My students use ideas from my (Jeff Funk) class on business models to create a business model for Tactus, Tactur supplies a revolutionary new form of new technology that enables better touch screens. Using MEMS, portions of the screen rise up thus making it easier for the user to more easily interact with touch screen displays. these slides analyze the value proposition, customer selection, method of value capture, scope of activities, and method of strategic control for Tactus.

1. Tactus Technology
Tactile User Interface for Touchscreen Devices
Dynamic Buttons rise UP
from your touchscreen
Buttons when you need them;
gone when you don’t.
MT 4002 Technology Management Strategy | Tactus

2. Presentation Overview
1. Introduction to Tactile Layer
o What is the Tactile Layer
o Value Proposition - Why is Tactile Layer better?
2. Market for Tactile Layer
o Opportunities for business
o Customer Selection
3. Value Capture
o Product offering
o Money Flow within existing market
o Method of Value Capture & Revenue Models
4. Scope of Activities
5. Strategic Control
o Long term survival and growth
MT 4002 Technology Management Strategy | Tactus

3. The Touchscreen Experience
• Interactive User Experience
• Intuitive & Easy to use
• Unable to recreate true
tactile responses
• Low accuracy during use
MT 4002 Technology Management Strategy | Tactus

4. Problem
Compromised User Experience
• Data entry errors
• Poor typing speed
• Constant visual monitoring - inconvenient or even
dangerous
• No way to blind-navigate
MT 4002 Technology Management Strategy | Tactus

5. Compare advantages of two most
common Interaction Methods
Physical Buttons Touch Screen
• High speed typing • Bigger screens
• Accuracy and confidence • Fastest pointing device
• Free from sensitivity and • More interactive browsing
calibration problems experience
• New dimension to games
and apps
MT 4002 Technology Management Strategy | Tactus

6. Solution
Tactus Technology Demo Video
Click to Watch

7. What is the Tactile Layer user
interface?
• Application-controlled, completely transparent real and
physical buttons that rise up from the touchscreen surface on
demand
• Tactile Layer™ easily integrates with today’s touchscreen-
based devices
o Replaces ‘window’ layer and requires no change to the underlying
display or touch sensor
• A ‘best of both worlds’ solution combining the comfort of a
physical keyboard with the versatile experience provided by
a touchscreen
MT 4002 Technology Management Strategy | Tactus

8. So how does Tactile Layer Work?
• Replaces the front layer of the display stack, known as the
cover lens or window.
• Little or no change to the underlying touch sensor or
display.
MT 4002 Technology Management Strategy | Tactus

9. Technology
• Venture-backed company headquartered in Fremont,
California
• Sole product: Tactile Layer TM
• Availability: Commercially available in 2013
• Direct competitor: None
• Business model is product business model
MT 4002 Technology Management Strategy | Tactus

10. Value Proposition
MT 4002 Technology Management Strategy | Tactus

11. Types of Buttons – Truly Dynamic
Interface
Square Rectangle Round
• Multiple Button Shapes
• Controllable button height
• Programmed to custom-fit current
Orientation screen
Sensitive
MT 4002 Technology Management Strategy | Tactus

12. The Tactile Layer: More than simply
‘best of both worlds’
– A superior value proposition
Tactile Layer introduces new value to the end user
• Enables multi-tasking
by reducing user’s need
to look at the screen
while using a
touchscreen device
• Improved Safety
MT 4002 Technology Management Strategy | Tactus

13. Superior Value Proposition
• Improves speed and accuracy while using a touchscreen
device
MT 4002 Technology Management Strategy | Tactus

14. Superior Value Proposition
• Provides an overall improved user experience with
touchscreen device
MT 4002 Technology Management Strategy | Tactus

15. Key Benefits of Tactile Layer
to End Users
• Higher performance - addresses
conformation and orientation
‒ Higher Accuracy
‒ Faster speed
• Improved Safety
• Improved overall user experience
Key Takeaway:
1. People care about these areas of problems
2. These benefits are add-ons, without sacrificing any of the
existing touchscreen features
MT 4002 Technology Management Strategy | Tactus

16. Applications / Value Prop for Users
Using capacitive Better/ Realistic Better typing efficiency
screen with gloves Games
Full-screen Full-screen Work Compatible with existing
Entertainment Processing & Presentation phone covers
MT 4002 Technology Management Strategy | Tactus

