Columbia B7739-002

Steve Blank Bob Dorf

Day 2 - Advanced Entrepreneurship

April 17, 2012

Welcome to Day 2!

Order of Presentations

1. YSN

2. TVM Technologies

3. Table Compass

4. Social Crowd

5. Mobile Marketing

6. Kadak

2

7. Jiae

8. Factabase

9. eFood

10. Digital Exchange Network

11. Diagnosly

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● Yesterday’s lecture presentations will be emailed or available on angel today,

including Alexander Osterwalder’s presentations. Lecture slides are not available prior to the lecture

Advanced Entrepreneurship

Day 2April 17, 2012

TVM Technologies

Team

Brian VogtDoug Carlson

Mohamed MaimouniAG Crum

Gabriel GilesSameer Kotak

Interviewed 35 people (end-users)

Technology for medical and comfort problems of the feet

TEAM NAME HERE

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

FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9

1

3

4 2Get, keep, grow? End-users: PR, branded captivity

Partners: Convince of

unique value for end-users

5

6 7

8

9

• Medical (sweat) – Hyperhidrosis, 1-3% impaired

• General (sweat) – comfort, 10-30% problematic

• $14B global … high-tier dress & business casual

• 3% total-med SOM volume = 2M pairs, $500m (to be verified)

• Additional tech luxury (to be quantified)

Market size

Business type

• Contract manufacturing of self-contained shoe sole

• Sell as branded component to shoe makers

• Customers are partners and end-users

• Limited partners globally

Startup …

Proposed experiments

• Verify data & hypotheses on total med market –• podiatrist, dermatologist, foot clinic, sweat-help orgs• channels, reimbursement, sizing, etc

• Design new experiment to quantify ‘tech comfort’ segment

• Discuss business type options (contract manufacturing, licensing, IP) with the brands

• Survey end-retail to better understand requirements

Startup …

Table CompassAdvanced Booking Discounts for Restaurants

10 Restaurant Interviews

Robert Montrone

EMBA ’12Consultant /TV ProducerABC Television

Jaidev Rao

EMBA ’12Management ConsultingRothstein Kass

Abhishek Sheetal

EMBA ’12Tech Marketing / StrategyLeCroy Corporation

William Cooke

EMBA ’12Strategy & Financial PlanningBlue Sky Solar

Sarah Brown

EMBA ’12ConsultingNeuberger Berman

Dennis Kwon

MBA ’11Engineer / Tech EntrepreneurshipLala.com

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: discountsRestaurants: 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 matchcustomers 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

1

3

4 2How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc.

5

6 7

8

9

Customer Quotes

• “Retention on a discount customer in a restaurant is almost zero”

• “Discounts work in other businesses really well but maybe not in restaurants”

• “We don’t take reservations. Too many no shows and then we have to turn people away”

• “It’s really hard for people to wait for money”• “I’ve been burned by this shit before so I’m hesitant to

deal with it again”• “I get 5-20 phone calls from people like you every day”

Table Compass

Most important customers?• Medium-high end

restaurants that currently use online reservations

• End users Archetypes?People who plan, price conscious, occasions, groups of friends Job they want us to get done for them?End customer: Discounted bookingsRestaurants: Fill seats, Working capital

Key Activities• Platform design and

development • Business

development, partnerships and marketing

Which of our customer’s problems are we helping to solve?• Empty tables during

slow periods• Difficulty making

reservations• Price

Which customer needs are we satisfying?• Restaurants: Revenue

management, Working capital

• End Customers: Discounted bookings, secured reservations, restaurant comparisons

What are the Key Features of our product that matchcustomers 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

1

3

4 2How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc.

5

6 7

8

9

jerry sanders Group 14

13

[Social Crowd]An online forum where (local) Finders & Grinders meet

4/16: 12 interviews (5 Finders; 7 Grinders)

jerry sanders Group 14

14The Problem

[Social Crowd]

14

Yesterday… we were almost right.

