Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - HuMaInn DataMall (DataMall (Behavee) is an open ecosystem for the eCommerce cyberspace)

Teaser

Every human endeavor and their activity and behavior in Cyberspace is generating data and is influenced by various data inputs. However, in the area of E-Commerce, buying anything in the cyberspace is usually followed by unpleasant experience of remarketing storm. No matter...

Summary

Every human endeavor and their activity and behavior in Cyberspace is generating data and is influenced by various data inputs. However, in the area of E-Commerce, buying anything in the cyberspace is usually followed by unpleasant experience of remarketing storm. No matter what customer does, actual remarketing deadlock algorithms, does not allow experience on anticipated customer future needs.
This deadlock is driven by actual state of the online advertising industry’s business model: driven solely by number of clicks and views, but not by the real sales transactions. And this is where our solution, Behavee, comes to play. It disrupts the status quo regarding customer numbness by offering relevant offers at the right time, at the right place, with the right pricing. And equally important, it also allows companies of every size to share and simply bundle their products with other companies.
Behavee is an Open Source Cloud based public Platform – a service for hyper-personalization and recommendation of goods, services or content, based on the ultimate understanding of user’s digital behavioral patterns. We are one of the revolutionary solutions that will impact Digital Economy agenda, via instant understanding of customer behavior. Our algorithm is constantly improved via Machine Learning, with each new transaction and each new segment, the data validity growth exponentially. Its scalability is simplified due to digital platform-based business model, thus entering into new segments and geographic markets as a matter of marginal costs.
Within this feasibility study, we focused on validation of operational, commercial and legal feasibility and economic viability of Behavee. At the same time, Behavee runs for several clients in a pilot mode providing us with a validation in the real live environment and adding results to the vast database of anonymized information.

Work performed

Objective 1: Validation of our assumptions in the real-life environment: We were successful very soon in attracting customers into our commercial pilot to generate substantial amount of metadata. As of today, we have registered in our system 7 large-volume customers. We are tracking 19 websites, we have already recorded 5,5 million page visits & collected 23.8 million web views in total volume of 158 GB of data. Our most significant large data-volume customers in the pilot are TicketLive (e-commerce) and Tiscali (media).
Based on this validation exercise, we were able to:
1) confirm our substantial added value from collected data,
2) fine-tune our business approach and
3) redefine our solution and its features together with
4) detailed release roadmap.
We were also able to test the data collection from different triggers on customer’s website (basket) and collect/provide information on complete end-to-end user journey. In parallel we worked with The Centre for Behavioral Experiments “CEBEX” on validation of our theoretical assumptions about correlation of the end user behavior in cyberspace and people’s “customer sentiment”. The results were also available sooner than originally expected, and these outcomes are paramount in refining the computational algorithms of our solution.

Objective 2: Market Validation: We have conducted desk-based market studies as well as field research. Studies were sourced from: OVUM 2018 trends to watch: consumer digital commerce, Statista, Online purchase criteria, Gartner, Business Insider Intelligence, EC Digital Single Market reviews and other resources. We were exploring Microsoft partner network, communicating our approach with other potential partners and exploring possibilities offered by Enterprise Europe Network on partnership match-making. Cooperation with CEBEX resulted in understanding of the user behavior and its parallels in digital environment.

Objective 3: Sales approach validation: We have tested our sales approach with potential partners in six European countries and settled our Go to Market strategy with geo-rollout roadmap. Go to market strategy is based on 4 main pillars:
1) Explore Microsoft business network,
2) Partner networks and associations,
3) Integration of E-commerce solutions,
4) Behavee.org community and marketplace. We both modified & verified following aspects of our business model based on this large-scale sales approach validation: pricing strategy, onboarding approach (full automation), integration models, community model Behavee.org.

Objective 4: Searching for partners in the EU countries: We are exploring all potential partner channels opened to us through H2020 Seal of Excellence members of the EIC community. We proudly took a part in the CzechInvest Entrepreneur Mission in Brussels and we are part of the Czech Invest Accelerator network and members of the European Parliament of Enterprises section, we managed to initiate negotiations with over 45 partners, with whom we are actively communicating and starting concrete cooperation steps in following areas: Implementation and sales partnerships, Behavee.org community (open source development), potential Angel and VC investments.

Objective 5: IPR & Regulatory Strategy: Our IPR strategy was consulted with a patent lawyer, Enterprise Europe Network and the Office for Industrial Property where our approach was validated. We will be applying a multilayered protection strategy, a combination of formal and informal protection instruments, because a software is not patentable within European legal framework. The source code protection is ensured by controlled access and the encryption will be combined with strong contractual protection. GDPR requirements were and always will be respected when building our solution, and prior to launching in each new market and with each new system change we will be consulting with the Data Protection Officer.
Besides focusing on the Feasibility Study, since Phase

Final results

Summary of critical findings
• Hyper-personalization is the only way how to stop spamming customer and targeting him with not relevant offers.
• Changing the transaction-based business model to subscription one - this business model was based on income from successfully completed transaction (e.g. when customer buys product we recommend it in the personalized offer). The subscription model is more transparent, mature and easily understandable than transaction based.
• Democratized, equal access to data and hyper-personalization - there is a big market demand for easy to use, transparent and open solution for hyper-personalization.
• Digital behavioral data used to provide the 360° comprehensive Customer picture in existing backend systems - using the Behavee API, Customer digital profile can be interconnected with Company CRM.
• Vertical sharing - the trend opening new revenues and business opportunities allowing company to use solution (e-shop, mobile app…) of its business partner as distribution channel for sales of own products or services.
• Focusing the sales and marketing effort mainly on business partner networks, associations and communities instead of direct sales.
• Performance based pricing and sales automation as critical business features - based on market research and analysis of future trends we realized that dynamic pricing will be one of the most demanded business features helping companies both in revenue and customer satisfaction. The sales automation allows Company using Behavee immediately without any limitations.
• Open API as basic pillar of Behavee growth strategy - Opening Behavee basic functionalities in form of APIs for 3rd party development is the critical business strategy which help us to achieve our global growth ambitions.
Recommendations
We performed validations as part of the Feasibility Study and achieved all 5 main objectives; therefore, we are ready to continue to H2020 Phase 2. First contracted customers, business partners and investors, helped us to set more realistic strategy and development plan - primarily based on our possibilities, today market demands and analysis of future trends. Possible success in H2020 Phase 2., will open Behavee the opportunity to become the global player not only in hyper-personalization, but generally in building the better and much more effective working with consumers demand.

Website & more info

More info: http://www.behavee.com.