LETTER OF TRANSMITTAL 6999 Sabado Tarde Isla Vista, CA 93117 www.digid.com

Chancellor Henry T. Yang University of California Santa Barbara Santa Barbara, CA 93106

Dear Chancellor Yang,

When students first come to UCSB for orientation in the summer before their first year, they are given a small plastic card. This piece of plastic, a student ID, is their lifeline for the next four years. It gives students access to the dining commons, the recreational center, rooms in the residence halls, the public transit system, Associated Student events and much more. We at Digid, would like to introduce a new application that will have all the functionalities of a student ID, with the added convenience of being accessible through a smartphone. Why support Digid? It’s convenient – In this age, everyone has their smartphone with them at all times. Having an access card on a smartphone is incredibly convenient.

It’s affordable – For $2 a quarter, our product is extremely affordable compared to replacement ID cards. It’s eco-friendly - Digid is completely eco-friendly from inception to production all the way to its decomposition, for it is free from the bounds of plastic.

It’s secure – Our developers have a strong understanding of identity theft and how to prevent it. We use advanced hashcodes and pin passwords to ensure that no one has access to your ID other than the authorized student.

It’s an investment – Students lose an average of 2.4 access cards in your 4 years at UCSB. With Digid, the small payments each quarter will save the average student $60 later. The future is now, and with your help, we can improve the daily life of students at UCSB. Digid will take on the challenge of never letting students forget their access cards when needed, and provide them with a means of accessing student services while having one less component in their pockets to misplace.

Enclosed is a detailed business plan of our objectives and vision. We thank you for your time and consideration, and we look forward to meeting with you soon to discuss the implementation of this idea at UCSB.

Sincerely,

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TABLE OF CONTENTSSection Description Page Number

1 Business Description 81.1 Introduction 91.2 Selling Features 91.2.1 Convenience 91.2.2 Affordability 101.2.3 Cost Efficiency 101.2.4 Security 101.2.5 Environmental Sustainability 111.3 Digid of the Future 11

2 User Experience 12

2.1 Splash Screen 13

2.2 Security 13

2.3 Initial Login 14

2.4 Mobile Identification 14

2.5 Apple App Store 15

2.6 Customer Settings 15

3 Industry Analysis 163.1 Introduction 173.2 Mobile Application Industry 173.3 Mobile Payment Industry 183.4 Near Field Communications Industry 193.5 Smart Card Industry 203.6 Conclusion 20

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4 Market Analysis 224.1 Market Analysis Overview 234.2 Recent Market Trends 234.3 Location 244.4 Primary Market 264.4.1 The University 264.4.2 The Students 274.5 Secondary Market 284.6 Expansionary Market 284.7 Market Validation 294.7.1 The Survey 304.7.2 Survey Results 314.8 Conclusion 32

5 Competition Analysis 335.1 Introduction 345.2 Direct Competition 345.2.1 University of Texas Austin 345.2.2 Pennsylvania State University 345.3 Indirect Competiiton 355.4 Unique Competitive Advantage 355.5 Conclusion 35

6 Marketing Strategy 366.1 Introduction 376.2 Objectives 376.3 Verification 376.3.1 Product Differentiation and Appeal 386.3.2 Polls 38

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6.3.3 Proposition 396.4 Installation 396.4.1 Introduce Digid to Students 406.4.2 Grand Opening 406.4.3 Advertisement 406.5 Expansion 416.5.1 Verification in Other Schools 416.5.2 Installation in Other Schools 416.5.3 Introducing Digid to Other Schools 416.6 Cost Analysis 426.7 Overview 42

7 Implementation 437.1 Phase 1: Verification 447.1.1 Business Proposal 447.1.2 Business Plan 447.1.3 Business Presentation 447.1.4 Goals to Accomplish 457.2 Phase 2: Installation 457.2.1 UCSB Administration 457.2.2 Availability 457.2.3 Apple App Store 457.2.4 Google Play Store 457.2.5 Event Advertisements 467.2.6 Goals to Accomplish II 467.3 Phase 3: Expansion 467.3.1 University of California System 467.3.2 National and Global Universities 467.3.3 Beyond Digid 46

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7.3.4 Goals to Accomplish 47

Gantt Chart 48

8 Operating Procedures 498.1 Phase 1 508.2 Phase 2 508.3 Phase 3 50

9 Management and Personnel 519.1 Introduction 529.2 Culture and Philosophy 529.3 Personnel 529.4 Organizational Chart 539.5 Management 549.6 Advisory Board 559.7 Partners and Consultants 55

10 Financials 5610.1 Phase 1 5710.1.1 Initial Capital 5710.1.2 Costs 5710.1.3 Revenue 5910.1.4 Break-Even Analysis 6110.1.5 Net Income 6210.2 Phase 2 6210.2.1 Costs 6310.2.2 Revenue 6510.2.3 Net Income 66

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EXECUTIVE SUMMARY

The Digital Mission:

Digid means to move the world into the next stage of technology as a pioneer in virtual transitions. Through a smartphone application, we bring this transition to university students and move away from conventional physical cards by allowing them to access their identity through mobile devices. A simple mobile application will open the doors to infinite opportunity by creating a new industry.

Enacting our Mission:

Digid intends to thrive through innovation and responsiveness to society’s needs. In an age where mobile wallets and utility applications are picking up speed, Digid seeks to take the first step into digitizing identification cards in a safe and viable fashion. Our mission starts in a controlled university environment, but our initiative will take us nation and even world-wide enforcing a new platform for identification.

Digid will fill the gap in current industries and succeed by offering a product and service that existing technologies and businesses cannot fulfill. Our market is receiving, and related industries are thriving. There is no better time than now to introduce Digid to the UC system, starting with Santa Barbara.

Innovation:

To innovate, the invention of new technology is not always necessary. Digid emphasizes core values of creativity, convenience and simplicity to quickly and efficiently provide people the advancement they seek in their daily lives. The tools are out there and technologies remain underutilized; Digid will be the link between NFC, mobile payments, identification and mobile utility. With the help of exceptional personnel and brilliant ideas, Digid will reach its goals and adapt to society’s needs.

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1

BUSINESS DESCRIPTION

1.1 Introduction

Have you ever left the house and forgotten something behind?  Dropped or lost your cards, keys or wallet?Every year a mass of students lose their Access Cards and are inconvenienced with the inability to enter dining commons, dorms, laundry services and a number of other University resources.  We at Digid are proud to introduce an innovative mobile app service to students at University of California, Santa Barbara that will solve these issues.

Our virtual identification mobile application is a student ID accessible in the form of a phone app.  This application will be able to serve as a replacement to a student’s Access Card should they lose, break or not have it with them.  As a replacement, it will give the student access to residence halls, dining commons, recreational facilities, bus access, and payment options linked to a BARC account just like a regular Access Card.  However, unlike the Access Card, our product focuses on 5 characteristics: Convenience, Affordability, Cost Efficiency, Security, and Environmental Sustainability.

1.2 Digid’s Selling Features

1.2.1 Convenience

Digid’s virtual identification app will be simple and easy to use in order to maximize its convenience to students.  The application will be downloadable from both Google and Apple app stores, and to access their ID, a student need only enter their university, PERM number and full name with a valid authorization code.  Upon opening the application, the virtual ID will show a picture ID with pertinent information and convenient buttons linking the student to other applications.  

No browser navigations, scrolling or excessive clicking to get to your ID, our application is meant to be faster and more efficient than a physical card.  Lines get held up and slow as people shuffle through bags and pockets to bring out their ID.  Our application means to provide virtual accessibility through something everyone holds nearby and on hand at all times, their cellular devices.

Through NFC technology, payment processes and scanning is streamlined.

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 Many smartphones nowadays include NFC capabilities and NFC utility continues to grow everyday as the cell phone industry evolves to keep up with the latest mobile apps.  Similar to Apple Pay, students can make payments by opening the application and holding their phone to a scanner.  This is much faster and more convenient than typing in numbers, or swiping a card.

1.2.2 Affordability:

Digid will work with the University of California, Santa Barbara to include costs as a part of tuition.  The good news?  It’s cheap.  Digid will be available to all UCSB students for the low cost of $2 a quarter.  The total cost for a 4 year student would be $24 at $6 a year.  This is very affordable and reasonable considering the current cost of an Access Card is $25, and many students end up losing and repurchasing their physical cards sometime during their enrollment at UCSB.  Since Digid is a virtual ID, it cannot be lost and can be easily downloaded again for free should a student change mobile devices.  In this way, not only is Digid affordable, it is an investment.

