BEEKEEPER From Pivoting Startup to Disrupting
Description: BEEKEEPER From Pivoting Startup to Disrupting Scaleup Presented to: Christian Grossmann and the Board at Beekeeper Presented by: Minghao, Victor, Vishnu, Daniela 20 May 2018 Agenda 1 Problem 2 Recommendation 3 Internal External Analysis 4
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slide1. BEEKEEPER
From Pivoting Startup to Disrupting Scaleup Presented to: Christian Grossmann and the Board at Beekeeper
Presented by: Minghao, Victor, Vishnu, Daniela 20 May 2018<br>
slide2. Agenda 1 Problem
2 Recommendation
3 Internal & External Analysis
4 Strategic Alternatives
5 Implementation
6 Financial Analysis
7 Contingency Plan
8 Conclusion Page 2<br>
slide3. Problem: Beekeeper faces three core issues that need to be overcome going forward 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 3 Lack of
Vertical Focus Financial
Pressure Scalability 1 2 3 Which verticals should you focus on?
How can you achieve profitability?
How can you prepare for further growth?<br>
slide4. Recommendations: Three strategies will allow Beekeeper to overcome the problems and equip the startup for further growth 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 4 Vertical Integration Strategy Geographic Streamlining Restructuring
Program 1 2 3 Lack of
Vertical Focus Financial
Pressure Scalability The identified recommendations tie back into the underlying problems<br>
slide5. Internal Analysis: Beekeeper exhibits strong developed skills but faces organizational challenges that hinder growth 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 5 Strengths Weaknesses Strong mobile solution
Established client base across industries
Strong culture and values
Customization skills Poor integration between sales and engineering teams
Lack of vertical focus
Short runway before next required funding round
Lack of infrastructure and high costs in Zurich<br>
slide6. External Analysis: Beekeeper operates in a promising environment with threats 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 6 Opportunities Threats Increasing mobile adoption globally
More decentralized workforces with low engagement
Increased focus on security of internal communications GDPR in Europe
Increased competition in mobile solutions across verticals
More hacking incidents<br>
slide7. Strategic Alternatives: Six strategies have been considered before determining the optimal path Beekeeper should take 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 7 + Good × Bad<br>
slide8. Implementation (1/3): Vertical Integration Strategy 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 8 What Why How Focus on hospitality, airports, mass rapid transit (MRT), event organizations and NGOs for increased focus You play to your strengths in security and customization while focusing on poorly served verticals Allow current contracts for other verticals to expire and then, transfer customers into standardized options
Develop a standard applications for NGOs, e.g. working with EcoFiltro in Guatemala as a testimonial case
Make the pricing model of the standard application user-based (e.g. USD10 per month)
Continue to offer customized solutions for hospitality and airport clients with focus on security and GDPR compliance
Identify launch customers for MRTs (e.g. SMRT in Singapore)
Customized-solution pricing model: Hosting/customization fee followed by yearly maintenance fees 1 2 3<br>
slide9. Implementation (2/3): Geographic Streamlining 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 9 What Why How Streamline operations geographically with offices in Winterthur, San Francisco and Singapore To reduce costs and have sufficient space for expansion plans and cater to all major geographical markets Identify a suitable location in Winterthur (Switzerland) for establishing a new European HQ and shift the London and Berlin offices for cost reduction reasons
Maintain the HQ in Zurich until the Winterthur office is established and up and running
Set up an office in Singapore with a core mass rapid transit team for serving test customers
Have a sales team for standardized applications in Singapore for event organizations and NGOs 1 2 3<br>
slide10. Implementation (3/3): Restructuring Program 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 10 What Why How Restructure the organization into two customer-centric solution providers by focusing on key verticals To customize a solution for each vertical, communication between engineers and sales staff is key Share the restructuring plans transparently and timely with all employees and arrange small meetings with employees to clarify concerns
Set-up an incentive program for a team-based performance approach
Reduce the amount of HQ “generalists” and introduce a team of engineers, security and sales staff that specialize in a vertical
Organize a team of entry-level sales staff to cater to NGOs and event organizations
Organize a team of experienced engineers and sales staff to cater the customized solutions segment, e.g. hospitality and airports
Create a communication channel to share customer success stories based on key verticals to educate the teams and for marketing usage 1 2 3<br>
slide11. Key Performance Indicators: The following key metrics allow Beekeeper to keep track of the success of the suggested strategies 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 11 Key Performance Indicator Target 1. Number of pre-sales meeting with new key verticals
2. Percentage of sales from key verticals
3. Number of renewal of client contracts from key verticals
4. Cost reduction due to relocation
5. Retention rate of staff
6. Number of customer success stories per vertical 1. 20 per sales person per month
2. Increase from 80% to 92%
3. 70% in standardized solutions, 95% in customized solutions
4. USD1.9 million
5. 95%
6. 3 per vertical p.a.<br>
slide12. Timeline: The following timeline highlights how the suggested strategies should be implemented time-wise 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 12<br>
slide13. Financial Analysis: The suggested geographic streamlining will decrease the costs by approximately $2 million 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 13 Cost Savings:
$1.9M
14% Reduction New Investment Outlook:
$3.9M All numbers are in Million US$<br>
slide14. Financial Analysis: We anticipate 60% expected user growth from the suggested strategies, with a 4x return on investment 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 14 Return of $12M
vs.
