Blynk b final 2012 berkeley
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BlynkB began as "Yelp for technology products" to help enterprises find vendors. However, they found that large enterprises were not interested and pivoted to focus on small businesses. After learning small businesses also would not pay, BlynkB pivoted again to an internal vendor relationship management platform called BlynkB VRM to help enterprises manage their vendor lists. They are now targeting purchasing managers at large and medium enterprises as their main customers.
Blynk b final 2012 berkeley
- 1. BlynkB “Angie‟s List for technology products” Customers (Enterprises): 87 Survey Respondents: 48
- 2. The beginning of BlynkB
- 3. Our Initial Team Team Advisors Sunil Sharma Cindy Alvarez Program Manager at EMC Sales Director, User Experience, Yammer EWMBA ‘12 - Haas School of Business Shubhada Hebbar Russ Holdstein Product Manager at Lab126 (Amazon) Angel Investor EWMBA ‘12- Haas School of Business Tony Chang MS EECS Jimmy Da MS EECS
- 4. Week 0: Problem Statement “Yelp for Enterprises” Enterprises spend a lot of time trying to find right vendors, often unsuccessfully
- 5. Introducing : BlynkB A unified platform that links enterprises and vendors together to meet specific business needs Enterprises Vendors Find right partners for New channel to source business needs deals & build a brand
- 6. We vetted our idea against a diverse group of customers
- 7. Customers interviewed Large companies Small Mid sized companies companies
- 8. Week 0 - Our initial idea: „Yelp for Enterprises‟ Large Large Enterprises Vendors (LE) (LV) BlynkB Medium Medium Enterprises Vendors Vendors Enterprises (ME) (MV) Small Small Enterprises Vendors (SE) (SV) NO YES TBD
- 9. Business model Canvas (Week 0) 9 Enterprises to publish their requirements Reduce the amount of time it takes to find the Vendors and Enterprises to rate right product partner enterprises seek to Enterprises who wish vendors establish a long term to find vendors (system Easily find the true relationship integrators and Vendors post their capabilities of vendors software products) and services Reduces ambiguity in Large & SMB publish requirements comparing vendor Vendors quotes Vendors (system Makes it easier to Large & SMB integrators and publicize key offerings Enterprises software product companies) who will Enterprises Email/Web respond to the Social Media requirements Vendors looking for Cold calls new avenues to sell Existing procurement their products and sales relationships Amazon cloud service Affiliate business model Subscription fee based business model for Customer Acquisition Cost vendors Marketing team to sign up enterprises and vendors Free service
- 10. Week 1 – Small Vendors (SVs) were excited about the platform… NO Large Large YES Enterprises Vendors TBD (LE) BlynkB (LV) Medium Medium Enterprises Vendors (ME) (MV) Small Small Small Vendors are excited about: • building brand equity Enterprises Vendors • generating leads (SE) (SV) • willing to pay up to 25% affiliate fee
- 11. Business model Canvas (Week 1) Helps shorten the time it takes to find the right Vendors and Build and maintain platform product partner enterprises seek to Enterprises who wish establish a long term to find vendors (system Promote platform to new Helps find the true relationship integrators and companies capabilities of a vendor software products) and Reduces ambiguity in Large & SMB publish requirements comparing vendor Vendors quotes Vendors (system Makes it easier to Large & SMB integrators and publicize key offerings Enterprises software product companies) who will Enterprises Email/Web Creates new channels respond to the to sell products to Social Media requirements Vendors looking for Cold calls larger enterprises new avenues to sell since Gartner doesn’t Existing procurement their products include small and sales relationships companies in its list Amazon cloud service Affiliate business model Subscription fee based business model for Customer Acquisition Cost vendors Staff needed to build a customer base including enterprises, product companies and SIs Free service
