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The Disruptive Potential of Graphene
in the Smart Apparel Industry
by
Joydeep Pal
2
Abstract
This work explores the disruptive potential of Graphene in the smart apparel industry by
applying the Christensen’s theory of disruptive innovation, innovator’s dilemma and
corporate social responsibility approach. The findings from this work suggests that as a
material, Graphene can disrupt the smart apparel industry by providing a low-cost,
environment-friendly, alternative to metallic silver/copper. Graphene inks will boost the
digital inkjet printing technology than the current process in use and ensure a leaner business
model different from the incumbents. A key finding in this work highlights that Graphene
will need more time to mature as a technology and opportunities still exist for the incumbents
to survive the disruption.
3
Table of Contents
ABSTRACT ....................................................................................................................................................... 2
1. INTRODUCTION................................................................................................................................... 4
2. CASE DESCRIPTION .......................................................................................................................... 4
3. CASE STUDY.......................................................................................................................................... 5
3.1. ASSESSING THE DISRUPTIVE CAPABILITY OF GRAPHENE..................................... 5
3.1.1. SUSTAINING INNOVATION BY INCUMBENTS.................................................................. 5
3.1.2. GRAPHENE’S ABILITY TO DISRUPT..................................................................................... 9
3.1.3. WILL GRAPHENE INKS REPLACE THE EXISTING TECHNOLOGY? ...................12
3.1.4. WILL THE NEW TECHNOLOGY CAUSE INCUMBENTS TO FAIL? ........................12
3.2. WHAT ARE THE POSSIBLE SURVIVAL STRATEGIES FOR INCUMBENTS?......13
3.3. IMPACT OF CORPORATE SOCIAL RESPONSIBILITY.................................................13
3.4. SUITABILITY OF CONCEPTUAL FRAMEWORK............................................................14
4. CONCLUSION......................................................................................................................................15
BIBLIOGRAPHY...........................................................................................................................................16
Table of Figures
Figure 1: Adidas Smart Wearables: (a) miCoach, (b) Fit Smart and (c) Climacool NFC
smartsuit. Reproduced from (Swedberg, 2016)....................................................................... 6
Figure 2: Ralph Lauren PoloTech Shirt. Reproduced from (T-Shirt Magazine, 2015)........ 7
Figure 3: Under Armour E39 smart shirt (left) and HealthBox, connected fitness system
(right). Reproduced from (UA Record, 2016) ........................................................................... 8
Figure 4: Athos smart shirt and short. Reproduced from (Mad Apparel, Inc, 2016) .......... 8
Figure 5: Smart apparel industry according to Christensen's theory of disruptive
innovation .............................................................................................................................................11
Index of Tables
Table 1: Comparison of Inks: Advantages and Disadvantages. Based on (Monie, 2012)
(Kamyshny & Magdassi, 2014) (Secor & Hersam, 2016)...................................................... 9
Table 2: Comparison of smart apparel product lines from incumbents.................................10
4
1. Introduction
The wonder material, Graphene, is considered as an ideal candidate to formulate next
generation transparent, flexible technologies (Larousserie, 2013). Graphene with superior
electronic and mechanical properties is prophesied to disrupt the electronics, energy and other
high-tech industries. (Law, 2016) This work explores whether Graphene can disrupt the smart
apparel industry through the lens of Christensen’s theory of disruptive innovation
(Christensen, et al., 2015). Already touted as a disruptive technology, the work also evaluates
Graphene’s impact on the corporate social responsibility (CSR): ‘Doing well by doing good’
(Chernev & Blair, 2015) of both incumbents and disrupters. In addition, the work also utilises
the concept of ‘Innovator’s Dilemma’ (Christensen, 1997) to understand how the incumbents
can survive the wave of disruption.
2. Case Description
The wearable technology market has recently exploded following the introduction of the
smart watches, fitness trackers and smart apparel. Although smart apparel constitute only less
than 1% of the $28.7Bn global wearables market, smart apparel offer personalised data
insights and scope for big data analytics for commercial purpose. The total market size for
smart apparel is forecasted to reach $2Bn by 2019. (Gartner, 2016)
Smart apparels can be easily integrated in your life offering higher degree of innovation in
tracking specific physiological or biometric attribute. Such apparels will appeal to sports,
healthcare and consumer markets among others. (PRNewswire, 2016). Established sports
apparel brands, or high street clothing brands (e.g. Adidas, Under Armour, Athos, Ralph
Lauren) have shown interest in developing smart apparels. While the general notion of
wearing sensors is observed in “going to become mass market” (Dishman, 2015), established
brands are focusing on the high-end market.
