Saturday, November 1, 2014
Big Data: From Hype to Value
Sunday, November 4, 2012
The Impact of Big Data
Ali Riaz, Attivio
Ari Gesher, Palantir
Fred Shilmover, InsightSquared
Colin Hill,GNS Healthcare
Sam Bisbee, Cloudant
Kent Bennett Bessemer Venture Partners (moderator)
Probably the biggest audience for a non-keynote talk today!
Great panelists from all sides of big (and small but very messy) data - healthcare, military, retail, internal productivity and HR.
Turning the huge streams of data captured by new technology into useful information for making decisions or understanding complex systems (from pleasing customers to treating diseases).
Social Media in the Enterprise
Thanks to:
An Le, Yammer
Steve Garrity, Hearsay Social
Daniel Freeman, Atlassian
Michael Scissons, Syncapse
Tom Davenport (moderator)
Employees will find a way to use the tools they need to do their job - despite internal company rules.
Coordination of social networks and enterprise tools is already happening, but most companies find they are still using multiple systems to communicate or find information.
Mobile allows real time feedback from and to customers but also problem solving on the go (such as code checking in a bar with your team).
Companies' culture really decides how internal social networks are used - some management will welcome open discussion and criticism while some react badly...
Subscription Business Models: Evolution or Fad?
We will debate the merits and flaws of the increasing proliferation of companies (not just cloud software+services) adopting a subscription-business model (i.e. subscriptions, usage, metering, etc.). For example, what consumer behaviors are driving this change? Or is the drive coming more from the investor community rewarding recurring business models with higher valuations? What are the challenges with this type of business model, specifically for each of the panelists and how it impacts their future strategy.
Moderator:
Paul Maeder, General Partner, Highland Capital Partners
Panelists:
Daniel Freeman, VP or Product Marketing, Atlassian
Hope Neiman, Chief Marketing Officer, EMN8
Shawn Puddester, Director, Polycom
Sam Clemens, InsightSquared
Brent Chudoba, VP, SurveyMonkey
Q. You work for VC companies, which means you have a high cost of capital. A lot of people have a lower cost of capital than you do. Why rent instead of selling?
- VCs value the monthly recurring revenue stream than getting cash upfront and capturing a percentage of the LTV. If I have 30 days or a year to sell them more products and services because they are a subscriber, we can get more value.
- The predictability is good.
- There is an alignment between the pricing system and the type of thing you're building.
- We price for market share.
- With competition in market place with open source technologies, etc., our goal is to have massive adoption. This allows us to have
- Upsell is really the magic on the consumer side. What are we acquiring a customer for? We have extremely robust models for that. Our cost for acquisition has to be less than half the cost of the lifetime value of the customer.
- We segment churn of those who are active vs. those who are passive.
- At my prior two companies, less than a 10% churn rate for active customers. I don't know very many less than 5%
- There is a natural floor for churn, like the natural unemployment rate
- Another thing is how do we calculate LTV? If you have a 5% churn rate for each month. So your customers are lasting for 20 months (1 month divided by 5%). So that means that your customers last for 20 months. If your subscription is $1000, then your LTV is $20,000.
- What happens if a customer comes back? They quit in 1 month, but come back in month 4. If you hold the data, that can be really valuable.
- SurveyMonkey: When you have a fairly low-priced service, it's a good way to let people test your product. Whether that's a free trial or freemium depends. But we are most successful in pockets like nonprofits and small firms, where they may not want to get a budget for a subscription until they know it works. So freemium allows them to do some things, but if they want to export data or add more questions, they need to move to the paid model.
- Beach Body: We tried to get people to engage with a friend
- I like free trial, but I'm not a fan of freemium for startups. It's too easy to build something that people can use but not pay for. So go build something that people are willing to write you a check for.
- Freemium can be a cop out. Business doesn't start until you get paid for it.
- It's hard because we can shift new stuff and change prices and change currencies. We may want to reserve the right to have price increases. We may also want to change the subscription itself, such as moving from a monthly to a 3-month subscription.