Small businesses (“Grinders”) -- which are essential to vibrant communities -- face increasing threats to viability due to the inaccessibility of:

• Development capital• Working capital• Third party contractors (planning, design, construction)

They rely on the “Finders” of new business opportunities (aka investors) to provide the illusive capital inputs.

jerry sanders Group 14

15The Solution (version 1.0)

[Social Crowd]

jerry sanders Group 14

16Interview results

[Social Crowd]

16

We struck oil!

Broad questions aimed at two key stakeholder groups revealed the following trends:

• 2 types of small business owner: self- & third-party funded• Grinders want access to small amounts of capital $10K-$2M;

typically they had LT r/ships with third party contractors• Structural holes exist between the ‘Money Men’ (Finders) and

the ‘Operators’ (Grinders)• Finders have limited time for DD; don’t want to be bothered

unless the opportunity ‘has legs’

jerry sanders Group 14

17Type of Business

[Social Crowd]

• Online ‘matchmaking’ forum to connect F&G• Differentiating factors:

– Local project focus– Investments of $10K - $2M– Improved efficiency & compatibility:

• Screening process conducted by a panel of CBS graduates with NYC start-up success

• Ability for both parties to upload a profile– Investment history / prior start-up success– “I am looking for…”

The solution (version 1.1)

jerry sanders Group 14

18Compatibility is key

[Social Crowd]

jerry sanders Group 14

19

[Social Crowd]

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

1

3

4 2- Semi-automated - Local community-

focused

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6 7

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jerry sanders Group 14

20Market Size*

[Social Crowd]

Total Addressable Market600,000 new small businesses per year in the United States

Served Available MarketAssume 1/3 are self funded & 1/3 are funded by conventional (institutional) facilities

Target MarketIn 2010, NYC accounted for 5% of the new small business launches in the United States

*Need to pressure test these assumptions

600,000 200,000 10,000

Number of new small businesses

jerry sanders Group 14

21Proposed Experiments

[Social Crowd]

Test Activities

Genuine market size Further research to determine the accurate dollar value attributable to our target market

Customers’ willingness to pay Surveys & interviews to determine:Perceived value in CBS Alum review processValue attributed to time-saving componentPricing sweet-spot for fees: F&G

Importance of the local aspect Surveys & interviews with F&G to determine Research local investment statistics Research industry constituents

How to plug (not bridge!) the gap Surveys & interviews to determine impact of consummating:a good deal: loyalty to us or the contracting party?a bad deal: negative splash-back on us?

Diving deeper…

Mobile Marketing

Restaurants have a marketing

problem

People don’t like to receive random

advertisement (email, SMS)

Hypothesis

Can be solved by offering a flexible web-based tool to execute marketing

campaigns

People would like to receive it if they

were able to manage the

content

Facts

Owner of 5 Restaurants in New York

Manager of a New YorkRestaurant Chain

Main Problems • People retention• Access to capital• Sale fluctuation

• People retention• Increasing sales ( breakfast, grab-

and-go)

Marketing Problem Description

• Customer more loyal to booking services than to the restaurant

• Significant spend on online marketing and discounters fees ( >$5K pm)

• Chain manages the marketing campaign

• Developed focused campaigns• GM doesn’t engage in websites• Have developed a loyalty customer

base

Interest in the solution

• If it works and reduces the total spent on marketing

• Could give certain discounts to get new customer but there is a limit because of the margin

• Will pay on results

• See the potential on addressing people passing by

• Willing to try the product and ready to give 50% of the profit of the new campaign

Others • Against building a culture of getting customers due to discount

• High on reviews that allowed them to build a customer base

• Nearby restaurant is rebranding because of bad reviews

Segment (surveys)

20-27 (6) 28-35 (6) 35-45 (2) 45+ (2)

