Data Insights OEP interim submission
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Nickelring Corp has developed a data analytics solution for small and medium enterprises. During the product development phase, they achieved several milestones including developing a system architecture, prototype, website, marketing plan, and financial analysis. Partnerships will be key to success. Next steps include finalizing the product, pricing, partnership agreements, and seeking initial capital.
Data Insights OEP interim submission
- 1. nickelring corp. OEP Interim Submission Team Data Insights 7 July 2012 Confidential
- 2. Executive Summary • Based on our successful market testing and analysis during the OAP phase, we pursued developing the specifics of a data analytics solution for the SME’s as per the OEP guidelines • We understand that our product is complex and requires a longer timeframe to finalise the go-to-market strategy; therefore, we chose to extensively focus on the primary building blocks of the execution plan achieving considerable success as outlined below Key milestones achieved during the OEP phase • Technical components • System architecture – We have developed a detailed solution overview and associated architecture for implementation • Website – We have developed a functional website to enhance our online presence and to support our marketing efforts (www.nickelring.com) • Prototype – We have also developed a basic prototype for the product and market tested with SME’s • Partnership analysis – Partnerships will be key to our success, therefore we identified & initiated contact with a few of the key technical and distribution partners • Marketing plan – Reaching out to the SME’s without a large sales force implies smart marketing and therefore we have spent considerable effort in devising a strong marketing plan • Financial analysis – Finally, we have developed a comprehensive template that will enable us to conduct robust financial analysis as we finalise the different cost and revenue components Confidential
- 3. Business Model Canvas Confidential
- 4. Team composition Name Location Work Core competence Team / Effort experience per month Alessandro Sweden 2 Years Software Engineering (C++, VHDL) Finance / 0.5 Arnaud Tahiti, French 13 Years Marketing & Business development Distribution / 0.5 Polynesia Bharath Singapore 2 Years Software Engineering, Database Tech / 1.0 Administration Deepak Singapore 8 Years Software Engineering, Machine Learning Tech / 1.0 Techniques Filip Antwerp Area, 10 Years Business Consultancy Product / 0.5 Belgium Matej Slovenia, EU 2 Years Software Engineering, System Tech / 0.5 Administrator Munir NC, USA 15 Years PLM, Business Analytics (Data Mining) Product / 0.5 Patrick CA, USA 1 Year Software Engineering Tech / 0.5 Romil New Delhi, 10 Years Internet Marketing & Branding, E- Marketing / 0.5 India commerce and Web development Sajith Singapore 5 years Software Engineering, Data Mining, Tech / 1.0 Semantics Sandeep Singapore 14 years Strategy Consulting Lead / 0.5 Business case development Total – 7 FTE Confidential
- 5. Solution Overview The core process underpinning our system is as outlined below with three key areas of differentiation Ability to connect with multiple Easy user interface data sources to conduct ETL relative to competitors State-of-the-art visualisation for advanced analytics Confidential
- 6. Architecture Overview A comprehensive & scalable system architecture Architecture was whetted by our technical mentor Confidential
- 7. Technology stack We have chosen our technologies that are scalable and provide us with the appropriate platform to develop a competitive solution Confidential
- 8. Partnerships • A partnership is an arrangement where parties agree to cooperate to advance their mutual interests (Source: wikipedia) • Partnerships are a significant strategy used in the current business environment in order to achieve economies of scale, effort, distribution and penetration • Partnerships will be one of the major initiatives we will use at nickelring in order to achieve a fast time-to-market as well as to supplement our organization with best-of-breed capabilities in the technology stack as well as sales and distribution • Partnerships can be classified across the following 2 axes: • Technology Partnerships • Front-end/Presentation Layer • Back-end/Database Layer • Databases • Data Sources (public econometric data, census data, demographic data) • Integration/ETL • Analytics We are pursuing partnerships • Sales/Distribution Partnerships that are the most beneficial to us • Value Added Reseller in terms of Relevance, Fit, • OEM / License • Self Service (Cloud) Overlap, Defensibility and • Affiliate Revenue impact Confidential
- 9. Partnership Evaluation (Analytics) Identify the right partner that can deliver a wide range of standard statistical/analytical functionality upon which we will build. Size of Org/Relevance/Private,Public Potential Benefit R Project Fit/Overlap/defensibility/Revenue MADLib impact Feasibility/Expected Growth Confidential
- 10. Partnership Evaluation (Data Sources) Partners to deliver supplementary data sources based on which we can provide a right application delivery as well as implement demonstrations and application templates Size of Org/Relevance/Private,Public U.S. Bureau Potential Benefit of the Fit/Overlap/defensibility/Revenue Census Ameristat Bloomberg Google Analytics Facebook Insights impact Feasibility/Expected Growth Confidential
- 11. Partnership Evaluation (Databases) What data source/s will we use as our backend? We have to choose from a wide range of choices including existing customer base and ease of implementation/deployment. Size of Org/Relevance/Private,Public Potential Benefit Fit/Overlap/defensibility/Revenue Netezza Teradata MySQL SQL Server Oracle impact Feasibility/Expected Growth Confidential
