Imagine a world without wires
12/7/2012 MT4002 – Group presentation 1
Group presentation:
Wireless Electricity
Technology Management Strategy
National University of Singapore
Gaurav Chandrashekar
Coline Juin
Jan Zwerina
Hitesh Suresh
Marieke Oosterbaan
Imagine a world without wires
12/7/2012 MT4002 – Group presentation 2
Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 3
Introduction to Witricity
◤ Wireless electricity transmission technology
◤ Uses resonance coupling of coils
◤ Multiple devices can tap power from single coil
◤ Wireless electricity transmission with low losses
(40% efficiency at 2.3m transmission)
◤ Not dependent on direction
(Up to 15° off axis at this moment)
12/7/2012 MT4002 – Group presentation 4
Wired vs. Wireless
07.12.2012 MT4002 – Group presentation 5
Wired Power Wireless Power
Pros • Low Transmission
Losses
• Familiar in use
• It is everywhere
• Eliminates cables,
infrastructure etc.
• Eliminates power plug
compatibility issues
• Mobility within transmission
range
• Automatic power receiver
Cons • Limited Mobility
• Requirement for cables,
infrastructure etc
• High transmission losses
• Requirement for new
wireless infrastructure
Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 6
Potential Markets
◤ Medical
◤ Consumer Products
◤ Industrial Equipment
◤ Lets see what value proposition of products in these
markets can be
07.12.2012 MT4002 – Group presentation 7
VP for Products in Medical Market
◤ Improved dexterity and safety during surgery
◤ Improves surgical tools through elimination of wires
◤ Reduces need for multiple surgeries ◤ No need for surgery to replace batteries for internal
devices (eg. Pacemakers)
◤ Opportunity for less invasive surgery procedures ◤ Reduced size of products
◤ Enables greater use of “camera-pills” and sensors to track bodily functions ◤ Eliminates battery-constraint by in-body sensors
07.12.2012 MT4002 – Group presentation 8
VP for Products in Industrial Equipment Market
◤ Improved safety
◤ No loose wires on production floor
◤ More effective use of floor space
◤ Greater flexibility in machine location
◤ Architectural new possibilities for product designs
◤ Tools that can rotate through all axes
◤ Higher productivity
◤ Longer running time compared to using rechargeable wireless
device
12/7/2012 MT4002 – Group presentation 9
VP for Products in Consumer Market
◤ Increased Convenience for the user ◤ Greater Mobility
◤ Improved Ubiquity ◤ Eliminates standard wars of power sockets an chargers
◤ Reduction in product size ◤ Smaller batteries
◤ Improved Usability ◤ Eliminating „activity of charging‟
07.12.2012 MT4002 – Group presentation 10
Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 11
Strategic comparison of Markets
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Medical Consumer Industrial
Character-
istics
Size of market Large Very Large Medium
No. Of vertical segments Few Many Few
Growth Moderate Fast Moderate
Need
Usefulness useful moderate moderate
Barriers to
entry
Management Control Vertically
integrated
Vertically
disintegrated
Vertically
integrated?