- If you're running a subscription model, cost acquisition per customer divided by lifetime value is the most important ration. If CAC / LTV < 1, you probably don't have a value.
- In consumer it's a bit different, because you can grow the LTV because you have a lot more products you can upsell.
Q. For consumer companies, where you've already had a basic business model, what is the incentive to switch to subscription?
Shoedazzle actually got rid of the subscription model. At Little Black Bag, lots of new and trial items. At Rent The Runway, looking to do partnerships that become a secondary cash flow basis that is on the subscription model. Otherwise, you get a problem like Gilt and Rue La La where it gets tiring and people are sick of opening your email.
Q. What about customer support policies?
- In a consumer business, you have to have free returns today. In reality, people don't generally cash in as often as you think. At Beach Body, there was a less than 2% return rate.
- Just give people their money back. If it's $20 or $100, it's not worth upsetting them and having the customer yell on Twitter. Give it back, and give it back fast.
- Sure, but we don't want to upset our original user base.
Hardware & User Interface Design
Ian Bernstein,Orbotix
Matt Rodgers, Nest
Mariah Levitt, Continuum
Micah Yairi, Tactus Technology
Michael Grinich, MIT Startup Bootcamp (moderator)
Hardware poses some serious design development issues not usually associated with tech - how to prototype, get consumer feedback and iterate?
Combining physical design with user interface - create an open API to be truly adaptable and exciting!
The panel says haptic displays and texture feedback may be big in the future but simplicity and user-focus should be the number one priority.
Why are user interfaces of design tools so frustrating and unintuitive - market size and development time but could B-school students help?
First Panels: Future of Music
Huge thanks to:
Gary Liu, Spotify
Elias Roman, Songza
John Petrocelli, Bulldog Digital
Alex Luke, EMI Music
Steven Scheider (moderator)
A great turnout for an important subject - streaming, live, subscription...
FYI
20th most popular soundtrack to make love to in U.K.: Star Wars! Thanks Gary from Spotify
Mobile Advertising Panel
This panel will focus on how advertising is shifting to mobile and the effect on marketers, ad networks, publishers and users. How does mobile affect advertising strategies and associated ROIs for marketers? What is happening in performance based marketing?
Moderator:
Michael Wolf, Activate
Companies:
Kiwi Inc., Google, Jumptap, Mr. Youth
Summary: Q&A style between moderator and panelists.
Q. Introductory question
- Trend in social is that the story is becoming the ad unit. People want increased relevancy in what the content is.
- Advertising is playing a clear role in fueling what services people are consuming now. When you look at metrics like click through rates, brand impact studies, and so on and so forth, mobile is 2-6X more effective than PC and online equivalents. The lack of pixels is more advantageous because you have more share of voice - on a PC, you can have a lot of different ads and browsers. On mobile, you really can only have one ad at a time.
- It's crazy to think that mobile is the most personal device we have, but we have the worst ad experience on it.
- When I talk to my team, I ask them where are people are. Where are the gamers? Where are the consumers we want? We don't want to invade every mobile phone, just the ones that we want.
- Text formats are the easiest to execute. All advertising at the end of the day is information.
- From Google's perspective, we want to be sensitive to privacy. We treat privacy very seriously.
- In the long-term, it's the point that your phone is the single-point of access for a single user. For PC and tablets, you could be sharing this. But people in the household have their own phones, and so there's less noise, better data, and better targeting.
- What's the KPI that brands are looking at? For social, it's always been about engagement. And for engagement, it's been the amount of positive feeling. However, it's not immediate. People can love a brand, but that doesn't mean they are going to go out and buy it right away. Being a traffic driver doesn't incite an action that's going to tie back to a KPI.
- Ad buying can take place from CMS software that manages community conversations across Facebook, Twitter, etc.
- If you spent 2% on social and 1% on mobile, an ad agency isn't going to tell you how to optimize those channels. They're worried about the other 97% of spend that is above the line.
- A lot of gamers on facebook create fake accounts so the don't spam their friends with FarmVille requests. So we have to almost create our own gaming environment because of this dynamic.