5
One major challenge in realising smart apparel remains in the formulation of suitable printing
inks with the required electromechanical performance. Among different conductive inks of
carbon nanotubes, polymers, organic metal complexes or metal nanoparticles, silver based
inks are more popular. However, the higher cost and lower electro-migration behaviour of
silver prevented the widespread application. (Yang & Wang, 2016) Exploiting Graphene’s
unique mechanical and conductive properties, several Graphene based inks have been
successfully applied in printing sensors, conductive patterns and batteries on clothing.
(Torrisi, et al., 2012) (Huang, et al., 2015)
In the following section, the case on whether Graphene will disrupt the existing smart apparel
industry is presented. The case presents secondary research along with quotes from
researchers at The University of Manchester.
3. Case Study
The case about the disruptive potential of graphene is described here employing
Christensen’s theory of disruptive innovation (Christensen, et al., 2015) and evaluating the
behaviours of incumbents and disruptors using the innovator’s dilemma. The corporate social
responsibility angle is also explored to understand how Graphene fits into the scenario.
3.1. Assessing the disruptive capability of Graphene
This section provides a detailed review of the current market evaluating the players,
technology and whether Graphene has the ability to disrupt smart apparel industry through
the lens of Christensen’s framework. (Christensen, et al., 2015).
3.1.1. Sustaining Innovation by Incumbents
This section provides an overview of the current innovations by major players aka
incumbents in the smart apparel industry. The brands selected for this case are Adidas, Ralph
Lauren, Under Armour and Athos which are discussed in details below.
6
Adidas Group, founded in 1949, as a sports business, has continued to grow through
sustained innovations targeting high-end segment of the market. The overarching strategy is
to become a true fast sports company with three core brands: Adidas for athletes, Reebok for
fitness consumer and TaylorMade for golfer. From a shoe company, Adidas has moved on to
sports streetwear in early 2000, to become a fitness lifestyle company. Adidas is focused on
wrist based wearables with its miCoach, Fit Smart and miCoach Smart Run products.
(Stables, 2015) In 2016, Adidas developed Climacool NFC smart race suit for motor sport.
The suits are embedded with NFC RFID tags and priced around $10k including all
accessories. (Henderson, 2016) (Swedberg, 2016)
Figure 1: Adidas Smart Wearables: (a) miCoach, (b) Fit Smart and (c) Climacool NFC smartsuit. Reproduced
from (Swedberg, 2016)
7
Ralph Lauren Corporation, a leader in premium lifestyle products, is continually bringing
sustained innovation since 1967. The business started with ‘Polo’ menswear apparel line and
then subsequently introduced fragrances, womenswear, home and accessories. In 2015, Ralph
Lauren has launched the sensor-laden PoloTech apparel (Figure 2). The smart workout shirt
is woven with silver fibres into the fabric and is priced at $295 each. (Goode, 2015)
Figure 2: Ralph Lauren PoloTech Shirt. Reproduced from (T-Shirt Magazine, 2015)
Under Armour, a multi-billion dollar brand in premium sports apparel, had humble
beginnings in 1996 with the launch of HeatGear® T-shirt. It then went on further to launch
ColdGear® fabric and AllSeasonGear® in 1998, followed by Click-Clack® footwear launch
in 2006 and ArmourE39 electronic shirt in 2013. The E39 smart shirt combined electronic
monitor with the UA compression shirt technology. (Costa, 2013) A company with a track of
sustained innovations, Under Armour has now focused on the connected fitness sector
(Figure 3) by launching a set of UA Band, Scale and Heart Rate chest strap as HealthBox in
2016. (UA Record, 2016)
8
Figure 3: Under Armour E39 smart shirt (left) and HealthBox, connected fitness system (right). Reproduced
from (UA Record, 2016)
Athos, a smart wearable clothing startup business, has raised $35.5Mn within 6 months of
launch in 2015. (Rao, 2015) The smart shirt and short products are tight-fitting sensor based
garments capable of providing biometric information using the Electromyography (EMG)
sensors. (Mad Apparel, Inc, 2016) The EMG sensors are predominantly made with noble
metals electrodes with silver being the favourite choice. (Merlettia, et al., 2009)
Figure 4: Athos smart shirt and short. Reproduced from (Mad Apparel, Inc, 2016)
The following sections involve a thorough analysis of Graphene’s potential to disrupt the
incumbents.