1.2.3 Cost Efficiency:

As just mentioned, Digid is an investment and regardless of what happens to a student’s Access Card, Digid will last a whole enrollment period.  Not only are physical Access Cards easily lost, they are also easily worn out and broken.  After constant swiping at dining commons and the recreational center, many students find that the ink on their cards wears out.  Since the side which gets swiped is the same area where a person’s face is on the ID, most people find that the picture ID part of the Access Card is useless because their face is on longer recognizable and is scratched out.  This is a common issue Digid can assure its customers this will never happen on their mobile devices.  Digid can eliminate the need to purchase a physical Access Card all together, freeing students of all the hassle that comes with them.

1.2.4 Security:

Digid ensures its customers the utmost security in its mobile application.  Today more than ever, security of digital information is crucial and our product takes this into account with multiple security measures.  First, to prevent ID duplication and fraud through screen captures and photographs, each ID will have a constantly changing visualizer on the screen to prove authenticity.  Second, secure servers with protection and regular upkeep will keep hackers at bay.  Third and most importantly, our NFC will contain encryption of information being sent to vendors and utilize the most up to date data breach precautions.

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1.2.5 Environmental Sustainability

Last but not least, Digid is environmentally sustainable and resourceful by being paperless and not requiring the printing, laminating, or manufacturing materials that smart cards do.  The transition into a digital age saves trees from chopping, and the air from toxic particles from plastic manufacturing.  Also, by saving cards from being made, Digid also saves them from being lost, tossed and ending up in landfills.  If every student has at least one Access Card during their enrollment at UCSB, not considering the lost and repurchased cards, that requires a lot of plastic to be manufactured and tossed with each year’s incoming class.  Digid supports a greener and more efficient age of technology.

1.3 Digid of the Future

Digid is ready to bring the UC system into the next stage of innovative technology following the increasing trends of mobile wallets and increasing versatility of mobile devices.  Since there is no market for virtual identification applications, Digid would like to expand to the rest of the UC system after Santa Barbara.  Even further in the future, Digid aims to grow further and go public as a business specializing in valid mobile ID’s and mobile payments.  Pursuing its vision of simplifying a person’s pocket and making physical items accessible by mobile device, Digid carries a concept appropriate to current trends with great potential for growth.  Digid appeals to the demands of university students to start because students are quicker to adapt new technologies and keep up with recent developments.  We are excited to introduce our new product and look forward to seeing it succeed and grow with related industries and societal trends.

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3

INDUSTRY ANALYSIS

3.1 Introduction

Everyday industries rise and fall exponentially and people analyze these trends in hopes of predicting future changes.  The success of industries lies in their sensitivity to consumer demands and society’s needs.  That is why we at Digid are confident our product will succeed in paving the path for a new industry, based on the success of related industries and society’s insatiable demand for convenience and new technology.  Currently no industry exists for virtual identification.  However, related industries such as the mobile application industry, mobile payment industry, the smart card industry, and the Near-Field-Communications industry can provide insight into the potential success of our product.

3.2 Mobile Application Industry

The most obviously related industry is the mobile application industry since Digid will provide a virtual identification in the form of a mobile application.  Since 2010, mobile applications have been utilized and adapted by consumers and business people around the world.  The largest market for mobile applications is accessible through industry leaders Google and Apple through their respective applications shops, the Google Play Store and Apple App Store.  Through these stores, almost all smartphone users, either Android or iPhone users, will have access to Digid’s virtual identification app.

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Recent and growing successes in the mobile application industry reflect how much society has come to rely on apps, and promise an enthusiastic market and growing market for our product.  Jupiter Research predicts that 2014 mobile application revenue will surpass $25 billion, while Statista predicts that worldwide revenues will top $34.99 billion and continue to climb to $76 billion by 2017.  From 2011 to 2012 there is an astounding 123% growth in mobile app revenues.  Clearly, in the last 4 years mobile application use and revenues have grown incredibly well which supports Digid’s belief that now is a prime time to enter the market with a new mobile application targeted towards college students.

3.3 Mobile Payment Industry Another similar and extremely relevant industry to Digid’s virtual identification application, is the mobile payment industry.  Digid’s virtual identification app will cover all the utilities a UCSB Access Card can, which includes payments from a student’s BARC account.  Much like the similar mobile application industry, mobile payments have seen great growth in recent years.

Statista shows that in the last few years, the number of mobile payment users continues to grow and the projected growth up to 2017 is significant and enormous at 450 million users.  This shows

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society’s growing trust and reliance in their mobile devices, and support for the transition from wallet to cellular device.  

Digid’s goal in replacing physical cards is very much in line with the interests of mobile industries and consumer needs, which is why we know our application will be positively received by the UCSB student base which already uses their phones for a number of utilities and payments.  An example is the commonly used Starbucks application which allows customers to purchase drinks by scanning a barcode which comes up on their phone.  Our application aims to use similar technology, or rather upgrade to the growing popularity of NFC like Apple has recently done with its new Apple Pay.

3.4 Near-Field-Communications (NFC) Industry

Another relevant and growing industry Digid will be affected by is the Near-Field-Communications or NFC industry.  NFC technology is used for a number of contactless data transactions and recently it has been increasingly used in cellular devices as a tool to make mobile payments.

By 2017, mobile payment transaction value from NFC and contactless technologies are projected to reach $64 billion.  This is a huge projected growth of 1,728% over 3 years with this year’s transaction value being just $3.5 billion, and this optimism shows just how much mobile payments and NFC technology is being developed and expected to grow.  NFC technology in cellular devices is only expected to improve and grow in coming years and incredible energy and research goes into improving this technology and making it readily accessible for consumer use.    

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NFC will also be crucial in our programming to ensure that people can use their phones to open doors to resident halls and we have confirmed that the NFC technology will be compatible with existing sensor panels and be able to simulate everything an Access Card can do. Now would be an incredibly opportune time for Digid to join the market and utilize this new NFC technology right at the base of exponential prospective growth.  Even quicker and with more esteemed growth than a barcode on a screen, NFC is the future of mobile payments as Apple has shown in developing Apple Pay.

3.5 Smart Card Industry

A potential competing industry is the Smart Card industry but Digid does not see it as a threat due to the costliness associated with Smart Cards.  The currently existing UCSB Access Cards rely on Smart Card technology but utility outside of the university setting is limited due to the difficulty of implementing standards outside of a controlled area like a university or office space.  Smart Cards have seen limited success with companies due to inadequate consumer awareness and shifting the U.S. to a smart card economy was calculated to cost approximately $12 billion.

Smart Cards just barely started to catch popularity in the U.S. in the first decade of the 21st century due to the technology’s interest to Microsoft, American Express, and the Washington D.C. subway system.  Nowadays, they are heavily used by American Express and credit card companies because they allow greater security and protect card holders from fraud.  Target, a large retailer, will soon release its new Red Cards utilizing Smart chip technology to protect from repetitions of its recent credit card data breach.

While Smart Cards offer protection and utility in credit cards and company/campus cards, their utility outside of these environments is limited and costly.  The biggest processor of Smart Cards is currently for telecommunications (75%) while the second largest is financial service and retail.    The U.S. originally planned to make drivers licenses into Smart Cards to make fraud more difficult, but this project was postponed because of the projected $11 billion implementation cost.  In this sense, the market for secure and smart identification is still open to Digid and through NFC technology there is great opportunity to provide students with a form of identification both viable and useful inside and outside of campus.

3.6 Conclusion on Overall Industry Analysis

Digid has carefully scoped out related and competitor industries and can confidently conclude that current and prospective industry growths provide an ideal environment to release a mobile virtual

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identification application.  It is important to acknowledge that because an industry has been growing and is expected grow, does not particularly mean that it always will.  As mentioned earlier, industry successes are based largely on demands and needs of consumers and society.

As quickly as these industries grow and start, technology trends are extremely variable and there is no guarantee that consumer tastes will not change, that demand for new technology will continue, or that society’s trust in technology will continue.

