Sembang Bisnes bersama Lilyana Abdul Latiff, Aleph One & Shaza Hakim, Stampede Designs

organised by JomWeb and NEF@ The Foundation Damansara Perdana

16 April 2016

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AGENDA FORMAT

9:00 Part I: (Lily)10.30 Break10.45 Part 2: (Lily)

12.15 Lunch

14.00 Part 3: (Shaza)15.30 Break 15.45 Part 4: (Shaza)

17.00 END

• STORY MODE• INTERACTIVE

• YOU CAN INTERRUPT• ASK A LOT OF QUESTIONS

• LOTS of TIPS

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What About Lily?

EntrepreneurSystems DesignerCourseware DesignerWeb DeveloperDesign & User ExperienceEvent ManagerTrainerIT EvangelistCTO

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in the 90’s

• Graduated from Univ of Iowa with BSc in Computer Science and minor in Business

• Worked with MIMOS and helped launched Multimedia Super Corridor

• Worked for several “startups” which included • IT Consulting• Smart School systems development• Telemedicine systems design• Office Automation for LHDN (which is still

being used today).

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in the early 2000s Web Development Era

• First foray into own business: Aleph One• Web Development• Petronas.com (almost 5 years - 3 iterations)• PetronasTwinTowers.com• GaleriPetronas.com• PetronasDagangan.com• ECER Dev Council• Khazanah• etc etc

• Training & Instructional Design

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in the Mid 2000s Event Management Era

Ran multi-million dollar events for• Ministry of Tourism• Khazanah Nasional Berhad• Maybank and CIMB• Petronas

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But my heart had always been in product and technology development

Then came Joota.com (launched Sept 15, 2013)

Social Media around contentBusiness Valuation at USD10 millionProduct Development & RnD worth RM5 millionGlobal Traffic

Social Media site withAdserving and Social Media CampaignAnalyticsMobile APpSpecial project: school.joota.com

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AND THEN … We razed it to the ground

Raised RM 7 million ringgitBurned RM 7 million ringgit

Some HUGE LESSONS learnt !

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2014 - 2016

• Revitalised Aleph One• Introduced “CTO-As-A-Service”• Kickstarting a new startup

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Intuglo

TheBTribe

The Startups I Am Helping Now …

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Intuglo

TheBTribe

The PARALLEL ENTREPRENEUR

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So WHAT ACTUALLY HAPPENED in Joota?

Too much money

Management by Committee

Obsession with “perfect product”

No idea who our target market were

Did NOT go out to meet potential clients

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How In The World You Raised RM 7.6 million?

Company was valued at USD 20 million even before it launched anything

CEO (and largest shareholder) = RM 1.0M

Angel Investor “The Datin” = RM 3.5 M A Ben Laden = RM 900k A Pakistani “Tony Stark” = RM 1.75M

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How In The World You Raised RM 7.6 million?

Company was valued at USD 20 million even before it launched anything

CEO (and largest shareholder) = RM 1.0M

Angel Investor “The Datin” = RM 3.5 M Ben Laden = RM 900k A Pakistani “Tony Stark” = RM 1.75M

8% of the company

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Lessons Learnt

• We had an awesome team - but without a strong leader

• Over-thinking

• Product obsessed rather than customer obsessed

• It IS possible to raise THAT amount of money - but you need connections and “street cred”

• Built an awesome technology

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What did I Learn as CTO of Joota?

• App Development on the cloud

• Versioning using GIT

• Managing remote teams - Bandung, Langkawi, Guang Zhou, San Francisco

• Developed some best practices for Product Development

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For the Techies: What Was Joota Made Of??

Systems DevelopmentInfra MonitoringSocial Monitoring & EngagementEmail BlastingOffice Automation & CollaborationOffice File Back Up and SyncingAccounting

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Let’s Take Break

After that“How To Run a Tech Product Company”

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So What Does It Take To Run a Tech Product Company ??

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The Technopreneur Body of Knowledge

Marketing

Finance

Product

&Development

Identification+ of+MarketPricing+StrategyMarket+AccessMarketing+ChannelsSales+ChannelsFullfilmentCustomer+Support

Product(DefinitionProduct(Development

Technology(MgmtMatching(features(to(customer(needs

Reliability(of(delivery/productConstant(enhancement

Business'ValuationBusiness'ProjectionsFinancing'StrategyExit'StrategyInvestor'Mgmt

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Marketing & Commercialisation

• At the end of it, the aim of a business is to make a profit - even for social entrepreneurship

• So how do you sustain sales?

• How do you sustain customer loyalty

• How do you GET customers?

copyright BrandGeeks Inc

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copyright BrandGeeks Inc

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Any questions so far? Any stories to share?

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Marketing

Finance

Product

&Development

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NUMBERS! NUMBERS!

• Why most good “pitching” fail - especially among bumi startups

• We don't APPEAR to have a grasp of numbers

• We are EMBARRASSED by the talk of money

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WHAT IS BUSINESS VALUATION ?

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Aleph one vs Jootaa business with revenue & profits

have generated a minimum RM 5 million in sales (2007 - 2010)

strong portfolio and clientele

business valuation: RM 40,000

a business with NO revenue

NO Clients, No Profits

business valuation: USD 20 million

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Aleph one vs Joota

Valuation Method: FIRM Value

(Tangible + Intangible Assets) - Liabilities

Valuation Method: FUTURE Value

Has got to do with

NET Present Value Internal Rate of Return Discounted Cash Flow Risk comfort

Valuation Method: PRICE EARNING (PE)

Has got to do with

Market value of “similarish” companies

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FOUND THIS ON SLIDESHARE

Basic Startup Valuation “How Much Are You Worth” by Eric Tachibana

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IS IT A MUST TO FUND RAISE??

only Cradle Grants: CIP 150, CIP 500

after that self-funded through good ole SALES

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Any questions so far? Any stories to share?

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Marketing

Finance

Product

&Development

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What is THEIR Formula?

Products or Services that delivers their brand promise and provides value CONSISTENTLY will get REPEAT BUYERS

Happy Customers will bring NEW Customers through Word-of-Mouth

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So HOW TO BUILD GREAT Products or Service by US MERE MORTALS?

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What VALUE are you bringing to your customers??

Cheaper optionEasy * Saves time * Efficiency

Sense of Security * Healthier Option Vanity/LuxuryCharity/Social

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DEFINING a TECH PRODUCT

Starts with Business Model CanvasProduct Definition

Product Architecture

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Business Model Canvas

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The Typical Systems for SMEs in the 21st Century

• Cloud-based systems. No longer need to purchase outright, own, maintain or upgrade hardwares

• Systems and office automation that you can rent monthly and control monthly opex aka “Software-As-A-Service (SAAS)”

• Build a custom system ONLY if you really need to.

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2 types of tools:

Product Development & Infra

Office Automation

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Product Development & Infra

Office Automation

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DNS Management

dev staging live

My current “hot template”

for tech startups

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Monthly Costs?

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Final Q&A

Any questions so far? Any stories to share?

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