IMD MBA 2008 alum Bryan Guido Hassin shares his cleantech startup, Smart Office Energy Solutions, how it came to be, and lessons learned from the entrepreneurial journey. In this presentation he pays particular attention to how the IMD MBA and network helped him along the path.
Smart OES Presentation at IMD MBA 2008 5-Year Reunion
1. A transformational startup nurtured
by IMD
Reunion Update – September 2013
Bryan Guido Hassin
IMD MBA 2008
Cofounder and CEO
2. M y M i ssi o n : b u i l d a b u si n e ss t h a t u se s
t e c h n o l o g y t o a d d r e ss t h e e n e r g y c h a l l e n g e
• Inspired by epic quests
• That quest is energy
• Business is the best medium to address it
• Information technology is a powerful weapon
3. B u s i n e s s e s t h a t t r a d e e c o n o m i c v a l u e
f o r g r e e n v a l u e a r e n ’ t “ s u s t a i n a b l e . ”
“Corporate Social Responsibility”
Profit
Sustainability
4. B u s i n e s s e s t h a t t r a d e e c o n o m i c v a l u e
f o r g r e e n v a l u e a r e n ’ t “ s u s t a i n a b l e . ”
“Corporate Social Responsibility”
Wanted: business that aligns economic and green value
Profit
Sustainability
5. W an t ed : m ean i n g f u l al i g n m en t o f
eco n om i c, g r een val u e at S C A L E
Alignment of economic, green value
Scale
6. W an t ed : m ean i n g f u l al i g n m en t o f
eco n om i c, g r een val u e at S C A L E
Alignment of economic, green value
Scale
7. W an t ed : m ean i n g f u l al i g n m en t o f
eco n om i c, g r een val u e at S C A L E
Alignment of economic, green value
Scale
8. W an t ed : m ean i n g f u l al i g n m en t o f
eco n om i c, g r een val u e at S C A L E
Alignment of economic, green value
Scale
9. W an t ed : m ean i n g f u l al i g n m en t o f
eco n om i c, g r een val u e at S C A L E
Alignment of economic, green value
Scale
49. F ound: meani ngful al i gnment of
economi c, gr een val ue at SC A L E
Each $500
revenue
$15B
potential
market
Eliminates 1
ton CO2
Global
energy use
-1%
Profit
Sustainability
Smart OES Business Model
50. Startups are not small
versions of large businesses
Large Companies
Execute Known
Business Models
Ventures Search for
Unknown Business
Models
54. E ntrepreneurship requires
different decision making
Source: Effectual Entrepreneurship
Entrepreneurs
For a given level of risk, entrepreneurs feel
they
can expand the problem space and
increase returns
For a given level of return, bankers feel
they can
reduce the problem space and decrease
risk.
Step 2
Push creatively
to increase return
Step 2
Try to reduce risk
through insurance, etc.
Step 1
Pick a comfortable
level of risk
Step 1
Pick a target return
Risk
Return
High High
LowLow
Low Low HighHigh
Bankers
Risk
Return
55. L i fe i s t oo shor t not t o do
somet hi ng meani ngful
56. E ntrepreneurship is a
journey
Call to
Adventure
Wise Sage
The Dark
Forest
Death /
Rebirth
Masterful
Return
Refusal of the Call
Supernatural Aid
Challenges,
Temptations
Transformation
Gift of the Goddess
57. Seek suppor t i n your secur e
bases; be a secur e base t o ot her s
• To fear risk is Human
• Secure bases will
love you even if you
fail
• Secure bases give
you confidence to
take risks
• Identify and lean on
your secure bases
28
Hostage at the Table; Kohlrieser; 2006
63. Smar t O E S i s r ai si ng $80 0 k ( $30 0 k
al r eady cl osed) for pr oduct l aunch
30
UL Listed Smart
Monitors, Sockets
Intelligent
Energy
Management
Behavior-
Influencing
User Interfaces
Marketing Staff,
Automated Sales
Tools
64. S m a r t O E S ’s r a p i d g r o w t h c a n
cr eat e huge r et ur ns for i nvest or s
31
Angel 1
$150 K
• Prototype
validation
Angel 2
$250 K
• Validate market
/ biz model
Commercialization
Round (open)
$800 K
• Complete product
dev and launch
Expansion
Round
$5.0 M
• Rapid global
expansion
2010
2013
2015 - 2016
Potential Exit
Valuation
$200 – 400+ M
• ESCO
• Smart Grid
• Information
Aggregator
• IPO
Future
2011
This is Allison, office manager (or title of choice) for a mid sized company.The 10,000 square feetoffice space is leased,25 employees, spends $25k/year for energy.It’s her top office operating expense.