9
3.1.2. Graphene’s ability to disrupt
In this sub-section, we perform a detailed review of Graphene ink and the existing technology
and as illustrated in Table 1, silver ink remain the obvious choice in the current market even
with limitations. Fundamentally, Graphene ink offers a low-cost, highly flexible, conductive
and stable material to be used for printing.
“The performance of the conventional metal based inks, used in the flexible electronics
industry, are not satisfactory in electrical conductivity and printability” (Researcher at
University of Manchester, 2016). Graphene with superior electrical properties and flexibility
opens up new opportunities in the inkjet printing of wearable electronics. (Afroz, et al., 2016)
Table 1: Comparison of Inks: Advantages and Disadvantages. Based on (Monie, 2012) (Kamyshny & Magdassi,
2014) (Secor & Hersam, 2016)
Even though Graphene ink is still under development, printed electronics companies like
Novalia Ltd., mixed commercially available carbon inks with graphene ink to improve
10
conductivity. Such hybrid inks, costing only ~10% of silver inks, provide alternative to silver
inks. (Printed Electronics World, 2013) (Savastano, 2014)
However, it is early days for Graphene ink and the current limitations of Graphene ink
(Kamyshny & Magdassi, 2014) in multiple printing of layers due to lower concentration and
variation in electrical resistivity after annealing needs to be resolved.
Though disruptive innovation is often associated with a new technology which will displace
the existing technology, the business models actually creates the distinction (Christensen, et
al., 2015).
Table 2: Comparison of smart apparel product lines from incumbents.
The major market players (Adidas, Ralph Lauren, Under Armour and Athos) in the smart
apparel industry (Table 2) are focused on either the high-end, premium market or a targeted
market segment (fitness consumers or athletes).
While the current sensor based technology is limited by the expensive raw material cost,
Graphene can be the game changer by being a better alternative in affordability and product
features. The low-end of the market (Figure 5) is currently not catered and the huge
opportunity can be accessed with the inexpensive Graphene ink based smart apparel.
11
Figure 5: Smart apparel industry according to Christensen's theory of disruptive innovation
Graphene Enabled Systems Ltd, a new business created and owned by The University of
Manchester, is targeted to apply graphene and other 2d materials on to components using
inkjet printing systems (Graphene Enabled Systems, 2016).
Adidas, Ralph Lauren and Under Armour are the obvious choice as incumbents with
multi-billion dollar turnover and focusing on its target customers by providing new set of
sustained innovation. Athos, on the other hand, started as a disrupter to the above incumbents
as well as the wearable device market by launching the Athos smart shirt. Even Athos now
started offering the full body kit at an expensive price.
This now boils down to the find the answer to the question of whether Graphene can disrupt
the smart apparel industry. According to Christensen’s definition, disruptive innovation
should have two features (a) to displace existing technology and (b) to displace current
market players. The following sub-sections highlight the analysis and recommendation.
12
3.1.3. Will Graphene inks replace the existing technology?
The Graphene ink technology will need more time to reach its state of maturity and is
currently under development. The common barriers to entry for Graphene technologies
include mass production of quality Graphene products at affordable cost. (Shapira, et al.,
2016) However, as already mentioned before, low-cost Graphene based hybrid inks are being
marketed as an alternative to Silver inks. (Printed Electronics World, 2013) Although of
lower quality, these hybrid inks can help in capturing the low-end foothold of the market. In
addition, Gartner currently recognised Graphene at the peak of inflated hype among the
semiconductor and electronic technologies. (Teng, 2016) This hype in the industry will help
Graphene to overcome the barrier and enter the low-end of the market.