As seen with Target’s data leak and with Apple’s Cloud hacking, the security of technology is incredibly important and when valuable information is leaked, industries can see drops or companies can be hurt significantly with mistrust from consumers.  When dealing with information and identification technology, security and trust of consumers is incredibly important. A security issue currently present within

Digid has taken these industry risks into account and puts the information and data of its customers at the highest priority with multiple security precautions to ensure its product’s success. Digid is ready to take the UC system and then the world into a new stage of virtual technology.

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4

MARKET ANALYSIS

4.1 Market Analysis Overview

Digid aims to make the daily usage of the student identification card more convenient. As the trend of eliminating physical components of the traditional wallet is becoming more popular, the mobile application will quickly draw the attention of smartphone users. Located in the central city of Santa Barbara, Digid has the opportunity to grow throughout the UC system with the help of local venture capitalists and angel investors. Digid appeals to both the university’s needs as well as the students, therefore it creates a strong primary market. The application’s versatility allows for a secondary market of university faculty as well as the opportunity to expand to universities all over the nation.

4.2 Recent Market Trends:

The number of smart phone users in the United States grew by 101.3 million users since 2010. This population is projected to increase by an additional 60 million users by 2018. As a mobile application, Digid will increase its market size concurrently with smartphone user growth.

ApplePay has had a significant impact on smartphone users in the United States. Since the introduction of ApplePay nationwide in October, Whole Foods has recorded 150,000 iPhone-generated transactions in their stores. Similarly, Walgreens reported that NFC payments have

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doubled since October. ApplePay also accounts for 50 percent of tap-to-pay totals of the major fast food corporation, McDonalds.

Another prominent market trend is the increase in the variety of applications that eliminate the need for a physical wallet. CamCard, BizCard, and Yolu Card Reader substitute physical business cards. Loyalty Cards are eliminated through apps such as Belly, Plumreward, Foursquare and Facebook. Cash and Credit cards usage can be replaced with mobile payment apps such as Stripe, Square, PayPal and Venmo. Fandango, AMC, Ticketmaster, Stubhub, and Apple Passbook all offer a way for mobile ticketing.

The bottom line is that the United States is slowly shifting away from using traditional wallets to using mobile, e-wallets. The digital ID card is the next step in the transition to an exciting chapter in technology.

4.3 Location:

Digid will first be introduced to the University of California, Santa Barbara. We chose this location because Santa Barbara is where the idea was born and where the app developers are located.

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Implementing a mobile application in close proximity to the developers will allow for any preliminary trouble shooting and server issues to be promptly resolved.

Santa Barbara is also known for its start-up friendly culture. With yearly programs such as the Technology Management Program’s New Venture Competition and SB Startup Weekend, Santa Barbara attracts many venture capitalists, angel investors and influential people in the tech industry. According to a recent Forbes publication, Santa Barbara is the fifth most active metropolitan area in the US, in terms of venture deals and dollars, on a per capita basis.

Finally, Santa Barbara’s central location is ideal for Digid’s expansion goals. We hope to start implementing our digital identification application north in UC Berkeley, Davis, Merced and Santa Cruz and south in UC Los Angeles, Irvine, Riverside and San Diego. The central location will allow for easy communication within the UC system as we implement our marketing campaigns.

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4.4 Primary Market

Digid’s primary market is two-fold: the university and the students. Our base customers will be the universities in which we hope to implement the alternative form of identification. Due to the compliance ordinances that universities place upon private businesses that affect students on a daily basis, securing the university’s approval is essential. Once the university agrees to accommodate the new software as an alternative form to the existing physical identification card, our market shifts to encompass the students of the university. Digid appeals to university students with smartphones who are looking for means to conveniently access the university resources they use most often.

4.4.1 The University

Digid has an enormous potential university market size of 4,150. This number encompasses the initial location, UCSB, remaining University of California schools as well as the rest of American universities. In 5 – 10 years, Digid hope to reach 5% of this potential market – about 200 campuses.

Three common needs exist among these American universities. First, universities are continuously looking for ways to increase revenue. Next, they aim to conveniently improve the college experience of the student body. Finally, universities seek to be leaders in technology and environmental preservation. To appeal to these three needs, we will emphasize three selling features to the universities.

Digid is profitable –At UCSB, the Associated Students body is allocated a yearly budget of 9 million dollars for student resources. Of this 9 million, $350,000 is set aside for investing in new and upcoming projects. This means that University will not have to take on more costs than projected. On top of minimal costs, the university will be earning a majority of the $2 fee per user. Therefore, Digid will help the University raise revenue.

Digid is hassle-free - UCSB is already equipped to incorporate Digid. The preexisting door scanners at residence halls are capable of reading Digid’s NFC technology. Although the

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university will have to purchase new scanners for the seven new scanners for the dining commons, recreation center, and library—it will be one-time affordable investment.

Digit is sustainable - UCSB values sustainability. The campus received one of the highest scores (99) in the Princeton Review’s Green Rating and was named to the 2014 “Green Rating Honor Roll.” Digid provides the opportunity to eliminate more plastic waste because of the mobile application. UCSB can be one of the first universities to take a step further into the digital age.

4.4.2 The Students

Digid’s initial target student body (UCSB) consists of around 22,000 students. A recent study from UC Davis showed that 89.3% of students in the University of California system have smartphones. Therefore, Digid has the potential to be used by the majority of the student body. In addition, Digid expects a growing customer retention rate. Due to the increase in incoming class size at UC schools, the number of Digid users will naturally grow. Each year as a class of students graduate, a new and larger group of students will join the student body.

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Digid’s users are busy college students who are looking for a way to lighten their physical and mental load. At the same time, the users are concerned for the security of transitioning from physical objects to mobile applications. Being college students on a budget, Digid’s users hope to save money as well. To appeal to these three needs, we will emphasize three selling features to the students.

Digid is convenient – The alternative to the physical ID card helps lighten the load for college students. Carrying the access card will be one less responsibility for the extremely busy students. The application’s interface is extremely simple to use and allows users to conveniently access student resources.

Freshman Class Size

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Freshman Class Size

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Digid is secure - The developers have a strong understanding of identity theft and how to prevent it. We use advanced HashCodes, visualizers and pin passwords to ensure that no one has access to the ID other than the student.

Digid is affordable - The $2 fee per quarter equates to total of $24 for a four-year academic career. A single access card replacement costs $25, so Digid is the affordable choice.

Digid appeals to the distinct needs of the two-fold primary market. Because of the unique benefits for each group, both the university and the students have reasons to implement and use Digid.

4.5 Secondary Market

Digid has the potential to reach a secondary market consisting of faculty and other employees of the university system. Personal identification is used by a variety of professionals on college campuses aside from students. At UCSB, this market has the potential to encompass 1,708 individuals. Digid can be used by faculty to access special resources provided only to employees of the university. In addition, Digid can be used to access the increasing number of NFC equipped doors and locks on campus.

4.6 Expansionary Market

Eventually, we aim to reach the entire UC system consisting of around 236,000 students. All the UC campuses implement similar student identification cards that provide access to similar student resources.

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For example, the Cal 1 Card, Triton Card, Bruin Card, Aggie Card. are all extremely comparable to UCSB’s access card. Similar to UCSB Access Card users, students from the respective schools utilize their ID card to access dining halls, residence buildings, recreational centers, libraries and public transportation. The user interface will not require any modifications. Therefore, the transition in our API of the mobile application implementation will be smooth. Finally, once the UC system has been introduced to Digid, we hope to expand to 5 percent of the national university market – 200 universities.

4.7 Market Validation

Due to the innovative nature of our product, not many statistics regarding the market of digital identification applications exist. Therefore, the Digid team conducted the following survey among 100 UCSB students* to validate our predictions about our customers.

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4.8 Survey

* We understand that 100 students do not necessarily represent the entire student body; however, this is merely the first step in our market validation. As discussed in the upcoming marketing, we will be conducting more extensive market research to confirm our predictions.

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4.8.1 Survey Results

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Do you own a smartphone?

YesNo

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As we suspected, the majority of the survey respondents owned a smartphone. As we survey larger groups, the percentage is expected to lower to be closer to the results from the study at UC David (89 percent). Regardless, the majority of students own smartphones and will be able to access the digital ID application easily.

As seen in the bar chart, the number of students who have misplaced or lost their ID card at least once is larger than the number of students who have never misplaced it. According to our survey, students lose their access card an average of 2.4 times before graduation. Replacing 2.4 access cards would cost an average of $60. Therefore, Digid is the economical option.

