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These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for pureLiFi’s LiFi technology. LiFi uses light waves as opposed to radio waves to transmit data wirelessly. While the transmission distances are very short and the light waves cannot penetrate walls as radio waves can do to some extent, LiFi has higher speeds, bandwidth, and security. The slides recommend that pureLiFi target defense company’s first and consumers second. Defense companies have a higher willingness to pay and they are more concerned with security than are consumers. As the cost falls, pureLiFi should begin to target consumers. PureLiFi should provide its technology to systems integrators that are defense contractors.
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Business Model for Li-Fi Technology
Li Bing
A0119251M
Cao Jie (Joy)
A0119774U
Soh Loon Siong
A0098520A
Li Yuanbo (Michael)
A0119085A
Wang Huaiyu(Gem)
A0118990W Chen Zhongze (Frank)
A0119239B
I
II
III
I
Pure LiFi Corporate ProfileLi-Fi Technology
What is ?
o Light can be emitted by LEDo Can reflect the wallo Can dim to be invisible
Wi-Fi is close to full capacity
WIFI
Bandwidth 3 kHz ~ 300 GHz [1]
Speed of data transmission
Limited by 150Mbps [2]
Security Interceptable
Energy Consumption High
Distance 70~250m [2]
Penetration ability Yes
Technology rapidly improving in recent years
a compound annual growth rate of 82% from 2013 to 2018
[1] https://spie.org/x93593.xml; [2] http://en.wikipedia.org/wiki/IEEE_802.11n-2009; [3] http://en.wikipedia.org/wiki/Li-Fi[4] http://jwcn.eurasipjournals.com/content/2012/1/91, A review of communication-oriented optical wireless systems
WIFI LIFI
Distance 70~250m [2] Current 10mExpect to extend to500m in future [4]
Penetration ability Yes No
Limitation of Li-Fi?
WIFI LIFI
Bandwidth 3 kHz ~ 300 GHz [1] 400 ~ 800 THz [1]
Speed of data transmission
Limited by 150Mbps [2] Up to 10Gbps [3]
Security Interceptable No penetration abilityHard to be intercepted
Energy Consumption High Based on illumination
Distance 70~250m [2] Current 10mExpect to extend to500m in future [4]
Penetration ability Yes No
o A leader in Li-Fi technologyo 50 years team experience in communicationso Successful commercialized product
spin-out from the University of Edinburgh
2008
Founder of PureLIFIProfessor Harald Haas
first demonstrated Li-Fi to the world
2011
2012
OfficiallyEstablished
pureLiFi -1st
released
Jan 2014
II
Li-Fi in National Defense
Li-Fi for Mobile Devices
Li-Fi in Public Areas
Technology Adoption Cycle
Roadmap for applications
Step1
Step2
Step3
Li-Fi in National Defense
Li-Fi for Mobile Devices
Li-Fi in Public Areas
Technology Adoption Cycle
US spending US$2.3 billion for tactical radios, wireless network and communications systems
Modern Warfare –Network Centric Warfare
Huge need of large bandwidth Information Security
US spending US$2.3 billion for tactical radios, wireless network and communications systems
Modern Warfare –Network Centric Warfare
Huge need of large bandwidth Information Security
US Spend 1% of Defense Budget on communication system
Hence the industry estimate to worth US$ 17.5 Billion
Huge need of large bandwidth
Data requirementso Voice Communicationo Location Trackero Live Battle Feed
Estimated bandwidth requirementso 2 Mbps for 720p video per soldier/vehicleso 1 Division usually consisting between o 10,000 to 30,000 soldierso Translate to about 60,000 Mbps
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study
Huge need of large bandwidth
Need for faster speed as all equipment's, war machine, man on the ground are wired up to feed commanders first hand information of the battleground to ensure higher chance of victory
Speed limit of current bandwidth of Wi-Fi
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study
Modern Warfare –Network Centric Warfare
A robustly networked force improves information sharing
Information sharing enhances the quality of information and shared situational awareness
Shared situational awareness enables collaboration and self-synchronization, and enhances sustainability and speed of command
