These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Fischer Tech, a supplier of smart plastics to electronics companies. These smart plastics contain printed electronics that provide increased functionality for plastic parts and products. Transceivers, microprocessors, and other electronics can be embedded in the plastic parts thus enabling doors to open without holding keys or cards and plastic parts to act as dials, controls, and other forms of input. This firm is enabling smart homes and the Internet of Things. These slides describe the value proposition, customers, method of value capture, scope of activities and the method of strategic control for Fischer Tech.

1. MT5016 – BUSINESS MODELS FOR HI-TECH PRODUCTS
– FISCHER TECH: SMART PLASTICS –
Chong Shen Long Marcus – (A0073907Y)
Wong Wai Quen Timothy – (A0073882W)
Zhou Ketuo – (A0147177X)

2. Are You One of Them??
• Just as you approach a door, you realize both your hands are
occupied; your keys are in your pocket or purse.
• Then you say to yourself, “Should I lay the items down first , or
should I hold on to them while I struggle to open the door?”…
Source: https://www.youtube.com/watch?v=ytal5fcRJKM

3. Problem Statement
• Currently, in order for one to gain access to a
secured premise, one has to make use of a key of
some sort…

4. Existing Modes of Door System
• 1. Traditional Key
• 2. Card Access
• 3. Biometric Access
▫ 3.1 Voice
▫ 3.2 Retina
▫ 3.3 Fingerprint

5. Drawbacks from Existing Door System
• Any security systems that are integrated with a
door usually introduces an additional procedure
for one to gain entry to the premise.
Type Requires
Key?
Level of
Physical
Interaction
to Unlock
Door.
Delay
Time –
Finding
Key
Delay Time –
Scan and
Authentication
Process
Level of
Physical
Interaction
to Access
Cost
1. Traditional Key YES HIGH YES NO AVG LOW
2. Key Card YES LOW YES YES AVG MEDIUM
3. Biometric
3.1 Retina NO LOW NO YES AVG HIGH
3.2
Fingerprint
NO LOW NO YES AVG HIGH
3.3 Voice
Recognition
NO LOW NO YES AVG HIGH

6. Potential Solution Provider
• One plastic specialist manufacturing firm in
Singapore has the technology as well as network
capabilities to create a product solution.
▫ Fischer-Tech Pte Ltd
 Prototype: iDoor Easy Access

7. iDOOR EASY ACCESS
• What is it?
▫ It is a combination of various mechanisms and
technology…
Magnetic Lock Door Closer Mechanism Keyless Entry Technology
Smart Plastics

8. Step 1: Arrival of Raw Material –
Poly Carbonate Sheet
Step 2: Imprinting the decorative ink and Indium Tin Oxide (ITO)
Step 5: Final Product after
injection molding
Step 4: Singulation Process Step 3: Thermal/Vacuum Forming
Front View Back View
Smart Plastics

9. • How does it work?
iDOOR EASY ACCESS

10. • How does it work?
iDOOR EASY ACCESS
Magnetic Module
Door Closer
Door Handle
Smart Plastic with
Integrated Circuit
Keyhole

11. • How does it work?
iDOOR EASY ACCESS
Source: http://www.nytimes.com/2001/06/07/technology/how-it-works-remote-keyless-entry-staying-a-step-ahead-of-car-thieves.html
iDoor Key
Module
Magnetic Module
• Electric magnetic lock
• Receiver Smart Plastic
• Establish contact with
the smart plastic to
release the electric
magnetic lock in
magnetic module

12. • How does it work?
EXISTING DOOR ACCESS - KEYLOCK
Go to the Door
Search for Key
Insert Key into
Keyhole to Unlock
Pull Handle
Enter Secured Premise
KEYLOCK PROCESS FLOW:
CURRENT PROCESS:

13. • How does it work?
Go to the Door
Search for SmartCard
Scan the Card
Pull Handle
Enter Secured Premise
SMARTCARD PROCESS FLOW: CURRENT PROCESS:
EXISTING DOOR ACCESS - SMARTCARD

14. • How does it work better?
iDOOR EASY ACCESS
Go to the Door
Enter Secured Premise
iDoor Easy Access PROCESS
Establish Contact on
Door Surface and Push
Search
Scan/ Insert
Pull Handle

15. Why Fischer-Tech?
• Has the potential to improve standard of living
through its niche manufacturing capabilities and
their Smart Plastic Technology

16. Overview
• Introduction to Fischer Tech Pte Ltd
• Business Model
▫ Competitor Profiling and Comparison
▫ Value Proposition
▫ Customer Selection
▫ Method of Value Capture
▫ Scope of Activities
▫ Strategic Control

