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


• Cloud firms

• Chip makers


• Design boards

• Demonstration

• Software

development

• Service


power by either:


software platform


cloud


• PR (Computing

Competitions, Free

Trials)


(Training, Call

Support)


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






Very

vague =

NO idea

what we

are doing

Need to

identify

high-value

problems

in

different

segments


• Cloud firms

• Chip makers


• Data aggregators

• Design boards

• Demonstration• Software

development

• Service


power by either:


software platform


cloud


• PR (Computing

Competitions, Free

Trials)


(Training, Call

Support)


• 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






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


• Cloud firms

• Chip makers



• Design boards

• Demonstration• Software

development

• Service


power by either:


software platform


cloud


• PR (Computing

Competitions, Free

Trials)


(Training, Call

Support)


• 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






BD Analytics:

Increasing data accessibility

by:

• decrease access time

Life Sciences

Big Data Analytics

Cloud Computing:

Decreasing network

congestion by:


communications

Customer

Archetype

and

Decision

Hierarchy

Customer

Segment

Specific

Value

Prop.


• Cloud firms

• Chip makers



• Design boards

• Demonstration

(bake off)• Software

development

• Service

High Performance

Computing (combo):

Direct increase in

processing power

• PR (Computing

Competitions, Free

Trials)


(Training, Call

Support)


• 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




BD Analytics:

Increasing data

accessibility by:

• decrease access

time

Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:


communications

Big Data Analytics

• Data sanitization

• Database access

Data Centers

• Parallel Processing

Financial Modeling

• Credit Card fraud

• Pricing strategies






• Cloud firms

• Chip makers



• Design boards

• Demonstration

(bake off)• Software

development

• Service

High Performance

Computing (combo):

Direct increase in

processing power

• PR (Computing

Competitions, Free

Trials)


(Training, Call

Support)


• 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




BD Analytics:

Increasing data

accessibility by:

• decrease access

time

Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:


communications

Big Data Analytics


• Database access

Data Centers


Financial Modeling







Aligning:

• Customer

Segment

• Value Prop

• Revenue


• Cloud firms

• Chip makers



• 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


• 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




BD Analytics:

• Increasing data

accessibility by

decrease access

time

• Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:


communications

Big Data Analytics


• Database access

Data Centers


Financial Modeling


(Large Banks)


Pay-per-Usage ModelHardware Purchase +

Software Subscription

Government

• (not DOD)


• Cloud firms

• Chip makers



• Ex-executives


• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

High Performance

Computing

• Direct increase in

processing power


Conferences,

Articles, Free Trials

• Solicit

Earlyvangelist

support at events




• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives


• OEM

• VARs


• People


• IP

• Data Center




BD Analytics:

• Increasing data

accessibility by

decrease access

time

• Data Sanitization

Speed

Life Sciences

• DNA sequencing

Cloud Computing:

Decreasing network

congestion by:


communications

Big Data Analytics


• Database access

Data Centers


Financial Modeling


(Large Banks)




Government

• (not DOD)

Refining:

• Partners

• Activities

• Relationships

• Channels


• Cloud firms

• Chip makers



• Ex-executives


• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

Credit Cards

Decrease the time to

access fraud

databases to make

faster decisions


Conferences, Articles,

Free Trials

• Solicit Earlyvangelist

support at events




• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives


• OEM

• VARs


• People


• IP

• Data Center




Trading Desks


process data to

arbitrage trading

decisions faster

Life Sciences


crunch DNA

sequences Financial Modeling


Life Sciences

• DNA sequencing

Credit Card Fraud

(Large Banks)



Big Data Analytics


• Database access

Data Centers



• Cloud firms

• Chip makers



• Ex-executives


• Design boards

• Demonstration

(bake off)

• Software

development

• Service

• Scientific

Publications

Credit Cards


access fraud

databases to make

faster decisions


Conferences, Articles,

Free Trials

• Solicit Earlyvangelist

support at events




• Data center

• HR: computer

engineers, sales &

marketing

Combination of

Physical and Web

• Direct Sales

- Ex-executives


• OEM

• VARs


• People


• IP

• Data Center




Trading Desks


process data to

arbitrage trading

decisions faster

Life Sciences


crunch DNA

sequences Financial Modeling


Life Sciences

• DNA sequencing

Credit Card Fraud

(Large Banks)



Big Data Analytics


• 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

team j worlds fastest computer - final - ver2

Education

physical units organizations

oceanyes processing

increased processing

midsize organizations

gene sequencing

business analytics

sequencing time

big customers