SV-11 Industry Partnershps Cascade Design

921 views
794 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
921
On SlideShare
0
From Embeds
0
Number of Embeds
144
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • at
  • at
  • Water is delivered in very different ways
  • Based on cost data from Kenya/Ghana (4 sample points of salt, 1 sample point of battery charge)
  • What makes a good MFI product? Would this be high risk or low risk? During phase 2 we need to validate and refine these assumptions (# of customers and demand).assumptions: Cost of salt per kg$0.27; Salt used per batch (500mL) of BRINE solution =(kg)0.075;Cost of salt per batch (500mL) of BRINE solution=$0.00027;1 batch (500mL) of BRINE treats 1999.2 Litres of water;Cost per battery recharge$1.33; Battery recharge allows treatment of 32,000 Litres; Exchange Rate (KES/USD)75; Average daily demand for water (in litres)= 2,000; Operating days per month=26.1; # Runs of chlorinator per month= 217.3
  • Based on cost data from Kenya/Ghana (4 sample points of salt, 1 sample point of battery charge)
  • What makes a good MFI product? Would this be high risk or low risk? During phase 2 we need to validate and refine these assumptions (# of customers and demand).assumptions: Cost of salt per kg$0.27; Salt used per batch (500mL) of BRINE solution =(kg)0.075;Cost of salt per batch (500mL) of BRINE solution=$0.00027;1 batch (500mL) of BRINE treats 1999.2 Litres of water;Cost per battery recharge$1.33; Battery recharge allows treatment of 32,000 Litres; Exchange Rate (KES/USD)75; Average daily demand for water (in litres)= 2,000; Operating days per month=26.1; # Runs of chlorinator per month= 217.3
  • SV-11 Industry Partnershps Cascade Design

    1. 1. Industry Partnerships<br />Cascade Designs Inc.<br />Day One Response, Inc.<br />Sustainable Vision Workshop<br />3/22/2011<br />
    2. 2. <ul><li>Background: Cascade Designs Inc. (CDI)
    3. 3. Background: Day One Response
    4. 4. Case Study: SE200 Electrochlorinator
    5. 5. Partnering Strategies
    6. 6. Case Study: Day One Waterbag
    7. 7. Partner Selection Criteria and Pitfalls
    8. 8. Conclusions</li></ul>Agenda<br />
    9. 9. Under the brand names Mountain Safety Research (MSR), Platypus, and Therm-A-Rest we are recognized as the technical and market leader in hydration systems, hand-held water purifiers, lightweight camp stoves, cookware, sleep pads, and snowshoes.<br />MSR & SweetWaterPurifiers<br />MSR Tents<br />MSR Stoves<br />Denali Snowshoes<br />Therm-A-Rest Sleep Pads<br />Platypus Hydration Systems<br />
    10. 10. Cascade Designs Inc. (CDI)<br />Core Strengths<br />Over 40 years of experience in developing innovative commercial and military products.<br /><ul><li>Manufacturing expertise in a wide range of disciplines and technologies – metal forming and fabrication, sewing, RF welding, thermoforming, and final assembly. In-house microbiology lab.
    11. 11. Cascade Designs has over 5,000 Outdoor retail accounts in the U.S. and sales agents in over 40 countries around the world.
    12. 12. Existing supplier of the Army and Marine Corps’ standard-issue sleep pad, water purifier, camp stove, snowshoes, and dry bags.</li></li></ul><li>Background<br /><ul><li> Cascade Designs’ core strength is bringing innovative new technologies to market. [i.e. – “Crossing the Valley of Death”].
    13. 13. On the commercial side of our business, market pressures require us to have something new at the trade show every year.
    14. 14. Government funded development efforts enable us to “swing for the fences”, and partner with universities and technology firms to research cutting-edge technologies.</li></ul>$<br />$<br />Valley of Death<br />Product Revenue<br />DoD Funding<br />
    15. 15. Day One Response<br />Background<br />“Providing clean drinking water is our #1 challenge in disaster zones.” -Steve Rieve, American Red Cross<br />Cal Poly State University & DayOne Response, Inc.<br />
    16. 16. The DayOneWaterbag™<br />All essential functions in one unit:<br />Easy Collection <br /> Under difficult conditions<br />Transport <br /> Backpack straps are comfortable<br />Treatment <br /> Dirt, Cysts, viruses, bacteria removed<br />Storage and Dispensing<br /> closure prevents re-contamination<br />
    17. 17. Strategic Partnerships<br /><ul><li>Cal Poly State University R&D (2007-present)
    18. 18. DayOne Response, Inc. founded April 2010 with guidance from Innovation Quest and NCIIA
    19. 19. Partnership with Cascade Designs, Inc. and US Naval Facilities Engineering Command
    20. 20. Working with P&G’s Children’s Safe Drinking Water program to expand the use of PUR in disasters and other development settings.
