BD  Leverage  For  Growth  

An  Le  Trinity  Ventures  March  2014  

From  the  Bay  Area  and  Back  

1997  

2001  

2005  

2007  

2009  

2011  

2013  2014  

Dot  Com  Bust  

Mortgage  Crisis  

•  EIR   Menlo  Park  

•  VP  of  BD,  acquired  by  MSFT   SF  

•  Director  of  BD   SF  

SF  •  Consultant  

•  MBA   Boston  

•  Technical  Sales  Engineer  •  Product  MarkePng  •  BDM  

Santa  Clara  Munich  Chicago  

•  BSEE,  Signals  &  Systems   Stanford  

BD  Goals  Evolve  As  You  Grow  

Awareness

Distribution

Lead Gen

Revenue

Ease of Partnering"

Mat

urity

of C

ompa

ny"

BD  as  a  growth  lever  from  the  start  

Building  the  ecosystem  

DistribuPon  

Ubiquity  

Lead  Gen  

Revenue  

Scaling  the  results  

DistribuPon  

Ubiquity  

Lead  Gen  

Revenue  

0   850   >2k   >30k   >80k  

15-­‐20%  

5-­‐10%  

BD  to  drive  engagement  at  growth  5  Million  

Enterprise  Users  

4 months"

18 months"

6 months"

9 months"

12 months"

1 M Users

2 M Users

3 M Users

4 M Users

7 M Users

Building  an  ecosystem  ›  Through  third  party  applicaPon  integraPons,  Yammer  becomes  the  de  facto  standard  

social  layer  across  the  enterprise  applicaPons  know  and  use  

CMS   CRM   HR   ERP   OTHER  

Solving  the  engagement  problem  

Yammer  Connect  

Users  with  2  or  more  integraDons  were  ~20%  more  acDvely  engaged  on  a  weekly  basis  

Rapid  Usage  Growth  

Q1 2012 (Jan-Mar)"

Q2 2012 (Apr-Jun)"

Q3 2012 (July-Sep)"

Q4 2012 (Oct-Dec)"

New  Users  (K)  

54%  

52%  

10x  

Greater  than  50%  quarter  on  quarter  growth  of  new  users  enabling  third  party  integraPons  on  the  Yammer  PlaZorm  since  

launch.  

•  Over  200,000  users  have  acPvated  an  app  

•  Over  9,000  companies  are  using  an  app  

•  Over  700,000  acPviPes  wri]en  to  Yammer  

 •  Over  13  million  posts  fetched  from  Yammer  

Delivering  Beyond  Virality  

Change  Management  

+  

•  New  enterprises  •  New  regions  •  <  10%  deals  

BD  Tool  Box  

Co-­‐markeDng  

1  

Product  IntegraDon  

3  

M&A  5  

Channel  Programs  

2  

Feature  Enhancement  

4  

Co-­‐MarkePng  

Co-­‐markeDng  

1   •  Campaign  based  or  loose  annual  contracts:    •  Joint  PR  •  Mutual  website  presence  •  Joint  promoPons  to  mutual  customer  bases  

Pros   •  Easy  to  set  up  •  Broad  reach  

Cons   •  Easy  to  disengage  and  will  lose  value  without  ongoing  emphasis  •  Difficult  to  measure  

Typical  Rev  Share   •  0%  

Examples   •  Branded  partner  relaPonships  where  both  customer  sets  will  be  targeted  

Co-­‐MarkePng  Examples  

•  Joint  PR  •  Website  presence  •  Email  campaigns  •  Newsle]ers  •  Event  talks  •  Webinars  •  White  papers  •  Meetups  •  Joint  customer  

tesPmonials  •  PromoPonal  campaigns  

Channel  Programs  

Channel  Programs  

2   •  Affiliate  Program  •  Go  to  market  through  a  consultancy  or  systems  integrator  

partner  who  owns  the  customer  relaPonship  

Pros   •  Large  set  up  possible  partner  targets  •  Extended  geographic  reach,  customer  contacts  

Cons   •  High  overhead  and  people  management  costs  •  Vefng  and  choosing  right  partners  can  be  tricky  

Typical  Rev  Share   •  10-­‐20%  

Examples   •  Loosely  affiliated  referral  program  •  Tightly  integrated  SI  relaPonships  to  deliver  customizaPon  to  

product  

Channel  Program  Examples  

Product  IntegraPon  

Product  IntegraDon  

3   •  Product  integraPon  usually  involving  SSO,  sharing  of  perPnent  customer  data  via  API,  and  UX/UI  integraPon  points  

Pros   •  Very  sPcky  relaPonships  once  integraPon  is  completed  •  FricPonless  usage  by  joint  customers  

Cons   •  API  &  technical  support  required  •  High  cost  of  change    •  Customer  ownership  may  be  in  quesPon  

Typical  Rev  Share   •  15-­‐30%  

Examples   •  AWS  AMIs  •  Heroku  Add-­‐Ons  

Product  IntegraPon  Examples  

Feature  Enhancement  

Feature  Enhancement  

4   •  White  labeled  use  of  your  product  as  a  feature  of  another  product  and  vice  versa  

•  “Powered  by”  branded  feature  enhancement  

Pros   •  Very  sPcky  relaPonships  once  integraPon  is  completed  •  Immediate  access  to  all  customers,  no  opt-­‐in  requirements  

Cons   •  API  &  technical  support  required  •  High  cost  of  change    •  Limited,  if  any,  access  to  customers  for  upgrades  depending  on  

branding  relaPonship  

Typical  Rev  Share   •  Pay  by  usage  or  enterprise  license  agreement  

Examples   •  Crocodoc  for  document  viewing  •  Bit.ly  for  link  shortening  

Feature  Enhancement  Examples  

M&A  

M&A  

5   •  AcquisiPon  of  another  company  for  purposes  of  feature  enhancements,  tangenPal  products,  large  sets  of  customers  or  talent  

Pros   •  Once  completed,  full  control    •  Expands  opPons  of  build  vs  buy  •  More  quickly  achieve  goals  than  through  organic  growth  

Cons   •  Costly  •  A]riPon  of  both  customers  and  employees  •  Post  merger  integraPon  issues  

Typical  Rev  Share   •  None  

Examples   •  OneDrum  for  real-­‐Pme,  collaboraPve  ediPng  of  Microsom  documents  

BD  Goals  Evolve  As  You  Grow  

M&A"

Product Integration / Feature Enhancement"

Affiliate Program"

Awareness

Distribution

Lead Gen

Revenue

Build  customer  tracPon  quickly  >  

Gain  ubiquity  in  your  market  >  

Drive  BD  leads  through  your  sales  process  >  

Maximize  revenue  through  established  channels  >  

M&A  for  scale  >  

Co-marketing"

Establish  your  core  set  of  partners  >  

ConPnue  to  build  out  your  partner  ecosystem  >   Feature Enhancement"

Ease of Partnering"

Mat

urity

of C

ompa

ny"

Recap  •  BD  tools  can  work  in  combinaPon  and  in  parallel  depending  on  your  goals  and  your  resource  constraints  

•  Your  BD  goals  will  change  as  you  grow  

•  Measure  to  your  goals  

•  Support  your  team  

Thank  you!