team j worlds fastest computer - final - ver2

MAGNUS NOTITIAHardware company that provides increased processing

power for credit card companies, gene sequencing, and

trading desks.

Team J - World's Fastest Computer

Customers Interviewed: Yesterday 12 / Total 44Day 1 (3 Cloud, 3 Business Analytics, 1 Finance, 2 Defense)

Day 2 (4 Finance, 3 Business Analytics, 1 Life Sciences)

Day 3 (3 Channel, 3 Finance, 1 Life Sciences, 2 Business Analytics, 3 Others)

Day 4 (8 Life Sciences, 1 Channel, 3 Finance)

John Anderson Prasanna Sundararajan Howard Wang Max Williams Michael Lee

Genomics Scientist – Day in the Life

Problem:

Full gene

sequencing takes

days…

Today’s Solution:

Cheap, fast…LESS

ACCURATE sequencing

Start-up value proposition: Fast, accurate full sequencing at reduced cost

• Problem: Reduce

sequencing computation cost

• Solution: Reduce

sequencing time by 50x

• SAM: $440M

• Target: (1-2 years): $12M

• Business model: Server with

FPGA add-on card + software

sale + service

• Customer archetypes and

relationship articulated

Day 1 Day 2-4 Day 5

Identified 3 customer segments

Value proposition refinement

Finalized 1st Segment

Journey Overview

One size fits all

value-proposition:

“50x processing

power”

Life

Sciences

Credit

Card

Fraud

Trading

Desk

Value

Prop1

Value

Prop2

Value

Prop3

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Design boards

• Demonstration

• Software

development

• Service

Increasing processing

power by either:

•Installing hardware /

software platform

•Leasing space in our

cloud

for big data applications

• PR (Computing

Competitions, Free

Trials)

• Customer Services

(Training, Call

Support)

• Referrals, Feedbacks

Large to mid-size

organizations in the

following industries:

•Financial services

•Life sciences

•DOD/government

•Big data analytic firms

•Data centers

Organizations that

purchase physical units

Organizations that

purchase access to high

performance environment

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

• OEM

• VARs

• People

• Marketing/Sales

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

• Hardware Purchase + Software Subscription

• Pay-per-Usage Model

Business Model Canvas – Day 1

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Design boards

• Demonstration

• Software

development

• Service

Increasing processing

power by either:

•Installing hardware /

software platform

•Leasing space in our

cloud

for big data applications

• PR (Computing

Competitions, Free

Trials)

• Customer Services

(Training, Call

Support)

• Referrals, Feedbacks

Large to mid-size

organizations in the

following industries:

•Financial services

•Life sciences

•DOD/government

•Big data analytic firms

•Data centers

Organizations that

purchase physical units

Organizations that

purchase access to high

performance environment

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

• OEM

• VARs

• People

• Marketing/Sales

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

• Hardware Purchase + Software Subscription

• Pay-per-Usage Model

Business Model Canvas – Day 1

Very

vague =

NO idea

what we

are doing

Need to

identify

high-value

problems

in

different

segments

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Design boards

• Demonstration• Software

development

• Service

Increasing processing

power by either:

•Installing hardware /

software platform

•Leasing space in our

cloud

for big data applications

• PR (Computing

Competitions, Free

Trials)

• Customer Services

(Training, Call

Support)

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

• OEM

• VARs

• People

• Marketing/Sales >>> High-performance competition

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

• Hardware Purchase + Software Subscription

• Pay-per-Usage Model

Business Model Canvas – Day 2

BD Analytics:

Increasing data accessibility

by:

• decrease access time

Life Sciences

Big Data Analytics

Cloud Computing:

Decreasing network

congestion by:

• reduce the radix of

communications

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Design boards

• Demonstration• Software

development

• Service

Increasing processing

power by either:

•Installing hardware /

software platform

•Leasing space in our

cloud

for big data applications

• PR (Computing

Competitions, Free

Trials)

• Customer Services

(Training, Call

Support)

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

• OEM

• VARs

• People

• Marketing/Sales >>> High-performance competition

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

• Hardware Purchase + Software Subscription

• Pay-per-Usage Model

Business Model Canvas – Day 2

BD Analytics:

Increasing data accessibility

by:

• decrease access time

Life Sciences

Big Data Analytics

Cloud Computing:

Decreasing network

congestion by:

• reduce the radix of

communications

Customer

Archetype

and

Decision

Hierarchy

Customer

Segment

Specific

Value

Prop.

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Design boards

• Demonstration

(bake off)• Software

development

• Service

High Performance

Computing (combo):

Direct increase in

processing power

• PR (Computing

Competitions, Free

Trials)

• Customer Services

(Training, Call

Support)

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

• OEM

• VARs

• People

• Marketing/Sales >>> Competition (Bake Off)

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

Business Model Canvas – Day 3

BD Analytics:

Increasing data

accessibility by:

• decrease access

time

Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:

• reduce the radix of

communications

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel Processing

Financial Modeling

• Credit Card fraud

• Pricing strategies

• Pay-per-Usage Model

• Hardware Purchase + Software Subscription

• Hardware Purchase + Software Subscription

• Hardware Purchase + Software Subscription

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Design boards

• Demonstration

(bake off)• Software

development

• Service

High Performance

Computing (combo):

Direct increase in

processing power

• PR (Computing

Competitions, Free

Trials)

• Customer Services

(Training, Call

Support)

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

• OEM

• VARs

• People

• Marketing/Sales >>> Competition (Bake Off)

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

Business Model Canvas – Day 3

BD Analytics:

