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Our Initial Team
Sunil Sharma
Program Manager at EMC SalesEWMBA ‘12 - Haas School of Business
Shubhada Hebbar
Product Manager at Lab126 (Amazon)EWMBA ‘12- Haas School of Business
Tony Chang
MS EECS
Jimmy Da
MS EECS
Cindy Alvarez
Director, User Experience, Yammer
Russ Holdstein
Angel Investor
AdvisorsTeam
Week 0: Problem Statement“Yelp for Enterprises”
Enterprises spend a lot of time trying to find right vendors, often unsuccessfully
Introducing : BlynkB
Enterprises
Find right partners for business needs
Vendors
New channel to source deals & build a brand
A unified platform that links enterprises and vendors together to meet specific business needs
Week 0 - Our initial idea:‘Yelp for Enterprises’
Vendors
Small Enterprises
(SE)
MediumEnterprises
(ME)
Large Enterprises
(LE)
Bly
nkB
Enterprises
Small Vendors
(SV)
MediumVendors
(MV)
Large Vendors
(LV)
NO
TBD
YES
Vendors and enterprises seek to establish a long term relationship
Enterprises to publish their requirements
Enterprises to rate vendors
Vendors post their services
Enterprises who wish to find vendors (system integrators and software products) and publish requirements
Vendors (system integrators and software product companies) who will respond to the requirements
Amazon cloud service
Customer Acquisition Cost
Marketing team to sign up enterprises and vendors
Email/WebSocial MediaCold callsExisting procurement and sales relationships
Enterprises
Vendors looking for new avenues to sell their products
1
3
4 25
6
7
89
9
Business model Canvas (Week 0)
Large & SMB Vendors
Large & SMB Enterprises
Reduce the amount of time it takes to find the right product partner
Easily find the true capabilities of vendors
Reduces ambiguity in comparing vendor quotes
Makes it easier to publicize key offerings
Free service
Affiliate business modelSubscription fee based business model for vendors
Week 1 – Small Vendors (SVs) were excited about the platform…
Small Vendors
(SV)
Small Enterprises
(SE)
MediumEnterprises
(ME)
Large Enterprises
(LE)B
lyn
kB
MediumVendors
(MV)
Large Vendors
(LV)
Small Vendors are excited about:• building brand equity • generating leads• willing to pay up to 25%
affiliate fee
NO
TBD
YES
Vendors and enterprises seek to establish a long term relationship
Enterprises who wish to find vendors (system integrators and software products) and publish requirements
Vendors (system integrators and software product companies) who will respond to the requirements
Amazon cloud service
Customer Acquisition Cost
Staff needed to build a customer base including enterprises, product companies and SIs
Email/WebSocial MediaCold callsExisting procurement and sales relationships
Enterprises
Vendors looking for new avenues to sell their products
1
3
4 25
6
7
89
Business model Canvas (Week 1)
Build and maintain platform
Promote platform to new companies
Large & SMB Vendors
Large & SMB Enterprises
Helps shorten the time it takes to find the right product partner
Helps find the true capabilities of a vendor
Reduces ambiguity in comparing vendor quotes
Makes it easier to publicize key offerings
Creates new channels to sell products to larger enterprises since Gartner doesn’t include small companies in its list
Free service
Affiliate business modelSubscription fee based business model for vendors
Week 2 - LVs are not our customers but SVs are…
Small Enterprises
(SE)
MediumEnterprises
(ME)
Large Enterprises
(LE)B
lyn
kB
Small Vendors
(SV)
MediumVendors
(MV)
Large Vendors
(LV)
• Have pre-established sales & distribution channels
• Have visibility and brand awareness
• Obtain leads directly from enterprises
NO
TBD
YES
• Enterprises provide feedback and post requirements
• Vendors post key offerings• Partners are
enterprises
• Suppliers are SMB vendors
• % Cut from the vendors, on deal closing• Subscription fee for vendors• Free for enterprises
• Enterprises, who rate products/services
• SMB vendors looking for new ways to sell
