TruTouch Alcohol Detector: a business model

Post on 10-May-2015

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These slides use ideas from my (Jeff Funk) class to develop a business model for the TruTouch Alcolol Detector. This detector uses near-infrared spectroscopy to measure the amount of alcohol in a person’s blood. Early adopting customers include safety-critical workplaces and businesses that sell alcohol. The value proposition includes fewer workplace accidents and fewer sales of alcohol to intoxicated individuals. TruTouch can profit from this product through both selling and leasing the product and using its patents to prevent copiers from entering the market.

Transcript of TruTouch Alcohol Detector: a business model

MT4002

TruTouchTM non-invasive

alcohol detection

Charmaine

Kim

Kivaan

Lingjun

2. Value Proposition &Customer Selection

3. Scope of Activities

4. Value Capture

5. Strategic Control

1. Introduction

2. Value Proposition &Customer Selection

3. Scope of Activities

4. Value Capture

5. Strategic Control

1. Introduction

Alcosense TrutouchTM 2500

Optical alcohol detection device

Alcosense TrutouchTM 2500

Technology ● Near-infrared spectroscopy ● Scan through skin ● Detects identity using unique

biometrics of each individual

2. Value Proposition &Customer Selection

3. Scope of Activities

4. Value Capture

5. Strategic Control

1. Introduction

Safety-Critical

Workplaces

Product Sales

Vehicle

Manufacturers

Licensing

Overview of Customer Selection

e.g. Europe, US, Australia, Russia

Regular

Workplaces

Liquor Point of sale

Safety-Critical Workplaces

40% of workplace accidents

involve alcohol.

Current detection method is

inadequate.

Safety-Critical Workplaces

Usage: Entry-point testing for workers

Bar entry to alcohol-impaired workers

Biometric check-in and security clearance

Safety-Critical Workplaces

Reduce injuries, costs

and downtime

resulting from alcohol-

related accidents

Improve safety record to

help clinch business

deals and meet

government regulations

Identity Testing

Value Proposition

Safety-Critical Workplaces

Safety Managers

Operation Manager

Head of Human Resources

Regular workplace

Alcohol-related productivity losses cost Europe and US more than 150bn per year

Negatively affected co-workers

relationships

Regular workplace

Usage: Entry-point testing for workers

Supervisors will be notified

Deters workers from reporting to

work drunk or hangover.

Regular workplace

Improve employee

productivity and reduce

absenteeism

Reduce costly mistakes

Reduce alcohol related

healthcare and insurance

costs Value Proposition

Regular workplace

Head of Human resources

Liquor point-of-sale Establishments

Liquor establishments can

if caught serving alcohol to an

intoxicated person

Usage

Test patrons who appear intoxicated to determine whether or not to serve more alcohol to them

Liquor point-of-sale Establishments

Value Proposition

Protect themselves against liability and legal action

Restaurant

Bar &Pub

Convenient stores

Liquor point-of-sale Establishments

Usage

In-vehicle alcohol testing;

linked to ignition control

Vehicle Manufacturers

Value Proposition

Vehicle Manufacturers

Additional feature to differentiate vehicle

to final customer

Safety of vehicle user and third parties

• Company Purchasing dept

• Concerned family members

• Car rental companies

Strategic comparison of customer segments

Workplace Liquor POS Vehicle

Size of market Large Moderate Large

Barriers to entry High Low High

Govt support Moderate Moderate High

Competitors None Breathalyser (Coin-operated)

