MindManager Version 9 for Mac

Business Case

2

MindManager Version 9 for Mac: Objectives

Drive revenue for Mindjet­ New product announcement drives attention to

both Mac and Windows products Increase net new user licensesEstablish greater consistency across product

platforms Improve existing customer satisfaction levels

3

ANALYSIS

4

Adding up the Mac Revenue

Buy MM7 Mac, Get MM8 Mac Promo Started in 09/2009

Half of revenue allocated to MM8 total revenue due to early announcement of MM8

Total MM8 Revenue: Actual: 1,452,390 Promo: 231,711 Total: 1,684,101

5

MindManager v8 Mac Costs

Gross: $1,684,101 Cost: $623,000*Net Margin: $1,061,101 (as of 08/2010…….7 months availability)

Achieved ROI: March 2010 (2 months after launch)

Outside development: $384,000Internal overhead: $233,000Marketing spend: $6,000

1061101384000

233000 6000

MindManager v8 Mac Gross Profit

Net MarginOutside De-velopment CostInternal Overhead Cost*Marketing Campaign Spend

*Does not include any non-engineering internal costs

6

MM8 for Mac Customer Base

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MM8 for Mac Customer Base

1. FULL PRICE PURCHASESa. 31% of the customers that purchased Mac 8 were net

new customers to Mindjet – this is still a great new number and opportunity

b. 14% that purchased were MM Windows customer buying Mac for the first time – they had never held a previous mac version2. Upgrades

a. 28% were Mac prior version upgradesb. 27% upgraded already owning BOTH versions of

MindManager – Mac 7 and a Windows version (not all version 9s)

8

Mac Market Facts & Figures• Mac market is growing in the US– 1.4 million Macs sold in Q2

2008– 3.05 million Macs sold in Q2

2009• Mac shipments to businesses

grew 50% y/y (Q2 ‘09-’10)• Mac sales to government

organizations up 200% y/y• 93.96 million users of OS X

operating system (~8% market)

79%

19%

2%

In 2010-2011 is your firm likely to allow more users

to deploy Macs as their enterprise desktops?

YesNoUnsure

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MINDMANAGER VERSION 9 FOR MAC:PROPOSAL & RECOMMENDATION

10

MindManager Version 9 for Mac: Proposed Lighthouse Features

• Adopt MS Office 2011 for Mac Interface to Create Consistent MindManager Experience across Platforms

• MS Office & Outlook 2011 Integration• Presentation Mode• SharePoint Content Management Support• Google Docs Back-End Integration

11

Projected Finances for MM9 for Mac

12

Development Approach

• Development by external teams (Virtual FX)• Development resources separate from

MindManager v10 for Windows and MindManager Web projects

Doesn’t interfere with critical path of higher priority projects

13

Next Steps• Approve MindManager Version 9 for Mac• Sign UX & Development vendors• Proceed with Phase 4: Inception and Phase 5: Elaboration• Post-Elaboration XT Presentation:

– Updated financial model– Updated timeline– Detailed product plan– Preliminary go-to-market plan

Phase 3: Analyze 08/01–09/30

Phase 4: Inception 10/01

—10/28

Phase 5: Elaboration 10/29—11/24

Phase 6: Construction

11/25—4/13

Phase 7: Transition

04/14—04/20

BACK-UP

4/22/2010 14

15

MindManager Unit Growth

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

0

2000

4000

6000

8000

10000

12000MindManager for Mac Unit Sales by Quarter

MM MacLinear (MM Mac)

Quarter by Year

Num

ber o

f Uni

ts S

old

MM7 launched in Q2 2007

MM8 pre-sales began at the end of Q3 2009

MM8 launched in Q1 2010

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MAC MARKET ANALYSIS

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MindManager Version 9 for Mac Requirements Research Sources

• Staff Interviews– Interviews staff members representing product management, product marketing,

program management, user experience, engineering, sales, marketing, customer service, and EMEA

• Customer Feedback– 1,432 support requests pertaining to MindManager for Mac dated 02/2009 to

08/31/2010• Design Partner Data

– Reviewed design partner data for 1,392 users from 11/2009 to 4/2010 Windows users, and ascertained certain assumptions about the Mac audience from that data

• Online Community Feedback– Yahoo! MindManager group feedback 11/2009 to 08/2010– Mindjet Blog feedback– Mindjet User Forums feedback 05/2007 to 08/2010

18

Appendix

• http://www.businessinsider.com/2008/7/microsoft-s-real-problems-cloud-computing-and-the-second-coming-of-apple 07/2008

• http://www.geek.com/articles/apple/apples-q4-earnings-shine-thanks-to-a-record-number-of-macs-and-iphones-sold-20091020/

• http://arstechnica.com/apple/news/2010/08/macs-making-bigger-enterprise-gains-than-rest-of-pc-market.ars 09/2010

• http://www.numberof.net/number of mac users/ 05/2010

FOLLOW-UP TO XT PRESENTATIONAdded 09/21/2010

4/22/2010 19

20

125,454 Mac customers 22,653 Mac customers have MM Windows102,801 Mac customer have no MM Windows 10,016 Mac customers have Version 8*2,852 Mac8 customers have MM Windows7,164 Mac8 customers have no MM Windows *Mac Version 8 customers (10,016) are customers who bought Mac7 Licenses or Mac7 Upgrades after 11/24/2010, and customers who bought Mac8 Licenses or Mac8 Upgrades.

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Marketo Data 11/24/2009 – 09/20/2010

Category Win Previous Mac Email Count

Total MM8 Mac 0%-100% 0%-100% 10016

Mac8 emails with previous Win 100% 0%-100% 2852

MM8 emails with previous Win but no previous Mac (Win -> Mac8) 100% 0% 1205

Mac8 emails without previous Win 0% 0%-100% 7164

Mac8 emails with previous Mac (Upgrade or MSA -> MM8 Mac) 0%-100% 100% 5275

Mac8 emails with previous Mac and previous Win 100% 100% 1647

Mac8 emails with previous Mac and no previous Win 0% 100% 3628

Mac8 emails without previous Mac (new MM8 Mac License) 0%-100% 0% 4741

Mac8 emails without Win or Mac (new MJ Cust) 0% 0% 3536

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MM8 for Mac Customer Base

23077

3785

Units of MM8 for Mac

Net New LicensesExisting User Upgrades

86%

14%