Beekeeper Growth Strategy and Agile Transformation Overview

HHU Beekeeper Grow healthy Presented by HHU Consulting: Lukas Grote Ina Jonalik Johann Wiebold Lina Zaika Presenting to: Christian Grossmann, Founder of Beekeeper May 2018 HHU

HHU Problem Statement What to tackle? Continue the growth path while overcoming the VUCA challenges May 2018 HHU 2

HHU Recommendation What to tackle? Continue the growth path while overcoming the VUCA challenges Transform Beekeeper into an agile organization that is able to serve diverse industry needs Set up Scrum teams Focus on core industries: Hospitality, Manufacturing, Retail (Short - to Mid - term) Scale approach to more industries (Long-term) How to solve? May 2018 HHU 3

HHU Agenda 01 Situation Analysis 02 Strategic Alternatives 03 Implementation 04 Financials May 2018 HHU 4

HHU Situation Analysis May 2018 HHU 5

HHU Only highly efficient organizations can overcome the VUCA challenges Volatility Changing costumer needs Changing stakeholders BE BRAVE KEEP IT SIMPLE Uncertainty Technology disruption New players disrupt industries BEE PROACTIVE Complexity Organizational growth More communication lines BEE OPEN BRING OUT THE BEST IN EACH OTHER Ambiguity Individual customer needs Demand for personalization

HHU Beekeeper currently serves a broad base of cyclical industries with limited personnel Revenue distribution by industry 20% Total 118 (vs. 15 FY 2015) Employees Engineers 15 (vs. 2 FY 2015) 80% Hospitality, manufacturing & retail Other May 2018 HHU 7

HHU Beekeepers three core industries are hospitality, manufacturing and retail 80% of revenue 20% of revenue Hospitality Retail Manufacturing Other industries Seasonal industry High turnover rates Many off-desk employees May 2018 HHU 8

HHU Much effort is needed to coordinate the three independent engineering teams Dashboard & Analytics Client focus One employee experience Security & Integration User focus Technology focus May 2018 HHU 9

HHU Key Issues Satisfy industry specific needs Enable employees to show their full potential Ensure efficient org structure May 2018 HHU 10

HHU Strategic Alternatives May 2018 HHU 11

HHU To grow healthy, a clear decision regarding the industry and org structure is necessary 1. Decision: Industry decision 2. Decision: Organization structure Functional organization Industry focus Industry decision Oganization structure Agile Diversification organization May 2018 HHU 12

HHU First, it needs to be decided whether an industry focus or diversification has the most potential 1. Decision: Industry decision 2. Decision: Organization structure Functional organization Industry focus Industry decision Organization structure Agile Diversification organization May 2018 HHU 13

HHU Beekeeper could either decide for an industry focus or continue with diversification 1. Decision: Industry decision Focus on one of the three core industries Strengthen organization and employee commitment Aim to be the leading service provider in one industry Industry focus Grow with industry pace Embrace and leverage current client base Set apart from competitors by enhancing future industry portfolio Diversification May 2018 HHU 14

HHU Three criteria have been selected to make the industry decision 1. Decision: Industry decision Cultural fit to Beekeeper Organizational feasibility Growth potential May 2018 HHU 15

HHU Beekeeper could either decide for an industry focus or continue with diversification High Medium Low 1. Decision: Industry decision Industry focus Diversification Growth potential Organizational feasibility Cultural fit to beekeeper May 2018 HHU 16

HHU Diversification of the industry portfolio ensures growth and leverages Beekeepers current clients High Medium Low 1. Decision: Industry decision Industry focus Diversification Growth potential Organizational feasibility Cultural fit to beekeeper Grow with industry pace and stay disruptive May 2018 HHU 17

HHU Beekeepers three core industries are hospitality, manufacturing and retail Short- to Mid-term Long-term Diversification by leveraging current core industry portfolio Identify further industries based on selected criteria Diversification Seasonal industry High turnover rates Many off-desk employees Hospitality Retail Manufacturing May 2018 HHU 18

HHU Based on the decision to keep a diversified portfolio, a suitable org structure will be selected 1. Decision: Industry decision 2. Decision: Organization structure Functional organization Industry focus Industry decision Organization structure Agile Diversification organization May 2018 HHU 19

HHU Based on the decision to keep a diversified portfolio, a suitable org structure will be selected 2. Decision: Organization structure Functional organization Agile organization + + Well- structured Clear responsibilities Functional expertise and competencies Fast reaction possible Diverse teams Highly-product focused - - Slower processes More suitable for traditional businesses Change will take longer Potential mis-communication due to cross-functional employee background May 2018 HHU 20

