Disrupting Employer Communication for Mobile Employees

Beekeeper Disrupting how employers reach mobile employees Shuyuan Chen John Jenkins Jr. Philip LaMaster Kyle Packer Eller School of Business 1

Agenda Situation Problem Analysis Recommendation Implementation Financial Projections Risk Summary 2

Beekeeper Is At A Crucial Point High Growth Startup Multiple Customers and Industries Transition from social networkin g to work messaging Beekeeper sits at an inflection point Organizati on structure changes Changing client dispositio n 3 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Whats the problem? Beekeeper engineering resources are strained (Only 12% of staff are engineers) Undefined customer base results in complex customer variations 4 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

What are our choices? Should we continue or sell-out? Which industries should we sell in? Should we customize or standardize core product? 5 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

The Three Industry Focus Is the Right Balance Will this grow revenue sustainably? Can we do this with our resources? Hospitality Only Standardize Customize Big Three Focus Standardize Customize Broad focus Standardize Customize 6 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Hospitality Focus on opportunities only in hospitality Pro Con 7 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

The Big Three Focus Focus on opportunities only in manufacturing, retail and hospitality Pro Con 8 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Broad Focus Create standardized product that can be applied across any industry Pro Con 9 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

What can we do about it? Define Beekeeper is a product for the Three Core Industries Differentiate Customize our product for each industry Deploy Organize salesforce and engineering around three industries 10 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

How can we do it? 2018 Q2 2019 Q1 2020 Q1 Q3 Q4 Q2 Q3 Q4 Q2 Leadership -Communicate -Restructure -Recruit Engineering -Develop industry core product -Customize for VIP customers Sales & Marketing - Develop sales leads - Marketing push 11

Leadership Phase 1: Communicate Internal: Communicate key strategies and upcoming changes External: Phase out legacy clients outside target industries over 12-18 months Begin expanding engineering teams Leadership Corporate Functions Manufacturing Retail Hospitality Phase 2: Reorganize Sales Phase 3: Sustain Seek further Series B&C funding Engineering 12 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Engineering Phase 1: Develop industry-core products Develop three customized industry templates that meet ~80% of industry needs Phase 2: Develop VIP customizations Phase 3: Sustain 13 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Sales & Marketing Phase 1: Initial Customer Development Expand initial VIP customers per target industry Phase 2: Marketing Marketing push to reach mature clients that aren t early adopters Phase 3: Sustaining Continuous sales/marketing efforts 14 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Risks & Mitigates Risk Impact Probability Mitigation Lower than expected client adoption in core industries Medium Low Early client input on product features Proactive updates to correct customer difficulties Lose Contracts in Core Industries High Medium Proactive integrate with other industry systems Engineering demands grow after restructuring Medium Medium Manage and prioritize client expectations vs. staffing levels 15 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Financial Investment Incremental Costs After Reorganization 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 2018 Q2 Q3 Q4 2019 Q2 Q3 Q4 2020 Q2 Q1 Q1 16 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Sustaining our Growth Cumulative Costs Are Covered By Projected Funding 2019 Q1 We project Series B funding in two rounds of 15 and 10 million respectively. 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 2018 Q2 Q3 Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Total Funding Cumulative Cost 17 Recommenda tion Implementati on Situation Problem Analysis Finances Risk Summary

Summary Communicate with internal teams and external clients Define Differentiate Deploy Develop core industry products for retail, manufacturing and hospitality Expand into target major companies within three target industries 18

Back-Up: Cost Assumptions Head Count Rate Cost Incremental Costs After Reorganization 2,500,000 Engineering Core Product 20 120,000 2,400,000 2,000,000 Engineering Customize 10 100,000 1,000,000 1,500,000 1,000,000 Sales/Marketing Sales 30 80,000 2,400,000 500,000 Sales/Marketing Marketing 10 65,000 650,000 - 2018 Q2 Q3 Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Office Expansion 5,000,000 Security/Legal expenses 500,000 19

Back-Up: Project Costs 2018 Q2 Q3 Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Engineering Core Product 240,000 480,000 480,000 480,000 480,000 - - - - Engineering Customize - - 100,000 300,000 300,000 300,000 - - - Sales/Marketing Sales Sales/Marketing Marketing - 240,000 480,000 480,000 480,000 240,000 240,000 240,000 - - - - 65,000 130,000 130,000 130,000 65,000 - Office Expansion - - - - - 1,250,000 1,250,000 1,250,000 1,250,000 Security/Legal expenses - - - 50,000 50,000 100,000 100,000 100,000 100,000 Total Cost 240,000 720,000 1,060,000 1,375,000 1,440,000 2,020,000 1,720,000 1,655,000 1,350,000 20