My linkx final
 

My linkx final

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  • Send slide-deck to Steve Weinstein to get feedback Key Learnings (limit to 3 meaningful insights) myLinkx has a viable business because … but most important issues are… How do we want to go about it going forward? What is the split between new homes vs retrofits? Follow the XM/Sirius radio? Or is the home appliance model? Customers buying home appliances after seeing their neighbors, friends etc If we were to start a business today – we will go after this market. You want to show something and pivoted How do customers want to buy the system? Crossing the chasm drawing?
  • 3 distinct customer groups: Young professionals (25-35) , l owest willingness to pay  Family heads (35-55) , highest willingness to pay Retired couples (55 - ) 20% considered purchasing a system Willingness to pay Initial cost: Average $3,200 (70% in $1k-$3k range) Recurring fees: Avg $30/month, 66% in $20-$40 range Most important features (all 90%): Lights Thermostats Doorlocks Dealers/Potential installers are all small shops and do not have an investment in sales and marketing to scale the business. Need to package solutions for various segments of the market Older homes for sale that need work, it would be low priority. Work with HOAs – Newsletter Recs Concerns over WTP for home upgrades in resales Concerns with appraisals of system (will appraiser take into consideration
  • Electrical Contractors Need $500-$800 per $5K install. Excited about $1,500 Assurances of one-day install Need demo & training New Home Developer Channel Conversations with both high end and mass market builders Viable Market and is attracted by our price point Willingness to pay approximately 1%-1.5% of home value Want at least 50% margin for add-on features Home Owners With Systems Major Pain Point: No control over programming system Control to be simpler than current systems (Crestron) Vacation/Secondary Home Owners Spoke to warm and cold weather targets Viable market. Total TAM estimated 4M to 4.5M homes nationwide (small, niche) Channels Security / Electrical largest direct channel Builders / Realtors as spec/indirect channel
  • Nurturing 4 Channel Partnerships 2 A/V Installers 1 Electrician 1 General Contractor Created Demo Board to Showcase Technology Lighting, thermostat, security and locks featured Demo ’d to 50+ students/staff at Warren Hall at CBS Launched Website and Online Marketing Campaign 14K Impressions with 79 Clicks (.53%) 2 Conversions on Landing Page Engaged with Google insider to optimize Actively engaged with 4 qualified leads and 2 leads through website (not yet qualified) Engaged with “Greg” at a top tier national homebuilder. Validated opportunity Pressure to add features (A/V) and bring down price point Actively engaged with 2 SF Bay Area & 1 Sacramento security companies. Poor response from 12 other local security providers (SF and Sacramento)
  • Nurturing 6 Channel Partnerships 2 A/V Installers 1 Electrician 1 Contractor’s Union 1 General Contractor 1 National Builder Created Website Created first version of the website. Includes information for end customers and channel partners Platform for website includes public blog Relaunched google adwords campaign – Can we restart that please? Re-Launched Website and Online Marketing Campaign 14K Impressions with 79 Clicks (.53%) 2 Conversions on Landing Page Engaged with Google insider to optimize Actively engaged with 4 qualified leads and 2 leads through website (not yet qualified) Got a specification lock with 1 customer. All his engineering and architectural drawing will include the myLinkx processor Met with a code donor (influencal Homeowner) and BCEMBA Alumni Had initial meeting an influencal homeowner. Currently exploring the possibility of integrating his code-set into our product Extensive discussions with Asian Vendor Had extensive discussions with Asian vendor(s) to figure out how to reduce price-points to meet the targets set by Home-Builders. We now have the ability to meet their targets Met with iControl CEO Had very informative meeting with iControl CEO. Reviewed company evolution as well as challenges faced and overcome
  • Send slide-deck to Steve Weinstein to get feedback Key Learnings (limit to 3 meaningful insights) myLinkx has a viable business because … but most important issues are… How do we want to go about it going forward? What is the split between new homes vs retrofits? Follow the XM/Sirius radio? Or is the home appliance model? Customers buying home appliances after seeing their neighbors, friends etc If we were to start a business today – we will go after this market. You want to show something and pivoted How do customers want to buy the system? Crossing the chasm drawing?