Dramatically increase mission effectiveness
Information Security
Security if further enhance by means of encryption
Abundant bandwidth facilitates speedy file transmission, total interaction minimized hence more secured
Lower probability of intercept and detection compared to broadcast or less directional RF wireless links
For RF wireless link, the adversary needs only a low complexity receiver to detect its broadcast transmission or the side lobes of directional RF antennas. While essentially it is impossible for the 3rd party to detect the existence of the Li-Fi link unless they insert their own receiver into the beam path
Review of communication oriented optical wireless systems
Produce prototype R&D investment• Risk Sharing• Lock-in
Unique Product
Key Patent
Li-Fi facilitates National Defense
Li-Fi for Mobile Devices
Li-Fi in Public Areas
Technology Adoption Cycle
File Transmission
etc.Huge Market Potential
Current technology can’t fully utilize the phone’s capacity
The phones capacity will grow by 10 times in the next few yearsTechnology Speed(MB/s) Distance Cost(S$) Performance
Bluetooth 0.1 10m 2 Slow, unstable, hard to manage
Wifi(NFC+S beam) 5 100m 7 Unstable, limited speed, unsafe
Phone flash- write 4-20
Phone flash- read 10-50
LIFI 1000+Current 10mExtend to 500m in future
TBDStable, fast, safe
Less power consumption
Power saving
Fast
safe
Stable
More safe during transmission
Much higher speed than current technology
Less interfere from other electromagnetic wave
A SUPER FAST AND SAFE WIRELESS TRANSMITION SOLUTION
Li-Fi facilitates National Defense
Li-Fi for Mobile Devices
Li-Fi in Public Areas
Technology Adoption Cycle
• Stadium
• Hospital
• Subway
• Library
• Commercial Outlets
• Hotel and Restaurant
• Office Building
• Enterprise
B2G
B2C
B2B
Collaboration
Commercialization
Expansion
Customerselection
Public Sectors
Buildings
Home
Value Proposition
Faster Speed
Cheaper
Safer for human
Value Proposition
Faster Speed
Cheaper
Safer for human
400Mbps 1Gbps
0.2 seconds 0.08 seconds
6 seconds 2.4 seconds
24 seconds 9.6 seconds
90 seconds 36 seconds
How about 400Mbps and 1Gbps?
Value Proposition
Faster Speed
Cheaper
Safer for human
Low Energy Consumption
LiFi
Efficient
Value Proposition
Faster Speed
Cheaper
Safer for human
24 hours of exposure to radio-frequency radiation has been shown to result in similar effects on a comet assay as 1,600chest x-rays.
Harm for human healthy
III
Defense segment
Mobile segmentPublic segment
Licensing out
Open collaboration to promote LIFI technology base on four directions
Defense segment
Product Design
Manufacturing
Product distribution
Product Ads
Service
o Co-develop product with government;o Involve third party companies to develop
software; o Separated project team management;
o Contract manufacturing with government certificated factory
o High quality control
o No Ads, keep the whole project confidential;
o Contract service for hardware maintenance
o Set special service team for value-added service
o B2G- direct sales
Mobile segment
Product Design
Manufacturing
Product distribution
Product Ads
Service
o In house design + fast updateo Product segmentation management
o Contract manufacturing;o High quality control
o Online Ads; o Co- Ads with mobile phone companies;
o Contract service
o B2B- direct saleo CRM managemento Supply/ demand management
Public segment
Product Design
Manufacturing
Product distribution
Product Ads
Service
o In house designo Outsource ID designo Collect excellent design from online
o Contract manufacturing;o High quality control
o Online Ads; o Printing Ads on IT newspaper
and magazines;
o Contract service
o B2B: o Collaborate with telecom carriers;o Direct sale to public place owners;
o Retailo Contract regional agento Flagship storeso Online selling
Licensing out
Technical support
Licensing authority
Collaboration
o Free support to third party developers and companies;
o Only charge licensing fee to the well developed LIFI business;
o Default free of charge to third party developers and small business;
o Strategic collaboration with companies who identified high potential LIFI business ;
o Acquisition if necessary;
Apple Inc.