This is Allison, office manager (or title of choice) for a mid sized company.The 10,000 square feetoffice space is leased,25 employees, spends $25k/year for energy.It’s her top office operating expense.
This is Allison, office manager (or title of choice) for a mid sized company.The 10,000 square feetoffice space is leased,25 employees, spends $25k/year for energy.It’s her top office operating expense.
This is Allison, office manager (or title of choice) for a mid sized company.The 10,000 square feetoffice space is leased,25 employees, spends $25k/year for energy.It’s her top office operating expense.
This is Allison, office manager (or title of choice) for a mid sized company.The 10,000 square feetoffice space is leased,25 employees, spends $25k/year for energy.It’s her top office operating expense.
She wants to reduce energy consumption.But she can’t afford the big investment and long payback periods of a retrofit. (graph)Or, even if she could afford it, she’s not allowed to adopt it. (anti green)She has considered some cheap alternatives but they don’t work for her. (sad)
She wants to reduce energy consumption.But she can’t afford the big investment and long payback periods of a retrofit. (graph)Or, even if she could afford it, she’s not allowed to adopt it. (anti green)She has considered some cheap alternatives but they don’t work for her. (sad)
She wants to reduce energy consumption.But she can’t afford the big investment and long payback periods of a retrofit. (graph)Or, even if she could afford it, she’s not allowed to adopt it. (anti green)She has considered some cheap alternatives but they don’t work for her. (sad)
The system works by connecting things to other things.
The system works by connecting things to other things.
The system works by connecting things to other things.
The system works by connecting things to other things.
The system works by connecting things to other things.
Mobile? You bet.
The dashboard description – engagement gamification.
This is how you save energy.
This is how you save energy.
This is how you save energy.
This is how you save energy.
BOOM.
Phyllis saved $6k/year, paid $11k + $3.5k/yearPaid back in just over two years
Phyllis saved $6k/year, paid $11k + $3.5k/yearPaid back in just over two years
Phyllis saved $6k/year, paid $11k + $3.5k/yearPaid back in just over two years
Because the solution is non-invasive, she was able to try it first and then make a purchase decision based on proven energy savingsInstallation so easy even an MBA can do itAnd, when they moved offices, they unplugged their energy savings and took it with them
It turns out that Allison isn’t the only one with these problemsOnce she demonstrated her success at EDF Austin, her company committed to deply Smart OES at the rest of their 120k sqft of office space in nine offices around the country.
It turns out that Allison isn’t the only one with these problemsOnce she demonstrated her success at EDF Austin, her company committed to deply Smart OES at the rest of their 120k sqft of office space in nine offices around the country.
It turns out that Allison isn’t the only one with these problemsOnce she demonstrated her success at EDF Austin, her company committed to deply Smart OES at the rest of their 120k sqft of office space in nine offices around the country.
OMG everywhere!
Huge number.
Goldilocks.Only we can reach Allison. Can’t touch this.
Goldilocks.Only we can reach Allison. Can’t touch this.
Goldilocks.Only we can reach Allison. Can’t touch this.
Goldilocks.Only we can reach Allison. Can’t touch this.
Our secret weapons are big data and employee engagementThis opens up huge future opportunities-- CLICK and after transition, on white scree –But to do those amazing things tomorrow we must build up our installed base todayWe have 8 Phyllises today and many more who have already committed to pilots
Our secret weapons are big data and employee engagementThis opens up huge future opportunities-- CLICK and after transition, on white scree –But to do those amazing things tomorrow we must build up our installed base todayWe have 8 Phyllises today and many more who have already committed to pilots
Numbers based on Allison.
Numbers based on Allison.
We can make a lot of money quickly selling to the Allisonsof the worldCashflow break-even a year after launchHigh margin recurring revenuesOnce we’re in, we’re in to stay