These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for pureLiFi’s LiFi technology. LiFi uses light waves as opposed to radio waves to transmit data wirelessly. While the transmission distances are very short and the light waves cannot penetrate walls as radio waves can do to some extent, LiFi has higher speeds, bandwidth, and security. The slides recommend that pureLiFi target defense company’s first and consumers second. Defense companies have a higher willingness to pay and they are more concerned with security than are consumers. As the cost falls, pureLiFi should begin to target consumers. PureLiFi should provide its technology to systems integrators that are defense contractors.

1. Business Model for Li-Fi Technology

2. Li Bing
A0119251M
Cao Jie (Joy)
A0119774U
Soh Loon Siong
A0098520A
Li Yuanbo (Michael)
A0119085A
Wang Huaiyu(Gem)
A0118990W
Chen Zhongze (Frank)
A0119239B

3. I
II
III

4. I
Pure LiFi Corporate ProfileLi-Fi Technology

5. What is
?

6. o Light can be emitted by LED
o Can reflect the wall
o Can dim to be invisible

7. Wi-Fi is close to full capacity
WIFI
Bandwidth 3 kHz ~ 300 GHz [1]
Speed of data
transmission
Limited by 150Mbps [2]
Security Interceptable
Energy Consumption High
Distance 70~250m [2]
Penetration ability Yes
Technology rapidly
improving in recent years
a compound annual growth rate of 82% from 2013 to
2018
[1] https://spie.org/x93593.xml; [2] http://en.wikipedia.org/wiki/IEEE_802.11n-2009; [3] http://en.wikipedia.org/wiki/Li-Fi
[4] http://jwcn.eurasipjournals.com/content/2012/1/91, A review of communication-oriented optical wireless systems
WIFI LIFI
Distance 70~250m [2] Current 10m
Expect to extend to
500m in future [4]
Penetration ability Yes No
Limitation of Li-Fi?
WIFI LIFI
Bandwidth 3 kHz ~ 300 GHz [1] 400 ~ 800 THz [1]
Speed of data
transmission
Limited by 150Mbps [2] Up to 10Gbps [3]
Security Interceptable No penetration ability
Hard to be intercepted
Energy Consumption High Based on illumination
Distance 70~250m [2] Current 10m
Expect to extend to
500m in future [4]
Penetration ability Yes No

8. o A leader in Li-Fi technology
o 50 years team experience in communications
o Successful commercialized product
spin-out from the
University of Edinburgh
2008
Founder of PureLIFI
Professor Harald Haas
first demonstrated
Li-Fi to the world
2011
2012
Officially
Established
pureLiFi -1st
released
Jan 2014

9. II
Li-Fi in National
Defense
Li-Fi for Mobile
Devices
Li-Fi in Public
Areas
Technology Adoption Cycle
Roadmap for applications
Step1
Step2
Step3

10. Li-Fi in National
Defense
Li-Fi for Mobile
Devices
Li-Fi in Public
Areas
Technology Adoption Cycle

11. US spending US$2.3 billion for
tactical radios, wireless network and
communications systems
Modern Warfare –
Network Centric Warfare
Huge need of large bandwidth Information Security

12. US spending US$2.3 billion for
tactical radios, wireless network and
communications systems
Modern Warfare –
Network Centric Warfare
Huge need of large bandwidth Information Security
US Spend 1% of Defense
Budget on communication system
Hence the industry estimate to worth US$ 17.5 Billion

13. Huge need of large bandwidth
Data requirements
o Voice Communication
o Location Tracker
o Live Battle Feed
Estimated bandwidth requirements
o 2 Mbps for 720p video per soldier/vehicles
o 1 Division usually consisting between
o 10,000 to 30,000 soldiers
o Translate to about 60,000 Mbps
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study

14. Huge need of large bandwidth
Need for faster speed as all equipment's, war machine, man on the ground
are wired up to feed commanders first hand information of the
battleground to ensure higher chance of victory
Speed limit of current bandwidth of Wi-Fi
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study