HHU An agile organization enables Beekeeper best to continue a healthy growth 2. Decision: Organization structure Functional organization Agile organization + + Well- structured Clear responsibilities Functional expertise and competencies Fast reaction possible Diverse teams Highly-product focused - - Slower processes More suitable for traditional businesses Change will take longer Potential mis-communication due to cross-functional employee background May 2018 HHU 21

HHU As an agile organization, Beekeeper can continue to grow with a diversified portfolio 1. Decision: Industry decision 2. Decision: Organization structure Functional organization Industry focus Industry decision Organization structure Agile Diversification organization May 2018 HHU 22

HHU Continue disrupting communication in various industries with an agile organization May 2018 HHU 23

HHU Implementation May 2018 HHU 24

HHU What does agile working look like? Continuous delivery of potentially shippable products Cross-functional teams Daily face-to-face interaction Self-organized teams Teams are enabled to make their own decisions Every team has the skills to deliver the product independently Team member align daily to avoid bottlenecks Delivery of Product Increments on a 3-4 weeks basis May 2018 HHU 25

HHU Working agile results in benefits for the organization Increased motivation due to continuous improvement of ways of working Opportunity to work creatively Personnel development opportunities Employees Continuous delivery of product increments Continuous improvement of the product Products Adaption to product needs Costumer feedback is incorporated Costumers Faster time-to-market Healthy scalability Organization May 2018 HHU 26

HHU In a Scrum Team every role has responsibilities and communication is supported Events: Daily Planning Review Retrospective Product Owner (PO) Communicates with the stakeholders Has the product vision Responsible for prioritization Scrum Master (SM) Makes sure that Scrum methodology is applied correctly Has the teams back Development Team 3-7 people Works on the product Develops the increments Is self-organized an reports to nobody May 2018 HHU 27

HHU Main teams at HQ, local sales and marketing staff London TBD Sales & Marketing Berlin Sales & Marketing SF Sales & Marketing Sales & Marketing Zurich HQ main teams May 2018 HHU 28

HHU We envision an agile organization with dedicated sales & marketing teams Management Board Core scrum team Hospitality scrum team Retail scrum team Manufacturing scrum team New scrum team Sales & Marketing Support functions 1 SM 1 PO 3 Dev. As first industry team As first industry team 1 SM 1 PO 6 Dev. Agile Coach SF London Berlin TBD May 2018 HHU 29

HHU We envision an agile organization with dedicated sales & marketing teams Sales & Marketing SF London Berlin TBD Single clients touchpoint Trained for industry needs Staffing on demand Trained for industry needs on-site service Client arena offering May 2018 HHU 30

HHU Change Management needs a clear process to avoid frustration and confusion Strategy Design Design strategy according to the company s strength and customer demands Transition Organization Preparation for change Jobs Culture Clear communication May 2018 HHU 31

HHU Transition will be communicated and executed in an employee-friendly manner Transition Relocation assessment Open dialogue Scrum training Scrum training Week 1: Management Intensive assessment about potential relocation of employees One day SCRUM training for every single employee One day SCRUM training for every single employee Week 2 : Teams May 2018 HHU 32

HHU Outlook Diversification of industry portfolio to mitigate cyclicality risk Requirements Railway Event management Less seasonal Not cyclical Transition needs due to Fast moving consumer goods Banking disruptive landscape Landscape mixed between established and new companies May 2018 HHU 33

HHU Financials May 2018 HHU 34

HHU Action plan Time Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 2020 Costs p.a. tsd One-off 200.00 $ 700.00 $ 350.00 $ 100.00 $ 80.00 $ 10.00 $ 1,440.00 $ Agile Coach Scrum Masters Trainings Pot. employee relocation Team Workshops Agile Software Impl. $ $ 40.00 14.00 $ 50.00 104.00 $ Sum May 2018 HHU 35

HHU We advise a venture loan Initial Public Offering Unfavorable market environment Too early Additional funding round Dilution of voting rights Venture loan Upcoming product low interest rates May 2018 HHU 36

HHU Risks and contingencies I. Organizational changes and agile organization will not be accepted by employees Set up holistic change management plan Likelihood II. Clients expect industry focus on Beekeeper Specialized teams with industry experts I. II. III. III. Data security concerns of stakeholders Ensure alignment with DSGVO Impact May 2018 HHU 37

HHU Wrap-up Requirements Clearer responsibilities Frustration and confusion Agile organization Pace slowdown Split between core product and industry Complexity increase May 2018 HHU 38