MT5016 – BUSINESS MODELS FOR HI-TECH PRODUCTS

– FISCHER TECH: SMART PLASTICS –

Chong Shen Long Marcus – (A0073907Y)Wong Wai Quen Timothy – (A0073882W)Zhou Ketuo – (A0147177X)

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

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…

Existing Modes of Door System

• 1. Traditional Key

• 2. Card Access

• 3. Biometric Access

▫ 3.1 Voice

▫ 3.2 Retina

▫ 3.3 Fingerprint

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 RequiresKey?

Level ofPhysical 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 VoiceRecognition

NO LOW NO YES AVG HIGH

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

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

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

• How does it work?

iDOOR EASY ACCESS

• How does it work?

iDOOR EASY ACCESS

Magnetic Module

Door Closer

Door Handle

Smart Plastic with

Integrated Circuit

Keyhole

• 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

• 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:

• 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

• 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

Why Fischer-Tech?

• Has the potential to improve standard of living through its niche manufacturing capabilities and their Smart Plastic Technology

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

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/

Competitors Profiling & ComparisonManufacturing / Niche Capabilities

Fischer Tech PteLtd

Yeakin PlasticIndustry Pte Ltd

Fuyu CorporationLtd

Fon Star InternationalTechnology 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 MouldingTechnology

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/

Value PropositionThin 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

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

Potential Smart Plastics Application

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

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

Diverse Range of CustomersMARKET

SEGMENTCUSTOMERS

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

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)

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).

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

Customer Selection - Healthcare

• Eg. Syringes, IV Unit and many various medical equipment

• Why Fischer-Tech?

▫ Requires clean room processes to reduce defects and contamination

Value Chain

Plastic Resin SupplierDistributi

onChannels

PlasticApplicationIndustries

FischerTech

Functions• raw material

manufacture• different resin

manufacture

Functions• plastic formulation• convert resin to

plastic product

Functions• apply the plastic

components to thefinal product

Functions• Distribute the final

product to endcustomers

EndCustomers

/Users

WahSin

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

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

Value Capture

• Existing Revenue Model

▫ Markup Sales

▫ Quality Assurance

Resin Material

FischerSupplier

CorporateCustomer

Existing Revenue Model

$

• Markup Sales

• Quality Assurance

$$$

QualityAssurance

Plastic Product

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)

Smart Homes

Smart PlasticsHousehold Appliances

Wireless Communication

Plastic Product

QualityAssurance

Fischer

Supplier

CorporateCustomer

Proposed Revenue Model

$

Product Requirements

EndCustomer

MarketData

$$$$$

• Consumer Electronics Manufacturers

• Apple, Samsung and other smartphone manufacturers

Resin Material

Final Product

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

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?)

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

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

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