Biz Model for Tactus

MT 4002 Technology Management Strategy | Tactus

Tactus Technology Tactile User Interface for Touchscreen Devices

Dynamic Buttons rise UP from your touchscreen Buttons when you need them; gone when you don’t.


Presentation Overview 1. Introduction to Tactile Layer

o What is the Tactile Layer

o Value Proposition - Why is Tactile Layer better?

2. Market for Tactile Layer

o Opportunities for business

o Customer Selection

3. Value Capture

o Product offering

o Money Flow within existing market

o Method of Value Capture & Revenue Models

4. Scope of Activities

5. Strategic Control

o Long term survival and growth


The Touchscreen Experience

• Interactive User Experience

• Intuitive & Easy to use

• Unable to recreate true tactile responses

• Low accuracy during use


Problem

Compromised User Experience

• Data entry errors

• Poor typing speed

• Constant visual monitoring - inconvenient or even dangerous

• No way to blind-navigate


Compare advantages of two most common Interaction Methods

Physical Buttons • High speed typing

• Accuracy and confidence

• Free from sensitivity and calibration problems

Touch Screen • Bigger screens

• Fastest pointing device

• More interactive browsing experience

• New dimension to games and apps

Tactus Technology Demo Video Click to Watch

Solution


What is the Tactile Layer user interface?

• Application-controlled, completely transparent real and physical buttons that rise up from the touchscreen surface on demand

• Tactile Layer™ easily integrates with today’s touchscreen-based devices o Replaces ‘window’ layer and requires no change to the underlying

display or touch sensor

• A ‘best of both worlds’ solution combining the comfort of a physical keyboard with the versatile experience provided by a touchscreen


So how does Tactile Layer Work?

• Replaces the front layer of the display stack, known as the cover lens or window.

• Little or no change to the underlying touch sensor or display.


Technology

• Venture-backed company headquartered in Fremont, California

• Sole product: Tactile Layer TM

• Availability: Commercially available in 2013

• Direct competitor: None

• Business model is product business model


Value Proposition


• Multiple Button Shapes • Controllable button height • Programmed to custom-fit current

screen

Types of Buttons – Truly Dynamic Interface

Square Rectangle

Orientation Sensitive

Round


The Tactile Layer: More than simply ‘best of both worlds’

– A superior value proposition

• Enables multi-tasking by reducing user’s need to look at the screen while using a touchscreen device

• Improved Safety

Tactile Layer introduces new value to the end user


Superior Value Proposition

• Improves speed and accuracy while using a touchscreen device


Superior Value Proposition

• Provides an overall improved user experience with touchscreen device


Key Benefits of Tactile Layer to End Users

• Higher performance - addresses conformation and orientation

‒ Higher Accuracy

‒ Faster speed

• Improved Safety

• Improved overall user experience

Key Takeaway: 1. People care about these areas of problems 2. These benefits are add-ons, without sacrificing any of the existing touchscreen features


Applications / Value Prop for Users

Using capacitive screen with gloves

Better/ Realistic Games

Better typing efficiency

Full-screen Entertainment

Full-screen Work Processing & Presentation

Compatible with existing phone covers


Market Opportunities & Customer Selection


Potential Applications of Tactus’s Tactile

Layer

Non-Touch Screen, Physical Keyboard Phones

Touch Screen, Physical Keyboard-less Phones

Hybrid Phones

Market Segments

Hand Phone Industry

First Adopters

Customer Selection


Sales of touch screen devices with built in keyboards: Mobile phones

Sales of keyboard peripherals to touch screen devices

Market Opp of Tactus

Touchscreen demand to grow by 90-percent, led by mobile, tablet markets

48.64% of people surveyed still want qwerty keyboards

Touchscreen demand to grow by 90-percent, led by mobile, tablet markets 48.64% of people surveyed still want qwerty keyboards

Sales of touch screen devices with built in keyboards: Mobile phones Sales of keyboard peripherals to

touch screen devices


Existing Value Network

OEMs (Hardware Component

Manufactures)

