a business case study of producing nano particles for anti-counterfeit
DESCRIPTION
In Apr 2014, MIT announced the research result of addoping Nano Particles for Anti-Counterfeit. A group HKUST students did a case study of producing such particles with the reference to the of manufacturing data from Dong Guan, China. The study covers the aspect of marketing, demand analysis, two-sided platform, cost and pofit analysis, as well as challenge of business.TRANSCRIPT
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ISOM 5480 Information and Entrepreneurship Management[Spring 2014] <<Project Nano>>Anti-Counterfeit using Nanoparticles
Albert Hui Ben Mak Johnny ChowJoseph Man Safiya Yu Sam Fu
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http://bambooinnovator.com/2013/12/30/some-shops-and-atms-in-hong-kong-started-to-refuse-hk1000-us130-banknotes-after-police-found-several-counterfeit-notes-and-arrested-suspects/
Fake Currency
❖ Will you now take a BOC $1000 note?
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http://paper.wenweipo.com/2014/04/03/HK1404030028.htm
Fake Designer Bags, Branded Watch, Drugs, etc...
❖ How will you verify the famous branded products when shopping?
HK Government has prosecuted over 1 thousands fake products in April 2014, including bags, watches, sun-glasses, phone accessories. The affected brands including COACH, CHANNEL, LV, PRADA, ROLEX, etc, and listed price ranges from $10Ks to $100Ks. The target customer group would be mainly tourist.
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Existing Anti-Counterfeiting Technologies
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At Apr 2014, MIT discovered...
http://newsoffice.mit.edu/2014/tiny-particles-could-help-verify-goods
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Periodic Table
❖ ytterbium❖ gadolinium
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How Our Manufacturing Process Work ?
Sources : http://www.fi.tartu.ee/~jevgenis/Articles/Continuous-flow%20lithography%20for%20high-throughput%20microparticle%20synthesis.pdf
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The technological strengths...
❖ Consumer Usability (via special lens integrated with smart phone)
❖ Imitation Prevention(proprietary technology)
❖ Invisibility(only be visible under near infrared environment)
❖ Massive Encoding Capacity(can have up to 1 million colour combinations)
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There could be huge demand...
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ONE Solution for ALL
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Potential Business Opportunities Comes
● Hand Bags / Luxury Goods● Pharmaceutical / Drugs● Currency / Bank Notes● Credit Cards● Passports● Art Pieces / Antiques
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Market Analysis - Pharmaceutical / Drugs
Source: Bloomberg Finance 2014, from Symphony Health Solutions
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Market Analysis - Luxury Goods
Source: Bloomberg Finance 2014
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Market Analysis - Credit Cards
sources: Nelson Report / The US Censes Bureau / The Federal Reserves/HKMA/China Bank Association
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Market Analysis - Passports
Sources : U.S. Department of Stateccc
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How to drive the demand initially?
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Multi-sided Platform
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What will be the margin?
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Material Costs
Source: Alibaba.com and Team Analyis
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Cost of Production
✓ Manufacturing Cost is unexpectedly low
Team Analysis base on a real P&L of a manufacturing company
Monthly Fixed Cost
Monthly Variable Cost, assuming 20 machines, producing 5 per min (low efficiency) at start
Monthly Variable Cost, assuming 20 machines, producing 20 per min (improved efficiency) at later stage
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Price and Profit
✓ Huge Margin is generated
Team Analysis base on a real P&L of a manufacturing company
Assume giving away 200 lense per month, extra cost of $6.4K which may not be affecting the profit much.
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Initial Investment & Payback
✓ Payback is quick
Team Analysis base on a real P&L of a manufacturing company
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Any Operation Challenge?
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Inconvenience
● Need to improve the size of the lense before product can be popular for consumers.
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Operation Improvement
● Operation Process Improvement○ Increase margin (Reduce Operation Cost)○ Maintain Production Capacity Utilization ○ Increase Production Efficiency
● Production Efficiency○ Due to economy of scale
● Quality Assurance/Control○ Reduce defects/scrap
● Explore Markets and Grow Demands○ Potential Marketing Research○ Product Promotion○ Consumer Education
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Business Sustainability
● Value-added encoding feature● Target one segment before expansion● License Patent ● Partnership for Global Business
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Q&A