- John Rauscher is the CEO and founding investor of Yseop, a French startup founded in 2007 that develops artificial intelligence software to automate tasks requiring language skills. - Yseop's technology can automatically generate personalized recommendations, customer support, business reports, marketing communications, and more by applying expertise to contextual data without human intervention. - Some key applications include an automatic car sales recommendation expert, a virtual assistant for broadband repair, and automated generation of company annual reports and audits. - Yseop aims to accelerate the transmission of contextual information and expertise like Gutenberg accelerated knowledge, cutting costs and dramatically enhancing customer experience.

1. Managing Software Innovation in France European Entrepreneurship & Innovation Thought Leaders Seminar Stanford School of Engineering, Dr. Burton H. Lee Second session - Monday, January 11th, 2010 John Rauscher CEO – Yseop jrauscher@yseop.com

3. Sunopsis – private company – strong profitability – acquired by Oracle – high valuation - CEO

4. Yseop – 20 years of R&D - University spin out – starting now the 2nd year of sales – currently B to B - 10 existing French customers – disruptive technology for every business and individuals – patent pending USPTO John is CEO and founding investor – based in Lyon

5. Paris University – Business Administration with minor in Computer Science

6. Author of 2 published business/marketing books (1999 and 2008)

7. Worked for large US companies in France:

8. Xerox – Laser printing division – #1 Sales Rep in France in 1986 (out of 1,000 SR)

9. Sybase – Startup of the French subsidiary to 50 M€ - VP Sales – 1989 to 1995Serial entrepreneurs are not common in France essentially for cultural reasons

11. Europe is a set of markets, not a unified market

12. European VCs are bankers, not risk takers

13. Highly qualified people at reasonnable cost and low turnover – mainly in France

14. Spending on structure and marketing is lower in Europe

15. Educated markets Starting business in France is not that difficult

17. First large scale customer in production

18. Angel investor

19. 10 employees

20. Potential exit: IPO or acquisition by a large software or Internet player

21. Founded in 2007 after 17 years of R&D from a team coming from ENS Cachan University

22. First year selling products in 2009

23. Enterprise software solution aimed at:

24. Automating value-added service activities that require the use of spoken or written language

25. Conveying expertise to others automatically

26. Applying a context to a knowledge database to get a personalized answer to a requestAddressing a €10 Bn Enterprise Software Market Globally

27. Application example #1: Automatic Car Sales Recommendation Expert (1/4) 1 Hum I want a red one … Hum… With enough space for my dog And low gas consumption… Hum… my new car will be great! Wish List Questionnaire (filled out by prospective customer)

28. Application example #1: Automatic Car Sales Recommendation Expert (2/4) 1 Wish List Questionnaire (filled out by prospective customer) 2 Automatic Vehicle Scoring of 5,800 car models withYseop

29. 1 Wish List Questionnaire (filled out by prospective customer) 2 Automatic Vehicles Scoring of 5,800 models of cars Application example #1: Automatic Car Sales Recommendation Expert (3/4) Bob Lester Your counselor NYC, January 11th Dear Mrs Smith, Thank you for your request on our Website yesterday. I browsed our database this morning and found five vehicles that match your requirements. I am explaining why in the attached document. Two of them are available right now in our garage. I think they will fully meet your expectations and are well within your budget! DreamCars 3 Personalized recommendation written automatically by Yseop Sale!

30. Application example #1: Automatic Car Sales Recommendation Expert (4/4) 1 Wish List Questionnaire (filled up by prospective customer) 2 Automatic Vehicles Scoring of 5,800 models of cars Bob Lester Your counselor NYC, April 23rd Dear Mrs Smith, Three months ago, you were looking at a new car on our Website. I am writing you because we have just received a new model perfectly adapted to your requirements. I have just prepared a report for you. Please have a look to the attached document which describes how well this car fits your needs. Car sold! DreamCars 3 Personalized recommendation 4 Automatic one-to-one follow up When a new car is in inventory Customer Wish List Value added: Greater market penetration and lower customer acquisition costs

31. Application example #2 : Field service and maintenance assistant for home broadband equipment repair Contextual customer data She has broadband network issue… Expertise database Yseop Virtual Expert Enterprise best practices Assistance department Yseop: “If I were you, I would ask her if the red light is blicking” Hi, I get a problem connecting to Internet…. Quicker customer support and problem resolution, at least 50% reduction in field service visit costs, higher customer satisfaction Customer

33. Spreadsheets & Graphics

34. Individualized comments in natural language

35. Prospective analysis

36. Customized diagnosis

37. Possible action plansThe Yseop Approach: Data + Interpretation + Diagnosis + Action Plans The Traditional Business Intelligence Approach… Data istough to interpret! Yseop creates automated “life-like” communications, just as a highly-skilled expert would

38. Other examples of applications: ASSIST CALL CENTERS PERFORM LIKE EXPERTS WITHOUT TRAINING ENABLE ONE-TO-ONE MARKETING COMMUNICATION SET UP A NEW GENERATION OF INTELLIGENT IVR AUTOMATE DELIVERY OF PERSONALIZED ADVICE WITHOUT HUMAN INTERVENTION FULLY AUTOMATE CUSTOMER RELATIONSHIP ON INTERNET: EMAILS, FAQ

40. Dramaticallyenhancescustomerexperience