Biz Model for Wireless Electricity

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


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)


Wired vs. Wireless


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










◤ Conclusion


Potential Markets

◤ Medical

◤ Consumer Products

◤ Industrial Equipment

◤ Lets see what value proposition of products in these

markets can be


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


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


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‟


Agenda










◤ Conclusion


Strategic comparison of Markets


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










◤ Conclusion


◤ Competitors

◤ Technical challenges

◤ Market challenges

12/7/2012 MT4002 – Group Presentation 14

Consumer Products: Competitors & Challenges

Consumer Wireless Electricity: 3 Leading Alternatives


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


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


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


Validated Market

Agenda










◤ Conclusion


◤ 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


Business Model Generation

Current Business Model = Licensing


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


Proposed Business Model


Where to introduce Witricity?

Location with greatest impact?

Outside Homes

◤ No or inconvenient existing charging infrastructure

Locations where consumers spend "time“


How will we cross the chasm? Electricity providers


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




How will we cross the chasm? Electricity customers


Consumer Products: Which Target Device?

◤ Large volume

◤ Low barriers to entry

◤ Vertically disintegrated

◤ Highly mobile usage


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


How will we cross the chasm? Electricity customers


Crossing the Chasm


◤ 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



Conclusion: 3 step strategy for crossing the Chasm


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










◤ Conclusion


Questions?

Thank you for your attention!

How much does it cost to charge an iPhone 5?


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


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)


Hybrid Cars Mobile

Devices Health Care

Industrial

Equipment

Toyota Misubishi Audi Delphi

Batteries

MediaTek Thoratec GE