$3.9M Investment Over 60% Growth<br>
slide15. Contingency Plan: The anticipated risks underlying the suggested strategies need to be overcome to manage the risk adequately 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 15 Anticipated Risks Contingency 1. Loss of clients from old verticals
2. Poor take-up rate by NGOs and event organizations
3. Loss of staff due to relocation
4. Lack of test customers for MRTs
5. Decrease in motivation of employees due to restructuring 1. Increase the attractiveness of the standardized application (e.g. price incentives)
2. Prepare a strong success story case, e.g. EcoFiltro in Guatemala and Formula1 in Singapore
3. Provide relocation packages and support while adopting a phased approach
4. Approach multiple MRTs simultaneously, e.g. Hong Kong MTR
5. Use success stories to reduce resistance<br>
slide16. Conclusion: The suggested strategies will allow Beekeeper to overcome the identified challenges and equip itself for the future 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 16 Vertical Integration Strategy Geographic Streamlining Restructuring
Program 1 2 3 Lack of
Vertical Focus Financial
Pressure Scalability The identified recommendations tie back into the underlying problems<br>
slide17. THANK YOU
FOR YOUR ATTENTION We welcome any questions you may have. 20 May 2018<br>
From Pivoting Startup to Disrupting Scaleup Presented to: Christian Grossmann and the Board at Beekeeper
Presented by: Minghao, Victor, Vishnu, Daniela 20 May 2018<br>
slide2. Agenda 1 Problem
2 Recommendation
3 Internal & External Analysis
4 Strategic Alternatives
5 Implementation
6 Financial Analysis
7 Contingency Plan
8 Conclusion Page 2<br>
slide3. Problem: Beekeeper faces three core issues that need to be overcome going forward 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 3 Lack of
Vertical Focus Financial
Pressure Scalability 1 2 3 Which verticals should you focus on?
How can you achieve profitability?
How can you prepare for further growth?<br>
slide4. Recommendations: Three strategies will allow Beekeeper to overcome the problems and equip the startup for further growth 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 4 Vertical Integration Strategy Geographic Streamlining Restructuring
Program 1 2 3 Lack of
Vertical Focus Financial
Pressure Scalability The identified recommendations tie back into the underlying problems<br>
slide5. Internal Analysis: Beekeeper exhibits strong developed skills but faces organizational challenges that hinder growth 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 5 Strengths Weaknesses Strong mobile solution
Established client base across industries
Strong culture and values
Customization skills Poor integration between sales and engineering teams
Lack of vertical focus
Short runway before next required funding round
Lack of infrastructure and high costs in Zurich<br>
slide6. External Analysis: Beekeeper operates in a promising environment with threats 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 6 Opportunities Threats Increasing mobile adoption globally
More decentralized workforces with low engagement
Increased focus on security of internal communications GDPR in Europe
Increased competition in mobile solutions across verticals
More hacking incidents<br>
slide7. Strategic Alternatives: Six strategies have been considered before determining the optimal path Beekeeper should take 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 7 + Good × Bad<br>
slide8. Implementation (1/3): Vertical Integration Strategy 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 8 What Why How Focus on hospitality, airports, mass rapid transit (MRT), event organizations and NGOs for increased focus You play to your strengths in security and customization while focusing on poorly served verticals Allow current contracts for other verticals to expire and then, transfer customers into standardized options
Develop a standard applications for NGOs, e.g. working with EcoFiltro in Guatemala as a testimonial case
Make the pricing model of the standard application user-based (e.g. USD10 per month)
Continue to offer customized solutions for hospitality and airport clients with focus on security and GDPR compliance
Identify launch customers for MRTs (e.g. SMRT in Singapore)
Customized-solution pricing model: Hosting/customization fee followed by yearly maintenance fees 1 2 3<br>
