Biz model for LEAP


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my students use ideas from my class on business models to develop a business model for the LEAP, a new user interface for electronic systems. Users can interact with electronic products by moving their hands and the LEAP system recognizes and interprets the gestures. These slides discuss the value propositions for various customer segments including video games, robotics, and 3D modeling. Also discussed are the methods of value capture and strategic control for the LEAP.

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Biz model for LEAP

  1. 1. “The most important new technology since the smart phone ” – MIT Technology Review THE LEAP
  2. 2. Team LEAP Dhanasekar Rajagopal Max NeoRamasamy Venugopal Shuchi Dangwal Wilson Oh
  3. 3. Agenda• Introduction• Customer Selection• Value Proposition• Value Capture• Scope of Activities• Strategic Control
  5. 5. Leap Motion•Start-up established as OcuSpec in 2010.•Low Profile till May 2012.•Positive reviews by review bodies. Source: David Holtz, CTO Michael Buckwald, CEO
  6. 6. • iPod sized gesture The Leap recognition human computer interface Group video• Connects to a computer via USB• 200 times more sensitive • Uses intuitive gestures than existing touch-free technologies • Distinguishes individual fingers and objects• Tracks movement down to a 1/100th of a • Affordable millimetre.
  7. 7. Evolution of Human Computer InterfacesTechnical Performance Gesture Recognition Touch Screen Mouse Effort
  8. 8. Leap Technology • Uses an array of infrared sensors. • Motion detecting algorithm is the secret. • Consumes only 1-2% of the Central Processing Unit (CPU) • Does not require the use of a Graphics Processing Unit (GPU) at all. .
  9. 9. Market Potential 2010 2015Source: Global Touchless Sensing and Gesture Recognition Market (2010 – 2015), published by MarketsandMarkets
  11. 11. Collaborators Consumers Demand for Leap Manufacturers’No. Apps +R Demand for Leap Demand for Apps Diffusion of technology into mainstream market
  12. 12. Consumers
  14. 14. Value Proposition11/15/2012
  15. 15. Value Proposition - Gaming More intuitive compared to mouse or even touch screens Casual Gamers Source: Professional Gamers Source:ehow.com11/15/2012
  16. 16. Value Proposition - Gaming Source: Greater responsiveness Greater accuracy Source: thecoolgadgets.com11/15/2012
  17. 17. Value Proposition - Robotics Self Navigate Mimic Human Movement11/15/2012
  18. 18. Value Proposition – Music & Video Electronic Music Playing or learning Instruments
  19. 19. Value Proposition – Music & Video DJ/Music Mixing Video Editing Organic Feel Efficient Flexibility to Create and Edit
  20. 20. Value Proposition – HealthcareFor Surgeons• Contactless. Maintain sterilization• Manipulating screens• Viewing reports Physiotherapy • To remotely monitor patients as they undergo rehab • Engage children recovering from injuries by merging physiotherapy and games
  21. 21. Value Proposition – Art & Design• Offers better ergonomics compared to mouse• More intuitive 3D interface• Greater accuracy and Source: Siemens website responsiveness• Easy to use with simple form factor• Relatively cheaper than competitors11/15/2012 Source: Salisbury University website
  22. 22. Strategy CanvasHigh LEAP Kinect SoftKinetic Mouse Touchscreen LeaderLow
  23. 23. Value Capture Products End User $ (Revenue) Leap Consumer Technology The Leap ElectronicsManufacturer $ (License) $ $ (Commission) Apps Apps $ App Store $ (Revenue) SoftwareDevelopers (%age of Net Revenue) 23
  24. 24. Scope of Activities- Operations Outsource Build Collaboration hardware distribution with application manufacturing Channels developers
  25. 25. Scope of Activities- R&DExploration Enhance their with Integration own softwaredevelopers
  26. 26. Scope of Activities- Marketing Visionaries Pragmatists Technology Enthusiasts Conservatives
  27. 27. Strategic control – Sustaining Profitability• Protect IP – Protecting the source code• Develop App World – Robust and Innovative• Innovate – Improving Technology• Form alliances – Alliances with software developers
  28. 28. Key Key Value Customer Customer partners activities proposition relationships segments R&D COLLABORATORS 3 Dimension Gaming Self/ Automated Software Service Developers Robotics SDK Intuitive & Development Consumer Electronic Producers Music & Key resources Affordable Channels Video Manufacturer Patents & Third party of Leap SDK Accurate distribution Healthcare Distributors of Talent Sensitive Website Arts &Design Leap Cost structure Revenue streams Sales R&D Manufacturing & License Fee Commission Sale
  29. 29. Q&A