The document provides strategies to address challenges and maximize opportunities for iRobot's revenue streams. It summarizes 3 growth strategies - i-home to optimize the US consumer market, i-globe to sell robots globally, and i-shine to enter new strategic markets. It also outlines initiatives for talent management, supply chain optimization, and increasing US market share to strengthen iRobot's position.

8. Challenge
Threats to Revenue Streams Challenges
Home cleaning
Military robots
robots
Optimizing market mix
Volatility and
Competition from
unknown demand
strong players
of US government
Augmenting revenue streams
Technology
Obsolescence of technology Managing talent and innovation

9. Winning Formula
Target
Strategic
Bets
High
Core
Innovation
Growth
options
Supply Talent
Chain Model
Low Market High
Share

10. Analyzing the market mix
Growth Options Prioritization
High
Consumer Military Place Strategic Bets Core Growth Options
robots, US robots, US
1 2
Market
Growth 1
Market Attractiveness
Market Size
Market
Share
Regulation
2
Funding
Do Not Invest Status Quo
Overall 4.75 2.25
Low High
Accessibility to iRobot
Unfavorable Magnitude Favorable

11. i-home - Core growth(US)
I- home
Creating blue oceans in
consumer markets Aim
Automating processes
within a home Concept
>Middle class
households Segment
& innovators
NPV:
65M Reward

12. i-home - Core growth(US)
i- home
Churning the blue oceans
i-secure
Augmenting
i-vacuum i-sanitize Identifying and fulfilling
more consumer needs
Innovating
i-garden i-cook Pioneering new leading
edge technologies
Pricing i-care
Cement leadership in consumer segment through innovation

13. i-globe – Selling globally
Selecting partnership as a distributor model
• Leveraging on the success of • Distribution network and
partnership model muscle
• Providing superior product to
retailers
• Local knowledge
• Helping retailers understand
product
• Opportunity to cross-sell
• Allowing global access to new
products

14. i-shine – Strategic Bets in Solar
Strategic bets
Precision Robotics Solar Wafer Manufacturer
Penetrate Solar Power Optimize production
Segment using new technology
Financial Capabilities Technological know-
how
Strategic Fit

15. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and
3. To market strategy
opportunities development
Average Annual Cost of Home Health Aide
$54 Growing silver-hair and
$52
disabled market
+ 2.7%
$50
US$/000s
$48 Rising cost of care-giving
Pricing
$46
$44
$42
2004 2007 Median household
income
Source: Genworth Financial 2007 Cost of Care Survey

16. Optimizing Quality
Supply Chain
Phase 1 Phase 2 Phase 3
Processes
Post-Manufacturing/
Development Manufacturing
Optimization
•Communicate •Progress monitoring •Relaying
anticipated •Interim production optimization
production and assessment feedback for
component needs •Provide input incorporation
•Assist in input clarification •Quality assessment
selection scorecard
Anticipate
Prevent shortruns Manage quality
shortruns

17. What we have delivered
Summary and payoffs Challenge addressed Target
i-home
• Blue oceans in consumer markets •Optimizing market mix High
• 65M NPV •Augmenting revenue streams
•Managing Innovation
Innovation
i-globe •Marketing vacuums •Optimizing market mix
internationally
•Augmenting revenue streams
• 38M NPV
i-shine
•Marketing vacuums internationally •Optimizing market mix Low Market High
•32M NPV •Augmenting revenue streams Share
•Managing Innovation
Talent
Model •Dynamic management of talent •Managing talent and innovation
7% increase in US
Market Share
Supply
+
•Ensuring quality of products •Augmenting revenue streams
Chain Lead industry in
innovation