These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Sharklet. Sharklet is an inexpensive material that can dramatically reduce growth of bacteria when the material is attached to specific surfaces. The material includes a pattern that mimics the surface of shark skin, which has a pattern for bacteria has trouble adhering and growing. The material is inexpensive and can be easily attached to any surface due to the addition of an adhesive to it. These slides describe the specific value proposition for hospitals, equipment manufacturers, and patients and other aspects of the business model such as the method of value capture, scope of activities, and method of strategic control.

1. MT5016 –BUSINESS MODELS FOR HI-TECH PRODUCTS;
GROUP: THE APPRENTICE;
MEMBERS:Lo YiYang, Lim KhengWee, Lin Rongbin, Chin Mei Yin & Lim KhaiWei.

2. OVERVIEW
Introduction: Sharklet Technologies and SharkletTM
Business Model
Sharkskin Textured Film
Customer Selection
Value proposition
Sharkskin Patterned Medical Devices
Customer Selection
Value proposition
Value capture
Scope of Activities
Strategic Control
Future of Sharklet Technologies
Conclusion

3. SharkletTechnologies, Inc. –Company
Itisabiotechnologycompanythatdevelopsandmarketssurfacetechnologiesthatmanagemicroorganismsforbenefitsinhealthandenvironment
Altria Ventures, the venture capital investment arm of Altria Group, Inc., invested $2 million in SharkletTechnologies in exchange for a 12.5% stake.

4. MicroscopicviewofthesurfacetextureofSharkskin(left)andthemimicsurfaceofSharklet(right)
SharkletTechnologies, Inc. –Sharklet™
Sharklet™ is a biomimetic technology inspired by the Galapagos Shark.
The microscopic Sharkletdiamonds mimic the shape and pattern of the dermal denticlesof sharkskin which are resistant to fouling organisms including algae (by 85%) and barnacles.
The ribs’ width-to-height ratios would discourage microorganisms from settling.

5. Sharklet
Bacterial Inhibition
Medical Field

7. Effectiveness of Sharklet

8. Sharklet™
Sharkskin textured film
Sharkskin Patterned Medical Devices
Smartphone Cases
Products of Sharklet

9. Sharklet™
Sharkskin textured film
Sharkskin Patterned Medical Devices
Smartphone Cases
Products of Sharklet

10. Health Care Industry
e.g. on high-touch surfaces in hospitals
Sharkskin Textured Film : Customer Selection

11. Bed Rails
Chair
Intravenous
poles
Call Buttons
Light Switches
Door handles
Hold rails
Doors around hospital
Other Common Infection Area: Bathrooms
In Hospital: High-Touch Areas

12. Cost of HAIs

13. Ref: http://www.healio.com/~/media/Journals/ORTHO/2013/6_June/10_3928_01477447_20130523_27/table1.jpg

14. 1 MSI = 1,000 SQ inches (in²)
1,000 in²= $3.50 + $2.37 = $5.87
1 in² = $0.00587
Sample provided
Size : 81 in²
Cost : (81 in²x $5.87 )/1000 = $0.48
How much should I sell Sharklet film?
Sharklet Textured Film: The Cost

15. Cost: Disinfection vs Sharklet Textured Film
DESCRIPTION
METRIC
1.Cost Adhesive Sharklet-Film/ in²
(Film: $0.00587/in² and Adhesive: $0.08667/in²)
$0.00587
2.500-BedHospital Area (m²/in²)
46,450 m²/
21,599,293 in²
Assuming,80% of Hospital Area considered High-Touch Areas
17,279,435in²
Cost perAnnum, Sharkskin Textured Film
(Quarterly Replacement Film per year, on average 90 days usage)
$405,721
(~$0.4M)
Potential Savings ($4M-$0.4M):
$3.6M
Ref: https://www.facilitycare.com/environmental-services/housekeeping/revealing-true-costs-disinfection-and-environmental-cleaning

16. SHARKLET SURFACE TECHNOLOGY
NO HEAT
NO RADIATION
NO CHEMICALNO ANTISEPTICS
NO DISINFECTANTS
LOW COST SOLUTION
Sharkskin Textured Film vs Existing Methods of Disinfection

17. Ability to inhibit bacteria growth
Green technology –does not release anything from its surface
Reduced chemical waste (vs existing disinfection method)
Low cost
Easy to use (adhesive- backed films)
Sharkskin Textured Film: Summary of its Value Proposition

18. High touch areas within the research and commercial laboratory where strict microbial control is critical
Laboratory equipment manufacturer
Sharkskin Textured Film: Laboratory Application

19. Marine Vessel Manufacturers &
Marine Vessel Coating Service:
E.g. ship hull
Building developer:
E.g. Internal walls of laboratories or external walls of homes
Sharkskin Textured Film: Other Potential Applications

20. Sharkskin Patterned Medical Equipment: Customer Selection
To Whom it Benefits?
OEMs of MEDICAL EQUIPMENTS
HOSPITAL PATIENTS
at risk of bacterial infections
E.g. UTI, BP Cuff

21. Sharkskin Patterned Medical Equipment: Statistics of HAIs
Ref: http://www.bactiguard.se/about/the-problem/health-care-related-infections/

22. Sharklet-Patterned Urinary Catheter
•CathetermanufacturedwiththeSharkletmicro-patterninitssurfacetopreventthesurvivalandmigrationofbacteriawiththeintenttoreduceCAUTI
•Reducedtheriskofurinarytractinfectionwhichaccountsto32%oftotalHospitalAcquiredInfections
Sharkskin Patterned Medical Equipment: Urinary Catheters

23. Targeted approach to address the most common Hospital Acquired Infections (HAIs)
Reduced the frequency of replacing the catheter tube
Low cost solution
Sharkskin Patterned Medical Equipment: Value Proposition