Once the technology matures in future, Graphene can replace the existing expensive metal
ink technology in the lower-end and mainstream market; while premium products will keep
using the expensive Silver/Copper ink technology.
3.1.4. Will the new technology cause incumbents to fail?
We also need to consider the business model associated with the new technology to
understand the impact on the incumbent’s business. Currently, the state of smart apparel
utilises mainly either (a) Weaving metal wires or conductive threads into the textile, (b)
deposition/coating of conductive polymers or, (c) printing conductive inks. (Hunt, et al.,
2015). While the current market players are utilising the either of the first two techniques,
Graphene ink will usher in the rise of the digital inkjet printing for the smart apparel industry
(University of Borås, 2015). This would entail a much different and leaner business model
(European Commission, 2012) compared to the popular techniques in use and cause the
incumbents to fail in the long term.
13
3.2. What are the possible survival strategies for Incumbents?
In this age of disruptive innovation, the incumbents find it harder to adapt to the changes in
the business environment. This is when the innovator’s dilemma starts as Christensen
suggested in 1997. The incumbents fail to respond normally even though they are capable to
disrupt the market. The key survival strategies for the incumbents in this case are:
(a) Invest in research and development inside or outside the organisation.
(b) Identify and develop collaborations with leading research institutes to co-develop new
Graphene ink technology into commercial products.
(c) Acquisition of early start-ups is a viable option in the wearable industry. (e.g. Under
Armour has already acquired both “Endomondo” and “MyFitnessPal” to extend its
smart wearable offering to the customers (Williams, 2015)).
(d) Join or launch an incubator to stay ahead of the curve and benefit from the portfolio
of intellectual property generated from the development.
As the recent Gartner “hype cycle report for wearable devices” (McIntyre & Reinhart, 2016)
highlighted “Smart Garments” with “on the rise” hype status, the incumbents still have time
to act upon in the next few years or get disrupted.
3.3. Impact of Corporate Social Responsibility
The CSR approach of “doing well by doing good” is concurrent with current stress on using
the organic, biodegradable, environmental-friendly materials worldwide. While producing
apparels with metallic silver and copper requires harmful chemical solvents (SHAPE
Magazine, 2015) with the products not readily washable, Graphene offers the ideal solution.
Graphene inks are organic, highly biocompatible and involve lower carbon footprint in the
process. Graphene can exploit this CSR aspect to boost the disruption process of the smart
apparel industry.
14
3.4. Suitability of Conceptual Framework
The Graphene based ink business fit well to the Christensen’s theory of disruptive innovation
as it is disrupting the market by entering the low-end foothold with a different business
model.
Interestingly, Athos can be seen as a disruptor to the incumbents of the likes of Adidas, Ralph
Lauren and Under Armour. However, Athos started off by targeting the mainstream
customers and not focusing the low-end foothold of the market. Thus, similar to Uber, Athos
would not be seen as a disruptor by Christensen. Although if we only look at the consumer
fitness market segment, which covers primarily middle to high class customers, segmentation
would reveal Athos targeting the low-end of that segment. Thus, the low-end, mainstream
and high-end segment of the market is subjective and can be based on individual judgement.
This matches with the finding (MIT Sloan, 2015) that “Many of the Christensen theory’s
exemplary cases did not fit its key conditions and predictions well and that several
assumptions limit the application or predictive power of the theory of disruptive innovation”.
The innovator’s dilemma highlights the causes of failure for the incumbents, which helped to
identify survival strategies for the incumbents in this work.
The CSR “doing well by doing good” is a well established approach and is a great tool in
thinking about the societal impact. In this work, the CSR aspect fitted well with the
environmental impact in question. However, the CSR framework is not suitable to be used in
assessing every disruptive innovation due to absence of direct societal impact.
15
4. Conclusion
In summary, Graphene ink has the potential to disrupt the incumbents in the smart apparel
industry. Graphene with its organic, biodegradable, environment friendly properties will
provide the ideal alternative to the expensive silver/copper ink when the technology matures.
In the short term, Graphene based hybrid ink can capture the low-end foothold of the market.
Such hybrid ink will disrupt the smart apparel industry with a much leaner business model
using the inkjet printing technique. As the hype for smart apparels have started to rise, the
incumbents can still survive the disruptive wave, if they take the steps as identified in this
work.
