CATALYZED TWIN PEAKS CONSULTING PRESENTED TO MS SOLEM

CATALYZED TWIN PEAKS CONSULTING PRESENTED TO MS. SOLEM PRESENTED MARCH 2017 1

4. 8% chance of a child who was born into a 1 bottom income family becoming a top earner 2

Digital Divide = the gap in quality and quantity of technological resources between the rich and poor 2 3

public, private & social sectors to help break the cycle of the digital divide? How can T-Mobile leverage the 4

EXECUTIVE SUMMARY Key Issue Recommendation Lasting Impacts How can T-Mobile disrupt the current CSR trends? Create a sustainable, long lasting platform By year 1, give 3, 000 low-income students the opportunity for real world job experience (social) How can T-Mobile create a revenue stream while impacting the community? Facilitation fees charged to Earn revenue of over $200, 000 companies at lower cost after year 2 (private) than market value How can T-Mobile create an incremental economic impact? Provide coding educational Pilot creates $400, 000 in resources to Title 1 Schools educational value (public) 5

CYCLE OF THE DIGITAL DIVIDE Lack access to devices Performance = Motivation X Skills Lower disposable income Lack empowerment Lack computer literacy Lack skills for jobs Struggle with school 6

SITUATIONAL ANALYSIS T-Mobile (Private) Situation Insight Mobile phone industry Difficulty creating innovative product offerings Signature Cause engages youth Focus on youth follows current branding 7

CYCLE OF THE DIGITAL DIVIDE Social Stake (Social) Situation Insight Studies show that impoverished children that High quality education leads to went to high-quality school were more likely to economic mobility hold a job, and not commit crimes 3 40% of all families with school aged children don’t have high speed access at home 4 Extremely difficult to access educational resources ~4. 8% chance of a child who was born into a bottom income family becoming a top earner 1 Poverty is a cycle 8

SITUATIONAL ANALYSIS Government Stake (Public) Situation Insight Costs government 40% more per student to educate low income children 5 Extreme economic burden Digitization will boost GDP $2. 2 trillion 6 Wants citizens knowing how to use technology Skills mismatch in jobs leads to lower wages, lower job satisfaction, reduced productivity, increased turnover 7 Economic stagnation 9

CYCLE OF THE DIGITAL DIVIDE T Mobile Opportunities Lack access to devices Lower disposable income Lack empowerment Lack computer literacy Lack skills for jobs Struggle with school 10

public, private & social sectors to help break the cycle of the digital divide? How can T-Mobile leverage the 11

ALTERNATIVE EVALUATION Lack access to devices 12

INTERESTING FACTS Mobile Empowerment is reaching Title 1 Schools 13

INTERESTING FACTS Mobile Empowerment is reaching Title 1 Schools T-Mobile does not provide internet–not within scope 14

ALTERNATIVE EVALUATION Lack access to devices Lack empowerment Lack computer literacy 15

INTERESTING FACTS Mobile Empowerment is reaching Title 1 Schools T-Mobile does not provide internet–not within scope “Projects for All” has 500 kids in Nigeria using computers without having taught them how 8 16

ALTERNATIVE EVALUATION Lack access to devices Lack empowerment Lack computer literacy 17

ALTERNATIVE EVALUATION Lack access to devices Lack empowerment Lack computer literacy Lack skills for jobs Struggle with school 18

INTERESTING FACTS Mobile Empowerment is reaching Title 1 Schools Generation T is helping with sales job readiness T-Mobile does not provide internet–not within scope “Projects for All” has 500 kids in Nigeria using computers without having taught them how 8 19

INTERESTING FACTS Mobile Empowerment is reaching Title 1 Schools Generation T is helping with sales job readiness T-Mobile does not provide internet–not within scope 7 million job openings in 2015 in occupations that required coding skills 9 “Projects for All” has 500 kids in Nigeria using computers without having taught them how 8 20

INTERESTING FACTS Mobile Empowerment is reaching Title 1 Schools Generation T is helping with sales job readiness T-Mobile does not provide internet–not within scope 7 million job openings in 2015 in occupations that required coding skills 9 “Projects for All” has 500 kids in Nigeria using computers without having taught them how 8 Programming jobs are growing 12% faster than the market average 9 21

ALTERNATIVE EVALUATION Lack access to devices Lower disposable income Lack empowerment Lack computer literacy Lack skills for jobs Struggle with school 22

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CATALYST PLATFORM Platform to Empower Youth Pilot Program Marketing Develop Catalyst by T-Mobile in Partnership with Codecademy Select five Title 1 Schools and five non. Title 1 Schools in Seattle CSR Reporting Allows students to learn coding and help SMEs and NFP with IT problems Provide Mobile Empowerment services to students Focus on relationship building for marketing to SMEs/NFPs First 6 months T-Mobile creates sample problems to prove success Utilize T-Mobile's strong marketing initiatives to market to the public 24

PHASE ONE STUDENT LITERACY Digital Devices in Schools Introduce Codecademy Partnership Crowdsourced by SME & NFP Shared Value for Students, Schools, Government Access to tasks Completed modules mean work experience Empower through Digital Literacy 25