15. Modern Warfare –
Network Centric Warfare
A robustly networked force improves information sharing
Information sharing enhances the quality of
information and shared situational awareness
Shared situational awareness enables collaboration and self-
synchronization, and enhances sustainability and speed of command
Dramatically increase mission effectiveness

16. Information Security
Security if further enhance by means of encryption
Abundant bandwidth facilitates speedy file transmission, total interaction minimized
hence more secured
Lower probability of intercept and detection compared to broadcast
or less directional RF wireless links
For RF wireless link, the adversary needs only a low complexity receiver to
detect its broadcast transmission or the side lobes of directional RF antennas. While
essentially it is impossible for the 3rd party to detect the existence of the Li-Fi link
unless they insert their own receiver into the beam path
Review of communication oriented optical wireless systems

17. Produce prototype
R&D investment
• Risk Sharing
• Lock-in
Unique Product
Key Patent

18. Li-Fi facilitates
National Defense
Li-Fi for Mobile
Devices
Li-Fi in Public
Areas
Technology Adoption Cycle

19. File
Transmission
etc.
Huge Market Potential

20. Current technology can’t fully utilize the phone’s capacity
The phones capacity will grow by 10 times in the next few years
Technology Speed(MB/s) Distance Cost(S$) Performance
Bluetooth 0.1 10m 2 Slow, unstable, hard to manage
Wifi(NFC+S beam) 5 100m 7 Unstable, limited speed, unsafe
Phone flash- write 4-20
Phone flash- read 10-50
LIFI 1000+
Current 10m
Extend to 500m
in future
TBD
Stable, fast, safe

21. Less power consumption
Power
saving
Fast
safe
Stable
More safe during transmission
Much higher speed than
current technology
Less interfere from other
electromagnetic wave
A SUPER FAST AND SAFE
WIRELESS TRANSMITION
SOLUTION

23. Li-Fi facilitates
National Defense
Li-Fi for Mobile
Devices
Li-Fi in Public
Areas
Technology Adoption Cycle

24. • Stadium
• Hospital
• Subway
• Library
• Commercial Outlets
• Hotel and Restaurant
• Office Building
• Enterprise
B2G
B2C
B2B
Collaboration
Commercialization
Expansion
Customer
selection
Public Sectors
Buildings
Home

25. Value Proposition
Faster
Speed
Cheaper
Safer
for
human

26. Value Proposition
Faster
Speed
Cheaper
Safer
for
human
400Mbps 1Gbps
0.2 seconds 0.08 seconds
6 seconds 2.4 seconds
24 seconds 9.6 seconds
90 seconds 36 seconds
How about 400Mbps and 1Gbps?

27. Value Proposition
Faster
Speed
Cheaper
Safer
for
human
Low Energy Consumption
LiFi
Efficient

28. Value Proposition
Faster
Speed
Cheaper
Safer
for
human
24 hours of exposure to
radio-frequency
radiation has been
shown to result in
similar effects on a
comet assay as 1,600
chest x-rays.
Harm for human healthy

29. III

30. Defense segment
Mobile segmentPublic segment
Licensing out
Open collaboration to promote LIFI technology base on four directions

31. Defense
segment
Product
Design
Manufactur
ing
Product
distribution
Product
Ads
Service
o Co-develop product with government;
o Involve third party companies to develop
software;
o Separated project team management;
o Contract manufacturing
with government
certificated factory
o High quality control
o No Ads, keep the whole project confidential;
o Contract service for hardware
maintenance
o Set special service team for
value-added service
o B2G- direct sales

32. Mobile
segment
Product
Design
Manufactur
ing
Product
distribution
Product
Ads
Service
o In house design + fast update
o Product segmentation management
o Contract manufacturing;
o High quality control
o Online Ads;
o Co- Ads with mobile phone companies;
o Contract service
o B2B- direct sale
o CRM management
o Supply/ demand management

33. Public
segment
Product
Design
Manufactur
ing
Product
distribution
Product
Ads
Service
o In house design
o Outsource ID design
o Collect excellent design from online
o Contract manufacturing;
o High quality control
o Online Ads;
o Printing Ads on IT newspaper
and magazines;
o Contract service
o B2B:
o Collaborate with telecom carriers;
o Direct sale to public place owners;
o Retail
o Contract regional agent
o Flagship stores
o Online selling