    21. 21. Continued partnership with California Polytechnic University on R&D for current and future projects</li></li></ul><li>Case Study: Electrochlorinators<br />
    22. 22. CDI Water Purification Technologies Map<br />Access to cutting-edge technologies has given CDI the opportunity to evaluate the full spectrum of water purification technologies for use in the Base of the Pyramid markets.<br />Applied Energy<br />Physical Separation<br />Chemical Treatment<br />MIOX<br />PATH<br />Particle Filtration (Sieves)<br />Oxidant Dosing<br />Sefar<br />MIOX<br />Sweetwater<br />Electro-Chlorination<br />Lemelson<br />Quartek<br />Laird- Norton<br />Metal Ion Treatment<br />Hollow Fiber<br />MSR<br />One Drop<br />Gates<br />Apaclara<br />PATH<br />Ceramic Candle Filters<br />Forward Osmosis<br />Capacitive De-ionization<br />TDA <br />Research<br />Oasys<br />MSR<br />HTI<br />MM Media<br />Resintech<br />Solar Radiation<br />Ion Exchange<br />Adsorption<br />Puralytics<br />Purolite<br />Calgon<br />ORICA<br />Biomin<br />Cal Poly University<br />Halogenated Resin<br />Precipitant Dosing<br />Halosource<br />Light Year<br />
    23. 23. Background<br />Water Purification Markets<br />Outdoor<br /><ul><li>CDI has over a 35% share of the outdoor water purification market.</li></ul>Military<br /><ul><li>CDI is the supplier of the Marine Corps’ standard-issue Individual Water Purifier System.
    24. 24. CDI has funded R&D efforts to develop next generation on-the-move water purification systems for the Army, Marine Corps, and Special Forces. </li></ul>Developing World<br /><ul><li>CDI is providing lab and technical support on PATH’s Safe Water effort.
    25. 25. Funded development projects include the SE200 Electrochlorinator (Africa) and Household Water Treatment System (India).</li></li></ul><li>Background<br />CDI History in Emerging Markets<br />2004 Tsunami: Lessons Learned<br /><ul><li>Philanthropy wasn’t enough.
    26. 26. Products need to be designed for the end user.
    27. 27. Logistics are critical.
    28. 28. Decision to apply CDI’s resources toward developing innovative technical solutions to provide access to safe water.</li></li></ul><li>Background<br />CDI Developing World Efforts<br /><ul><li>Waterborne diseases are a major global health problem.
    29. 29. Seattle is a center for global health initiatives (Gates Foundation, PATH, World Vision, etc.).
    30. 30. DoD-funded efforts have given CDI access to cutting-edge water purification technologies.
    31. 31. CDI is trying to determine if we can contribute in developing world markets. [Can we leverage the strengths that made us a leader in Outdoor and Military water purification?].</li></li></ul><li>Technology<br />Electrochlorinator uses electricity to convert salt into a powerful disinfectant.<br /><ul><li>Early development work funded by DARPA.
    32. 32. MSR MIOX Purifier launched to the outdoor market in November 2003. Became the #1 selling Purifier in its first year on the market.
    33. 33. Support from PATH and the Lemelson Foundation enabled CDI to adapt the electrochlorinator technology for developing world applications.</li></li></ul><li>SE200 Electrochlorinator<br />Advantages<br /><ul><li>Supply chain, storage, and transportation benefits.
    34. 34. The capital and operating costs are much lower than other small community water purification options.
    35. 35. Disinfectant is created fresh for each use. [No shelf life issues].
    36. 36. “Smart circuit” technology minimizes the potential for operator error. </li></li></ul><li>Connections<br />Cal Poly Electrochlorinator Project<br /><ul><li>The team at the Naval Facilities Engineering Service Center (NFESC) has helped CDI establish relationships with a wide range of government and industry partners.
