biz model for d30 material
DESCRIPTION
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 themTRANSCRIPT
D3O Business Model Analysis
By: Chung Wing Tai, Julian Koo, Justin Lin,
Jason Yeo, Ryan Wee, Tham Kai Sheng
D3O Technology
What is D3O?
• D3O is a patented protective material that
utilizes enhanced chemistry to produce high
performance impact protection solutions.
How does D3O work?
• D3O comprises a shear-thickening
compound, whose molecules reversibly lock
together on impact.
How is D3O better?
Less transmitted force
= Less pain
• Less force is transmitted on impact
How is D3O better?
• CE Level 2 Certification
• D3O passed Level 2 of
prEN1621-1, making it
safe for motorcyclist
protection
Price Comparison
• D3O is premium priced but not exorbitant
Who would use D3O?
• People looking for dependable protection that is
lightweight and flexible. o Professional Athletes
o Those facing occupational hazards (eg. Military, law
enforcement & industrial workers)
o Users of expensive tech gadgets
• High speeds &
Dangerous
terrain
• Prone to serious
injuries from falls
and tumbles
• Comfort helps
improve focus
• Mobility required
for performance
• Covers virtually all
parts of the body
• Breathable
protection
• Flexible pads
• Confidence in
protection
Professional Athletes
• Covers virtually all
parts of the body
• Breathable
protection
• Flexible pads
• Confidence in
protection
Professional Athletes
Military, Law enforcement &
Industrial workers
• High risks of injury due
to exposure to hazards
• Flexibility and
mobility required
for top
performance
• Fear of injury may
impede operations
• Injuries delay
work progress
and incur costs
Tech Gadget Users
• Expensive Tech Gadgets
like Apple products
• Risk of damage due to
accidental dropping/ knocking
• Potential financial, time,
emotional loss as well as
major inconveniences
Other Applications
• People looking to harness D3O’s advanced
properties
• For example, tennis racquets with adaptive
rigidity
Head YouTek D3O
Series Tennis Racquet
D3O Labs
The Big Picture
Value Proposition of
D3O Labs
• Access to the D3O
technology
• Engineering, research
and design services
• Assistance in the
manufacturing process
Value Proposition to Partners
Open
Innovation
Partner Selection
Partner Selection
• Consumer firms: o Protective gear
o Sports equipment
• Industrial firms: o Safety shoes
• Defence: o Protective gear
Technology Adoption Strategy
• Targeting early adopters o E.g. Pro-athletes and special
forces
• Why? o Most willing to try new technology
and to pay a premium for it
o Strong influence on market
opinion
• Hence, D3O needs to choose
premium partners that would
appeal to these early adopters.
Value Capture
and
Scope of Activities
Methods of Value Capture
• Licensing & Partnerships
• Services for Partners
• Internally-Developed Products - XERGO
Licensing & Partnership
• Sales have been growing ~100% annually
Services for Partners
• D3O captures revenue through customized
engineering and design services
Sales & Production
• XERGO – Limb Protectors for motorcyclists
• No 3rd parties involved in the design
Research & Development
• D3O is constantly improved via R&D to improve its
features, so as to maintain D3O's relevance & edge in
the market
• For example, D3O released three unique composites to
general customers (XT, ST and Shock+)
Strategic Control
Current Barriers to Entry
• Intellectual property protection o Patenting of chemical formula
o Patenting of the design of protective products
o Allows them to protect and appropriate their IP, and
lock-in customers for a period of time via contracts
Current Barriers to Entry
• Controlling the manufacturing of D3O products o Partners not involved in the manufacturing of D3O
o Proprietary knowledge remains with D3O
D3O manufactures to spec
D3O delivers to partner
Partner sells completed product
Current Barriers to Entry
• Reputation o Premium reputation in the field of protective
materials
o Control of marketing communications and product
launch strategies, even by partners
Competitors
• Poron XRD
o It is based on a urethane based polymer foam which
solidifies momentarily on impact
o Uses the amorphous properties of urethane
molecules, which become rigid on impact.
Poron XRD
Case study comparing
D3O and Poron XRD
• Specific offering in motorcyclist protection
• Comparing two back protectors for
motorcyclists:
Poron XRD:
B-Guard
D3O:
Flo1
D3O Flo1 vs Poron XRD B-Guard
D3O Flo1 vs Poron XRD B-Guard
• Comparing two back protectors for
motorcyclists using spec sheets
D3O:
Flo1
Poron XRD:
B-Guard
Strategy Canvas:
D3O Flo1 vs Poron XRD B-Guard
Dimensions of Performance
Strategy Canvas:
D3O Flo1 vs Poron XRD B-Guard
User Comfort Safety Others
Dimensions of Performance
What can D3O do better?
• D3O is a thermosetting polymer
• Synthesizing process is toxic
• Life expectancy of 2 to 3 years
Value Proposition
Value Proposition
• D3O as a recyclable material
• Reduce the toxicity of synthesizing process
of D3O
• Increase durability of the product
Customer Selection
• Military
o A market that is worth approximately US$16 million
per country per year
o Prospective customers, Eg. US, Germany, France,
Israel, Singapore
• Elderly
o Focus on gerontechnology
o Shock absorbent clothing for the aging
population
o Produce hip and back protectors for the
elderly
Customer Selection
Customer Selection
• Children o child apparels infused with d3o technology
o eg. Impact resistant beanies for kids
o child-safe house appliances
o eg. D3O sharp corner protectors
Scope of Activities
• Partner with bigger brands, especially the popular
mass-market brands, so as to capture market share
• Acquisition or partnership with competing
technologies to improve D3O's competitive edge
Scope of Activities
• Constant R&D in different fields to improve D3O and
its complementary technologies. (e.g. D3O incorporated
into health care products like prostheses)
Strategic Control
• Create greater barriers to entry
o Exclusive contract agreements with partners
o Develop a family of complementary products to
harness indirect network effects
Strategic Control
• Scaling up operations o Has a team of less than 100 employees
o D3O works on 20 to 30 projects at any one time
o Hire more people to meet demand and maintain
quality service
Thank you
By: Chung Wing Tai, Julian Koo, Justin Lin,
Jason Yeo, Ryan Wee, Tham Kai Sheng
FAQs
What is D3O composed of?
• It comprises a dilatant compound known as
Polyborodimethylsiloxane (PBDMS),
distributed in a foam matrix