biz model for oleds

ORGANIC LED

Group Members:HT093141R Cindy Yong A0081877N Guo WeiA0081902H James TongA0082048H Kian Soon ThonHT093106H Ang Hong Kia, MelvinA0081998H Tyler Huang Tianlu

MT5016: Business Models For Hi-Tech Products

NOVEL LIGHTING & DISPLAY CONCEPTS

Organic LED – Novel Lighting & Display Concepts

OLED Lighting & Display

http://www.youtube.com/watch?v=YZlOUzSmPg8


Content:

Introduction Value Proposition Market Segment & Customer

Selection Value Capture Scopes of Activities Strategic Control Conclusion Appendix



What is OLED?

Eastman Kodak invented OLED technology in the early 1980s.

Combination of chemistry and semiconductor

Doesn’t require backlight to function

Thin and low-energy consuming



Current Applications

Samsung Galaxy SIII4.8” HD Super

AMOLED

Samsung 55” OLED TV

Samsung 12.1” OLED laptop


TV Display – Value Proposition

Samsung 55” ES9500 OLED TV (7.5mm)

LCD TV

Richer (Lifelike) colors Unparalleled detail in

shadows, shapes, and subtle colors

Response time that is 1000 times that of LCD & Plasma TV

Much more fluid and attractive visuals during fast action

Slim form factor Power efficiency



Value Proposition: Display


The Leader in OLED Display

Merger between Samsung Mobile Display & S-LCD corporation World’s largest display manufacturer, 39,000

employees 7 production facilities worldwide 2012 investment is around $6 billion

Strong IP: the largest owner of AMOLED technology patents Samsung owns 99% global OLED patents (>600 American

patents, and >2800 international patents) Global competitive edge

Strengthen by combining OLED production technology with precision large panel operations

Vertical integrated & seasoned supply chain management



Market Drivers & Restraints for OLED Market (2011-2017)


Lighting Evolution


OLED Pros: The plastic, organic layers of an OLED are thinner, lighter and more flexible than the

crystalline layers in an LED or LCD. Because the light-emitting layers of an OLED are lighter, the substrate of an OLED can be flexible instead of rigid. OLED substrates can be plastic rather than the glass used for LEDs and LCDs.

OLEDs are brighter than LEDs. Because the organic layers of an OLED are much thinner than the corresponding inorganic crystal layers of an LED, the conductive and emissive layers of an OLED can be multi-layered. Also, LEDs and LCDs require glass for support, and glass absorbs some light. OLEDs do not require glass.

OLEDs are easier to produce and can be made to larger sizes. Because OLEDs are essentially plastics, they can be made into large, thin sheets.

OLEDs have large fields of view, about 170 degrees.

OLED Cons: Lifetime - While red and green OLED films have longer lifetimes (46,000 to 230,000

hours), blue organics currently have much shorter lifetimes (up to around 14,000 hours[source: OLED-Info.com]).

Manufacturing - Manufacturing processes are expensive right now. Water - Water can easily damage OLEDs.

Specs/Lighting Type

Incandescent Lamp

Fluorescent lamp LED OLED

Thickness NA NA 6.9 mm (base on LED TV)

1.8 mm

Flexibility NA NA Less than OLED Very as it can be printed as a sheet

View ability Can’t stare Can’t stare Can’t stare, point source

Can stare without hurting eyes

Lifespan 700 -2, 500 hrs >10, 000 hrs 100, 000 hrs 15, 000 hrs

Manufacturing cost

Efficiency/ Brightness

10 lm/W 70-90 lm/W 70-100 lm/W Over 140 lm/W in lab

25 lm/W Over 87 lm/W in lab

Environmental friendliness

Low efficiency Contains mercury Most efficient, no toxic chemical

Not so efficient, no toxic chemical

http://www.oled-info.com/tags/lifetime/blue_color


The Opportunity – OLED Lighting Huge investments have been made in EU, US, Japan and

Korea in OLED lighting. With about 20 OLED lighting organizations worldwide, EU is

currently leading in OLED lighting in terms of project numbers, government funding, and participating companies

Over 100 Companies and universities are currently working on OLED lighting.


Household Lighting

Windows can be customized to illuminate.


Household Lightings – Value Proposition

Area/surface lighting: slim, flexible or rigid factors

Tunable color for decorative use Fast switch: no noise Wide operation temperatures for use in

extreme environments Environmentally friendly: No toxic

materials Can be transparent like a window, or

reflective like a mirror


Retail Lighting DisplayThin glass lighting panel, color can be customized.

Flexible light panel


Clothing

Flexible light panel sew on clothing providing brighter luminance compared to conventional safety clothings


Market Segments Two main markets: Lighting & Display

Lighting markets: Building lighting Automotive lighting

Display markets: Consumer products, e.g. TV, mobile phone, computer.

