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A V I N A R U M U G A M , J I M F A R R I S , M A R C O G O T T I N I , R A V I G U P T A
LeashMe
LeashMe
Initial Idea
Huge Opportunity 50M NFC handsets in 2011 @ $30/handset = $1.5B 400M NFC handsets in 2013 @ $30/handset = $12B
LeashMe Team Members
Name Background Expertise Role
Avin Arumugam Payments Product/Biz Dev Co-Founder
Jim Farris Real Estate Finance/Strategy Co-Founder
Marco Gottini Consulting Program Mgmt Co-Founder
Ravi Gupta R&D(SW/Biotech)
Agile Product Dev Co-Founder
Business Model Canvas Version 1
Convenience/Usability (Easy to use, never forget)
Manufacturing partner
R&D (Expand with multi-products)Asset sale (Device, app)
Licensing Partner (IP)
Marketing and Sales
COGS (Economies of scale)
Product dev (HW, SW)
Production (Scale, Outsource)
Sales/Mktg (Brand, Prod. awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction (Replacement cost,
Time saving)
Self service (Packaged sales)
Mass Market smart phone owners (e.g.,
Keys, Wallets, Passports)
Direct (Web Sales, DTV)
Indirect (Partner Stores/Wholesaler)
Here’s what we did…
Got out of the building
and talked to customers
Interviewed 40 people in person –eyeball to eyeball
(40 people)
Here’s what we found (reality)…
Learned about our customers Stats on people who lose (35% of tot) and misplace (83%
of tot) stuff; 88% would buy
Pets and kids -> different problem; different customer segment
Opportunity in life-saving situations
3 customer segments: Everyday users
Avid users
Irreplaceable stuff
Teaching Team Feedback:Oren: “Did you say Kids/pets? Really! I think it's a different market/model.”
Business Model Canvas Version 2
Convenience/Usability (Easy to use, never forget)
Manufacturing partner
R&D (Expand with multi-products)Asset sale (Device, app)
Licensing Partner (IP)
Marketing and Sales
COGS (Economies of scale)
Product dev (HW, SW)
Production (Scale, Outsource)
Sales/Mktg (Brand, Prod. awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction (Replacement cost, Time savingAvoidcost by not losing
items)
Self service (Packaged sales)
Mass Market smart
phone owners (e.g.,
Keys, Wallets,
Passports)
Direct (Web Sales, DTV)
Indirect (Partner Stores/Wholesaler)
People who lose stuff or are concerned
about losing stuff and would like to prevent
that
People who misplace stuff and need help to
find it
Corporations that enforce a solution to help employee not
lose company items
Personal assistance/automated services (if adopting a subscription model)
Sales force to target corporations
Subscription service ($X/month for basic service; pay $Y/month to add more devices)
Time Saving (Quickly find
misplaced items)
Customer Support
Support SW capabilities for device
and tags AHA!
Here’s what we did…
Created mockups
Interviewed 20 more people in person using mockups and tags
Investigated competition Bought Click ‘n dig Looked at Cobra, FOFA, EZ-FIND, BiKN, ZOMM
Interviewed people in corporate world IT Manager & IT Security
at Life Technologies Planning manager at BP refinery
Investigated sales channels Talked to NFC technology advisors (phones/tags)
Tech Lead for RFID implementation at Life Technologies CEO of VivoTech NFC team at Paypal (lead/astronomer and all other 5 members) VP of biz dev at Inside Contactless
Started development of the app Created two surveys
(38 people)
Here’s what we found (reality)…
Customers Avid users
Everyday users
Corporations not early adopters
Channels Mass retailers not for early stage markets
In-person Kiosks at Sport Clubs/Communities
3rd party Website/advertising access
LESSON LEARNED Mockups/wireframes are key for interviews
LONG surveys don’t work
VV
X
X
Business Model Canvas Version 3
Convenience/
Usability (Easy to
use, never forget)
Manufacturing
partner
R&D (Expand with multi-products)Asset sale (Device, app)
Everyday users: People who lose stuff
or are concerned about losing stuff and would like to prevent
that
Licensing Partner
(IP)
Specialty
Providers of new
high tech sport
equipment
Marketing and Sales
COGS (Economies of scale)
Customer Support
Support SW
capabilities for device
and tags
Product dev (HW, SW)
Production (Scale,
Outsource)
Sales/Mktg (Brand,
Prod. awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction
(Avoid cost by not
losing items)
Time Saving
(Quickly find
misplaced items)
Self service (Packaged
sales)
Personal
assistance/automated
services (subscription)
Everyday users: People who misplace stuff and need help to
find it
Avid users: corporate employees; company enforces solution to ensure people have
their equip with them
Avid users: sportmen / travellers / hobbists
