Biz Model for pureLiFi

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These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for pureLiFi’s LiFi technology. LiFi uses light waves as opposed to radio waves to transmit data wirelessly. While the transmission distances are very short and the light waves cannot penetrate walls as radio waves can do to some extent, LiFi has higher speeds, bandwidth, and security. The slides recommend that pureLiFi target defense company’s first and consumers second. Defense companies have a higher willingness to pay and they are more concerned with security than are consumers. As the cost falls, pureLiFi should begin to target consumers. PureLiFi should provide its technology to systems integrators that are defense contractors.

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Biz Model for pureLiFi

  1. 1. Business Model for Li-Fi Technology
  2. 2. Li Bing A0119251M Cao Jie (Joy) A0119774U Soh Loon Siong A0098520A Li Yuanbo (Michael) A0119085A Wang Huaiyu(Gem) A0118990W Chen Zhongze (Frank) A0119239B
  3. 3. I II III
  4. 4. I Pure LiFi Corporate ProfileLi-Fi Technology
  5. 5. What is ?
  6. 6. o Light can be emitted by LED o Can reflect the wall o Can dim to be invisible
  7. 7. Wi-Fi is close to full capacity WIFI Bandwidth 3 kHz ~ 300 GHz [1] Speed of data transmission Limited by 150Mbps [2] Security Interceptable Energy Consumption High Distance 70~250m [2] Penetration ability Yes Technology rapidly improving in recent years a compound annual growth rate of 82% from 2013 to 2018 [1] https://spie.org/x93593.xml; [2] http://en.wikipedia.org/wiki/IEEE_802.11n-2009; [3] http://en.wikipedia.org/wiki/Li-Fi [4] http://jwcn.eurasipjournals.com/content/2012/1/91, A review of communication-oriented optical wireless systems WIFI LIFI Distance 70~250m [2] Current 10m Expect to extend to 500m in future [4] Penetration ability Yes No Limitation of Li-Fi? WIFI LIFI Bandwidth 3 kHz ~ 300 GHz [1] 400 ~ 800 THz [1] Speed of data transmission Limited by 150Mbps [2] Up to 10Gbps [3] Security Interceptable No penetration ability Hard to be intercepted Energy Consumption High Based on illumination Distance 70~250m [2] Current 10m Expect to extend to 500m in future [4] Penetration ability Yes No
  8. 8. o A leader in Li-Fi technology o 50 years team experience in communications o Successful commercialized product spin-out from the University of Edinburgh 2008 Founder of PureLIFI Professor Harald Haas first demonstrated Li-Fi to the world 2011 2012 Officially Established pureLiFi -1st released Jan 2014
  9. 9. II Li-Fi in National Defense Li-Fi for Mobile Devices Li-Fi in Public Areas Technology Adoption Cycle Roadmap for applications Step1 Step2 Step3
  10. 10. Li-Fi in National Defense Li-Fi for Mobile Devices Li-Fi in Public Areas Technology Adoption Cycle
  11. 11. US spending US$2.3 billion for tactical radios, wireless network and communications systems Modern Warfare – Network Centric Warfare Huge need of large bandwidth Information Security
  12. 12. US spending US$2.3 billion for tactical radios, wireless network and communications systems Modern Warfare – Network Centric Warfare Huge need of large bandwidth Information Security US Spend 1% of Defense Budget on communication system Hence the industry estimate to worth US$ 17.5 Billion
  13. 13. Huge need of large bandwidth Data requirements o Voice Communication o Location Tracker o Live Battle Feed Estimated bandwidth requirements o 2 Mbps for 720p video per soldier/vehicles o 1 Division usually consisting between o 10,000 to 30,000 soldiers o Translate to about 60,000 Mbps http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study
  14. 14. Huge need of large bandwidth Need for faster speed as all equipment's, war machine, man on the ground are wired up to feed commanders first hand information of the battleground to ensure higher chance of victory Speed limit of current bandwidth of Wi-Fi http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study
  15. 15. Modern Warfare – Network Centric Warfare A robustly networked force improves information sharing Information sharing enhances the quality of information and shared situational awareness Shared situational awareness enables collaboration and self- synchronization, and enhances sustainability and speed of command Dramatically increase mission effectiveness