An overwhelming 96% of survey respondents answered that they would be willing to pay $2 per quarter for a digital ID card. This 96% is larger than the 83 % of students who have lost or misplaced at least one access card. This means that a large portion of students is still interested in this application even though they have never lost an ID card. Digid’s convenience and affordability is appealing to them.

Aside from the results displayed above, the survey also indicated that: ▪ 96 percent of students carry their smartphone device “most of the time” or “always” ▪ 84 percent of students have been at least one situation without their ID card when they

needed to access student resources (listed on the survey)

4.9 Conclusion

The results of the market validation survey give the Digid team confidence that the product will meet the needs of our target market. In an age where students are extremely overwhelmed with responsibilities, Digid provides a solution. At the same time, it appeals to both the university administration and the students. The application has the potential to reach thousands of users across the nation. As the American people slowly transition from the traditional wallet to a virtual one, a digital identification card is the next exciting step.

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5

COMPETITION ANALYSIS

5.1 Introduction:

The best part about Digid’s competition is that there essentially is none. Digid is an innovative alternative to the plastic identification card, especially in the market that we consider primary. No universities in the University of California system currently employ technology such as Digid so we can have complete control over the immediate market. At UCSB, Digid’s greatest competitor is the preexisting Access Card system. However, the affordability and convenience offered by a virtual ID card will attract the attention of student using the Access Card.

5.2 Direct Competition:

Some similar products exist in universities such as University of Texas at Austin and Pennsylvania State University. Digid offers a variety of uses for the virtual ID card that these competitors do not. In addition, these businesses have existed for over five years and have yet to make their way to the University of California system.

5.2.1 University of Texas Austin In 2009, UT Austin provided its students the opportunity to supplement their physical ID cards with a virtual ID. However, this ID card is hosted on a web platform. It requires opening a separate browser application. Unlike Digid’s easy 4-digit pin-code access system, this application requires the user to input a full student ID number and associated password. In addition, the application does not utilize the NFC technology that allows door-lock access. Digid is a more convenient and versatile alternative.

5.2.2 Pennsylvania State University

Pennsylvania State University introduced the Penn State id+ Card to its students in 2010. Although the ID card does provide an alternative to the physical ID, its uses are not all encompassing. The id+ card is mainly a form of a debit card that can be loaded with money to spend in accepted campus locations. Although it does have an identification component with the student picture, the card does not provide access to student facilities such as the recreational center. Digid offers more uses for the student users.

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5.3 Indirect Competition: Digid’s indirect competition at UCSB is the existing Access card program; however, Digid offers many features that a physical ID card does not. The convenience of accessing the ID on a smartphone is Digid’s selling point. In addition, manufacturing and supporting the Access card requires more manpower and resources than Digid will. A virtual ID card eliminates the need for the plastic and ink costs as well as the support team located in the University Center. As shown by our market validation survey, students at UCSB are ready to convert to a digital form of identification.

5.4 Unique Competitive Advantage:

As we previously discussed, Digid has many advantages over its direct and indirect competition. However, one feature in our card that is uniquely innovative to our application is the visualizer. This graphic module offers a way to validate and secure the use of virtual identification. Pioneering technology in identification brings risk to users, especially in the form of identity theft. The moving figure will be unique and consistently updated. It will prevent users from utilizing screen shots of ID cards to take advantage of the virtual identification.

5.5 Conclusion

Although Digid is not the first virtual identification platform, it stands far ahead of its competition. The easily accessible mobile application, effortless 4-digit pin code and sleek user interface make Digid a tool that students will want to use. The application provides access to many more resources than its competitors and is therefore extremely versatile. In an age where the traditional wallet and physical cards are slowly being replaced by virtual alternatives, Digid offers an exciting opportunity to join the movement to a digital era.

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6

6.1 Introduction

Digid is going to be the new standard in the way students verify their identity. In this section, the founders of Digid propose a simple set of marketing objectives in order to gain a supportive clientele base, solidify that clientele, and expand upon it.

6.2 Objectives

1. Verification: ○ Obtain polls from University of California Santa Barbara students showing the

existing demand of Digid’s service. ○ In obtaining data from polls, show students how Digid has a competitive edge

against competitors as well as some key features and benefits Digid will provide. 2. Installation:

○ Develop a website to have a reference for our audience ○ Market towards the University of California Santa Barbara administration to install

Digid’s service into the school system. ○ Email a notification to all UCSB students informing them about grand openings on

campus for Digid including promotions to obtain Digid early or at a discounted rate and Q&A opportunities with developers.

○ Develop Facebook and other social media accounts to help students gain a greater understanding of Digid.

3. Expansion: ○ Introduce Digid to other UC campuses and take polls from respective students. ○ Propose Digid to be installed into other UC campuses. ○ Send out email notifications to respective student bodies. ○ Provide Q&A functions just like at UCSB. ○ Continue to market towards additional colleges across the country.

With this three step process, Digid will grow from a business with good intention, to an entity that can help the ease of access to school identification cards for students all over the nation.

6.3 Verification

This step in Digid’s marketing goals will be conducted by the original developers of Digid and will be enacted without expense.

6.3.1 Product Differentiation and Appeal

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By providing this information towards the university and students, the developers of Digid will be able to show the significance of its service and install Digid into the university at ease.

Key features and benefits pertaining to Digid include:

● Affordability – students will be able to use the Digid app at a low cost of $2 per quarter, an expense that would be included in every students’ tuition. This expense would equate to $24 if the student were attending school for four years, and three quarters a year, a total that is still less than the cost of a physical Access Card.

● Convenience – With Digid, students will never have to worry about losing their physical identification card, and will now have the ease of access to student identification cards through a smartphone application.

● Eco-friendly – Digid is completely eco-friendly from inception to production all the way to its decomposition, for it is free from the bounds of plastic.

● Secure – Having a physical identification card is liable of being misplaced or stolen, however, Digid will be safe and secure inside a smartphone application, and cannot be accessed by any other device without an authorization code granted by Digid.

● Insured – Although Digid is secure on a student’s smartphone, smartphones are still easily misplaced. In cases where students need to replace or purchase a new smartphone, Digid will be able to reactivate a student’s school ID by providing a new authorization code to retrieve the student’s ID free of charge.

● Credible – All Digid Identification will also display a unique visualizer to prevent screenshots and fraud.

● Versatile – Just like UCSB Access Cards, Digid will enable students’ smartphones to use NFC technology to activate scanners in order to unlock doorways to dormitories and conduct plus dollar transactions. Digid will also have bar codes shown on the display, allowing access to the gymnasium, dining commons, and other campus services with infrared scanners.

6.3.2 Polls

In order to incentivize the administration of UCSB, the developers will take polls from all UCSB students showing the demand for Digid. Through the poll, the developers of Digid will obtain a general idea of how many students desire this service, as well as what price students are willing to pay for such a service.

Once the data from the polls are collected, this information will be used to back up the potential success of Digid when proposing the service to

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UCSB even before it is installed into the university system.

By finding how much students are willing to pay for the service, The developers will be able to use that information to derive revenue projections, as well as profit margins. This data will also be used to back up the proposal of Digid towards UCSB administrators.

6.3.3 Proposition

With the data taken from polls in addition to the key benefits Digid has to offer, the developing team anticipates the approval from the university for Digid's service.

In proposing Digid to UCSB, Digid developers request all revenues be directed towards the company, however, it is negotiable that Digid is willing to take only $0.50 per student each quarter, allowing the university to keep the remainder $1.50 per student each quarter. The revenue directed towards Digid will cover the cost of employees and upkeep, while the revenue towards the university will be used for initial costs, and the remainder of profits will be given to the school to use freely.

6.4 Installation

After proposing Digid to UCSB, the developing team of Digid will have its main programmer install the service into the school system. By using the existing database of student information, Digid will be able to transfer the information placed on physical UCSB Access Cards onto the newly formatted Digid app.

Once Digid’s software has been implemented, students will be able to download Digid on either the Google Play Store or the Apple App Store for free. Once the app is downloaded, users will require an authorization code granted by Digid. This code is obtained through our website.

Costs pertaining to the installation of Digid includes the initial cost of purchasing and setting up infrared scanners at necessary locations that swipe cards instead, as well as the necessary equipment

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to implement Digid in the school system. Other start up costs include the cost of employees required to run the service, a cost that is covered by Digid.

