TruTouch Alcohol Detector: a business model


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These slides use ideas from my (Jeff Funk) class to develop a business model for the TruTouch Alcolol Detector. This detector uses near-infrared spectroscopy to measure the amount of alcohol in a person’s blood. Early adopting customers include safety-critical workplaces and businesses that sell alcohol. The value proposition includes fewer workplace accidents and fewer sales of alcohol to intoxicated individuals. TruTouch can profit from this product through both selling and leasing the product and using its patents to prevent copiers from entering the market.

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TruTouch Alcohol Detector: a business model

  1. 1. TruTouchTM non-invasive alcohol detection MT4002 Charmaine Kim Kivaan Lingjun
  2. 2. 1. Introduction 2. Value Proposition &Customer Selection 3. Scope of Activities 4. Value Capture 5. Strategic Control
  3. 3. 1. Introduction 2. Value Proposition &Customer Selection 3. Scope of Activities 4. Value Capture 5. Strategic Control
  4. 4. Alcosense TM Trutouch Optical alcohol detection device 2500
  5. 5. Alcosense TM Trutouch 2500 Technology ● Near-infrared spectroscopy ● Scan through skin ● Detects identity using unique biometrics of each individual
  6. 6. 1. Introduction 2. Value Proposition &Customer Selection 3. Scope of Activities 4. Value Capture 5. Strategic Control
  7. 7. Overview of Customer Selection e.g. Europe, US, Australia, Russia Licensing Safety-Critical Workplaces Product Sales Regular Workplaces Liquor Point of sale Vehicle Manufacturers
  8. 8. Safety-Critical Workplaces 40% of workplace accidents involve alcohol. Current detection method is inadequate.
  9. 9. Safety-Critical Workplaces Usage: Entry-point testing for workers Bar entry to alcohol-impaired workers Biometric check-in and security clearance
  10. 10. Safety-Critical Workplaces Reduce injuries, costs and downtime resulting from alcoholrelated accidents Improve safety record to help clinch business deals and meet government regulations Identity Testing Value Proposition
  11. 11. Safety-Critical Workplaces Safety Managers Operation Manager Head of Human Resources
  12. 12. Regular workplace Alcohol-related productivity losses cost Europe and US more than 150bn per year Negatively affected co-workers relationships
  13. 13. Regular workplace Usage: Entry-point testing for workers Supervisors will be notified Deters workers from reporting to work drunk or hangover.
  14. 14. Regular workplace Reduce costly mistakes Improve employee productivity and reduce absenteeism Value Proposition Reduce alcohol related healthcare and insurance costs
  15. 15. Regular workplace Head of Human resources
  16. 16. Liquor point-of-sale Establishments Liquor establishments can if caught serving alcohol to an intoxicated person
  17. 17. Liquor point-of-sale Establishments Usage Test patrons who appear intoxicated to determine whether or not to serve more alcohol to them Value Proposition Protect themselves against liability and legal action
  18. 18. Liquor point-of-sale Establishments Restaurant Bar &Pub Convenient stores
  19. 19. Vehicle Manufacturers Usage In-vehicle alcohol testing; linked to ignition control
  20. 20. Vehicle Manufacturers Value Proposition Additional feature to differentiate vehicle to final customer • Company Purchasing dept • Concerned family members • Car rental companies Safety of vehicle user and third parties
  21. 21. Strategic comparison of customer segments Workplace Liquor POS Vehicle Size of market Large Moderate Large Barriers to entry High Low High Govt support Moderate Moderate High Competitors None Breathalyser (Coin-operated) Breathalyser; New tech Suitability of TruTouch High Too costly at low volumes Still in R&D 1st focus 2nd focus
  22. 22. Non-competitors Blood/Hair/Urine/ Saliva testing • Long processing time Current competitor Visual Observation & Questioning • Not accurate • Not comprehensive • No deterrence effect Future Competitors Breathalyzer Breath testing • Accurate • Short processing time • Invasive Scram CAM Transdermal continuous testing • Accurate • Moderate processing time • Invasive