Main reason for choosing a restaurant

• Location• Price• Quality

• Quality• Looks

• Quality• Tidiness

• Quality• Tidiness

Selection mechanism

• Website • Word of mouth • Zagat

• Zagat • Known restaurants

Restaurant Advertisement

• Don’t do much • Yes, but to known customers

• Don’t do much • Don’t do

Reaction to email, SMS advertisement

• Annoying but allows you to get a discount

• Prefer email

• Annoyed by too many advertisements

• Don’t want to receive any

• Don’t want to receive any

Would they accept to get email, SMS advertisement

• Only if you can choose what you get

• Only if you can choose what you get

• Sizable discount

• Only if you can choose what you get

• Max number of messages

• Only if they liked the place

App that could like (guided question)

• Email with pictures send for what you are interested

• Proximity app including quality, price and discount

• Proximity app including quality and price

• Proximity app including quality and price

Restaurants have a marketing

problem

People don’t like to receive random

advertisement (email, SMS)

Hypothesis

Can be solved by offering a flexible web-based tool to execute marketing

campaigns

People would like to receive it if they

were able to manage the

content

- There is a marketing problem

- Reviews are the main issue

- Only see a potential in the product

- They don’t like random email, SMS

- Would if they were in control

- Want to mix quality and price

Facts

Mobile Marketing

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)

1

3

4 2Get/keep/Grow

Customers?- Low-cost platform

- Mkt Campaign Templates

5

6 7

8

9

- Cheap and an effective way of reaching the customers

- Reaching local customer (location based)

Adeem FensterShashi Shrimali

Stella ChanSanjay Bharadwaj

Richard JamesNeeraj Lal

In person Interviews – 78

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

1

3

4 2

5

6 7

8

9

GLOBAL HOT DRINKS MARKET

US HOT DRINKS MARKET

Tea is expected to grow +4% in the next 5 years as compared to Coffee of +2%

<<Findings>>

Consumers

• Lots of tea drinkers • Most prefer to consume

tea at home• A retail format is not as

desirable• Quality of tea is

problem• Health is a big reason• Sweet spot was $1.99

for good quality tea• Lack of awareness of

varieties of tea

Channel

• Owners/managers see hot tea as an essential menu offering and would switch suppliers

• Significant diversity in the quality of teas offered exists:• Economy, mass produced, bagged tea• High quality, steeped, whole leaf teas

• Economy: purchased in bulk from wholesalers (manufacturers = Unilever, Nestle etc)

• High quality: purchased from domestic specialist tea merchants (importers/blenders), e.g. Numi (California), Teaguys (Mass)• Taste, aroma, exoticness,

presentation/packaging, reliability, sourcing are key attributes

• Distinct lack of brand awareness in this segment – customers do not know who’s tea they are drinking!

Business Hypothesis

Hypothesis

Tests Results

Desire to consume authentic Asian tea outside home

Interview

20% outside the home

66% preferred at home

consumer have limited access to authentic Asian tea in a retail format

Interview38% have access in

a retail format

make the tea (incl. picking the best ingredients)

Interview

53% consume tea at home

38% not satisfied with the quality

Business Hypothesis

Hypothesis

Tests Results

Particular about the taste of tea (quality)

Interview38% not satisfied with the quality

Lack of retail availability of tailored flavor

Interview

Many comments on survey citing inconsistency versus home

Consumers care about convenience/speed

InterviewOnly 7% cited

convenience as a preference

Business Hypothesis

Hypothesis

Tests Results

Consumer wants to be reached through retail channel

InterviewOnly 20% cited

retail channel as the preference

Customers are willing to pay Startbucks prices for good tea.

InterviewOnly 19% were willing

to pay > $438% chose $1.99

We need to educate customer about different varieties of tea.

Interview

66% of responses chose English

breakfast, Indian chai & green tea

out of 20 choices.

