venture/STRATEGY.md

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# Strategic Direction
## Executive Summary
**Mission**: Bridge the OT/IT gap for small-to-mid manufacturers through edge-first industrial IoT solutions.
**Vision**: Become the trusted partner for manufacturers who want modern visibility without cloud vendor lock-in.
**Positioning**: "The OT/IT translator for manufacturers who value data sovereignty and predictable costs."
## Market Opportunity
### The Problem
- **OT/IT Skills Gap**: Controls engineers don't understand cloud; cloud engineers are terrified of PLCs
- **Enterprise Solutions Too Expensive**: Siemens, Rockwell, GE solutions cost $50k-500k+
- **Cloud Skepticism**: Manufacturing companies hesitant about AWS/Azure due to data sovereignty, vendor lock-in
- **Brownfield Challenges**: Legacy equipment needs connectivity but can't afford rip-and-replace
### The Opportunity
**Market Size:**
- Industrial IoT Platform Market: Growing at 13-47% CAGR
- Virtual PLC Market: $1.8B (2025) → $3.6B (2032)
- Digital Twin Market: $21B (2025) → $150B (2030)
**Underserved Segment:**
- 20-100 employee manufacturers
- $10-100M annual revenue
- 1-5 production lines
- Aging infrastructure
- No dedicated IT staff
**Market Gaps:**
- Enterprise solutions too expensive for SMB
- Cloud-first vendors don't address data sovereignty concerns
- Most MSPs lack OT expertise
- Virtual PLCs still <5% of market (huge whitespace)
## Competitive Advantages
### 1. Rare Skill Combination
- 13 years PLC programming (Allen-Bradley, Siemens)
- 4 years cloud engineering
- Speaks both OT and IT languages fluently
### 2. Edge-First Architecture
- On-premise or customer hardware deployment
- No forced cloud migration
- Works offline (critical for manufacturing)
- Sub-10ms latency for control applications
### 3. Bootstrap Economics
- No VC required
- Customer-funded growth model
- Start with $500 capital
- Scale with cash flow
### 4. No AWS Conflict
- Positioned as complementary, not competitive
- Can integrate WITH AWS/Azure if customer wants
- Focus on edge processing layer
- Targets AWS non-customers (data sovereignty crowd)
### 5. Platform Expertise
- LXC container experience from ZeroLagHub
- Multi-tenant architecture proven
- Can scale efficiently
## Strategic Positioning
### What We Are
**"The Edge-First Industrial IoT Partner"**
- OT/IT integration specialist
- Edge monitoring and control
- Data sovereignty advocate
- Predictable cost alternative to cloud vendors
### What We're NOT
- Cloud platform replacement (we're edge-first)
- Enterprise software vendor (we're bootstrap/agile)
- Controls-only integrator (we bridge to IT/analytics)
- Hardware vendor (we're platform-agnostic)
## Target Customer Profile
### Ideal Customer Characteristics
**Company Profile:**
- 20-100 employees
- $10-100M annual revenue
- Discrete manufacturing, food/bev, or packaging
- 1-5 production lines
- Some existing PLCs/SCADA
- Limited IT resources
**Pain Points:**
- "We have no visibility into production"
- "Our data is trapped in PLCs"
- "We can't afford Siemens/Rockwell"
- "We don't trust cloud vendors with our data"
- "We need better OEE tracking"
**Buying Triggers:**
- New plant manager wants KPIs
- Quality issues requiring root cause analysis
- Customer audit requirements
- Capital budget available ($15k-50k)
- Regulatory compliance needs
**Decision Makers:**
- Plant Manager (primary)
- Maintenance Manager (influencer)
- Operations Director (budget holder)
- IT Manager (occasional gatekeeper)
## Business Model Evolution
### Phase 1: Consulting (Months 1-3)
- **Service**: OT/IT integration projects
- **Revenue**: $150-200/hour or $15k-40k per project
- **Purpose**: Cash flow, market validation, network building