  16. 16. Information Security Security if further enhance by means of encryption Abundant bandwidth facilitates speedy file transmission, total interaction minimized hence more secured Lower probability of intercept and detection compared to broadcast or less directional RF wireless links For RF wireless link, the adversary needs only a low complexity receiver to detect its broadcast transmission or the side lobes of directional RF antennas. While essentially it is impossible for the 3rd party to detect the existence of the Li-Fi link unless they insert their own receiver into the beam path Review of communication oriented optical wireless systems
  17. 17. Produce prototype R&D investment • Risk Sharing • Lock-in Unique Product Key Patent
  18. 18. Li-Fi facilitates National Defense Li-Fi for Mobile Devices Li-Fi in Public Areas Technology Adoption Cycle
  19. 19. File Transmission etc. Huge Market Potential
  20. 20. Current technology can’t fully utilize the phone’s capacity The phones capacity will grow by 10 times in the next few years Technology Speed(MB/s) Distance Cost(S$) Performance Bluetooth 0.1 10m 2 Slow, unstable, hard to manage Wifi(NFC+S beam) 5 100m 7 Unstable, limited speed, unsafe Phone flash- write 4-20 Phone flash- read 10-50 LIFI 1000+ Current 10m Extend to 500m in future TBD Stable, fast, safe
  21. 21. Less power consumption Power saving Fast safe Stable More safe during transmission Much higher speed than current technology Less interfere from other electromagnetic wave A SUPER FAST AND SAFE WIRELESS TRANSMITION SOLUTION
  22. 22. Li-Fi facilitates National Defense Li-Fi for Mobile Devices Li-Fi in Public Areas Technology Adoption Cycle
  23. 23. • Stadium • Hospital • Subway • Library • Commercial Outlets • Hotel and Restaurant • Office Building • Enterprise B2G B2C B2B Collaboration Commercialization Expansion Customer selection Public Sectors Buildings Home
  24. 24. Value Proposition Faster Speed Cheaper Safer for human
  25. 25. Value Proposition Faster Speed Cheaper Safer for human 400Mbps 1Gbps 0.2 seconds 0.08 seconds 6 seconds 2.4 seconds 24 seconds 9.6 seconds 90 seconds 36 seconds How about 400Mbps and 1Gbps?
  26. 26. Value Proposition Faster Speed Cheaper Safer for human Low Energy Consumption LiFi Efficient
  27. 27. Value Proposition Faster Speed Cheaper Safer for human 24 hours of exposure to radio-frequency radiation has been shown to result in similar effects on a comet assay as 1,600 chest x-rays. Harm for human healthy
  28. 28. III
  29. 29. Defense segment Mobile segmentPublic segment Licensing out Open collaboration to promote LIFI technology base on four directions
  30. 30. Defense segment Product Design Manufactur ing Product distribution Product Ads Service o Co-develop product with government; o Involve third party companies to develop software; o Separated project team management; o Contract manufacturing with government certificated factory o High quality control o No Ads, keep the whole project confidential; o Contract service for hardware maintenance o Set special service team for value-added service o B2G- direct sales
  31. 31. Mobile segment Product Design Manufactur ing Product distribution Product Ads Service o In house design + fast update o Product segmentation management o Contract manufacturing; o High quality control o Online Ads; o Co- Ads with mobile phone companies; o Contract service o B2B- direct sale o CRM management o Supply/ demand management
  32. 32. Public segment Product Design Manufactur ing Product distribution Product Ads Service o In house design o Outsource ID design o Collect excellent design from online o Contract manufacturing; o High quality control o Online Ads; o Printing Ads on IT newspaper and magazines; o Contract service o B2B: o Collaborate with telecom carriers; o Direct sale to public place owners; o Retail o Contract regional agent o Flagship stores o Online selling
  33. 33. Licensing out Technical support Licensing authority Collaborati on o Free support to third party developers and companies; o Only charge licensing fee to the well developed LIFI business; o Default free of charge to third party developers and small business; o Strategic collaboration with companies who identified high potential LIFI business ; o Acquisition if necessary;
