communities to thrive Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. ? ? [Social Crowd]
  • 159. jerry sanders Group 14 170Monday [Social Crowd] Helping business owners who need $ to renovate building raise the $ from their local community 12 interviews with investors & business owners  Small businesses (“Grinders”) -- which are essential to vibrant communities -- face increasing threats to viability due to the inaccessibility of capital.  Small business owners (grinders) and investors (finders) do not connect An online ‘matchmaking’ forum where F&G connect. Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. s
  • 160. jerry sanders Group 14 171Tuesday 15 interviews with investors & business owners Deep dive in Greenwich Local element is key. Money is not enough: business owners also need expertise to develop innovative and relevant solutions to adapt to their ecosystem. People are interested in supporting their local businesses. Business owners need $ to renovate establishment. BUT, they also need money to buy new equipments/furniture and develop new product/services An online ‘matchmaking’ forum where F&G connect. Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. An online ‘matchmaking’ forum where F&G connect. Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. [Social Crowd]
  • 161. jerry sanders Group 14 172Wednesday An online ‘matchmaking’ forum where F&G connect. Finders: Investment efficiency through a screening process that ensures only the top ideas are posted. Grinders: Access to small amounts of capital typically hard to acquire through institutional routes. s 3 face to face meetings (multiple parties). 5 phone interviews Proven model: Bryant Park Corporation Need community board endorsement Need Brand Need to help small businesses get ownership of their building to avoid rent increase. Residents' wealth & culture vary drastically across location- is the model easily transferable? Some businesses are just not sustainable (& we need to decide if we help them or not) Need to understand the industry of small business if want to help it efficiently. An online platform helping local communities to thrive Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. Does the “model” apply to other cities? Neighborhood that haven’t organized ? Unearthed a need for people to have a “platform” to “organize”/ exchange info/$$. But needs a lot more Customer Discovery to address that need. [Social Crowd]
  • 162. jerry sanders Group 14 173Thursday An online platform helping local communities to thrive Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. Investors: Investment efficiency through a screening process that ensures only the top ideas are posted. 3hr community meeting (50 people). 6 phone interviews (NYC, Boston, …) Model applies to Boston too, ie transferable ;-) Meetings & calls confirm the need for a “tool” for communities to “thrive”- what will it look like??? Developed and tested a wireframe. ? [Social Crowd]
  • 163. jerry sanders Group 14 174Conclusion • Confirmation that small businesses need $ & that residents are willing to invest so that communities continue to thrive (problem 1) • BUT, identified a broader, yet not clearly defined need/problem: there is a need for a “tool” for communities to “organize”/ exchange info/$$ (problem 2). • Next steps: – A. develop MVP to get running with problem 1 & test product market fit – B. Do more customer discovery to get to the bottom of problem 2. [Social Crowd]
  • 164. jerry sanders Group 14 175Next Steps? Contact with Neighborhood organizations Contact with Community funding Institution & industry associations [Social Crowd]
  • 165. An online platform that connects procurement consortiums with suppliers. “Bulk Pricing without the Bulk” Interviews: 22 on Day 4 86 Total Ravi Pingli Arez Mardoukhi Gopi Sukhavasi Kevin Woolley
  • 166. YOUR SUPPLIER NETWORK – Day 1 Buyers CFO’s, COO’s, CPO (Chief Procurement Officers) Find the best possible suppliers for their operational needs Suppliers CMO (Chief Marketing Officers), Sales Department Find new customers Software Marketing Sales Buyers 1. Find the best possible suppliers for procuring goods and services. 2. One solution to manage end to end source-to-pay process Suppliers 1. Provide platform to reach target market customers Purchasing Associations Marketing/Sales Team Fixed - Software development, maintenance costs, administrative costs Variable – Marketing/Sales costs Subscription fee will be charged per seat for each customer. The pricing will be higher for buyers than suppliers Professional Network Purchasing Associations Industry conferences Software Development Team Marketing Resources Partnerships with Industry Trade shows Professional network