- 12. Partnership Evaluation (Vizualization) We can partner with technology companies that provide breakthrough visualization platforms. Size of Org/Relevance/Private,Public Potential Benefit Fit/Overlap/defensibility/Revenue Google Maps Google Charts Quantu m GIS Yahoo Tableau Pipes VIDI Choosel impact Feasibility/Expected Growth Confidential
- 13. Partnership Evaluation (ETL/Integration) We can leverage existing open-source or other ETL tools that have a proven track record. It will be idea to use one that can be customized for a good fit with our user- interface. Size of Org/Relevance/Private,Public Potential Benefit Fit/Overlap/defensibility/Revenue Informatica CloverETL Pentaho Apatar Scriptella impact Feasibility/Expected Growth Confidential
- 14. Marketing plan Key Elements • Agile marketing approach – endeavoring to involve prospective customers, distributors and various stakeholders for real-time feedback on product development • Branding and product positioning – created a brand image, logo, colors, feel and setup a website (nickelring.com) with clear value proposition (including a beta signup page) • Demand creation experiments - utilizing set of popular tools such as social media, newsletters, analytics related forums we tested our value proposition • Cost of customer acquisition and selecting right promotional tools – we tested our hypothesis and came up with and ideal set of tools to run a cost-effective marketing campaign Confidential
- 15. Marketing Evaluation (Promotional Tools) Various tools we tested to run our pilot marketing campaigns in the most cost effective manner possible Relevance Potential Benefit Fit/Overlap/defensibility/Revenue SEO (organic) Twitter Facebok SEM Page (Google, BI market Google+ sites) impact Feasibility/Expected Growth Confidential
- 16. Distribution • Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. (Wikipedia) • Distribution is a key element in our entire marketing strategy as it will help us to expand our reach and grow our revenues • Nickelring is addressing Small and Medium Enterprises and should consider the most effective channels but also the most efficient in terms of Customer Acquisition Costs (CAC) • Nickelring will use a combination of direct and indirect channels to deliver its software to potential customers • Direct to end users • Website and marketing campaigns • Affiliate • Channel partners • Marketplaces • VARs (Value Added Reseller) • OEM and ISV • We should look for companies that have a trusted relationship with our end-users : consultants, accountants, banks could be natural partners. Confidential
- 17. Distribution Evaluation (Marketplaces) What type of software application is complimentary to our solution on marketplaces ? We have a good fit with accounting software, ERP, CRM. Size of Org/Relevance Potential Benefit Fit/Overlap/defensibility/Revenue Salesforce Appexchange Google Apps Intuit App Center Microsoft office 365 impact Feasibility/Expected Growth Confidential
- 18. Distribution Evaluation (VARs) Understanding who the end-customer is and who they trust. It requires a strategic planning, a software channel manager, motivation and strong support to succeed. Size of Org/Relevance Potential Benefit Fit/Overlap/defensibility/Revenue Salesforce Keyrus Business & Decision Accounting firms impact Feasibility/Expected Growth Confidential
- 19. Distribution Evaluation (OEM and ISV) OEM and ISV partners will take advantage of our extensibility to embed analytics easily into new application offerings. It integrates with the partner's offering and becomes transparent to the end user. Size of Org/Relevance Potential Benefit Fit/Overlap/defensibility/Revenue Intuit Zoho Salesforce SugarCRM impact Feasibility/Expected Growth Confidential
- 20. Revenue Model (Market Share) • The total 2012 market size for analytics is USD 12 billion • The analytics market is expected to grow at a rate of ~16% • A simple extrapolation assuming that growth remains at 16% or less provides the following projections: 2011 $12.2 billion 2012(+16,4%) $14.2 billion 2013(15%) $16.3 billion 2014(+14%) $18.5 billion 2015(+10%) $20.4 billion • We are in the process of pricing our product and finalising our revenue models • However we expect our primary revenue stream to be subscription based (direct as well as reseller) with additional revenue from associated services (implementation, • We make a conservative estimate of 0.1%-0.5% market share for nickelring in 5 years – giving us total revenues in the range of $20-100 million Confidential
- 21. Cost Analysis We have estimated the cost for the first year of operation since this is the “nearest truth” for our operations and is a basis for requesting funds from potential investors Cost element Annualised cost Comments estimate (USD) Personnel cost $420,000 • We estimate 7 FTE’s will be part of the startup • Average salary – USD 60,000 • Salary range varies from $40k (for programmers) to $ 80k (for senior management) Office rental $24,000 • Office will be based in Singapore • Monthly rental – USD 2,000 Infrastructure costs $49,000 • This includes utilities, hardware, software, hosting charges, etc., • Estimated cost of USD 7k per person Legal costs $30,000 • This includes patents, trademarks, contracts, partnership agreements, etc., Marketing costs $50,000 • This includes cost of branding, enhancing our website and online marketing (SEO, SEM, etc.,) • Costs also cover attending key events, booths and associated costs such as travel & collateral development Other costs $50,000 • This would cover incidental expenses, consulting fees, etc., Total costs $623,000 Confidential
- 22. Next Steps • In order to successfully take the product to market, we are working on the following key activities: • Finalise the prototype & commence V 1.0 product development • Finalise product pricing • Perform detailed analysis of partnerships and prepare an engagement model • Register corporation and logos • Enhance our marketing efforts and engage prospects from our website alpha interests • Seek capital ( we intend to bootstrap as long as we can to increase the value of the company before seeking investment) Confidential