1. Optimal Management, LLC
Participant in SAP Startup Focus
Development Accelerator
Resident at Skolkovo Innovation Center
We optimize Supply Chains of multinational companies
2. 2
Problem
Optimization of Global Supply Chains
How do you establish the most efficient Flow of Goods and
corresponding Transfer Prices if your assets are in multiple countries?
3. 3
• Expansion of globalization leads to complex supply chains
• Current optimization techniques are linear and limited in
scope
• Calculations for a mid size company involve millions of
variables and several terabytes of data
Problem
Optimization of Global Supply Chains
4. 4
SAP ERP
SAP APO
SAP HANA
Hadoop
Cluster
Innovative solution
Big Data and Advanced Analytics
• Sophisticated mathematical models of supply chains
• New numerical methods
• Modeling and Optimization on SAP HANA and Hadoop
• Seamless integration with SAP Business Suite
5. 5
Business model
• Assistance from SAP Startup Focus Development Accelerator at first steps
• Market through SAP and SAP Partner Network
The company will get its revenue from:
• Licensing the products
o Sales through SAP Price List
o Sales through SAP Partners
o Direct sales
• Revenue from consulting services on development of mathematical
models as well as training fees from partners involved in integration
50% revenue sharing model with
the companies selling our products
6. 6
Market Size
Total market size is the following
• SCM market was estimated by Gartner at $7.7 billion in 2011
o SCM market for multinational companies represents 25% of the total SCM
market and will grow with expansion of globalization
o More than 10,000 companies in this segment will be interested in our products
Targeted companies are
• Big multinational corporations, including
o BP, EADS, ArcelorMittal, Nestle, Toyota Motor, Intel, Pfizer, Gazprom, etc
• Upper segment of middle size companies, including
o Burberry, Bionorica, Kronotex, UMC(United Metallurgical Company),
Russian Sea, etc.
7. 7
Competition
Simultaneous optimization can yield up to 5% increase in profit
Products
Optimize revenues
through manipulation of
flow of goods
Optimize revenue
through manipulation of
transfer prices
SAP, Oracle, JDA Software
and others
(use fixed transfer prices)
─
THOMSON REUTERS
(Global Tax Planning)
─
(use fixed flow of goods)
Optimal Management
8. 8
Intellectual Property
• Ph.D. thesis described mathematical model &
integration with SAP
• We are patenting the following innovations:
• Numerical algorithm
• Parallelization of Algorithm
• Data model
• Architecture
9. 9
• Experienced CEO with years of executive experience
• World renowned CSO
• 3 Dr.Sc and 2 Ph.D
• 200+ publications on Optimization and Numerical Algorithms
• SAP guru consultants on SCM
Team
11. Optimal Management, LLC
We are looking for $1.2M funding
on patenting and prototype
Russian Venture Company (RVC Seed Fund) can invest - $0.8M,
Needed private funding - $0.4M.
A seed investor is available to cover 50% of the required private funding = $0.2M
We optimize Supply Chains of multinational companies
In USA: Vitaliy Baklikov vitaliy.baklikov@optimalmngmnt.com
In Russia: Andrey Sukhobokov andrey.sukhobokov@optimalmngmnt.com
13. 13
Value drivers
• Strong team of scientists + business professionals
• Patentable technology
• Scalable business model
• High margins (2 licenses cover the entire product cost)
• 8 times return on investment in 2 years
14. 14
Exit
• In 2 years (for seed investor):
- Sell shares to big VC (RVC, VEB, other)
• In 3-5 years:
- Trade sale to SAP, Accenture, IBM, Ernst &
Young, PWC, etc.
• In 7-10 years:
- IPO
15. 15
Where we are today
• Ph.D. thesis with product ideas was defended by a team
member
• Entered Skolkovo program through expert committee and is
now a contender for a grant
• Entered SAP Startup Focus Development Accelerator
program in May 2013
• Working on prototype
16. 16
What’s next
Timeline 05/13 10/13 03/14 08/14
Entered
SAP
Startup
Focus
Program
Proof Of
Concept Built
File patents
Pilot customer
Full Prototype
Next customer