### Phase 2: Platform (Months 4-9)
- **Service**: Edge monitoring + consulting hybrid
- **Revenue**: $1k-2k/month recurring + project fees
- **Purpose**: Transition to recurring revenue, build infrastructure
### Phase 3: Premium AI (Months 10-18)
- **Service**: Predictive maintenance, computer vision
- **Revenue**: $4k-8k/month premium tier
- **Purpose**: Differentiation, margin expansion, moat building
## Competitive Strategy
### Against Enterprise Vendors (Siemens, Rockwell, GE)
**Their Strengths:**
- Brand recognition
- Comprehensive solutions
- Deep pockets
- Existing customer relationships
**Our Response:**
- Target customers they ignore (too small)
- 10x faster deployment (weeks vs months)
- 10x lower cost ($20k vs $200k)
- More flexible (no vendor lock-in)
### Against Cloud-First Vendors (AWS IoT, Azure)
**Their Strengths:**
- Scalability
- Feature breadth
- Marketing budgets
- Integration ecosystem
**Our Response:**
- Target data sovereignty conscious customers
- Edge-first (works offline)
- Predictable costs (no per-message fees)
- OT expertise (we understand PLCs)
### Against Traditional MSPs
**Their Strengths:**
- Existing relationships
- IT expertise
- Support infrastructure
**Our Response:**
- OT expertise they lack
- Manufacturing-specific knowledge
- Can actually program PLCs
- Understand production environments
## Growth Strategy
### Year 1: Establish & Validate
**Goals:**
- 10-15 customers
- $35k/month recurring revenue
- 5-10 case studies
- Network of 50+ manufacturing contacts
**Tactics:**
- Personal network outreach
- LinkedIn content (OT/IT bridge positioning)
- Local ISA chapter participation
- Referral program
### Year 2: Scale & Systemize
**Goals:**
- 30-40 customers
- $80k-120k/month revenue
- 2-3 employees/contractors
- Standardized processes
**Tactics:**
- Content marketing
- Partner with system integrators
- Attend trade shows (Pack Expo, Automate)
- Channel partnerships
### Year 3: Expand & Dominate
**Goals:**
- 60-80 customers
- $200k+/month revenue
- 5-8 team members
- Regional presence
**Tactics:**
- Geographic expansion
- Vertical specialization
- Partner ecosystem
- Potential acquisition targets
## Risk Mitigation
### Key Risks
1. **AWS Non-Compete Violation**
- Mitigation: Edge-first positioning, target non-AWS customers
2. **Slow Customer Acquisition**
- Mitigation: Start with network, consulting cash flow buffer
3. **Technical Complexity**
- Mitigation: Start simple (monitoring only), add features gradually
4. **Competition from Established Players**
- Mitigation: Focus on underserved segment, move fast
5. **Cash Flow During Build Phase**
- Mitigation: Consulting revenue funds platform development
## Success Metrics
### Phase 1 (Months 1-3)
- [ ] 2-3 completed consulting projects
- [ ] $20k-45k revenue generated
- [ ] 5+ discovery calls completed
- [ ] 1 case study published
### Phase 2 (Months 4-9)
- [ ] First GTHost server deployed
- [ ] 5-8 recurring customers
- [ ] $10k-15k MRR achieved
- [ ] Multi-tenant architecture proven
### Phase 3 (Months 10-18)
- [ ] GPU server operational
- [ ] 12-20 total customers
- [ ] $35k+ MRR achieved
- [ ] First contractor hired
## Strategic Principles
1. **Bootstrap Always**: Never take funding if avoidable
2. **Customer-Funded Growth**: Use their projects to build platform
3. **Edge-First Forever**: Cloud is optional, edge is mandatory
4. **OT/IT Bridge**: Always position as the translator, never just one side
5. **Slow is Smooth, Smooth is Fast**: Quality over speed
6. **Data Sovereignty**: Customer owns their data, always
7. **No Vendor Lock-In**: Platform-agnostic, standards-based
8. **Manufacturing-First**: Build for production environments, not IT labs
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*Last Updated: December 2025*