gianluca varisco - operating a global infrastructure | codemotion milan 2015
TRANSCRIPT
Confidential2
$ whoami
VPSecurity@RocketInternetSE
FormerlyatRedHat,Lastminute.com Group, PrivateWave
Confidential3
Founded in Berlin in 2007
Incubated 100+ companies
Executed 20+ business models
5bn+ people worldwide targeted
30,000+ people on the ground
We Are Rocket
Confidential4
We identify proven business models that focus on basic needs. We quickly build companies for these business models using highly standardized and optimized processes and then scale these companies to a leading position in our markets.
We Are Not Investors. We Are Builders
1. Identify
We continuously monitor customer
behavior in our markets.
2. Build
Our functional experts from IT, SEM, SEO, BI,
CRM etc. build companies from
scratch.
3. Scale
We roll out companies to 110+ markets and
aim to scale them to #1 positions.
Global network of companies
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We offer online business models across four sectors
e-Commerce Marketplaces Financial Technology Travel
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Global employer30,000+ employees
50+ nationalitiesSix continents
Global logistics infrastructure Warehouses in 30+ countriesLast-mile delivery services
in 15+ countries
We are more than 30,000 people on the ground
LATIN AMERICA
AFRICA &
MIDDLE EAST
ASIA-PACIFIC
EUROPE
RUSSIA & CIS
Sao Paulo
Lagos
DubaiNew
Delhi
Paris
Berlin
London
HEADCOUNT
HEADCOUNTHEADCOUNT
HEADCOUNT
HEADCOUNT
Singapore
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At Rocket, we believe the Internet is going further and faster into daily life than anyone imagined. Our goal is to capture the largest possible share of consumer online spending in our markets.
We Face a Huge Market Opportunity
Potential customers
5.4 bnGlobal mobile users
74%
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We address a massive and fast-growing market opportunity driven by four global megatrends:
We Believe in Four Global Megatrends
Booming smartphone penetration
Younger populations of “digital natives” in emerging markets
compared to the United States
Worldwide growth of the middle classes
The ability of Internet technology to leapfrog
traditional retail infrastructure in emerging markets
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We Have Developed a Unique Platform
Infrastructure Rocket Network
TechnologyProcesses
§ Proprietary technology platforms allowing rapid global deployment
§ Comprehensive KPI analytics driving continuous optimization
§ Provision of shared services to jump start new businesses at low cost
§ Founding ten new companies per year on average
§ Consistent returns across network of companies
§ 30,000+ people on the ground § Active in 110+ countries across six continents § Easy and fast leveraging of synergies
§ Highly structured / best practices § Centralized IP with regional execution § Repeatable and scalable§ Launch of new companies in <100 days
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Improving efficiency in Operations
Focusing on daily management of sales and Business Development Funnel in SalesForce
Increasing Net Promoter Scores
Landing pages, onsite search, onsite sorting, personalization, multivariate testing
Iteration of product, agile development focusing on stability, security and speed
Segmentation, lifecycle management, content, automatization
Financial reporting & controlling, compliance
Call center and local support
Sales and business development processes
Rocket Operations Management Systems
Continuous recruiting of central and local founders, 2nd level management talent and functional experts
CRM tools
Marketing channels
MVP web & apps
Design website & apps
We Follow a Standardized Master Launch Process
Capability to launch a new company in <100 days Companies operationally independent in <200 days
Legal & Finance
Engineering
Product & UX
CEN
TRA
LLO
CA
L
Marketing
CRM
Business Intelligence
Operations
Sales
Customer Care
HR
Data warehouse
Legal entities, brand & domains, accounting
Targeting, creative, bidding, max. granularity & optimization of CAC vs. CLV
Daily, weekly and monthly KPI reporting for Marketing, CRM, Sales, Customer Care, Ops etc.
KickoffDay 0
LaunchDay 100
IndependenceDay 200Set up Rocket best practices Reporting & optimization
PR launch, media buzz, PR trackingCommunications Branding workshops, brand bible, design guidelines, PR launch preparation
Confidential13
Day 5: Plan Your 200-Day Hiring Roadmap
• After meeting with
all Rocket leads
• Team of 20-50
people
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Day 15: Made Core Decisions, Specified MVP
• Expansion
strategy done
• Wireframes ready
• Design kickoff
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Day 15: Incorporated Entities, Focus on Hiring
• Legal entities and
bank accounts ready
• Investor pitch
polished
• Hire, hire, hire!
