Visio IPO Roadshow Presentation

These are the 38 actual PowerPoint slides presented by Jeremy Jaech, Ted Johnson, and Marty Chilberg on the pre-IPO roadshow in October-November 1995. Jeremy presents the first set of slides; Ted the middle, product-oriented ones; and Marty Chilberg closes with the financial slides. Following the presentation was an open Q&A session.

This was presented probably 50 times over the course of 3 weeks to audiences ranging from maybe as many as 50 to as few as 2 or 3.

Click slide to advance.

Thanks for coming

I’m very pleased to present Visio Corporation to you today.

Based in Seattle

Company started in 1990 and has 150 employees.

Been shipping for 3 years and have sold more than 525K seats since then.

We’re in x of the F100 companies...

We are a second-generation software company...

Second-generation means:

-- business model

-- product architecture

-- management

Technical skills from Aldus

Financial systems from Symantec

Marketing skills from Microsoft

The mission of the company is...

The essence of communication is that the receiver gets it exactly as the sender intends -- drawings are great for this.

So, drawings are not for individual use

They are for communicating ideas

A tool for creating drawings becomes interesting when it is ubiquitous

It can be emailed and read on the other end.

We want to be that ubiquitous drawing standard.

That means we want to be on every desktop.

Today we are on about 1% of business desktops with two main products, Visio @ $149 and VT @ $299.

So how do we accomplish our mission?

Before you understand anything else, you must understand this:

This isn’t about creating art--

It’s about creating business diagrams.

People don’t draw with Visio -- they create drawings.

Visio is a new way of creating drawings that greatly increases who can draw because it changes the way they draw.

The drawing metaphor is different and the product architecture is different.

Let’s start by looking at drawing before Visio...

Example of an office spaceplan used by a facilities manager to populate a space with office furniture and equipment.

Before 1992, this is the way the drawing market looked.

CAD - $3000 systems replacing minicomputers; the realm of professional drafters - AutoDesk

Illustration - $700 products for the art department - Adobe, Corel, and MacroMedia’s markets (we helped create this market!)

Draw - the low-end, cheap but ugly drawing you get for free; or the specialty diagramming tools that only do one kind of drawing - the flowcharters, the org charters, etcetera.

These are all interesting markets, but they ignore the bulk of the market! The mainstream business user running MS Windows and probably MS Office.

Enter Drag & Drop Drawing - targeted at the bulk of the market.

Based on a simple idea - that the PCs on everybody’s desk are finally powerful enough to support really useful drawings, if the software is

1) easy for people to learn--and remember how to use

2) broad enough to cover a wide range of drawing types and extensible to new applications; and

3) powerful enough so users don’t quickly hit the limits of the software and give up in disgust.

Now, let me show you that drawings are important to business computer users.

People want drawings but they don’t want to draw, particularly on a computer.

People can better represent their ideas with drawings-- and it’s the easiest way for other people to see it their way too.

Walk around your office and look at the whiteboards. You’ll see them covered with boxes, and arrows, and all kinds of diagrams. You can’t talk about your business without drawing!

Our market research shows that the single biggest thing Visio replaces is hand drawing

In the world of email and electronic documents, how are you gonna get those drawings in the documents? You need an easy-to-use but really useful drawing program.

So how many people want drawing?

Our market is the mainstream business user. Down in the lower left is the DOS-based CAD market, the realm of AutoDesk. A million seats, of which AutoDesk has about 750,000. In the middle is the illustration market, the realm of Corel and Adobe. At the end of 1994, about 1.5 M seats. These are NOT our markets.

Our target market is 60% of the mainstream business market, based on quarterly surveys done by CI InfoCorp. Their surveys seek to determine how many users need or want to create business diagrams on their computer. For the last three quarters, the data has consistently showed that 60% of business users selected randomly from a pool of Windows users need or want business diagrams. We estimate the Windows market in 1996 to be 100 M seats.

Our target market is the 60 M users of Microsoft Windows who need or want business diagrams.

So, how do we capture this very large market?

By building partnerships with our corporate customers.

We take the same approach that Microsoft and Symantec take in building their corporate business.

We start by penetrating the IEUs in corporations

As usage spreads, we work with IS to make Visio the graphics standard

We then offer volume licensing to lower per-seat costs but increase overall usage

Finally, we seek to drive Visio deeper into corporate accounts by solving important (but less general) problems for the customer.

Let me show you our progress to date.

This is a list of several of our corporate customers, all of whom have entered into volume licensing arrangements with Visio. As you can see, the range of industry segments covered by this list is quite broad

How do we get started in these accounts, and how do we grow usage once we’re in the door?

We start by solving specific drawing problems at the departmental level. Depending on the customer, this could range from Business Process Re-engineering diagrams to Timelines or Engineering Schematics.

I think of this as “lighting fires” around an organization. Once we’ve set a few fires, we work on fanning the flames together until Visio products and technology is used broadly across the organization.

Because what we have here is a broad horizontal technology that can meet a wide variety of specific drawing needs throughout the organization.

And once we’ve successfully solved customer problems in one area, we can easily extend into other areas.

Let me turn it over to Ted to talk about our products and technology.

A second-generation graphics engine. Powerful by any measure: floating point coordinates, rich set of graphic primitives, and support for scaled drawings. Visio can handle measured drawings such as floorplans as easily as it handles simple diagrams such as flowcharts.

A modern Windows design. All the code you see in Visio was designed and implemented since 1991. It’s object-oriented, of course. It’s event-driven by design. But most important: it was designed for Microsoft Windows with Microsoft’s OLE technology at its heart. OLE, Microsoft’s standard for compound documents, is used to embed Visio drawings into documents created with other applications such as word processors, presentation products, even e-mail. Visio also supports Microsoft’s standard for inter-application programmability: OLE Automation. This allows Visio to be controlled from external sources such as Visual Basic programs.

Building blocks are separate from the engine. The Visio graphics engine doesn’t “know” a flowchart anymore than it “knows” an electrical schematic. The intelligence is in the shapes and the shapes are independent of the engine.

We take a “building block” approach to drawing. The user picks the kind of drawing they want to create, and opens a template with pre-defined shapes that are appropriate for that kind of drawing.

The whole thing hinges on having the right building blocks. And clip art just doesn’t work. The first thing people want to do with clip art is start changing it, and it always falls apart.

We start with “SmartShapes.” They are parameterized objects that know how to connect to eachother, how to behave when the user resizes them, and in general behave the way the user would expect a shape to behave.

All the user has to do with Visio is pick the right template, drag out the shapes they want to use, select them and add text as needed, and connect them together. Anybody can do this.

So let me show you what this looks like.

Introduce stencils, drag & drop, etcetera.

Let me quickly show you several different examples of how customers in different job functions are using our products.

GE prepares these diagrams as part of proposals to customers for power distribution systems

IS managers at Mobil created this as part of a proposal to switch their multitude of customer service phone systems to a single nation-wide system.

Now you’ve seen several very different examples; how big is the market?

“More conservative than Symantec.”

—Marty Chilberg, Visio CFO at IPO

Point is that we’ve paid for a bunch of things that were expensive and are now behind us on the expense side, but ahead of us on the revenue side.

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