When we left off, the founding trio had released version 1.0 of Klipfolio Dashboard to a warm reception by the consumer market. At its peak, the consumer product received more than 1000 downloads per day. But their success was tempered by the fact that they had yet to land a significant paying customer.
That would all change in 2004 when Klipfolio was approached to build a branded desktop dashboard or a RIA (rich internet application) for Staples. This opportunity meant that the team could test their expertise with a top tier customer and that the new resources would allow them to invest in their underlying intellectual property. Generally speaking, a branded dashboard is an application that allows consumer brands to set up a two-way communications channel with their customers. These dashboards came with a variety of features, including secure access to the user accounts, streamlined product ordering processes, and data alerts and notifications. In short, branded dashboards were a valuable application that increased customer loyalty.
Klipfolio's branded dashboards, and the success of the Staples Easy Button desktop application, attracted more big-name customers including American Express, Intel, and H&R Block. Although based on the same platform, each branded desktop application they built was custom made to address each company's unique specifications. Beautiful and unique in their appearance, one application would present credit card balances, and access to members only events; others would entice users with today's jackpot and the latest bingo winners. "We learned a tremendous amount working on the branded applications," recalls Allan Wille. "The opportunity to work with enterprise level clients facilitated one of the largest growing periods in our company's history."
This period served as a growth spurt for the team. To begin with, they moved their offices from Carleton University to its current location in downtown Ottawa. Next, the team expanded and drew in new talent to work on product development, marketing, sales, and established a support and QA role as well. And technically, the team was having its product tested by some of the world's largest brands. At the time, smartphones, and a way to reach customers on their phones was of increasing interest - with operating systems like Symbian and Windows Mobile dominating the market. Intrigued by the potential of mobile dashboards, Klipfolio made its first foray into the mobile space in 2004. While Klipfolio wouldn't go mobile until 2011 (and with a different focus), these developments were symbolic of the investment Klipfolio was able to make in its intellectual assets. The end result of this growth spurt was to prepare Klipfolio for its biggest move yet.
The branded desktop applications served as a proving ground for the team, having successfully grown revenues and increased the visibility of the company. However, the success, the market, and the customers were not to last. Selling into the branded desktop space was lucrative, but strategically not a market in which Klipfolio could exponentially grow revenues - it was, after all, mostly services revenue that accounted for the current growth.
At the same time, their work in the branded space had exposed the team to the problems of data visibility at the enterprise-level. The Klipfolio platform, right from the onset, had been a data delivery and presentation tool - for consumers in the early years, for B2C brands, and now possibly for internal enterprise use. Was the tool flexible enough that developers could just as easily use a Klip to display a key performance indicator (KPI) as they could a news feed? As the team discussed the enterprise landscape and the opportunities and challenges of selling into the business intelligence market, the question was really about how to leverage the platform and build a licensing based business model.
In 2007, at the height of the hype of branded dashboards, Klipfolio shifted its focus to operational business intelligence (OBI) and started talking about KPI dashboards. Just as consumers wanted to see data that came in via the web, enterprise customers wanted a consolidated and simplified view of their KPIs that would help drive business decisions. A dashboard that displays KPIs in a way that promotes positive action is a valuable asset to any organization. As with the consumer dashboard, Klipfolio continued to believe that real-time data should be accessible to everyone.
The move was a calculated risk and it paid off early when Klipfolio announced their first big KPI dashboard deployment by Europe's largest airline, Lufthansa. The early win was pivotal in the company's history, acting as a catalyst to accelerate entry into the enterprise market. But in December 2007 the team faced a new reality when news broke that a financial crisis was shaking up the world economy, toppling small and large businesses alike. "The immediate effect of the recession was that enterprises needed to do more with less," says Allan Wille. The question on everyone's mind was whether money conscious enterprises were going to save a spot in their budget for a KPI dashboard.
In the third and final part of the history of Klipfolio, the team will emerge from the recession with new enterprise customers, and prepares to debut its long-awaited mobile BI dashboard.
The story of Klipfolio begins in early 2001 when Allan Wille and Peter Matthews recognized an opportunity for simplifying how people accessed information on the web. As Peter told the Ottawa Business Journal in 2002, "I kept catching myself wasting time online, checking out a ton of different sites each time I browsed the web." Like Peter, they knew that people were constantly checking multiple websites to retrieve one or two tidbits of data. Immediately, they recognized the potential for a tool that could set up the automatic retrieval of that data and then consolidate that data onto a single view. Their goal from the outset was to dramatically simplify how people monitored the information that mattered to them.
Allan and Peter knew that before they could bring their idea to life, they needed to bring on a CTO who would share their vision. Enter James Scott, a hot-shot software developer based in Ottawa whose talent and energy would help guide the technical development of Klipfolio Dashboard. With James Scott on board, Serence Inc (later renamed Klipfolio) was officially founded on August 2, 2001. With the trio assembled, work began on getting what would become version 1 of Klipfolio Dashboard into the market.
