Intag Classified Documents
Classified Document Number 1
Number: 001
Date: May 22th 2001
Author/s: Juan Chamero, Alberto Abatte

E-mail: jach@aunmas.com


Commercial - Marketing

HKM - Commercial Benchmarks

Commercial Features

This document deals with commercial, marketing and investments considerations. It's a venture investment, something new that brakes some traditional rules concerning Internet marketing. However its reach is so wide and the cost benefit ratio is so impressive that the task of encourage investors seems not difficult. We mention in this document some possible niches and sources of revenue among many. Today's world has changed too much making easier and by far less risky the project taking into account that investments are now one third of those of May because manpower costs diminished dramatically in some key countries that could provide the necessary knowledge and languages skill as for instance Argentina.

HKM – Human Knowledge Map Commercial Benchmark

HKM – Human Knowledge Map Commercial Benchmarks

 

 

 

Product

Market

Commercial Hints

Competition

Management

Financing

Business Plan & References

 

 

 

 

 

 

Product

 

 

Product Description

 

o         A methodology to create a Map of the Human Knowledge that provides a YGWYW, You Get What You Want interface in only one click of the mouse. The methodology falls within what is known as Information Retrieval Systems and concerning the Web close to Semantic Networks. Once created, it’s continuously upgraded and maintained by an Expert System almost without human intervention.

 

o         Does the product require government approval? NO

 

 

Intellectual property concerns

 

o         What it is protected: The methodology, the Trademark of it: FIRST Full Information Retrieval System Thesaurus and some strategic scripts.

o         Patents: under “patent pending” we will apply along June 2001

o         Copyright(s): Applied since May 15 th 2001   

o         Trademark(s): Not yet.

o         Who owns the intellectual property? Juan Chamero

 

 

How is the product differentiated in the market?

 

o         Now: It does not exist a comparable product yet. All lines of R&D are actually working along the line of the Web semantic “as it is”. Our finding was: a)  to realize that users and sites “speak” and even “think” different and b) to find a way to overcome the actual Web mismatch between users and sites. Actually the Web searching process, mostly driven by robots, is extremely heavy, inefficient and even misleading, mainly because users have learnt how to deceive robots to score high.

 

o         Then: With a Map of the Human Knowledge, on the contrary, most people will find what they are looking for in only one click of their mouse. These maps point directly to the significant sites for each Major Subject of the Human Knowledge and they evolve as long as the Human Knowledge evolves as well.

 

 

 

What about the price/performance advantage of the product?

 

The product represents a qualitative step instead a quantitative one. Today the price performance must be measured at the user’s side in users time spent trying to find something useful for their needs. It’s estimated that, in the average, a user needs thousands of trials to find something related to what is he/she looking for. With the map we could get the utopia: You Get What You Want in only one click of the mouse. At the Website’s side the cost of the map is at least one order of magnitude lower than the cost of a world search engine.

 

 

New products planned

 

All kind of intelligent byproducts, emerging from users versus sites interactions. The Expert Systems that is going to administer and to upgrade the map once created is capable to generate a new kind of intelligence reports mainly oriented to know the Web market behavior as a whole. The map starts to age without getting obsolete but increasing the value of its inner content. The Expert System is designed to learn more from mismatch than from match working along two optimizing tracks: detecting useless supposed “attractions” at the sites’ side and detecting the potential market loses at the users’ side.

 

 

 

Market

 

The US and international markets.

 

It encompasses the whole Web world market. Everybody searching for something will be a map user once launched.  It’s not a new search engine; It’s a new searching concept going directly where to the knowledge concentrates. Of course there will be room for some of the actual search engines. We warn that some massive search engines such as Altavista and Google will be necessary as the source, the raw material of all human mental activities, no matter how clever they are. So the users will need those massive search engines to search for specific details not fully covered by the sites pointed by the map.

 

In the near future the search process will run pretty much the same as the conventional library search: first the manuals and encyclopedias, second the reference books, third the specialized books and fourth the “articles” hosted in summaries, journals and proceedings.  The map provides a full solution to the first three levels.

