First of all… “Title-page” 5 slides plus cover-slide. Excel for numbers Name ALL your files Team-name on spread-sheet Source!
Lessons Learned Set the Stage Customers and Customers´ Customers TAM and TAD Where on the TALC Whole Product The Value Chain/The Eco-system
The Scene, October 2004 (rainy) 1. What business are they in? service or hardware or both 2. The Decision: –Ferries or planes –Where to go? –And then…..
Assets 1. Proprietary and patentable hardware 2. Experienced co-founder and well- positioned advisors 3. Singapore offices 4. First mover 5. Unfair advantage
Challenges 1.Two location 2.Money? Long-term, short-term 3.Other players in and entering the market! 4.Technology 5.Demand? 6.Regulations 7.First mover
Questions about the decision 1. Who are their customers? 2. Who are their customers´ customers? 3. What problem does World Indigo solve for the customers and their customers?
Total Available Market vs. Total Addressable Market For Flights, consider: Passengers Short-haul Private aviation For Ferries, consider: Passengers Ferries English channel, Singapore, Hong-Kong, Indonesia, Philippines
Where on the TALC? Adapted from: Moore (2002), Crossing the Chasm, and Wiefels (2002), The Chasm Companion. Chasm Early Market Bowling Alley Tornado Main Street Total Assimilation Innovators Early Adopters Early Majority Late Majority Laggards Customers with new ideas Low-hanging fruit but beach-head?
Next Target for World Indigo? Ferry China Airline China Ferry UK Airline US Airline Russia Airline UK
World Indigo’s Whole Product Mobile Access In- flight and onboard ferries Roaming service Nanocells Consolidated billing service Maintenance of nanocell System integration Voice connection (both GSM and CDMA) Multimedia entertainment content (planned) SMS connection
The Value-chain, a.k.a. The Eco-system Roaming Hard/Software Providers Carrier Passenger Recipient System´s Integrator Mobile Data Clearinghouse Communication Service Provider Carrier Recipient
How to Assess Ideal Target Customers Each new industry and new country changes the score! Adapted from: Wiefels (2002) The Chasm Companion. Weights were taken from the book, but could be modified based on your situation. Ratings assume a 5 point scale where 1 = farthest from Ideal and 5 = Closest to Ideal. customer B in Russia customer A in Singapore A B
Defining the Segment The target customer is the segment's center of gravity. Actions directed at this target impact the entire segment. 50% IN 50% OUT * Center Point: The “Ideal” Target Customer 80% IN 20% OUT 20% IN 80% OUT * * * * * * * * * * * * * * * * * * 1.Avoid defining segments by their boundaries—leads to loss of segment discipline. 2.Define segments by the center point— the “ideal” target customer. 3.Commit to 100% whole product for the customer at the center point. 4.Address all marketing communication to the customer at the center point. 5.Design sales incentives to win target customer segments Adapted from: Wiefels (2002) The Chasm Companion.
Challenges facing a startup that is “born global” Source: O'Hara-Deveraux, Maureen, and Johansen, Robert (1994) GlobalWork: Bridging Distance, Culture, and Time, Jossey-Bass, San Francisco.