  • Send slide-deck to Steve Weinstein to get feedback Key Learnings (limit to 3 meaningful insights) myLinkx has a viable business because … but most important issues are… How do we want to go about it going forward? What is the split between new homes vs retrofits? Follow the XM/Sirius radio? Or is the home appliance model? Customers buying home appliances after seeing their neighbors, friends etc If we were to start a business today – we will go after this market. You want to show something and pivoted How do customers want to buy the system? Crossing the chasm drawing?
  • Send slide-deck to Steve Weinstein to get feedback Key Learnings (limit to 3 meaningful insights) myLinkx has a viable business because … but most important issues are… How do we want to go about it going forward? What is the split between new homes vs retrofits? Follow the XM/Sirius radio? Or is the home appliance model? Customers buying home appliances after seeing their neighbors, friends etc If we were to start a business today – we will go after this market. You want to show something and pivoted How do customers want to buy the system? Crossing the chasm drawing?
  • Send slide-deck to Steve Weinstein to get feedback Key Learnings (limit to 3 meaningful insights) myLinkx has a viable business because … but most important issues are… How do we want to go about it going forward? What is the split between new homes vs retrofits? Follow the XM/Sirius radio? Or is the home appliance model? Customers buying home appliances after seeing their neighbors, friends etc If we were to start a business today – we will go after this market. You want to show something and pivoted How do customers want to buy the system? Crossing the chasm drawing?

My linkx final My linkx final Presentation Transcript

  • myLinkx Home automation in 2010: Standards have been established, components are becoming commoditized yet the mass-market hasn ’t been cracked. Our goal: Make home automation affordable for the average home owner Market Size: $121 bn
    • Our Demo Challenge Champion!
    Special Congrats to Steve Blank!
  • Team myLinkx
    • Jeremiah Anderson: Marketing, Website Finance and Sales Professional, Sales Management at NVIDIA
    • Waseem Bawa: Channel Partnerships – Builder/Security Director of Operations for National Inventory Service
    • Amar Pamar: Channel Partnerships – Electrical/AV, SW Dev Energy Management Consultant. Software Engineer.
    • Thomas Ruge: Product Research, Demo Board Physicist, multiple Startups, SW Mgmt at NVIDIA
  • Phase 1: Canvas
    • Key Partners
    • Hardware Vendors
    • Utilities (PG&E)
    • Local Specifiers (architects, lighting designers, interior, etc.)
    • Dealers (Installers, electricians, security contractors)
    Revenue Streams Cost Structure Channels
    • Key Resources
    • Physical: cloud server
    • Human: Developer
    • Financial for scaling business
    Key Activities
    • Value Proposition
    • Security / Safety
    • Energy / Cost savings
    • Convenience / Comfort
    • Coolness / geek factor
    • Dealer: Shorter / Simpler Installation
    Customer Relationships Customer Segments
    • Software Development
    • Sign up dealers/installers
    • Inventory mgmt
    • Project setup
    • Payment Management (liens etc.)
    • Asset Sale + Licensing (initial)
    • Subscription fees #1:
    • Updates/monitoring #2:
    • Remote Control / Storage #3
    • Remote security cameras
    • Project financing
    • Demand Response
    • Web Sales
    • DIY Channel
    • Dealer / Installer
    • COGS
    • Operating Costs (Development, Marketing, G&A)
    • Sales (Commissions)
    • Communities
    • Personal Assistance
    • Self-Service
    • Home Owners
    • SME
    • Dealer / Installer
  • Phase 1: Key Learnings
    • Thought
    • Mainstream Market For Home Automation Exists
    • Customers Willing to Pay Approximately $7,000 for Install
    • Willingness to Pay $50/month Recurring Fee
    • Key Features: Lighting, Security, HVAC, AV
    • Reality
    • Confirmed there is a mainstream demand for home automation , but how to scale is concern
    • Willingness to pay closer to $3.2K!!!