 

 

Market size

 

o         in terms of dollars: $10,000 million;

o         in terms of number of customers: 100 million

 

 

Projected market growth

 

300% per year

 

Target customers

 

o         Editorials,

o         Portals,

o         Vortex,

o         B2B sites,

o         Big Search Engine’s Services.

 

Market segments

 

o         General searching,

o         Information retrieval,

o         Intelligence, and,

o         Matchmaking.

 

Marketing plan       

 

Distribution channels to be used:

Affiliates

 

Alliances/ partnerships planned:

 

o         Editorials,

o         Big Search Engines Operators,

o         Universities, and

o         Labs.

           

Type of market research that has been done

 

More than 6,000 Websites have been examined concerning their matchmaking efficiency.

           

Type of product testing that has been completed

 

The methodology has been tested in two Major Subjects of the Human Knowledge


Commercial Hints

 

As a new product that will open new market niches is not easy to imagine the possible income resources derived from it. However, we could figure out the following areas:

 

Cloning

 

Once built the first map, the owners could start to offer to the Internet Community the map services either free or by a fee. Following the Internet history, mega trend and spirit we advise the first alternative: an open and free service. So whence from the incomes come?. Will it be another Internet commercial lure?. Absolutely not!.

 

The map will attract million of users and it will be a nonsense to thing of a single map servicing queries from all over the world. To satisfy the world demand will be necessary at least a hundred of such maps. We are to think about universal maps for every spoken language and specific sub maps, at least one per Major Subject of the Human Knowledge as well.

 

As the maps are really living maps instead static maps, they improve as long as the age, so we may thing of another emerging market of updated maps. Because that is the strategic importance of the leaders: their equity grows at a fast pace as time passes by.

 

By cloning we mean then the sale of full or partial copies of the original map updated at a certain date. We estimate that it is feasible to sale a full clone by 10 million dollars, its building cost without even considering overhead and profit to a suspected avid market of at least 10 corporations/institutions. The market for specific disciplines is estimated in at least 500 firms interested in being owners of You Get What You Need searching engines for their specific targets paying for them $500,000 in the average. Those two concepts determine 350 millions.

 

Conservatively we assume that this exceptional profit could be obtained only once as the strategic advantage of being the first. Another important by product emerging of cloning sales are the map translations but conservatively we prefer not to consider them in this first global approach.

 

 

Regular income sources

 

Advertising and Sponsorships

 

Conservatively our estimation considers only selling 100 million pages_view per month sharing the market with some others 10 HKM’s owners offering comparable services, at one cent the page_view, totaling then 1 million dollars per month.

 

 

Intelligence Reports

 

Considering only that traffic figure of 100 million pages_view per month generating 50 million   queries per month generates a terrific amount of intelligence divided in three categories, namely:

 

o         What Users Need but the Website, even through its HKM facility, could not be fully satisfied;

o         What Website, through HKM facility offer offers but users do not perceive, and;

o         What users versus HKM facility match.

 

First category provides new markets intelligence reports, second provides HKM evolution and proficiency and third provides actual market intelligence reports by area of human activity. Those type of reports could be easily sold at prices ranging from $1,000 to $10,000 each. The big question then arises, how many could be sold?. Our estimation is about 5,000 yearly at a price of $4,000 in the average, totaling an estimated additional income of 20 million.

 

Miscellaneous

 

This new creature incentives the imagination as fresh air the ambers. We may cite the following derived applications:

 

o         Registrars for each Certificate Human Professional Activity and for type of query

o         Manual and Guides Publishing for each Major Subject of the Human Knowledge

o         Online Courses

o         Special Plus Services by a fee

o         Associated Business Transactions Platforms and Business Facilitators Gateways

 

 

Competition

 

General Description

 

As our direct knowledge concern there is not competition yet. We may cite notwithstanding very important research done along the line of improving the search efficiency in the Web but as we warned, considering the Web semantic and architecture “as it is”.

 

The research effort is going towards robots and intelligent agents efficiency as “tools” but nobody is working trying to optimize the human approach to use the Web properly, with or without robots and intelligent agents. We use intelligent agents but our first priority and spirit of research have been along the line of what is known as “The System Thinking”  depicted globally in the Fifth Discipline of MIT and Stanford. 