17. Fischer Tech Pte Ltd
• Introduction to Fischer Tech Pte Ltd
▫ Established since June 1994
▫ Specialist manufacturer of high volume precision
engineering plastic components for new electronic
product innovations
▫ Also the designer and manufacturer of plastic
injection moulds
Source: http://www.fischer.com.sg/

18. Competitors Profiling & Comparison
Manufacturing /
Niche Capabilities
Fischer Tech Pte
Ltd
Yeakin Plastic
Industry Pte Ltd
Fuyu Corporation
Ltd
Fon Star
International
Technology Ltd
Mould Making x x x x
Thin Wall Moulding x x x
2-Shot Moulding x x x
Precision Moulding x x x x
Cosmetic Moulding
Technology
x
Rubber Moulding x x x
Robotic Spraying x x x x
Laser Etching x x x x
In-Mould Labelling x x x
Clean Room x x
Ultrasonic Welding x x
Smart Plastics x
Source: http://www.yeakin-plastic.com/; http://www.fischer.com.sg/; http://www.fuyucorp.com/; http://www.fonstargroup.com/

19. Value Proposition
Thin Wall Moulding
2-Shot Moulding
Source: http://www.fischer.com.sg/
Cosmetic Moulding Technology (CMT)
* Conventional Moulding * C.M.T (Weld Line Eliminated)
* Piano Black Finishing
In-Mould Labelling
Clean Room Process

20. Value Proposition
Smart Plastics
Source: FYP Industrial Collaboration (Fischer-Tech and NUS) Project Report 2013 – An Empirical Approach towards Capacitive Touch-Sensing in Functional Plastics

21. Potential Smart Plastics Application

22. Value Proposition
• Niche Manufacturing Capabilities
▫ C.M.T, Cleanroom, SMART PLASTICS!
• In a ideal position to solve many globalized
problems with their Smart Plastics
▫ Seat Management System
 Food Court, Buses, MRT and etc…
▫ Inventory Warehouse Management

23. Customer Selection
• Four Market Segments
▫ Automotive
▫ Consumer
▫ Computer Peripherals
▫ Medical Health Care
• Has a Diverse Range of Customers
▫ Including keys players in their respective industry

25. Diverse Range of Customers
MARKET
SEGMENT
CUSTOMERS
Automotive
 Lincoln
 Honda
 Nissan
 Bosch
 Siemens VDO
 Stoneridge
 Delphi
 TRW
 Visteon
Consumer
 Cannon
 Oakley
 Apple
 Hewlett Packards
 NEC
 Panasonic
 Pioneer
 JVC
 Bosch
 Sony Ericesson
 Sharp
 Morita
Computer
Peripherals
 Celestica
 Verifone
 Methode Electronics
Medical Health
Care
 Abbott
 Baxter
 Covic
 Terumo
 Menicon

26. Customer Selection - Automotive
• Eg. of product: Climate Control Module,
Speedometer, Dashboard and etc…
• Why Fischer-Tech?
▫ Combination of Smart Plastic with CMT
and IML gives superior aesthetic
appearance and wear resistant
▫ Able to replace conventional door handle,
buttons and lever on the climate control
unit which gives the car a sleek and
futuristic design
▫ Easy maintenance and provide greater
sensitivity (can sense drivers wearing
gloves)

27. Customer Selection – Consumer
• Eg. Integrated MP3 Sunglasses, Electronic
Gadget Housing and even construction of UAV
internal circuitry
• Why Fischer-Tech?
▫ Ideal for consumer wearables (great aesthetic
appearance, good wear resistant ultra thin,
lightweight and strong)
▫ Ergonomic use of resin (Anti-fingerprint and anti
dust surfaces, rubberized exterior) materials to
prevent stains, ensure better gripping and etc.
▫ Smart Plastics save space and reduce weight of
UAV which enables it to increase payload (battery
pack and surveillance).

28. Customer Selection – Com. Peripherals
• Eg. Digital video cameras, keyboard, mouse,
microphone, touchscreen, printers, monitor,
projectors, speakers and etc…
• Why Fischer-Tech?
▫ Combination of Smart Plastic with CMT and
IML gives superior aesthetic appearance and
wear resistant
▫ Ultra thin, light without compromising
strength
▫ Specific use of resin materials such as anti-
fingerprint, noise reduction enables noise
reduction touch keyboard to be in-built in
laptops and keyboards that are meant for
quiet places like library
Noise Reduction Touch Keyboard
Prototype: Desktop Audio Unit

29. Customer Selection - Healthcare
• Eg. Syringes, IV Unit and
many various medical
equipment
• Why Fischer-Tech?
▫ Requires clean room processes
to reduce defects and
contamination

