These slides use concepts from my (Jeff Funk) course entitled Technology Management Strategy to analyze the business model for Solar Windows from New Energy Technologies. New Energy Technologies provides a process for transforming existing windows into solar collectors merely by spraying several materials on the windows. With this low cost process, the windows can create electricity with costs and efficiencies that are much lower than those of solar collectors. The value proposition is low cost solar electricity and the main customers are buildings in areas with lots of sunlight such as Dubai. The firm should outsource manufacturing and installation to local firms and make money in licensing. Its patents can be used to protect from imitation.

1. Aw Gan Zik Darrell
Charmaine Ng Ming Min
Choi Chun Ho
Muhammad Arif Bin Salim
Ong Si Hui

2. Content
1.Technology and Company Chosen
2.Value Proposition
3.Customer Selection
4.Scope of Activities
5.Value Capture
6.Strategic Control
7.Summary
Solar Window ™
Customer Selection
Value Proposition
Scope of Activities
Value Capture
Strategic Control

3. New Energy Technologies Background
History
New Energy Technologies, Inc. was first incorporated as Octillion Corp. in the State of Nevada, effective May 5th, 1998.
They are an emerging developer of distributed power generation technologies focusing on Research & Development related to solar energy and kinetic energy.
Their scope of activities includes inventing, designing, engineering and prototyping patent-pending technologies and products for field testing and commercial development.
http://www.newenergytechnologiesinc.com/corporate/about-us

4. Technology Chosen: SolarWindow™
SolarWindow™developed by New Energy Technologies
http://www.newenergytechnologiesinc.com/technology/solarwindow

6. SolarWindow™ -Generating electricity with a Unique Spray-On method 1. Opportunity in using unexploited windows as source of electricity generation. 2. See-through coating is made up ultra small organic solar cells that combine to form 3 ultra thin layers. 3. First layer of transparent coating applied to glass surfaces to make it safe to carry electricity. 4. Second ultra thin semi-transparent layer of chemicals capable of absorbing light energy to create electricity. 5. Third layer allows for transference of electricity.
http://www.newenergytechnologiesinc.com/technology/solarwindow
Electricity Generation Process

7. Advantages of SolarWindow™
Pushing the boundaries of solar-generated electricity
•No extra space needed to be set aside.
•Able to install many in urban areas and create a multiplier effect.
•Works in tandem with conventional solar panels.

8. Advantages of SolarWindow™
SolarWindowTMpreserves building aesthetics
•Highly transparent properties keep the building visually clean.
•Prevents a dull looking glass façade.

9. Advantages of SolarWindow™
Ability to function with low light intensity
•Ability to function and generate electricity 24/7 under ambient light, shady or cloudy conditions.

10. Advantages of SolarWindow™
Reduce carbon footprint for the nation
•By using solar power, it can help the nation to generate electricity to reduce the dependency on non-renewable energy.

11. Value Proposition
WhatdistinguishesNewEnergyTechnologies'SolarWindowTMfromothers?

12. •Unique Spray-On Process allows for cheap manufacturing and fast installation. Low Cost Manufacturing, High Speed Installation•High annual value of electricity produced compared to other thin film solar cells. Energy Savings•Exploiting unused windows as alternative source of electrical energy. Tapping Unused Space
Technology Value Proposition

13. Low Cost Manufacturing, High Speed Installation
Low Cost Manufacturing Process
•The manufacturing cost is low compared to other solar PV technologies that requires expensive and slow manufacturing methods which rely high temperature and vacuum production techniques.
High Speed Installation Process
•Spray-on process is quick and reduces time needed to retrofit or newly install onto any building.
http://www.newenergytechnologiesinc.com/technology/solarwindow

14. •Unique Spray-On Process allows for cheap manufacturing and fast installation. Low Cost Manufacturing, High Speed Installation•High annual value of electricity produced compared to other thin film solar cells. Energy Savings•Exploiting unused windows as alternative source of electrical energy. Tapping Unused Space
Technology Value Proposition

15. Energy Savings
http://www.newenergytechnologiesinc.com/technology/solarwindow. Calculations based on 50-story building.