PHASE TWO WHY SME & NON-PROFIT Start-ups face challenges Referrals & relevant experience Shared Value for SME, NFP, Students, T -Mobile, Codecademy Lacking resources, time & expertise Focus on building business Collaborative competitions Provide students menial tasks 26

PLATFORM USERS School Teams Compete & Problem Solve Facilitation Fee Advertising SME & NFP List Tasks for low cost 27

REVENUE MODEL 40% 60% 28

BACKCASTING Baseline Sustainable beyond compliance Decide on Priorities Solution Empowering Youth Experiential Learning Job opportunities Relevant Skill Building Strategic Partnership Coding skills Fiduciary Duty Innovation Platform Revenue: Facilitation Fee Marketing/CSR Improved perception & loyalty Stakeholder Engagement Guiding vision of future Impact Defining Success & Awareness Beyond bounds of business Shared Value Competitive Advantage 29

VALUE ASSESMENT Long-term Public & Private Users Innovation & Repositioning Growth Path & Trajectory • Innovation Platform • Economic impact through shared value Internal Private Benefit Public & Private Sector External Revenue & Opportunity Reputation & Legitimacy • Facilitation Fee • Advertising • Empowering & Engaging youth Short-term Socialeconomic Impact 30

IMPLEMENTATION Step Cost Collaborate and Create $123, 000 -214, 000 Hire Liaison $45 -55/hour Fund partnership agreement $120, 000 -195, 000 Progress evaluation $3, 000 -9, 000 Pilot and Market Externally Q 1 (yr 1) Q 2 (yr 1) Q 3 (yr 1) Q 4 (yr 1) Q 1 (yr 2) Q 2 (yr 2) Q 3 (yr 2) Q 4 (yr 2) $94, 000 -222, 000 Distribute tablets to schools $60, 000 -120, 000 Monthly evaluation $3, 000 -9, 000 Hire marketing consultant $100 -$150/hour Hire CSR consultant $100 -$150/hour Create and launch campaign $20, 000 -60, 000 Evaluate campaign impact $11, 000 -33, 000 Scale pilot (contingent) $420, 000 -840, 000 31

INVESTMENT COMPARISON $450, 000 Investment Year 1 VS $40, 000 over the next 5 years Pilot cost is just over 1% of planned investment in devices and services in the education sector 32

PERFORMANCE Estimated project payback period of 3 years Estimated ROI of 9% 33

KEY PERFORMANCE INDICATORS Have at least 500 students successfully complete entire coding program by end of year 2 $200, 000 revenue for T-Mobile by the end of year 2 80% of schools in pilot program are satisfied 34

FUTURE CONSIDERATIONS After successful 2 year implementation Scale program to work with all Mobile Empowerment initiatives Create mentorship feature Partner with schoolboards to implement program into curriculum for class credit 35

RISKS AND MITIGATION Children do not utilize platform • Initial pilot of 10 schools • Classroom Challenges • Proven success with 6 months of SMEs & NFPs do not -Mobile Challenges utilize the platforms • Relational marketing T Quality of work does • Pay for service after demo not line up with SME presentation & NFP expectations 36

WINWIN ALIGNMENT Sector Benefit New revenue stream Private (T-Mobile) Customer acquisition and brand loyalty Quantifiable social impact Social (Non-For-Profits) Access to low-cost IT services Decrease pressure on utilization = Increased digitization which increases GDP Public (Government) New education opportunity without additional spending Better job alignment for citizens leading to higher quality of life and more taxable income 37

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b) Social Stake c) Government Stake 7) Interesting Facts 8) Alternative Evaluation 9) Recommendation a) Phase 1 b) Phase 2 10) Platform Users 11) Revenue Model 12) Backcasting 13) Value Assessment 14) Implementation 15) Investment Comparison 16) Performance 17) Key Performance Indicators 18) Future Considerations 19) Risks and Mitigation 20) Winwin Alignment 21) References 22) Lean Business Model 23) Codecademy Partnership APPENDIX 1) 2) 3) 4) 5) 6) Opening Statistics Digital Divide Definition Challenge Statement Executive Summary Cycle of the Digital Divide Situational Analysis a) T-Mobile b) Social Stake c) Government Stake 7) Interesting Facts 8) Alternative Evaluation 9) Recommendation a) Phase 1 b) Phase 2 19) Winwin Alignment 20) References 21) Lean Business Model 22) Codecademy Partnership 23) Alternative Partnership Opportunities 24) Alternative Partnership Opportunities 25) T-Mobile Build Quote 26) Benefits Matrix 27) Channels to Reach SMEs & NFPs 28) E-Lance Visual 29) Financials a) Implementation b) Investment Return 39