  • 167. YOUR SUPPLIER NETWORK – Day 2 Chain/Corporate Restaurants Chain/Corporate Hotels Sales Companies Distributing to Hotels and Companies Software Marketing Sales Buyers 1. Find the best possible suppliers for procuring goods and services. 2. One solution to manage end to end source-to-pay process Suppliers 1. Provide platform to reach target market customers Purchasing Associations Marketing/Sales Team Fixed - Software development, maintenance costs, administrative costs Variable – Marketing/Sales costs Subscription fee will be charged per seat for each customer. The pricing will be higher for buyers than suppliers Professional Network Purchasing Associations Industry conferences Software Development Team Marketing Resources Partnerships with Industry Trade shows Professional network
  • 168. Key Partners • Hotel and restaurant associations • Independent research services Key Activities • Develop online platform • Continuous buyer and supplier development Value Propositions Buyers • Find best suppliers for procurement consortiums • Facilitate transparency and ease of use Suppliers • Increased visibility to potential customers Channels • Outside salesforce Customer Relationships • Regular customer contact Customer Segments • Local/ independent restaurants (no chains) • Local/ independent hotels (no chains) • Food, tabletop, and bed linen suppliers Cost Structure • Fixed: Software development/maintenance • Variable: Marketing/sales Revenue • Annual subscription contract for both buyers and suppliers (~0.5% of consortium revenue) • Buyers/suppliers charged to submit/respond to proposals Key Resources • Software development team • Marketing resources Business Model Canvas: Day 3
  • 169. Key Partners • Hotel and restaurant associations • Independent research services Key Activities • Develop online platform • Continuous buyer and supplier development Value Propositions Buyers • Lower costs • Increase options and negotiating position Suppliers • Increased visibility to customers • Increase sales price Channels • Outside salesforce Customer Relationships • Regular customer contact Customer Segments • Local/ independent restaurants (no chains) • Local/ independent hotels (no chains) • Food and tabletop and bed linen suppliers Cost Structure • Fixed: Software development/maintenance • Variable: Marketing/sales Revenue • 3% commission on sales paid by supplier • Annual subscription contract for both buyers and suppliers (~0.5% of consortium revenue) Key Resources • Software development team • Marketing resources Business Model Canvas: Day 4
  • 170. Key Partners • Network effect among densely located restaurants Key Activities • Develop online platform • Continuous buyer and supplier development Value Propositions Buyers • Lower costs • Increase options and negotiating position Suppliers • Increased visibility to customers • Higher margins Channels • Outside salesforce Customer Relationships • Regular customer contact Customer Segments • Local/ independent restaurants (no chains) • Glassware suppliers Cost Structure • Fixed: Software development/maintenance • Variable: Marketing/sales Revenue • 3% commission on sales paid by supplier • Free subscription for local restaurants Key Resources • Software development team • Marketing resources Business Model Canvas: Day 5
  • 171. Business Hypotheses Hypothesis 1 • Restaurants will use the website instead of working with sales companies Test • Interviews with local restaurants Hypothesis 2 • When showing the products, restaurants want to see the supplier name along with the price Test • Interviews with local restaurants Result • Accepted provided major suppliers are there on the network and they get a better deal Result • Accepted unless YSN provides a warranty on the product Hypothesis 3 • Restaurant will procure supplies in coordination with other restaurants for a discount Test • Interview with local restaurants Result • Accepted with the caveat that delivery would not add significant cost.
