Printable Battery Technology: a business model

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These slides use ideas from my (Jeff Funk) class to develop a business model for printable battery technology. The increasing use of wearable electronics such as Google Glasses and “electronic tattoos” has increased the demand for smaller batteries that can be added to these glasses or tattoos. Based on Zinc, these batteries can be printed onto a thin substrate. These slides describe the customers for this technology and the value propositions for these customers, along with other aspects of a business model.

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Printable Battery Technology: a business model

  1. 1. Printable Battery Technology Lee Yang Sheng Lim Chau Hwee Alwyn Tay Wei Yi
  2. 2. Scope  Wearable electronics market trend  Imprint Energy’s Business Model  Analysis of Business Model  Recommendations  Conclusion
  3. 3. Wearable electronics market trend
  4. 4. Wearable electronics
  5. 5. Wearable electronics
  6. 6. Coin cells may be Sufficient for Watches, but not for Wearable Electronics!
  7. 7. Printable Battery  Imprint Energy  Founded in 2010  Develop zinc-based rechargeable battery technology (ZincPoly™)
  8. 8. New applications and value propositions for printable batteries
  9. 9. Value propositions for wearable electronics  Ultra thin  Flexible  Recyclable  Easy to manufacture  Rechargeable
  10. 10. Thinner batteries are needed for new applications  Ultra thin Thickness of Battery (mm) 10 Phones, laptops Calculator, Watches 1 RFID smart card, Electronic paper 0.1 0.01 Conformal electronics, Wearable electronics
  11. 11. Value Proposition  Ease of manufacture  Low packaging required  Affordable  Dispenser printing system:  5‐300μm size factors  Ambient temperature process  Low waste  Fast, scalable, economical  Continuous assembly processing
  12. 12. Printing Technology
  13. 13. Value Proposition  Rechargeability  Other zinc-based printable batteries are non-rechargeable which limits their applications  Imprint Energy uses a solid gel polymer electrolyte
  14. 14. Thin-film and printed battery market  $5.6 billion by 2015 (NanoMarkets)  Out of this, $2.5 billion will be non-lithium batteries Annual Growth Rate 70% 60% 58.40% 46.10% 50% 37.90% 40% 35% Smart cards RFID tags 30% 20% 10% 0% Medical Implantables MEMS, flexible paper, cosmetics and E-paper
  15. 15. Customer Selection  Manufacturers  DNP (Dai Nippon Printing)  Soligie  Collaborators  Thinfilm  MC10 (Bio electrionics sensors)  Wearable electronics manufacturers  Nike  Samsung
  16. 16. Customer Selection  Gigantic wearable consumer electronics market  To exploit the design advantages of the new batteries (eg. Nike’s FuelBand and the FitBit line)  Large volume Nike Revenue (in $billion) in 2012 Equipment, 1.2 Others, 0.1 Apparel, 6.3 Footwear, 13.4
  17. 17. Customer Selection • Bendable Electronics • LG and Samsung • Flexible phones and watches
  18. 18. Customer Selection  Bioelectronics  MC10    Medical patch Digital Health Conformal Electronics
  19. 19. Customer Selection • Powered smart card • Oberthur Technologies • Advanced security for e-banking and e-shopping • A single card for payment, authentication and ‘on the spot’ information • Stand-alone solution, no card reader required
  20. 20. Customer Selection  Health products  Pills with smart sensors  Smart bra
  21. 21. Analysis of value proposition  Zinc batteries are already present in the market but not widely adopted  Not flexible and non-rechargeable  Competitors will erode profits to be made  Large capital needed to scale manufacturing
  22. 22. Competitor 1: Blue Spark Technologies  Carbon-Zinc printable battery  Value proposition  Cost effective  Attractive form factor  Easy integration  Green and disposable  Customer selection  Battery - Assisted RFID  RF-Linked Sensors  Transdermal Patches  Powered Cards  Interactive Printed Media
  23. 23. Competitor 2:  Rechargeable Lithium printable battery  Value proposition  Ultra thin  Environmentally friendly  Long cycle life  Customer selection  Collaboration with ST microelectronics
  24. 24. Strategy Canvas 12 10 8 6 4 2 0 Imprint Energy Blue Spark Front Edge PowerPaper Lithium Polymer
  25. 25. Energy Density vs Power Density
  26. 26. Comparison data against competitors Parameters Front Edge Technologies (Lithium) Blue Spark Technologies (Zinc-carbon) Imprint Energy (Zinc-MnO2) Traditional laptop battery (Lithium) Energy Density 100 – 150 Wh/kg 125 Wh/kg 130 Wh/kg 128 - 150 Wh/kg Temperature Range -40 to 80 oC -18 to 55 oC -20 to 70 oC –20 to 60 °C Battery Life (Cycles before degradation) > 1000 ~ 25 cycles > 100 cycles 400 – 500 cycles Fabrication Process Vacuum Deposition SEI formation Partially Printed Printed Vacuum Deposition SEI formation Safety Concerns Reactive, Nonvolatile Semi-reactive, volatile Non-reactive, nonvolatile Reactive, Nonvolatile
  27. 27. Analysis of value proposition  Zinc batteries are already present in the market but not widely adopted  Competitors will erode profits to be made  Large capital needed to scale manufacturing
  28. 28. Scope of Activity  Versatile and scalable manufacturing process  Make use of a traditional technology, screen printing.  Outsource manufacturing of batteries to printing companies  To ramp up manufacturing to a large commercial scale in a few years  Will not build their own factories  Work closely with manufacturing partners
