Innovation accounting at BackupAgent v2
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BackupAgent, a cloud backup software vendor based in the Netherlands, utilizes lean startup principles to enhance its business model by measuring feature usage and partner success. Through cohort analysis, it validates the sustainability of partnerships and gathers qualitative data to inform development decisions. The company employs option cards for tracking opportunities and actions, facilitating an agile response to market needs.
Innovation accounting at BackupAgent v2
- 1. Innovation Accounting at BackupAgent (2013) Lean startup principles put to practice Robbert van Geldrop| Founder and CTO 1
- 2. About BackupAgent Vendor of Cloud Backup Software • Based in Delft, The Netherlands • Funded in 2007 by Solid Ventures • Funded in 2013 by Runa Capital No direct sales; exclusive through: • (Hosting) Service Providers • Telcos • Cloud Service Brokers Where are we • Profitable business • 400+ partners in 50+ countries 2
- 3. We build Cloud Backup Software We sell our technology to service providers We apply Scrum and Kanban The key question is always what to build or improve next 3 Build
- 4. We have a lot to measure: • Which features are customers using? • On which platform are they installing it? • Which features can our partners sell best and why? Business model: • How to charge partners? • How much customers are they bringing in? 4 Measure
- 5. We measure software usage through DeskMetrics: • Features • OSes • Demographics We keep track of our install base through license reporting: • Increase of users • Increase of TBs 5 Measure
- 6. We wanted to know if further improvement of our Exchange 2007 plugin would be a good idea: Remember: we interviewed our partners about this too and they confirmed this finding 6 Validation of features and improvements
- 7. 7 Estimation of the opportunity of feature
- 8. ‘A cohort is a group of people who share a common characteristic within a defined period’ Cohorts can teach us about potential to scale and sustainability: The hard part is how to choose your cohort Do it yourself: http://www.alivelearn.net/?p=1240 8 Measure – Cohorts!
- 9. We wanted to validate the sustainability of our partner model: • Recruiting new partners is expensive • Not all of our partners are selling our services successfully A sustainable partner network validates further investment: • Increase marketing • Develop new features faster 9 BackupAgent’s cohorts Cohort analysis shows partnerships are very sustainable over time: This includes churn, so successful partners outgrow churning partners consistently. Invoiced usage fees per cohort of activated partners per Q Metrics validate scaling of marketing effort: • Average Lifetime Value (LTV) = ±12,000 EUR • Cost of Acquisition (COCA) = ±5,500 EUR • 100% recurring revenues
- 10. BackupAgent ALWAYS enriches data with in-depth interviews: • You need to know about cause and reason that hides behind data • These reasons and causes make the data actionable Customer development is the best methodology for this 10 Measure – qualitative data
- 11. Learning is not a system: • BackupAgent is only starting to embed the learning part • It’s the softest side of Lean Startup Active learning can be captured by the Business Model Canvas It’s the process that goes behind making and updating the canvas that really matters Not all learning takes places at a time you plan for it, ideally anyone could instantiate his/her own little iteration 11 Learn
- 12. 12 Learn – BackupAgent’s Canvas
- 13. Your canvas will be a mess if you put all opportunities in the model – so how do you deal with that? We implemented the concept of ‘option cards’ • You draw a ‘mini’-canvas on a card symbolizing your option • You do this for each opportunity • By doing this you can log and track progress on everything The deck of cards get prioritized and actions are agreed on weekly basis 13 Learn – Converting your canvas into actions
- 14. The Option Cards Kanban: 14 Learn – Converting your canvas into actions
- 15. Follow us @BackupAgent facebook.com/BackupAgent youtube.com/user/backupagent linkedin.com/company/backupagent-bv Questions? Thank you for listening Robbert van Geldrop robbert@backupagent.com @rvangeldrop