Business Hypothesis

Hypothesis

Tests Results

94% of Asian consume tea versus

88% averageCups/day slightly

above averageCaucasian #2

group

Demand from health conscious consumers

Interview66% cited health as

the reason for drinking tea

Demand from students Interview83% drink tea averaging slightly over 1 cup per

day

Demand from Asians Interview

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

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

• BRAND - TBD

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/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

1

3

4 2

5

6 7

8

9

Jiae.com: Interest based platform for creative minds in ChinaTeam: Deymon Chen, Yu Guo(Hugh), Mathias Rosenthal, James Hagen

10 Interviews2012.04.16

Rich TongTumblr Fashion Director

Fashion Blogger

and 9 design students from

What We Learn From Design Students

Insights from Design Students Interviews

Business Hypothesis for Design Students

Interview insights From Fashion Blogger

Satisfaction with platform promoting good quality photos based contentContent Quality is the key, platform needs to drive awareness for good photosTraffic is the most important incentive for these fashion bloggersFeedback is a way to keep them sharingKeep touch with community is another motivation for them to shareCreator of the photos, many bloggers post 50 original photos dailySharing different photos on different sites, 10 eachPinterest has more curators, rather than creators with affiliated model with sitesTumblr has more curators, together with curatorsDribbble attracts lots of designers to share partial original design worksFancy focuses on driving sales to B2C sites with good quality merchandising photos.Barriers in china is high for these emerging photo based US SNS sites to enter ChinaSources of good photo and good fashion bloggers in China are limitedDemand for good photo based information is highLifestyle inspiration ideas are what users are looking for on these photo based sites

Business Hypothesis for Fashion Blogger

•Photo based nice and

clean SNS platform

•More Traffic

• Design School

• Design Media

• Government

• Web Partners

• Companies/

Brands

• Platform Management

• Customer Acquisition

• Expanding Reach

• Platform

• Customer Base

• Brand

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

Jiae: leading interest based online community in China

•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

Columbia B7739-002: Advanced Entrepreneurship

JiaeTEAM MEMBERS Deymon Chen Hugh Guo Mathias Rosenthal James Hagen Scott Yoo

Degree program and Department/Major

EMBA Global-Asia 2013

EMBA Global-Asia 2013

Columbia Business School 2012

Columbia Business School 2012

EMBA Global-Asia 2013

Provide your LinkedIn public profile URL

http://www.linkedin.com/pub/deymon-chen/48/2a4/12

http://www.linkedin.com/in/guoyu

http://www.linkedin.com/pub/rosenthal-mathias/24/7b8/97a

http://www.linkedin.com/in/jamesohagen

N/A

Are you the subject matter expert (SME) for this team?

Business Development

User Experience Design, Business Development

Business development Business Development

Marketing; Sales

Pick a role you think you most likely will play on this team (Hustler, Hacker, Designer or Product Picker)

Hustler Designer Product Picker Strategist Hustler

Anything interesting we should know about you (be brief)

Citibank, Setup China’s first rural foreign lending company

Chief Designer of Baidu.com, Blogger

Banking, Startup-Chile, North American Chilean Chamber

eCommerce President, social media strategist for nonprofit

Doosan marketing regional manager, supply chain management

TEAM FACTABASE

8 Interviews already conducted20 pending

8 POTENTIAL CUSTOMERS AND AN INDUSTRY EXPERT HELPED US FOCUS OUR SEGMENTS, RELATIONSHIPS AND REVENUE STREAMS

Financial Services

Industry #Value Prop

News Agencies

Consulting

Entrepreneurs & Indp Researchers

2 (4)

1 (2)

1 (4)

2 (3)

8 (20)

• Non-frequent

Segments Relationships Revenue Streams

(2)

(2)