Phone Manufacturers

Phone Retailers

Service Providers

Consumers

OS Developers

Application Developers

Content Providers

Indirect customers to Tactus

Logical categorisation

Customers/ Stakeholders to Tactus


New Value Network with Tactus

Phone Manufacturers

Phone Retailers

Service Providers

Consumers

OS Developers

Application Developers

Content Providers

Indirect customers to Tactus

Logical categorisation

Customers/ Stakeholders to Tactus

Direct customers to Tactus

Tactus Tactile Layer

Other Hardware Components

Manufacturers

+

OEMs


• Provide a new, innovative feature

• Easy integration - no need to re-engineer display stacks

• Opens up new markets and allows for creation of new and innovative products (lighter, bigger screen, curved)

• Premises for new types of OS interaction/ applications

• Provides new dimension of user experience within applications

Value Proposition for Direct Customers

Service Providers

Phone Manufactur

ers

Content Providers Consumers

Phone Retailers


High sales volume expected Applications may use more data

High sales volume expected

Improved user experience Higher work performance

Value Proposition for Indirect Customers

Service Providers

Phone Manufactur

ers

Content Providers Consumers

Phone Retailers


Value Capture


Product Overview

Products Offered

Tactile Hardware

Tactile Layer

Tactile Controller

To control Tactile Layer

Product Key

To access Tactile Controller & manipulate

Tactile Layer


Cash flow within Existing value network

Slight differences may exist between firms with different revenue models

• Apple makes both the handset and the OS, so costs are internalized

• Android OS is free but Google makes money through advertising

• Symbian is licensed

OEMs (Component Manufacturers)

Operating System Developers

Application Developers Consumers

Provide Platform for development

Sell Content/ Advertising revenue

Licensing fee/ Advertising Platform

Buy Components

Handset Makers Sell Phones


Cash flow with Tactus (A unique OEM)

Method of value capture for access key sales would vary according to platform, since the various developers have different revenue models

OEMs (Component Manufacturers)

Operating System Developers

Application Developers Consumers

Provide Platform for development

Sell Content/ Advertising revenue

Licensing fee/ Advertising Platform

Sell Phones

Buy Components

Handset Makers

Tactus Technology Sell Tactile Layer & Controller Sell

Product Key


Revenue Model Tactus Technology

Tactile Layer & Tactile Controller

Smart phone makers

Direct Sales

Tactile Product Key to Interface

Open Source Model

Android App Developers

Direct Sales

Closed Source/ Proprietary Model

Apple

Commission per sale made

Others (Blackberry,

Symbian & Windows Phone makers)

Commission per sale made


Pricing

• Incorporating new MEMS device introduces added cost to manufacturing smartphones

• But smartphone market and market for mobile MEMS is growing, suggesting larger volumes which may help reduce costs

• Smartphones contribute 45.6% of overall handset market shipments in 2012 and this will increase to 67.4% by 2016

(source: iSuppli - http://www.isuppli.com/Abstract/P23710_20120928151741.pdf)

http://www.isuppli.com/Abstract/P23710_20120928151741.pdf


Pricing


Scope of Activities


Tactile Layer Design R&D

MEMS Manufacturing

IC Manufacturing

Tactile Layer Manufacturing

Application Programming Interface (API) development

Tactile Layer Sale &

Distribution

Sales of Product Key

Global Distribution

Support

Tactus Technology

External Vendors

Business Flow


Application Programming Interface


Tactile Layer Design R&D

MEMS Manufacturing

IC Manufacturing

Tactile Layer Manufacturing

Application Programming Interface (API) development

Tactile Layer Sale &

Distribution

Sales of Product Key

Global Distribution

Support

Tactus Technology

External Vendors

Business Functions


Application Programming Interface

Supply Chain

R&D

Engineering

Strategic Management

Sales

Customer Service

Finance

Marketing

Operations, Legal, HR and IT

PR & Partnership


Strategic Control


Key Features/ Appropriability Regime

• First entrant

• Control standards which will create a barrier to entry

• Most important complementary assets are R&D, Marketing and Distribution

• Strong protection for the technology

• Sustainability via acquisition

• Economics of scale

• Access to complementary assets


Patents


Key Features/ Appropriability Regime

• First entrant

• Control standards which will create a barrier to entry

• Most important complementary assets are R&D, Marketing and Distribution

• Strong protection for the technology

• Sustainability via acquisition

• Economics of scale

• Access to complementary assets


Conclusion


Conclusion – Business Prospects

• Haptics is a growing field

• Business plan o Maintain industry leadership through innovation

• Potential for Tactus to branch out to other industries o E.g. Automotives/medical equipment/etc.


THANK YOU! Q&A