1. From Pivoting Startup to Disrupting Scaleup
Nanyang
Consulting
BEEKEEPER
From Pivoting Startup to Disrupting Scaleup
Presented to: Christian Grossmann and the Board at Beekeeper
Presented by: Minghao, Victor, Vishnu, Daniela
20 May 2018

2. 3 Internal & External Analysis 4 Strategic Alternatives
Agenda
Page 2
1 Problem
2 Recommendation
3 Internal & External Analysis
4 Strategic Alternatives
5 Implementation
6 Financial Analysis
7 Contingency Plan
8 Conclusion

3. Problem: Beekeeper faces three core issues that need to be overcome going forward
Page 3 1 2 3
Lack of
Vertical Focus
Financial
Pressure
Scalability
Which verticals should you focus on?
How can you achieve profitability?
How can you prepare for further growth? 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

4. Recommendations: Three strategies will allow Beekeeper to overcome the problems and equip the startup for further growth
Page 4 1 2 3
Vertical Integration Strategy
Geographic Streamlining
Restructuring
Program
The identified recommendations tie back into the underlying problems
Lack of
Vertical Focus
Financial
Pressure
Scalability 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

5. Internal Analysis: Beekeeper exhibits strong developed skills but faces organizational challenges that hinder growth
Page 5
Strengths
Weaknesses
Strong mobile solution
Established client base across industries
Strong culture and values
Customization skills
Poor integration between sales and engineering teams
Lack of vertical focus
Short runway before next required funding round
Lack of infrastructure and high costs in Zurich 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

6. External Analysis: Beekeeper operates in a promising environment with threats
Page 6
Opportunities
Threats
Increasing mobile adoption globally
More decentralized workforces with low engagement
Increased focus on security of internal communications
GDPR in Europe
Increased competition in mobile solutions across verticals
More hacking incidents 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

7. Strategic Alternatives: Six strategies have been considered before determining the optimal path Beekeeper should take
Page 7
+ Good × Bad
STRATEGY
Profitability
Scalability
Strategic Fit
Customer Fit
Feasibility
TOTAL
Proportional Scaling of Staff × +
Outsourcing of Engineering
Acquisition of Competitor
Vertical Integration
Geographic Streamlining
Restructuring 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

8. Implementation (1/3): Vertical Integration Strategy
Page 8 1
What
Focus on hospitality, airports, mass rapid transit (MRT), event organizations and NGOs for increased focus 2
Why
You play to your strengths in security and customization while focusing on poorly served verticals 3
How
Allow current contracts for other verticals to expire and then, transfer customers into standardized options
Develop a standard applications for NGOs, e.g. working with EcoFiltro in Guatemala as a testimonial case
Make the pricing model of the standard application user-based (e.g. USD10 per month)
Continue to offer customized solutions for hospitality and airport clients with focus on security and GDPR compliance
Identify launch customers for MRTs (e.g. SMRT in Singapore)
Customized-solution pricing model: Hosting/customization fee followed by yearly maintenance fees 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

9. Implementation (2/3): Geographic Streamlining
Page 9 1
What
Streamline operations geographically with offices in Winterthur, San Francisco and Singapore 2
Why
To reduce costs and have sufficient space for expansion plans and cater to all major geographical markets 3
How
Identify a suitable location in Winterthur (Switzerland) for establishing a new European HQ and shift the London and Berlin offices for cost reduction reasons
Maintain the HQ in Zurich until the Winterthur office is established and up and running
Set up an office in Singapore with a core mass rapid transit team for serving test customers
Have a sales team for standardized applications in Singapore for event organizations and NGOs 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

10. Implementation (3/3): Restructuring Program
Page 10 1
What
Restructure the organization into two customer-centric solution providers by focusing on key verticals 2
Why
To customize a solution for each vertical, communication between engineers and sales staff is key 3
How
Share the restructuring plans transparently and timely with all employees and arrange small meetings with employees to clarify concerns
Set-up an incentive program for a team-based performance approach
Reduce the amount of HQ “generalists” and introduce a team of engineers, security and sales staff that specialize in a vertical
Organize a team of entry-level sales staff to cater to NGOs and event organizations
Organize a team of experienced engineers and sales staff to cater the customized solutions segment, e.g. hospitality and airports
Create a communication channel to share customer success stories based on key verticals to educate the teams and for marketing usage 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

11. Key Performance Indicator
Key Performance Indicators: The following key metrics allow Beekeeper to keep track of the success of the suggested strategies
Page 11
Key Performance Indicator
Target
1. Number of pre-sales meeting with new key verticals
2. Percentage of sales from key verticals
3. Number of renewal of client contracts from key verticals
4. Cost reduction due to relocation
5. Retention rate of staff
6. Number of customer success stories per vertical
1. 20 per sales person per month
2. Increase from 80% to 92%
3. 70% in standardized solutions, 95% in customized solutions
4. USD1.9 million
5. 95%
6. 3 per vertical p.a. 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

12. Timeline: The following timeline highlights how the suggested strategies should be implemented time-wise
Page 12 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

13. New Investment Outlook:
Financial Analysis: The suggested geographic streamlining will decrease the costs by approximately $2 million
Page 13
All numbers are in Million US$
Cost Savings:
$1.9M
14% Reduction
New Investment Outlook:
$3.9M 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

14. Financial Analysis: We anticipate 60% expected user growth from the suggested strategies, with a 4x return on investment
Page 14
Over 60% Growth
Return of $12M
vs.
$3.9M Investment 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

15. Contingency Plan: The anticipated risks underlying the suggested strategies need to be overcome to manage the risk adequately
Page 15
Anticipated Risks
Contingency
1. Loss of clients from old verticals
2. Poor take-up rate by NGOs and event organizations
3. Loss of staff due to relocation
4. Lack of test customers for MRTs
5. Decrease in motivation of employees due to restructuring
1. Increase the attractiveness of the standardized application (e.g. price incentives)
2. Prepare a strong success story case, e.g. EcoFiltro in Guatemala and Formula1 in Singapore
3. Provide relocation packages and support while adopting a phased approach
4. Approach multiple MRTs simultaneously, e.g. Hong Kong MTR
5. Use success stories to reduce resistance 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

16. Conclusion: The suggested strategies will allow Beekeeper to overcome the identified challenges and equip itself for the future
Page 16 1 2 3
Vertical Integration Strategy
Geographic Streamlining
Restructuring
Program
The identified recommendations tie back into the underlying problems
Lack of
Vertical Focus
Financial
Pressure
Scalability 1 2 3 4 5 6 7 8
Problem
Recommendation
Analysis
Alternatives
Implementation
Financials
Contingencies
Conclusion

17. THANK YOU FOR YOUR ATTENTION
Nanyang
Consulting
THANK YOU
FOR YOUR ATTENTION
We welcome any questions you may have.
20 May 2018