  23. 23. Strategy Canvas - Workplace High TruTouch Breathalyzer Low Scram CAM
  24. 24. Strategy Canvas - Workplace High TruTouch $0.01 /test Breathalyzer $0.25 /test Low Scram CAM $1.50 /test
  25. 25. Strategy Canvas - Workplace High TruTouch 8 sec Breathalyzer 14 sec Low Scram CAM 25 sec
  26. 26. Strategy Canvas - Workplace High TruTouch Breathalyzer Low Scram CAM
  27. 27. Strategy Canvas - Workplace High TruTouch 96 % Breathalyzer 96 % Low Scram CAM ?
  28. 28. Strategy Canvas - Workplace High TruTouch Integral Breathalyzer Face recognition Low Scram CAM None so far
  29. 29. Able to test all workers daily Doubles as identification testing Fast Dignified Accurate Cost-effective What makes TruTouch special?
  30. 30. 1. Introduction 2. Value Proposition &Customer Selection 3. Scope of Activities 4. Value Capture 5. Strategic Control
  31. 31. Scope of Activities Manufacturer product R&D $ product TruTouch rights $$ Vehicle Manufacturers $$ product Distributor $$$ Consumers
  32. 32. Scope of Activities Manufacturer Distributor $ $$$ $$ R&D Consumers Aftercare Service Service TruTouch rights $$ $$ Vehicle Manufacturers (R&D) Reputation & regulations Data Reputation & regulations Marketing & Lobbying Government Non-profit
  33. 33. Relationship with Distributor TruTouch current distributors • Distributors of alcohol detection devices Our Proposed Distributors • Access control • Doors and locks
  34. 34. Relationship with Distributor Partnership TruTouch Access control company Ensure ease of integration Leverage on customer base of distributors TruTouch train distributors in basic after-sales support Combined sales packages: door locks plus TruTouch
  35. 35. TruTouch and R&D • TruTouch is an R&D and integration firm • In-house hardware and software design • E.g. •Alcohol use •Biometric attendance
  36. 36. Relationships in R&D • Cooperation with Takata for development of invehicle alcohol testing Takata • Auto-parts firm Aim: “a day with zero fatalities due to traffic accidents” • Well-aligned objectives
  37. 37. Relationship with government/non-profit TruTouch lobby government for tighter workplace and vehicle alcoholism control • Supported by data from customers • Collaborate with NGOs • Influence the tightening of regulatory changes • Contact with opinion leaders in society • USD $3 mil in research grants
  38. 38. 1. Introduction 2. Value Proposition &Customer Selection 3. Scope of Activities 4. Value Capture 5. Strategic Control
  39. 39. Value Capture Leasing or sale product Consumers Maintenance costs waived for leasing but not for sale money right Royalties Vehicle Manufacturers money right Royalties money Manufacturers of access control systems
  40. 40. 1. Introduction 2. Value Proposition &Customer Selection 3. Scope of Activities 4. Value Capture 5. Strategic Control
  41. 41. Strategic ControlKey means of strategic control: Patents Patents covering the technology and different applications Technology to determine analyte properties and identity of subject Application in an interlock/control system for vehicles or machinery Entire system of control
  42. 42. Strategic Control• TruTouch can use real data from workplaces and point of sale venues to lobby for tighter government regulations on alcohol, and also to apply for government research grants • Real data also allows TruTouch to present a stronger business case to potential customers
  43. 43. Strategic ControlExclusive relationship with • Access control/ door and lock companies • Takata auto parts manufacturers Brand name • Frequent workplace use will expose public to TruTouch • Known to opinion leaders in government
  44. 44. Strategic Control- Identify strategic direction for R&D Partnership with vehicles company for joint projects Government R&D grants Strengthen relationship with government In-vehicle & Increased mobility