16
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The disruptive potential of graphene in the smart apparel industry

  • 1. The Disruptive Potential of Graphene in the Smart Apparel Industry by Joydeep Pal
  • 2. 2 Abstract This work explores the disruptive potential of Graphene in the smart apparel industry by applying the Christensen’s theory of disruptive innovation, innovator’s dilemma and corporate social responsibility approach. The findings from this work suggests that as a material, Graphene can disrupt the smart apparel industry by providing a low-cost, environment-friendly, alternative to metallic silver/copper. Graphene inks will boost the digital inkjet printing technology than the current process in use and ensure a leaner business model different from the incumbents. A key finding in this work highlights that Graphene will need more time to mature as a technology and opportunities still exist for the incumbents to survive the disruption.
  • 3. 3 Table of Contents ABSTRACT ....................................................................................................................................................... 2 1. INTRODUCTION................................................................................................................................... 4 2. CASE DESCRIPTION .......................................................................................................................... 4 3. CASE STUDY.......................................................................................................................................... 5 3.1. ASSESSING THE DISRUPTIVE CAPABILITY OF GRAPHENE..................................... 5 3.1.1. SUSTAINING INNOVATION BY INCUMBENTS.................................................................. 5 3.1.2. GRAPHENE’S ABILITY TO DISRUPT..................................................................................... 9 3.1.3. WILL GRAPHENE INKS REPLACE THE EXISTING TECHNOLOGY? ...................12 3.1.4. WILL THE NEW TECHNOLOGY CAUSE INCUMBENTS TO FAIL? ........................12 3.2. WHAT ARE THE POSSIBLE SURVIVAL STRATEGIES FOR INCUMBENTS?......13 3.3. IMPACT OF CORPORATE SOCIAL RESPONSIBILITY.................................................13 3.4. SUITABILITY OF CONCEPTUAL FRAMEWORK............................................................14 4. CONCLUSION......................................................................................................................................15 BIBLIOGRAPHY...........................................................................................................................................16 Table of Figures Figure 1: Adidas Smart Wearables: (a) miCoach, (b) Fit Smart and (c) Climacool NFC smartsuit. Reproduced from (Swedberg, 2016)....................................................................... 6 Figure 2: Ralph Lauren PoloTech Shirt. Reproduced from (T-Shirt Magazine, 2015)........ 7 Figure 3: Under Armour E39 smart shirt (left) and HealthBox, connected fitness system (right). Reproduced from (UA Record, 2016) ........................................................................... 8 Figure 4: Athos smart shirt and short. Reproduced from (Mad Apparel, Inc, 2016) .......... 8 Figure 5: Smart apparel industry according to Christensen's theory of disruptive innovation .............................................................................................................................................11 Index of Tables Table 1: Comparison of Inks: Advantages and Disadvantages. Based on (Monie, 2012) (Kamyshny & Magdassi, 2014) (Secor & Hersam, 2016)...................................................... 9 Table 2: Comparison of smart apparel product lines from incumbents.................................10
  • 4. 4 1. Introduction The wonder material, Graphene, is considered as an ideal candidate to formulate next generation transparent, flexible technologies (Larousserie, 2013). Graphene with superior electronic and mechanical properties is prophesied to disrupt the electronics, energy and other high-tech industries. (Law, 2016) This work explores whether Graphene can disrupt the smart apparel industry through the lens of Christensen’s theory of disruptive innovation (Christensen, et al., 2015). Already touted as a disruptive technology, the work also evaluates Graphene’s impact on the corporate social responsibility (CSR): ‘Doing well by doing good’ (Chernev & Blair, 2015) of both incumbents and disrupters. In addition, the work also utilises the concept of ‘Innovator’s Dilemma’ (Christensen, 1997) to understand how the incumbents can survive the wave of disruption. 2. Case Description The wearable technology market has recently exploded following the introduction of the smart watches, fitness trackers and smart apparel. Although smart apparel constitute only less than 1% of the $28.7Bn global wearables market, smart apparel offer personalised data insights and scope for big data analytics for commercial purpose. The total market size for smart apparel is forecasted to reach $2Bn by 2019. (Gartner, 2016) Smart apparels can be easily integrated in your life offering higher degree of innovation in tracking specific physiological or biometric attribute. Such apparels will appeal to sports, healthcare and consumer markets among others. (PRNewswire, 2016). Established sports apparel brands, or high street clothing brands (e.g. Adidas, Under Armour, Athos, Ralph Lauren) have shown interest in developing smart apparels. While the general notion of wearing sensors is observed in “going to become mass market” (Dishman, 2015), established brands are focusing on the high-end market.
