My students use ideas from my class to develop a business model for wireless electricity from WiTricity. The slides describe the value proposition for various types of customers/applications including medical, industrial, and consumer products. The slides also discuss the methods of value capture and strategic control.

1. Imagine a world without wires
Group presentation:
Wireless Electricity
Technology Management Strategy
National University of Singapore
Gaurav Chandrashekar
Coline Juin
Jan Zwerina
Hitesh Suresh
Marieke Oosterbaan
12/7/2012 MT4002 – Group presentation 1

2. Imagine a world without wires
12/7/2012 MT4002 – Group presentation 2

3. Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 3

4. Introduction to Witricity
◤ Wireless electricity transmission technology
◤ Uses resonance coupling of coils
◤ Multiple devices can tap power from single coil
◤ Wireless electricity transmission with low losses
(40% efficiency at 2.3m transmission)
◤ Not dependent on direction
(Up to 15° off axis at this moment)
12/7/2012 MT4002 – Group presentation 4

5. Wired vs. Wireless
Wired Power Wireless Power
Pros • Low Transmission • Eliminates cables,
Losses infrastructure etc.
• Familiar in use • Eliminates power plug
• It is everywhere compatibility issues
• Mobility within transmission
range
• Automatic power receiver
Cons • Limited Mobility • High transmission losses
• Requirement for cables, • Requirement for new
infrastructure etc wireless infrastructure
07.12.2012 MT4002 – Group presentation 5

6. Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 6

7. Potential Markets
◤ Medical
◤ Consumer Products
◤ Industrial Equipment
◤ Lets see what value proposition of products in these
markets can be
07.12.2012 MT4002 – Group presentation 7

8. VP for Products in Medical Market
◤ Improved dexterity and safety during surgery
◤ Improves surgical tools through elimination of wires
◤ Reduces need for multiple surgeries
◤ No need for surgery to replace batteries for internal
devices (eg. Pacemakers)
◤ Opportunity for less invasive surgery procedures
◤ Reduced size of products
◤ Enables greater use of “camera-pills” and sensors
to track bodily functions
◤ Eliminates battery-constraint by in-body sensors
07.12.2012 MT4002 – Group presentation 8

9. VP for Products in Industrial Equipment Market
◤ Improved safety
◤ No loose wires on production floor
◤ More effective use of floor space
◤ Greater flexibility in machine location
◤ Architectural new possibilities for product designs
◤ Tools that can rotate through all axes
◤ Higher productivity
◤ Longer running time compared to using rechargeable wireless
device
12/7/2012 MT4002 – Group presentation 9

10. VP for Products in Consumer Market
◤ Increased Convenience for the user
◤ Greater Mobility
◤ Improved Ubiquity
◤ Eliminates standard wars of power sockets an chargers
◤ Reduction in product size
◤ Smaller batteries
◤ Improved Usability
◤ Eliminating „activity of charging‟
07.12.2012 MT4002 – Group presentation 10

11. Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 11

12. Strategic comparison of Markets
Medical Consumer Industrial
Size of market Large Very Large Medium
Character-
No. Of vertical segments Few Many Few
istics
Growth Moderate Fast Moderate
Need
Usefulness useful moderate moderate
Vertically Vertically Vertically
Management Control
integrated disintegrated integrated?
Product Life Cycle (PLC) Long Short Long
Barriers to
entry Very slow
Time to market Quick Slow
Ease of Access to
Hard Easy Medium
Distribution Channels
12/7/2012 MT4002 – Group presentation 12

13. Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 13

14. Consumer Products: Competitors & Challenges
◤ Competitors
◤ Technical challenges
◤ Market challenges
12/7/2012 MT4002 – Group Presentation 14

15. Consumer Wireless Electricity: 3 Leading
Alternatives
Inductive Resonance
Radio Frequency
Name Coupling Coupling
Harvesting
(qi Standard) (Witricity)
Currently available Currently still in Late stage R&D /
Where it stands
in market R&D Pre market launch
(Potential) Near to Medium
Near field charging Far field charging
Applications field charging
Fulton Innovation /
Energizer /
Companies Intel Witricity
Samsung / Nokia /
Duracell
12/7/2012 MT4002 – Group presentation 15

16. Consumer Wirless Electricity: 3 Leading Alternatives
Inductive Resonance
Radio Frequency
Name Coupling Coupling
Harvesting
(qi Standard) (Witricity)
Efficiency
75% - 98% N/A 98%
1-2 cm
Efficiency
N/A N/A 40% at 2.29m
>1m
Up to 15 degrees
Charging Alignment Required N/A
off axis
12/7/2012 MT4002 – Group Presentation 16

