CoRelation VC Pitch1221


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  • Precanned: Examples are NETP, HNC, Autonomy Results are limited One size DOES not fit all In-house team Expensive uses SAS like tools Resource Constrained
  • CoRelation VC Pitch1221

    1. 1. The CoRelation Opportunity December 2000
    2. 2. What We Do Data Mining Predictive Analytics Boolean Searching Search Engine Relevance Mining CoRelation develops and markets packaged data mining applications
    3. 3. Content Mining Business Model Mine the Data Model for Desired Behavior Adapt for Best Results Aware of People and Groups Aware of Business Objectives Aware of Place and Content Aware of Products and Categories Product Data Purchase Data Click Stream Data Offline Data Call Center Data Application Specific Algorithms Home page Cross Sells Call Center Personal Email Wireless
    4. 4. The Space Sweet Spot Data Mining Strength Cost, Time Specificity, Effectiveness <ul><li>Custom </li></ul><ul><li>Data Mining </li></ul><ul><li>IBM, In-house </li></ul><ul><li>Personalization </li></ul><ul><li>Content Mgmt </li></ul><ul><li>Tools </li></ul><ul><li>Verity, Autonomy </li></ul>Packaged Ease of Use
    5. 5. Market Opportunity <ul><li>Worldwide product sales market forecast, 2004: </li></ul><ul><ul><li>Packaged analytic applications </li></ul></ul><ul><ul><ul><li>$4.0 B </li></ul></ul></ul><ul><ul><li>Document & content management </li></ul></ul><ul><ul><ul><li>$4.4 B </li></ul></ul></ul><ul><li>Public comps: </li></ul><ul><ul><li>Verity, Autonomy, Inktomi </li></ul></ul>Source: IDC + DataQuest
    6. 6. Technology Advantage <ul><li>More specific results than any competitor </li></ul><ul><li>Embeddable engine + add-on apps </li></ul><ul><li>Supports pre-rolled apps for key needs </li></ul><ul><li>Enables 3rd party aftermarket for apps </li></ul>The Application Specific Algorithm ™ 1) Identify goals & data assets for emulating judgment 2) Test various algorithms 3) Create ASA
    7. 7. Technology Advantage Product Strategy <ul><li>Core Engine </li></ul><ul><ul><li>Embedability </li></ul></ul><ul><ul><li>Scalability </li></ul></ul><ul><ul><li>Full set of data mining algorithms </li></ul></ul><ul><li>Future CoRelation Applications </li></ul><ul><li>ASA Toolkit </li></ul>
    8. 8. Technology Advantage Product Set <ul><li>Server / Application Bundles </li></ul><ul><li>Application Modules </li></ul><ul><ul><li>Personalization available </li></ul></ul><ul><ul><li>Cross-Sell/Up-Sell available </li></ul></ul><ul><ul><li>Categorization available </li></ul></ul><ul><ul><li>Call Center Link available </li></ul></ul><ul><ul><li>Email Filler available </li></ul></ul><ul><ul><li>Affiliate Targeter Q1 ‘01 </li></ul></ul>Case Studies
    9. 9. Technology Advantage Personalization: Barnes & Noble Purchases ------------------- Joy of Cooking The New Book of Middle Eastern Food Cinema Year-by-Year Memories of a Geisha Variety Movie Guide   Problem Personalization needs to be Personal to deliver Conversions Packaged Tools You = Overlap With masses Angela’s Ashes The Perfect Storm Animal Dreams Midnight in the Garden of Good and Evil Interpreter of Maladies ASA Solution Truly personal I Hated, Hated, Hated This Movie Angela’s Ashes Video Movie Guide The New Food of Life: Ancient Persian and Modern Iranian Cooking Authentic Mexican: Regional Cooking from the Heart of Mexico Result ASA gives higher conversions, better ROI