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• Name ready, domains
bought, TMs
registered• Logo to be designed
• Developed marketing strategy: online, offline,
and CRM
Day 50: Finalized Name and Marketing Strategy
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• Product development
highly structured
• Operations built locally: – Sales
– Customer Care
– Warehousing
– Content Production
– Delivery
• Soft launch on day 85
Day 50: Tech and Ops Powering Ahead
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• Tested all tech
platforms
• Conduct photo
shoots and
interviews with
relevant int’l
publications
Day 100: Hard Launch with PR Push
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• Paid Marketing starts
with small amounts
• Daily Management
KPI Report kicks off
• Prepare for launch in
next countries!
Day 100: Paid Marketing and Daily Management Report Start
Confidential21
3 Takeaways from Rocket’s Launch Process
People• Specialization at
Rocket works • Get the right founders• Core team must be
ready • Ownership, not
fingerpointing
Process• Dive deep early• Motivate action through
greater transparency• Stick to the agreed
timeline• Allocate Rocket
resources well
Product
• Improve end-to-end customer experience
• Create best-of-all-worlds product
• Take advantage of Rocket’s tech platform
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We are specialists when it comes to adapting to local habits and developing proprietary solutions that meet customers’ needs and circumstances.
We Embrace ComplexMarkets
We build our own infrastructure to support each step of the e-commerce model. This gives us a competitive advantage, flexibility and speed within the market.
Infrastructure and Last-Mile Delivery
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Case: Zalora (South East Asia)
§ ZALORA’S OWN LAST MILE DELIVERY FLEET ENSURES DELIVERING THE SAME SERVICE QUALITY IN ALL MARKETS
§ OFFER CASH-ON-DELIVERY AND CREDIT CARD PAYMENTS AT DOOR STEP
§ SAME DAY DELIVERY IN CAPITAL CITIES ACROSS SEA. NEXT DAY DELIVERY STANDARD IN MAIN CITIES.
§ 300+ RIDERS ACROSS ALL 6 MARKETS, BRANDED AS ZALORA EXPRESS
§ >95% OF ALL DELIVERY ATTEMPTS SUCCESSFUL AT FIRST TIME, AVG DELIVERY TIME <3 DAYS
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Since IPO: Strong Investment in People, Knowledge and Technology
People
Technologyteamgrewto c.250
Helpedhiring>100engineersand10CTOsforourcompanies
18additionalmobileengineershired
ü
KnowledgeRocket TechSummit2015
LaunchedPioneerKnowledgeNetwork ü
Technology
Skyrocket – NextGenerationCompanyBuildingFramework
SellerCenter– Nowlive inwith15Rocketcompanies
RocketAdvertisingPlatform
ü
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Substantial & On-going Investment into our Technology Platform
2
4
Technology Platform1
3
Real-time stream processing engine for search, recommendations and product feeds
Data Driven Merchandizing
Our next generation company-building framework
MinimizedCompany Setup Time
Highly automated online advertising management with self-learning algorithms
Efficient Growth of Customer Base at Scale
Vendor integration with web & mobile apps and public APIs
Global Vendor Platform
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Pluggable Components
Cloud Native
OpenAPIs
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3
2
1
4
MobileFirst
Reduced timeandcosttolaunch newcompanies
Builtfrom
groundupforhigh
performance
Skyrocket – The Next Generation Company-building Platform
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Six new companies launched on Skyrocket in 2015
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Skyrocket Speeds up Company Building with Out-of-the-Box Modules and Partners Integrations
Frontend
Backend
Mobile Apps
Core Platform
Referral Marketing System
DataWarehouse
CRM Automation
Vendor BackendPayment
IntegrationMarketing Optimization
Catalog OrderManagement CustomerService ContentManagement
PlatformPartners
Modules
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Skyrocket Natively Integrated with Amazon Web Services
Cloud-Nativearchitecture
DeepCloud Integration
Automatedinfrastructuresetup
Automatedscaling
Globalsecuritypolicies
CloseCollaboration
Globalsupport
Training&certifications
Regulararchitecturereviews
Earlyaccesstonewfeatures
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Sellercenter – The Leading E-commerce Marketplace System for Emerging Markets
§ Launched in 2014§ Integrated with 82 shop
systems in 56 countries § Optimized for emerging
