These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for pureLiFi’s LiFi technology. LiFi uses light waves as opposed to radio waves to transmit data wirelessly. While the transmission distances are very short and the light waves cannot penetrate walls as radio waves can do to some extent, LiFi has higher speeds, bandwidth, and security. The slides recommend that pureLiFi target defense company’s first and consumers second. Defense companies have a higher willingness to pay and they are more concerned with security than are consumers. As the cost falls, pureLiFi should begin to target consumers. PureLiFi should provide its technology to systems integrators that are defense contractors.
2. Li Bing
A0119251M
Cao Jie (Joy)
A0119774U
Soh Loon Siong
A0098520A
Li Yuanbo (Michael)
A0119085A
Wang Huaiyu(Gem)
A0118990W
Chen Zhongze (Frank)
A0119239B
6. o Light can be emitted by LED
o Can reflect the wall
o Can dim to be invisible
7. Wi-Fi is close to full capacity
WIFI
Bandwidth 3 kHz ~ 300 GHz [1]
Speed of data
transmission
Limited by 150Mbps [2]
Security Interceptable
Energy Consumption High
Distance 70~250m [2]
Penetration ability Yes
Technology rapidly
improving in recent years
a compound annual growth rate of 82% from 2013 to
2018
[1] https://spie.org/x93593.xml; [2] http://en.wikipedia.org/wiki/IEEE_802.11n-2009; [3] http://en.wikipedia.org/wiki/Li-Fi
[4] http://jwcn.eurasipjournals.com/content/2012/1/91, A review of communication-oriented optical wireless systems
WIFI LIFI
Distance 70~250m [2] Current 10m
Expect to extend to
500m in future [4]
Penetration ability Yes No
Limitation of Li-Fi?
WIFI LIFI
Bandwidth 3 kHz ~ 300 GHz [1] 400 ~ 800 THz [1]
Speed of data
transmission
Limited by 150Mbps [2] Up to 10Gbps [3]
Security Interceptable No penetration ability
Hard to be intercepted
Energy Consumption High Based on illumination
Distance 70~250m [2] Current 10m
Expect to extend to
500m in future [4]
Penetration ability Yes No
8. o A leader in Li-Fi technology
o 50 years team experience in communications
o Successful commercialized product
spin-out from the
University of Edinburgh
2008
Founder of PureLIFI
Professor Harald Haas
first demonstrated
Li-Fi to the world
2011
2012
Officially
Established
pureLiFi -1st
released
Jan 2014
9. II
Li-Fi in National
Defense
Li-Fi for Mobile
Devices
Li-Fi in Public
Areas
Technology Adoption Cycle
Roadmap for applications
Step1
Step2
Step3
11. US spending US$2.3 billion for
tactical radios, wireless network and
communications systems
Modern Warfare –
Network Centric Warfare
Huge need of large bandwidth Information Security
12. US spending US$2.3 billion for
tactical radios, wireless network and
communications systems
Modern Warfare –
Network Centric Warfare
Huge need of large bandwidth Information Security
US Spend 1% of Defense
Budget on communication system
Hence the industry estimate to worth US$ 17.5 Billion
13. Huge need of large bandwidth
Data requirements
o Voice Communication
o Location Tracker
o Live Battle Feed
Estimated bandwidth requirements
o 2 Mbps for 720p video per soldier/vehicles
o 1 Division usually consisting between
o 10,000 to 30,000 soldiers
o Translate to about 60,000 Mbps
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study
14. Huge need of large bandwidth
Need for faster speed as all equipment's, war machine, man on the ground
are wired up to feed commanders first hand information of the
battleground to ensure higher chance of victory
Speed limit of current bandwidth of Wi-Fi
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study
15. Modern Warfare –
Network Centric Warfare
A robustly networked force improves information sharing
Information sharing enhances the quality of
information and shared situational awareness
Shared situational awareness enables collaboration and self-
synchronization, and enhances sustainability and speed of command
Dramatically increase mission effectiveness
16. Information Security
Security if further enhance by means of encryption
Abundant bandwidth facilitates speedy file transmission, total interaction minimized
hence more secured
Lower probability of intercept and detection compared to broadcast
or less directional RF wireless links
For RF wireless link, the adversary needs only a low complexity receiver to
detect its broadcast transmission or the side lobes of directional RF antennas. While
essentially it is impossible for the 3rd party to detect the existence of the Li-Fi link
unless they insert their own receiver into the beam path
Review of communication oriented optical wireless systems
20. Current technology can’t fully utilize the phone’s capacity
The phones capacity will grow by 10 times in the next few years
Technology Speed(MB/s) Distance Cost(S$) Performance
Bluetooth 0.1 10m 2 Slow, unstable, hard to manage
Wifi(NFC+S beam) 5 100m 7 Unstable, limited speed, unsafe
Phone flash- write 4-20
