Is the Beehive in the right garden? Jacob Estrin Elizabeth Sackson Graeme Whitaker Aleisha Dunn QUT Consulting

Agenda Overview Analysis Alternatives Recommendation Implementation Conclusion

Opportunity How do we continue to grow while reestablishing our organizational simplicity and retaining our core values? Beekeeper Values Effective Affordable Achievable

Issues Internal Disruption Mainstream Legitimacy Lack of focus Engineering vs Sales Facilities Mainstream Legitimacy Securing the future Foothold in the US market Lack of focus Spread to Thin Alignment to Core Values

Solution Beekeeper to focus on the hospitality, retail and manufacturing industry. Create a new offline startup to cater directly to cruise lines, local agriculture and the military. Keep it Simple Bee Brave Bee Proactive

Key trends Increasing mobile workforce – Difficulty of communicating across distributed workforces Increasing uptake of technology Growing retail and hospitality sectors Increasing customer desire for customization Growing customer expectation for efficiency and timeliness Reduced brand loyalty

Internal analysis Strengths Weaknesses Customization Developing and adapting to new technology e.g. data security Generating capital Growth hacking (acquisition & activation) Increasing internal complexity Miscommunication between internal units Slowing of delivery Customer retention Brand legitimacy Opportunities Threats EU General Data Protection Regulation Growing distribution workforce Variety of competitors with deep pockets

Competitor analysis **Assumption - 100% of competitors do not have an offline capability and use a centralized model

Options Considered Focus on hospitality, retail and manufacturing and develop a new offline version of the product Partner with a large technology firm Generalize the product and remove the specific industry focus Transform Beehive into a security-centric product

Options Considered Hospitality Focused with Offline Initiative Creating a new Company to create offline product Streamline and clean up internal organizational structure Find a large company to partner with to establish legitimacy Strategic Partnership Partner with a large technology company Leverage off their networks and customers Broad Generalist Focus Create a standard delivery pipeline for new features Restructure the organization to focus on mass market development Partner with mainstream customers Pivot to Security Increase focus on security and integration Realign product marketing to focus on security centric industries Pursue government partnerships

Option Review Beekeeper Values Effective Affordable Achievable Option Cost Time Criteria Ranking (5) Hospitality focused with offline initiative $11.38 Million 24 Months 4.75 Strategic Partnership $1-1.5 Million 12 Months 3.5 Broad Generalist Focus $1.5-2 Million 4 Pivot to Security $15 Million 36 Months 3.75 Beekeeper Values Effective Affordable Achievable

Recommendation Beekeeper to focus on the hospitality, retail and manufacturing industry. Create a new offline startup to cater directly to cruise lines, local agriculture and the military.

Recommendation Create a New Hive Clean up the Current Hive Creating a new Company to target new industries Clean up the Current Hive Streamline and clean up internally Find the Honey Pot Partner with a large company to establish legitimacy

Implementation Plan Clean up the Current Hive (6 Months) Standardize sales offering Connect customers to innovation pipeline Setup new premises Knuckle down on core industries Create a new Hive (18 Months) New Brand New Premises New Value Proposition New Industries Find the Honey Pot (18 Months) New USA Partner Intensive Development Expansion

Risks Pillar Risk Risk Rating Mitigation Mitigated Risk Rating Staff resistance to change impacting productivity Medium Dedicated change management approach Low Pillar 2 Limited Customer Demand Early Customer Engagement Pilot First Multiple Targets Pillar 3 Incumbents in the new industries respond quickly Medium/High Create stickiness through agility and customer service Cannot engage a partner which meets criteria Leverage off successful roll out in Switzerland. 100,000 staff 120 Hotels Pilot is not Successful Gather Requirements Change Management Manage Expectations

1. Clean up the hive 1 – Clean up 2 – Create new 3 – Honey pot Standardized offering + customers connected Imbedded change New premises established Core industries only

2. Create new hive 1 – Clean up 2 – Create new 3 – Honey pot

3. Find the honey pot 1 – Clean up 2 – Create new 3 – Honey pot Partnership launched Proven model

Financial summary Cost Clean up the hive Project team 5 FTE 3 mths @1000 / day 300K Create a new hive Establish new company 20K Development & Mgmt team (3x400k x 2yrs) 2.4M New office setup (800K/yr) 1.6M Engineering team (10x200K x 2yrs) 4M Sales and support (8x120K x 6mths) 430K Launch to market 200K Find the honey pot Project team (6FTE@$1000/day x 6mths) 720K Engineers (3@$200K x 18months) 60K Customer (2@120K x3) Customer (6@120K x 15) 900K Sales (1@120K x 3mths) 30K Sales (1@120Kx15mths) 450K TOTAL 11.38M

What’s New What’s Staying What’s Disappearing Our new division Startup focus Target new industries for disruption What’s Staying Our Existing Focus Simplify Establish legitimacy What’s Disappearing Over customization Keep it Simple and meet core need

Positioned for further strategy decisions in 2 years How do we continue to grow while reestablishing our organizational simplicity and retaining our core values? Beekeeper to focus on the hospitality, retail and manufacturing industry while creating a new offline startup to cater directly to cruise lines, local agriculture and the military. Enables BeeKeeper to Capitalize on their current competitive advantage and create a new agile exciting venture to disrupt other industries Positioned for further strategy decisions in 2 years

Questions ?

Option Ranking Option Hospitality focused with offline initiative Strategic partnership Broad Generalist Focus Pivot to Security Key Criteria Beekeeper Values 5 3 Effective 4 Affordable Achievable 4.75 3.5 3.75

Alternative Risks Strategic partnership Broad Generalist Focus Pivot to Security Loss of Values Loss of competitive advantage Potential lack of internal capability Lose control of the company Is not a bold solution Risk of alienating current contracts Potential loss of future business Does not provide clear strategic focus No guarantee to security government partnerships