  34. 34. Apple Inc. Retailers Third party developers Individual customers Transmitter Receiver Router OEM Flagship shop Regional distributor Telecom carriers Public place owners Governments Logistic Chipset Third party companies Other branded companies Licensing out Technical support Chipset Factory
  35. 35. Li-Fi in National Defense Technology Adoption Cycle B2G Business  Sell products to governments with a sales force: low volume but high gross margin • Chipset/ Transmitter /Receiver/ Router  Charge for Value added Services: low charge, but high gross margin and long term • Consultation/ Research service on network protection and interception of opponents network
  36. 36. Li-Fi for Mobile Devices Technology Adoption Cycle B2B Business  Sell chipset to mobile phone companies with a key customer management team;  Low gross margin, but high volume;
  37. 37. Technology Adoption Cycle Li-Fi in Public Areas B2G business  Support governments with zero net profit;  Gain profit by defense products and value added services; B2B business  Sell routers to telecom companies with a sales force;  Sell solutions to the large organization or office buildings B2C Business  Sell router and receiver to home users  Low gross margin, but high volume
  38. 38. Technology Adoption Cycle Licensing out to find more opportunities B2B Business  Manage the licensing out by technical teams;  Fixed licensing fee or profit dividend;
  39. 39. Brand building Multi- Products Product marketing IP Protection Standard competition
  40. 40. o Proactively improve technology and apply relevant IPs o Strong IP protection in chipset and router business; o Cultivate other LIFI markets with weak licensing protection; Brand building Multi- Products Product marketing IP Protection Standard competition
  41. 41. Open collaboration to win standard war o Build relationship with governments, and try to impact national standard; o Build alliance with MNCs; o Win support from SMBs; o Attract third party developer with free technical support; o Strategic collaboration with third party companies for new LIFI business; Brand building Multi- Products Product marketing IP Protection Standard competition
  42. 42. Open collaboration to win standard war o Build relationship with governments, and try to impact national standard; o Build alliance with MNCs; o Win support from SMBs; o Attract third party developer with free technical support; o Strategic collaboration with third party companies for new LIFI business; Brand building Multi- Products Product marketing IP Protection Standard competition
  43. 43. o In-house design o Contract manufacturing o Contract distribution o Contract service o Quality controlBrand building Multi- Products Product marketing IP Protection Standard competition
  44. 44. o Focus on hardware + Fast update o Develop complementary assets o Leverage third party resources Brand building Multi- Products Product marketing IP Protection Standard competition
  45. 45. o Zero profit of public products from governments to win defense product orders; o Low price for short term + higher price for Updated Products o Provide very competitive pricing for long term contract o Internet marketing Brand building Multi- Products Product marketing IP Protection Standard competition
  46. 46. conclusion
  47. 47. Li-Fi for Mobile Devices Li-Fi Hotspots in Public Areas Superior surfing experience More LIFI features on mobile device Network effect between more LIFI featured mobile devices and existed LIFI spots More & superior LIFI Hot Spots Network effect between more LIFI hot spot and LIFI featured mobile devices
  48. 48. Li-Fi facilitates National Defense Li-Fi for Mobile Devices Li-Fi in Public Areas Co –evolutionary Strategy Virtuous Circle Licensing
  49. 49. Value Proposition Faster speed Large bandwidth Information security Power saving Customer Segmentation National defense Mobile device Public area Scope of Activities Design & production Service Marketing & promotion Method of Value Capture Markup & production Fees of technical service Licensing fees Strategic Control IP protection Standard competition Brand building Multi- differentiation Marketing strategy
  50. 50. Under water communication Smart traffic light control system Geographic-based service RF sensitive area: airplane, museum, operation room, etc. Vehicle-to-vehicle communication
  51. 51. Q & A

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