printable battery technology: a business model
DESCRIPTION
These slides use ideas from my (Jeff Funk) class to develop a business model for printable battery technology. The increasing use of wearable electronics such as Google Glasses and “electronic tattoos” has increased the demand for smaller batteries that can be added to these glasses or tattoos. Based on Zinc, these batteries can be printed onto a thin substrate. These slides describe the customers for this technology and the value propositions for these customers, along with other aspects of a business model.TRANSCRIPT
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Printable Battery Technology
Lee Yang Sheng Lim Chau Hwee Alwyn
Tay Wei Yi
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Scope Wearable electronics market trend
Imprint Energy’s Business Model
Analysis of Business Model
Recommendations
Conclusion
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Wearable electronics market trend
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Wearable electronics
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Wearable electronics
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Coin cells may be Sufficient for Watches, but not for Wearable Electronics!
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Printable Battery Imprint Energy
Founded in 2010
Develop zinc-based rechargeable battery technology (ZincPoly™)
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New applications and value propositions for printable batteries
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Value propositions for wearable electronics Ultra thin
Flexible
Recyclable
Easy to manufacture
Rechargeable
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Thinner batteries are needed for new applications
Ultra thin
0.01
0.1
1
10
Th
ick
nes
s o
f B
atte
ry
(mm
)
Phones, laptops
Calculator, Watches
RFID smart card, Electronic paper Conformal electronics,
Wearable electronics
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Value Proposition Ease of manufacture
Low packaging required
Affordable
Dispenser printing system:
5‐300μm size factors
Ambient temperature process
Low waste
Fast, scalable, economical
Continuous assembly processing
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Printing Technology
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Value Proposition Rechargeability
Other zinc-based printable batteries are non-rechargeable which limits their applications
Imprint Energy uses a solid gel polymer electrolyte
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Thin-film and printed battery market $5.6 billion by 2015 (NanoMarkets)
Out of this, $2.5 billion will be non-lithium batteries
58.40%
46.10%
37.90% 35%
0%
10%
20%
30%
40%
50%
60%
70%
Medical Implantables MEMS, flexible paper, cosmetics and E-paper
Smart cards RFID tags
Annual Growth Rate
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Customer Selection Manufacturers
DNP (Dai Nippon Printing)
Soligie
Collaborators
Thinfilm
MC10 (Bio electrionics sensors)
Wearable electronics manufacturers
Nike
Samsung
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Customer Selection Gigantic wearable consumer electronics market
To exploit the design advantages of the new batteries (eg. Nike’s FuelBand and the FitBit line)
Large volume
Footwear, 13.4
Apparel, 6.3
Equipment, 1.2
Others, 0.1
Nike Revenue (in $billion) in 2012
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Customer Selection • Bendable Electronics
• LG and Samsung
• Flexible phones and watches
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Customer Selection
Bioelectronics
MC10
Medical patch
Digital Health
Conformal Electronics
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Customer Selection • Powered smart card
• Oberthur Technologies
• Advanced security for e-banking and e-shopping
• A single card for payment, authentication and ‘on the spot’ information
• Stand-alone solution, no card reader required
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Customer Selection Health products
Pills with smart sensors
Smart bra
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Analysis of value proposition Zinc batteries are already present in
the market but not widely adopted
Not flexible and non-rechargeable
Competitors will erode profits to be made
Large capital needed to scale manufacturing
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Competitor 1: Blue Spark Technologies Carbon-Zinc printable battery
Value proposition Cost effective
Attractive form factor
Easy integration
Green and disposable
Customer selection Battery - Assisted RFID
RF-Linked Sensors
Transdermal Patches
Powered Cards
Interactive Printed Media
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Competitor 2: Rechargeable Lithium printable battery
Value proposition
Ultra thin
Environmentally friendly
Long cycle life
Customer selection
Collaboration with ST microelectronics
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Strategy Canvas
0
2
4
6
8
10
12
Imprint Energy
Blue Spark
Front Edge
PowerPaper
Lithium Polymer
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Energy Density vs Power Density
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Comparison data against competitors
Parameters Front Edge Technologies
(Lithium)
Blue Spark Technologies (Zinc-carbon)
Imprint Energy (Zinc-MnO2)
Traditional laptop battery
(Lithium)
Energy Density 100 – 150 Wh/kg 125 Wh/kg 130 Wh/kg 128 - 150 Wh/kg
Temperature Range -40 to 80 oC -18 to 55 oC -20 to 70 oC –20 to 60 °C
Battery Life (Cycles before degradation)
> 1000 ~ 25 cycles > 100 cycles 400 – 500 cycles
Fabrication Process Vacuum Deposition
SEI formation
Partially Printed Printed Vacuum Deposition
SEI formation
Safety Concerns Reactive, Non-volatile
Semi-reactive, volatile
Non-reactive, non-volatile
Reactive, Non-volatile
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Analysis of value proposition Zinc batteries are already present in
the market but not widely adopted
Competitors will erode profits to be made
Large capital needed to scale manufacturing
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Scope of Activity Versatile and scalable manufacturing process
Make use of a traditional technology, screen printing.