6.4.1 Introduce Digid to Students

Once Digid is ready to be downloaded and used by students, a promotional process will take place in order to raise awareness of Digid’s service around campus. This process will include a grand opening event including Q&A with developers.

6.4.2 Grand Opening

A grand opening invitation will be sent out to all UCSB students. This grand opening will take place at multiple locations on UCSB’s campus. At these grand opening events, students who attend will be able to obtain Digid for free for a limited time, approximately a quarter to a year’s worth of service. In addition to free giveaways, a Q&A will be held with the developers of Digid to answer any questions or concerns pertaining to Digid’s service.

6.4.3 Advertisement

Because Digid is a service implemented into the tuition of UCSB students, heavy advertisement for this service will be unnecessary. Through the grand opening events and spreading through word of mouth, students will be well informed of Digid's service.

Informational flyers may be developed and handed out if necessary and will be a minimal expense. These flyers would be stationed at locations where school identification cards would be used most frequently. These locations would range from gymnasiums, dining commons, dormitories, and other on campus services.

In addition to flyers and announcements of grand opening events, Facebook pages and other social media outlets will be developed, as well as a website to help students as well as colleges and universities gain a greater understanding

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of Digid.

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6.5 Expansion

When Digid takes a firm hold of the student body at UCSB, the developers of Digid will repeat the marketing process in order to spread to other colleges and universities. This plan is separated into three main subcategories:

6.5.1 Verification in Other Schools

Digid will reach out to other UC campuses, using the same marketing approach as UCSB. First, the developing team will once again reach out to poll students in order to confirm the demand for Digid on campus. Next, the developers will use this data, in addition to data taken from UCSB, in order to support future business proposals with colleges and universities.

6.5.2 Installation at Other Schools

Installing Digid into other colleges and universities will vary depending on the pre-existing services schools use as means of identification. It is anticipated that the implementation of Digid in future campuses will be similar to the approach used at UCSB.

Costs accrued through Digid's installation will also be anticipated to be of relative values as UCSB. Like UCSB, Digid is looking to seek all revenues from its services, but is still willing to give up up to 75% of its revenues towards the school’s usage if necessary.

6.5.3 Introducing Digid to Other Schools

Once Digid is ready to be downloaded and used at other campuses, the developing team will once again provide a mass email to the respective student bodies, inviting students to grand opening events. In addition, the developing team will also advertise Digid through flyers that will also be handed out on school campuses.

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6.6 Cost Analysis

At first, the cost of marketing for UCSB is smaller than the cost of marketing for future campuses. A breakdown of marketing expenses over the first three years is as shown:

6.7 Overview

Through our marketing plan, Digid will be able to be implemented into not just UCSB, but other colleges and universities at a minimal expense. Digid's goal is to create a service for all students to make their daily lifestyle more convenient. Digid hopes to act as a catalyst for pushing consumers to finding more applications and uses for their smartphones, and drive the future towards technology that increases the well being of humanity.

Marketing Costs / Year Year 1 Year 2 Year 3 Year 4 Year 5

Website / Social Media Upkeep $1,000 $1,000 $1,000 $1,000 $1,000

Other $1,000 $1,000 $1,000 $1,000 $1,000

Marketing Employees ($12/hr., 10hr./week, 52weeks/yr.)

$0.00 $12,480 $12,480 $24,960 $24,960

Total $2,000 $14,480 $14,480 $26,960 $26,960

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7

IMPLEMENTATION The product implementation of Digid can be divided into two parts. An integral part of the service is the smartphone application that displays securely and dependably your photograph, name, perm number, and other details. A second part of the service is the ability to work with phone and RFID technology to integrate into your lifestyle. The short and long term goals of Digid can be addressed in 3 phases, as elaborated upon in the Gantt chart attached at the end of this proposal.

7.1 PHASE 1: Verification

In this phase of Digid, we will create a business proposal, plan, and presentation in order to excite initial investors of our idea. We will also be validating the idea and pivoting as necessary to reflect the current demand of students. Our university of choice to launch the platform is UCSB, so we will be preparing our initial presentation to the administration. This phase of implementation requires a strong, unwavering commitment by the Digid management.

7.1.1 Business Proposal

This is to create the general wireframe of the initial idea and used to attract investors with a few brief pages of our idea. The business proposal convinces investors in Digid’s management, market validation, and business model.

7.1.2 Business Plan

This is a comprehensive and thorough walkthrough of Digid, explaining everything about each aspect of the business. This becomes Digid’s plan moving forward, and is ready to be implemented after mentor and advisor feedback.

7.1.3 Business Presentation

If we have gotten this far, it means investors need the last push to be convinced to believe in the company. We need to sell investors and the administration on the idea of Digid, so the presentation, along with the plan, is a really important part of Digid’s early success. The presentation must be visual and persuasive.

7.1.4 Goals to accomplish

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LLC and incorporation: First, we must make sure the name Digid is available in the State of California. Next, we file the articles of organization, and pay a filing fee of $800. We then create an LLC operating agreement and publish a statement of intent. After completing these steps Digid becomes a fully incorporated company.

Facebook & Social Media Website

7.2 PHASE 2: Installation

7.2.1 UCSB Administration

In a second, very important phase of Digid, we will be working with UCSB administration to begin integration into their systems. In tandem, we will be working on the app development, as

well as the development of our technologies from α, to β, to a final product that is ready for public launch. The app development will require two programmers to work for about 1.5 months, for about 15 hours a week. They will work in a team with a designer and Digid management to create a flawless experience.

7.2.2 Availability

We want to be able to consider the Class of 2019 the first freshman class able to use our service. At that point, we would want to be done with a complete, working version of Digid.

7.2.3 Apple App Store

The application approval process by Apple takes about 3 weeks to do, if there are no major bugs to sort out at that time.

7.2.4 Google Play Store

To distribute the app on the Android platform, we must follow Google’s approval process, which, although similar to Apple’s, is less stringent on the design standard and functionality of the application.

7.2.5 Event Advertisements

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We want to partner with larger student organizations, fraternities, and campus departments to advertise events that would interest students. Digid’s competitive advertisement space allows for a bid system of pricing. This ensures that the price is always at the equilibrium price for the market supply and demand.

7.2.6 Goals to accomplish

App Development Advertising to UCSB campus Sponsored Events

7.3 PHASE 3: Expansion

7.3.1 University of California System

Due to the similar nature in the way the University of California system is set up, further implementing this service at other campuses is a great way to gain traction beyond the UCSB campus. We can utilize the connections that have been established between

7.3.2 National and Global Universities

An obvious next step in expansion is to implement the service at other universities. Because it is an application with a back-end database framework, it is remarkably simple to scale, and we wouldn’t incur many variable costs as the business expands. We’d love to implement a customer support service as we get an increasing amount of universities involved. By the end of the 2016-2017 school year, Digid hopes to have partnerships with over 10 universities across the country. At this point, we may consider hiring a sales manager, as well as a customer service representative. Students will depend on Digid for their everyday lives, making customer support particularly important to provide.

7.3.3 Beyond Digid

The basic functionality of the service can expand to any industry that requires identification. For examples, individuals involved in the sports and entertainment industries can use Digid to gain access to sporting arenas and performance venues. Corporations can also make use of this service to allow individuals access into a building. This method of identification is significantly more secure than a badge as it requires authorization before each use, making this a promising addition to a corporation’s security features.

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7.3.4 Goals to Accomplish

Creating an office space Hiring Nationwide targeted advertising

The implementation of Digid can be divided into 3 distinct phases. Phase I provides a way to validate the idea with investors and students, making sure that there is a clear market want for this product. Phase II allows Digid to become integrated with a familiar campus, UCSB, and work out any issues that may arise. Phase III allows Digid to expand to different universities, and even different markets, truly establishing Digid as a world-class business.

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8

OPERATING PROCEDURES

Our logistics in terms of operating are actually pretty simple. Since we are selling a mobile application, we don’t require a storefront, an e-commerce website, employees for manufacturing, production, or delivery of goods.

8.1 PHASE 1 In order to save costs, initially we will be operating out of our respective homes and congregating in Isla Vista to build and initially market the service. Our #1 goal during launch of the service is to have unparalleled customer satisfaction and create a flawless identification experience.