Product Life Cycle (PLC) Long Short Long
Time to market Very slow
Quick Slow
Ease of Access to
Distribution Channels Hard Easy Medium
Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 13
◤ Competitors
◤ Technical challenges
◤ Market challenges
12/7/2012 MT4002 – Group Presentation 14
Consumer Products: Competitors & Challenges
Consumer Wireless Electricity: 3 Leading Alternatives
12/7/2012 MT4002 – Group presentation 15
Name
Inductive
Coupling
(qi Standard)
Radio Frequency
Harvesting
Resonance
Coupling
(Witricity)
Where it stands Currently available
in market
Currently still in
R&D
Late stage R&D /
Pre market launch
(Potential)
Applications Near field charging Far field charging
Near to Medium
field charging
Companies
Fulton Innovation /
Energizer /
Samsung / Nokia /
Duracell
Intel Witricity
12/7/2012 MT4002 – Group Presentation 16
Name
Inductive
Coupling
(qi Standard)
Radio Frequency
Harvesting
Resonance
Coupling
(Witricity)
Efficiency
1-2 cm 75% - 98% N/A 98%
Efficiency
> 1 m N/A N/A 40% at 2.29m
Charging Alignment Required N/A Up to 15 degrees
off axis
Consumer Wirless Electricity: 3 Leading Alternatives
07/12/2012 MT4002 – Group Presentation 17
Main Competitor: ‘qi’ Standard
◤ Current market leader is qi
(Wireless Power Consortium)
◤ Partners include: Nokia, Samsung, Texas instrument
◤ qi is an open standard
◤ However limited technology:
◤ Maximum transmission distance only 40mm
12/7/2012 MT4002 – Group Presentation 18
Validated Market
Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 19
◤ Witricity‟s Current Business Model ◤ Business Model Illustration
◤ Issues With Current Model
◤ Propose New Business Model
◤ Crossing The Chasm
◤ Where To Introduce Witricity And Why
◤ Why Is It Interesting For Our Partners
12/7/2012 MT4002 – Group Presentation 20
Business Model Generation
Current Business Model = Licensing
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Issues with current business model
◤ Commercialization impetus with licensees
◤ Market has high network effects
◤ High risk for licensees to produce at scale
◤ No catalyst / champion to encourage adoption
Witricity has limited strategic control
There is no catalyst to cross chasm: we will propose one
12/7/2012 MT4002 – Group presentation 22
Proposed Business Model
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Where to introduce Witricity?
Location with greatest impact?
Outside Homes
◤ No or inconvenient existing charging infrastructure
Locations where consumers spend "time“
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How will we cross the chasm? Electricity providers
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Public
locations
Value Capture for Public Locations
◤ Improvement of value proposition
◤ Differentiation among competitors
◤ Leads to improved sales
◤ Value capture through:
◤ Purchase of goods and services from establishment
◤ Sale of receiver coil plugs
◤ Service fee: subscription or advertisements
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Proposed Business Model
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How will we cross the chasm? Electricity customers
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Consumer Products: Which Target Device?
◤ Large volume
◤ Low barriers to entry
◤ Vertically disintegrated
◤ Highly mobile usage
07.12.2012 MT4002 – Group presentation 29
Consumer Products Market Overview 2012
Consumer Products: Which Target Device?
◤ Large volume
◤ Low barriers to entry
◤ Existence of 3rd party add-ons
◤ Vertically disintegrated
◤ Highly mobile usage
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How will we cross the chasm? Electricity customers
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Crossing the Chasm
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◤ Create Infrastructure
◤ Partnerships with commercial locations
◤ Reduce Network Effects
◤ Provide easy adoption through sale of adaptors
at commercial locations
◤ Increase Technology Accessibility
◤ Distribute demonstration kits for early adopters
/ hackers
12/7/2012 MT4002 – Group Presentation 34
Proposed Business Model
Conclusion: 3 step strategy for crossing the Chasm
07.12.2012 MT4002 – Group presentation 35
Step A: Early Adopters phase
◤ Manufacture and distribute receivers & transmitters
◤ Partner with public locations eg. Starbucks
Step B: Early Majority Phase
◤ Encourage integration of receivers with phone manufacturers
Step C: After Crossing The Chasm
◤ Return to pure licensing model
◤ Focus on R&D
Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 36
Questions?
Thank you for your attention!
How much does it cost to charge an iPhone 5?
07/12/2012 MT4002 – Group Presentation 38
Cost Benefit Analysis
◤ iPhone 5 holds 9.5 watt-hours of charge
0.0095 kWh/day x 70% efficiency x 365 days
=
3.47 kWh per year.
x
27 cents/kwH (Cost of electricity in SG)
=
$0.95/year
or
$0.0026/charge
07/12/2012 MT4002 – Group Presentation 39
Technological Challenges of Witricity
◤ Lack of transmission distance
◤ 40% efficiency at 2.3m
◤ Directionally dependant
◤ up to 15°
◤ Safety
◤ Increased magnetic fields
Strategic Partners of Witricity (so far)
12/7/2012 MT4002 – Group presentation 40
Hybrid Cars Mobile
Devices Health Care
Industrial
Equipment
Toyota Misubishi Audi Delphi
Batteries
MediaTek Thoratec GE