  • 5. 5 One major challenge in realising smart apparel remains in the formulation of suitable printing inks with the required electromechanical performance. Among different conductive inks of carbon nanotubes, polymers, organic metal complexes or metal nanoparticles, silver based inks are more popular. However, the higher cost and lower electro-migration behaviour of silver prevented the widespread application. (Yang & Wang, 2016) Exploiting Graphene’s unique mechanical and conductive properties, several Graphene based inks have been successfully applied in printing sensors, conductive patterns and batteries on clothing. (Torrisi, et al., 2012) (Huang, et al., 2015) In the following section, the case on whether Graphene will disrupt the existing smart apparel industry is presented. The case presents secondary research along with quotes from researchers at The University of Manchester. 3. Case Study The case about the disruptive potential of graphene is described here employing Christensen’s theory of disruptive innovation (Christensen, et al., 2015) and evaluating the behaviours of incumbents and disruptors using the innovator’s dilemma. The corporate social responsibility angle is also explored to understand how Graphene fits into the scenario. 3.1. Assessing the disruptive capability of Graphene This section provides a detailed review of the current market evaluating the players, technology and whether Graphene has the ability to disrupt smart apparel industry through the lens of Christensen’s framework. (Christensen, et al., 2015). 3.1.1. Sustaining Innovation by Incumbents This section provides an overview of the current innovations by major players aka incumbents in the smart apparel industry. The brands selected for this case are Adidas, Ralph Lauren, Under Armour and Athos which are discussed in details below.
  • 6. 6 Adidas Group, founded in 1949, as a sports business, has continued to grow through sustained innovations targeting high-end segment of the market. The overarching strategy is to become a true fast sports company with three core brands: Adidas for athletes, Reebok for fitness consumer and TaylorMade for golfer. From a shoe company, Adidas has moved on to sports streetwear in early 2000, to become a fitness lifestyle company. Adidas is focused on wrist based wearables with its miCoach, Fit Smart and miCoach Smart Run products. (Stables, 2015) In 2016, Adidas developed Climacool NFC smart race suit for motor sport. The suits are embedded with NFC RFID tags and priced around $10k including all accessories. (Henderson, 2016) (Swedberg, 2016) Figure 1: Adidas Smart Wearables: (a) miCoach, (b) Fit Smart and (c) Climacool NFC smartsuit. Reproduced from (Swedberg, 2016)
  • 7. 7 Ralph Lauren Corporation, a leader in premium lifestyle products, is continually bringing sustained innovation since 1967. The business started with ‘Polo’ menswear apparel line and then subsequently introduced fragrances, womenswear, home and accessories. In 2015, Ralph Lauren has launched the sensor-laden PoloTech apparel (Figure 2). The smart workout shirt is woven with silver fibres into the fabric and is priced at $295 each. (Goode, 2015) Figure 2: Ralph Lauren PoloTech Shirt. Reproduced from (T-Shirt Magazine, 2015) Under Armour, a multi-billion dollar brand in premium sports apparel, had humble beginnings in 1996 with the launch of HeatGear® T-shirt. It then went on further to launch ColdGear® fabric and AllSeasonGear® in 1998, followed by Click-Clack® footwear launch in 2006 and ArmourE39 electronic shirt in 2013. The E39 smart shirt combined electronic monitor with the UA compression shirt technology. (Costa, 2013) A company with a track of sustained innovations, Under Armour has now focused on the connected fitness sector (Figure 3) by launching a set of UA Band, Scale and Heart Rate chest strap as HealthBox in 2016. (UA Record, 2016)
  • 8. 8 Figure 3: Under Armour E39 smart shirt (left) and HealthBox, connected fitness system (right). Reproduced from (UA Record, 2016) Athos, a smart wearable clothing startup business, has raised $35.5Mn within 6 months of launch in 2015. (Rao, 2015) The smart shirt and short products are tight-fitting sensor based garments capable of providing biometric information using the Electromyography (EMG) sensors. (Mad Apparel, Inc, 2016) The EMG sensors are predominantly made with noble metals electrodes with silver being the favourite choice. (Merlettia, et al., 2009) Figure 4: Athos smart shirt and short. Reproduced from (Mad Apparel, Inc, 2016) The following sections involve a thorough analysis of Graphene’s potential to disrupt the incumbents.