8.2 PHASE 2 During this phase, we will be in constant communication with relevant administrative workers to begin implementation of the app, and all necessary accessories, around UCSB. The distribution method for the app is through the Apple App Store and the Google Play Store; Digid does not have a storefront to run and sell our service. We will also be aggressively marketing the app and service to students who need to be convinced of the value-added benefits. The management team will be available 18 hours a day, from 8am to 2am to answer any questions or concerns that may arise in the daily use of this application.

8.3 PHASE 3 During Phase III, the success of Digid lies in the sales and marketing team. The idea and service itself is incredibly easy to scale given the server and app costs and implementation don't change immediately as we add more universities or students. Our focus during this phase will be rapid, but careful, expansion. We will offer a 24 hour support email and phone number to all of Digid’s clients and users so nobody will be left Our level of complexity of operating procedures is not outside the limits of the Digid team. As a team, we are familiar with the application development process, marketing and promotion of the app through university channels, and expansion procedures in Phase III.

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9

MANAGEMENT & PERSONNEL The Digid team is dedicated in providing the best experience possible for every one of our users. Whether it is the school administration, or a student, we want our service to make a positive impact at universities across the country. To do so, we have pulled together some of the best talent available to create a great experience for all users.

9.1 Introduction

Digid firmly believes in the value of a good team. For this reason, we have implemented a stringent hiring process that will focus on recruiting the best talent there is to offer, and offering a competitive, ethical wage based on position. Once we have recruited a strong applicant pool, we will focus on interviewing for these positions based on skill and personality. Effective communication skills is a requirement for any new hire at Digid, and we hope to have a good company culture.

9.2 Culture & Philosophy

Digid offers a positive, nurturing environment for every employee to thrive in. We believe that a balance between work and play allows for the perfect level of efficiency as a company. Our management firmly believes that employee leadership can contribute strongly towards the success of Digid as a whole.

9.3 Personnel

In order to create the Digid experience we envision, we will need to hire certain types of employees: Developers: We will need to hire two developers for a three months to begin the initial app development. These developers will work full-time for the initial three months, allowing for development of an initial beta. These developers will stay on our team for a few months after to ensure that bugs are contained and do not affect user experience. After we are successful in implementing the service at UCSB, we will keep one developer part-time to maintain the app.

Sales Team: After we have a successful year at UCSB, we will move onto the rest of the UC’s as well as other universities across the country. The management team, which previously assumes these roles, will not be able to reach out in the same personable way that Digid wants to be recognized for. The sales team will be responsible for reaching out to university administrators across the country, persuading them into buying into the service, and begin to market to students on forthcoming

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campuses. This team will have 4 members initially, and will expand as the rate of expansion of Digid increases.

Support Team: A support team, split between an Asian country and the United States, will be working on ensuring 100% customer satisfaction 24 hours a day, 7 days a week. Digid understands the importance of reliability and dependability, so this support team is essential once Digid expands to universities across the United States. This team will have one member for every five universities.

Accountant: To track revenue, expenditure, and profit through a balance sheet, we will need an accountant to keep track of our financials more carefully. The chief financial officer and this accountant will be working in tandem to ensure we are filing our taxes in proper intervals, keeping a balance sheet, and remaining profitable. In the foreseeable future, we will only require one accountant.

9.4 Organizational Chart

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CEO

CTO COO CMO CFO

AccountantSales Manager

Sales Team

2 31

Developer Team

21

9.5 Management

Cary Tanaka, CEO: The brains behind the initial idea, Cary is a visionary that has a passion for taking an idea from inception to execution. He is a proud member of the Alpha Kappa Psi business fraternity, allowing him to connect with many talented people at UCSB. His previous leadership endeavors and extensive startup experience will allow him to lead the Digid team to sure success.

Marie Knechtli, COO: As an aspiring Economics major at UCSB, Marie brings many necessary skills for Digid. Her previous experience with multiple non-profits and small businesses has allowed her to learn what makes a business run successfully. With her irreplaceable insight, Marie is an integral part of the Digid management.

Soham Tikekar, CTO: A talented designer and an individual familiar with the app development process, Soham is responsible for the unmistakable branding that Digid is creating. His experience with other successful startups, and projects of his own allow him to create a seamless user experience for Digid.

Preeti Tata, CMO: Preeti’s strong business sense and work ethic makes her an invaluable asset to the Digid Team. As Vice President of Professional Affairs for the Alpha Kappa Psi business fraternity at UCSB, she has taken the prominent student organization to even greater heights. Her attention to detail and ability to connect well with people makes her the perfect choice for leading the Digid marketing operations.

Serge Lubimov, CFO: An actuarial science major, Serge’s ability to analyze financial risk and probability models has become a core part of the Digid project. His ability to think outside the box and anticipate every scenario has allowed the Digid team to creatively pivot the service to adapt to the customer.

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9.6 Advisory Board

Our advisory board brings invaluable advice after years of experience in their respective fields.

Alain Knechtli, Data Architect at Gap Mr. Knechtli offers continually invaluable advice to the Digid team. Through his experiences as a data architect for Gap, he is able to offer solutions to Digid’s database and development problems, and create a secure and reliable network for identification to remain safe and dependable.

David Teelen-Lawton, Business Development Officer - Technology Management Program Through his decades of industry experience, Mr. Lawton has provided us insight in industry analysis, as well as well-developed marketing strategies. He has provided feedback on our investor presentations, allowing us to learn and grow so that each consecutive one can be even more successful.

Miles Ashlock - Director - Office of Student Life, UCSB With a strong understanding of the campus dynamic, Mr. Ashlock has provided Digid with irreplaceable connections with UCSB administration that we will leverage to implement the service within the school. Mr. Ashlock is also a part of a national network of university administrators, allowing him to help Digid expand around the country.

9.7 Partners & Consultants

In our initial phases, our management team and advisory board are qualified enough to run day-to-day operations, develop the app, and create the envisioned Digid experience. But as we expand to hundreds of universities or new markets, and become a multi-million dollar company, we believe hiring outside consulting firms like KPMG or Deloitte to independently research Digid’s potential shortcomings would increase the overall value of our company.

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10

FINANCIALS

10.1 PHASE ONE In this phase, we will make a contract with UCSB to let them use our program for a year, and if they like it, they can renew the contract.

10.1.1 Initial Capital

The initial capital that we aim to obtain would be $11,800, which should be sufficient to cover the wages for our programmers during application development with enough left over in case of any other potential fees we might encounter in the creation and implementation of our business. In order to gain this initial capital, we would get money from two sources.

Our first source would be seed funding from friends, families, and our own pockets. We expect to gain $2,000 from this source.

Our second source would be from outside investors. We expect to acquire $9,800 in initial capital from investors, promising them a 22% capital return in a year ($12,000 total return). This decent return should suffice in getting potential investors interested in our business.

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10.1.2 Costs

Our costs for the first year would be broken down as follows.

Seed fundingInvestment

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$2,000

$9,800

First of all, we would need to hire an application developer to create the application for both the Google and Apple application markets. To achieve this, we would need to start development seven months before we implement the app at the university. We would pay the developer $35 per hour for ten hours of work per week for those seven months. This would come out to $9,800 for that time. After that, we would keep our developer around for application upkeep. We would still pay the developer $35 per hour, but with cutting down his/her workweek to five hours per week. This would come out to $9,100 per year.

Our other employment expense would be from hiring two customer support representatives to address the initial bugs that may come with this application. We would pay them each $12 per hour for ten-hour workweek. This would come out to $12,480 per year.

Our next cost would be from owning a commercial web domain and its development. We estimated this cost to be about $1,000 per year.

Our final cost that we would incur this year would be from the $12,000 return to investors mentioned in the initial capital section.

All these costs come out to a total of $44,380 for out first year.

Employee Costs: Application Developer: Initial Development: $9,800 Upkeep: $9,100 Customer Support Representatives: $12,480 Web Development and Hosting: $1,000 Return on Initial Investment: $12,000

Total: $44,380

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10.1.3 Revenue

Our revenue would come from two sources.

The first one being a contract with the university in which they add $2.00 to the tuition fees per student per quarter, and we get a cut of $0.50 per student per quarter. We expect revenue of $30,000 considering approximately 20,000 registered students per year with a payment of $0.50 per student per quarter.