Universities

App Developers

0

0Pending Interviews

Same

Same

Same

Same

Same

• Automated Service

• Per table

Market Research

1 (1)• Needs are

frequent however has a risk of limiting growth

• Automated Service

• Limited only to per table

• Non-frequent • Automated Service

• Per table

• Subscription• Automated Service

• Automated Service

• Frequent

• Non-frequent • Per table

No ChangeChanged

WE INITIALLY BELIEVED THAT THE MAJORITY OF CUSTOMER SEGMENTS FALL UNDER A FULL ACCESS SUBSCRIPTION SERVICE

Co

mp

reh

ensi

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ecto

r S

pec

ific

Co

vera

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Nee

ded

FrequentLess Frequent

Frequency of Need

Entrepreneurs and Independent Researchers

Full Access Subscri-ption Based ServicePer Table Charge

Per Table ChargeSector based Subscri-ption Service

News Agencies

ConsultanciesUniversities

Financial Services Firms

Market Research Firms

HOWEVER, IT SEEMS THAT LESS OF OUR CUSTOMERS ARE INTERESTED IN A SUBSCRIPTION PACKAGE AND ARE MORE INTERESTED IN A PER TABLE ACQUISITION

Co

mp

reh

ensi

veS

ecto

r S

pec

ific

Co

vera

ge

Nee

ded

FrequentLess Frequent

Frequency of Need

Entrepreneurs and Independent Researchers

Full Access Subscri-ption Based ServicePer Table Charge

Per Table ChargeSector based Subscri-ption Service

News Agencies

Consultancies

Universities

Financial Services Firms

Market Research Firms

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?

1

3

4 2

5

6 7

8

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)

OUR BUSINESS MODEL CANVAS AT DAY 0

What are the most important costs inherent in our business model? Fixed? Variable?

1

3

4 2

5

6 7

8

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(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

eFood

day 2

Interviews – End Users

End Users Value propositionsHypotheses check

Grocery Shopping and Inventory Management is an Inconvenient Process

28 interviews

Restaurants lack robust and reliable inventory system for keeping track of food and beverages

5 interviews

• Save time (finding and delivery) - YES• Reduce costs (waste, best deals) - NO• Diet advisory - …not tested• Recipes management & recommendations - … not tested

• Save time (finding and delivery) - NO• Reduce costs (waste, best deals) - NO

Test Details - Grocery Shopping

Test

We tested 28 consumers in three grocery store locations

Wholefoods Market – Midtown

Citarella – West VillageColumbia Grocery Store

ResultsMost shoppers find it to be inconvenient

Method for tracking inventory is un-sophisticated

“looking in the fridge” / taking notesOnline shopping / delivery used in 80% of

tests in W VillageFound potential partners

Fresh DirectMax Delivery

FairwaysTwo people had actively considered the

concept and wanted to use it,Connection to online delivery platform not

essentialTracking of data was deemed to be a negative

for one intervieweePeople still want to buy perishable goods

themselvesNot relevant to students

Test Details - Restaurants

Test

We tested 5 restaurants owner in:

• Bahamas (several Hotel/restaurants):

high-end• West Village :

asia-fusion • Times Square:

convenient

ResultsMost of the restaurants have an automatic

inventory system. A minor problem might be the beverages -

solutions are already in place.

Digital Exchange Network

Six Interviews

Customer Segmentation- Start at The High End & Work Down

• TOP 5% of LinkedIn users..roughly 10 million people.• Educated professionals, income above $80,000 a year• People for whom networking is a regular activity for real time

or future benefit• People who have exchanged a piece of information worth

more than $500

• People who place high value on creating goodwill, validation, stronger connections, verification. Capturing this will be a major differentiator.

Customer Sentiment/Emotions

• SOCIAL…connected, ambitious, worried about advancement, anxious about execution of their job,

• OPEN to helping others but not into free love• ENGAGED…I have built a lot of goodwill in the world and

sometimes feel like it doesn’t come back around• MAGNAMIOUS... I like doing things for other people • “SEEN” Want to be appreciated, admired for what I do. Would

like the world to really “see me.”• BELONGING.(I might deny it) but I like being member of the

right club• KARMA..is real

VALUE PROPOSITION

• HYPOTHESIS: People want to exchange high value business information online. This value is well understood and there is WTP for some.