16. Comparison of Energy Generated
http://www.newenergytechnologiesinc.com/technology/solarwindow

17. •Unique Spray-On Process allows for cheap manufacturing and fast installation. Low Cost Manufacturing, High Speed Installation•High annual value of electricity produced compared to other thin film solar cells. Energy Savings•Exploiting unused windows as alternative source of electrical energy. Tapping Unused Space
Technology Value Proposition

18. Comparison of Alternative –Smart GlassWhat is Smart Glass?
•They are glass and windows that change their light control state and appearance in response to an external stimulus. Why not Smart Glass? •Require replacement of existing glass, incurring high cost. •Do not provide benefits in electricity generation and thus do not allow owners to save on energy costs. •It is not fully transparent thus affecting the aesthetics of the building•Removes the functionality of transparency
http://www.innovativeglasscorp.com/products

19. Summary: Comparison of Alternatives
SolarWindowTM
Conventional Solar panel
Smart Glass
Thin film solar cells
Other transparent solar glass
Act as a compliment product. Not necessary a competitor.
Better efficiencies than other thin film solar cells.
Not transparent, high cost and do not generate electricity.
Not using spraying process, will incur higher cost for installation.
SolarWindowTMmay have lower efficiencies but it has lower installation and manufacturing cost.

20. Customer Selection
WhyandwhoNewEnergyTechnologiesshouldtarget?

21. Connecting customer need with New Energy Technologies’ capability
Require the effective and
efficient reconciliation of
differences
Market Demand
•Need for a green and cost efficient technology.
•Need to preserve the aesthetics of the buildings.
•Need to integrate into the existing country’s urban planning (not using extra land).
New Energy Technologies’ (Company) Provide
•Ability to use organic solar cells which provides much more environmental benefit than other thin-film solar cells.
•Thin and transparent SolarWindowTMallows building aesthetics to be preserved.
Voice of the Market
Voice of the Firm
Market- Based Firm
http://www.glassinthegulf.com/pdfs/MIR-Bowhead-Glass.pdf

22. First customers: Dubai’s glass building owners

23. Diversify sources of energy
Harness light energy in urbanized area
•Although they have a huge amount of oil, oil reserve is running out.
•Need for diversifying energy sources.
•Consistent and high intensity of sunlight in hot desert climate.
•However, they have a lack of suitable land for solar farms due to a large proportion of deserts.
•Need to maximize the use of light energy to harness renewable energy in urbanized (non-desert) lands.
Why Dubai?
http://www.glassinthegulf.com/pdfs/MIR-Bowhead-Glass.pdf

24. Government Support
•Huge oil revenues allow for investment in solar power.
•Expected growth in energy usage in the country.
Why Dubai?
http://www.emirates247.com/business/economy-finance/dubai-s-energy-growth-set-to-be-4-5-by-2030-2012-10-24-1.480330
Preserve the aesthetic appeal of buildings
•Dubai has many glass facades and skyscrapers that create a sleek and clean image.
•Need to integrate renewable solutions with these world renowned architectures.

25. Collaborator: Emirates Glass Company
Company Strength
•One of the largest established glass company in United Arab Emirates.
Going Green
•They promote and enhance the “Green” message of high performance glass in the Gulf.
Economies of Scale
•Large scale production possible in Dubai due to high propensity for glass façade buildings.
http://dxb.emiratesglass.com:90/eglweb/index.php

26. Other potential places?
Potential Markets
Singapore –Many high-rise buildings, similar climate and strong government support.
United States –Strong green culture, strong government support.
Gulf States –similar in financial strength and location to Dubai. New Energy Technologies should collaborate with the glass manufacturers in the respective countries. (e.g. SCHOTT Company)

27. Potential Competitors
http://www.heliatek.com/technologie/organische-photovoltaik/?lang=en ; http://www.ensol.no/
HeliaFilms®
•Interested in Building Integrated Organic PV
•Partnered with AGC Glass of Europe (Glass Manufacturer)
•However, only ~25% transparency
•Requires additional installation of glass to current buildings.
PV-Nano
•Patented thin film PV cell based on Nano-crystal technology.
•Not very transparent currently.
•Still looking for investors to further fund their research.