REFERENCES 1) "The Geography of Upward Mobility in America. " The Equality of Opportunity Project. N. p. , 2016. Web. 26 Feb. 2017. 2) Soltan, Liz. "Digital Divide: The Technology Gap between the Rich and Poor. " Digital Responsbility. N. p. , 2016. Web. 26 Feb. 2017. http: //www. digitalresponsibility. org/digital-divide-the-technologygap-between-rich-and-poor 3) Schweinhart, L. Benefits, Costs, and Explanation of the High/Scope Perry Preschool Program. Rep. Tampa: Meeting of the Society for Research in Child Development , 2003. Print. 4) "FCC Modernizes Lifeline Program For the Digital Age. " Office of Career, Technical, and Adult Education. U. S. Department of Education, 2016. Web. 26 Feb. 2017. = https: //sites. ed. gov/octae/2016/04/02/fcc-modernizes-lifeline-program-for-the-digital-age 5) Ushomirsky, Natasha, and David Williams. Funding Gaps 2015. Rep. Washington: The Education Trust, 2015. Print. 40

3) Schweinhart, L. Benefits, Costs, and Explanation of the High/Scope Perry Preschool Program. Rep. Tampa: Meeting of the Society for Research in Child Development , 2003. Print. 4) "FCC Modernizes Lifeline Program For the Digital Age. " Office of Career, Technical, and Adult Education. U. S. Department of Education, 2016. Web. 26 Feb. 2017. https: //sites. ed. gov/octae/2016/04/02/fcc-modernizes-lifeline-program-for-the-digital-age 5) Ushomirsky, Natasha, and David Williams. Funding Gaps 2015. Rep. Washington: The Education Trust, 2015. Print. 6) Manyika, James, Sree Ramaswamy, Somesh Khanna, Hugo Sarrazin, Gary Pinkus, Guru Sethupathy, and Andrew Yaffee. Digital America: A Tale of the Haves and Have-Mores. Rep. N. p. : Mc. Kinsey Global Institute, 2015. Print. 7) Rieland, Randy. "How Do Kids Learn Where There Are No Teachers? It May Take a Village…Computer. " Smithsonian. com. Smithsonian, 9 Dec. 2014. Web. 26 Feb. 2017. http: //www. smithsonianmag. com/innovation/how-do-kids-learn-where-there-are-no-teachers-itmay-take-village-computer-180953552. 8) Beyond Point and Click. Rep. Boston: Burning Glass Technologies, 2016. Print. 9) Quintini, Glenda. Matching Skills and Labour Market Needs. Rep. N. p. : World Economic Forum, 2014. Print. REFERENCES 41

LEAN BUSINESS MODEL Problem Digital Inequality in lowincome schools. Lack of relevant skill building. Job Skill Mismatch. Startups under resourced, underfunded, lack expertise and time. 4. 8% probability of going from low-income earner to high-income earner. Solution Two Phase Program: 1. Training for youth though Codecademy Partnership & work opportunity. 2. Open Innovation & Crowd-intelligence challenge-solution platform. Key Metrics Number of students who complete coding program Schools Projects Completed Unique Value Proposition Bridging the gap between access to technology and personal achievement by empowering students to take control of their future through experiential learning. Unfair Advantage Commitment to creation of SHARED VALUE as COMPETITIVE ADVANTAGE by targeting lower end of market. Channels Landing Page Marketing Social Media Startup Seattle University of Washington (Seattle) – COMOTION Youth in Title 1 & non. Title 1 schools in Seattle Competition Verizon Innovative Learning Brings free technology, free access, and “handson learning opportunities” Search Engine Optimization Revenue Streams Fixed: ~200, 000 to build platform Transaction fee – Flat fee to start Advertising on platform 40% Gross Margin PRODUCT Small-medium enterprises & Non-profits in Seattle area. Path to customers: Cost Structure Hosting Customer Segments MARKET 42

CODECADEMY PARTNERSHIP Value Proposition of Partnership Aligned with Codecademy Values Codecademy is looking to scale 60% of profits Increased exposure 43

“Traditional education teaches in a way that is not necessarily right for everyone…we want to build an educational experience that is accessible to everyone, wherever they are. ” – Zachary Sims (Founder of Codecademy) 44

ALTERNATIVE PATNERSHIPS Free Code Camp Khan Academy Coursera Udemy 45

T-MOBILE BUILT - QUOTE 46

BENEFITS MATRIX Long Term ↑ Brand Loyalty ↓ Recruiting Costs ↑ Sales and Goodwill ↓ Crime & Delinquency ↑ GDP by 2. 2 Trillion (Digitization labor force participation) Highly skilled workforce ↑ Skills Supply & Demand Match Time Frame 15% facilitation fee Recruiting fee ↑ Corporate Reputation ↑ Digital Literacy (Coding) & Experiential Learning Short Term Tangible Ability to Quantify Empowered Youth Intangible 47

CHANNELS TO SME & NFP 01 Landing Page Marketing 02 Social Media Strong presence& low cost 03 Startup Seattle Collaborative Effort between 04 University of Washington HOW DO(Seattle) YOU MAKE MONEY? 05 Search Engine Optimization City and advisors. COMOTION

E-LANCE COMPARISON 1 49

E-LANCE COMPARISON 2 50

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