Origins io columbia univ jan 2014
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Transcript of Origins io columbia univ jan 2014
Team 6Interviews today: 5Total interviews: 49
2
INTERVIEW BREAKDOWN Students Teachers Parents Administrators Tech Expert TOTAL %
Day 1 8 3 3 1 0 15 31%
Day 2 3 4 4 1 0 12 24%
Day 3 11 2 0 2 2 17 35%
Day 4 0 1 4 0 0 5 10%
TOTAL 22 10 11 4 2 49 -
% 45% 20% 22% 8% 4% - -
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DAY 1
(Initial idea)MARKETPLACE
Key Partners
•Analytics•Cloud Provider•Development Resource•College / SAT Prep Centers
Key Activities
•Data Maintenance (Pathways)•Web Maintenance & Development•Relationship forming (Marketplace)•Grassroots evangelism
Value Propositions
Simple uncluttered interface
•Discover career options; self assessment•Research career options•Career pathways•Career planning platform•Connect to mentors & coaches (marketplace)
Flow:1)Search / Test2)Career Options3)Pathways4)Coaching / Mentoring5)Facility for managing information
Customer Relationships
•Self Service•Community forums•Sales Pitches > Contracts•Progress Reporting•Drip marketing campaigns (marketing automation)
Customer Segments
•High School Students•School District (administrators, teachers, guidance counsellors)•Parents of Students•Career Coaches•Mentors
Key Resources
•Web & Mobile Engineer•Offshore Dev Team•UX/UI Design•Open APIs (Data)•Academic expert / Occupational therapists•AWS / Cloud infrastructure•IP (domain, trademark/servicemark, incorporation)
Channels
•Test prep centre partners•Parent magazines advertising•Direct to user (individual/self serve website)•Parent Teacher Meetings•Sales presentations to teachers & school admin•Presentations at conferences/ white papers•Online advertising
Cost Structure• Technology – Engineering & Platform• Customer Acquisition
Revenue Streams2 options: •Freemium – Search = Free; Pathways = Paid•Free – Advertising & Sponsorships
Value PropositionsSimple uncluttered interface• Discover career options; self
assessment• Research career options• Career pathways• Career planning platform• Connect to mentors & coaches
(marketplace)Flow:1. Search / Test2. Career Options3. Pathways4. Coaching / Mentoring5. Facility for managing information
Customer Segments
• High School Students
• School District (administrators, teachers, guidance counsellors)
• Parents of Students
• Career Coaches
• Mentors
DAY 1
6
DAY 1 DAY 2 = PIVOT!
HYPOTHESIS ACTIONS RESULTS ITERATE
Marketplace for HS students and mentors = Value
Interviewed students, teachers, and parents.
FALSE(1) Security concerns(2) No clear
incentive for mentors
Drop it.
Simple career search and planning = Value
TRUEStudent engagement and ownership are the real needs.
Focus on it. Introduce ELI5 style.(Explain Like I’m 5)
HS Guidance counselors = Channel
FALSEMostly takes care of logistics.
Drop it.
Key Partners
• Cloud Providers
• Analytics• Development Resource• College / SAT Prep
Centers
Key Activities
• Algorithm development• Compose ELI5 renditions
of raw data• Web Maintenance &
Development
• Data Maintenance (Pathways)
• Relationship forming (Marketplace)
• Grassroots evangelism
Value Propositions
• One step career path search
• Career planning platform
• Natural language interpretation
• De-cluttered interface
• ELI5 style
Simple uncluttered interface• Discover career options;
self assessment• Research career options• Career pathways• Connect to mentors &
coaches (marketplace)Flow:1)Search / Test2)Career Options3)Pathways4)Coaching / Mentoring5)Facility for managing information
Customer Relationships
GET: • Grassroots evangelismKEEP: • Gamification & ELI5• Drip marketing
campaigns (marketing automation)
GROW: • Referral competitions
• Self Service• Community forums• Sales Pitches > Contracts• Progress Reporting
Customer Segments
• High School Students aged 14-18 with household incomes of $40,000+
• School District (administrators, teachers, guidance counsellors)
• Parents of Students• Career Coaches• Mentors
Key Resources
• Full Stack Engineering Team (UX/UI, Cloud, Mobile, Web)
• Writers• IP (algorithm)• Open APIs (Data)• Web & Mobile Engineer• Offshore Dev Team• Academic expert /
Occupational therapists• AWS / Cloud
infrastructure
Channels
• High School Teachers• Direct to user• Test prep centers• Parent magazine ads• Online ads
• Parent Teacher Meetings• Sales presentations to
teachers & school admin• Presentations at
conferences/ white papers
Cost Structure• Technology – Engineering & Platform• Customer Acquisition• Writers
Revenue Streams2 options: • Freemium: Free with ads. Pay to remove ads.• Free – Advertising & Sponsorships
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DAY 2 DAY 3 = some iterations
HYPOTHESIS ACTIONS RESULTS ITERATE
Generates profit 100% from advertising
Crunched numbers. FALSELoss even at target market share
Come up with a new revenue model.
All HS students need a career search tool.
Interviewed more students and teachers.
FALSEFound no interest from Freshman/Sophomore.
Narrow our archetype to Juniors and Seniors.
ELI5 style would improve student engagement.
TRUEPositive feedback
Keep it.
CHANNELS, GET, GROW, $
High School Teachers + Direct-to-User
Student runs free searches
Create account and save searches
$10 or refer 10 friends to unlock more features
Referral*See $ numbers at the end of presentation.
