MIT 100K 2011 Executive Summary Web/IT track winner


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MIT 100K 2011 Executive Summary Web/IT track winner

  1. 1. Quipu Systems MIT $100K Executive Summary ContestMapping Your Supply Chain’s FootprintQuipu Systems offers the first lightweight, cross-platform social networking system to connectsuppliers at every level of a supply chain so that they can share environmental informationwith their buyers and their buyers’ buyers - all the way to the retail customer.The ProblemConsumers increasingly want to know the social and environmental impact of the productsthey buy. And companies are responding: both Tesco and Wal-Mart have committed tomeasuring the environmental footprint of every product they sell through a standard rating.But in order to measure the environmental impact of a product, companies have to connectwith their direct and indirect suppliers, who can number in the tens or hundreds ofthousands. The traditional approach involves expensive and time-consuming research on thepart of companies, governments, NGO’s and consultants. And the resulting data often lacksthe trust and transparency needed to verify and compare it with other sources.The SolutionQuipu Systems will provide a Software as a Service (SaaS) web platform, where suppliers,manufacturers, wholesalers and retailers, among others, are able to submit all the requireddata to build environmental maps, including carbon footprints. The platform will offer theflexibility to receive data via customized web forms, spreadsheets, mobile phones orenterprise systems while maintaining consistency and traceability of the supply chaininformation. Suppliers could also use the free open source platform topublish their information but their information will be publicly available.Within the platform, users will build the supply chain structure, share and connect with otherplatform users, and generate public and private reports. The company will build partnershipswith well-known private certifiers and NGOs that work on environmental assessment toprovide other added value services to Quipu clients, as well as develop a selling channel. Edgar Blanco .:. Leonardo Bonanni .:. Ignacio Castro Copyright © 2010 Quipu Systems .:. Confidential
  2. 2. Quipu Systems MIT $100K Executive Summary ContestMapping Your Supply Chain’s FootprintThe TeamThe company leverages the knowledge and experience from developing and running the opensource project (originally sponsored by the MIT Media Lab and othergroups within MIT) and successful engagements on environmental assessment of supply chainswith companies like Chiquita, Office Depot, GM, Nokia, ASICS, GE, Staples and Dyson. Thesecompanies will be the first prospect users of the Quipu platform.Leonardo Bonanni is the founder of, a platform designed to connectconsumers with the source of products through supply chain transparency. He is a Postdoc atthe MIT Media Lab where he teaches Radical Sustainability in Product Design.Edgar Blanco is a supply chain and logistics expert and a Research Director at the MIT Centerfor Transportation & Logistics. His current research focus is the design of environmentallyefficient supply chains.Ignacio Castro is a Sloan Fellows student at MIT Sloan School of Management. Previously hewas the Co-founder and General Manager of Gears Soft, a company that provides projectmanagement and quality assurance services to the IT industry. He also led the strategy toprovide near-shore outsourcing services to the U.S. and Latin American markets.The FinancialsLarge consulting organizations, like SGS, are currently generating $250 Million dollars inrevenue in their environmental practice. We believe Quipu Systems will be able to tap intothis growing market but will also open new revenue streams with the SaaS model. We believewe will be able to reach $50 million in revenue within 5 years. We are aiming for a 25%operating profit in year 5, given the fixed cost structure and historical data available fromrunning the Open Source project The team has already been able toattract $500K to their non-commercial activities in this area.The company will offer access to our web $50,000,000platform in tiers based on the number of $45,000,000products and users, giving the flexibility to our $40,000,000customers to use different approaches to $35,000,000engage their supply chain partners. This allowsfor a variable pricing model tailored to the $30,000,000organization size and supply chain complexity. $25,000,000 $20,000,000Our growth projections are based on cascading $15,000,000user adoption rates. We will start with 10-20 $10,000,000supply chains within our existing industry $5,000,000connections. By tapping into their extensive $0product and supplier base, we will be able to 1 2 3 4 5achieve increasing growth rates. Total  Revenue   Pro.its  We are looking for a seed investment of $250K to jump-start the platform development. Edgar Blanco .:. Leonardo Bonanni .:. Ignacio Castro Copyright © 2010 Quipu Systems .:. Confidential