My students apply concepts from my (Jeff Funk) course on business models to "Catchbox," which is a portable wireless microphone. Since it can be easily thrown and caught, it can be used in large conference or class rooms to facilitate participation from the audience.

1. Liisa Hakala
Tuomas Hervonen
Jarno Hilvenius
Essi Puustinen
Ekku Rytkönen
Project presentation
MT4002 Technology Management Strategy

2. Agenda
1. Introduction to Catchbox
2. Value proposition
3. Customer selection
4. Value capture
5. Scope of activities
6. Strategic control
6th Nov 2012 2

3. INTRODUCTION
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

4. The Company
• Participated in the Finnish
“Summer of startups” program
• 10 weeks internship program of
(CatchBox web page, 2012)
Aalto Entrepreneurship Society
• End result was their product:
Catchbox
• Business plan is still in progress
– Our goal was to design a
business plan for the company
– Everything from this slide
onwards is created by our group
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5. VALUE
PROPOSITION
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6. “Best new device for crowd
Catchbox Q&A I’ve ever seen.”
Doug Richard, (Dragons den UK &)
School for Startups, London
• Throwable wireless microphone
– no-one has to run around with
a traditional microphone
• Engages the audience
– Breaks the ice
– Sparks discussion
– Helps sharing ideas
– Increases interaction
• Fun to throw, easy to catch (CatchBox web page, 2012)
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

7. Value of Catchbox
• For lectures: class paying
full attention %
– Its hard to maintain the
attention of the audience
– Catchbox keeps students on
their toes and awake
• Enhanced discussion
• Better Q&A sessions
• Improved learning experience time, min
– How would the curve look (Mills, 1953)
like when using Catchbox?
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8. Disadvantages
• Takes attention and focus to the wrong place
• Creates too big fuss when used for the first time
• Microphone flies to difficult place or a corner
• Someone does not know how to catch
– Could be embarrassing?
• What if Catchbox knocks off coffee or
something else?
– Who is responsible?
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9. Technical Details
• Product includes
– Wireless transmitter
– Motion sensor
– Microphone
– Design-cube shaped cover
• Not easy to break
• Easy to plug-in to a system
• Microphone switched off when
Catchbox is in the air
• Switched on when catching/landing
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

10. Technical Assumptions
• A lot of strategic questions were left
unanswered
• Resulting technical assumptions
– Cover can be changed
– Open from side when needed to switch on/off
– Can be sold with or without the transmitter
– Charging by changing battery
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

11. CUSTOMER
SELECTION
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12. What is the customer like?
• Curious
• Innovative
• Interactive-freak
• Adventurous
• Not too serious
• Desires to improve
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13. Who would be the user?
• Universities
• Executive education organizations
• Comedians
• Magicians
(NUS web page, 2012)
• Firm events
• TV shows
• All kinds of speakers “This is the first time that a group has
proposed a technology that might
• (Sponsor firms) help me in my job! Good topic.”
Jeff Funk, MT4002, NUS
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

14. Segmentation
Two big segments:
• Service Providers • Direct Buyers
– Companies that provide – Companies or individuals
organizations with that deliver speaches in
audio-visual systems in a variety of situations
their facilities – Key issue is mobility
– Turnkey style service – For example guest
includes all equipment, lecturers, consultants,
installation and later on etc.
maintenance
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INTRODUCTION
PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

15. Segmentation
Pros and cons:
• Service Providers • Direct Buyers
+ Not price sensitive + Greater volumes initially
+ Need to convince only + Easier market
the provider penetration
+ Bulk buys + Might start hype
− Market penetration is reaction
hard − Need of substantial
− Long delivery chain marketing efforts
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

16. Differences in needs
Two big segments:
• Service Providers • Direct Buyers
– Professional quality – Need easy connectivity
– Assembly is not a – Ready to use
problem – Mobile usage
– Stationary usage
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17. VALUE
CAPTURE
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18. Value capture methods
• Two main sources of revenue
– Online sales (Direct buyers)
– Service Providers
• Online sales
– The sales occurs through our websites
– Customer can pay with
• Credit/debit
• PayPal Express Checkout
• Service Providers
– Pay directly to us
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
INTRODUCTION
PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

19. Cash flow in the value network
COMPONENTS TEXTILES & COMPONENT S
SUPPLIER 1 SUPPLIER 1
TECHNOLOGY COVER
SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2
COMPANY COMPANY
SUPPLIER 3 SUPPLIER 3
Banks
Payment service
SERVICE PROVIDERS CATCHBOX
provider PayPal
INDIRECT CUSTOMERS DIRECT BUYERS
PURCHASING A SYSTEM PURCHASING THE
THAT THE PRODUCT IS A PRODUCT FOR THEIR
PART OF OWN USE
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

