Biz Model for Catchbox

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My students apply concepts from my (Jeff Funk) course on business models to "Catchbox," which is a portable wireless microphone. Since it can be easily thrown and caught, it can be used in large conference or class rooms to facilitate participation from the audience.

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Biz Model for Catchbox

  1. 1. Liisa HakalaTuomas HervonenJarno HilveniusEssi PuustinenEkku RytkönenProject presentationMT4002 Technology Management Strategy
  2. 2. Agenda1. Introduction to Catchbox2. Value proposition3. Customer selection4. Value capture5. Scope of activities6. Strategic control6th Nov 2012 2
  3. 3. INTRODUCTION 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 3INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  4. 4. The Company • Participated in the Finnish “Summer of startups” program • 10 weeks internship program of (CatchBox web page, 2012) Aalto Entrepreneurship Society • End result was their product: Catchbox • Business plan is still in progress – Our goal was to design a business plan for the company – Everything from this slide onwards is created by our group VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  5. 5. VALUE PROPOSITION 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 5INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  6. 6. “Best new device for crowd Catchbox Q&A I’ve ever seen.” Doug Richard, (Dragons den UK &) School for Startups, London • Throwable wireless microphone – no-one has to run around with a traditional microphone • Engages the audience – Breaks the ice – Sparks discussion – Helps sharing ideas – Increases interaction • Fun to throw, easy to catch (CatchBox web page, 2012) VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  7. 7. Value of Catchbox • For lectures: class paying full attention % – Its hard to maintain the attention of the audience – Catchbox keeps students on their toes and awake • Enhanced discussion • Better Q&A sessions • Improved learning experience time, min – How would the curve look (Mills, 1953) like when using Catchbox? 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 7INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  8. 8. Disadvantages • Takes attention and focus to the wrong place • Creates too big fuss when used for the first time • Microphone flies to difficult place or a corner • Someone does not know how to catch – Could be embarrassing? • What if Catchbox knocks off coffee or something else? – Who is responsible? VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  9. 9. Technical Details • Product includes – Wireless transmitter – Motion sensor – Microphone – Design-cube shaped cover • Not easy to break • Easy to plug-in to a system • Microphone switched off when Catchbox is in the air • Switched on when catching/landing VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  10. 10. Technical Assumptions • A lot of strategic questions were left unanswered • Resulting technical assumptions – Cover can be changed – Open from side when needed to switch on/off – Can be sold with or without the transmitter – Charging by changing battery VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  11. 11. CUSTOMER SELECTION 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 11INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  12. 12. What is the customer like? • Curious • Innovative • Interactive-freak • Adventurous • Not too serious • Desires to improve VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  13. 13. Who would be the user? • Universities • Executive education organizations • Comedians • Magicians (NUS web page, 2012) • Firm events • TV shows • All kinds of speakers “This is the first time that a group has proposed a technology that might • (Sponsor firms) help me in my job! Good topic.” Jeff Funk, MT4002, NUS VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  14. 14. Segmentation Two big segments: • Service Providers • Direct Buyers – Companies that provide – Companies or individuals organizations with that deliver speaches in audio-visual systems in a variety of situations their facilities – Key issue is mobility – Turnkey style service – For example guest includes all equipment, lecturers, consultants, installation and later on etc. maintenance VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  15. 15. Segmentation Pros and cons: • Service Providers • Direct Buyers + Not price sensitive + Greater volumes initially + Need to convince only + Easier market the provider penetration + Bulk buys + Might start hype − Market penetration is reaction hard − Need of substantial − Long delivery chain marketing efforts VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  16. 16. Differences in needs Two big segments: • Service Providers • Direct Buyers – Professional quality – Need easy connectivity – Assembly is not a – Ready to use problem – Mobile usage – Stationary usage VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  17. 17. VALUE CAPTURE 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 17INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  18. 18. Value capture methods • Two main sources of revenue – Online sales (Direct buyers) – Service Providers • Online sales – The sales occurs through our websites – Customer can pay with • Credit/debit • PayPal Express Checkout • Service Providers – Pay directly to us VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  19. 19. Cash flow in the value network COMPONENTS TEXTILES & COMPONENT S SUPPLIER 1 SUPPLIER 1 TECHNOLOGY COVER SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2 COMPANY COMPANY SUPPLIER 3 SUPPLIER 3 Banks Payment service SERVICE PROVIDERS CATCHBOX provider PayPal INDIRECT CUSTOMERS DIRECT BUYERS PURCHASING A SYSTEM PURCHASING THE THAT THE PRODUCT IS A PRODUCT FOR THEIR PART OF OWN USE VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  20. 