    • Average willingness to pay for recurring fee is $30/month
    • Confirmed Lighting, Security and HVAC most desired services
    70 Potential End Customer Interviews 40 1:1, 30 Survey 3 Advisor Meetings Andy, Steve, Gabriel 10 Channel Partner Interview Actions
  • Phase 2: Canvas Key Partners Revenue Streams Cost Structure Channels Key Resources Key Activities Value Proposition Customer Relationships Customer Segments Direct Customers: - Electricians - Security - Local Specifiers Spec Customers - Homebuilders - Commercial Real Estate Developers Suppliers - HW Vendors
    • Retrofit - dealers/installers
    • New Home Developers
    • Commercial Retro
    • Strategic – GE, Philips, PG&E
    • Realtors
    • Web Sales/Direct
    • Physical: Cloud Dealers
    • Human
    • - Developers
    • - Sales/Biz Dev/Mktg
    • Financial for Scaling Business
    • Main Box Hardware COGS
    • Software Development
    • Beta Customer Costs
    • SG&A
    • Communities
    • Personal Assistance
    • Self-Service
    • Downstream Sales Enablement / Biz Dev Program
    • SME
    • Dealer / Partner
    • Home Owner
    • Commercial Real Estate Owners
    • Vacation/ Secondary Home Market
  • Phase 2: Key Learnings
    • Thought
    • Home builder a possible channel
    • Viability of vacation home market
    • Solve a pain point caused by incumbents (Crestron, C4, etc)
    • Electrical contractors as a possible channel
    • Reality
    • Cost must be lower (~ 1% of home price or less) and value prop higher than we anticipated; requires local customer support
    • Pain point validated, but this is a small, niche market
    • Validated pain point (i.e. no programming control). But, some are cautious about allowing another vendor to their system
    • Okay with $500-$800, excited at $1500 per $5K install. Install must be ≤ 1 day, demo & training required
    Spoke to homeowners with existing systems Spoke to cold and warm weather vacation home owners Meetings with Electrical contractors Actions Phone conference with Greg at National Homebuilder
  • Phase 3: Canvas Key Partners Revenue Streams Cost Structure Channels Key Resources Key Activities Value Proposition Customer Relationships Customer Segments Direct Customers: - Electricians - Regional Security - Local Specifiers Spec Customers - Homebuilders - Commercial Real Estate Developers Suppliers - HW Vendors
    • Retrofit - dealers/installers
    • New Home Developers
    • Security Providers
    • Commercial Retro
    • Strategic – GE, Philips, PG&E
    • Realtors
    • Web Sales/Direct
    • A/V Dealers
    • Physical: Cloud Dealers
    • Human
    • - Developers
    • - Sales/Biz Dev/Mktg
    • Financial for Scaling Business
    • Main Box Hardware COGS
    • Software Development
    • Beta Customer Costs
    • SG&A
    • Communities
    • Personal Assistance
    • Self-Service
    • Downstream Sales Enablement / Biz Dev Program
    • SME
    • Dealer / Partner
    • Home Owner
    • Commercial Real Estate Owners
    • Vacation/ Secondary Home Market
  • Phase 3: Key Learnings
    • Thought
    • New Home Builders is a Scalable Channel. Potential AV upgrade market
    • Home security providers is a scalable channel
    • Creating a demo board will generate interest and demand
    • Will be able to generate solid demand through online campaigns
    • Reality
    • Validated opportunity, but additional pricing pressure as well as need to add AV. Spoke to AV dealers and discovered huge opportunity for upgrade market of existing systems.
    • Three interested, but difficult to work with. Extremely fragmented market. Need to target larger national players.
