Internet Entrepreneurship CourseJanuary 11, 2001

Giving e-customers what they want.

Presentation - Overview

Manna’s quest for the Platinum Appian Laurels

Online Personalization – the Need

Current Personalization Solutions

FrontMind – Manna’s personalization solution

Manna – the Financial View

The Personalization Market

Manna business strategy

S.W.O.T analysis

Manna’s Quest for the Platinum Appian Laurels

1997 – the Beginning

Gad Barnea

Tal Bar-NoahZe’ev Rozov

SEA-Multimedia

Manna Inc.

0.5M$The mission:

online personalization solutions for e-commerce

1998 – Manna’s Technical Establishment

Beta site

1999 – Manna Goes Global

3.7M$

Dan Ross - CEO

1999 – Manna Goes Global

FrontMind 1.1

Yoel Ratsaby

AI group leader

Dan Ross - CEO

Moni Manor

VP – R&D

VP sales

Gary McMeekin, VP Professional Services

Mike Murphy VP B-D

14.1M$

2000 – Emerging Leader

FrontMind 2.0

First clients

FrontMind 3.0

First important strategic alliance

Online Personalization – the Need

Marketer requirements

•Useful Online learning, inference & response

•Attract broader audience

•Enable the marketing of many diverse products

•Learn from a variety of client-data sources

•Feedback to marketers on the performance of their personalized campaigns

•Pre- campaign simulation capabilities

Online Personalization – the Need

Customer requirements

•1-to-1– shopping experience

•Save costumer time

•Site easy to use

•Prevent customers surfing frustration

•Avoid customers questioning hassle

•Respect customers privacy

Current Personalization Solutions

•Setting business rules

use if… then… conditioning that capture business knowledge

•Collaborative filtering

Personalize the site for the client using knowledge on similar cliental

Shortcomings of the Current Personalization Solutions

•Significant amounts of upfront information from customer are needed

•Rules require tedious work and constant maintenance

•No online results

•Lack of feedback and simulation capabilities

FrontMindTM

clientCreate

update

marketer

customer

learn

Analyze/report

interacttest

BCC server

DB

website

FrontMind’s Inference & Learning

The Technology Enabling the FrontMind Solution

Two algorithmic approaches enabling FrontMind:

•Statistical inference using Bayesian Networks

•The FrontMind Federation of Agents

Advantages:

•Integration of rules and statistical inference

•Online learning, inference & response

Manna’s Capital Funding

1997 – $500,000 received from private investors.

1999 - $3.7 million from venture capital funds advent (international) and Gemini (Israeli). Company value - $10 million after money.

2000 - $14.1 million from lead investor IDG ventures, Robertson Stephens' Bayview investors, advent international, Gemini capital management fund, Apax partners and Bluewater capital management.

Revenue model – $250,000 pricing for improved conversion rate & decreased shopping cart abandonment.

Market Analysis

• Growing e-commerce market, expected $3 trillion by 2003.

• Personalization plays a major role in the e-commerce market.

• Competition: Broadvision, NetPerceptions etc.– Comprehensive solution.– World of consolidation.

• Current NASDAQ situation.– Fewer small customers, tougher competition

over larger and more prominent customers.– More M&A, harder to survive.

The Creation of Strategy

Market

dominated by giants with comprehensive

solutions

Manna

small company with technological

advantage

Manna’s Business Strategy

Manna’s Business Strategy

• Best-of-breed solution

• Hand picking your customers:– Tougher competition.– Having to integrate Front Mind into a

competitor’s comprehensive solution.

• Emphasis on alliances & partnerships.

Our personal assessment: Manna’s strategy is to build value and market proven

technology in order to be sold to a provider of a comprehensive solution.

S.W.O.T

OPPORTUNITIES M&A activity Expanding market Mature market

STRENGTHS Technology Management Pioneers

WEAKNESSES Market of giants Long sales cycle Best of breed

THREATS Funding & Revenues Market shift Privacy issues

Conclusion

Questions?