30. Value Chain
Plastic Resin Supplier
Distributi
on
Channels
Plastic
Application
Industries
Fischer
Tech
Functions
• raw material
manufacture
• different resin
manufacture
Functions
• plastic formulation
• convert resin to
plastic product
Functions
• apply the plastic
components to the
final product
Functions
• Distribute the final
product to end
customers
End
Customers
/Users
WahSin

31. Scope of Activities
• Research &Development
▫ Exploring and creating new hybrid resin materials with enhanced
mechanical properties, examples:
 Anti-fingerprint, dust and high temperature resistant plastics and etc…
▫ Exploring new manufacturing techniques to increase production yield
and quality of product
 C.M.T plastics were created by them
▫ Rapid prototyping of their new resin recipe and manufacturing
techniques. Successful trials can be put into mainstream production
 Functional Plastic is one of such example
• Manufacturing
▫ Purchase resin materials from various suppliers to reduce the risk of
being over reliance on one
▫ Bulk purchase, inventory management and standard production
operation

32. Scope of Activities
• Distribution Channel
▫ By relying on their existing customers from the four market
segment for worldwide distribution
• Marketing Strategies
▫ Advertising their company capabilities through engineering
convention shows
 ASEAN SME Showcase & Conference
▫ Online publicity through websites and strong referral from
existing customers
▫ Collaboration with tech-giants to rise the company profile
 Apple. Oakley, Honda and etc…
• Vertical Integration
▫ Does everything from purchasing of resin to the end

33. Value Capture
• Existing Revenue Model
▫ Markup Sales
▫ Quality Assurance

34. Resin Material
FischerSupplier
Corporate
Customer
Existing Revenue Model
$
• Markup Sales
• Quality Assurance
$$$
Quality
Assurance
Plastic
Product

35. Value Capture
• What We Propose
▫ FT to continue their development of Smart Plastics
and embed electronics (wireless module) into them
which would be used in the construction household
appliances
 Enables FT to venture into Internet of Things (IoTs)
 Smart Homes (Air-Con, Ceiling Fans, Light Switches and
etc)
▫ Collaboration with existing and new customers such as
Apple and Samsung
 App Developer (Platform to communicate with household
appliance)
 Manufacturing of hardware (Housing, casing and
accessories for phones)

36. Smart Homes
Smart Plastics
Household
Appliances
Wireless
Communication

37. Plastic
Product
Quality
Assurance
Fischer
Supplier
Corporate
Customer
Proposed Revenue Model
$
Product
Requirements
End
Customer
Market
Data
$$$$$
• Consumer Electronics
Manufacturers
• Apple, Samsung and other
smartphone manufacturers
Resin
Material
Final
Product

38. Strategic Control
• First Mover Advantage:
▫ Technology Leadership (Only firm in the world able to do C.M.T
and Smart Plastics)
• IP Protection:
▫ Patent
▫ Trade Secret
▫ Know-How
• Continuous R&D
▫ Hybrid Resin Materials
▫ Improved Manufacturing Techniques
• Complementary Assets
▫ Already have good knowledge in Smart Plastics and CMT, just
need to hire designers to integrate into consumer appliances
▫ Collaborating with existing network of customers with the use of
FT value-added C.M.T and Smart Plastics

39. IP Protection – Patent
• Fischer Tech Smart Plastics has the greatest
value proposition compared to their other niche
manufacturing capabilities…
• Head of R&D filed for patent in 2011…
▫ Patent Number: 2011076189
▫ Title of Invention: A Method of Making an Electronic Apparatus
Incorporating a Contoured Function Film
▫ Filing Date: 18th Oct 2011
▫ Publication Date: 31st May 2013
▫ Abandoned Date: 6th May 2015 (WHY?)

40. IP Protection – Trade Secret
• Other competitors were unable to pick up the know-
how in the ITO chemical composition to prevent
breakage, how to do a direct imprint on the plastic
and etc.
• Also, it is costly to maintain a patent over the years.
▫ Abandoned it in 6th May 2015
▫ Effectively convert into a Trade Secret (Entry Barriers)
▫ Use as a crucial value proposition of the company

41. IP Protection – Know How
• For C.M.T plastics, only the engineers involved
in this area knows the exact manufacturing
procedures and parameters to set for the
machine
▫ No one is able to attain such flawless plastics in
the market
▫ Use as a crucial value proposition for the company

42. Low Switching Cost (Strategy)
• In the market, no manufacturing companies are
able to produce contoured Smart Plastics
• Cost of Smart Plastics is comparable to
mechanical components such as a button, lever
or switches
• Customers more prone to choose Smart Plastics
due to elegant design, low cost and easy
maintenance