  • 9. 9 3.1.2. Graphene’s ability to disrupt In this sub-section, we perform a detailed review of Graphene ink and the existing technology and as illustrated in Table 1, silver ink remain the obvious choice in the current market even with limitations. Fundamentally, Graphene ink offers a low-cost, highly flexible, conductive and stable material to be used for printing. “The performance of the conventional metal based inks, used in the flexible electronics industry, are not satisfactory in electrical conductivity and printability” (Researcher at University of Manchester, 2016). Graphene with superior electrical properties and flexibility opens up new opportunities in the inkjet printing of wearable electronics. (Afroz, et al., 2016) Table 1: Comparison of Inks: Advantages and Disadvantages. Based on (Monie, 2012) (Kamyshny & Magdassi, 2014) (Secor & Hersam, 2016) Even though Graphene ink is still under development, printed electronics companies like Novalia Ltd., mixed commercially available carbon inks with graphene ink to improve
  • 10. 10 conductivity. Such hybrid inks, costing only ~10% of silver inks, provide alternative to silver inks. (Printed Electronics World, 2013) (Savastano, 2014) However, it is early days for Graphene ink and the current limitations of Graphene ink (Kamyshny & Magdassi, 2014) in multiple printing of layers due to lower concentration and variation in electrical resistivity after annealing needs to be resolved. Though disruptive innovation is often associated with a new technology which will displace the existing technology, the business models actually creates the distinction (Christensen, et al., 2015). Table 2: Comparison of smart apparel product lines from incumbents. The major market players (Adidas, Ralph Lauren, Under Armour and Athos) in the smart apparel industry (Table 2) are focused on either the high-end, premium market or a targeted market segment (fitness consumers or athletes). While the current sensor based technology is limited by the expensive raw material cost, Graphene can be the game changer by being a better alternative in affordability and product features. The low-end of the market (Figure 5) is currently not catered and the huge opportunity can be accessed with the inexpensive Graphene ink based smart apparel.
  • 11. 11 Figure 5: Smart apparel industry according to Christensen's theory of disruptive innovation Graphene Enabled Systems Ltd, a new business created and owned by The University of Manchester, is targeted to apply graphene and other 2d materials on to components using inkjet printing systems (Graphene Enabled Systems, 2016). Adidas, Ralph Lauren and Under Armour are the obvious choice as incumbents with multi-billion dollar turnover and focusing on its target customers by providing new set of sustained innovation. Athos, on the other hand, started as a disrupter to the above incumbents as well as the wearable device market by launching the Athos smart shirt. Even Athos now started offering the full body kit at an expensive price. This now boils down to the find the answer to the question of whether Graphene can disrupt the smart apparel industry. According to Christensen’s definition, disruptive innovation should have two features (a) to displace existing technology and (b) to displace current market players. The following sub-sections highlight the analysis and recommendation.