• RESULT: Some willingness to try, but some late adopters scared of compromising relationships, “is it still personal? confidential? Not sure I’d actually use it? Why would I give away high value unless I know you” Realization that networks are very important. Already use some form of socially enabled marketplace, “buyers have nothing to offer..not an equal exchange.” IS IT REALLY HIGH END?

DROWNING IN TWEETS?

• HYPOTHESIS: Users are frustrated by energy spent on LinkedIn/social platforms or want an alternative with more value OR stronger, BETTER connections and verification.

• Result: Some recognition of the potential for private/high level groups. “Keep it smaller and closer.” “I don’t blog or tweet, don’t care. SEC rules” If it can get me more business… sure. What do I get out of LinkedIn?

I NEED THIS?

• HYPOTHESIS.. Top uses for D.E.N will be business expertise, sales leads, job search, favors, recognition for favors, making money, getting validation.

• RESULT: “I get it, we could use that perfectly in our community.” Some interviewees not sure of utility. Personal uses? The “priceless exchange of favors..Cancer Dr. Appointment?”

THE CLUB?

• HYPOTHESIS: Social structures that will influence uptake of D.E.N include alumni and affinity groups. Creating scarcity will cause uptake.

• RESULT: Very positive feedback from business school chiefs, alumni relations…need to overcome nervousness over brand, alumni don’t want job calls. Are there amazing people in the network? Exchanges of genuine high value?? More than other places? Why not email?

DOING GOOD?

• HYPOTHESIS: Karma matters! Existing platforms (Linkedin, GLG, Evisors etc) miss this & it’s important enough for me to switch.

• RESULT?:

CANVAS 1.0People 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.

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 sevice)

Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise.

MVP engineering/hosting/design costs are fixed as is some project management..

community management, feature set build are variable

Free to join and use– then transaction fee, listing fee, fee for top tier circles

Affinity groupsBiz Dev, Cash,

tech development

1

3

4 2Tap communities already transacting offline or chaotically

5

6 7

8

9

CANVAS 1.1People 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 sevice)

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

1

3

4 2Tap communities already transacting offline or chaotically

5

6 7

8

9

9 Interviews

Scope Narrowing

Narrowed focus to look at the life cycle around• Home Fertility Monitoring• Pregnancy Checkups• Toddler & Infant Monitoring & Unplanned Physician Visits

Interviews

Industry Expert

Patient Provider Payer Mfg0

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2

3

4

5

6

7

Monday

Monday

70

Interviews

• “This would be a huge value.”• “The wait at the OB/GYN is atrocious. All

of my friends complain about it.”• “I wouldn’t have to get a babysitter!”• “I had to manually relay the data from my

heart monitor. It was so primitive!”

• Payers have a large problem of combating fraud (e.g. billing unnecessary procedures)

• Manually recording test results • Retaining hard copies of medical records

and trying to identify trends to discuss with their doctor

• Mother with 3 kids 25+ doctor visits per year.

~ 90% of them only involved basic diagnostic tests (ear, blood, throat culture)

• Stress• Avoidance

SAYING NEW INSIGHTS

DOING FEELING / THINKING

71

MONDAY Hypotheses

HYPOTHESIS TEST RESULT

• Patients would run diagnostic tests from home if given a viable solution

• Interviews • Valid

• Medical device makers are willing to use a 3rd party software platform

• Interviews • Inconclusive

• Parents with young children would like to reduce their number of doctor visits

• Interviews • Valid

1

2

3

72

MONDAY Hypotheses

HYPOTHESIS TEST RESULT

• Pregnant women would like to reduce their number of doctor visits

• Interviews • Inconclusive

• People are concerned about being exposed to other illnesses at a hospital

• Interviews • Valid

4

5

6

73

DIAGNOSLY

• 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 marketingKeep + 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

ConsumersFamilies (primarily mothers) in the fertility testing, pregnancy, and early childhood phase

