biz model for d30 material

Download Biz Model for D30 Material

Post on 20-Jan-2015




1 download

Embed Size (px)


These slides describe a biz model for D30 material that is based on ideas from my (Jeff Funk) class on business models. D30 is a new material that is flexible until it absorbs and impact and becomes rigid. This characteristic makes D30 useful for clothing and gear used by athletes, motorcycle riders, and the military. the parent company profits from D3O by partnering in development with many manufacturers of final products and licensing the technology to them


  • 1. D3O Business Model AnalysisBy: Chung Wing Tai, Julian Koo, Justin Lin, Jason Yeo, Ryan Wee, Tham Kai Sheng

2. D3O and a Shovel 3. D3O Technology 4. What is D3O? D3O is a patented protective material thatutilizes enhanced chemistry to produce highperformance impact protection solutions. 5. How does D3O work? D3O comprises a shear-thickening compound, whose molecules reversibly lock together on impact. 6. How is D3O better? Less force is transmitted on impactLess transmitted force= Less pain 7. How is D3O better? CE Level 2 Certification D3O passed Level 2 ofprEN1621-1, making itsafe for motorcyclistprotection 8. Price Comparison D3O is premium priced but not exorbitant 9. Who would use D3O? People looking for dependable protection that islightweight and flexible.o Professional Athleteso Those facing occupational hazards (eg. Military, lawenforcement & industrial workers)o Users of expensive tech gadgets 10. Professional Athletes virtually all Covers High speeds & parts of Dangerous the bodyterrain Breathable Prone to serious protection injuries from falls and tumbles Flexible pads Comfort helps improve focus Confidence in Mobility required protection for performance 11. Professional Athletes Covers virtually all parts of the body Breathable protection Flexible pads Confidence in protection 12. Military, Law enforcement & Industrial workers High risks of injury dueto exposure to hazards Fear of injury mayimpede operations Flexibility andmobility requiredfor topperformance Injuries delay work progress and incur costs 13. Tech Gadget Users Expensive Tech Gadgets like Apple products Risk of damage due toaccidental dropping/ knocking Potential financial, time,emotional loss as well asmajor inconveniences 14. Other Applications People looking to harness D3Os advanced properties For example, tennis racquets with adaptive rigidityHead YouTek D3OSeries Tennis Racquet 15. D3O Labs 16. The Big Picture 17. Value Proposition ofD3O Labs 18. Value Proposition to Partners Access to the D3Otechnology Engineering, researchand design servicesOpen Assistance in the Innovationmanufacturing process 19. Partner Selection 20. Partner Selection Consumer firms:o Protective gearo Sports equipment Industrial firms:o Safety shoes Defence:o Protective gear 21. Technology Adoption Strategy Targeting early adopterso E.g. Pro-athletes and specialforces Why?o Most willing to try new technologyand to pay a premium for ito Strong influence on marketopinion Hence, D3O needs to choose premium partners that would appeal to these early adopters. 22. Value CaptureandScope of Activities 23. Methods of Value Capture Licensing & Partnerships Services for Partners Internally-Developed Products - XERGO 24. Licensing & Partnership Sales have been growing ~100% annually 25. Services for Partners D3O captures revenue through customizedengineering and design services 26. Sales & Production XERGO Limb Protectors for motorcyclists No 3rd parties involved in the design 27. Research & Development D3O is constantly improved via R&D to improve itsfeatures, so as to maintain D3Os relevance & edge inthe market For example, D3O released three unique composites togeneral customers (XT, ST and Shock+) 28. Strategic Control 29. Current Barriers to Entry Intellectual property protectiono Patenting of chemical formulao Patenting of the design of protective productso Allows them to protect and appropriate their IP, andlock-in customers for a period of time via contracts 30. Current Barriers to Entry Controlling the manufacturing of D3O productso Partners not involved in the manufacturing of D3Oo Proprietary knowledge remains with D3OD3O manufacturesD3O delivers toPartner sellsto specpartnercompleted product 31. Current Barriers to Entry Reputationo Premium reputation in the field of protectivematerialso Control of marketing communications and productlaunch strategies, even by partners 32. Competitors 33. Poron XRD Poron XRDo It is based on a urethane based polymer foam whichsolidifies momentarily on impacto Uses the amorphous properties of urethanemolecules, which become rigid on impact. 34. Case study comparingD3O and Poron XRD Specific offering in motorcyclist protection 35. D3O Flo1 vs Poron XRD B-Guard Comparing two back protectors for motorcyclists:D3O: Poron XRD:Flo1B-Guard 36. D3O Flo1 vs Poron XRD B-Guard Comparing two back protectors formotorcyclists using spec sheetsD3O: Poron XRD:B-Guard 37. Strategy Canvas:D3O Flo1 vs Poron XRD B-GuardDimensions of Performance 38. Strategy Canvas:D3O Flo1 vs Poron XRD B-GuardSafetyUser ComfortOthersDimensions of Performance 39. What can D3O do better? 40. Value Proposition D3O is a thermosetting polymer Synthesizing process is toxic Life expectancy of 2 to 3 years 41. Value Proposition D3O as a recyclable material Reduce the toxicity of synthesizing processof D3O Increase durability of the product 42. Customer Selection Militaryo A market that is worth approximately US$16 millionper country per yearo Prospective customers, Eg. US, Germany, France,Israel, Singapore 43. Customer Selection Elderly o Focus on gerontechnology o Shock absorbent clothing for the aging population o Produce hip and back protectors for the elderly 44. Customer Selection Childreno child apparels infused with d3o technologyo eg. Impact resistant beanies for kidso child-safe house applianceso eg. D3O sharp corner protectors 45. Scope of Activities Partner with bigger brands, especially the popularmass-market brands, so as to capture market share Acquisition or partnership with competingtechnologies to improve D3Os competitive edge 46. Scope of Activities Constant R&D in different fields to improve D3O andits complementary technologies. (e.g. D3O incorporatedinto health care products like prostheses) 47. Strategic Control Create greater barriers to entryo Exclusive contract agreements with partnerso Develop a family of complementary products toharness indirect network effects 48. Strategic Control Scaling up operationso Has a team of less than 100 employeeso D3O works on 20 to 30 projects at any one timeo Hire more people to meet demand and maintainquality service 49. Thank youBy: Chung Wing Tai, Julian Koo, Justin Lin, Jason Yeo, Ryan Wee, Tham Kai Sheng 50. FAQs 51. What is D3O composed of? It comprises a dilatant compound known asPolyborodimethylsiloxane (PBDMS),distributed in a foam matrix


View more >