Biz Model for Baxter's Robots


Published on

These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Baxter’s unique robot. Its robot is much easier to teach than is other robots because of its force feedback sensors and the easy motion of their arms. These sensors also cause Baxter’s robots to stop when they feel resistance and thus are much safer than are other robots and do not require protective screening. Baxter’s robots are also lighter and cheaper. We recommend that Baxter target high mix parts fabrication and assembly and the external development of new end-effectors that can broaden the market for Baxter’s robots.

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Biz Model for Baxter's Robots

  1. 1. baxter™ Business Model for The Unique Robot with Unique Features Wong Kim Jyh A0098426U Cho Eng Keong Benjamin A0098460X Loke Kah Yeong Jeremy A0098545N Chong Meiyi A0035569W Tan Wei Chin A0117107R Teo Seow Kian A0098492M Presented by Team Robotics
  2. 2. Outline Customer Segment Introduction Value Proposition Value Capture Scope of Activities Strategic Control
  3. 3. baxter™ the Collaborative Robot (CoBot) Hi…take a look at me!
  4. 4. Simple Tasks Medium Quality Usage Most Demanding and High Quality Usage KUKA built “TITAN”: The World's Strongest Robot Automotive Industry Laser Cutting Industry Palletising Robots But question is, do some of these simple tasks need to be done by bulky, precise, expensive fixture robots? The Market Industrial Robots
  5. 5. • A trend where there is an increasing demand for simple tasks to be done by low cost, flexible, versatile, user friendly robots for simple applications. • To collaborate with human workers, where anyone can train and use it “Building robots for these small and medium- size companies is a fantastic opportunity. There are many tasks that do not require the speed and precision of today’s industrial robots and these tasks are begging to be automated.” says Henrik I. Christensen, a professor of robotics at the Georgia Institute of Technology, in Atlanta, who’s an expert in industrial automation. The Demand
  6. 6. baxter™ the Cobot
  7. 7. Value Proposition I am… Easy to Train Easy to Use Safe to Use
  8. 8. baxter™ How to train robots in the past • Need Test Engineer to write the Robotic Firmware Code • Need to test the code and commission the robots • Tedious to rewrite the code • Another new Engineer will need to read the code from scratch to reprogram the robot Easy to Train
  9. 9. baxter™ No Programming Needed Can be easily trained by any worker in minutes by moving arms and joints in 7 steps Easy to Train
  10. 10. baxter™ Follow-My-Lead Teaching of baxter Easy to Train
  11. 11. baxter™ • All joints contain force sensors, to detect and feedback movement so that it can “feel” for objects and work surfaces Easy to Train • Sonar sensor and 5 cameras will pick up the visual motion paths that the users provide to baxter. • And also the part size, placement, conveyor speed etc. • Firmware compensation allows users to push and pull the robot arms around for follow-my-lead programming. • So that the motion can be “programmed” into baxter Force Feedback Actuators Integrated Vision AI Firmware How does baxter to it? R&D Core Asset
  12. 12. baxter™ • Cognitive Response through Graph architecture • Traditional Robot: one event must be completed before another even takes place • Baxter Robot: Simultaneous events allowable e.g. both arms and head moving at the same time Traditional Architecture Baxter’s Architecture (Graph) Easy to Train AI firmware allows operations to occur at the same time 1 5 2 6 4 3
  13. 13. baxter™ Intuitive User-friendly Interface and Hardware • UI guides interaction between user and robot by providing status and attention indication e.g. facial expression indicates if it is struggling with job Easy to Use • Buttons located conveniently for easy accessibility • Stored programs for “common” actions e.g. Left arm to mirror right arm
  14. 14. baxter™ Interchangeable End-Effectors • Easy switching of tasks • Versatile and flexible for various operations • Customization of end-effectors available (third partly providers) Parallel Grippers Vacuum holders “Finger and Fingertips” Easy to Use
  15. 15. baxter™ Results in Fast, Easy and Versatile Deployment • Allow frequent line changeovers based on manufacturing demand • Baxter can store well over 100 tasks in its memory, you can always go back to an earlier job without even having to retrain it. • Material Handing • Loading/Unloading Lines • Packing/Unpacking • Machine Operation • Light Assembly • Inspecting, Testing and Sorting Easy to Use
  16. 16. baxter™ In the past, robots are caged for safety “when baxter’s arm smacks into something, it just bumps off without causing harm” Safe to Use Caged Robots, lest their rigid, fast and powerful movements injure or kill someone
  17. 17. baxter™ Exclusive licensed a patented Series Elastic Actuator (SEA) in Baxter’s arm motion. • series elastic actuators, in which a motor and gearbox control a spring that drives the joints, rather than directly controlling the joints. Thus making each arm less rigid • they can sense, “feel” and adjust to any obstacles they encounter Safe to Use Convention Motor Drive Patented SEA Technology
  18. 18. Customer Segments Hi…I’m happy to be of service to you!