34. Licensing
out
Technical
support
Licensing
authority
Collaborati
on
o Free support to third party developers and
companies;
o Only charge licensing fee to the well
developed LIFI business;
o Default free of charge to third party
developers and small business;
o Strategic collaboration with companies who
identified high potential LIFI business ;
o Acquisition if necessary;

35. Apple Inc.
Retailers
Third party developers
Individual customers
Transmitter
Receiver
Router
OEM
Flagship shop
Regional distributor
Telecom carriers
Public place owners
Governments
Logistic
Chipset
Third party companies
Other branded
companies
Licensing out
Technical support
Chipset Factory

36. Li-Fi in National Defense
Technology Adoption Cycle
B2G Business
 Sell products to governments with a sales force: low volume but high gross margin
• Chipset/ Transmitter /Receiver/ Router
 Charge for Value added Services: low charge, but high gross margin and long term
• Consultation/ Research service on network protection and interception of
opponents network

37. Li-Fi for Mobile Devices
Technology Adoption Cycle
B2B Business
 Sell chipset to mobile phone companies with a key customer management team;
 Low gross margin, but high volume;

38. Technology Adoption Cycle
Li-Fi in Public
Areas
B2G business
 Support governments with zero net profit;
 Gain profit by defense products and value added services;
B2B business
 Sell routers to telecom companies with a sales force;
 Sell solutions to the large organization or office buildings
B2C Business
 Sell router and receiver to home users
 Low gross margin, but high volume

39. Technology Adoption Cycle
Licensing out to find more opportunities
B2B Business
 Manage the licensing out by technical teams;
 Fixed licensing fee or profit dividend;

40. Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

41. o Proactively improve technology
and apply relevant IPs
o Strong IP protection in chipset
and router business;
o Cultivate other LIFI markets with
weak licensing protection;
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

42. Open collaboration to win standard war
o Build relationship with governments,
and try to impact national standard;
o Build alliance with MNCs;
o Win support from SMBs;
o Attract third party developer with
free technical support;
o Strategic collaboration with third
party companies for new LIFI
business;
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

43. Open collaboration to win standard war
o Build relationship with governments,
and try to impact national standard;
o Build alliance with MNCs;
o Win support from SMBs;
o Attract third party developer with
free technical support;
o Strategic collaboration with third
party companies for new LIFI
business;
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

44. o In-house design
o Contract manufacturing
o Contract distribution
o Contract service
o Quality controlBrand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

45. o Focus on hardware + Fast update
o Develop complementary assets
o Leverage third party resources
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

46. o Zero profit of public products from
governments to win defense product
orders;
o Low price for short term + higher
price for Updated Products
o Provide very competitive pricing for
long term contract
o Internet marketing
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition

47. conclusion

48. Li-Fi for Mobile
Devices
Li-Fi Hotspots in
Public Areas
Superior
surfing
experience
More LIFI features
on mobile device
Network effect between more
LIFI featured mobile devices
and existed LIFI spots
More & superior
LIFI Hot Spots
Network effect between more
LIFI hot spot and LIFI
featured mobile devices

49. Li-Fi facilitates
National Defense
Li-Fi for Mobile
Devices
Li-Fi in Public
Areas
Co –evolutionary Strategy
Virtuous Circle
Licensing

50. Value
Proposition
Faster speed
Large
bandwidth
Information
security
Power
saving
Customer
Segmentation
National
defense
Mobile device
Public area
Scope of
Activities
Design &
production
Service
Marketing &
promotion
Method of
Value Capture
Markup &
production
Fees of
technical
service
Licensing
fees
Strategic
Control
IP protection
Standard
competition
Brand building
Multi-
differentiation
Marketing
strategy

51. Under water
communication
Smart traffic light
control system
Geographic-based
service
RF sensitive area:
airplane, museum,
operation room, etc.
Vehicle-to-vehicle
communication

52. Q & A