  • 172. MVP
  • 173. MVP
  • 174. What’s next? • Brand Name (Glass…..) • Setup LLC • Get Trademark • Acquire capital (SBA loan) • Form the execution Team • Enroll suppliers into YSN • Signup local restaurants to use YSN
  • 175. First Payment
  • 176. FidélEatRestaurant Loyalty 19 Restaurateur Interviews 25 Consumer Interviews Cumulative: 59 Restaurants, 77 Consumers, 140 Surveys Robert Montrone EMBA ’12 Consultant / TV Producer ABC Television Jaidev Rao EMBA ’12 Management Consulting Rothstein Kass Abhishek Sheetal EMBA ’12 Tech Marketing / Strategy LeCroy Corporation William Cooke EMBA ’12 Strategy & Financial Planning Blue Sky Solar Sarah Brown EMBA ’12 Consulting Neuberger Berman Dennis Kwon MBA ’11 Engineer / Tech Entrepreneurship Lala.com
  • 177. Hypothesis Restaurants have empty seats Restaurants will give out discounts Test Survey 9 managers Survey 9 managers Results Very concerned about empty seats Discount customers visit only once to take advantage of the offer Mid Range Restaurant Interviews ($40+ plate)
  • 178. Hypothesis No other yield management product for restaurants Test Talk to product manager Results They have not introduced it yet because of customer indecision reasons Interview of Savored.com
  • 179. Hypothesis No other yield management product for restaurants Test Talk to product manager Results They have not introduced it yet because of customer indecision reasons Interview of Savored.com Advanced Booking Discounts
  • 180. Listen to your Customers (restaurants) Repeat Customers!
  • 181. Pivot Declaration Pit of Despair
  • 182. Hypothesis Customers would return to a restaurant more frequently with discount Customers would return on Mon/Tues for a better discount Customers would make reservations through tracking system Test Survey 25 Diners Survey 25 Diners Survey 25 Diners Results 84% say yes 68% say yes 92% say yes Diner Interviews
  • 183. Hypothesis Repeat customers are important to restaurants Restaurant owners willing to offer an expiring credit to loyal customers Restaurant owners willing to pay for service Test Survey 5 restaurants Survey 5 restaurants Survey 5 restaurants Results Core of their business yes NO Restaurant Interviews (mid-low end, Columbia)
  • 184. Hypothesis Repeat customers are important to restaurants Restaurant owners willing to offer an expiring credit to loyal customers Restaurant owners willing to pay for service Test Survey 6 restaurants Survey 6 restaurants Survey 6 restaurants Results Mostly foot traffic, not too concerned NO NO Restaurant Interviews (mid end, trendy)
  • 185. Hypothesis Finding loyal customers is a problem for restaurants Restaurant owners are concerned with repeat customers Restaurant owners willing to pay for a service that would encourage repeat customers Test Survey 21 restaurants Survey 21 restaurants Survey 21 restaurants Results Place high value on returning customers Looking for a system to sync data with reservations Use internal promotions, do not want to engage outside systems Restaurant Interviews (mid-high end restaurant group, trendy, young international)
  • 186. Hypothesis Repeat customers are important to restaurants Restaurant owners willing to offer an expiring credit to loyal customers Restaurant owners willing to pay for service Test Survey 8 restaurants Survey 8 restaurants Survey 8 restaurants Results Core of their business They prefer to offer better tables, free drinks or desert as opposed to credits Possibly Restaurant Interviews (mid-high end, UWS)
  • 187. Listen to your Customers (restaurants) Restaurants with more than 40% repeat customers want better way to… ANALYZE and RECOGNIZE
  • 188. ANALYZE OpenTable • Collects information • Provides some analysis • Will export to XL file Hypothesis • Export data • Provide better analytics • Allow more creative loyalty programs with value add
  • 189. RECOGNIZE • Reservations are automatically recognized through open table • PROBLEM ----- Most repeat customers are walk-ins! • SOLUTION ----- Face recognition • This allows the hostess to recognize a repeat customer, even if it has been 6 months since their first visit. www.fideleat.com
  • 190. ECOSYSTEM Restaurant Hostess Stand OpenTable Reservation Book FidelEat OpenTable Website CUSTOMIZED INFORMATION