Device MakersMakers of at-home monitors and diagnostic devices

PayersInsurance, Medicare, Medicaid

ProvidersGeneral Practitioners, Midwives, Nurses

• Improved patient outcomes

• Earn more money via focus on higher value procedures

74

Future Hypotheses

• Patients would be willing to pay the same amount or more for home diagnostics

• Interviews

• Small device manufacturers would be willing to use 3rd party software, if it’s free

• Interviews

• Small device companies will be more willing to partner than larger ones

• Interviews

1

2

3

HYPOTHESIS TEST RESULT

75

Future Hypotheses

• Bill physician a fee as a % of insurance / Medicare / Medicaid payments we facilitate

• Interviews

• Some patients will be willing to pay out of pocket

• Interviews

• General practitioners will be more receptive than specialists

• Interviews

4

5

6

HYPOTHESIS TEST RESULT

76

Future Hypotheses

• Payers will be supportive of software platform to unify data

• Interviews

4

HYPOTHESIS TEST RESULT

77

Market Size

Young family segment – 30 million

• 51 million children from 0 to 11 years old

• Average 2.1 children per household

• 4 million babies born in the U.S. each year (6 million

pregnancies)- http://www.childstats.gov/americaschildren/tables.asp

April 17th 2012

Scott Greco

Ari Harkov

Alex Morrison

Sarah Shenton

Francois Viargues

MichaelBurke

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:5. 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 & freePromos: 1st free, free if feedback, buy 1 get 1 free, free if FB

post

1. Search (SEO/SEM)2. Social media3. Travel blogs4. Travel/local sites

1. Web developers2. Marketing/PR team3. Local expert

outreach4. Sales force (low end,

in person)

1

3

2Get: 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

5

6 7

8

9

4Version 1 – April 15th 2012

Customer Analysis : • Bakamba has two core customer segments:

– Tourists & Hotel Concierge– Content Providers (Locals)

Testing Methodology:• Customer Segment 1: Tourists

– Interviewed 20 groups of NYC tourists including couples, families, singles, international, and domestic tourists

• Customer Segment 2: Content Providers– Received responses from potential local contributors via CraigsList and our

own personal networks.

Tourists desire more authentic experiences

while traveling.

Tourists will find value in our one-day itineraries &

are willing to pay.

Locals will find it appealing to contribute content to

Bakamba.

Looking good. With only a few exceptions, we learned that this seems to be true.

Inconclusive. While some tourists expressed a high

WTP (>$50), others wanted it to be free.

Validated. We have received over 45

contributions from locals already.

Hypothesis Result

Other Feedback & Insights from Tourist Interviews :– Flexibility – People seemed to want more flexibility in itinerary length, as well

as more alternate options for meals and activities– Greater Customization – Tourists seemed to want to see a greater number of

filters to help them sort itineraries. – Cost- We observed two distinctly different groupings of willingness to pay

(Free-$1.99 / $20-$100)– Additional Benefit Requested - Discounts on activities; better directions to

destination – Logistical Challenges - Foreign users will often not have internet access on

their phones, and many were concerned about the accuracy of our information

– Other Concerns – Many wanted to know more about who the locals writing the itineraries were.

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 & freePromos: 1st free, free if feedback, buy 1 get 1 free, free if FB

post

• Craigslist• Social media• Local blogs

1. Web developers2. Marketing/PR team3. Local expert

outreach4. Sales force (low end,

in person)

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3

2

5

6 7

8

9

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

4

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

Next Steps – Continue evaluating the willingness to pay of Customer Segment 1

(Tourists)– Begin evaluating value proposition for mass distributor channels– Challenge price point by requesting actual payment & offering

different pricing structures

Pulze Day 2Testing the improbable hypotheses

Customer Segments Interviewed

Employees (15+)

- Feel Disconnected from the firm

- Feel like employers don't care

- Data does not reflect the wishes of the employees

- Lack of Feedback

- Have better things to do

HR Manager (3)

- Believe that employee surveys provide enough data

- Feel like there is enough information make decisions

- Believe Management Accountability is a major concern

- Believe that empowering managers for one-to-one conversations is more efficient

