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1 Chase Corbridge, Mike Wille, Jordan Furniss, Taylor Moss
Customers Interviewed:
2
Pain
3
Solution
Tech comes to home only to diagnose
problem
Business model canvas construction
5
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
No.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Tech comes to home only to diagnose
problem
Business model canvas construction
Not profitable
7
Pain
Customers Interviewed:
8
Solution
9
Tech comes to home only to diagnose
problem
Business model canvas construction
Not financially feasible with cost
structure / revenue stream
Diagnose auto body repairs with picture uploaded to web for
bid
Visit 10 local auto body shops
Too difficult to accurately assess
damage from a photo
Interviewed:
10
Re-Interviewed: Shadowed:
15-90 minutes per estimate
3-4 every day
11
Pain
12
Interviews Confirming Pain :
13
Solution
14
Our Customer
Shops Interviewed:
15
Customer Amount From Date
$895.85 Geico 7 Nov 2011
Richards, John $5,336.71 State Farm 1 Nov 2011
Petersen, Sco? $2,986.28 All State 26 Oct 2011
$7,542.99 Geico 25 Oct 2011
Liddle, Steve $627.66 Bear River 25 Oct 2011
Corbridge, Chase $1,294.45 State Farm 22 Oct 2011
Brown, Stephanie $519.07 Progressive 15 Oct 2011
furnissj
Wille, Mike
Smith, John
Jordan Furniss [email protected]
Join AutoBid Plus Account seTngs
Sign out
Customer Amount From Date
Smith, John $895.85 Geico 7 Nov 2011
Preliminary EsWmate Vehicle: 1999 SUBA Legacy L 4D SED 4-‐2.2L-‐FI Black Customer: SMITH, JOHN Line OperaWon DescripWon Qty Extended Labor Paint
Price $ 1 REAR BUMPER 1.0 2 R&I bumper 1.0 3 Bumper 1.0 2.4
Category Basis Rate Cost Body Labor 2.0 hrs @ $42/hr 84.00 Paint 8.0 hrs @ $42/hr 302.44 Grand Total
386.44
furnissj
Original
Import To Audatex
furnissj
ImporWng… EsOmate
Successfully Imported!
View in Audatex
19
Tech comes to home to diagnose
maintenance need/collision repair
Business model canvas construction
Not financially feasible with cost
structure / revenue stream
Diagnose auto body repairs with picture uploaded to web for
bid
Visit 10 local auto body shops
Too many variables that bids can’t be given from a photo
SaaS that can convert between all major
estimating software
Shadowed body shops and created a MVP
MVP solves a huge headache for the
shops!
Yearly
$540,000,000
20
Time spent by employees re-entering bids
300 hours/year shop average 60,000 US body repair shops
21
$2.5 M
$2.5 M
$1 M
This is wonderful! –Owner, Sergio Martins
When can we start using this? –Owner, James Nichols
This is a serious thing for the auto industry. –Owner, Ray Banks
8 Commitments 3 States
22
Shop Owners Interviewed: States:
23
315 shops 116 shops 85 shops 256 shops
24
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
No.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Auto body shops
Monthly recurring
fee
*Sales groups
*Direct sales
Personal account
reps Time saving
Software platform
*Signing up clients *Developing lean SaaS
Eliminate human error
Hosting and Development
Increase Productivity
APU Solutions
Pay per use
Estimating Software: *Audatex
*CCC *Mitchell
$81 Million / year Largest 10%
$199/month * 34,000 shops
$816 Million / year North America, Europe, China
$199/month * 340,000 shops
$1.5 Billion / year Worldwide
$199/month * 625,000 shops
TAM
SAM
Target Market
25
26
Lessons Learned Build an MVP asap
Shadow to Learn
Fail Fast
Flaws cannot be Hidden in the Canvas
27
Taylor Moss – VP of Sales / front end web developer • Klymit • TruConnect Mobile • Oak Strategy Partners
Mike Wille - CTO • Bamboo Forever • Raging Bull Marketing • Platinum Protection
Jordan Furniss - COO • Vivint • Façade Clothing • Dowser
Chase Corbridge – CEO • Security One • Bulls Eye Pest Control • Incite Marketing
Advisors Scott Petersen-Industry Advisor
Robert Wille- Technical Advisor
James Nichols- Industry Expert
Peter Hamilton – Programmer RoR
28 Chase Corbridge, Mike Wille, Jordan Furniss, Taylor Moss
29
“The Big 3” There are presently five companies in the United States that sell Estimatics: CCC, Mitchell, Audatex, Web-Est LLC (“Web-Est”), and Applied Computer Resources, but the three major
competitors in the Estimatics market today are CCC, Audatex and Mitchell, which collectively hold the lion’s share of the
market — approximately 99% — thus earning the nickname, the “Big Three.”