  • 191. Table Compass Who are our most important customers? Both restaurants and end users What are their archetypes? People who plan, price conscious, occasions, groups of friends What Job do they want us to get done for them? End customer: discounts Restaurants: fill seats Key Activities • Platform design and development • Business development, partnerships and marketing Which of our customer’s problems are we helping to solve? • Empty tables • Difficulty making reservations • Price Which customer needs are we satisfying? • Restaurants: revenue management, working capital • End Customers: discounted meals, secured reservations, restaurant comparisons What are the Key Features of our product that match customers problem/need? • Discounted pricing • Restaurant discovery Key Partners Restaurant owners Key Suppliers Possibly Open Table What are we getting from them? Reservation Service Giving them? Restaurant traffic What are the most important costs inherent in our business model? Fixed Cost: Building the website Variable: Marketing, sales people, advertising How do we make money? What’s the revenue model? Pricing tactics? Options: listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc. Through which Channels do our Customer Segments want to be reached? • Restaurants: face to face meetings • End Customers: Word of mouth marketing, online, direct email Key Resources • Designers, Engineers • Business development, Sales • Money How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc. Monday
  • 192. Table Compass Archetypes? People who plan Price conscious Foodies Key Activities • Platform design and development • Business development, partnerships and marketing • Difficulty making reservations • Price • End Customers: Discounted bookings, secured reservations, restaurant comparisons • Discounted pricing • Restaurant discovery Key Partners Restaurant owners Key Suppliers Possibly Open Table What are we getting from them? Reservation Service Giving them? Restaurant traffic What are the most important costs inherent in our business model? Fixed Cost: Building the website Variable: Marketing, sales people, advertising Listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc. Through which Channels do our Customer Segments want to be reached? • Restaurants: face to face meetings • End Customers: Word of mouth marketing, online, direct email Key Resources • Designers, Engineers • Business development, Sales • Money How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc. (Pass, Fail, Unclear) • Medium-low end restaurants • Medium-high end restaurants that take reservations . Revenue Management . Working capital . Filling Seats Tuesday
  • 193. Table Compass Younger Trendy Key Activities • Platform design and development • Business development, partnerships and marketing • Price • Discounted bookings, secured reservations, restaurant comparisons • Discounted pricing • Restaurant discovery Key Partners Restaurant owners Key Suppliers Possibly Open Table What are we getting from them? Reservation Service Giving them? Restaurant traffic What are the most important costs inherent in our business model? Fixed Cost: Building the website Variable: Marketing, sales people, advertising Options: listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc. Through which Channels do our Customer Segments want to be reached? • Restaurants: face to face meetings • End Customers: Word of mouth marketing, online, direct email Key Resources • Designers, Engineers • Business development, Sales • Money How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc. (Pass, Fail, Unclear) • Medium-low end restaurants • Medium-high end restaurants that take reservations . Revenue Management . Working capital . Filling Seats Wednesday
  • 194. FidélEat Younger Trendy Young families • Platform design and development • Business development • Partnerships and marketing Price Discounted bookings, secured reservations, restaurant comparisons Discounted pricing - Discount rewards for loyalty - Promotional Credits Key Partners Restaurant owners Key Suppliers Possibly Open Table What are we getting from them? Reservation Service Giving them? REPEAT Restaurant traffic What are the most important costs inherent in our business model? Fixed Cost: Building the website Variable: Marketing, sales people, advertising Options: listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc. Monthly Subscription Fee, Tiered subscriptions Through which Channels do our Customer Segments want to be reached? • Restaurants: face to face meetings • End Customers: Word of mouth marketing, online, direct email, NY Times • Designers • Engineers • Business Development • Sales • Money How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc. Expiring Promotional Credits (EPCs) (Pass, Fail, Unclear) - Medium-low end restaurants - Medium-high end restaurants that take reservations - Revenue Management - Working capital Filling Seats - Repeat Business - Fill seats during slow periods Thursday Monthly Subscription Fee, Monthly/Quarterly customer data service