1
3
4 25
6
7
89
SMEs
SMB Vendors
Large Enterprises
WebsiteMobile AppBlogsEmail MarketingCold Calls
Finding new ways to sell
Increased visibility Increased revenue
• Lack of feedback on vendors
• Time spent to find vendors
• Lack confidence in chosen vendor
ConferencesProcurement
• Long term relationships
Business model Canvas (Week 2)
• AWS (Amazon cloud)• Customer Acquisition Cost• Engineering
Large VendorsX
Week 3 – Large companies are not our customers
Large Enterprises
(LE)
Small Enterprises
(SE)
MediumEnterprises
(ME)
Bly
nkB
Small Vendors
(SV)
MediumVendors
(MV)
Large Vendors
(LV)
• Pre-approved list of preferred vendors
• Company policies and legal regulations
• Only trust sources such as Gartner• Difficult to add new vendors
NO
TBD
YES
• Platform• Customer DB
(IP)
• SMB Vendors – Niche content (product details) providers
• SMEs – User generated content (reviews)
• AWS (Amazon cloud)• Customer Acquisition
Cost• Engineering
• % Cut from the vendors, on deal closing• Subscription fee for vendors and
enterprises• Fixed amount / deal for vendors• Free for enterprises
1
3
4 25
6
7
89
* Int’l and Local
• Self Service• Automated services
• Co-creation
• Communities
• Lack of real feedback on vendors
• Time spent to find vendors
• Lack confidence in chosen vendor
• Finding the right partner for a business need
• Procurement
SMB Enterprises
SMB Vendors
Large Enterprises
• Increased visibility Increased revenue
• New ways to sell
Business Model Canvas (Week 3)
• Website• Mobile App• Blogs• Email Marketing• Cold Calls
• Platform Management
• Platform Promotion
X
Week 4: Only Small Businesses are our customers
Small Enterprises
(SE)
MediumEnterprises
(ME)
Large Enterprises
(LE)
Bly
nkB
Small Vendors
(SV)
MediumVendors
(MV)
Large Vendors
(LV)
• Will not use our product for reasons similar to those for large enterprises
• Willing to write reviews
• No regulations• Limited time and
budget
• Will not use our product for reasons similar to those for large vendors
Very Small TAM!!
MEs are not our Customers either!
NO
TBD
YES
• Platform• Customer DB (IP)
• SMB Vendors• Medium Vendors
• SMEs User generated content (reviews)
•Startup Vendors – (Product owners)
•Startups – (Generate content - reviews)
• AWS (Amazon cloud)• Customer Acquisition Cost• Engineering
• Subscription fee• Fixed amount / deal for vendors
• % Cut from the vendors, on deal closing• Free for enterprises
1
3
4 25
6
7
89
*** International & Local
• Self Service• Automated service
• Communities
•Co-creation
Finding the right business partners for tech. product needs
Small Startups*** (5-15 employees)
Startup Vendors***(2-5 year old)
Increased visibility revenue
• Website• Mobile App• Blogs• Email Marketing• Cold Calls• Google Search
Platform:• Management• Promotion
Medium sized businessesX
Business Model Canvas (Week 4)
XX
X
X
XX
X
Sunil Sharma
Program Manager at EMC SalesEWMBA ‘12 - Haas School of Business
Shubhada Hebbar
Product Manager at Lab126 (Amazon)EWMBA ‘12- Haas School of Business
Jimmy Da
MS EECS
Tony Chang
MS EECS
Cindy Alvarez
Director, User Experience, Yammer
Russ Holdstein
Angel Investor
AdvisorsTeam
Week 4: We lost our engineers
Weeks 1-4: Key learningLarge & Medium Companies
• Have enough brand recognition already• Only trust Gartner and Forrester• Have policies against public feedback and
endorsing• Pre-established sales & distribution channelsCustomer Quotes:• “I don’t see any pain in deciding on vendors”• “Don’t want to publicly claim that one vendor is
better than other”• “Not willing to pay a dime unless you can prove
value”• “Side by side vendor comparison of vendors,
including customer reference ‘can’ be very valuable”
• Need brand recognition and sales channels• Limited time and budget for software apps• Willing to try new technology but low WTP• No rules and regulations and comfortable writing
reviews
Weeks 1-4: Key learningSmall Companies
Customer Quotes:• “Would totally use it...sounds like a great idea.