That's not to say that everything went smoothly for the trio. In fact, they all had to tighten their belts quite a bit and endure the trials of being a small start-up with a big idea. Not only did each of the founders agree to pitch in some cash for start-up capital, but they also agreed to not to take salaries for the first few months. Peter Matthews, avowed car enthusiast, even had to sell his beloved ride to generate some extra capital. Despite the lean times ahead, the trio stuck to their guns and set up shop in Allan Wille's basement.
By December 2001, the trio started beta testing for version 1 and the initial response was already very positive. This early version of Klipfolio Dashboard leveraged RSS and XML to allow users to organize multiple data feeds to populate a dashboard. The lynch-pin of these dashboards was an individual reporting device called a Klip. Each Klip presented a single tidbit of data, such as an RSS feed, and could be organized together with other, unique Klips on your dashboard. This idea still serves as the foundation for Klipfolio Dashboard.
Klipfolio Dashboard version 1 was released to the public on April 8th, 2002. Publicizing the event across multiple news outlets across Canada, the US, and the UK, the founding trio nearly became victims of their own success. They had projected Klipfolio Dashboard would have 4,000 downloads in its first month: they hit this target in 4 days. By May 6th, version 1 had already attracted 13,500 downloads! Intuitively, this may seem like extraordinary news (and it was), but the team was also worried about maintaining a high-standard of service. They wanted to make sure they were engaging with their customers and maintaining a lively public forum. In the end, the team was able to deal with this challenge and the forums became a bee-hive of activity.
Throughout 2002 and into 2003, Klipfolio Dashboard continued to evolve. One major addition to the application was the inclusion of a JavaScript-based semantic markup language that created relationships among disparate bits of data. These relationships allowed developers, for the first time, to create and modify Klips according to their own tastes. Rather than offering a prepackaged data source and visualization (like a widget), Klipfolio Dashboard became a development platform that let users and developers control everything about their Klips.
The early years were defined by the success of their product and by the search for paying customers. At its peak, the consumer product was receiving over 1000 downloads a day, with a forum that was a hive of activity. This success was a bit misleading, since the product hadn't generated a significant paying customer - something by the end of 2002 that the trio desperately needed. Despite the value and volume of activity the product generated, the team was forced to tighten their belts and continue work on an unfunded Klipfolio Dashboard.
In part 2 of the history of Klipfolio, we will see that financial success eventually came when the team was approached by a Fortune 1000 company (read part 2 to find out who!) to build branded dashboards. That success, however, only served to whet the team's appetite as they contemplated a bigger, bolder move.
One of the most exciting and rewarding things you can do in business, I believe, is to bring an idea to life. The ups, downs, and unforgettable events that happen along the way are all part of the experience ‑ I wouldn't leave any part out.
And so it was, in late 2001, along with CXO Peter Matthews and CTO James Scott, that Serence Inc. was founded, and the wheels were set in motion.
Now, 10 years later, I have had the pleasure of watching our product and our business evolve. This experience has been as unique as it has been gratifying. I have always made a habit of scribbling down observations, and after 10 years - you can imagine - I have quite the collection. That's why I'd like to take this opportunity to share 10 of my personal and business observations captured over the past 10 years.
Everything changes and everything is always in motion. Keep this in mind, and know that change opens doors, even as it closes others. You always need to be on the lookout for new ideas, and ways to improve what you have. Create a culture of trying things; diligently measuring the results of experimentation and acting objectively based on those results. This doesn't just go for your product ‑ this goes for all aspects of your business. In a changing world, you never have just once chance.
Just like in life, relationships need to be fair, honest, and of benefit to both parties. It is much better to be sincere and upfront about your expectations. Make sure to extend this courtesy to your customers and employees, too! Negotiations are bound for failure unless both parties seek out and address the inequities involved. Not only does it go a long way in building mutual respect and trust (two of the most valuable currencies in business), it will help avoid a relationship going sour down the road. Additionally, maintaining trust and earning respect is about clearly stating what you are going to do, and then doing it.
Complexity is not impressive, it's oppressive. Simplicity must be pervasive and visible in each one of your business' actions, whether it is related to product innovation or a new business strategy. People simply don't have time to interpret intricate and hard-to-read blueprints; people want something that is straightforward, honest, and, above-all, easy-to-understand. If the target audience doesn't "get" your business or your product, you have some work to do. Simplicity requires effort up front, but it will always pay dividends over the long term.
In my experience as a CEO, I've learned that finding solutions is about focusing on the problem, the challenge, and the scenario. This goes as much for developing your product as it does for working with your colleagues. Resist the temptation to present solutions yourself, as it will stifle creativity. My role is to guide decision making and assist in problem solving. I find it helpful to remember a line from George Patton: "Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity."