Direct (Own Website, DTV)
ONLY WHEN MAINSTREAM Indirect
(Partner Stores/Wholesaler)
•ONLY WHEN MAINSTREAM Sales force
to target corporations
In person or kiosks at-Sport Clubs/
Communities/
Indirect - specialized stores (sport/luggage stores;
travel agencies)
Subscription service ($X/month for basic
service; pay $Y/month to add more devices)
Corporations
Here’s what we did…
Talked to advisors Technology industry experts on prototype functionalities
Technical architect at NXP
Biz dev manager and biz dev director at NXP
Head of Mobility at Software Services
HTC mobile platform expert
Talked to insurance providers
Owner of PVI Insurance
Franchise owner of State Farm
Commercial broker at Farmers
Insurance actuary at Liberty Mutual
Talked to apparel manufacturers
VP of Operations at Aviator Nation
Ex Director of Operations at Prada
Head of merchandising at Nike
(21 people)
Here’s what we did… (cont.) Created Integrated financial statements (5 yrs and 1st yr month-to-month)
BoM
Payment Flows
Pricing Model
Surveys (70 responses)
Developed Prototype (iPhone and Android)
(70 people)
Revenue and cost model
Financial projections and valuation
Here’s what we found (reality)…
Insurance providers – not viable channel
Apparel Manufacturers – Alternate channel possibility
LESSON LEARNED Surveys require lots of design time and iterations to be
effective
X
Result of surveys
00.20.40.60.8
1
Lo
cate
Fea
ture
s
Tra
ck
Ch
eck
list
Features
-0.2
-0.1
0
0.1
0.2
Online live
Phone Live in shop
FAQ
Support
-0.8
-0.6
-0.4
-0.2
0
3 tags 5 tags 10 tags
# of tags
0
0.5
1
1.5
2
Price
Business Model Canvas Version 4
Convenience/
Usability (Easy to
use, never forget)
Manufacturing
partner
R&D (Expand with multi-products) Asset sale (Application & Tags)
Everyday users: People who lose stuff
or are concerned about losing stuff and would like to prevent
that
Subscription service ($X/month for basic
service; pay $Y/month to add more devices)
Licensing Partner
(IP)
Specialty
Providers of new
high tech sport
equipment
Marketing and Sales
COGS (Economies of scale)
Customer Support
Support SW
capabilities for device
and tags
Product dev (HW, SW)
Production
(Scale, Outsource)
Sales/Mktg
(Brand, Prod.
awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction
(Avoid cost by not
losing items)
Time Saving
(Quickly find
misplaced items)
Self service (Packaged
sales)
Personal
assistance/automated
services (subscription)
Everyday users: People who misplace stuff and need help to
find it
Avid users: corporate employees; company enforces solution to ensure people have
their equip with them
Avid users: sportmen / travellers / hobbists
Direct (Own Website, DTV)Indirect (3rd Party
Retailers)
ONLY WHEN MAINSTREAM Indirect
(Partner Stores/ Wholesaler)
Sales force to target corporations
In person or kiosks at-Sport Clubs/Communities
Indirect - specialized stores (sport/luggage stores;
travel agencies)
Application Sales (Item Vendor pays for the tag;
eg wallet, bag, shades, watch)
Apparel Manufacturers
Possible pivot (Monetization of LeashMe Technology)
Replacement of lost items being the first notified party of lost item of importance through
LeashMe technology
Register items with LeashMe including picture of the item
Prevent item loss thanks to LeashMe
If item is lost facilitate replacement items of same/similar/better quality at lowest possible price via Amazon, eBay, etc
Monetize by revenue share if item is purchased
Back of the envelope calculation
1,000,000 items (tags)
20% items lost/year
$50/item
TOT value: $10,000,000
2% replacement commission
TOT revenue: $200,000
10,000,000 items (tags)
30% items lost/year
$100/item
TOT value: $300,000,000
3% replacement commission
TOT revenue: $9,000,000
50,000,000 items (tags)
35% items lost/year
$150/item
TOT value: $2,625,000,000
3.5% replacement commission
TOT revenue: $91,875,000
Financial analysis
Possible pivot Cont. (Promotion/Distribution of LeashMe Tags)
Partnership with CC companies to help keep track of high value items
Discussed with PM @ AMEX and Cap One about complementing insurance program with LeashMe
Won’t work for all top claim items (needs tag re-engineering)
Need a collaborative financial analysis to prove feasibility
AMEX moving into mobile apps with SERVE so possible good timing
Evolution of LeashMe Business Model Canvas
Business Model Canvas Version 1
Convenience/Usability (Easy to
use, never forget)
Manufacturing partner
R&D (Expand with multi-products)Asset sale (Device, app)
Licensing Partner (IP)
Marketing and Sales
COGS (Economies of scale)
Product dev (HW, SW)
Production (Scale, Outsource)
Sales/Mktg(Brand, Prod.
awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction (Replacement
cost, Time saving)
Self service (Packaged sales)
Mass Market smart phone owners
(e.g., Keys, Wallets, Passports)
Direct (Web Sales, DTV)
Indirect (Partner Stores/Wholesaler)
Business Model Canvas Version 2
Convenience/Usability (Easy to
use, never forget)
Manufacturing partner
R&D (Expand with multi-products)Asset sale (Device, app)
Licensing Partner (IP)
Marketing and Sales
COGS (Economies of scale)
Product dev (HW, SW)
Production (Scale, Outsource)
Sales/Mktg(Brand, Prod.
awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction (Replacement
cost, Time savingAvoid cost by
not losing items)
Self service (Packaged sales)
Mass Market smart
phone owners
(e.g., Keys, Wallets,
Passports)
Direct (Web Sales, DTV)
Indirect (Partner Stores/Wholesaler)
People who lose stuff or are concerned
about losing stuff and would like to prevent
that
People who misplace stuff and need help to
find it
Corporations that enforce a solution to help employee not
lose company items
Personal assistance/automated services (if adopting a subscription model)
Sales force to target corporations
Subscription service ($X/month for basic service; pay $Y/month to add more devices)
Time Saving (Quickly find
misplaced items)
Customer Support
Support SW capabilities for device
and tags
Business Model Canvas Version 3
Convenience/
Usability (Easy to
use, never forget)
Manufacturing
partner
R&D (Expand with multi-products)Asset sale (Device, app)
Everyday users: People who lose stuff
or are concerned about losing stuff and would like to prevent
that
Licensing Partner
(IP)
Specialty
Providers of new
high tech sport
equipment
Marketing and Sales
COGS (Economies of scale)
Customer Support
Support SW
capabilities for device
and tags
Product dev (HW, SW)
Production
(Scale, Outsource)
Sales/Mktg
(Brand, Prod.
awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction
(Avoid cost by not
losing items)
Time Saving
(Quickly find
misplaced items)
Self service (Packaged
sales)
Personal
assistance/automated
services (subscription)
Everyday users: People who misplace stuff and need help to
find it
Avid users: corporate employees; company enforces solution to ensure people have
their equip with them
Avid users: sportmen / travellers / hobbists
Direct (Own Website, DTV)
ONLY WHEN MAINSTREAM Indirect
(Partner Stores/Wholesaler)
•ONLY WHEN MAINSTREAM Sales force
to target corporations
In person or kiosks at-Sport Clubs/
Communities/
Indirect - specialized stores (sport/luggage stores;
travel agencies)
Subscription service ($X/month for basic
service; pay $Y/month to add more devices)
Corporations
Business Model Canvas Version 4
Convenience/
Usability (Easy to
use, never forget)
Manufacturing
partner
R&D (Expand with multi-products) Asset sale (Application & Tags)
Everyday users: People who lose stuff
or are concerned about losing stuff and would like to prevent
that
Subscription service ($X/month for basic
service; pay $Y/month to add more devices)
Licensing Partner
(IP)
Specialty
Providers of new
high tech sport
equipment
Marketing and Sales
COGS (Economies of scale)
Customer Support
Support SW
capabilities for device
and tags
Product dev (HW, SW)
Production
(Scale, Outsource)
Sales/Mktg
(Brand, Prod.
awareness)
Financial (Funding)
R&D Resources (Design, Dev, IP)
Support
Cost reduction
(Avoid cost by not
losing items)
Time Saving
(Quickly find
misplaced items)
Self service (Packaged
sales)
Personal
assistance/automated
services (subscription)
Everyday users: People who misplace stuff and need help to
find it
Avid users: corporate employees; company enforces solution to ensure people have
their equip with them
Avid users: sportmen / travellers / hobbists
Direct (Own Website, DTV)Indirect (3rd Party
Retailers)
ONLY WHEN MAINSTREAM Indirect
(Partner Stores/ Wholesaler)
Sales force to target corporations
In person or kiosks at-Sport Clubs/Communities
Indirect - specialized stores (sport/luggage stores;
travel agencies)
Application Sales (Item Vendor pays for the tag;
eg wallet, bag, shades, watch)
Apparel Manufacturers
LeashMe
Thank you to the teaching team, mentors, TA, and all the advisors who helped us
during our journey!