Beekeeper: Building a global resilient hive

Beekeeper: Building a global resilient hive
Zurich, Switzerland May 2018 Cristian Grossman, Flavio Pfaffhauser, Andreas Slotosch, Daniel Sztutwojner Shannon Snaden, Kathleen Boskill, Ale Bermudez, Morgan Harper Haskayne Consulting

You Asked: How to steer Beekeeper towards even more growth while staying agile & exciting? Why push away all industries to focus on a single vertical? Would focusing on a cyclical industry like hospitality expose the start-up to strong headwinds if the macro-economic situation worsened? Is there a risk that retail or manufacturing clients would learn of this change of focus & decide to leave? Haskayne Consulting

Executive Summary Issue Recommendation Cost Customer retention
Consumer education, auto-renewal, standardized base contracts $50,000 Organizational challenges in the beehive Educate sales people on products and all feature requires through managers; morale building through team activities, lunch&learn, townhall $20,000 Industry focus Hospitality focus first, then manufacturing and retail 5% of sales for marketing to key target market Haskayne Consulting

10,000 Foot View A communications platform
Enabling a company’s many employees (bees) to better communicate within their organization (the beehive) This solves the pain points of their clients concerns of legal, financial, information security risks as Beekeeper already working on security, GDPR, ISO 27001 Served the early adopters, now need to focus on strong track record within industry Beekeeper provides employees with the tools that let employees show true potential Haskayne Consulting

Core Values Collaboration (bringing out the best in each other): Growth-hacking scrum teams, reduced silos, better quality product Simplicity (keep it simple): 3 packages of product service levels Open mindedness (bee open): CEO meets with front-line staff, team building, lunch &learns Proactiveness (bee proactive): Keep current with technology Tolerance to failure (bee brave): Failure as opportunity to learn and grow is key in new start-ups, module-structure increases ability to innovate Employee recruitment with value fit is key for strong culture at Beekeeper Haskayne Consulting

Working Together Kathleen Haskayne Consulting

Beekeeper has experience and a lot of growth potential
Where are we now? 4 co-founders with lots of experience Have over 130 employees Plethora of large clients Already disrupting the hospitality industry Consulting projects to cover company costs Beekeeper has experience and a lot of growth potential Haskayne Consulting

Beekeeper has experience and traction in HMR - needs to focus to grow
Decision Criteria Acquisition Activation Retention Revenue Referral Hospitality, Manufacturing, and Retail Banking Beekeeper has experience and traction in HMR - needs to focus to grow Haskayne Consulting

Beekeeper needs to leverage their experience and customers to focus
Hospitality Start here Established & engaged customer base Know the industry Easy win to become more focused and credible Less competition – acquire and retain new clients easier Beekeeper needs to leverage their experience and customers to focus and become credible Haskayne Consulting

Manufacturing & Retail
Look to these sectors next as you have a customer base Will not lose customers if they are kept informed and supported Be discerning of adding new features into old systems Start gaining feedback on features for models asdfasdfasd Haskayne Consulting

STOP! Banking - Not now Stop!!!! Do not make a product for banking yet
This will divert your focus Lose focus in what built you Higher competition Stop!!!! This will divert your focus and is a completely new product and industry Haskayne Consulting

Beekeeper needs to focus on developing a common platform
Alternatives Growth Future Valuation Cost Develop new core and module platform Multiple customized legacy systems Look to be acquired Beekeeper needs to focus on developing a common platform Haskayne Consulting

Tech Advancement– Core & Module
Build a core platform with module add-ons Work with customers and internally to decide core features and module add-ons Will be easier to support in the long term and less costly to maintain one system verses many legacy systems Will be easier to transition for other industries to use Beekeeper has the knowledge and experience to create a cohesive platform Haskayne Consulting

STOP! DO NOT DO THIS Keep building multiple custom systems
Multiple customized systems are very difficult for engineering teams to support and maintain It is very costly to support multiple single systems Stop!!!! Beekeeper needs to get away from creating multiple customized systems Haskayne Consulting