slide9. Implementation (2/3): Geographic Streamlining 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 9 What Why How Streamline operations geographically with offices in Winterthur, San Francisco and Singapore To reduce costs and have sufficient space for expansion plans and cater to all major geographical markets Identify a suitable location in Winterthur (Switzerland) for establishing a new European HQ and shift the London and Berlin offices for cost reduction reasons
Maintain the HQ in Zurich until the Winterthur office is established and up and running
Set up an office in Singapore with a core mass rapid transit team for serving test customers
Have a sales team for standardized applications in Singapore for event organizations and NGOs 1 2 3<br>
slide10. Implementation (3/3): Restructuring Program 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 10 What Why How Restructure the organization into two customer-centric solution providers by focusing on key verticals To customize a solution for each vertical, communication between engineers and sales staff is key Share the restructuring plans transparently and timely with all employees and arrange small meetings with employees to clarify concerns
Set-up an incentive program for a team-based performance approach
Reduce the amount of HQ “generalists” and introduce a team of engineers, security and sales staff that specialize in a vertical
Organize a team of entry-level sales staff to cater to NGOs and event organizations
Organize a team of experienced engineers and sales staff to cater the customized solutions segment, e.g. hospitality and airports
Create a communication channel to share customer success stories based on key verticals to educate the teams and for marketing usage 1 2 3<br>
slide11. Key Performance Indicators: The following key metrics allow Beekeeper to keep track of the success of the suggested strategies 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 11 Key Performance Indicator Target 1. Number of pre-sales meeting with new key verticals
2. Percentage of sales from key verticals
3. Number of renewal of client contracts from key verticals
4. Cost reduction due to relocation
5. Retention rate of staff
6. Number of customer success stories per vertical 1. 20 per sales person per month
2. Increase from 80% to 92%
3. 70% in standardized solutions, 95% in customized solutions
4. USD1.9 million
5. 95%
6. 3 per vertical p.a.<br>
slide12. Timeline: The following timeline highlights how the suggested strategies should be implemented time-wise 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 12<br>
slide13. Financial Analysis: The suggested geographic streamlining will decrease the costs by approximately $2 million 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 13 Cost Savings:
$1.9M
14% Reduction New Investment Outlook:
$3.9M All numbers are in Million US$<br>
slide14. Financial Analysis: We anticipate 60% expected user growth from the suggested strategies, with a 4x return on investment 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 14 Return of $12M
vs.
$3.9M Investment Over 60% Growth<br>
slide15. Contingency Plan: The anticipated risks underlying the suggested strategies need to be overcome to manage the risk adequately 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 15 Anticipated Risks Contingency 1. Loss of clients from old verticals
2. Poor take-up rate by NGOs and event organizations
3. Loss of staff due to relocation
4. Lack of test customers for MRTs
5. Decrease in motivation of employees due to restructuring 1. Increase the attractiveness of the standardized application (e.g. price incentives)
2. Prepare a strong success story case, e.g. EcoFiltro in Guatemala and Formula1 in Singapore
3. Provide relocation packages and support while adopting a phased approach
4. Approach multiple MRTs simultaneously, e.g. Hong Kong MTR
5. Use success stories to reduce resistance<br>
slide16. Conclusion: The suggested strategies will allow Beekeeper to overcome the identified challenges and equip itself for the future 8 7 6 5 4 3 2 1 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Page 16 Vertical Integration Strategy Geographic Streamlining Restructuring
Program 1 2 3 Lack of
Vertical Focus Financial
Pressure Scalability The identified recommendations tie back into the underlying problems<br>
slide17. THANK YOU
FOR YOUR ATTENTION We welcome any questions you may have. 20 May 2018<br>