The second source would be from ad revenue. Our ad revenue is calculated as follows. We would get $10 for every 1,000 impressions (impressions are generated every time the app is open). The expected value for views is about 18,000 per day, which should be reasonable given the number of 20,000 registered students. This leads to getting $180 per day. Now, the usual school year consists of 210 days. This brings us expected ad revenue of $37,800 per year.

In addition to the regular school year, we would also be getting revenue from the summer session. We would continue using the same pricing as in the regular year. Since there are about 8,000 registered students during the summer session with $0.50 per student, we would get revenue of $4,000 for the summer.

As for ad revenue, we base it off our ad revenue for the regular year. We will still use the $10 for every 1,000 impressions. The expected value for views would be about 7,200 per day, which is

Costs for Year 1

27%

2%

28%

21%

22%

Application Developer - Initial DevelopmentApplication Developer - UpkeepCustomer Support RepresentativesWeb Development and HostingReturn on Initial Investment

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reasonable for the number of students. This comes out to $72 per day. The summer sessions consist of about 12 weeks, or 84 days. Multiplying this number by the $72 per day leads to a total of $6,048 in ad revenue for the summer session.

In total, our expected revenue for both the regular school year and the summer session for this year would come out to $77,848.

Regular School Year: Cut from Tuition: $30,000 Ad Revenue: $37,800 Total: $67,800

Summer Sessions: Cut from Tuition: $4,000 Ad Revenue: $6,048 Total: $10,048

Grand Total: $77,848

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Cut from Tuition - Regular YearAd Revenue - Regular YearCut from Tuition - SummerAd Revenue - Summer

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$30,000

$17,000

$4,000

$6,048

10.1.4 Break-Even Analysis

By breaking down our costs into a per-month basis, we will break even in October of Year 1.

! 0

4000

8000

12000

16000

Mar May Jul Sep Nov Jan Mar May Jul Sep

CostsRevenue

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10.1.5 Net Income

Since our total revenue ($77,848) combined with our initial capital ($11,800) is greater than our total costs ($44,380), we therefore would be making a profit in our first year.

Initial capital: $11,800 Total Revenue: $77,848 Total Expenditure: -$44,380

Net Income: $45,268

10.2 PHASE TWO

In this phase, we would expand to the other Universities of California. We would attempt to get about two additional universities using our services per year in addition to what we currently have.

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Net Income (Year 1)

Initial capital

Total Revenue

Total Income

Total Expenditure

Net Income

$0 $22,500 $45,000 $67,500 $90,000

$45,268

$44,380

$89,648

$77,848

$11,800

Net Income (Year 1)

8.2.1 Costs

We would continue keeping the same employees and wages as well as our web development and hosting as in year one.

In year two, we would hire two field marketers to help promote to the other universities. We would pay them $12 per hour for a ten-hour workweek. This would come out to $12,480 per year. In year four, we would hire two more field marketers and pay them the same wage. This would result in $24,960 per year starting in year four.

We would also hire an accountant in year two. We would pay the accountant $27 per hour for a five-hour workweek. This would come out to $7,020 per year.

In Year 3, we would have enough income to comfortably purchase an office space in San Diego for $31,108 per year.

Costs/Year Year 2 Year 3 Year 4 Year 5

Application Developer $9,100 $9,100 $9,100 $9,100

Customer Service $12,480 $12,480 $12,480 $12,480

Field Marketers $12,480 $12,480 $24,960 $24,960

Accountant $7,020 $7,020 $7,020 $7,020

Web Development and Hosting $1,000 $1,000 $1,000 $1,000

Office N/A $31,108 $31,108 $31,108

Total $42,080 $73,188 $85,668 $85,668

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Costs Per Year (Year 2)

2%

17%

30%30%

22%

Application Developer - UpkeepCustomer Service RepresentativesField MarketersAccountantWeb Development and Hosting

Costs Per Year (Years 4-5)

36%

1%8% 29%

15%

11%

Application Developer - UpkeepCustomer Service RepresentativesField MarketersAccountantWeb Development and HostingOffice Space Rental

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10.2.2 Revenue

We would plan to incorporate two universities per year into our system. For universities with the quarter system, we would continue to use the $0.50 per student per quarter plan used in phase one. For universities with the semester system, we would have them increase the tuition to $2.50 per student per semester and we would take $0.75 per student per semester. These payment streams would result in an overall stream of $30,000 per university per school year.

We would also continue to implement our ad revenue of $10 per 1,000 views as in to phase 1, which would end in $37,800 per university per year. This would result in $67,800 per university per year.

We would also expect that summer sessions would be the same across the universities. That would mean addition revenue (from tuition and ad revenue) of $10,048 added on to the yearly revenue per university. Altogether, our total revenue would be $77,848 per university per year, the same amount as in our first year.

Revenue/Year Year 2 Year 3 Year 4 Year 5

(3 universities) (5 universities) (7 universities) (9 universities)

Regular School Year Revenue

$203,400 $339,000 $474,600 $610,200

Summer Revenue $30,144 $50,240 $70,336 $90,432

Total Revenue $233,544 $389,240 $544,936 $700,632

$0

$200,000

$400,000

$600,000

$800,000

Year 2 Year 3 Year 4 Year 5

RevenueCosts

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10.1.3 Net Income

As shown in the table below, we would make more revenue per year than our costs per year and as such, we would make a high net income.

Net Income/Year Year 2 Year 3 Year 4 Year 5

Revenue $233,544 $389,240 $544,936 $700,632

Costs $42,080 $73,188 $85,668 $85,668

Net Income $191,464 $316,052 $459,268 $614,964

Net Income (Years 2-5)

$0

$175,000

$350,000

$525,000

$700,000

Year 2 Year 3 Year 4 Year 5

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Accountant Salary (United States). (n.d.). Retrieved December 5, 2014, from http://www.payscale.com/research/US/Job=Accountant/Salary

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Application Developer Salary (United States). (n.d.). Retrieved December 5, 2014, from http://www.payscale.com/research/US/Job=Application_Developer/Salary

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PREETI TATA 6508 El Greco Rd #1 Goleta CA 93117 ! 925-872-5537 ! preetitata@umail.ucsb.edu ! www.linkedin.com/in/preetitata

EDUCATION University of California, Santa Barbara Bachelors of Science in Actuarial Science, Minor in Art History

Expected graduation date: December 2015

Exam P: Siting January 2015 Coursework/Computer Experience

• Math of Fixed Income Markets, Time Series Analysis, Probability, SAS, Stochastic Process, Regression • Experienced in statistical analysis tools [ SAS and R ] and programming languages [ Python, Java and C ] • Working knowledge of Microsoft Excel, Microsoft PowerPoint, Adobe Photoshop and Adobe Dreamweaver

Time Series Project

• Utilized R to analyze and adjust the stationarity of a time series data set • Performed log and boxcox transformations on the data set to account for the polynomial trend in the original data • Analyzed the effects of the transformations by fitting an ARIMA model and examining PACF and ACF plots • Forecasted 5 years into the future based on existing data and speculated reasons for current trends

WORK EXPERIENCE

Financial Planning Assistant, Collaborative Financial Solutions LLC, Santa Barbara CA October 2014- Present

• Work with high net worth clients and keep files updated with their recent happenings and financial standings • Compile client portfolios and manage client paperwork using money managing and CRM software • Perform research on various statistical theorems that apply to the financial sector for technical blogs • Handle extremely sensitive information like social security and bank account numbers while filling client paperwork

Administrative Assistant, Cetera Advisors Network LLC, Santa Barbara CA March 2014 – June 2014

• Prepared 5-10 prospective client product portfolios per week for the financial advisors to take to their meetings • Created CalPERS and CalSTERS diagrams and summary statistics based on clients’ qualifications and background • Reviewed meeting copytalks and modified client portfolios for future meetings based on meeting notes • Utilized Customer Relationship Management software, Redtail, to compile new data, organize and update current data

Math and Computer Science Private Tutor, Self, Pleasanton CA June 2013 - September 2014

• Designed 6 custom 8-week courses for twenty five 3rd-8th graders to prepare for success in upcoming classes • Taught daily sessions that included lectures, activities and worksheets; created enrichment assignments • Sent daily emails to parents with their child’s progress and specific additional resources

COMMUNITY INVOLVEMENT Alpha Kappa Psi – Co-ed Professional Business Fraternity, UCSB October 2013 – Present VP Professional Affairs Fall-Winter 2014

• Organized a professional speaker event for rush week with over 120 attendees • Coordinated individual and group interviews for around 100 applicants while maintaining hundreds of pages on file • Improved the chapter’s campus presence by securing co-sponsorship of the Fall Career Fair with Career Services • Connect Santa Barbara business executives and the brotherhood through creative networking and workshop events.