Increasing data

accessibility by:

• decrease access

time

Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:

• reduce the radix of

communications

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel Processing

Financial Modeling

• Credit Card fraud

• Pricing strategies

• Pay-per-Usage Model

• Hardware Purchase + Software Subscription

• Hardware Purchase + Software Subscription

• Hardware Purchase + Software Subscription

Aligning:

• Customer

Segment

• Value Prop

• Revenue

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Ex-executives

• Regional Sales Rep

• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

High Performance

Computing

• Direct increase in

processing power

• PR - Competitions,

Conferences,

Articles, Free Trials

• Solicit

Earlyvangelist

support at events

• Customer Services -

Training, Call Support

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives

- Regional Sales Rep

• OEM

• VARs

• System Integrators

• People

• Marketing/Sales – Competition (Bake Off)

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

Business Model Canvas – Day 4

BD Analytics:

• Increasing data

accessibility by

decrease access

time

• Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:

• reduce the radix of

communications

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel Processing

Financial Modeling

• Credit Card fraud

(Large Banks)

• Pricing strategies

Pay-per-Usage ModelHardware Purchase +

Software Subscription

Government

• (not DOD)

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Ex-executives

• Regional Sales Rep

• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

High Performance

Computing

• Direct increase in

processing power

• PR - Competitions,

Conferences,

Articles, Free Trials

• Solicit

Earlyvangelist

support at events

• Customer Services -

Training, Call Support

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives

- Regional Sales Rep

• OEM

• VARs

• System Integrators

• People

• Marketing/Sales – Competition (Bake Off)

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

Business Model Canvas – Day 4

BD Analytics:

• Increasing data

accessibility by

decrease access

time

• Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:

• reduce the radix of

communications

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel Processing

Financial Modeling

• Credit Card fraud

(Large Banks)

• Pricing strategies

Pay-per-Usage ModelHardware Purchase +

Software Subscription

Government

• (not DOD)

Refining:

• Partners

• Activities

• Relationships

• Channels

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Ex-executives

• Regional Sales Rep

• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

Credit Cards

Decrease the time to

access fraud

databases to make

faster decisions

• PR - Competitions,

Conferences, Articles,

Free Trials

• Solicit Earlyvangelist

support at events

• Customer Services -

Training, Call Support

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives

- Regional Sales Rep

• OEM

• VARs

• System Integrators

• People

• Marketing/Sales – Competition (Bake Off)

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

Business Model Canvas – Day 5

Trading Desks

Decrease the time to

process data to

arbitrage trading

decisions faster

Life Sciences

Decrease the time to

crunch DNA

sequences Financial Modeling

• Pricing strategies

Life Sciences

• DNA sequencing

Credit Card Fraud

(Large Banks)

Pay-per-Usage ModelHardware Purchase +

Software Subscription

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel Processing

• Server companies

• Cloud firms

• Chip makers

• Software developers

• Data aggregators

• Ex-executives

• Regional Sales Rep

• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

Credit Cards

Decrease the time to

access fraud

databases to make

faster decisions

• PR - Competitions,

Conferences, Articles,

Free Trials

• Solicit Earlyvangelist

support at events

• Customer Services -

Training, Call Support

• Referrals, Feedbacks

• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives

- Regional Sales Rep

• OEM

• VARs

• System Integrators

• People

• Marketing/Sales – Competition (Bake Off)

• IP

• Data Center

• Hardware purchase/board development

• Warranty/replacement parts

Business Model Canvas – Day 5

Trading Desks

Decrease the time to

process data to

arbitrage trading

decisions faster

Life Sciences

Decrease the time to

crunch DNA

sequences Financial Modeling

• Pricing strategies

Life Sciences

• DNA sequencing

Credit Card Fraud

(Large Banks)

Pay-per-Usage ModelHardware Purchase +

Software Subscription

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel ProcessingStartups

cannot

pursue all

3 segments

in year 1

Pick one

segment

Expand to

other two

segments

What’s Next

• Focus on life sciences (DNA Sequencing)

• Highest pain today, getting WORSE

• Opportunity for growth in subsequent years

• 5 dominant customers with significant market share

• Less Acquisition Costs

• Strategy

• Add value to the dominant players

• Counter to Stanford-based startup strategy to compete with dominant

players

• Expand to the financial industry in subsequent years

Opportunity: Get, Keep, Grow

SAM ($M) 440

Number of dominant players 5

Market share of dominant players 70%

SAM from dominant players ($M) 308

Target Market in years 1&2 ($M) * 12

*Sell into 10% server of 2 dominant players each

Market Sizing

APPENDIX

Customer Relationship

Recommender

(Computational Architect)

Influencer

(IT)

Decision Maker

(Executive)

Customer Archetype: Decision Maker

• Upper Management

• 50 to 60 years old

• Holds M.S. and PhD in

Life Sciences

• Tech Architech

• Computational Biologist

• IT Support

Customer Archetype: Recommender

• Technology Architect

• 30 to 45 years old

• Holds M.S. in Life

Sciences or Technology

• Attends “Bake Offs”

• Reads Publications

Problems

Credit Card Fraud

Costs consumers

and retailers $52

billion

Trading Desks

$1 million per

millisecond

improvement

Life Sciences

$3.3 billion

Identifying Potential Value Propositions

Big Data

Users

Processing Big

Databases

Accessing Big

Databases

Customer Segment

Pain Points

Processing

Power

Network

CapacityPotential

Solutions

Limit of Customer Expertise

Our Value

Proposition