28. Potential Competitors
http://www.heliatek.com/technologie/organische-photovoltaik/?lang=en ; http://www.ensol.no/ Transparent Solar TechFor Glass Façade Building
SolarWindowTM
PV-Nano
HeliaFilms®

29. Scope of Activities
WhatactivitiesandrelationshipsshouldNewEnergyTechnologieshave?

30. Value Chain of Solar Cell Industry
•Identification of emerging technologies and opportunities
•Research infrastructure
•Developing and managing procedures and knowledge
•Inbound logistics + procurement of raw materials
•Operations + production
•Outbound logistics + storing of manufactured solar glass
•Installation of SolarWindowTM
•Cleaning of SolarWindow ™
•Repair services
Research and Development
Manufacturing
Distribution
After-sales maintenance

31. Focus on R&D
•For the transparent solar cell industry, there is high degree of vertical disintegration work shared among different organizations.
•Out of all activities in the value chain, New Energy Technologies should focus solely on R&D.

32. Why focus on R&D?
Established relationships with universities, research institutions, and commercial partners e.g. U.S. Department of Energy’s National Renewable Energy Laboratory (NREL)
http://www.newenergytechnologiesinc.com/corporate/about-us
Identify technologies and business opportunities on the leading edge of renewable energy innovation.
Use of established research infrastructure owned by research institutions they deal with.
Saving them significant capital which would otherwise be required for other costs.
Able to benefit from leading edge research while employing significantly less capital than conventional organizations.

33. Summary of Scope of Activities
Distributors
After-sale service providers
R&D
Manufacturers
Customers
Money
Money
Money
Money
Service (Cleaning)
Glass Manufacturers will have the rights to manufacture the sprays.
They can leverage on this through 2 methods
•Spraying on to their in-house manufactured glass and sell them (for new buildings).
•Provide spraying services to customers for retrofitting onto existing buildings
Money
Product
(SolarWindowTM)
Product
(SolarWindowTM)
Service (Retrofitting for existing buildings)

34. Value Capture
WhatcanNewEnergyTechnologies’dominantsourcesofrevenuebe?

35. Operation Cost of New Energy Technologies
New Energy Technologies will only need to spend on research and development as their cost.

36. Value Capture Method
OR
Selected established glass manufacturers that New Energy Technologies collaborate with.
Fees from Licensing Spray Technology

37. Strategic Control
How should New Energy Technologies sustain profitability?

38. How to sustain Profitability?
Patents
Continuous and Faster R&D
Strategic Control
Standards

39. Patents
http://www.newenergytechnologiesinc.com/technology/solarwindow
SolarWindowTMPatents
•New Energy Technologies has 42 patents pending for SolarWindowTM.
•Protects New Energy Technologies current production method for SolarWindowTMfor a period of time.
•Allows for legal recourse during acts of illegal copying of similar technology.

40. Improvements to R&D
First Mover Advantage due to high switching cost for SolarWindowTM.
Lock customers in to our technology to create high barriers of entry.
Speed of R&D
First Mover Advantage does not guarantee sustained dominance.
Create SolarWindowTMwith better efficiency for customers retention.
Continuous
Improvement

41. Establishing Closed Standards
Need to standardize installation procedures amongst the collaborators working with New Energy Technologies.
Standardize spraying process by using automated machine to prevent competitors from gaining access to proprietary process.
Focus on closed innovation as a barrier of entry.

42. Summary
Solar Window™ - Generating electricity with a unique Spray- On method
Customer Selection
Value Proposition
Scope of Activities
Value Capture
Strategic Control
Low Cost Manufacturing, High Speed Installation
Energy Savings
Unused Space
Market segment with strong interest in (such as Dubai)
Green and renewable energy
Aesthetics in glass façade buildings
Focus on R&D in a vertically disintegrated industry
Patents
Creating closed standard
Fast and continuous R&D
Licensing spray solution to exclusive manufacturers

43. Questions and Answers