From the FTC’s documentation of their case against CCC. http://www.ftc.gov/os/caselist/
0810155/090309cccmitchellpublicopinion.pdf
30
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2012 2013 2014 2015 2016
Sales
COGS
Gross Profit
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2012 2013 2014 2015 2016
Sales
Gross Profit
Net Income
31
The CIECA suite of exchange standards/messages are based on XML, eXtensible Markup Language. The strength of XML is that it provides a generic way to process data on the internet and an efficient way to transfer data between applications and business partners. CIECA refers to these standards/messages as the BMS (Business Message Specification). In the Collision Repair Industry, CIECA BMS/XML provides a foundation for real-time exchange of data between repairers, insurers, car rental companies, parts & materials providers, and more. Implementing the BMS standards within the collision repair industry results in more efficiencies, consistencies, cost savings, and vehicle owner satisfaction - saving the industry time, effort, money, and customers.
The BMS/XML includes messages for transactions relative to Vehicle Damage, Glass, Rental, Salvage Assignments, Estimates, Salvage Dispositions, Attachments (images), Parts and Materials Procurement, Repair Status, Authorizations, Invoicing & Statements, Rental Locations, and Subrogation. Twice annually CIECA produces a Release Package which includes the BMS, the XML schema, and the Code Lists. This provides developers and business partners with predictable systems development cycles
http://www.youtube.com/watch?feature=player_embedded&v=PwL3FnRBHtQ
32
SEMA Show takes place October 30 - November 2, 2012 at the Las Vegas Convention Center.
The SEMA Show is the premier automotive specialty products trade event in the world. It draws the industry’s brightest minds and hottest products to one place, the Las Vegas Convention Center. In addition, the SEMA Show provides attendees with educational seminars, product demonstrations, special events, networking opportunities and more.
SEMA Show 2011 drew more than 60,000 domestic and international buyers. The displays are segmented into 12 sections, and a New Products Showcase featured nearly 1,500 newly introduced parts, tools and components. In addition, the SEMA Show provides attendees with educational seminars, product demonstrations, special events, networking opportunities and more…
33
APU Solutions is the technology leader for the insurance, collision-repair and alternative parts-supply industries.
APU's web-based network provides nationwide parts availability, quality, pricing and procurement, plus tools to track and manage Alternative Parts Utilization.
• PartsNetwork
• SubroNetwork
• TotalLossNetwork
• DataNetwork
34
Employee work time spent on entering estimates
* 50 min/bid * 30 bids/month = 25 hours/month
* 25 hours * 12 months/year = 300 hours/year
* $30/hour * 300 hours = $9,000 year per shop
* $9,000/shop * 60,000 shops = $540,000,000
35
Specifications: Estimating industry just beginning to embrace SaaS estimating platforms. Wide open spaces for SaaS solutions that improve the functionality of these estimating platforms.
Peter Hamilton – Back-end engineer 140 hours to working MVP 1-2 months Ruby on Rails development of the XML code