I've been incredibly fortunate to work with a truly talented group of people whom I value as friends and colleagues. It takes time to assemble the perfect team, some trial and error, and, of course, understanding what competencies and beliefs you want in your people. Hire the right people ‑ those with vision, passion, and discipline ‑ and you'll find that you will require less management in your hierarchy, have a team of ambassadors, and are able to adapt to changes quicker.
Just as you need to be careful about hiring the right people, it is important to choose the right customers. You need to develop an ideal customer profile, and have plans to cut those that are outside of the target, distracting you, or are not profitable. This may sound callous, but the right customer should compliment your business just as you compliment and benefit their business. It would be hard to overstress the need to build even tighter, more open relationships with your best customers. It's amazing and humbling what they will give you in return!
I can understand the temptation of some businesses to branch out and attempt to be a jack-of-all-trades. The problem with trying to do too many things at once is that you will never master any one trade. I think it is sound advice to take stock of what you know you can be really good at, then resolve to do it better than anyone else. This will make it easier for your customers, the press, analysts, and your employees to identify who you are and what you bring to the table.
I still remember the early days when we had first founded Serence Inc. and were working upwards of 12-16 hours a day. We kept that pace for longer than I'd like to admit, and I learned an incredibly valuable lesson from this experience: encourage life balance. You have to allow time to decompress and switch gears; you also have to encourage employees to think this way as well. When you are in the office, focus and work effectively, but don't forget to go home at the end of the day. It's alright if you don't check your work email every night!
In my role as CEO for Klipfolio, I've had the opportunity to grow and learn a lot over the last 10 years. History has shown that all too often employees will blindly follow the larger-than-life CEO - and it is your responsibility to remind them that the CEO is not a superstar. Businesses with this type of mentality, where leadership holds all the cards, will breed an environment of submission and decision paralysis.
You need to strike a fine balance in order to be a good CEO. Encourage independent, creative thinking and motivate decision-making. But you also have to be as omnipresent, connected, and available as possible. Be involved where you are needed and guide rather than direct, listen more than you communicate. Above all, when you get up in the morning you have to love your job and be honoured to work for your employees.
It's a fact of business: good times will come and go. As a business owner, you are destined to deal with a myriad of setbacks and challenges, large and small. Get used to it!
Some of the smartest and best decisions are made as a result of learning from your failures. Use them to your advantage as opposed to ignoring or sugar-coating issues. Similarly, challenges and necessities are unique in their ability to focus decision-making and help you get your priorities straight. Face your challenges head-on and transparently, and you will always be able to learn from them and come out stronger and smarter.
We are continuing to celebrate 10 years in business this week and have something really special in store for you! I can't divulge what it is quite yet, but I promise it will be worth the wait. In the meantime, why not check out the Visual History of Klipfolio, with new images added daily (check out our Facebook Album and our Google+ Album).
Last week was a super productive week, so let's take a moment to catch up with all things Klipfolio.
2011 was one of the most successful in our company's history, with big wins, new global partnerships, and the release of Klipfolio's mobile BI (business intelligence) dashboard. This press release created a lot of buzz, especially on Twitter.
We've added some great new support articles for Klipfolio Dashboard web and mobile. Check out these resources:
We've uploaded a ton of great images with descriptive captions guiding you through the evolution of Klipfolio Dashboard.
We've kicked off our 10 year celebrations on Facebook, Twitter, and Google+! We are leading with the visual history of Klipfolio, a collection of images showing the evolution of Klipfolio Dashboard from 2001 to present.
The evolution of Klipfolio Dashboard is intimately connected to the idea of data visibility. The impetus that drove the founders in 2001 is that there should be a way to collect disparate data sources and display them on a single view. Throughout the visual history, you will see how Klipfolio Dashboard evolved to tackle this problem first at a consumer level, and then at the enterprise level.
I will leave you for now with another preview of our visual history.
Don't forget to check out these pages for the lastest Klipfolio news!
All month, we are going to celebrate Klipfolio's 10th year in business. Okay, so technically we reached that milestone in 2011. But 2011 was perhaps the busiest year in the company's history (what with the beta and release of Klipfolio Dashboard web and mobile), so we needed some time to collect our thoughts and properly celebrate this achievement. In fact, as we closed out 2011, we got a bit of good news that puts this milestone into perspective: Klipfolio had 2.3 YoY growth in 2011!
We invite you to enjoy the celebrations with us all month long. We've got some great plans in the works, including a visual history of Klipfolio that has started today on our Twitter, Facebook, Google+, and LinkedIn pages.
I am excited to share the visual history of Klipfolio with you, because our products have evolved so much. We've come a long ways in addressing the challenges of data visibility and the visual history demonstrates how we've addressed this challenge over the years. For the first time, we are releasing some of the orginal drawings for Klipfolio Dashboard.
I'll leave you with a sneak-peek of one of the images we'll be sharing this month. This is actually one of the original drawings for version 1 of Klipfolio Dashboard.
Don't forget to check out these pages for the lastest Klipfolio news!
