my students use ideas from my class on business models to develop a business model for the LEAP, a new user interface for electronic systems. Users can interact with electronic products by moving their hands and the LEAP system recognizes and interprets the gestures. These slides discuss the value propositions for various customer segments including video games, robotics, and 3D modeling. Also discussed are the methods of value capture and strategic control for the LEAP.

1. “The most important new technology since the smart phone ” –
MIT Technology Review
THE LEAP

2. Team LEAP
Dhanasekar Rajagopal Max Neo
Ramasamy Venugopal Shuchi Dangwal
Wilson Oh

3. Agenda
• Introduction
• Customer Selection
• Value Proposition
• Value Capture
• Scope of Activities
• Strategic Control

4. INTRODUCTION

5. Leap Motion
•Start-up established as OcuSpec in 2010.
•Low Profile till May 2012.
•Positive reviews by review bodies.
Source: singularityhub.com
David Holtz, CTO Michael Buckwald, CEO

6. • iPod sized gesture The Leap
recognition human
computer interface Group video
• Connects to a
computer via USB
• 200 times more sensitive • Uses intuitive gestures
than existing touch-free
technologies
• Distinguishes individual fingers
and objects
• Tracks movement down
to a 1/100th of a • Affordable
millimetre.

7. Evolution of Human Computer
Interfaces
Technical Performance
Gesture
Recognition
Touch
Screen
Mouse
Effort

8. Leap Technology
• Uses an array of infrared
sensors.
• Motion detecting algorithm
is the secret.
• Consumes only 1-2% of the
Central Processing Unit
(CPU)
• Does not require the use of
a Graphics Processing Unit
(GPU) at all.
.

9. Market Potential
2010 2015
Source: Global Touchless Sensing and Gesture Recognition Market (2010 – 2015), published by MarketsandMarkets

10. CUSTOMER SELECTION

11. Collaborators
Consumers
Demand for
Leap
Manufacturers’
No. Apps +R Demand for
Leap
Demand for
Apps
Diffusion of technology into
mainstream market

12. Consumers

13. VALUE PROPOSITION

14. Value Proposition
11/15/2012

15. Value Proposition - Gaming
More intuitive compared to
mouse or even touch screens
Casual Gamers
Source: wrixel.com
Professional Gamers
Source:ehow.com
11/15/2012

16. Value Proposition - Gaming
Source: blogs.scientificamerican.com Greater responsiveness
Greater accuracy
Source: thecoolgadgets.com
11/15/2012

17. Value Proposition - Robotics
Self Navigate
Mimic Human
Movement
11/15/2012

18. Value Proposition – Music & Video
Electronic Music Playing or learning
Instruments

19. Value Proposition – Music & Video
DJ/Music Mixing Video Editing
Organic Feel Efficient Flexibility to Create and Edit

20. Value Proposition – Healthcare
For Surgeons
• Contactless. Maintain
sterilization
• Manipulating screens
• Viewing reports
Physiotherapy
• To remotely monitor patients
as they undergo rehab
• Engage children recovering
from injuries by merging
physiotherapy and games

21. Value Proposition – Art & Design
• Offers better ergonomics
compared to mouse
• More intuitive 3D
interface
• Greater accuracy and Source: Siemens website
responsiveness
• Easy to use with simple
form factor
• Relatively cheaper than
competitors
11/15/2012 Source: Salisbury University website

22. Strategy Canvas
High
LEAP
Kinect
SoftKinetic
Mouse
Touchscreen
Leader
Low

23. Value Capture
Products
End User
$ (Revenue)
Leap
Consumer Technology The Leap
Electronics
Manufacturer $ (License) $
$ (Commission)
Apps Apps
$ App Store $ (Revenue)
Software
Developers (%age of Net
Revenue)
23

24. Scope of Activities- Operations
Outsource Build Collaboration
hardware distribution with application
manufacturing Channels developers

25. Scope of Activities- R&D
Exploration
Enhance their
with Integration
own software
developers

26. Scope of Activities- Marketing
Visionaries Pragmatists
Technology Enthusiasts Conservatives

27. Strategic control –
Sustaining Profitability
• Protect IP – Protecting the source
code
• Develop App World – Robust and
Innovative
• Innovate – Improving Technology
• Form alliances – Alliances with
software developers

28. Key Key Value Customer Customer
partners activities proposition relationships segments
R&D
COLLABORATORS 3 Dimension Gaming
Self/ Automated
Software Service
Developers Robotics
SDK Intuitive
&
Development
Consumer
Electronic
Producers Music &
Key resources Affordable Channels Video
Manufacturer Patents &
Third party
of Leap SDK
Accurate distribution Healthcare
Distributors of Talent
Sensitive Website Arts &Design
Leap
Cost structure Revenue streams
Sales
R&D Manufacturing & License Fee Commission Sale
Marketing
www.businessmodelgeneration.com

29. Q&A