  • 195. FidélEat Repeat customers New Customers • Platform design and development • Business development • Partnerships and marketing - Discount rewards for loyalty - Better Service Key Partners Open Table Key Suppliers Face recognition software What are we getting from them? Reservation Service Giving them? REPEAT Brand Loyalty What are the most important costs inherent in our business model? Fixed Cost: FACE RECOGNITION SYSTEM Building the website Variable: FACE RECOGNITION SYSTEMS, Marketing, sales people, advertising Through which Channels do our Customer Segments want to be reached? • Restaurants: face to face meetings • End Customers: Word of mouth marketing, online, direct email, NY Times • Designers • Engineers • Business Development • Sales • Money (Pass, Fail, Unclear) - Medium-high end neighborhood restaurants - High Quality of Repeat Business - Enable Customer Recognition - Enable personalized marketing NOW Monthly Subscription Fee, Monthly/Quarterly customer data services one time fee - How will we Get, Keep and Grow Customers How will we Get, Keep and Grow Customers? Retention plan: Expiring Promotional Credits (EPCs)
  • 196. Pivot Declaration First Advisory Board Member
  • 197. Customer Contacts Yesterday: 17 traveler groups in person Customer Contacts To Date: 70 in person / 33 online / 75 Adwords clicks / 51,000 online impressions Purchases To Date: 7 Repeat Customers: 1 Scott Greco Ari Harkov Alex Morrison Sarah Shenton Francois Viargues Michael Burke
  • 198. 1. Traveling to urban destination and a desire for authentic experiences 2. Own smart phone / tablet (ideal) 3. Age 25-45 / target 25-35 (?) 4. Professional, $50k+ income 5. Time-starved Our job: -making planning quicker, easier, painless -access to off the beaten path spots -vacation that meets their specific interests 1. Itinerary collection & updates 2. Marketing / PR 3. Customer service – locals & travelers For Customers: 1. Access to authentic, non-touristy spots 2. Better planned days = easier, maximize vacation time 3. Save time 4. Clean UX and interactive itineraries take the guidebook to 21st century For Local Experts: 1. Monetize your local knowledge Partners: hotels, local merchants, airlines, online booking sites, local sites, rental car companies, international phone data carriers Suppliers: local trendsetters, work in hospitality, younger/creative, bloggers, active parents Get itineraries: $$ for sales as well as exposure (blog, video) Fixed costs: upfront development of site and app Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations How: Sell itinerary for $4.99, pay local 20%, keep 80% gross margin. Pricing tactics: compete between guidebooks & free Promos: 1st free, free if feedback, buy 1 get 1 free, free if FB post 1. Search (SEO/SEM) 2. Social media 3. Travel blogs 4. Travel/local sites 1. Web developers 2. Marketing/PR team 3. Local expert outreach 4. Sales force (low end, in person) Get: PR, digital WOM, SEO, SEM, consumer promotions Keep: great customer service, expand cities, improve partner offerings Grow: CRM / relationship marketing, expand offering to more cities Version 1 – April 15th 2012
  • 199. Locals - Content Providers 1. Itinerary collection & updates 2. Marketing / PR 3. Customer service – locals & travelers Partners: hotels, local merchants, airlines, online booking sites, local sites, rental car companies, international phone data carriers Suppliers: local trendsetters, work in hospitality, younger/creative, bloggers, active parents Get itineraries: $$ for sales as well as exposure (blog, video) Fixed costs: upfront development of site and app Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations How: Sell itinerary for $4.99, pay local 20%, keep 80% gross margin. Pricing tactics: compete between guidebooks & free Promos: 1st free, free if feedback, buy 1 get 1 free, free if FB post • Craigslist • Social media • Local blogs 1. Web developers 2. Marketing/PR team 3. Local expert outreach 4. Sales force (low end, in person) Version 2 - EOD April 16th 2012 Mass Distributors – Content Purchasers (Ex: Hotel Concierge) Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on interests Everything in one place Get: PR, digital WOM, SEO, SEM, consumer promotions Keep/ Grow: great customer service, expand cities, improve partner offerings Unique platform for locals experts to share and monetize their local knowledge Revenue sharing & relationship marketing • Search (SEO/SEM) • Social media • Travel blogs / sites Tourists – Content Purchasers
  • 200. How: Sell itinerary for $9.99, pay local 10%, keep 90% gross margin. Mass Distributors – Content Purchasers Locals - Content Providers 1. Itinerary collection & updates 2. Marketing / PR 3. Customer service – locals & travelersSuppliers: local trendsetters, work in hospitality, younger/creative, bloggers, active parents Get itineraries: $$ for sales as well as exposure (blog, video) Fixed costs: upfront development of site and app Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations How: Sell itinerary for $9.99, pay local 20%, keep 80% gross margin. • Craigslist • Social media • Local blogs 1. Web developers 2. Marketing/PR team 3. Local expert outreach 4. Sales force (low end, in person) Version 3 - EOD April 17th 2012 Mass Distributors – Content Purchasers Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on interests Everything in one place Get: PR, digital WOM, SEO, SEM, consumer promotions Keep/ Grow: great customer service, expand cities, improve partner offerings Unique platform for locals experts to share and monetize their local knowledge Revenue sharing & relationship marketing • Search (SEO/SEM) • Social media • Travel blogs / sites Tourists – Content Purchasers Potential idea: Provide recommendations and info to concierges