 

The most advanced studies concerning tools, we get knowledge of, are driven by the W3C Consortium, the Google search Engine Project and Xerox – Palo Alto. Altavista, Yahoo, Lycos, WebCrawler, and many others are not competitors in this arena. They are doing their best concerning automated searching technology but working over a huge, noisy and non-discriminated Web Space, as it is generated.

 

 

 

Impact the competition has on the company or product

 

How well is the competition funded?

 

Badly. Everybody is aware of the Web matching inefficiency.

 

How is the company’s product superior to the competition?

 

The general user will be fully satisfied. When users disagree about some findings they will have the power to produce changes in the map via statistical pressure. Actually the Web Space is open, free but extremely chaotic: about 500,000 allegedly sound documents are “hidden” among 1,250 million and the robots could do almost nothing to solve this chaos problem.

 

Worst of all, is that that context grows exponentially at a terrific pace. With certain limitations “human biased” we will detect those hidden documents with a staff of human experts aided by intelligent agents but we are fully respectful of the netiquette, we don’t even dare  to dictate “our truth” to the users world. We only use the initial version of the map of those selected resources as an initial solution to the problem of searching and diving into the wide and deep waters of the unattainable Human Knowledge in absolute terms. From that onwards the map starts an evolution process via users’ interactions.

           

Competitors and their market share:

 

Altavista: ~45%

Google: ~25%

Yahoo: ~20%

Others: ~10%

 

What market share will the company have?

 

Initially 90% along the first six months and then decreasing steadily to a “plateau”  of nearly 40%, strongly depending of the “clone’s sales policy” of the firm that will market the product and its byproducts.

 

 

Management

 

Stable Key Personnel

 

 

Name

Title

Profile

Relevant Experience

Equity

Juan Chamero

CEO

Total Systems Expert

Total Systems Expert, academic, IT consulting and Mathematical Models, 30 years experience, International Awards in Systems Engineering and Models Architecture.

70

E. García Camarero

General Consultant

Systems Semantic

Total Systems Expert, academic, mathematician, 30 years experience, renowned world expert concerning Digital Libraries.

0

Marcelo Bahamonde

CTO

Senior Programmer

Senior Programmer, intelligent agents and match making algorithms, 8 years experience.

10

Daniel Chamero

COO

Senior Net Expert

System’s architecture and network design and implementation expert, 12 years experience.

10

Nicolás Chamero

Web Developer

Web Developing

Web design and implementation expert, 5 years experience.

10

 

 

 

Key Personnel to be hired

 

Title

When

Detected

Marketing VP

asap

YES

Content VP

asap

YES

Chief Programmers

asap

YES

Administrative General manager

asap

YES

 

Board of Directors

Not yet formed; open

 

Board of Advisors

Not yet formed; detected

 

Financing

 

Revenues forecast for the next three years

 

            1st:  $100,000,000; 2nd: $500,000,000; 3rd: $2,000,000.000

 

How much money is needed at this time? 

 

$10,000,000

 

How much equity will you give for this investment?

 

40 %

 

How will these funds be used and when?

 

 

Amount ($)

Use

When

4,000,000

Map Content Creation

First 120 days

1,500,000

Programming

Along 180 days

1,500,000

Web Developing and Networking

Along 180 days

1,500,000

Content Control and Beta Test

Along 180 days

1.500.000

Management and Launching

Along 150 days

 

 

 

Business Plan

The Business Plan was finished on May 22th..

 

References

 

Commercial

 

Company name

Contact Person

Phone

e-mail

Citibank

Dora Perez

305-669-5571

dora.perez@citicorp.com

Merkatur

José Luque

305-448-8070

jluque@merkatur.com

 

Personal

 

Name

Occupation

Phone

e-mail

Oscar Coen

CEO Yupi

305-532-0364

oscar@yupi.com

Ariel Bentata

Lawyer

305-372-8959

ariel@mail.yupi.com

Luigi Echeverry

CEO Trade Winds

561-820-1313

luigi@e-twn.com

 



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