24. Problem Statement:
Jack had an accident while riding a bike on PIE on a rainy day. Both of his legs were broken and were casted in plaster . Unable to walk and bedridden, doctor needs to implant urinary catheter on him for 3weeks.
Doctor needs to decide to implant a normal urinary catheter or Sharkletpatterned urinary catheter. What would the costs be?
Normal Catheter needs to be replaced after 7days else high risk of infection:
Week 1 : $0.50
Week 2 : $0.50
Week 3 : $0.50
Total cost $1.50
Sharklet patterned urinary catheter:
Week 1 : $0.762
Week 2 : $0
Week 3 : $0
Total cost : $0.762
Potential gain per catheter
= $0.738
= 147.6%
* The above gain exclusive 3 times catheter insertion cost
Cost: Normal Catheter vs Sharklet-Patterned Catheter
Assumption:
1.Manufacturing cost = 52.4% of Unit Selling Price/ in² based on 3M Annual Report, 2012)
2.$0.50 + 52.4% = $0.762/in²
Ref: http://www.dnrwheels.com/Incontinence/Catheters_Indwell

25. Manufacture Sharklet film
Sharklet
Incorporate Sharklet film to product
Company
Use product
End User
Manufacture Sharklet film
Sharklet
Incorporate Sharklet film to product
Company
Use product
End User
Production
Commission
Licensing Sharklet Technologies
Sharklet
Incorporate Sharklet pattern to product
Company
Use product
End User
Licensing
Make Money
Make Money
Make Money
SharkletTechnologies: Value Capture

26. SharkletTechnologies: Value Capture
•So which is the better approach?
Production
Competition from rival (lack of uniqueness, easy to copy -Price war)
Commissioning
Binding contract to be the sole supplied
Licensing
Sales dependent, more ownership
Unique manufacturing method to integrate Sharkskin pattern

27. SharkletTechnologies: Value Capture

28. Collaboration with Laboratory Equipment Manufacturer
SharkletTechnologies: Potential Value Capture
Ref: http://www.pacificscience.com/images/manufacturers_2013-06-17.jpg

29. Continuously searching for partner/ collaboration and draw in investments.
SharkletTechnologies: Scope of Activities

30. Continue R & D for better integration with medical equipmentsand processes
Collaboration with medical device OEM to apply Sharklet patterned
surface on existing medical devices/implants
SharkletTechnologies: Scope of Activities

31. SharkletTechnologies: Scope of Activities

32. Research/sourcing for better adhesive material for the attachment of film to surfaces
SharkletTechnologies: Scope of Activities

33. Patent for new medical devices
IP Protection for Sharkskin pattern engineering
SharkletTechnologies: Strategic Control

34. LOOK INTO FUTURE
•3D printing?
•Economies ofScale?
Reduce cost
•Other (shark) skins?
•Material sensitive?
Improve performance
•Other applications of shark skin
•Invade into normal films?
New market

35. LOOK INTO FUTURE -3D PRINTING
Ref: http://wyss.harvard.edu/viewpage/537/

36. LOOK INTO FUTURE –CONTINUOUS R&D
•Why is Galapagos Shark but not other shark?
•Is there any other types of skin has better performance?
•Does the testing result vary with the different materials?
•Color dependency?
•Applicable to other bacterial?

37. LOOK INTO FUTURE –OTHER APPLICATIONS
Drag reduction
•Marine vessel/Shipping
•Aerospace Application
•Swimsuit
Anti-fouling
•Marine vessel/ Shipping
•Fishery
Anti-biotic surfaces
•Hospitals
•Laboratory
•Health care centers

38. LOOK INTO FUTURE –OTHER APPLICATIONS (AEROSPACE)
'Shark skin' paint to be tested on Lufthansa Airbus jets
Scientists estimate that if 40 to 70 percent of the aircraft is coated with the new shark-skin mimicking paint, surface resistance may be reduced by one percent.
Ref: http://www.youtube.com/watch?v=NYZsTFhTT8Q

39. LOOK INTO FUTURE –OTHER APPLICATIONS (AEROSPACE)
0
0.5
1
1.5
2
2.5
3
3.5
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
2000
2002
2004
2006
2008
2010
2012
Consumption(million gallons)
Cost (million dollars)
Cost per Gallon(dollars)
US Airline Fuel Cost and Consumption (All Majors -All)
48 billion X 1 % = 480 million
Ref: http://www.transtats.bts.gov/fuel.asp?pn=0&display=data1

40. LOOK INTO FUTURE –OTHER APPLICATIONS (SWIMSUIT)
Researchersfoundthatstaticdenticled-skinreduceddragby8.7percent.Whentheteamflappedthefoiltomimicswimmingmovement, theyfoundthattheswimmingspeedwasupby6.6percentandenergyexpenditurewasreducedby5.9percent.

41. LOOK INTO FUTURE –OTHER APPLICATIONS (ANTI- FOULING)
EarlymarineantifoulingstrategiesbyEuropeansinvolvedtheuseofcoppercladdingonships,whichwastoxictomanyorganismsandeitherdeterredattachmentorwaslethaltothosethatdidattach.
Sharkscales,ordermaldenticlesarecoveredinenamelthatisanalogoustohumanteethandcanrepelmorethan85%ofalgaethatcomesincontactwiththescales.
Ref: http://www.ny-big.org/learning/non-toxic-anti-fouling-solutions-sharklet/

43. LOOK INTO FUTURE –OTHER APPLICATIONS (OTHER POTENTIAL MARKETS)

44. CONCLUSION
Extensive usage of Sharkskin in medical applications -Medical Devices, Laboratory
Should continue to explore other potential applications to maximiseprofit, especially customers with higher willingness to pay