Company Sample - 50,000+ employees

Test 1 - Enterprise Employees

Believe annual employee surveys don't matter

Feel disengaged from the strategy making process

Will participate in a survey for a small incentive ($5)

Will participate under favorable circumstances unrelated to monetary compensation

Survey Size: 15Methodology: In person, and over the phone

Test 2 : HR Managers

Did not look for incisive feedback, but for problems in the organization

Saw a problem in the current survey system

Interested in feedback from front-line employees

Survey Size: 3Methodology: In person

Team Pulze

500 < Enterprises

< 2000 Bottom-Up employee

engagement

Software vendors

One time service fee

Sales force

1

3

4 2Key Account management

5

7

8

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

6

Cloud service

Data warehousing

Suppliers

3rd party analytics

R&DMarketing and Manage the

platform

Lead gen

Recruitment

Software developers

HR talent

Research experts

Payroll

marketing

Fixed

Sales

Customer acq.

Talent acq.

Variable

9

Website

What we plan to do tomorrow?

• Test original idea with mid-sized companies 500-2000

employees

• Test original idea with more strategy-focused people

• Test whether HR departments might respond to "What if

surveys showed that most employees provide bogus answers

to their employers' surveys?"

• Test whether middle managers feel that they have

insufficient feedback and would benefit from running their

own feedback surveys

• Test whether employees would like to join anonymously

provide feedback on their companies on a third-party site

• Test whether HR departments would consider paying for

analysis of employee criticism provided to a third-party site

Columbia B7739-002: Advanced Entrepreneurship

YOUR SUPPLIER NETWORK

TEAM MEMBERS Arez Mardoukhi Gopi Sukhavasi Kevin Woolley Ravi Pingli

Degree program and Department/Major

MS, Financial Engineering

MBA Candidate, Columbia Business SchoolB.S, Computer Science

MBA Candidate, Columbia & London Business School, M.S in Finance,B.A in Liberal Arts

MBA Candidate, Columbia Business School

Provide your LinkedIn public profile URL

http://www.linkedin.com/in/arezmardoukhi

http://www.linkedin.com/pub/gopichand-sukhavasi/4/b18/678

http://cl.linkedin.com/pub/kevin-woolley/2a/353/95

http://www.linkedin.com/pub/ravi-pingli/4/30/95a

Are you the subject matter expert (SME) for this team?

No Yes No No

Pick a role you think you most likely will play on this team (Hustler, Hacker, Designer or Product Picker)

Picker Hacker Hustler Designer

Anything interesting we should know about you (be brief)

10 years of experience in Spend management, Accounts Payable, T&E in various Fortune 500 companies.

Over 6 years in Chile and Peru and 3 years in Clean water technology entrepreneurship

Day 1 : Outside of the building

• 21 Interviews with restaurant owners/managerso Upper West Sideo West Villageo New Jerseyo Time Warner Center

Key Findings• No consistent pricing

• Low Volume of Business for small restaurants

• Reliability issues when it comes to small suppliers in terms of delivery time and quality of the product.

• Sales done based on the word of mouth/trade shows/food shows

• Not Organized Industry

• Local restaurants suppliers’ procurement process is a labor-intensive, paper and pencil, time consuming, monotonous routine requiring knowledgeable buyers, capable sellers and heavily word-of-mouth.

YOUR SUPPLIER NETWORK

Chain/Corporate Restaurants

Chain/Corporate Hotels

Sales Companies Distributing to Hotels and Companies

SoftwareMarketing

Sales

Buyers1. Find the best possible suppliers for procuring goods and services. 2. One solution to manage end to end source-to-pay process

Suppliers1. 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

1

3

4 2Partnerships with

Industry Trade shows

Professional network

5

6 7

8

9

Market Size

Type of Business & Experiments

• Type of Business : IT

• Pivoted customer segments into Chain Restaurants, Hotels, Sales companies

• Interviews/Surveys with different customer segments