    • Well received and generated more interest, credibility and opened more doors than expected. Need tighter elevator pitch and plan for show demos.
    • Very good CTR, but few qualified leads. Need more targeted campaign around specific solutions (upgrade, lighting, security, etc.)
    Created Demo Board Columbia demo (50+) Engaged with several regional security Providers (15) (Bay Area, Sac)
    • Created AdWords
    • campaign
    Actions Initial discussions with Pulte And AV dealers
  • Phase 4: Canvas Key Partners Revenue Streams Cost Structure Channels Key Resources Key Activities Value Proposition Customer Relationships Customer Segments Direct Customers: - Electricians - Regional Security - Local Specifiers Spec Customers - Homebuilders - Commercial Real Estate Developers Suppliers - HW Vendors
    • Physical: Cloud Dealers
    • Human
    • - Developers
    • - Sales/Biz Dev/Mktg
    • Financial for Scaling Business
    • Main Box Hardware COGS
    • Software Development
    • Beta Customer Costs
    • SG&A
    • Communities
    • Personal Assistance
    • Self-Service
    • Downstream Sales Enablement / Biz Dev Program
    • SME
    • Dealer / Partner
    • Home Owner
    • Commercial Real Estate Owners
    • Vacation/ Secondary Home Market
  • Phase 4: Key Learnings
    • Thought
    • Recurring Fee Strategy Direct from End Customer
    • Upgrade Solution with AV Dealers for High End Systems
    • Electrician Contractor is Viable Channel for Retrofit Market
    • Scale With New Home Builders
    • Reality
    • Need to embed cost in existing monthly fee, i.e. Security, Cable, Broadband, Mortgage, HOA.
    • AV dealers continue to provide interest and validate upgrade model.
    • Model validated, but more efficient acquisition process needed. Explore relationships w/ Electrical Contractor Unions.
    • Builders want to partner, but need a lower price-point. Working with Asian vendors to achieve lower BOM for builders.
    Met with iControl CEO Foster Electrician Relationships Foster AV Dealer Relationships Engage w/ Leads Several Meetings with Pulte Homes Actions
  • GTM Strategy and Crossing Chasm
    • 2. MainstreasmExisting Services ($170M)
    • Large Home Security: #2 - #11 U.S Home Security (4M Cust.)
    • Cable/Broadband: #2 - #5 (55M Cust.)
    • 1. GTM ($20M)
    • High End Upgrades
    • Electrician Channel
    • Regional Security
    • 3. Full Service Mass Adoption
    • New Home Builders: KB, Pulte (585K New Homes in a Down Year of 2010)
    • MyLinkx is a Viable & Scalable Business!
      • Market is expecting smarthomes to become the norm in 10-15 years.
      • Demo board well received. Interested customer(s) self selecting to come talk to us.
      • Customer willing to pay recurring fee for SAAS automation (ADT Pulse, EC Research, etc)
      • However, Recurring fees need to be embedded in existing fee for home owner in order to achieve scale.
        • Security, Cable/Broadband, Mortgage, HOA
      • HW to become commodity at scale, need to be a SW business (licensing fee model?)
      • Mass adoption through new home builders and/or existing service providers
    • Next Steps / Go to Market Strategy
      • Short term ($20M): AV Dealers on Upgrade Model; Electricians on Retrofit
        • Reach early adopters
        • Cash Flow, Validate UI
      • Ramp ($170M): Go after #2-11 in security & #2-5 broadband/cable
        • Achieve scale and cross chasm
      • Long Term (?): Builders (eye on the prize).
        • Achieve full service scale and build brand!
    Final Verdict
    • Our Teaching Team
      • Steve Blank
      • Oren Jacob
      • Jon Feiber
      • Jim Hornthal
      • Bhavik Joshi
    • Our Advisors
      • Steve Weinstein
      • Andy Smith
      • Gabriel Kra
    Thank You!
    • Our Demo Challenge Champion!
    Special Congrats to Steve Blank!