Looking to compare vendors all the time”• “Would love it as it will help in building further
awareness”• “No one good source to find reviews on all products
in a category”
Week 5: PIVOT! - Introducing - BlynkB VRM (Vendor Relationship Management)
Solution: An internal SaaS based Vendor Relationship Mgmt. platform for enterprises
Problem: Most enterprises have a large list of vendors, but no processes to manage that list
Week 5: Users of BlynkB VRM
Purchasing Manager
- Gather feedback easily- Maintain vendors list- Quickly find the true capabilities
BU Manager- Don’t have to deal with Purchasing- Increases transparency- Find the right vendor
HR Manager- Internal vs. external vendor spending
IT Manager- Research Vendors- Manage vendors- Deploy our platform
BlynkB VRM
NO
TBDYES
• Website• Mobile App• Blogs• Email Marketing• Cold Calls• Google Search
• Platform• Customer DB (IP)
•Startup Vendors – (Product owners)
•Startups – (Generate content - reviews)
• AWS (Amazon cloud)• Customer Acquisition Cost• Engineering
• Subscription fee• Fixed amount/deal for
vendors
1
3
4 25
6
7
89
*** International & Local
• Self Service• Automated service
• Communities
•Co-creation
• Finding the right business partners for technology Product needs
Small Startups*** (5-50 employees)
Startup Vendors***(2-5 year old)
Increased visibility revenue
Platform:• Management• Promotion• Manage Ads
Business Model Canvas (Week 5)
• Advertising revenue: Category specific ads
Large & Medium sized companies
• Helps manage long list of vendors
• Reduce time spent searching for tech products
Purchasing Manager
- Maintain vendors list
HR Manager- Vendor spending
IT Manager- Research Vendors
BU Manager- Hate working with Procurement
NO
TBDYES
BlynkB VRM
Week 6: Users of BlynkB VRM
•Website•Blogs• Platform
• Customer DB (IP)
•Startup Vendors – (Product owners)
•Startups – (Generate content - reviews)
• AWS (Amazon cloud)• Customer Acquisition Cost• Engineering
• Subscription fee• Fixed amount/deal for vendors• Advertising revenue
1
3
4 25
6
7
89
*** Int’l & Local
•Self Service•Automated
service•Communities
• Co-creation
• Ability to quickly find the right business partners
Startups*** (15-50 employees)
Startup Vendors***(2-5 year old)
• Increased visibility revenue
Platform:• Development /
Customization• Review
Management• Promotion• Manage Ads• Licensing
Business Model Canvas (Week 6)
Large & Medium sized companies – BU managers, HR, IT/ Procurement
• Large & Medium Co.– BU Managers
• Sales force• Partners• Cold Calls• Prof. Services
• Easier vendor management and discovery of right vendors
• Details of spending on external vendor
• Time savings in on-boarding new vendors
• License Fees
• Personal Assistance
11
22
6
18
16
0
6
21
8
5
5
12
4
8
Purchasing Manager
- Maintain vendors list
BU Manager- Hate working with Procurement
IT Manager- Research Vendors
BlynkB EE
HR Managers are not our Customers!
HR Manager- Use ERP to calculate vendor spending
NO
TBDYES
Week 7: Users of BlynkB VRM
•Website•Blogs• Platform
• Customer DB (IP)
•Startup Vendors – (Product owners)
•Startups – (Generate content - reviews)
• AWS (Amazon cloud)• Customer Acquisition Cost• Engineering
• Subscription fee• Fixed amount/deal for vendors• Advertising revenue
1
3
4 25
6
7
89
*** Int’l & Local
•Self Service•Automated
service•Communities
• Co-creation
• Quickly find the right vendors Startups***
(15-50 employees)
Startup Vendors***(2-5 year old)
• Increased visibility revenue
Platform:• Development /
Customization• Review
Management• Promotion• Manage Ads• Licensing
Business Model Canvas (Week 7)
BU Managers, HR Procurement Dept. Large & Medium sized companies
• Sales force• Partners• Cold Calls• Prof. Services
• Don’t have to deal with Purchasing
• Open info. sharing between BUs and Purchasing
• Details of spending on external vendor
• Easier on-boarding of new vendors
• License Fees
• Personal Assistance
15
22
10
1820
0
10
21
8
5
5
12
710
29
• Large & Medium Co.– BU Managers
Platform:• Development /
Customization• Review
Management• Promotion• Manage Ads
• Personal Assistance
• Co-creation• Licensing
• Platform• Customer DB (IP)
• AWS (Amazon cloud)• Customer Acquisition Cost• Engineering• Legal• Accounting
1
3
4 25
6
7
89
Business Model Canvas (Week 8) – BlynkB VRM
Large & Medium sized companiesProcurement/IT Dept.