  • 12. 12 3.1.3. Will Graphene inks replace the existing technology? The Graphene ink technology will need more time to reach its state of maturity and is currently under development. The common barriers to entry for Graphene technologies include mass production of quality Graphene products at affordable cost. (Shapira, et al., 2016) However, as already mentioned before, low-cost Graphene based hybrid inks are being marketed as an alternative to Silver inks. (Printed Electronics World, 2013) Although of lower quality, these hybrid inks can help in capturing the low-end foothold of the market. In addition, Gartner currently recognised Graphene at the peak of inflated hype among the semiconductor and electronic technologies. (Teng, 2016) This hype in the industry will help Graphene to overcome the barrier and enter the low-end of the market. Once the technology matures in future, Graphene can replace the existing expensive metal ink technology in the lower-end and mainstream market; while premium products will keep using the expensive Silver/Copper ink technology. 3.1.4. Will the new technology cause incumbents to fail? We also need to consider the business model associated with the new technology to understand the impact on the incumbent’s business. Currently, the state of smart apparel utilises mainly either (a) Weaving metal wires or conductive threads into the textile, (b) deposition/coating of conductive polymers or, (c) printing conductive inks. (Hunt, et al., 2015). While the current market players are utilising the either of the first two techniques, Graphene ink will usher in the rise of the digital inkjet printing for the smart apparel industry (University of Borås, 2015). This would entail a much different and leaner business model (European Commission, 2012) compared to the popular techniques in use and cause the incumbents to fail in the long term.
  • 13. 13 3.2. What are the possible survival strategies for Incumbents? In this age of disruptive innovation, the incumbents find it harder to adapt to the changes in the business environment. This is when the innovator’s dilemma starts as Christensen suggested in 1997. The incumbents fail to respond normally even though they are capable to disrupt the market. The key survival strategies for the incumbents in this case are: (a) Invest in research and development inside or outside the organisation. (b) Identify and develop collaborations with leading research institutes to co-develop new Graphene ink technology into commercial products. (c) Acquisition of early start-ups is a viable option in the wearable industry. (e.g. Under Armour has already acquired both “Endomondo” and “MyFitnessPal” to extend its smart wearable offering to the customers (Williams, 2015)). (d) Join or launch an incubator to stay ahead of the curve and benefit from the portfolio of intellectual property generated from the development. As the recent Gartner “hype cycle report for wearable devices” (McIntyre & Reinhart, 2016) highlighted “Smart Garments” with “on the rise” hype status, the incumbents still have time to act upon in the next few years or get disrupted. 3.3. Impact of Corporate Social Responsibility The CSR approach of “doing well by doing good” is concurrent with current stress on using the organic, biodegradable, environmental-friendly materials worldwide. While producing apparels with metallic silver and copper requires harmful chemical solvents (SHAPE Magazine, 2015) with the products not readily washable, Graphene offers the ideal solution. Graphene inks are organic, highly biocompatible and involve lower carbon footprint in the process. Graphene can exploit this CSR aspect to boost the disruption process of the smart apparel industry.
  • 14. 14 3.4. Suitability of Conceptual Framework The Graphene based ink business fit well to the Christensen’s theory of disruptive innovation as it is disrupting the market by entering the low-end foothold with a different business model. Interestingly, Athos can be seen as a disruptor to the incumbents of the likes of Adidas, Ralph Lauren and Under Armour. However, Athos started off by targeting the mainstream customers and not focusing the low-end foothold of the market. Thus, similar to Uber, Athos would not be seen as a disruptor by Christensen. Although if we only look at the consumer fitness market segment, which covers primarily middle to high class customers, segmentation would reveal Athos targeting the low-end of that segment. Thus, the low-end, mainstream and high-end segment of the market is subjective and can be based on individual judgement. This matches with the finding (MIT Sloan, 2015) that “Many of the Christensen theory’s exemplary cases did not fit its key conditions and predictions well and that several assumptions limit the application or predictive power of the theory of disruptive innovation”. The innovator’s dilemma highlights the causes of failure for the incumbents, which helped to identify survival strategies for the incumbents in this work. The CSR “doing well by doing good” is a well established approach and is a great tool in thinking about the societal impact. In this work, the CSR aspect fitted well with the environmental impact in question. However, the CSR framework is not suitable to be used in assessing every disruptive innovation due to absence of direct societal impact.
  • 15. 15 4. Conclusion In summary, Graphene ink has the potential to disrupt the incumbents in the smart apparel industry. Graphene with its organic, biodegradable, environment friendly properties will provide the ideal alternative to the expensive silver/copper ink when the technology matures. In the short term, Graphene based hybrid ink can capture the low-end foothold of the market. Such hybrid ink will disrupt the smart apparel industry with a much leaner business model using the inkjet printing technique. As the hype for smart apparels have started to rise, the incumbents can still survive the disruptive wave, if they take the steps as identified in this work.
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