Lecture 2Business Model Canvas Examples

Jim Aloise

Team 187 NYC April 2013 week 2

Team 187 NYC April 2013 week 3

Team 187 NYC April 2013 week 4

Team 187 NYC April 2013 week 5

Team 187 NYC April 2013 week 6

RIT NSF ICORPS Dec 14 2011 8

Initial Business Concept

Global lighting industry - $100B

LED lighting - $6B, CAGR>40%

Enhanced cooling allows• Higher lumen output• Higher light quality• Better reliability

LED Replacement Lamps

~500 million sockets * $15/lamp =

~$750M

Team Members

Entrepreneurial co-Lead

Kirthana KripashMBA (Candidate), RIT

Entrepreneurial co-Lead

Ankit KalaniMS Engineering (Candidate) RIT

Principal Investigator

Dr. Satish KandlikarGleason Professor

Mech. Engg., RIT

Mentor

Dr. Suresh SunderrajanPresident, NNCrystal Corp.

Kandlikar and RIT Team – NSF I-Corps

Business Canvas 1

Kandlikar and RIT Team – NSF I-Corps

Here is what we did.

Customers Key PartnersChannels

Kandlikar and RIT Team – NSF I-Corps

“We are willing to wait 5 to 7 years

for the price to fall before we adopt

this technology on a wide scale. ”

“If you bring us a modular thermal system that provides better cooling at lower cost, we would definitely want to explore this technology.

Arka Lights•LED array,

Lamp components

Luminaire Manufacturers•LED

luminaires and Fixtures

Distributor

Contractor

Project/Owner

Other Components

MARKET FLOW – Iteration 1

Arka provides replacement lamps

What we learnt“New Product”

Customers

• Cost: The customer is unwilling to buy the product at current prices

• Loyalty: The final consumer is highly dependent on Gatekeepers (suppliers) for guidance in product choice

Distribution and Supply

• We lack expertise in Lamp/Luminaire production

• OEMs were interested in incorporating our enhanced thermal module in their product

We had to pivot! Kandlikar and RIT Team – NSF I-Corps

Business Canvas 2

Arka Lights

OEMs

•LED luminaires

and Fixtures

Distributor

Contractor

Project/Owner•Institutions, Home

Owners, Distributors

Other Components

MARKET FLOW – Iteration 2

Arka provides Thermal Modules

Here is what we did.

Customers Key PartnersEnvironment

We would like to enter into a partnership to develop heat pipe based products.

Heat Exchanger

Manufacturer

• Our competencies lay primarily in the heat pipe industry

• The most encouragement came from a heat exchanger manufacturer who is looking to expand his product line.

• Our Business Model iterated; we will now focus on heat pipe based solutions in diverse applications.

What we learnt. “New Business Model”

Kandlikar and RIT Team – NSF I-Corps

RIT NSF ICORPS Dec 14 2011 18

• Arka prototype runs 15 C cooler, allowing more LED placement per lamp

• Prototype delivers 100 % more lumens for the same form factor

• ~30% lower cost/unit for similar lumen output

• The weight of Par38 is 65 percent lower, and the manufacturing cost is $4.50 (current module costs about $2.20)

Prototype ResultsCommercial PAR 38 Arka Prototype

52 °C (max) 37 °C (max)

Business Canvas 3

Arka Lights

Division?Partnership?

MarketMarket

…

MARKET FLOW – Iteration 3

Heat Exchanger Manufacturer

Design Sources and

Technical Experts

• Negotiations with Heat Exchanger Manufacturer (HEM) ongoing.

• Arka provides::IP, heat transfer expertise, design

• HEM provides: Manufacturing, distribution and sales channels

• Arka will be proactive in exploring other market opportunities.– Additional revenue/cost models will be explored using

the methodology of this class

Status Update and Next Steps

Kandlikar and RIT Team – NSF I-Corps

• The Process:– Iterations occur organically when you respond to

market and consumer needs. – Explore unconventional opportunities, be OPEN,

and be aware that potential partners may be sitting next to you in a plane. I probably met my future prototyping partner on my way to Stanford.

• The Market:– Understand your customers, channels and

partners– It’s about money – customer’s, partner’s and yours –

respect that without forgetting your core values.

Here is what we learnt.

Kandlikar and RIT Team – NSF I-Corps

23

Arka Solutions

Arka will make modular, low cost, enhanced heat pipe-based cooling solutions, first for LED lighting, and

subsequently for electronics cooling and HVAC applications

RIT NSF ICORPS Dec 14 2011

Total Customers Contacted: 86

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Week 1 - 9

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