In serving existing markets needs, OLED enables creation of new market in combination of both lighting and display segments: Integrative building lighting Digital wall 3D glasses Wearable fashion/costumes



Customer Types

Cu

stom

er

Needs

Unart

icu

late

dA

rtic

ula

ted

Served Un-Served

Consumers products display, e.g. TV, mobiles, tablets etc.

Automotive Lighting

Digital Wall

Transparent Monitor

Household Lighting

OLED Costumes ?

3D glass

Rollable Display


OLED Lighting & Display Market Segments

Smartphone takes the largest share through 2017

Target Customers Served Customers

Consumer products, e.g. mobiles, TV, tablet display.

Un-Served Customers Auto Manufacturers: Decorative lighting/display. Architects: Smart building lighting Retailers: Decorative display shelves Sales Persons: Thin & portable display Gamers: 3D glass



Focus Groups: Consumer Architects Auto Manufacturers Light Designers Fashion Designers Corporate Show Room Environment-cautious Groups

Government body Window-dressing places Theme museums


OLED Value Chain


Revenue Capture

System Maintenance

Service Provider

VendorsCustomized Design

& Applications Service Provider

End Users

ODM/OEM

Light DesignersResearch & Development

Components Manufacturer

Corporates

Consumers Government

<-Designs/ideas

<-Technical Spec

License fees->Products->

<-Franchise

<-ProductLighting/display solution->

<-Serving fees

Troubleshooting/maintenance->

Light Design & Application Search

Engine

Idea se

arch

ing

Pay per download->

SW UI->

<-Design/application order<-Market feedback


Scope of Activity

R&D

Base material Manufacture

OLED Prod Line Equipment

OLED panel manufacturing

End Application system (lighting

solution integration)

Revisit Value Chain


Projected Margin

Strengthen or build in-house capability in high profit margin sections strategic section like branding and sales


Scope of Activity

Positioned well into: High margin

sector Strategic sector

Except… Little background

in lighting industry

Collaboration / Joint venture is recommended


Strategic ControlProtection

Intellectual Property Rights - patent (17 years in U.S.)- trademark (logo)

Appropriating Benefits

Nature of technology - Economies of scale - Knowledge Management(explicit and tacit technology)

Control of industry - To come out with OLED Standards - Complementary assets

- Wafer fab, warehousesIn Sep 2012, Samsung filed

an injunction request against

LG for effectively stealing its

OLED technology and

business secrets by “inducing

[Samsung's] researchers to

transfer”.


Strategic Control: Technology/Manufacturing/Brand


Strategic Control – Samsung R&D Commitment

• Invest at least 9% of sales revenue in R&D activities

• Commit to leading technology standardization and securing intellectual property rights.

Source: http://www.samsung.com/us/aboutsamsung/ourbusinesses/researchdevelopment.html

Samsung SMD

Owns ~80% of key IP in OLED

http://www.samsung.com/us/aboutsamsung/ourbusinesses/researchdevelopment.html

http://www.samsung.com/us/aboutsamsung/ourbusinesses/researchdevelopment.html


Possible Collaboration to Increase Value Capture

Leader in Lighting

Leader in Display


Conclusion

OLED is an upcoming technology to replace LED/LCD display and conventional lighting OLED display has seen adoption in mobile

phone display and TV Challenges exists – Cost, Lifespan and

Power Efficiency Samsung – Philip collaboration to increase

value capture


SAMSUNG Future Life and Style

http://www.youtube.com/watch?v=1nKFW-lDNK8&NR=1&feature=endscreen


The End


AppendixLG vs. Samsung – Background

LG's 55-inch OLED TV features a unique spin on the technology that involves a fourth "white" subpixel. The TV has a white pixel layer with a color RGB filter over the top, and the fourth pixel is left unfiltered.

Samsung's ES9500 uses native red, green, and blue OLED pixels. There's therefore no need for any filters. Samsung claims this improves energy efficiency while LG criticises the system since the blue diode could age more quickly than the others.


AppendixLG vs. Samsung

LG 55EM9600 Samsung KN55ES9500

Weight 10kh 3.5kg

Thickness 4mm 1.6mm

Screen Brightness 150 and 600 cd/m²

Contrast 150,000:1

Response Time 1ms

Price Likely £6,000 upwards

3D Display Yes Yes

Connected TV Yes

Web Browser Yes

Resolution 1920 x 1080 pixels 1920 x 1080 pixels

biz model for oleds

Business

oled lighting organizations

workingon oled lighting

oled laptop

oled substrates

organic layers

es9500 oled tv

global oled patents

hrs oled cons