Associated Students Finance Board, UCSB January 2014 – April 2014 • Participated in weekly meetings in which campus student organizations requested funds for upcoming events • Reviewed and analyzed the budget breakdown while keeping in mind the yearly $417K total budget • Collaborated with 17 other board members to decide the proportion of funding each organization would receive

Girl Scouts of America Gold Award Project – Pleasanton Teen Tutors January 2012 - April 2012

• Directed a team of 6 volunteers in marketing the service and designing the website and database. • Created and presented a project proposal and budget to the Northern California Girl Scouts Board • Recognized with letters from Pleasanton mayor, Senators Feinstein and Boxer, and President Obama!

Serge Lubimov

6750 El Colegio Road #118 Goleta, CA 93117 Phone: (760) 201-5575 Email: serge_lubimov@umail.ucsb.edu

EDUCATION University of California Santa Barbara, Bachelor of Science in Actuarial Science

• Expected Graduation: June 2015 • Relevant Coursework: Fixed Income Markets, Corporate Finance, Statistics, Linear Regression

Analysis, Time Series, Discrete Mathematics, Business and Administrative Writing Palomar College

• May 2013 • Relevant Coursework: Micro and Macro Economics, Multivariable Calculus, Differential Equations

COMPUTER SKILLS • Programming knowledge: C, C++, R, SAS

• Microsoft Excel & Outlook.

RELEVANT EXPERIENCES

Times Series Project, University of California Santa Barbara July 2014

• Forecasted a time series analysis of a stock to see whether or not it was worth investing in.

• Applied skills from this project to assist clients with their investments and ended in positive results.

Econometrics Project, University of California Santa Barbara November 2014

• Interpreted market data to estimate a security market line and determine the market rate of return.

Business Plan, University of California Santa Barbara November 2014 • Conducted financial analysis for a business plan to make financial operations feasible.

Regression Analysis, University of California Santa Barbara April 2014

• Utilized statistical programming to create a multi-variable analysis of a dataset.

WORK EXPERIENCES Advertiser, AArrow Advertising, Carlsbad, CA, May 2012 - September 2012

• Directed potential clients to new businesses through open interaction and marketing.

Calculus Tutor, San Marcos High School, San Marcos, CA, September 2010 - June 2011

• Assisted students in understanding the reasoning behind calculus.

LANGUAGES • Russian (fluent), French (conversant)

MEMBERSHIPS/AWARDS • Member of the UCSB Actuarial Association • Dean's List May 2013 (Palomar College)

Cary S. Tanaka 6867 Trigo Rd. | Goleta, CA 93117 | C: (310) 741-2649 | carystanaka@gmail.com

OBJECTIVE To seek and acquire an internship within the Value Added Services team of AppFolio in order to gain experience in the software developing industry.

EDUCATION University of California Santa Barbara Expected Graduation: June 2016

• Candidate for B.A. degree in Economics • Related Course Work: Microeconomics, Macroeconomics, Economic Development, Statistics

EXPERIENCE Night Supervisor March 2014 to Present UCSB Recreational Sports

• Ensure overall safety within the facilities while intramural sports are active by instructing Gym/Field Supervisors directions to minimize potential injuries and risks

• Provide solutions and answers for any conflict or concern by the participants regarding the intramural sports program

• Evaluate and record Gym/Field Supervisors’ performance daily • Report all injuries and incidences that occur during intramural sports play to upper management • Conduct all Gym/Field Supervisor related duties in addition to the responsibilities of the Night Supervisor

Gym/Field Supervisor September 2013 to March 2014 UCSB Recreational Sports

• Supervise ongoing intramural sports games • Provide first aid to injured participants at the moment of their injury • Ensure all participants are signed on the respective intramural sports waiver and necessary documents • File legal documentation when recording the incidences of injuries

COMMUNITY INVOLVEMENT Alpha Kappa Psi June 2014 to Present Professional Coed Business Fraternity

• Was able to gain public speaking experience by being a lead presenter for a business proposal regarding the implementation of sensor technology in treadmills in order to enhance the quality of a person’s stride

• Able to improve event planning experience by being a key planner in obtaining and setting up catering and a venue for a fraternity banquet

• Help the fraternity develop a suit drive, a philanthropic project in which suits and professional clothing are donated and given to those in need of proper clothing for future employment

Eagle Scout 2005 to 2012 Boy Scouts of America

• Developed leadership and organizational skills by carrying out troop events and acting as the senior patrol leader of the troop

• Volunteered at annual events such as helping participants in Olympics for the Blind, and running game booths in a local Hawaiian festival

• Completed and conducted an Eagle Scout service project dealing with the planning and construction of first aid and emergency kits for the Gardena Buddhist Church, enabling the church to act as a sanctuary for the surrounding community if a natural disaster were to occur

TECHNICAL SKILLS • First Aid and CPR Certified • Proficient at Microsoft Office, Google Drive, and basic computer software

SOHAM TIKEKAR

EDUCATION

OBJECTIVE

EXPERIENCEWORK

LEADERSHIP

INTERESTS

SKILLS

Clean Energy Research Center, University of South Florida

TEDxGunnHighSchool

Campus Sustainability, UCSB

Biology, business, social/non-profit innovation, entrepreneurship, music production, photography, live DJ

Highly proficient in Adobe Photoshop, InDesign, Illustrator, Final Cut Pro, Microsoft OfficeExperience in HTML/CSS, Ruby on RailsUnderstanding of leadership and project management

To obtain a position and gain experience in the field of management and strategy consulting.

University of California, Santa BarbaraSanta Barbara, CA

09.2012 - Current, Expected Graduation: June 2016B.S. Biology - Genetic Engineering, and B.A Economics + Certification in Technology Management Program

3404 Bryant St; Palo Alto, CA 94306 | 510.364.8296 | stikekar@umail.ucsb.edu

Marie Knechtli 6548 Cordoba Rd. #8

Goleta, CA 93117 (510) 387-7903

marie_knechtli@yahoo.com Education: University of California Santa Barbara: Economics & Accounting Major; Japanese Minor Junior Standing, Expected Graduation: June 2016 Current Cumulative GPA: 3.7 Dean’s Honors: Fall 2012; Spring 2014 California Arts Scholar; Member of: CPA/Law Society, UCSB Accounting Association, Excursion Club Qualifications Summary:

• Exceptionally strong writing skills (SAT Writing score 800) • Resourceful and creative problem solver • Bilingual in English and Japanese • Great team player and self-sufficient hard worker with strong goal-oriented work ethic • Major courses completed/in progress: Econ 1, 2, 3A, 3B, 10A, 100B, 101, 118 • SBP course: ECON X430.30 - 003 Accounting Ethics

Computer Skills: • working experience with Quickbooks Accounting Software • working experience with Google Applications (Voice, Calendar, Contacts, Drive) • Microsoft Office Excel (with Accounting Applications), PowerPoint and Word • Artistically talented in Adobe Photoshop CS6,

Experiences: • Accounting Intern Supervisor at Aikido Kenkyukai International (Fall 2014 to present)

o Giving orientation to new accounting interns, teaching new interns to use Quickbooks accounting and related banking and payment websites

o supervising and checking other interns’ work, responding to shift summaries, delegating accounting tasks among interns and scheduling work shifts

• Accounting Intern at Aikido Kenkyukai International for 3 months Responsibilities included:

o Quickbooks (categorizing and adding transactions, monthly bank reconciliations, creating sales receipts/expenses/deposits, receiving payments)

o head intern in charge while boss was out of town, ordering/updating inventory, signing up new members

o receptionist/bookkeeping work for Santa Barbara and Los Angeles dojo locations • Law Enforcement Volunteer at Piedmont Police Department for 3 years

Responsibilities included: o discipline in paperwork, emphasis observation, attention to detail o community outreach and event planning/execution

• communication and independence developed from 6 years of experience as a Jack London Youth Soccer League Referee o accurately apply rules in a fast paced environment o conflict resolution and leadership skills

Other Interests: o Enthusiastic hiker, camper and backpacker o Creative artist o passionate about other cultures