These slides describe a biz model for D30 material that is based on ideas from my (Jeff Funk) class on business models. D30 is a new material that is flexible until it absorbs and impact and becomes rigid. This characteristic makes D30 useful for clothing and gear used by athletes, motorcycle riders, and the military. the parent company profits from D3O by partnering in development with many manufacturers of final products and licensing the technology to them

1. D3O
Business Model Analysis
By: Chung Wing Tai, Julian Koo, Justin Lin,
Jason Yeo, Ryan Wee, Tham Kai Sheng

2. D3O and a Shovel
https://www.youtube.com/watch?v=9VDeJ7rLUYU

3. D3O Technology

4. What is D3O?
• D3O is a patented protective material that
utilizes enhanced chemistry to produce high
performance impact protection solutions.

5. How does D3O work?
• D3O comprises a shear-thickening
compound, whose molecules reversibly lock
together on impact.

6. How is D3O better?
• Less force is transmitted on impact
Less transmitted force
= Less pain

7. How is D3O better?
• CE Level 2 Certification
• D3O passed Level 2 of
prEN1621-1, making it
safe for motorcyclist
protection

8. Price Comparison
• D3O is premium priced but not exorbitant

9. Who would use D3O?
• People looking for dependable protection that is
lightweight and flexible.
o Professional Athletes
o Those facing occupational hazards (eg. Military, law
enforcement & industrial workers)
o Users of expensive tech gadgets

10. Professional Athletes
• virtually all
• Covers High speeds &
parts of Dangerous
the body
terrain
• Breathable
• Prone to serious
protection
injuries from falls
and tumbles
• Flexible pads
• Comfort helps
improve focus
• Confidence in
• Mobility required
protection
for performance

11. Professional Athletes
• Covers virtually all
parts of the body
• Breathable
protection
• Flexible pads
• Confidence in
protection

12. Military, Law enforcement &
Industrial workers
• High risks of injury due
to exposure to hazards
• Fear of injury may
impede operations
• Flexibility and
mobility required
for top
performance
• Injuries delay
work progress
and incur costs

13. Tech Gadget Users
• Expensive Tech Gadgets
like Apple products
• Risk of damage due to
accidental dropping/ knocking
• Potential financial, time,
emotional loss as well as
major inconveniences

14. Other Applications
• People looking to harness D3O’s advanced
properties
• For example, tennis racquets with adaptive
rigidity
Head YouTek D3O
Series Tennis Racquet

15. D3O Labs

16. The Big Picture

17. Value Proposition of
D3O Labs

18. Value Proposition to Partners
• Access to the D3O
technology
• Engineering, research
and design services Open
• Assistance in the Innovation
manufacturing process

19. Partner Selection

20. Partner Selection
• Consumer firms:
o Protective gear
o Sports equipment
• Industrial firms:
o Safety shoes
• Defence:
o Protective gear

21. Technology Adoption Strategy
• Targeting early adopters
o E.g. Pro-athletes and special
forces
• Why?
o Most willing to try new technology
and to pay a premium for it
o Strong influence on market
opinion
• Hence, D3O needs to choose
premium partners that would
appeal to these early adopters.

22. Value Capture
and
Scope of Activities

23. Methods of Value Capture
• Licensing & Partnerships
• Services for Partners
• Internally-Developed Products - XERGO

24. Licensing & Partnership
• Sales have been growing ~100% annually

25. Services for Partners
• D3O captures revenue through customized
engineering and design services

26. Sales & Production
• XERGO – Limb Protectors for motorcyclists
• No 3rd parties involved in the design

27. Research & Development
• D3O is constantly improved via R&D to improve its
features, so as to maintain D3O's relevance & edge in
the market
• For example, D3O released three unique composites to
general customers (XT, ST and Shock+)

28. Strategic Control

29. Current Barriers to Entry
• Intellectual property protection
o Patenting of chemical formula
o Patenting of the design of protective products
o Allows them to protect and appropriate their IP, and
lock-in customers for a period of time via contracts

30. Current Barriers to Entry
• Controlling the manufacturing of D3O products
o Partners not involved in the manufacturing of D3O
o Proprietary knowledge remains with D3O
D3O manufactures D3O delivers to Partner sells
to spec partner completed product

31. Current Barriers to Entry
• Reputation
o Premium reputation in the field of protective
materials
o Control of marketing communications and product
launch strategies, even by partners

32. Competitors

33. Poron XRD
• Poron XRD
o It is based on a urethane based polymer foam which
solidifies momentarily on impact
o Uses the amorphous properties of urethane
molecules, which become rigid on impact.

34. Case study comparing
D3O and Poron XRD
• Specific offering in motorcyclist protection

35. D3O Flo1 vs Poron XRD B-Guard
• Comparing two back protectors for
motorcyclists:
D3O: Poron XRD:
Flo1 B-Guard

36. D3O Flo1 vs Poron XRD B-Guard
• Comparing two back protectors for
motorcyclists using spec sheets
D3O: Poron XRD:
B-Guard

37. Strategy Canvas:
D3O Flo1 vs Poron XRD B-Guard
Dimensions of Performance

38. Strategy Canvas:
D3O Flo1 vs Poron XRD B-Guard
Safety User Comfort Others
Dimensions of Performance

39. What can D3O do better?

40. Value Proposition
• D3O is a thermosetting polymer
• Synthesizing process is toxic
• Life expectancy of 2 to 3 years

41. Value Proposition
• D3O as a recyclable material
• Reduce the toxicity of synthesizing process
of D3O
• Increase durability of the product

42. Customer Selection
• Military
o A market that is worth approximately US$16 million
per country per year
o Prospective customers, Eg. US, Germany, France,
Israel, Singapore

43. Customer Selection
• Elderly
o Focus on gerontechnology
o Shock absorbent clothing for the aging
population
o Produce hip and back protectors for the
elderly

44. Customer Selection
• Children
o child apparels infused with d3o technology
o eg. Impact resistant beanies for kids
o child-safe house appliances
o eg. D3O sharp corner protectors

45. Scope of Activities
• Partner with bigger brands, especially the popular
mass-market brands, so as to capture market share
• Acquisition or partnership with competing
technologies to improve D3O's competitive edge

46. Scope of Activities
• Constant R&D in different fields to improve D3O and
its complementary technologies. (e.g. D3O incorporated
into health care products like prostheses)

47. Strategic Control
• Create greater barriers to entry
o Exclusive contract agreements with partners
o Develop a family of complementary products to
harness indirect network effects

48. Strategic Control
• Scaling up operations
o Has a team of less than 100 employees
o D3O works on 20 to 30 projects at any one time
o Hire more people to meet demand and maintain
quality service

49. Thank you
By: Chung Wing Tai, Julian Koo, Justin Lin,
Jason Yeo, Ryan Wee, Tham Kai Sheng

50. FAQs

51. What is D3O composed of?
• It comprises a dilatant compound known as
Polyborodimethylsiloxane (PBDMS),
distributed in a foam matrix