Business Canvas #1: Original ideaLocation Based Asset Tracking for China SMEs
Business Canvas #2
Lessons Learned – First Pivot The China SME market for RFID tagging was not as large as we imagined Pivoted to a Yammer Clone for the China SME market Advisor and VC feedback for the pivot was great so we saw far more potential there Learned importance of being flexible and willing to decisively pivot!
Business Canvas #3Key Partners Key activities Value Propositions Customer Customer Segments Relationships • Web site • A more secure • SMEs in China (#• Payment providers social network among • Automated Services employees 20-100) development• Established Social business • Customer care line • Mobile AppNetworking platforms communities Developmentlike QQ, Sina.com • Simplify and • Database• Smartphone App organize the lives of managementStore providers busy professionals Key Resources Channels • Streamline • Internet website • Software Developers communication and • App stores • Software management projects • Word-of-Mouth • Memorialize • Social Networking meeting outcomes Websites • Baidu / GoogleCost Structure Revenue Streams• Cost of technology development • Freemium (Initial trial and free service for tracking a small• Customer Service number of items)• Data Storage • Monthly subscription cost based on usage
Lessons Learned – Second Pivot Had become a Yammer clone for the Chinese market … but then saw potential beyond that Now taking the best features of social collaboration companies – including Yammer, Doodle and Dropbox – to include in the MVP Communication: Constantly seeking feedback – from customers, advisors, and business team. Needed to work on IP and licensing clearances – especially since we are dealing with China – This took longer than expected.
Business Canvas #4Key Partners Key activities Value Propositions Customer Customer Segments Relationships • Web site development • A more secure social • SMEs in China (# employees• Payment providers • Mobile App Development network among business • Automated Services 20-100)• Established Social Networking • Database management communities • Customer care lineplatforms like QQ, Sina.com • Office application development • Simplify and organize the lives• Smartphone App Store or linkage of busy professionalsproviders • Streamline communication• Chinese Government (for and management projectslicense applications) • Solidify meeting times• China Mobile Operators e.g. Key Resources • An efficient communication and ChannelsChina Mobile, China Unicom collaboration platform for SMEs • Software Developers who don’t have an OA software • Internet website • Software as a service • Appstore • Word-of-Mouth • Social Networking Websites • Baidu / GoogleCost Structure Revenue Streams• Cost of technology development • Freemium• Customer Service • Initial trial and free service for tracking a small number of items• Data Storage • Monthly subscription cost based on usage• Chinese Domain registration• Chinese SMS partnerships• License fees
Web Site Launch Application Process in China 万网审核 Submit Domain Name Applications Domain Name5 weeks Check Takes Application 2-3 Work Days Get a web space from a web hosting company Mail Information to Web Hosting Company 25-Day 4 Work Days ProcessSubmit Web Site Application to Communications Administration 通 管局Company ID and Web Site Ownership Owner State ID License Description Certificate 15 Work Days Web Site Application Approved
Lessons Learned – Third Iteration Prepare for the unknown - Getting Internet site up and running in China is a non-trivial effort Don’t assume anything - Learned that UI design in China is way different than in US Needle in a haystack - Finding early adopters is really hard, especially when people don’t trust you Where’s the microscope - Analytics is a great friend if you want to know your customer’s needs
State of the Union
Visitors Statistics To-Date from Google Analytics
Top Ten Most Visited Sources City Visits Pages/Visit Avg. Time % New Bounce on Site Visits Rate1.2. Fuzhou Xiamen 378 13 13.99 11.38 00:08:49 00:07:10 32.01% 53.85% 17.72% 15.38%3. Beijing 9 7.44 00:08:27 88.89% 33.33%4. Hangzhou 5 4.40 00:00:48 100.00% 20.00%5. Shenzhen 4 3.75 00:02:25 100.00% 50.00%6. Guangzhou 3 2.00 00:00:50 100.00% 33.33%7. Chongqing 2 2.50 00:00:16 100.00% 50.00%8. Dalian 1 1.00 00:00:00 100.00% 100.00%9. Shanghai 1 40.00 00:14:36 100.00% 0.00%10. Nanjing 1 1.00 00:00:00 100.00% 100.00%
Popular Visited Pages - from Google Analytics Micro-blogging Page First Page of Site before logging in Page to log in Listing of company groups Invitation to other colleagues Viewing Members of the company Private Message inside the 35hzs.com
Customer feedback Customer feedback from last block Front page was too simple Reply messages need to be showed Concern about security What we have improved from customer feedback Front page Full function SMS Sign-in Authentication Learned from trial users in Oliver’s company: The site should be designed based on users’ daily work flow How to increase stickiness - rankings, supervisor’s responses, useful & interesting contents
Other Players in China Talked to Salesforce and one other competitor (gongxf.com) in China Social Collaboration for Business is new concept in China Salesforce Chatter: targeting Global Customers in China gongxf.com 工學坊： Offer free HBR articles for their customers Demand is there for Business Social Collaboration Software Nascent Market: Only have early adaptors now Chinese Government is not intervening this
Biggest Challenges and Next Step More evangelists! More marketing and advertising activities are needed to raise customer awareness to attract real users QQ.com and Sina.com is more for consumer market Need to have another channel for the B-to-B market Continue to refine key features of the MVP Coding Challenge Start charging for the product according to a “Freemium” model
Other Lessons Learned Unlike other MBA courses or working in a well- established company, emulating an early stage startup requires no clear cut tasks. As a result, passion, individual initiative, team spirit, and the ability to function well as a team are critical to success. Legal strictures and requirements cannot be ignored. Proper licensure and clearance is critical, especially when working within a country such as China. These obstacles simply took longer to overcome than initially anticipated.