    37. 37. Bill Varnava, the project officer on several of CDI’s military funded R&D efforts, is a Cal Poly alumni, and recommended that CDI consider working with the University on a Senior Project.</li></ul>Naval Base Ventura County (Port Hueneme, CA)<br />The Seawater Desalination Test Facility (SDTF) provides research, development, test and evaluation, and training support for water purification equipment. <br />
    38. 38. Senior Design Project<br />Cal Poly Electrochlorinator<br />
    39. 39. Benefits<br />Students<br /><ul><li>Gained experience in designing an innovative water purification product.</li></ul>Cal Poly<br /><ul><li>Developed relationships with industry and government contacts.</li></ul>Cascade Designs<br /><ul><li>Interaction with students forced the CDI design team to reflect on the use modes and design parameters.
    40. 40. Students explored alternative design concepts and technical approaches.
    41. 41. Student team investigated innovative manufacturing processes.
    42. 42. Success on the Waterbag and Electrochlorinator projects have enabled CDI to expand our involvement with Universities.</li></li></ul><li>Success Factors<br />Cal Poly Electrochlorinator Project<br /><ul><li>Project was relevant within Cascade Designs. [Our design effort with PATH was done concurrently].
    43. 43. Strong project manager at Cascade Designs. [Design lead worked with the student team]. Willingness to invest time and resources to support the student effort.
    44. 44. Cal Poly students were smart and motivated to succeed.
    45. 45. Professor McFarland provided solid coaching. [Emphasis on functionality and manufacturability]. </li></li></ul><li>Seed Money<br />Lemelson SE200 Grant<br />What did the Lemelson Foundation grant enable the PATH/CDI team to accomplish?<br /><ul><li>Adapt the MIOX electrochlorinator technology for humanitarian and disaster relief applications.
    46. 46. Study the requirements for rural small-community water purification systems. Gather field data.
    47. 47. Evaluate sustainability (micro-finance water kiosk entrepreneur economic model).
    48. 48. Leverage existing government funding. [Evaluate new materials, power supply options, etc.].
    49. 49. Position the CDI/PATH/Day One team to participate in new humanitarian and disaster relief efforts. [Operation Crimson Viper].
    50. 50. Help CDI explore partnership opportunities with Universities. [Cal Poly, UC Berkeley, UW, etc.]</li></li></ul><li>Partnering<br />
    51. 51. 5% Technology - 95% All the other stuff<br />Business models<br />Cultural factors<br />User experience<br />Financing<br />Ease-of-use<br />Distribution<br />Supply chain<br />Maintenance<br />Cost<br />
    52. 52. Technology Transition<br />Engineering<br />Marketing<br />Sales<br />Admin.<br />Operations<br />Quality<br />
    53. 53. Technology Scale-Up<br />Cascade Designs Inc.<br />
    54. 54. Case Study: DayOne Waterbag, Scaling and Partnerships <br />Iterations<br />(2007-2010)<br />Product<br />(2011)<br />Concept <br />(2007)<br />
    55. 55. Waterbag 2007-2009 <br />Nicaragua 2009<br />
    56. 56. Waterbag 2010-2011 <br />Crimson Viper, Thailand, July 2010<br />
    57. 57. Waterbag 2010-2011 <br />Haiti, March 2011<br />
    58. 58. Waterbag Next Steps… <br />
    59. 59. Partnering<br />Selection Criteria<br />What factors does Cascade Designs consider when evaluating potential industry or University partners?<br />Technical Advantage – Does the product concept have a competitive advantage over the existing COTS products.<br />Passion – Does this team have the vision, talent and commitment to get the job done?<br />Business Compatibility – Are the business interests aligned?<br />Synergy – Does this opportunity fit in with other existing development projects or strategic objectives?<br />Distribution Fit – Can we sell the products resulting from this effort into one of our existing markets?<br />Manufacturing Fit – Can we produce the future products with our existing manufacturing capabilities?<br />I.P. Protection – Is defensible I.P. protection available?<br />Risk – What are the potential risks vs. rewards?<br />Operation Crimson Viper Field Testing<br />
    60. 60. Pitfalls<br />Inventors & Start-ups<br />What are some of the factors that often cause inventors and start-up companies to struggle?<br /><ul><li>Fail to partner with other organizations. [Try to do it all themselves].
    61. 61. Lack a clear understanding of the target markets and competitive landscape.
    62. 62. Unrealistic expectations regarding the value of their idea. [Std. royalty Outdoor market: 2-5% net profits].
    63. 63. Unable to identify a “Champion” within their key distribution channels. [Believe that a better mousetrap just sells.].
