Beekeeper: too big, too fast! Goodman School of Business Presented to: Mr. Cristian Grossmann, Beekeeper Presented by: Goodman Consulting Group Beekeeper: too big, too fast!

Problem statement How to grow but stay agile and exciting? Lack of office space Too many layers Contracts ending Silos White collar Heavy focus on growth metric Problem Analysis Alternatives Financials Recommendation Implementation Risks

Target Industries Beekeeper Hospitality Manufacturing Retail Problem Analysis Alternatives Financials Recommendation Implementation Risks

recommendation Beekeeper 2.0: Base app with pay per feature Maintain current target market and modify the strategy from growth to profitability Beekeeper 2.0: Base app with pay per feature Change office structure: work-from-home Change company hierarchy: delayering Problem Analysis Alternatives Financials Recommendation Implementation Risks

Swot analysis S Quickly expanding company with global employees and large clients W Increased growth yields increased complexity Heavily focused on growth metrics O In line with all data regulations T General Data Protection Regulation (GDPR): will tighten how companies use client or employee’s personal data Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alignment to key values Key success factors Profitability Client Experience Better communication within organization Alignment to key values Collaboration Simplicity Open mindedness Proactiveness Tolerance to failure Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternatives Focus on profitable clients Expand to more markets Maintain current target market Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alignment to key values Key success factors Profitability Client Experience Better communication within organization Alignment to key values Collaboration Simplicity Open mindedness Proactiveness Tolerance to failure Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternative 1: focus on profitable clients and customize Pros Cons Dependent on clients Specialized in HR All eggs in one basket Profitable Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternative 2: expand to more markets Pros Cons Lack specialization in core verticals Competition Access a broader market Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternative 3: Maintain current target market Pros Cons Experience and reputation Proactive, simple, collaborative, open-minded Enhance customer experience Long-term: no immediate payoffs Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternative 1: focus on profitable clients and customize Decision Criteria Rationale Profitability High revenue; Putting your eggs in one basket Client Experience High level of customization Alignment to key values Complicated; Limited to specific number of clients Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternative 2: expand to more markets Decision Criteria Rationale Profitability New markets; Lack of experience; Client Experience Very general; Less focused Alignment to key values Does not fulfill the key values Problem Analysis Alternatives Financials Recommendation Implementation Risks

Alternative 3: Maintain current target market Decision Criteria Rationale Profitability Fulfilling current markets (Hospitality, Manufacturing & Retail) Client Experience Increasing options for clients Alignment to key values Brings out the best (collaborative); Predicting the needs (proactive); Simplicity of customization (simple) Problem Analysis Alternatives Financials Recommendation Implementation Risks

Financials Do not compete with the behemoths of the industries or attempt to target white collar industries Problem Analysis Alternatives Financials Recommendation Implementation Risks

Financials Growth Metric has led to a very outward focused company without having the internal capabilities to serve growth Problem Analysis Alternatives Financials Recommendation Implementation Risks

Financials Focus on the 3 sectors and ramp up marketing in Hospital, Reality and Manufacturing Problem Analysis Alternatives Financials Recommendation Implementation Risks

Financials Type of cost duration Cost Beekeeper 2.0 1.5 years $ 2M Developing new features Ongoing $ 150K Office migration 1 year $ 300K Marketing $100K Total $ 2.55M Problem Analysis Alternatives Financials Recommendation Implementation Risks

Implementation Maintain current target market and modify the strategy from growth to profitability Change offices structure Change Compeny Structure Beekeeper 2.0 Problem Analysis Alternatives Financials Recommendation Implementation Risks

Implementation – Beekeeper 2.0 Develop BeeKeeper 2.0 Create one base app for all with most common request feature. Create web self-customization portal – every IT department will add features to their own app. Implement AI engine solution to analyze users usage in app. Quarterly releases of new features. Pay Per Feature – More Revenue Problem Analysis Alternatives Financials Recommendation Implementation Risks

Implementation – Change Company structure Delayer Management Structure – Management board to make the decisions Based on Beekeeper 2.0 app – no more misalignment between sales and engineering Sales will have clear view on what they sell. Engineering will have clear road map what to develop Engineering department move to “agile” work method to have more collaboration and productivity Everybody makes decision – no more! Problem Analysis Alternatives Financials Recommendation Implementation Risks

Implementation – Marketing Create new Marketing plan BeeKeeper to customers Customers to employees Use Marketing team to reach more customers Attend Hotel Conventions Use BeeKeeper knowledge to promote app within customers employees base Use your offline marketing knowledge Problem Analysis Alternatives Financials Recommendation Implementation Risks

Implementation – Change Office structure Go to “work from home” Model Save building and space cost Convert office space to collaboration spaces and meeting spaces Use collaboration tools – first your own BeeKeeper! You will be the best showcase for BeeKeeper Usage Problem Analysis Alternatives Financials Recommendation Implementation Risks

Risks & Mitigations Risk Severity Mitigation High Medium Low Problem Analysis Alternatives Financials Recommendation Implementation Risks

Timeline 0-6 months 6-12 months 12-18 months 18-24 months Change Company Structure Work-from-Home Implementation Beekeeper 2.0 Problem Analysis Alternatives Financials Recommendation Implementation Risks

Risks & Mitigations Risk Severity Mitigation High Medium Company culture: change due to work-from-home employees High Use Beekeeper to remain connected with employees Clients do not want to pay more for add-on features Medium Discounts for loyal (3-year) clients Problem Analysis Alternatives Financials Recommendation Implementation Risks

Key Takeaways Beekeeper 2.0 Problem Analysis Alternatives Financials Base app with paid added features AI mechanism: identify customer needs Online customization Quarterly releases of new features Problem Analysis Alternatives Financials Recommendation Implementation Risks