20. Catchbox´s net profit margin is ~50% (Houston chronicle web page, 2012) 100 % Sales price 90 % 300 € 80 % 70 % 60 % 50 % Net profit 40 % Costs 30 % Inclusive of textiles, hardware system, 20 % logistics, inventory, payment service 10 % provider, labor 0% Catchbox cost structure VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  21. 21. SCOPE OF ACTIVITIES 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 21INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  22. 22. Setting up operations • Catchbox is a startup – Small company – No/Fuzzy infrastructure at the moment – Limited resources • One product  Narrow horizontal integration • Outsource rather than do  Low degree of vertical integration VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  23. 23. Activities to carry out • Catchbox acts as the designer – Cover design and technical aspects of the product – Some logistics administration and inventory of technology units and covers • Manufacturing is outsourced – Cheap components and technology assembly (China?) – Finnish cover manufacturer  Finnish quality recognition and the brand value • In the case of our business growing – Logistics company to manage logistics and inventory  Catchbox holds only design functions VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  24. 24. Order information flow COMPONENTS TEXTILES & COMPONENT S SUPPLIER 1 SUPPLIER 1 TECHNOLOGY FINNISH COVER SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2 COMPANY COMPANY SUPPLIER 3 SUPPLIER 3 SERVICE PROVIDERS CATCHBOX INDIRECT CUSTOMERS DIRECT BUYERS PURCHASING A SYSTEM PURCHASING THE THAT THE PRODUCT IS A PRODUCT FOR THEIR PART OF OWN USE VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  25. 25. Material flow COMPONENTS TEXTILES & COMPONENT S SUPPLIER 1 SUPPLIER 1 TECHNOLOGY FINNISH COVER SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2 COMPANY COMPANY SUPPLIER 3 SUPPLIER 3 SERVICE PROVIDERS CATCHBOX INDIRECT CUSTOMERS DIRECT BUYERS PURCHASING A SYSTEM PURCHASING THE THAT THE PRODUCT IS A PRODUCT FOR THEIR PART OF OWN USE VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  26. 26. Activities to carry out • Marketing and promotion – In the absense of resources marketing has to be modern and clever – Marketing through social media such as Facebook and Twitter – Participating in public events with media coverage – Promotion through the customers • Direct buyers promote Catchbox by using it and getting the word out • Service providers can promote the new product to their customers  Added value to their offering by having a product their competition lacks VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  27. 27. Examples • Promotion in events: – Finnish Municipal Elections debate 2012 (YLE) VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  28. 28. Examples • Promotion by speakers: – Linus Torvalds in Aalto University (EIT ICT Labs) VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  29. 29. STRATEGIC CONTROL 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 29INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  30. 30. Strategic Control • Competitive advantages – Nothing similar available – Finnish design – Professional buyers • Trust quality products – Niche product (Avainlippu web page, 2012) VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  31. 31. Complementary Assets • Needed technology already available – design concept product • Production can be easily outsourced • Need to broaden supplier base • Licensing contracts with cover providers and designers VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  32. 32. Protecting the product • Patenting design • Trademark • Retaining high quality – Demanded by professional buyers and users VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  33. 33. Future possibilities • Larger version for catching the atmosphere in larger events – e.g. crowd surfing Catchbox in concerts • Advertisements on the cover • Company-tailored covers • Catchbox with camera VALUE CUSTOMER VALUE SCOPE OF STRATEGICINTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
  34. 34. THANK YOU! (Rapgenius web page, 2012)Next: 5 minutes for questions  Go!
  35. 35. References• Cover slide background picture – http://www.talouselama.fi/Kasvuyritykset/pehmea+mikrofonikuutio+lensi+yleison+sydamiin++sta rtup+loi+valmiin+tuotteen+2+kuukaudessa/a2139106 , last used 17.10.2012• Catchbox related pictures and Cite from Doug Dichard – www.thecatchbox.com, last used 17.10.2012 (First blue one original, other own mock-ups)• Attention graph on slide 7 – Mills, H. R., Techniques of technical training, Cleaver-Hume Press, London, 1953.• Photo of Jeff Funk on slide 13 – NUS Faculty of Engineering Staff profiles, http://www.eng.nus.edu.sg/etm/staff/Funk_JL.htm, last used 17.10.2012.• Estimated margins for Catchbox on slide 20 – http://smallbusiness.chron.com/average-profit-margin-small-business-23368.html, last cited 10.10.2012.• Finnish Municipal Elections debate 2012 on slide 27 – screen capture: YLE broadcast, 21.10.2012• Linus Torvalds public speech on slide 28 – screen capture: EIT ICT Labs live webcast, 23.10.2012• “Design from Finland” figure on slide 30 – http://www.avainlippu.fi/liiton_merkit/design-finland, last used 15.10.2012• Borat picture on slide 34 – http://s3.amazonaws.com/rapgenius/1291131680_two-thumbs-up.jpg, last used 17.10.2012.
  36. 36. Back up slide: Level of margins• There are four types of wireless microphones: • headset microphone • lavalier/lapel microphone • handheld microphone• The price ranges for each product type falls roughly into the following categories (source: myshopping.com.au): • 7-80 € • 80-240 € • 240-480 € (Catchbox) • 480-1600 €

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