Key Partners
• Universities• Test Prep Centers• Cloud Providers
Key Activities
• Algorithm development• Compose ELI5 renditions
of raw data• Web Maintenance &
Development
Value Propositions
• Career discovery - simplified
• Career planning - gamified
• Natural language interpretation
• De-cluttered interface
• ELI5 style
Customer Relationships
GET: • Grassroots evangelism• Online and print media
advertisingKEEP: • Gamification & ELI5• Drip marketing
campaigns (marketing automation)
GROW: • Referral competitions
Customer Segments
• High School Juniors & Senior aged 16-18 who are unsure of their career/college choice
Key Resources
• Full Stack Engineering Team (UX/UI, Cloud, Mobile, Web)
• Writers• IP (algorithm)• Open APIs (Data)
Channels
• High School Teachers• Direct to user
Cost Structure• Technology – Engineering & Platform• Customer Acquisition• Writers
Revenue Streams• Freemium: Free with ads & hidden content. Pay to remove
ads and reveal additional content• Partner Advertising - $11.4M (1% of College Adv. Spend)• Subscription - $2.1M (25% of Target as paying)
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DAY 3 DAY 4 = $ Day
HYPOTHESIS ACTIONS RESULTS ITERATE
Users like our new freemium referral model.
Interviewed students.
TRUEPositive feedback. Received some idea of WTP.
Keep it.
Our cost estimations make sense.
Validate the cost estimations with tech experts
TRUECost estimates are in line with industry averages.
Keep it.
Market size estimation
Launch a targeted ad campaign on Facebook.
See results at the end of DAY 5.
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USER FLOW• Sketch user flow chart• Start building wireframe
Key Partners
• Universities• Test Prep Centers• Cloud Providers
Key Activities
• Algorithm development• Compose ELI5 renditions
of raw data• Web Maintenance &
Development
Value Propositions
• Career discovery - simplified
• Career planning - gamified
• Natural language interpretation
• De-cluttered interface
• ELI5 style
Customer Relationships
GET: • Grassroots evangelism• Online and print media
advertisingKEEP: • Gamification & ELI5• Drip marketing
campaigns (marketing automation)
GROW: • Referral competitions
Customer Segments
• High School Juniors & Senior aged 16-18 who are unsure of their career/college choice
Key Resources
• Full Stack Engineering Team (UX/UI, Cloud, Mobile, Web)
• Writers• IP (algorithm)• Open APIs (Data)
Channels
• High School Teachers• Direct to user
Cost Structure• Technology – Engineering & Platform• Customer Acquisition• Writers
Revenue Streams• Freemium: Free with ads & hidden content. Pay to remove
ads and reveal additional content• Partner Advertising (Colleges spend 1.1bn annually in adv.)• Subscription - $2.1M (25% of Target as paying)
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DAY 4 DAY 5 = !!!
• Gathered feedback from more students DAY 4 morning. Identified 0% interest!!
• “Do we have a business?!”• “Are we focusing the wrong customers?!”• “Should we go for college students?!”• “Who are the competitors in that market?!”?
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DAY 4 DAY 5 = !!!
• Reassessed the situation.• Found:
• The high school we interviewed has highly competitive admissions process, high graduation rate, etc.
• We were interviewing the wrong archetype!
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DAY 4 DAY 5 = GAIN!
• Archetype hypothesis confirmed!
• Our primary archetype is a high school junior or senior who is UNSURE of his/her future.
Key Partners
• Universities• Test Prep Centers• Cloud Providers
Key Activities
• Algorithm development• Compose ELI5 renditions
of raw data• Web Maintenance &
Development
Value Propositions
• Career discovery - simplified
• Natural language interpretation
• De-cluttered interface
• ELI5 style
• Career planning – gamified (Postponed from MVP)
Customer Relationships
GET: • Grassroots evangelism• Online and print media
advertisingKEEP: • Gamification & ELI5• Drip marketing
campaigns (marketing automation)
GROW: • Referral competitions
Customer Segments
• High School Juniors & Senior aged 16-18 who are unsure of their career/college choice
Key Resources
• Full Stack Engineering Team (UX/UI, Cloud, Mobile, Web)
• Writers• IP (algorithm)• Open APIs (Data)
Channels
• High School Teachers• Direct to user
Cost Structure• Web/Algorithm Development – $51k (One-time)• Hosting and Maintenance – $70k (Ongoing per year)• CAC – $4.4m (Ongoing per year)• Writers – $25k (Ongoing per year)
Revenue Streams• Freemium model: Pay/refer friends to unlock features.• Subscription – $6.5m (25% of target as paying, per year)• Advertising – $60k (based on target page views, per year)• Partner Advertising (Colleges spend 1.1bn annually in adv.)
MARKET SIZEFACEBOOK AD RESULTS• Pay-per-click campaign• Target: U.S. high school juniors and seniors (age 15-18)• Landing page: www.origins.io
We’ve collected 124 email addresses in < 48 hours!
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2
3
MARKET SIZE
1 HS Juniors & Seniors = 6.8M
2 38% showed interest ina search tool = 2.8M
3 Capture 25% of this market= 646K
REVENUE ESTIMATION
TOTAL ESTIMATED ANNUAL REVENUE = $10 x 646k = 6.46m
COST ESTIMATION (in 1,000s)
SUNK ONE-TIME COSTS
Web/Algorithm Dev 41(30 days, 5.3 offshore staff, pricing average $41 per hour)
Writers 10 (1,000 hours @ $10)FIXED COST (PER YEAR)
Web/Algorithm Maintenance 60 (1.5 offshore staff per year)Writers 25 (0.5 writers per year)
VARIABLE COST (PER YEAR)
Hosting 11 (Linear cost directly proportional to traffic/customer count)
CAC 4,414 (Results based on CTR of Facebook campaign)
TOTAL ESTIMATED ANNUAL COST = 4.51mTOTAL ESTIMATED ANNUAL PROFIT = ~2m
NEXT STEPS• Improve demo. Launch video ad.• Launch Kickstarter.