- With social, ads become an experience. The more packaging you do, the more incentive users have to share it. Why not have an ad go viral?"
- Windows 8 is probably the new direction. Maybe they are too early, but I think that's where the industry is going to go.
- The ecosystem is changing so fast. Every year, there is a new phone. The industry is continuously changing.
- A problem with HTML 5 is adoption rates. Luckily with Android there is a fast release cycle.
- You have advertisers who may get bidded out of fixed inventory.
Q. When you talk about data and cookies, you've been talking about front-end. In my experience, it's been connecting the front-end to the back-end. Is that an issue? If so, what do you think is the solution?
- You're right - the issue is in the availability of inventory. On Apple's platform, for example, it accepts first-party cookies before third-party cookies.
- People are moving onto IFDA which is an identifier for ads. Users will be able to turn off of tracking for specific identifiers.
- Cloud is changing this like iCloud which recognizes that you have multiples devices.
- Infrastructure is being built around this to fix it.
- Anonymous ID will happen at some point, and float through the ecosystem. I think this issue will get solved pretty soon.
- From an analytics perspective, we are changing the way tracking is done and working with clients to get digital CRM and conversation tracking. This starts with device level or channel level. It's starting.
- It's getting cheaper and cheaper because there are so many other options. A big player like Weather.com will be able to sell 10% of their inventory, but then they have to get other things done.
- DataLogics and Targus provides closed-loop analytics...those kinds of analytics is coming to mobile.
- There is much more supply than demand for mobile ads. Where you may be able to see a premium is in silos of inventory like rich media and attaching third party data.
First Panels: Mobile Advertising
The mobile advertising panel is happening now:
Mihael Mikek, Celtra
Vishal Sapra, Mr.Youth
Jorey Ramer, Jumptap
Wook Jin Chung, Google
Jean-Paul Sanday, Kiwi Inc
Michael Wolf, Activate (Moderator)
Your most personal device - with you 24/7 but how can brands really make their ads relevant, engaging and a step forward from existing online?
(Geo location the next big thing or over-rated?)
Monday, October 31, 2011
Hot Startups @Cyberposium
- Chegg: online textbook rentals for college
- TinyCo: maker of beautiful, fun and engaging mobile games
- Birchbox: subscription-based luxe beauty samples service
- Warby Parker: delivers classically crafted eyewear at a revolutionary price point
- Boxee: maker of device to watch online video content from your TV
- Ustream: provider of live, interactive broadcast platform
- Pocket Gems: maker of free-to-play mobile games
Do be sure to check out their websites to learn more, and speak to the panelists at Cyberposium this Saturday, November 5, at Harvard Business School!
Wednesday, October 12, 2011
Cyberposium Preview: Panels and Panelists
- "eBooks: From Print to Digital": Traditional "print" materials are increasingly being consumed via digital devices. How will e-content be published and licensed in the future? Which devices will the mass-market adopt for their e-reading needs? Will paper-based books and traditional retail models interact with e-books going forward? Who wins and loses as ereading gains critical mass?
- "Cloud Apps for the SMB": Cloud services are radically transforming how small businesses operate. Web-based services like filesharing, video conferencing, CRM and social networking are being adopted at lower costs and with no training requirements. Which new entrants and emerging opportunities have the greatest distruption potential? How will revenue models evolve?
- "Bridging the Online/Offline Disconnect": New business models and mobile proliferation are unlocking powerful new services that connect online and offline behaviors. Consumers are increasingly integrating the internet into their everyday lives and receiving real-time services and information. How are "online" tools evolving to impact, enhance and disrupt our "offline" lives? How are business able to capture this value? Are these services too complex to benefit mass-market consumers?
- "Mobile Gaming": The mobile device is on its way to becoming a mass-market gaming platform. Multi-player and social features, freemium games and tablet versions are increasingly populating the market. How big will this market get and how are gamer demographics changing? Who will own the underlying platforms and will they implement tougher terms for game developers?
- Digital Media
- Enterprise
- Consumer Web
- Mobile