  29. 29. Value Chain • Vertical Disintegration Imprint Energy R&D Collaborators Raw material supplier Printing Manufacturer Outsourced partners / Licensee End product manufacturer Distribution and sales
  30. 30. Method of value capture  Licensing  To license our technology to collaborators to produce printable batteries  Pure licensing model may lead to a slow growth  Battery sales  Mass produced batteries of standard shapes/sizes
  31. 31. Cost structure  Low cost active materials  High volume structure to enable economies of scale
  32. 32. Cost Structure Item Material Printing / Manufacturing Cost for printable battery • $2.07 per Wh • $3.48 per 1400 mAh (Google Nexus One battery capacity)1 • 100 million batteries / printer • $25k - $800k / printer Selling price for Google Nexus One lithium ion battery 2 : $5.25 (1400mAh) 1 2 Obtained from Imprint Energy Obtained from http://www.isuppli.com/Teardowns/News/Pages/Google-Nexus-One-Carries-$17415-Materials-Cost-iSuppli-Teardown-Reveals.aspx
  33. 33. Method of strategic control  Intellectual Property  Patents on solid zinc electrolyte which enable rechargeable battery  Patents on methods of manufacture  Filed provisional patent September 2010
  34. 34. IP Strategy • Prove the feasibility of the innovation Phase 1 Phase 2 • Extract value out of IP • Push the performance of the battery • Erect barriers to entry Phase 3
  35. 35. Method of strategic control  Lack of complementary assets  Sales and Marketing expertise  Distribution channels  IT infrastructure  Low market power against owners of complementary assets
  36. 36. Innovation value capture matrix Core idea adapted from Teece, 1986
  37. 37. Recommendation  Strategic control  Contracts to bind manufacturers and end products distributors  Develop more complementary assets
  38. 38. Contractual agreements  Imprint energy holds strong IP rights  Low risk of imitation  Contracts to be designed to maximize profits from innovation  Disruptive Innovation  Prove the feasibility and value of innovation
  39. 39. Complementary Assets  Custom designed batteries  Key components of wearable electronics  Different applications requires  Different shape/size  Different packaging  Different capacity
  40. 40. Complementary Assets  Custom designed batteries  Key components of wearable electronics  Network effects  Virtuous cycle  Develop capabilities to further improve design of wearable electronics in the market and enhance their performance Custom designed batteries enable novel and innovative products Revenue pumped into R&D to improve design Higher demand for innovative end user products Higher revenue generated from battery sales More products sold increases exposure of battery More wearable electronics manufacturers interested
  41. 41. Recommendation  Value Chain  Custom designed solutions to enable novel devices to launch into market  Leverage printing partners to scale rapidly without large capital investment  Continuous R&D to enhance products to improve sales  Imitate Qualcomm model:
  42. 42. Recommendation  Value Chain  Custom designed solutions to enable novel devices to launch into market  Leverage printing partners to scale rapidly without large capital investment  Continuous R&D to enhance products to improve sales Printed and thin media - Enabling Conventional Batteries - Early Adopters - Enhancing - Billions of devices - Thin format progress - Billions of devices $250MM - $1.3 BN > $2BN
  43. 43. Recommendation  Method of value capture  Adopt a new licensing model working with multiple partners getting upfront fee for access to design (Imitate ARM model)  Revenue from product manufacturers by offering custom designed solutions  Continue to focus on low cost high volume structure by driving capabilities of manufacturing partners
  44. 44. Recommendation  Customer selection  Focus on new and upcoming technology industry  Health and wellness wearable products  Wireless sensor network (Internet of Things)  $2 billion market by 2021 (IDTechEx)  To be present in majority of electronic devices
  45. 45. Quantified Self and Smart Homes
  46. 46. Smart World
  47. 47. Recommendation  Value proposition  Focus on sustainability  Continuous R&D improvement to push the boundaries of battery technology  Working with partners to enable innovation in electronics devices
  48. 48. Environmental Impact Assessment "Sustainable Batteries", Assessment of Environmental Technologies for Support of Policy Deccision
  49. 49. New Innovative devices
  50. 50. Summary Customer Selection Scope of Activities Thin Large Wearable Electronics firms IP Strategy Customized Solutions Complementary Assets R&D Novel technologies Strategic Control Licensing Value Proposition Method of Value Capture Distribution Rechargeable Sustainable Safe Wireless Sensors / Smart cities Sales and Marketing
  51. 51. Screen Printing Process  Similar to old-fashioned silk-screening where material is deposited in a pattern by squeezing it through a mesh over a template Obtained from http://www.hdmstuttgart.de/international_circle/circular/issues/11_01/ICJ_04_32_ wendler_huebner_krebs.pdf

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