- 12. Week 2 - LVs are not our customers but SVs are… Large • Have pre-established sales & Large distribution channels Enterprises Vendors • Have visibility and brand awareness (LE) (LV) • Obtain leads directly from enterprises BlynkB Medium Medium Enterprises Vendors (ME) (MV) Small Small Enterprises Vendors (SE) (SV) NO YES TBD
- 13. Business model Canvas (Week 2) • Enterprises provide feedback • Long term and post • Lack of feedback relationships requirements on vendors SMEs • Vendors post key • Time spent to offerings find vendors • Partners are SMB Vendors • Lack confidence enterprises in chosen vendor Large Enterprises • Suppliers are X Website SMB vendors Finding new ways Mobile App Large Vendors • Enterprises, who to sell Blogs rate Email Marketing products/services Increased visibility Cold Calls • SMB vendors Increased looking for new revenue Conferences ways to sell Procurement • AWS (Amazon cloud) • Customer Acquisition Cost • % Cut from the vendors, on deal closing • Engineering • Subscription fee for vendors • Free for enterprises
- 14. Week 3 – Large companies are not our customers • Pre-approved list of preferred vendors Large Large • Company policies and legal regulations Enterprises Vendors • Only trust sources such as Gartner • Difficult to add new vendors (LE) (LV) BlynkB Medium Medium Enterprises Vendors (ME) (MV) Small Small Enterprises Vendors NO (SE) (SV) YES TBD
- 15. Business Model Canvas (Week 3) • Self Service • Platform • Lack of real • Automated services Management feedback on • Communities SMB Enterprises • Platform vendors • SMB Vendors Promotion • Time spent to • Co-creation SMB Vendors – Niche find vendors • Lack confidence X content (product in chosen vendor details) • Finding the right Large Enterprises partner for a • Website providers • Mobile App business need • Blogs • SMEs – User • Email Marketing • Platform • Increased generated • Cold Calls • Customer DB visibility content (reviews) (IP) Increased • Procurement * Int’l and Local revenue • New ways to sell • AWS (Amazon cloud) • % Cut from the vendors, on deal closing • Customer Acquisition • Subscription fee for vendors and Cost enterprises • Engineering • Fixed amount / deal for vendors • Free for enterprises
- 16. Week 4: Only Small Businesses are our customers MEs are not our Customers either! Large Large Enterprises Vendors (LE) (LV) BlynkB • Will not use our product Medium Medium • Will not use our for reasons similar to product for reasons those for large Enterprises Vendors similar to those for enterprises (ME) (MV) large vendors • Willing to write reviews Small Small • No regulations • Limited time and Enterprises Vendors budget (SE) (SV) NO YES Very Small TAM!! TBD
- 17. Survey Results – SEs: Willingness to write reviews 28% 34% 10% 28%
- 18. Research so far shows – Small Companies will use our platform Small Enterprises Small Vendors
- 19. Business Model Canvas (Week 4) X • SMB Vendors Platform: • Self Service • Medium Vendors • Management • Automated service Small Startups*** • Promotion Finding the right • Communities (5-15 employees) • SMEs User business partners • Co-creation X generated content (reviews) for tech. product needs Startup Vendors*** (2-5 year old) X • Startup Vendors Medium sized – (Product owners) Increased visibility • Website businesses revenue • Startups – • Platform • Mobile App (Generate content • Customer DB (IP) • Blogs - reviews) • Email Marketing *** International • Cold Calls & Local • Google Search • Subscription fee • AWS (Amazon cloud) • Fixed amount / deal for vendors • Customer Acquisition Cost • Engineering X • % Cut from the vendors, on deal closing • Free for enterprises
- 20. Week 4: We lost our engineers Team Advisors Sunil Sharma Cindy Alvarez Program Manager at EMC Sales Director, User Experience, Yammer EWMBA ‘12 - Haas School of Business Shubhada Hebbar Russ Holdstein Product Manager at Lab126 (Amazon) Angel Investor EWMBA ‘12- Haas School of Business Tony Chang MS EECS Jimmy Da MS EECS
- 21. Weeks 1-4: Key learning Large & Medium Companies • Have enough brand recognition already • Only trust Gartner and Forrester • Have policies against public feedback and endorsing • Pre-established sales & distribution channels Customer 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”