    10. 10. Technology Advantage Cross Sell – Up Sell: Barnes & Noble <ul><li>Problem </li></ul><ul><ul><li>Current statistical techniques poor </li></ul></ul><ul><ul><li>Cross sells produce low conversions </li></ul></ul><ul><li>Solution </li></ul><ul><ul><li>Custom ASA developed in 2 weeks </li></ul></ul><ul><li>Result </li></ul><ul><ul><li>100% Conversion boost </li></ul></ul><ul><ul><li>No expensive data mining process </li></ul></ul>
    11. 11. Technology Advantage Categorization: FirstSource <ul><li>Problem </li></ul><ul><ul><li>Labor intensive with 30% error rate </li></ul></ul><ul><ul><li>Lost revenue opportunities, poor placement </li></ul></ul><ul><li>Solution </li></ul><ul><ul><li>Custom ASA developed in 2 weeks </li></ul></ul><ul><li>Results </li></ul><ul><ul><li>Fewer editors and Less Errors </li></ul></ul><ul><ul><li>Relevant placement leads to more revenues </li></ul></ul>
    12. 12. Sales Model <ul><li>Enterprise Direct for Platform Opportunities </li></ul><ul><li>VARs for Aftermarket Application Revenue </li></ul><ul><li>OEM for Peripheral Markets </li></ul>
    13. 13. Sales Model Enterprise Direct <ul><li>Target Customers </li></ul><ul><ul><li>Leading Multi-Channel Retailers & B2B Enterprises </li></ul></ul><ul><ul><li>Financial, Telecommunications, Service Co’s </li></ul></ul><ul><ul><li>Media Companies </li></ul></ul><ul><li>Current Pipeline </li></ul><ul><ul><li>Bertlesmann, Circuit City, Grainger, QVC, Crate & Barrel, CostCo, Best Buy, JCPenney, Nordstrom, Spiegel, Sears, FingerHut, Homeruns </li></ul></ul>
    14. 14. Sales Model Indirect Sales <ul><li>Create Aftermarket Revenue Opportunity for Content Mining Applications </li></ul><ul><li>Develop VAR/SI Program </li></ul><ul><li>Estimated 50/50 Indirect to Direct Revenue Mix by 2003 </li></ul><ul><li>Current Pipeline </li></ul><ul><ul><li>DigiMine, FryMultimedia, FloNetworks, AnyDevice </li></ul></ul>
    15. 15. Sales Model OEM Opportunity <ul><li>Leverage Significant Secondary Markets for CoRelation Technology </li></ul><ul><li>CoRelation & CoRelation VAR/SI Sell in Applications to Platform Customers </li></ul><ul><li>In Discussion </li></ul><ul><ul><li>Informatica, LoudCloud, Claritas </li></ul></ul>
    16. 16. Summary <ul><li>Key Objectives </li></ul><ul><li>Product Set ~ Pricing </li></ul><ul><li>Financial Summary </li></ul><ul><li>Use of Proceeds </li></ul>
    17. 17. Summary Key Objectives <ul><li>Marketing Programs </li></ul><ul><ul><li>Launch company Q1 ’01 </li></ul></ul><ul><ul><ul><li>Analyst and press tour </li></ul></ul></ul><ul><ul><ul><li>Present roadmap for successive niche penetration </li></ul></ul></ul><ul><ul><li>Regional seminars & CIO Outreach </li></ul></ul><ul><ul><ul><li>On-line educational briefings </li></ul></ul></ul><ul><ul><ul><li>Interactive white papers / planning guides </li></ul></ul></ul><ul><li>Sales Goals </li></ul><ul><ul><li>Drive product adoption </li></ul></ul><ul><ul><li>Form relationships with integrators </li></ul></ul>
    18. 18. Summary Product Set ~ Pricing <ul><li>Server / Application Bundles </li></ul><ul><ul><li>$100 K - $250 K (embedded server price = $50 K) </li></ul></ul><ul><li>Application Modules </li></ul><ul><ul><li>Personalization $200 K </li></ul></ul><ul><ul><li>Cross-Sell/Up-Sell $100 K </li></ul></ul><ul><ul><li>Categorization $50 K </li></ul></ul><ul><ul><li>Call Center Link $50 K </li></ul></ul><ul><ul><li>Email Filler $50 K </li></ul></ul><ul><ul><li>Affiliate Targeter $50 K </li></ul></ul>
    19. 19. Summary Financial Summary <ul><li>Top line and Bottom line summary To be Added </li></ul>
    20. 20. Summary Use of Proceeds <ul><li>$XXMM used to accomplish the following objectives: </li></ul><ul><ul><li>X </li></ul></ul><ul><ul><li>Y </li></ul></ul><ul><ul><li>Z </li></ul></ul>