  • 201. How: Sell itinerary for $9.99, pay local 10%, keep 90% gross margin. Mass Distributors – Content Purchasers Locals - Content Providers 1. Itinerary collection & updates 2. Marketing / PR 3. Customer service – locals & travelersSuppliers: local trendsetters, work in hospitality, younger/creative, bloggers, active parents Get itineraries: $$ for sales as well as exposure (blog, video) Fixed costs: upfront development of site and app Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations, printing/binding How: Sell itinerary for $9.99, pay local 20%, keep 80% gross margin. Tests: can we get locals to contribute without the promise of payment for sales? Get one for free if you create one for your own city? Pay to post? Break up itineraries into sections by different locals? • Craigslist • Social media • Local blogs 1. Web developers 2. Marketing/PR team 3. Local expert outreach 4. Sales force (low end, in person) Version 4 - EOD April 18th 2012 Mass Distributors – Content Purchasers Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on interests/location/authors Budget advice / Flexibility needed Get: PR, digital WOM, SEO, SEM, consumer promotions, authors as sales force? Keep/ Grow: great customer service, expand cities, improve partner offerings Unique platform for locals experts to share and monetize their local knowledge Revenue sharing & relationship marketing • Search (SEO/SEM) • Social media • Travel blogs / sites • Authors as sales force Tourists – Content Purchasers Potential idea: Provide recommendations and info to concierges
  • 202. People want flexibility and dynamic itineraries with options People would prefer to build their own itineraries based on a database of local recommendations. People will choose travel itineraries based on WHO is writing them. Confirmed. WTP increased significantly when presented with MVPs with options Confirmed. People love the ability to build their own itineraries. Confirmed. Everybody wants to know who is writing, but it remains unclear whether it is the main reason for choosing an itinerary. Hypothesis Result People also would want to be put in direct contact with their local guide. Refuted. People do not seem to want direct contact with their local guides.
  • 203. People want flexibility and dynamic itineraries with options People would prefer to build their own itineraries based on a database of local recommendations. People will choose travel itineraries based on WHO is writing them. Confirmed. WTP increased significantly when presented with MVPs with options Confirmed. People love the ability to build their own itineraries. Confirmed. Everybody wants to know who is writing, but it remains unclear whether it is the main reason for choosing an itinerary. Hypothesis Result People also would want to be put in direct contact with their local guide. Refuted. People do not seem to want direct contact with their local guides.
  • 204. People want flexibility and dynamic itineraries with options People would prefer to build their own itineraries based on a database of local recommendations. Confirmed. WTP increased significantly when presented with MVPs with options Confirmed. People love the ability to build their own itineraries. Hypothesis Result People also would want to be put in direct contact with their local guide. Refuted. People do not seem to want direct contact with their local guides. People will choose travel itineraries based on WHO is writing them. Confirmed. Everybody wants to know who is writing, but it remains unclear whether it is the main reason for choosing an itinerary.
  • 205. People want flexibility and dynamic itineraries with options Confirmed. WTP increased significantly when presented with MVPs with options Hypothesis Result People also would want to be put in direct contact with their local guide. Refuted. People do not seem to want direct contact with their local guides. People will choose travel itineraries based on WHO is writing them. Confirmed. Everybody wants to know who is writing, but it remains unclear whether it is the main reason for choosing an itinerary. People would prefer to build their own itineraries based on a database of local recommendations. Confirmed. People love the ability to build their own itineraries.