- 22. Weeks 1-4: Key learning Small Companies • 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 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”
- 23. Week 5: PIVOT! - Introducing - BlynkB VRM (Vendor Relationship Management) Problem: Most enterprises have a large list of vendors, but no processes to manage that list Solution: An internal SaaS based Vendor Relationship Mgmt. platform for enterprises
- 24. Week 5: Users of BlynkB VRM BlynkB VRM NO YES TBD
- 25. Business Model Canvas (Week 5) Platform: • Finding the right • Self Service • Management business partners • Automated service Small Startups*** • Promotion for technology • Communities (5-50 employees) • Manage Ads Product needs • Co-creation • Startup Vendors • Reduce time spent Startup Vendors*** – (Product owners) searching for tech (2-5 year old) products • Startups – (Generate content - reviews) • Website Large & Medium Increased visibility • Platform revenue • Mobile App sized companies • Customer DB (IP) • Blogs • Email Marketing • Helps manage • Cold Calls *** International long list of vendors • Google Search & Local • Subscription fee • AWS (Amazon cloud) • Fixed amount/deal for • Customer Acquisition Cost vendors • Engineering • Advertising revenue: Category specific ads
- 26. Week 6: Users of BlynkB VRM Purchasing Manager BU Manager - Hate working with - Maintain vendors Procurement list BlynkB VRM HR Manager IT Manager - Vendor spending - Research Vendors NO YES TBD
- 27. Business Model Canvas (Week 6) 11 16 18 Platform: • Development / • Self Service • Startup Vendors – Customization • Ability to quickly • Automated service Startups*** (Product owners) • Review find the right • Communities (15-50 employees) Management business partners • Startups – • Promotion • Personal Assistance 21 (Generate content - • Manage Ads 12 • Increased visibility Startup Vendors*** reviews) • Co-creation • Licensing revenue (2-5 year old) • Easier vendor Large & Medium • Large & Medium management and Co.– BU Managers sized companies – discovery of right BU managers, HR, vendors • Website • Platform • Blogs 5 IT/ Procurement • Details of spending • Customer DB (IP) on external vendor • Sales force 6 • Time savings in 4 on-boarding new • Partners 8 *** Int’l & Local 5 • Cold Calls vendors 8 • Prof. Services 0 • Subscription fee 22 • AWS (Amazon cloud) • Fixed amount/deal for vendors • Customer Acquisition Cost • Advertising revenue • Engineering • License Fees 6
- 28. Week 7: Users of BlynkB VRM HR Managers are not our Customers! NO YES TBD Purchasing BU Manager Manager - Hate working with - Maintain vendors Procurement list BlynkB EE HR Manager IT Manager - Use ERP to calculate - Research Vendors vendor spending
- 29. Business Model Canvas (Week 7) 29 18 Platform: 15 20 • Development / • Quickly find the • Self Service Customization Startups*** • Startup Vendors – • Review right vendors • Automated service (Product owners) • Communities (15-50 employees) Management • Startups – • Increased visibility 21 • Promotion • Personal Assistance revenue (Generate content - • Manage Ads 12 Startup Vendors*** reviews) • Licensing • Co-creation • Don’t have to deal (2-5 year old) with Purchasing • Open info. sharing BU Managers, HR • Large & Medium between BUs and Procurement Dept. Purchasing Large & Medium Co.– BU Managers • Website • Platform • Details of spending • Blogs 5 sized companies on external vendor • Customer DB (IP) • Easier on-boarding • Sales force 10 7 of new vendors • Partners 8 5 10 • Cold Calls • Prof. Services *** Int’l & Local 0 • Subscription fee 22 • AWS (Amazon cloud) • Fixed amount/deal for vendors • Customer Acquisition Cost • Advertising revenue • Engineering • License Fees 10
- 30. Business Model Canvas (Week 8) – BlynkB VRM 8 9 Platform: 12 • Development / Customization • Review • Quickly find the Large & Medium Management right vendors • Personal sized companies • Large & Medium • Promotion • Find true potential Assistance Co.– BU Managers • Manage Ads of vendors • Co-creation BU Managers • Don’t have to deal • Licensing with Purchasing • Open info. sharing Large & Medium 7 between BUs and sized companies Purchasing Procurement/IT • Easier on- • Sales force Dept. • Platform boarding of new • Partners • Large & Medium • Customer DB (IP) vendors • Cold Calls Co.– Procurement • Prof. Services 10 5 8 10 • AWS (Amazon cloud) 3 • Customer Acquisition Cost • License Fees 10 • Engineering • Legal • Accounting
