These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model of SCIO’s molecular sensor. This pocket sensor uses infrared light to determine the molecular makeup of fruits, vegetables, drugs, and other organic materials. As a replacement for bulky spectrometers, it can be used by scientists, engineers, and consumers to determine the sugar content, nutritional value, and other aspects of organic materials. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for SCIO.

1. A POCKET MOLECULAR
SENSOR IN YOUR PALMS
MT4002 Technology Management Strategy
National University of Singapore
Ji Xian (A0099689W)
Pang Baifeng (A010008H)
Wang Jingrui (A0105717J)
Sun Xuecong (A0102042H)
Yang Furui (A0100188N)

2. Introduction
 How it works
 Why we need SCIO
Customer Selection
 Potential markets
 Target markets
 Market potentials
Value Proposition
 For health conscious people
 For education
Scope of Activities
Value Capture
Strategic Control
Outline

3. Introduction to SCIO
Light, compact and portable
molecular sensor, able to scan
any physical object
Work on a database contributed
by users of SCIO. Scanned
objects are identified through
database
Able to scan through glasses
and packages
Real time processed information
of scanned objects is displayed
on users’ smart phones
Uses NIR technology
and optical sensor
technology, replace
bulky lab spectrometer

4. Give the surface of an object
a simple 5 seconds scan
Scanned information
enter into data base
and make comparison
Display composition of
object on smart phones
Open SCIO app on
smartphone
How SCIO Works

5. SCIO’s User Interface

6. Why We Need SCIO
Food
Intake
Sugar content
for personal
taste preference
and other
concerns
Calories/
nutritional
value for
healthy eating
Take precaution for food allergy
Detect food
spoilage

7. Why We Need SCIO
Other
Know the basic molecular make up
of materials for learning purpose
Check material of consumer
products. Eg: cosmetics
Empower user in
selecting better
health supplements
Moisture level
in plants

8. Customer Selection &
Value Proposition

9. Young people
who are
conscious about
healthy diet
People with
special
concerns
1. Consumer product that help users
to keep track of information of
intake
2. Educational tool for
schools
3. Other directions of usage
Non-tertiary
institutions
Tertiary
institutions Farmers
Scientific
researchers
Customer Selection – Potential Market

10. Tertiary
institutions
Scientific
researchers
Scientific
researchers
Farmers
• Strong existing products, e.g. Radiometric cameras, NMR spectroscopy
• Immature database for advanced scientific usage
• Insufficient marketing resources for wide and in-depth market penetration
Customer Selection – Not Targeted

11. Young people
who are
interested in
general well-
being
People with
special concerns
Health conscious customers Non-Tertiary Educational institutions
Science
modules and
laboratories
Innovative spirit
& attempt to
improve on
teaching
Customer Selection – Targeted Segments

12. Healthier lifestyle
• 80% Committed to eating and maintaining
a healthy lifestyle.
• 63% Willing to pay more for healthier
products
• 71% Less than convinced of the health
information they received
Technology in teaching
Trending up
• 1:1 tablets/devices
• Mobile-first edtech design
• Experiential learning
• Teacher as guide-on-the-side
Customer Selection – Market Potentials

13. Calorific and nutritional information
Composition of medicine
Safety – allergens, food quality, cosmetics
Embracing fitness and capable of making informed
choices
Needs:
Health Conscious Customers

14. Nutrition fact calculators
Based on average value from
database, not specific nor timely
Companies
Calorie calculation service for their
products
Allergens detectors
Separate kits for different allergens
& unable to penetrate packaged
foods
Providing accurate, instant and
access to relevant nutrition
information or molecular
composition at an affordable
price
Compatible with smart phones
Multifunctional & all-in-one,
able to scan through packages
Existing Products SCiO
Health Conscious Customers

15. Value Proposition
SCiO is a portable device that is capable of discovering the timely nutritional fact and
composition of different kinds of foods, capsules and cosmetics accurately before
ingested or applied to body by a simple scan.
 Instant and affordable analysis of materials
 Non-touch and Non-intrusive
 The possibilities of SCiO applications are endless
Health Conscious Customers

16. Providing more innovative way of teaching
Making the classes more engaging to students with
hand-on practice
Improving effectiveness of teaching through using
technology
Needs:
Non-tertiary Educational Institutions

17. Higher accuracy, broader application,
less restricted usage.
Better suitable for research
purpose
Costly, sophisticated operatation,
impossible for one-on-one
implementation.
Less suitable for elementary
education purpose
• Comprehensive functionality
• Acceptable accuracy
• Reasonable price
• Easy Manipulation
• Concrete and vivid presentation
• Full access to established data
base
• Auxiliary teaching software
Innovative & Interesting teaching
tool
Nuclear Magnetic
Resonance Spectrometer
SCiO Educational Kit
Non-tertiary Educational Institutions