Outsource manufacturing of batteries to printing companies
To ramp up manufacturing to a large commercial scale in a few years
Will not build their own factories
Work closely with manufacturing partners
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• Vertical Disintegration
Value Chain
R&D Raw material
supplier Printing
Manufacturer End product
manufacturer Distribution
and sales
Outsourced partners / Licensee
Collaborators Imprint Energy
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Method of value capture Licensing
To license our technology to collaborators to produce printable batteries
Pure licensing model may lead to a slow growth
Battery sales
Mass produced batteries of standard shapes/sizes
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Cost structure Low cost active materials
High volume structure to enable economies of scale
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Cost Structure
Item Cost for printable battery
Material • $2.07 per Wh • $3.48 per 1400 mAh (Google Nexus One battery capacity)1
Printing / Manufacturing • 100 million batteries / printer • $25k - $800k / printer
1 Obtained from Imprint Energy 2 Obtained from http://www.isuppli.com/Teardowns/News/Pages/Google-Nexus-One-Carries-$17415-Materials-Cost-iSuppli-Teardown-Reveals.aspx
Selling price for Google Nexus One lithium ion battery 2 : $5.25 (1400mAh)
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Method of strategic control Intellectual Property
Patents on solid zinc electrolyte which enable rechargeable battery
Patents on methods of manufacture
Filed provisional patent September 2010
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IP Strategy
• Prove the feasibility of the innovation
Phase 1
• Push the performance of the battery
• Erect barriers to entry
Phase 2 • Extract value out of IP
Phase 3
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Method of strategic control Lack of complementary assets
Sales and Marketing expertise
Distribution channels
IT infrastructure
Low market power against owners of complementary assets
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Innovation value capture matrix
Core idea adapted from Teece, 1986
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Recommendation Strategic control
Contracts to bind manufacturers and end products distributors
Develop more complementary assets
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Contractual agreements Imprint energy holds strong IP rights
Low risk of imitation
Contracts to be designed to maximize profits from innovation
Disruptive Innovation
Prove the feasibility and value of innovation
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Complementary Assets Custom designed batteries
Key components of wearable electronics
Different applications requires
Different shape/size
Different packaging
Different capacity
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Complementary Assets Custom designed batteries
Key components of wearable electronics
Network effects
Virtuous cycle
Develop capabilities to further improve design of wearable electronics in the market and enhance their performance
Custom designed batteries enable
novel and innovative products
Higher demand for innovative end user
products
More products sold increases exposure
of battery
More wearable electronics
manufacturers interested
Higher revenue generated from
battery sales
Revenue pumped into R&D to
improve design
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Recommendation Value Chain
Custom designed solutions to enable novel devices to launch into market
Leverage printing partners to scale rapidly without large capital investment
Continuous R&D to enhance products to improve sales
Imitate Qualcomm model:
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Recommendation Value Chain
Custom designed solutions to enable novel devices to launch into market
Leverage printing partners to scale rapidly without large capital investment
Continuous R&D to enhance products to improve sales Printed and thin media
- Enabling
- Early Adopters
- Billions of devices
Conventional Batteries
- Enhancing
- Thin format progress
- Billions of devices
$250MM - $1.3 BN > $2BN
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Recommendation Method of value capture
Adopt a new licensing model working with multiple partners getting upfront fee for access to design (Imitate ARM model)
Revenue from product manufacturers by offering custom designed solutions
Continue to focus on low cost high volume structure by driving capabilities of manufacturing partners
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Recommendation Customer selection
Focus on new and upcoming technology industry
Health and wellness wearable products
Wireless sensor network (Internet of Things)
$2 billion market by 2021 (IDTechEx)
To be present in majority of electronic devices
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Quantified Self and Smart Homes
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Smart World
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Recommendation Value proposition
Focus on sustainability
Continuous R&D improvement to push the boundaries of battery technology
Working with partners to enable innovation in electronics devices
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Environmental Impact Assessment
"Sustainable Batteries", Assessment of Environmental Technologies for Support of Policy Deccision
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New Innovative devices
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Summary
Value Proposition
Thin
Rechargeable
Sustainable
Safe
Customer Selection
Large Wearable Electronics firms
Novel technologies
Wireless Sensors / Smart cities
Scope of Activities
R&D
Distribution
Sales and Marketing
Method of Value
Capture
Licensing
Customized Solutions
Strategic Control
IP Strategy
Complementary Assets
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Screen Printing Process Similar to old-fashioned silk-screening where
material is deposited in a pattern by squeezing it through a mesh over a template
Obtained from http://www.hdm-stuttgart.de/international_circle/circular/issues/11_01/ICJ_04_32_wendler_huebner_krebs.pdf