Breathalyser; New tech

Suitability of TruTouch

High Too costly at low volumes

Still in R&D

1st focus 2nd focus

Blood/Hair/Urine/

Saliva testing

• Long processing time

Breathalyzer

Breath testing

• Accurate

• Short processing time

• Invasive

Future Competitors

Scram CAM

Transdermal continuous testing

• Accurate

• Moderate processing time

• Invasive

Non-competitors

Visual Observation & Questioning

• Not accurate

• Not comprehensive

• No deterrence effect

Current competitor

Strategy Canvas - Workplace

High

Low

TruTouch

Breathalyzer

Scram CAM

TruTouch

Breathalyzer

Scram CAM

Strategy Canvas - Workplace

High

Low $1.50 /test

$0.25 /test

$0.01 /test

Strategy Canvas - Workplace

High

Low 25 sec

14 sec

8 sec TruTouch

Breathalyzer

Scram CAM

Strategy Canvas - Workplace

High

Low

TruTouch

Breathalyzer

Scram CAM

TruTouch

Breathalyzer

Scram CAM

Strategy Canvas - Workplace

High

Low ?

96 %

96 %

TruTouch

Breathalyzer

Scram CAM

Strategy Canvas - Workplace

High

Low None so far

Face recognition

Integral

What makes TruTouch special?

Fast

Dignified

Accurate

Cost-effective

Doubles as identification

testing

Able to test all

workers daily

2. Value Proposition &Customer Selection

3. Scope of Activities

4. Value Capture

5. Strategic Control

1. Introduction

Scope of Activities

Manufacturer

product

Distributor Consumers

product

product

TruTouch

R&D

rights

$$

Vehicle

Manufacturers

$

$$ $$$

Scope of Activities

Consumers

Manufacturer

Non-profit Government

Marketing &

Lobbying

Data

TruTouch

R&D

Service

Reputation &

regulations rights

$

$$

$$$

$$

Vehicle

Manufacturers

Aftercare

Distributor

Service

Reputation &

regulations

$$ (R&D)

Relationship with Distributor

TruTouch current distributors

• Distributors of alcohol detection devices

Our Proposed Distributors

• Access control

• Doors and locks

Ensure ease of integration

Partnership

TruTouch Access control

company

Leverage on customer base of distributors

Relationship with Distributor

Combined sales packages: door locks plus TruTouch

TruTouch train distributors in basic after-sales support

TruTouch and R&D

• TruTouch is an R&D and integration firm • In-house hardware and software design • E.g.

•Alcohol use

•Biometric attendance

Relationships in R&D

• Cooperation with Takata for development of in-vehicle alcohol testing

Takata • Auto-parts firm

Aim: “a day with zero fatalities due to traffic accidents” • Well-aligned objectives

Relationship with government/non-profit

TruTouch lobby government for tighter workplace and vehicle alcoholism control • Supported by data from

customers • Collaborate with NGOs

• Influence the tightening of regulatory changes

• Contact with opinion leaders in society

• USD $3 mil in research grants

2. Value Proposition &Customer Selection

3. Scope of Activities

4. Value Capture

5. Strategic Control

1. Introduction

Value Capture Leasing or sale

Maintenance costs waived for leasing but not for sale

money

right

Vehicle

Manufacturers

Consumers

product

Manufacturers of access

control systems

Royalties

money

right

Royalties

money

2. Value Proposition &Customer Selection

3. Scope of Activities

4. Value Capture

5. Strategic Control

1. Introduction

Strategic Control-

Key means of strategic control: Patents

Patents covering the technology and different applications

Technology to

determine analyte

properties and

identity of subject

Application in an

interlock/control

system for

vehicles or

machinery

Entire system

of control

• TruTouch can use real data from workplaces and point of sale venues to lobby for tighter government regulations on alcohol, and also to apply for government research grants

• Real data also allows TruTouch to present a stronger business case to potential customers

Strategic Control-

Exclusive relationship with

• Access control/ door and lock companies

• Takata auto parts manufacturers

Brand name

• Frequent workplace use will expose public to TruTouch

• Known to opinion leaders in government

Strategic Control-

Strategic Control-

Identify

strategic

direction

for R&D

Strengthen

relationship

with

government

Government

R&D grants

Partnership with vehicles company for joint projects

In-vehicle

&

Increased

mobility