18. Value Proposition
SCiO is a supportive teaching tool that makes non-tertiary scienctific
laboratory learning more intriguing and fruitful by providing students
with more observable and understandable way of analyzing the
physical world.
 Portable and simple
 High recognition and accuracy based on an established data base
 Various supporting softwares attached
Non-tertiary Educational Institutions

19. Scope of Activities

20. Manufacturer
Value Network
SCiO
Retailer
School
Users
Apps
Developer
Apps
Feedback
Feedback

21. Vertical Dis-intergration
Technology
Development
Product Design
Marketing & Sales
Core
Value
Creation
Manufacturing
After Sales
Service
Out
Source
Complementary
Apps Development
Open
Source

22. Scope of Activities
SCiO Manufacturer Retailer Application
Developer
Technology Development ✔
Design Improvement ✔
Data Analysis ✔
Data Storage ✔
Algorithm ✔
Software ✔ ✔
Licensing ✔
Manufacturing ✔
Marketing & Sales ✔ ✔
After-sales Service ✔ ✔

23. Value Capture

24. Value Capture - Standard Package
Retail sales in Watsons
and Guardian. Reaching
our target customers
efficiently.
Other than direct online
sales, we also
collaborate with 3rd
party online platform to
reach out to customers

25. Win more contract and
expand to other markets
Gather feedback and
achieve market recognition
Value Capture - Education Kit
Working with several
local schools

26. Value Capture - Initial Stage
• Low value
captured
through sales
revenue, due to
low level of
market
recognition.
• Free access to
software as
attracting new
users is the
primary goal.
• Free license to
external
developer to
attract
developers and
win recognition.
Device Software Database

27. Value Capture - Developing Stage
• Value capture
achieved
through sales
revenue due to
increase in
sales and
market
recognition.
• Value captured
through annual
membership
fee charged
for advanced
features to
meet diverse
needs.
• Value captured
through license
fee charged to
external
developers and
institutions.
Device Software Database

28. Value Capture
Device Software Database
Start Developing Maturity
• Revenue achieved
mainly from the selling
devices
• Increasing user base
and establish database
is the key for growth
• Revenue achieved from
different channels(
software & database)
• Upgrade services
• Revenue achieved from
more diverse channels.
• Exploring new areas of
services
Age of Company
Value
Captured

29. Strategic Control

30. Patent
For Sensor
Strategy 1: Patent and License
License
For Software &
Database
Set High Barrier of Entries
Control of Key Resources
Standard Setting
When others want to use
the off-the-shelf sensor to
build similar devices
When users use our software on
a regular basis
When developers want to
develop apps based on our
database

31. SCiO Your Daily Health Tracker
Strategy 2: Additional Features
-Comprehensive health tracking function:
Network Effect
Standard Setting
-Personal data storage:
High Switching Cost

32. SCiO the Teaching Assistant
Strategy 2: Additional Features
-Holistic Teaching Assistance
Network Effect
-First Mover Advantages
Ensure Large Installed Base
-Teaching and Learning Habit
High Switching Cost

33. References
1. Allergens. (n.d.). Retrieved from Biotechcon Diagnostics:
http://www.bc-diagnostics.com/products/kits/real-time-pcr/allergens/foodproof-peanut-detection-kit/
2. Facts and stats. (n.d.). Retrieved from Food allergy research and education:
https://www.foodallergy.org/facts-and-stats
3. Heick, T. (2015). 30 Trends in Education Technology 2015. Retrieved from Teachthought:
http://www.teachthought.com/uncategorized/30-trends-education-technology-2015/
4. Physics, C. (2015, 3 3). SCIO-Explore more! Retrieved from Youtube:
https://www.youtube.com/watch?v=ejl6gGgR9_g&feature=youtu.be
5. SCIO-Explore More. (2015). Retrieved from SCIO by Consumer Physics: https://www.consumerphysics.com/myscio/
6. W. P. Aue1, E. B. (n.d.). Two‐dimensional spectroscopy. Application to nuclear magnetic resonance.
Retrieved from AIP Scitation: http://scitation.aip.org/content/aip/journal/jcp/64/5/10.1063/1.432450
7. Younger Consumers Are Trending Toward More Health-Conscious Eating. (2015, 10 4). Retrieved from The
Huffington Post: http://www.huffingtonpost.com/elwood-d-watson/younger-consumers-are-tre_b_6632166.html
8. Food Allergy Overview. (2015). Retrieved from Webstaurantstore: http://www.webstaurantstore.com/article/22/food-allergy-
overview.html