STOP! DO NOT DO THIS Look to be acquired
Now is not the time to look to be acquired Still lots of growth potential within industry Stop!!!! Beekeeper should not look to be acquired. Haskayne Consulting

Beekeeper needs to educate and support customer journey
VP Problem or issue GVP gives a team to look into options Online research Test products through free trials Gain user feedback Create report to VP Purchase decision Customer Journey Beekeeper needs to educate and support customer journey Haskayne Consulting

Target Market VP positions in hospitality, manufacturing and retail organizaitons Europe and UK Age 40 + Need to educate – might not understand millennials or GDPR Experience in industry Beekeeper needs to educate and support customer journey Haskayne Consulting

Open for business Ale Haskayne Consulting

3 $13M 130 Snapshot TOTAL FUNDING NUMBER OF EMPLOYEES CORE INDUSTRIES
80% of revenues comes from the hospitality, manufacturing and retail industries Haskayne Consulting

Competitors landscape
Beekeeper’s size and funding is less than 1% of its main competitors size Haskayne Consulting

Need to evaluate efficiency areas
Assumptions Currency: USD Current price model: per user fee 130 employees with an average salary of $60K a year Overhead costs between $9 to $12 million a year Inefficiencies in staff procedures and productivity Need to evaluate efficiency areas Haskayne Consulting

Recommended pricing model
SMALL MEDIUM LARGE For less than 50 employees Between 51 to 100 employees For more than 100 employees One time fee for basic core + cost of customized module = Software costs x fee x user / month x fee (5% off) x user / month x fee(5% off) x user / month = total cost 15% discount on 2 year contracts Offering 3 different types of categories will provide a more constant revenue stream Haskayne Consulting

Cost of implementation
5% of revenue for marketing efforts $20k for organizational motivation Customer retention $50k 20K will be used to motivate, communicate and team building purposes Haskayne Consulting

Out of the box Acquire Red e App Employee recognition module
Big clients Different industries Only 14% of Beekeeper’s valuation Employee recognition module 80% of revenues comes from the hospitality, manufacturing and retail industries Haskayne Consulting

Stepping forward Morgan Haskayne Consulting

Organizing the Beehive
1 month 2 months 3 months Focus on 3 main sectors: Hospitality, Manufacturing and Retail Senior Leadership: meeting regarding focusing on 3 verticals to ensure alignment Host townhall to communicate simplified strategy changes to employees Improving lack of employee morale within Engineering department CEO and CTO: Meet with the engineering team to discuss concerns Engineering Manager and Sales Manager: Working to create process of how requests to the engineering department are to be managed Engineering Manager and Sales Manager: Roll out process with departments and review expectations Simplifying the 3 industries that the Beekeeper focuses on and how requests are managed Haskayne Consulting

Simplicity of Product 1-3 months 3-12 months 1-2 years
-Sales Manager to meet with key clients in each of the 3 industries to understand client needs -Sales Team: Additional feedback through surveys and focus groups with end users of product Senior Leadership Team: Criteria for deciding core platform and modules is established Senior Leadership Team Create scrum teams, or cross functional teams, to focus on each key sector 4 Scrum Teams Build, develop and test products Sales Team Communicate upcoming changes to clients Rollout in multiple groups the new simplified core product and module platform Continue to communicate with clients and receive feedback on product Simplifying the product offering will allow the company to save costs and be more responsive to industry needs Haskayne Consulting

Spreading the Honey The unique selling proposition of Beekeeper is the GDPR compliant nature of the platform and the security that is available Sales representatives: attend industry conferences in hospitality, retail and manufacturing, to educate target market about product Marketing team: Develop advertisements in trade magazines to reach out target customer Marketing team: Add Beekeeper website to have testimonials and white paper Educating the target market is a key to attracting and retaining customers Haskayne Consulting

Risks and Mitigation Risk Impact Probability Mitigation Cybersecurity
H 2 factor authentication Data encryption Internal procedures GDPR Complying with regulations and continually reviewing to ensure compliance Liability Liability insurance Security of personal and business data is an ever pressing issue in today’s society Haskayne Consulting

Building a great future
Morgan Haskayne Consulting