  • 206. How: Sell itinerary for $9.99, pay local 10%, keep 90% gross margin. Mass Distributors – Content Purchasers Locals - Content Providers 1. Itinerary collection & updates 2. Marketing / PR 3. Customer service – locals & travelersSuppliers: local trendsetters, work in hospitality, younger/creative, bloggers, active parents Get itineraries: $$ for sales as well as exposure (blog, video) Fixed costs: upfront development of site and app Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations, printing/binding How: Sell itinerary for $4.99 - $9.99, pay local 20%, keep 80% gross margin. - Should we allow people to download itineraries in exchange for writing an itinerary? -Should we give itineraries away for free and rely on an advertising model or other revenue source? • Craigslist • Social media • Local blogs 1. Web developers 2. Marketing/PR team 3. Local expert outreach 4. Sales force (low end, in person) Version 5 - EOD April 19th 2012 Mass Distributors – Content Purchasers Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on interests 3 or more options for every occasion Get: PR, digital WOM, SEO, SEM, consumer promotions, authors as sales force Keep/ Grow: great customer service, expand cities, improve partner offerings Unique platform for locals experts to share and monetize their local knowledge Revenue sharing & relationship marketing • Search (SEO/SEM) • Social media • Travel blogs / sites • Authors as sales force Tourists – Content Purchasers Potential idea: Provide recommendations and info to concierges
  • 207. The AUTHENTIC City Experience • Restaurants • Activities • Attractions Eco System Local Recommendations Via Web for the Pre Planner Mobil device for the On The Go Subscriptions for Multi User Locations • The individuals creating itineraries Bakamb a Traveler s ?!*&? Travel Agents Online Travel Sites & Travel Books $$
  • 208. Next Steps – Increase the number of tests and experiments and introduce the site slowly to early access users without a high-fanfare launch. – Add technical expertise within the core group of founders. – Reverse-engineer the business models of our competition and analyze the success and failures of their strategies. – Continue to gather data, and truly establish our goal: • Millions of users • Immediate Revenue – Once data has been gathered, focus on pattern recognition within the data. We will map out the market opportunity, determine whether there is also a revenue opportunity there, and proceed accordingly.
  • 209. PULZE Your Organization’s PULZE Vladimir Baranov, Jitender Chopra, John Gole, Riyaz Habibbhai, F. Lane Harwell, Daniello Natoli Total Interviews: 47! April 20th, 2012 PULZE ORGANIZE, ANALYZE, AND COMMUNICATE
  • 210. PULZE Hypotheses We can use consultants as channels? We can use consultants as customers?
  • 211. PULZE - SEO, SEM, AwC: $10, AcC: $250 - Leadership Conferences: AwC: $1499, $AcC: $50 - Social Media Groups: AwC $10, AcC: $250 How else would we get customers?