market requirements§ Supports drop-shipping
and fulfilment by Lazada/Linio/Jumia
§ Integration into vendor systems via open APIs
§ Mobile apps with real-time integration to shop and logistic system
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Confidential36
Rocket-speed Roll-out with 26 Countries Launches in 6 months
1 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150
Nov14– LaunchedJumiaEG
Dec 20– Launched Linio Colombia,JumiaNigeria,LazadaIndonesiaandPhilippines
March03:Zalora joinsplatform
April14:FirstsellerintegratesdirectlyviaAPI
May25:500.000productslisted
June15:Mobly goeslive
Jan14:LaunchedLazadaPhilippinesandMalaysia,LinioMexico
Days
LAUNCHJuly:Kaymujoinsplatform
March26:2000activesellersglobally
June20:Dafiti,Lamodajoinplatform
May14:FulfillmentbyLazadalaunched
June26:Firstsellersells1000ordersin10minutes
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Sellercenter is Driving Growth of E-commerce Marketplaces in 15 Rocket Companies Worldwide
2,600,000ActiveSellers
56Countries
15Companies
15,000,000ActiveProductsListings
>20,000,000OrdersProcessed
65Engineers
Upto6,000,000EuroDailyGMV
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Launched Seller App with Real-time Integration into Logistics, Finance and Catalogue Systems
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Rocket Advertising Platform – Growing our User Base Efficiently at Scale
RocketMarketing
Tech
Real-time
Tracking
MachineLearning
Real-time
Reporting
Automation
Comprehensive user trackingCutting edge machine learning systems
– User segmentation– Real-time buying– Productrecommendation– Frauddetection– User level targeting
Real-time reportingEnd-to-end automationNo principle agent problems
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n Bidding optimized on individual Customer Life-time Value
n High degree of automation allows efficient scaling across channels
n Facilitate entry to new markets leveraging patterns from other verticals and countries
We Target Individual Users with Real-time Bidding Algorithms
UniqueAccesstoKnowledgeandData Output:EfficientUserAcquisitionBiddingEngine
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Uniqueknowledgeofuserbehaviouracrossmarketsand
verticalsworldwide
Directintegrationintoadvertisingexchanges
Accesstohighresolutionreal-timelogstreams
Proprietarytargetingengine
Multi-dimensionaluserbiddingbasedon:
n Location
n Demographics
n Time of Day
n Device
n Weather
ClosecooperationwithGoogle,Facebook,Twitterduetohigh
aggregatedspend
RocketAdvertisingPlatform
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Self Learning Keyword Optimization
SearchEngineResults
PublicDatabases
ProductPages
CompetitorWebsites
High Performance Targeted Ads
Flyknit Nike shoes !@ São Paulo Brazil
Rejected Keywords
§ Sexy Feet No Shoes
§ Beer & Parties§ …
ConstantOnlineUserQueries
INPUT ALGORITHM OUTPUT
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Platform Summary: People – Knowledge – Technology
Technology enables people to build scalable companies (process automation, business intelligence, decision support)
People generate market knowledge in>110countries
Knowledge is built into technology
platforms (Rocket Advertising
Platform, Sellercenter, Data
Warehouse)
KnowledgeTechnologyPlatform
People
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Our core values:
People first!
The people
Collaborate with the brightest people from
all over the world.
The culture
Experience a strong culture of enablement.
The mentality
We believe that nothing is impossible.
The impact
Shape the online world for generations to
come.
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© 2015 Rocket Internet SE. All rights reserved.© 2015 Rocket Internet SE. All rights reserved.
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Management Board
Oliver SamwerCEO
Oliver Samwer is a serial entrepreneur with a proven track record in some of Germany’s most successful internet companies. Graduated from WHU, he founded Rocket in 2007 and serves as
its CEO since 2014.
Peter KimpelCFO
From 1992 to 2014, Peter Kimpel held various management positions at
Goldman Sachs in the United States, Frankfurt and London – at last as a
partner in London. Peter Kimpel joined Rocket in 2014 as CFO.
Alexander KudlichGroup Managing Director
Before joining Rocket as Group Managing Director in 2012, Alexander Kudlich was Assistant of the Chairman and CEO of Axel Springer and Regional Managing Director with zanox, one of
its group companies. Alexander graduated from HSG, UCL and ESMT.