  19. 19. • Vanguard Plastic manufactures a variety of plastic parts (different size, shape, design, color) for customers • 1 day to program one conventional existing robot to pack a single part • With Baxter, they only need 1 hour to install and less than 30 min to teach a new task • Flexibility and time saving for the packaging of the numerous varieties of plastic products Uses baxter for ease of programming and flexibility Plastic Contract Manufacturers Loading, Packing and Machine Operation
  20. 20. Need the flexibility to quickly adjust to demands because • High Mix Manufacturing • for tedious jobs such as snapping plastic parts together and packing building block toys Toy Parts Manufacturers (SMEs) Uses baxter for ease of training and usage Packing and Assembling
  21. 21. Require robots which are: • Easy to develop new applications – Open source Software Development Kit (SDK) based on ROS (Robot Operating System) • Versatile – Able to handle a wide range of simple tasks; easy to train – save students from the tedium of repeatedly doing mundane data gathering, allowing students to focus on more involved research • Safe to use – Since they will be lots of interactions between students and robots. used the SDK to develop a LabVIEW-based interface for controlling Baxter from a laptop and for viewing and recording images from the robot's five cameras MIT’s labs use Baxter to scan a large number of people and objects with a Kinect-like camera to collect a large library of scanned items. Universities & Research Institutes Research, Teaching and 3D Scanning of Multiple Objects
  22. 22. Competitors Who are these people snatching my job?
  23. 23. ABB Universal Robots FANUC Kawada Industries Yaskawa KUKA Primary competitor Secondary competitor Competitors Rethink Robotics Adept Technology Barrett Technology Kiva Systems Meka Robotics Stäubli
  24. 24. Competitors’ Products Universal Robots UR5 and UR10 Motoman SDA10D (a YASKAWA company)
  25. 25. Comparison of some key parameters Baxter (Rethink Robotics) UR10 (Universal Robots) SDA10D (Motoman Robotics) Weight 78Kg 28.9Kg 220Kg Payload (Weight Carrying Capability) 2.3Kg 10Kg 10Kg Ease of Training Robot By moving arms and hands of Robot Teaching application on Polyscope 12” graphical user interface Uses DX100 Robot Controller (250kg) with INFORM III, menu-driven programming Reach per arm 104cm 130cm 72cm Vision Controlled Yes (5 Cameras + Sonar) No No Degrees of Freedom (per arm) 7 6 7 Cost (USD $) $22,000 $34,000 $54,000
  26. 26. Strategy Canvas (against Competitors)
  27. 27. Value Capture Money…$$$$
  28. 28. Revenue Model(s) Present Markup Revenue Model Sales • Sales of Baxter • Sales of Add-ons Service • Extended Warranty What we propose Markup Revenue Model Metered Service Rental Service Licensing Model
  29. 29. Current Revenue Stream Markup Metered Service Rental Service Licensing Customer Customers Customer Rethink Robotics Distribution Partner(s) Baxter $$$ Order Extended Warranty $ $ Baxter Add-ons Order % of Revenue Distributor Rights Suppliers $ Contract Components & Parts
  30. 30. Proposed Revenue Stream Markup Metered Service Rental Service Licensing Customer Customers Customer Rethink Robotics Distribution Partner(s) % of Revenue Distributor Rights Rental of Baxter $$ Contract • Charges client by the meter, i.e. how long Baxter has been working. • Maintenance and support is provided by Rethink Robotics and its distribution partners. • Modular design for Baxter allows easy replacement of faulty components, thereby reducing cost for service. $ Baxter Add-ons Order
  31. 31. Proposed Revenue Stream Markup Metered Service Rental Service Licensing Customer Customers Customer Rethink Robotics Distribution Partner(s) % of Revenue Distributor Rights Rental of Baxter $$ Contract Warehouse ContractRental Storage Space Extended Warranty $ $ Baxter Add-ons Order • Charges client through rental of Baxter for specific periods of time. • Rethink Robotics can still earn from sales of add-ons and extended warranty.