20. Catchbox´s net profit margin is ~50%
(Houston chronicle web page, 2012)
100 %
Sales price
90 % 300 €
80 %
70 %
60 %
50 % Net profit
40 % Costs
30 % Inclusive of textiles,
hardware system,
20 % logistics, inventory,
payment service
10 % provider, labor
0%
Catchbox cost structure
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21. SCOPE OF
ACTIVITIES
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22. Setting up operations
• Catchbox is a startup
– Small company
– No/Fuzzy infrastructure at the moment
– Limited resources
• One product  Narrow horizontal integration
• Outsource rather than do  Low degree of
vertical integration
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23. Activities to carry out
• Catchbox acts as the designer
– Cover design and technical aspects of the product
– Some logistics administration and inventory of
technology units and covers
• Manufacturing is outsourced
– Cheap components and technology assembly (China?)
– Finnish cover manufacturer  Finnish quality
recognition and the brand value
• In the case of our business growing
– Logistics company to manage logistics and inventory
 Catchbox holds only design functions
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24. Order information flow
COMPONENTS TEXTILES & COMPONENT S
SUPPLIER 1 SUPPLIER 1
TECHNOLOGY FINNISH COVER
SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2
COMPANY COMPANY
SUPPLIER 3 SUPPLIER 3
SERVICE PROVIDERS CATCHBOX
INDIRECT CUSTOMERS DIRECT BUYERS
PURCHASING A SYSTEM PURCHASING THE
THAT THE PRODUCT IS A PRODUCT FOR THEIR
PART OF OWN USE
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
INTRODUCTION
PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

25. Material flow
COMPONENTS TEXTILES & COMPONENT S
SUPPLIER 1 SUPPLIER 1
TECHNOLOGY FINNISH COVER
SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2
COMPANY COMPANY
SUPPLIER 3 SUPPLIER 3
SERVICE PROVIDERS CATCHBOX
INDIRECT CUSTOMERS DIRECT BUYERS
PURCHASING A SYSTEM PURCHASING THE
THAT THE PRODUCT IS A PRODUCT FOR THEIR
PART OF OWN USE
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
INTRODUCTION
PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

26. Activities to carry out
• Marketing and promotion
– In the absense of resources marketing has to be
modern and clever
– Marketing through social media such as Facebook and
Twitter
– Participating in public events with media coverage
– Promotion through the customers
• Direct buyers promote Catchbox by using it and getting the
word out
• Service providers can promote the new product to their
customers  Added value to their offering by having a
product their competition lacks
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
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PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL

27. Examples
• Promotion in events:
– Finnish Municipal Elections debate 2012 (YLE)
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28. Examples
• Promotion by speakers:
– Linus Torvalds in Aalto University (EIT ICT Labs)
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29. STRATEGIC
CONTROL
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30. Strategic Control
• Competitive advantages
– Nothing similar available
– Finnish design
– Professional buyers
• Trust quality products
– Niche product (Avainlippu web page, 2012)
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31. Complementary Assets
• Needed technology already available
– design concept product
• Production can be
easily outsourced
• Need to broaden
supplier base
• Licensing contracts with
cover providers and designers
VALUE CUSTOMER VALUE SCOPE OF STRATEGIC
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32. Protecting the product
• Patenting design
• Trademark
• Retaining high quality
– Demanded by
professional buyers
and users
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33. Future possibilities
• Larger version for catching the atmosphere in
larger events
– e.g. crowd surfing Catchbox in concerts
• Advertisements on the cover
• Company-tailored covers
• Catchbox with camera
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34. THANK YOU!
(Rapgenius web page, 2012)
Next: 5 minutes for questions
 Go!

35. References
• Cover slide background picture
– http://www.talouselama.fi/Kasvuyritykset/pehmea+mikrofonikuutio+lensi+yleison+sydamiin++sta
rtup+loi+valmiin+tuotteen+2+kuukaudessa/a2139106 , last used 17.10.2012
• Catchbox related pictures and Cite from Doug Dichard
– www.thecatchbox.com, last used 17.10.2012 (First blue one original, other own mock-ups)
• Attention graph on slide 7
– Mills, H. R., Techniques of technical training, Cleaver-Hume Press, London, 1953.
• Photo of Jeff Funk on slide 13
– NUS Faculty of Engineering Staff profiles, http://www.eng.nus.edu.sg/etm/staff/Funk_JL.htm, last
used 17.10.2012.
• Estimated margins for Catchbox on slide 20
– http://smallbusiness.chron.com/average-profit-margin-small-business-23368.html, last cited
10.10.2012.
• Finnish Municipal Elections debate 2012 on slide 27
– screen capture: YLE broadcast, 21.10.2012
• Linus Torvalds public speech on slide 28
– screen capture: EIT ICT Labs live webcast, 23.10.2012
• “Design from Finland” figure on slide 30
– http://www.avainlippu.fi/liiton_merkit/design-finland, last used 15.10.2012
• Borat picture on slide 34
– http://s3.amazonaws.com/rapgenius/1291131680_two-thumbs-up.jpg, last used 17.10.2012.

36. Back up slide: Level of margins
• There are four types of wireless microphones:
• headset microphone
• lavalier/lapel microphone
• handheld microphone
• The price ranges for each product type falls
roughly into the following categories (source:
myshopping.com.au):
• 7-80 €
• 80-240 €
• 240-480 € (Catchbox)
• 480-1600 €