Beekeeper: from startup to scaleup LUSEM Consulting Group Lund University School of Economics and Management Ella Zhao, Hanna Rasmusson, Samuel Spjuth & Erik Mansson\ 1/7/2019 Presenting to: Mr. Grossman & Mr Pfaffhauser

It is not the technology disrupting the market but the possibility of putting the customer in focus to create a better experience

Agenda Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Situation Beehive Founded from a will to create communication solutions in the family of BlickKlick and Spocal Offices in Zurich, London, Berlin and San Fransisco Active in 137 countries with 130 employees Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

The Beekeeper brand identity Value proposition Customized communication solutions Brand core Brave, Simple, Proactive, Open, Bringing out the best in each other Internal Fun, young, open Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

How did we end up here? Growing need for communication Growth putting pressure on internal culture Multiple industries stretching the competences Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

How can Beekeeper drive long term growth without impacting its internal culture and brand core? Main Challenge Driving customer centricity through organizational restructure and customizability Recommendation Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Beekeepers problematic client portfolio Customer profile Early adopters Scattered industry focus Demanding tailormade solutions Resulting problems Client retention Work-intensive product customization Scattered growth Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Navigating digital transformation Fuel Omni-channel (ex IKEA, H&M) Eco System (ex Amazon) Eco System (ex Amazon) Ensuring superior product with superior customer experience Consumer insight Partial Supplier (ex Unilever) Modular (ex Paypal) Partial Eco system Business design Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Strengthening market position for Beehive Deskless focus Future Beehive Staffbase Workplace Beehive Tailormade solutions Standardized solutions Slack Yammer Standardized focus Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Key levers for BeeKeepers differentiation Customer centricity Customizability Client Success Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Alternative routes forward Expanding into more functionalities to diversify Product diversification Standardized product and going mass market Standardized expansion Customizing to core industries and driving growth through client sucess Customer-centricity Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Evaluation criteria for success 1 Maintaining strong brand core and promise 2 Client retention 3 Keeping internal culture intact to enable expansion Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Evaluating the routes 1 2 3 Product diversification Standardized expansion Customer -centricity 1 Maintaining strong brand core and promise 2 Client retention 3 Keeping internal culture intact to enable expansion Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

How can Beekeeper drive long term growth without impacting internal culture and brand core Main Challenge Driving customer centricity through organizational restructure and customizability Recommendation Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

New Organizational structure to drive customer centricity Hospitality IT Brand Client success BI Retail IT Brand Client success BI Tourism IT Brand Client success BI Sales and marketing operations Manufacturing IT Brand Client success BI Event IT Brand Client success BI IT development (core product) Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Explaining the recommendation in three steps Key objectives Refocus client portfolio on 5 core industries: Beehives Restructure internal organization at Zurich office for customer teams Introducing a client success team to drive retention Driving new business through customizability Internal employee satisfaction Client retention Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

The three implementation building blocks Driving new business through customizability Internal employee satisfaction Client retention Securing core business Restructuring Ensuring client success Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Building five core hives $ ? Fast growning non desk industries Existing clients in hospitality, manufacturing,retail, tourism and events Business intelligence Marketing Tiger team BI: Buy in data analyze trend Marketing campaign with cases Each client project manager and engineer $40 000 $300 000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Corporate restructuring- rebuilding client targeted teams $ ? One hive, one team Clear accountability and customer focus Hr Engineers Facility Managers Recruitment Workshops Office space $40 000 $200 000 $1000 000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Follow up on product and provide continues service $ ? Follow up on app functionality Client success team Calls, emails App upgrade opportunities Hire or promotion 120,000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

The three implementation building blocks Securing core business Restructuring Ensuring client success IT development (core product) Sales and marketing operations Hospitality IT Brand Client success BI Manufacturing Retail Event Tourism Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Timeline 2018 2019 2020 2021 2022 2023 Securing core businesses – 680,000 Restructuring Corporate Structure – 5,200,000 Ensuring Client Success – 120,000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Securing core businesses – 970,000 Implementation cost Securing core businesses – 970,000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Restructuring Corporate Structure – 5,200,000 Implementation cost Restructuring Corporate Structure – 5,200,000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Ensuring Client Success – 120,000 Implementation cost Ensuring Client Success – 120,000 Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Total implementation costs Funding needed within three years Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

More bees in the beehive Exceeding 200 employees within three years 25 new engineers in the next five years  total of 40 engineers Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Towards break-even Increased retention rate Higher sales Higher prices due to customization Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Risks and mitigations 3 1 2 Likeliness Risks Mitigations 1. Organizational change meeting resistance Build on strong culture identity through change workshops 2. Worrying investors before series B funding Focus on brand core and drive stable growth 3. Core industries impacted by economic cycles New structure enabling refocus 3 1 2 Impact Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

How can Beekeeper drive long term growth without impacting internal culture and brand core Main Challenge Driving customer centricity through organizational restructure and customizability Recommendation Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Beehive Creating a customer centered organization disrupting the market through an superior customer experience along with strong technical product Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Strengthening market position for Beehive Deskless focus Future Beehive Staffbase Workplace Beehive Tailormade solutions Standardized solutions Slack Yammer Standardized focus Situation Analysis Alternatives Recommendation Implementation Financials Risks Conclusion

Appendix: Contingency plan Point of no return 5 years -> Refocus Go directly to massmarket with standardized product, compete on prize