Retailers
Third party developers
Individual customers
TransmitterReceiverRouter
OEM
Flagship shop
Regional distributor Telecom carriers
Public place owners
Governments
Logistic
Chipset
Third party companies
Other branded companies
Licensing out
Technical support
Chipset Factory
Li-Fi in National Defense
Technology Adoption Cycle
B2G Business Sell products to governments with a sales force: low volume but high gross margin • Chipset/ Transmitter /Receiver/ Router Charge for Value added Services: low charge, but high gross margin and long term • Consultation/ Research service on network protection and interception of
opponents network
Li-Fi for Mobile Devices
Technology Adoption Cycle
B2B Business Sell chipset to mobile phone companies with a key customer management team; Low gross margin, but high volume;
Technology Adoption Cycle
Li-Fi in Public Areas
B2G business Support governments with zero net profit; Gain profit by defense products and value added services;B2B business Sell routers to telecom companies with a sales force; Sell solutions to the large organization or office buildingsB2C Business Sell router and receiver to home users Low gross margin, but high volume
Technology Adoption Cycle
Licensing out to find more opportunities
B2B Business Manage the licensing out by technical teams; Fixed licensing fee or profit dividend;
Brand building
Multi-Products
Product marketing
IP Protection
Standard competition
o Proactively improve technology and apply relevant IPs
o Strong IP protection in chipset and router business;
o Cultivate other LIFI markets with weak licensing protection;
Brand building
Multi-Products
Product marketing
IP Protection
Standard competition
Open collaboration to win standard waro Build relationship with governments,
and try to impact national standard;o Build alliance with MNCs;o Win support from SMBs;o Attract third party developer with
free technical support;o Strategic collaboration with third
party companies for new LIFI business;
Brand building
Multi-Products
Product marketing
IP Protection
Standard competition
Open collaboration to win standard waro Build relationship with governments,
and try to impact national standard;o Build alliance with MNCs;o Win support from SMBs;o Attract third party developer with
free technical support;o Strategic collaboration with third
party companies for new LIFI business;
Brand building
Multi-Products
Product marketing
IP Protection
Standard competition
o In-house designo Contract manufacturing o Contract distributiono Contract serviceo Quality controlBrand
building
Multi-Products
Product marketing
IP Protection
Standard competition
o Focus on hardware + Fast updateo Develop complementary assetso Leverage third party resources
Brand building
Multi-Products
Product marketing
IP Protection
Standard competition
o Zero profit of public products from governments to win defense product orders;
o Low price for short term + higher price for Updated Products
o Provide very competitive pricing for long term contract
o Internet marketing
Brand building
Multi-Products
Product marketing
IP Protection
Standard competition
conclusion
Li-Fi for Mobile Devices
Li-Fi Hotspots in Public Areas
Superior surfing
experience
More LIFI features on mobile device
Network effect between more LIFI featured mobile devices
and existed LIFI spots
More & superior LIFI Hot Spots
Network effect between more LIFI hot spot and LIFI featured mobile devices
Li-Fi facilitates National Defense
Li-Fi for Mobile Devices
Li-Fi in Public Areas
Co –evolutionary StrategyVirtuous Circle
Licensing
Value Proposition
Faster speed
Large bandwidth
Information security
Power saving
Customer Segmentation
National defense
Mobile device
Public area
Scope of Activities
Design & production
Service
Marketing & promotion
Method of Value Capture
Markup & production
Fees of technical service
Licensing fees
Strategic Control
IP protection
Standard competition
Brand building
Multi-differentiation
Marketing strategy
Under water communication
Smart traffic light control system
Geographic-based service
RF sensitive area: airplane, museum,
operation room, etc.
Vehicle-to-vehicle communication
Q & A
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