Biz model for visible light comunication
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These slides summarize a business model for visible light communication, as part of a course taught by Jeff Funk on business models
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Biz model for visible light comunication
- 1. To a greener and brighter world Bronson Chua Chiueh Woei A0076951W Chen Xiaokai HT083531N Charanya Kandhaswamy A0076954N Chua Hui Yue Jeremy A0076867J Low Kok Tat HT083262M Yang SiShuo A0039765R
- 2. Presentation Outline Introduction Value Proposition Customer Value Capture Activities Strategic control •Spectrum shortage Selection & •Introduction to VLC Market •Technology Status Segmentation •Our Focus Yang Si Shuo Low Kok Tat Charanya Kandhaswamy Bronson Chua Chiueh Woei Chen Xiaokai
- 3. EM Spectrum & Applications Longer wavelength Shorter wavelength Lower frequency Higher frequency Imaging Imaging Wireless Short‐range Medical Communication Communication Application Source: http://www.kollewin.com/blog/electromagnetic‐spectrum/
- 5. Wireless Data Demand Frost & Sullivan: Smartphone share rise from 23.9% in 2009 to 67.1% in 2015 * Global Mobile Data Traffic Growth ** 2008 156% 2009 140% 2010 159% 2011 (estimate) 131% 2012 (estimate) 113% Cisco Forecasts 6.3 Exabytes per Month of Mobile Data Traffic by 2015 * Source: http://www.eweek.com/c/a/Mobile‐and‐Wireless/INSIDE‐MOBILE‐Why‐the‐Demand‐for‐Wireless‐Data‐is‐Growing/ ** Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015, http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11‐520862.html
- 8. Visible Light Communication Radio VLC • A transmitter emits • Pulsed light instead the carrier frequency radio or microwave modulated by the to transmit data encoded information • Modulated light from signals various sources • a receiver • Indoor/outdoor demodulates or lighting decodes it • Displays • Wave Guide (zero • Illuminated signs exposure) /Airwave • LEDs
- 10. VCL Applications Smart lighting Mobile Connectivity Vehicle to vehicle communication Under water communication Location based service Indoor wireless communication
- 11. Typical Application Example • Wireless communication between hard‐wired Internet terminal to electronic devices • The LED that illuminates the room could also transmit date
- 13. Value Proposition ‐ Why Visible Light Communication? License ‐free Frequency above 3THz is NOT regulated by the Radio Regulation Law . The use of radio frequency below 3THz is regulated by the Radio Regulation Law .
- 14. Value Proposition ‐ Why Visible Light Communication? • LEDs are widely used in our life • Office, home, traffic light, street light etc. • Ideal for ubiquitous data transmitter LED Lighting Market: Revenue Forecasts (Asia), 2007‐2017 Source: Frost & Sullivan , world LED Lighting Market p91
- 15. Value Proposition ‐ Why Visible Light Communication? • Reduces electricity bill Before VLC After VLC Source: http://eartheasy.com/live_energyeff_lighting.htm
- 16. Value Proposition ‐ Why Visible Light Communication? • LED can be used both for lighting & Data Transfer • Less installation Charge (no cables, modem, router) • Easy to install at home requires minimal changes (LED source, IR Transceiver Chip) • Data transfer rate 500 M bits/s • Better data security due to non inference of frequency
- 17. Value Proposition – Comparison of VLC with Cable &Wireless Source: Wikipedia
- 20. Market Growth Growth of Consumer Broadband Market (Singapore) Home Boardband Revenue ($ Million) Business Boardband Revenue ($ Million) 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: APAC Board band Market by Frost & Sullivan
- 21. LED Lighting Market: Per Cent of Revenues by Applications (World), 2010 • Its predicted that in terms of applications, the residential and commercial markets are expected to grow as is street lighting. Source: Frost & Sullivan , world LED Lighting Market
- 22. Needs of different Market Segment Business RF usage permitted RF usage not permitted General Business Hotels/ Universities/ Petrochemical Under Water Millitary Factors Home User Restaurants Polytechnics Hospitals refinery communication Vehicles Speed Medium High Medium High Low Low Low High Availability Medium High Medium High Low Low Low High Consistency Medium High Medium High Low Low High High Reliability Medium High Medium High High High High High Price Sensitivity High Low Medium High High High High Low Infrastructure Change Low High Low High High Low Low Low Security High High Medium High High High High High
- 23. Target Customer Expectations of Pragmatic Customers??? • Look for well established Reference • Look for better customer support • Highly Price Sensitive • High sense of Practicality How are we going to reach these pragmatic customers????
- 24. How to penetrate the market??? Visionaries Conservative Developing the late Developing the Early Market Penetration market market Pragmatist Technology Enthusiasts
- 26. Value Capture HotelUniversitiesIDA (Private Sectors) On Approval for Installation Installation of VLC Product for End Customer HDB flats (Service/Consultancy) Consultancy Consultancy Telco Placing order VLC Company Contract Vendors Delivering order
- 28. Value Capture in Business Model Dominant Revenue Basic Idea Model Sale of service/product Direct sales Fee for Service Fee for metered service (Installation charge)
- 30. Scope of Activities‐ Marketing Visionaries Conservative • Consultancy services to Singapore Government • Top tier customers • Save electricity • Revenue & profit initiative(PUB) • Attaining Technology maturity • Sustainable energy • Full product line services initiatives • Strategic partners & Alliance • Trade Shows • Business Press coverage • Technology Conference • Financial Analyst Endorsement • Demos • Demos on Successfully • Trails implement Projects • Technology Press Coverage • Product Differentiation after • Guru endorsements installing VLC • Collaboration • Demos on Technology Sustainability on large Scale implementation Technology • Large scale Advertisements • Market Share Enthusiasts Pragmatist
- 32. Scope of Activities‐Operation Negotiation with contact Gaining approval as a manufacturer on Installation / technical Government RFP (HDB) Approve vendor continuous improvement support on product quality
- 33. Scope of Activities‐R&D Continuous improvement on product/ Participate in Standard Setting Participate in Technology conference & service Organizations (VLCC), IEEE 802.15 M2M evolution
- 35. Strategic Control for VLC • How to sustain profit? • Apply Blue Ocean Strategy to create uncontested market space
- 36. Strategy to Expand VLC Market Create uncontested market space in: • Underwater communication • Hospital • VEHICLE & TRANSPORTATION • Complementary product for Smart Home http://visiblelightcomm.com/top‐10‐visible‐light‐communications‐applications/
- 37. Strategic Control for VLC I. Create high entry barrier by well protected IP portfolio II. Research collaboration with universities to improve the product feature and functionality III. Create our own brand to more customer base through network effect and mass advertisements http://www.theengineer.co.uk/1007419.article
- 38. Thank You