    64. 64. Funding. [Dilution of ownership, cash flow].</li></li></ul><li>Thanks<br />
    65. 65.
    66. 66. Next Steps<br /><ul><li>Need to gain a better understanding of the HADR user needs and product requirements.
    67. 67. Need to identify which DoD/government agencies are relevant to our cause. [“Map the foodchain”].
    68. 68. Set up meetings with contacts in key HADR agencies. Brief them on our active and planned development projects. [“Connect the dots”].
    69. 69. Find the best ways to channel our strong corporate and political support.
    70. 70. Find new ways to get our “80% solution” product concepts out in the field for market testing.</li></li></ul><li>?<br />Background<br />What all the Lemeslon Funding allowed us to do<br />
    71. 71. Economics of the SE200<br /><ul><li>Resupply items:
    72. 72. 30 kg salt per 40,000 liters of water ($4)
    73. 73. charge 12V car battery each 40,000 liters ($1.30 at a charging station1)
    74. 74. Raw water
    75. 75. Capital costs:
    76. 76. SE200 ($100 wholesale cost target)
    77. 77. 12V 80 Amp-hour battery ($100)
    78. 78. Total Capital Costs: $200
    79. 79. Operational cost per 1000 liters: $0.13</li></ul>1 Electricity battery charging cost is based on charging station price. It would be less if the operator has access to electricity and does not need to go to a charging station. <br />
    80. 80. Development Business Model (Aquaya)<br />
    81. 81. Comparison of oxidants (operational costs)<br />
    82. 82. Field Trials<br />December, 2008: Kenya <br />Kenya, installation of a 20 L electrochlorinator.<br />Collect initial operator/training feedback<br />June, 2009:Kenya<br />Kenya, revisit 20L installation<br />Hold focus groups on 200L alpha prototype<br />Collect qualitative feedback<br />Spring/Summer, 2010: Ghana, Kenya, Zimbabwe<br />Set up first SE200 water kiosks<br />Carry out quantitative microbial studies in households<br />Collect operator and customer feedback<br />Develop preliminary financial model<br />July, 2010: Disaster Response Exercise in Thailand<br />Simulated disaster scenario <br />Train Thai Marines to operate the SE200<br />Compare to 5 other disaster relief water technologies<br />
    83. 83. Partnership Opportunities<br /><ul><li> Strategic alliances are favored by DoD R&D funding patrons (ONR, DARPA, etc.). [CDI hunts most effectively in packs].
    84. 84. CDI and PARC have complimentary core strengths.
    85. 85. CDI’s in-house manufacturing engineering, prototyping and LRIP production capability can compliment PARC technology transition efforts.
    86. 86. CDI can serve as a Prime contractor on collaborative development efforts (SBIRs, etc.).
    87. 87. CDI has the brand recognition, marketing expertise, and distribution network to bring PARC technologies to the Outdoor and military markets. </li></li></ul><li>Economics of the SE200<br /><ul><li>Resupply items:
    88. 88. 30 kg salt per 40,000 liters of water ($4)
    89. 89. charge 12V car battery each 40,000 liters ($1.30 at a charging station1)
    90. 90. Raw water
    91. 91. Capital costs:
    92. 92. SE200 ($100 wholesale cost target)
    93. 93. 12V 80 Amp-hour battery ($100)
    94. 94. Total Capital Costs: $200
    95. 95. Operational cost per 1000 liters: $0.13</li></ul>1 Electricity battery charging cost is based on charging station price. It would be less if the operator has access to electricity and does not need to go to a charging station. <br />
    96. 96. Development Business Model (Aquaya)<br />
    97. 97. Comparison of oxidants (operational costs)<br />
    98. 98. Field Trials<br />December, 2008: Kenya <br />Kenya, installation of a 20 L electrochlorinator.<br />Collect initial operator/training feedback<br />June, 2009:Kenya<br />Kenya, revisit 20L installation<br />Hold focus groups on 200L alpha prototype<br />Collect qualitative feedback<br />Spring/Summer, 2010: Ghana, Kenya, Zimbabwe<br />Set up first SE200 water kiosks<br />Carry out quantitative microbial studies in households<br />Collect operator and customer feedback<br />Develop preliminary financial model<br />July, 2010: Disaster Response Exercise in Thailand<br />Simulated disaster scenario <br />Train Thai Marines to operate the SE200<br />Compare to 5 other disaster relief water technologies<br />

    ×