17. Main Competitor: ‘qi’ Standard
◤ Current market leader is qi
(Wireless Power Consortium)
◤ Partners include: Nokia, Samsung, Texas instrument
◤ qi is an open standard
◤ However limited technology:
◤ Maximum transmission distance only 40mm
07/12/2012 MT4002 – Group Presentation 17

18. Validated Market
12/7/2012 MT4002 – Group Presentation 18

19. Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 19

20. Business Model Generation
◤ Witricity‟s Current Business Model
◤ Business Model Illustration
◤ Issues With Current Model
◤ Propose New Business Model
◤ Crossing The Chasm
◤ Where To Introduce Witricity And Why
◤ Why Is It Interesting For Our Partners
12/7/2012 MT4002 – Group Presentation 20

21. Current Business Model = Licensing
12/7/2012 MT4002 – Group presentation 21

22. Issues with current business model
◤ Commercialization impetus with licensees
◤ Market has high network effects
◤ High risk for licensees to produce at scale
◤ No catalyst / champion to encourage adoption
Witricity has limited strategic control
There is no catalyst to cross chasm: we will propose one
12/7/2012 MT4002 – Group presentation 22

23. Proposed Business Model
07.12.2012 MT4002 – Group presentation 23

24. Where to introduce Witricity?
Location with greatest impact?
Outside Homes
◤ No or inconvenient existing charging infrastructure
Locations where consumers spend "time“
12/7/2012 MT4002 – Group presentation 24

25. How will we cross the chasm? Electricity providers
Public
locations
12/7/2012 MT4002 – Group presentation 25

26. Value Capture for Public Locations
◤ Improvement of value proposition
◤ Differentiation among competitors
◤ Leads to improved sales
◤ Value capture through:
◤ Purchase of goods and services from establishment
◤ Sale of receiver coil plugs
◤ Service fee: subscription or advertisements
12/7/2012 MT4002 – Group presentation 26

27. Proposed Business Model
07.12.2012 MT4002 – Group presentation 27

28. How will we cross the chasm? Electricity customers
12/7/2012 MT4002 – Group presentation 28

29. Consumer Products: Which Target Device?
◤ Large volume
◤ Low barriers to entry
◤ Vertically disintegrated
◤ Highly mobile usage
07.12.2012 MT4002 – Group presentation 29

30. Consumer Products Market Overview 2012

31. Consumer Products: Which Target Device?
◤ Large volume
◤ Low barriers to entry
◤ Existence of 3rd party add-ons
◤ Vertically disintegrated
◤ Highly mobile usage
07.12.2012 MT4002 – Group presentation 31

32. How will we cross the chasm? Electricity customers
12/7/2012 MT4002 – Group presentation 32

33. Crossing the Chasm
◤ Create Infrastructure
◤ Partnerships with commercial locations
◤ Reduce Network Effects
◤ Provide easy adoption through sale of adaptors
at commercial locations
◤ Increase Technology Accessibility
◤ Distribute demonstration kits for early adopters
/ hackers
12/7/2012 MT4002 – Group presentation 33

34. Proposed Business Model
12/7/2012 MT4002 – Group Presentation 34

35. Conclusion: 3 step strategy for crossing the Chasm
Step A: Early Adopters phase
◤ Manufacture and distribute receivers & transmitters
◤ Partner with public locations eg. Starbucks
Step B: Early Majority Phase
◤ Encourage integration of receivers with phone manufacturers
Step C: After Crossing The Chasm
◤ Return to pure licensing model
◤ Focus on R&D
07.12.2012 MT4002 – Group presentation 35

36. Agenda
◤ Introduction to Witricity
◤ Value Proposition: Wireless vs Wired
◤ Potential Markets
◤ Value Proposition
◤ Strategic Comparison
◤ Target Market: Consumer Products
◤ Challenges and Competitors
◤ Business Model Generation
◤ Value Capture & Strategic Control
◤ Conclusion
07.12.2012 MT4002 – Group presentation 36

37. Questions?
Thank you for your attention!

38. Cost Benefit Analysis
How much does it cost to charge an iPhone 5?
◤ iPhone 5 holds 9.5 watt-hours of charge
0.0095 kWh/day x 70% efficiency x 365 days
=
3.47 kWh per year.
x
27 cents/kwH (Cost of electricity in SG)
=
$0.95/year
or
$0.0026/charge
07/12/2012 MT4002 – Group Presentation 38

39. Technological Challenges of Witricity
◤ Lack of transmission distance
◤ 40% efficiency at 2.3m
◤ Directionally dependant
◤ up to 15°
◤ Safety
◤ Increased magnetic fields
07/12/2012 MT4002 – Group Presentation 39

40. Strategic Partners of Witricity (so far)
Mobile Industrial
Hybrid Cars Health Care
Devices Equipment
Toyota
Misubishi
Audi MediaTek Thoratec GE
Delphi
Batteries
12/7/2012 MT4002 – Group presentation 40