Phone flash- read 10-50
LIFI 1000+
Current 10m
Extend to 500m
in future
TBD
Stable, fast, safe
31. Defense
segment
Product
Design
Manufactur
ing
Product
distribution
Product
Ads
Service
o Co-develop product with government;
o Involve third party companies to develop
software;
o Separated project team management;
o Contract manufacturing
with government
certificated factory
o High quality control
o No Ads, keep the whole project confidential;
o Contract service for hardware
maintenance
o Set special service team for
value-added service
o B2G- direct sales
33. Public
segment
Product
Design
Manufactur
ing
Product
distribution
Product
Ads
Service
o In house design
o Outsource ID design
o Collect excellent design from online
o Contract manufacturing;
o High quality control
o Online Ads;
o Printing Ads on IT newspaper
and magazines;
o Contract service
o B2B:
o Collaborate with telecom carriers;
o Direct sale to public place owners;
o Retail
o Contract regional agent
o Flagship stores
o Online selling
34. Licensing
out
Technical
support
Licensing
authority
Collaborati
on
o Free support to third party developers and
companies;
o Only charge licensing fee to the well
developed LIFI business;
o Default free of charge to third party
developers and small business;
o Strategic collaboration with companies who
identified high potential LIFI business ;
o Acquisition if necessary;
35. Apple Inc.
Retailers
Third party developers
Individual customers
Transmitter
Receiver
Router
OEM
Flagship shop
Regional distributor
Telecom carriers
Public place owners
Governments
Logistic
Chipset
Third party companies
Other branded
companies
Licensing out
Technical support
Chipset Factory
36. Li-Fi in National Defense
Technology Adoption Cycle
B2G Business
Sell products to governments with a sales force: low volume but high gross margin
• Chipset/ Transmitter /Receiver/ Router
Charge for Value added Services: low charge, but high gross margin and long term
• Consultation/ Research service on network protection and interception of
opponents network
37. Li-Fi for Mobile Devices
Technology Adoption Cycle
B2B Business
Sell chipset to mobile phone companies with a key customer management team;
Low gross margin, but high volume;
38. Technology Adoption Cycle
Li-Fi in Public
Areas
B2G business
Support governments with zero net profit;
Gain profit by defense products and value added services;
B2B business
Sell routers to telecom companies with a sales force;
Sell solutions to the large organization or office buildings
B2C Business
Sell router and receiver to home users
Low gross margin, but high volume
39. Technology Adoption Cycle
Licensing out to find more opportunities
B2B Business
Manage the licensing out by technical teams;
Fixed licensing fee or profit dividend;
41. o Proactively improve technology
and apply relevant IPs
o Strong IP protection in chipset
and router business;
o Cultivate other LIFI markets with
weak licensing protection;
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition
42. Open collaboration to win standard war
o Build relationship with governments,
and try to impact national standard;
o Build alliance with MNCs;
o Win support from SMBs;
o Attract third party developer with
free technical support;
o Strategic collaboration with third
party companies for new LIFI
business;
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition
43. Open collaboration to win standard war
o Build relationship with governments,
and try to impact national standard;
o Build alliance with MNCs;
o Win support from SMBs;
o Attract third party developer with
free technical support;
o Strategic collaboration with third
party companies for new LIFI
business;
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition
44. o In-house design
o Contract manufacturing
o Contract distribution
o Contract service
o Quality controlBrand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition
45. o Focus on hardware + Fast update
o Develop complementary assets
o Leverage third party resources
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition
46. o Zero profit of public products from
governments to win defense product
orders;
o Low price for short term + higher
price for Updated Products
o Provide very competitive pricing for
long term contract
o Internet marketing
Brand
building
Multi-
Products
Product
marketing
IP
Protection
Standard
competition
48. Li-Fi for Mobile
Devices
Li-Fi Hotspots in
Public Areas
Superior
surfing
experience
More LIFI features
on mobile device
Network effect between more
LIFI featured mobile devices
and existed LIFI spots
More & superior
LIFI Hot Spots
Network effect between more
LIFI hot spot and LIFI
featured mobile devices
51. Under water
communication
Smart traffic light
control system
Geographic-based
service
RF sensitive area:
airplane, museum,
operation room, etc.
Vehicle-to-vehicle
communication