• Large & Medium Co.– BU Managers
• Sales force• Partners• Cold Calls• Prof. Services
• Quickly find the right vendors
• Find true potential of vendors
• Don’t have to deal with Purchasing
• License Fees
8
10
9
310
85
12
7
10
Large & Medium sized companies
BU Managers
• Open info. sharing between BUs and Purchasing
• Easier on-boarding of new vendors• Large & Medium
Co.– Procurement
•Website•Blogs•Ads
•Platform•Customer DB
(IP)
•Startup Vendors – (Product owners)
•Startups – (Generate content - reviews)
•AWS (Amazon cloud)•Customer Acquisition Cost•Engineering•Legal•Accounting
• Advertising revenue
1
3
4 25
6
7
89
*** Int’l & Local
•Self Service•Automated
service•Communities•Co-creation of
reviews
• Quickly find the right vendors
• Find true potential of vendors
Startups*** (15-50 employees)
Startup Vendors***(2-5 year old)
• Increased visibility revenue
Platform:•Development•Review
Management•Promotion•Manage Ads
and placement
Business Model Canvas (Week 8) – BlynkB Reviews Platform
23
22
18
22
3
33
5
5
12
• Subscription fee
Decision Flow Diagram Internal Vendor Management Platform
Management
(Decision Maker)
Procurement/IT/CIO
(Buyer)
IT Managers (Recommender)
BU Managers (Influencer)
BU Managers (User)
BU Manager(Has vendor
needs)
IT Manager(Researches
Vendors)
Purchasing(Manage vendors
list)
Office of the CIO
(Approves PO from Vendors)
Selected VendorManages
Contracts
Submits PO for Approval
Looking for a new Vendor
IT Researches & Manages on Vendors
Connects BU with previous
vendors
Looking for a new Vendor
Approval Process Flow
BlynkB EE – Manage Vendors
BU Manager
(Fulfill vendor needs)
IT Manager(Researches
Vendors)
Purchasing(Manage vendors
list)
Manage Vendors
Find Vendors
Review & AddVendors
BlynkB VRM
Large enterprises would like to use this platform:
Improves vendor performance
Improves vendor management process
Identifies risks before they become a costly problem
Increases bargaining power with vendors through the centralized repository
VRM Platform should provide:
Self vendor registration and profile management
Centralized vendor management tool over the web
Risk management by alerting about risky vendors
Reporting tool that can generate reports on vendors
Revenue Model
Company Size Pricing/seat/year (License Fee)
Large (5000+ employees) $249Medium (500 – 5000 employees) $249Small (100-500 employees) $49
TAM: 1.1 B USD
Company Size # of Companies in US Managers Total # of Managers Pricing/seat Revenue
Large (5000+ employees) 2,200 600 1,320,000 $249 $328,680,000 Medium (500 – 5000 employees) 24,269 75 1,820,175 $249 $453,223,575 Small (100-500 employees) 92,386 35 3,233,510 $49 $158,441,990
Total $940,345,565
Company Size # of Cos Procurement Team Size
Total # of Procurement Team
MembersPricing/seat Revenue
Large (5000+ employees) 2,200 40 88,000 $249 $21,912,000Medium (500 – 5000 employees) 24,269 15 364,035 $249 $90,644,715Small (100-500 employees) 92,386 2 184,772 $49 $9,053,828
Total $121,610,543
Source: http://www.census.gov/econ/
Next steps
Hire engineers and build the prototype
Validate the idea with more customers
Identify the sales channels to sell to enterprises