- 31. Business Model Canvas (Week 8) – BlynkB Reviews Platform Platform: 23 22 • Development • Self Service Startups*** • Startup Vendors – • Review • Quickly find the • Automated service (Product owners) Management 12 (15-50 employees) right vendors • Communities • Startups – • Promotion • Find true potential • Co-creation of 33 (Generate content - • Manage Ads and of vendors reviews reviews) placement Startup Vendors*** 18 (2-5 year old) • Increased visibility revenue • Website • Platform • Customer DB (IP) • Blogs 5 • Ads 5 *** Int’l & Local 3 • Advertising revenue • AWS (Amazon cloud) • Customer Acquisition Cost 22 • Engineering • Legal • Subscription fee • Accounting
- 32. Decision Flow Diagram Internal Vendor Management Platform Management (Decision Maker) Procurement/IT/CIO (Buyer) IT Managers (Recommender) BU Managers (Influencer) BU Managers (User)
- 33. Approval Process Flow Looking for a IT Manager new Vendor (Researches Vendors) IT Researches & Manages on Vendors Office of the CIO (Approves PO from Vendors) BU Manager (Has vendor needs) Submits PO for Approval Connects BU with previous vendors Looking for a Purchasing Selected new Vendor (Manage vendors list) Manages Vendor Contracts
- 34. BlynkB EE – Manage Vendors IT Manager (Researches Vendors) Review & Add Vendors BU Manager Find (Fulfill vendor Vendors BlynkB VRM needs) Manage Vendors Purchasing (Manage vendors list)
- 35. Large enterprises would like to use this platform: Improves vendor performance Improves vendor management process Increases bargaining power with vendors through the centralized repository Identifies risks before they become a costly problem
- 36. VRM Platform should provide: Self vendor registration and profile management Centralized vendor management tool over the web Reporting tool that can generate reports on vendors Risk management by alerting about risky vendors
- 37. Revenue Model Company Size Pricing/seat/year (License Fee) Large (5000+ employees) $249 Medium (500 – 5000 employees) $249 Small (100-500 employees) $49
- 38. TAM: 1.1 B USD # of Companies Company Size Managers Total # of Managers Pricing/seat Revenue in US Large (5000+ 2,200 600 1,320,000 $249 $328,680,000 employees) Medium (500 – 5000 24,269 75 1,820,175 $249 $453,223,575 employees) Small (100-500 92,386 35 3,233,510 $49 $158,441,990 employees) Total $940,345,565 Total # of Procurement Company Size # of Cos Procurement Team Pricing/seat Revenue Team Size Members Large (5000+ employees) 2,200 40 88,000 $249 $21,912,000 Medium (500 – 5000 employees) 24,269 15 364,035 $249 $90,644,715 Small (100-500 employees) 92,386 2 184,772 $49 $9,053,828 Total $121,610,543 Source: http://www.census.gov/econ/
- 40. Wireframes – BlynkB EE
- 41. Next steps Hire engineers and build the prototype Validate the idea with more customers Identify the sales channels to sell to enterprises
- 42. Questions
Editor's Notes
- #10: Talk about slides: 1. 2. 7, 8, 9
- #36: Improves Vendor Performance Suppliers make sure to provide best service because of this toolImproves Vendor management processHelps decide whether to renew a contract with a vendor Improves bargaining power on deals with suppliers Reviews scores can be used for negotiation to bring down pricesHelps get bulk discounts if other BUs are using a vendor at the same time Identify Risks Helps identify supplier performance and quality before it becomes a costly problemCentralized repository To collect companywide feedback on vendors
- #37: Improves Vendor Performance Suppliers make sure to provide best service because of this toolImproves Vendor management processHelps decide whether to renew a contract with a vendor Improves bargaining power on deals with suppliers Reviews scores can be used for negotiation to bring down pricesHelps get bulk discounts if other BUs are using a vendor at the same time Identify Risks Helps identify supplier performance and quality before it becomes a costly problemCentralized repository To collect companywide feedback on vendors