  32. 32. Proposed Revenue Stream Markup Metered Service Rental Service Licensing Customer Customers Customer Rethink Robotics Distribution Partner(s) % of Revenue Distributor Rights Component Manufacturer $$ License for interface of End-effectors $$ Baxter Customized End-effectors • Gains revenue through the licensing of rights to manufacture parts using Baxter’s end- effectors.
  33. 33. Scope of activities How was I designed and manufactured? Who are my collaborators?
  34. 34. Research and Development •No programming to teach robot •Series Elastic Actuator (SEA) •Force feedback (sensing & control) • Vision and force detection to “feel” for objects, people and surface •Behaviour-based intelligence •“common sense” operation Artificial Intelligence Vision Technology Intuitive UI and Firmware “Soft Actuators”
  35. 35. •Reduce time to market (Lean Manufacturing) Components bought from local suppliers in USA •Wider network – easier for vertical integration in future •Multiple suppliers to reduce risk of losing design authenticity (being copied by competitors) Diversification of components supplier •Protection of design and IP •Reduction of capital outlay (Plants and Equipment) •Reduce Shipment cost Assembled in Boston, Massachusetts Headquarters •Minimum customization = lower production cost Using off-the-shelf components; Minimum customization was required Manufacturing Strategy for Rethink Robotics: High Profit Margin for each baxter.
  36. 36. • Outsources or license out to 3rd party vendors for the design of some components for development such as customized end-effectors for specified usage. End-effectors Customised end-effectors by 3rd party Outsourcing
  37. 37. Sales, Distribution and Support Partners In Australia and New Zealand In Europe In Japan and Asian marketIn USA Network with partners in worldwide regions that have expertise in distribution of robotics and customization of robotics parts
  38. 38. Rethink Robotics Partners R&D Manufacturing Sales, Marketing and Distribution After Sales Support Vertical (Dis)integration Chain U.S.A based contract manufacturer (Boston)
  39. 39. Strategic Control How to it protect my profits?
  40. 40. Strategized IP portfolio to stave off competition • Build and strengthen its current patent portfolio with a pipeline of key patents to be filed or published • Secure licensing deals with close associates to leverage on their patent portfolio such as iRobot Corporation which was also co- founded by Rodney Brooks, Chairman and CTO of Rethink Robotics. Sources:
  41. 41. • As start-up, Rethink Robotics does not have enough resources to do everything. • Focus R&D capabilities on important aspects such as the firmware, critical key components and systems integration at platform level. Exploit R&D Asset
  42. 42. Control of Interface Standards A proposal to established a form of industry standard in the Mechanical and Electrical Interface between the robot and its end-effectors, as the demand for CoBots increase Interface standards between end-effectors and CoBots Sophisticated end-effectors available in the market Interface
  43. 43. Leverage on Publicity to build Brand Equity • Since launching of Baxter in Sep 2012, Rethink Robotics has been covered by world-renowned media which help establishing Rethink Robotics brand awareness.
  44. 44. • Continue building and maintain its brand equity on delivering Affordably-priced Quality Collaborative Robot (CoBots) to cross the chasm into the Early Majority through international trade shows and events. Plastic injection molded Companies Research Institution and Labs The Early Market Leverage on Publicity to build Brand Equity
  45. 45. Thank You