Ramón Romero Pérez, Head of Global Supply and Facility Management at Bigpoint spoke at the SCL Event July 2013

1. Sourcing as a Strategic Lever
Ramón Romero Pérez
Head of Global Supply and Facility Management (GSFM)
Supply Chain & Logistics Event
Heathrow, July 10, 2013

2. 2
Bigpoint is a three-digit million Euro (in revenue) company
which offers browser-based online games
Company overview
• Developer and publisher of
browser-based online games
• Founded in 2002
• Three-digit million Euro sales in
revenue
• More than 700 employees
worldwide in 10 local offices
(HQ in Hamburg, Germany)
• Acquired in 2011 by Summit
Partners and TA Associates for
US$ 350 mil.
Total market for online games is US$ 19 bn.
and growing by more than 15% annually
Selected products

3. 3
Manage your own farm and perform all activities:
cultivate products, harvest products, sell products
Objective of
the game
Free to play
The game can be accessed through browser and
played for free (even to advance you do not need to pay)
Voluntary
payment
If players want to advance faster in a game or buy improved
or customized features (e.g. fertilizer, additional workforce for
harvest season, seeds for exotic products), they can pay for it
Business model: “Free to play – voluntary payment”
Revenue is generated through “virtual products”

4. 4
10
local sales offices
1,000
media partners
30,000
affiliate partners
Worldwide distribution through local sales offices and more
than 1,000 distribution partners

5. 6
What does a company like Bigpoint purchase actually? –
60% is spend related to IT and Marketing
Marketing
(~40%)
IT
(~30%)
Production
(~20%)
Other
• Hardware
• Software
• Hosting services
• …
• “Classical“ Marketing (Agencies,
TV spots)
• Digital Marketing (SEM, SEO,
Social marketing)
• Marketing consulting
• …
• Art/ Sound services
• Programming
• …
Sub-categories Typical challenges
• Financial services (Audit, Tax, etc.)
• …
• „Online marketing“ is a very new
discipline (SEO, SEM, social) – is it going
to substitute or complement
„traditional“ marketing
• Costs of online marketing have
quadrupled during the last years – so
has marketing‘s effectiveness
• Right technology for managing large
amount of data (“Big Data“)
• Connectivity to new markets (e.g. BRIC)
• Virtualized vs. Stationery infrastructure
• Many services/ products/ vendors are
very new – who is there in the next five
years
• Vendors lack often structures – who are
the right ones to support growth
Main categories
(% of spend)

6. What is the Strategic Value of Sourcing?
7
Costs and Cash optimization
Innovation
Sourcing
as
strategic
lever
3
Revenue generation
Cross-functional collaboration
2
1
4

7. Optimization of Costs and Cash is bread and butter
business in Sourcing – and helps to show tangible results
8
1
Cash
Costs
Alternative to reach cost and cash
optimization are often more difficult
and painful to achieve
• … Reduction of labor costs?
• … Increase of end product prices?
• ... Higher utilization?
Sourcing

8. Sourcing as a “Revenue-generating“ discipline
2
• Bigpoint cooperates with more than 1,000 media partners,
TV stations, cable networks worldwide
• Media partner provide free media spots or digital marketing
• Bigpoint’s payment is subject to revenue share
Media spots/
digital marketing
Revenue share

9. Sourcing as an enabler for innovation
10
• Bigpoint has “zillions” of static and dynamic user data -
minute by minute, day by day
• Bigpoint lacked technological capabilities in order to manage these data
• In a innovation partnership, new technology to analyze existing
customer data in real-time was applied to Bigpoint
• 330 mil. user
• “Zillions“ of static and
dynamic user data
Co-innovation project on
BIG DATA with leading
IT software provider
3
+ =
Real-Time Analysis
• Dynamic Pricing:
• e.g. one-time price
discounts for products
• Real-Time, customized offers:
• e.g. another feature/
product if customer is
signaling to quit a game

10. Sourcing as enabler for “Cross-collaboration“
11
• Bigpoint submits more than 30 mil. emails to users
per day (no SPAM!)
• These emails are either for based on CRM activities (e.g. newsletters) or
system emails
• In order to submit, emails more efficiently, an external provider was
selected involving several stakeholders with diverse interests
Marketing IT Finance Legal
4
Procurement
Manages stakeholder, interests and “bring people together“
Good
solution
Stable
system
Cost and
cash
efficient
Major interest
Complies
with data
security

11. 12
• Costs and Cash Optimization are a basis
• Sourcing is a Strategic Lever beyond cost and cash
optimization …
• … because it can contribute to Revenue
• … it helps to identify suppliers for leading-edge
technology
• … it supports cross-collaboration within an organization
Key learnings
Summary

12. Find us on
Bigpoint GmbH
Ramón Romero Pérez
Head of Global Supply and Facility Management
Drehbahn 47-48
20354 Hamburg
Germany
Tel +49 40.88 14 13 - 223
Fax +49 40.88 14 13 - 11
r.romero@bigpoint.net
www.bigpoint.net
For any questions, please do not
hesitate to contact me
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