  • 212. PULZE 1) Standard Off-the-shelf software: - content empty - no insight - the questions are the best guess of the person creating them 2) HR and Management Consultants are potential channels and customers 3) Value-based pricing 4) Demonstrate value first and follow-up with telesales and direct marketing We also talked to HR software company
  • 213. PULZE
  • 214. PULZE
  • 215. PULZE Survey Monkey $500 per year $ per Survey/Analysis Price and Value Position PULZE $500 - $3,500 HR Consultancies ~$5,000 - $15, 000 (per survey) PerceptionofValue Raw Data / Little Analysis “DIY” Data and Analysis Benchmarking Templates with response validation Customization Access to Domain Specific Solutions Legal and Regulatory Checks ORGANIZE, ANALYZE, AND COMMUNICATE “Hand Holding” Data and Analysis Benchmarking Templates Customization Access to Domain Specific Solutions Legal and Regulatory Checks
  • 216. PULZE
  • 217. PULZE Team Pulze 500 < Enterprises < 2000 Bottom-Up employee engagement Software vendors One time service fee Sales force Key Account management Provide employees ownership in business strategy Low cost solution to interim surveys Middle Management of larger corporations Semi customized service based on needs Subscription service Enterprise social platforms Partners Cloud service Data warehousing Suppliers 3rd party analytics R&D Marketing and Manage the platform Lead gen Recruitment Software developers HR talent Research experts Payroll marketing Fixed Sales Customer acq. Talent acq. Variable Website
  • 218. PULZE Team Pulze Manager of a company, division or unit with 100- 3000 employees, w/minimal HR support Bottom-Up employee engagement Software vendors One time service fee Key Account management Provide employees ownership in business strategy Low cost solution to interim surveys SEO Subscription service Enterprise social platforms Partners Cloud service Data warehousing Suppliers 3rd party analytics R&D Marketing and Manage the platform Software developers HR talent Research experts Payroll marketing Fixed Sales Customer acq. Talent acq. Variable Website HR Consultants Analysis Benchmarked Data Templates Semi- customization Sales force Gamification – to increase particip Recruitment Lead gen >Survey Monkey < Consultants Fee to HR US Legal Legal Counsel
  • 219. PULZE Team Pulze Manager of a company, division or unit with 100- 3000 employees, w/minimal HR support Bottom-Up employee engagement Software vendors Number of Employees $500 < N < $5K Key Account management Provide employees ownership in business strategy Low cost solution to employee surveys SEO Subscription service $1 – 5K Enterprise social platforms Partners Cloud service Data warehousing Suppliers 3rd party analytics R&D Marketing and Manage the platform Software developers HR talent Research experts Payroll marketing Fixed Sales Customer acq. Talent acq. Variable Website HR Consultants Templates Analysis Benchmarked Data Gamification Ethical and Legal Customization Legal Counsel Fee to HR 24/7 Value Added Consultants for Pre/Post Survey Linked-In Social Media
  • 220. PULZE Team Pulze – day 5 Manager of a company, division or unit with 100- 3000 employees, w/minimal HR support Bottom-Up employee engagement Software vendors Number of Employees $500 < N < $5K Key Account managementProvide employees ownership in business strategy Low cost solution to employee surveys SEO Enterprise social platforms Partners Cloud service Data warehousing Suppliers 3rd party analytics R&D Marketing and Manage the platform Software developers HR talent Research experts Payroll marketing Fixed Sales Customer acq. Talent acq. Variable Website Consultants Templates Analysis Benchmarked Data Gamification Ethical and Legal Customization Legal Counsel 24/7 Value Added Consultants for Pre/Post Survey LinkedIn Social Media Consultants? Conferences
  • 221. PULZE Summary and Conclusion  The Original strategy  Sell to human resources executives, primarily  Mixed response  Co-Opetition, Barry Nalebuff, YSOM  Leadership and HR are different verticals Original Strategy  Refine market segment  SMid: Small to medium size enterprises are the sweetspot  Needs support and data Pivot
  • 222. PULZE Canvas could be used for public growth companies analysis Customer discovery process may lead to several pivots Archetype of customer may pivot with more data Channel aligned with your value propostion gives best advice Not all ideas are hopeless, they are just waiting for a pivot Ask for help and help others: Pay Forward Lessons Learned
  • 223. PULZE Appendix
  • 224. PULZE Market Size Business Units 100-499 90,386 500-749 6,060 750-999 3,038 1000-1499 3,044 1500-1999 1,533 2000-2499 904 2500+ 46,525 TAM 151,490 TAM: 151,490 SAM: 136,384 TM: 34,085 Source: US Census,2008 SAM estimate was derived by using broadband business usage ratio. OECD
  • 225. PULZE •Next Steps o Test an MVP  Does it excite people?  Easy to sell?  Can we raise prices?
  • 226. PULZE Customer Relationship and Channels Acquisition? Awareness? Problems HR consultants don’t want to work with us Middle Managers aren’t actively looking Options Referrals – Probably not enough Sales force Implications Costs soar Cannot keep prices to our low price point HR Managers HR Consultants HR Blogs, Journals Middle Managers

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