17. Market Opportunities &
Customer Selection
MT 4002 Technology Management Strategy | Tactus

18. Customer Selection
Potential
Applications of Non-Touch Screen, Physical
Tactus’s Tactile Keyboard Phones
Layer
Hand Phone
Industry
Touch Screen, Physical
Keyboard-less Phones
First Adopters
Hybrid Phones
Market Segments
MT 4002 Technology Management Strategy | Tactus

19. Market Opp of Tactus
Touchscreen demand to grow by 90- 48.64% of people surveyed still want
percent, led by mobile, tablet markets qwerty keyboards
Touchscreen demand to grow by 90-percent, led by mobile,
Sales of touch screen devices with built in keyboards:
tablet markets
48.64% of people surveyed still want qwerty keyboards
Mobile phones
Sales of keyboard peripherals to
touch screen devices
Sales of touch screen devices with built Sales of keyboard peripherals to touch
in keyboards: Mobile phones screen devices
MT 4002 Technology Management Strategy | Tactus

20. Existing Value Network
Service
Providers
OS Developers
OEMs (Hardware
Phone
Component
Manufacturers
Manufactures)
Application
Consumers
Developers
Phone Retailers
Content Providers
Indirect customers to Tactus
Logical categorisation
Customers/ Stakeholders to Tactus
MT 4002 Technology Management Strategy | Tactus

21. New Value Network with Tactus
Service
Providers
Tactus OS Developers
Tactile Layer
+
Other Hardware
Phone Application
Components Consumers
Manufacturers Developers
Manufacturers
OEMs
Content Providers
Phone Retailers
Direct customers to Tactus
Indirect customers to Tactus
Logical categorisation
Customers/ Stakeholders to Tactus
MT 4002 Technology Management Strategy | Tactus

22. Value Proposition for Direct Customers
• Provide a new, innovative
Service
Providers
feature
Phone • Easy integration - no need to re-
Manufactur engineer display stacks
ers
• Opens up new markets and
allows for creation of new and
Phone
innovative products (lighter,
Retailers bigger screen, curved)
• Premises for new types of OS
Content interaction/ applications
Consumers Providers
• Provides new dimension of user
experience within applications
MT 4002 Technology Management Strategy | Tactus

23. Value Proposition for Indirect Customers
High sales volume expected Service
Applications may use more data Providers
Phone
Manufactur
ers
Phone
High sales volume expected Retailers
Content
Providers
Improved user experience Consumers
Higher work performance
MT 4002 Technology Management Strategy | Tactus

24. Value Capture
MT 4002 Technology Management Strategy | Tactus

25. Product Overview
Tactile Layer
Tactile
Hardware
Tactile To control
Products Controller Tactile Layer
Offered
To access Tactile
Controller &
Product Key
manipulate
Tactile Layer
MT 4002 Technology Management Strategy | Tactus

26. Cash flow within Existing value network
Operating System Licensing fee/ Buy OEMs (Component
Developers Advertising Components Manufacturers)
Platform
Provide Handset Makers
Platform for Sell
development Phones
Sell Content/
Application Developers Consumers
Advertising revenue
Slight differences may exist between firms with different revenue models
• Apple makes both the handset and the OS, so costs are internalized
• Android OS is free but Google makes money through advertising
• Symbian is licensed
MT 4002 Technology Management Strategy | Tactus

27. Cash flow with Tactus (A unique OEM)
Operating System Licensing fee/ Buy OEMs (Component
Developers Advertising Components Manufacturers)
Platform
Provide Handset Makers
Platform for Sell
Sell Tactile
development Tactus Technology Phones
Layer &
Sell Controller
Product Key
Sell Content/
Application Developers Consumers
Advertising revenue
Method of value capture for access key sales would vary according to platform, since the
various developers have different revenue models
MT 4002 Technology Management Strategy | Tactus

28. Revenue Model
Tactus Technology
Tactile Layer & Tactile Product Key
Tactile Controller to Interface
Smart phone Closed Source/
Open Source Model
makers Proprietary Model
Others
Android App (Blackberry,
Direct Sales Apple
Developers Symbian & Windows
Phone makers)
Commission per Commission per
Direct Sales
sale made sale made
MT 4002 Technology Management Strategy | Tactus

29. Pricing
• Incorporating new MEMS device introduces added cost to
manufacturing smartphones
• But smartphone market and market for mobile MEMS is
growing, suggesting larger volumes which may help reduce
costs
• Smartphones contribute 45.6% of overall handset market
shipments in 2012 and this will increase to 67.4% by 2016
(source: iSuppli - http://www.isuppli.com/Abstract/P23710_20120928151741.pdf)
MT 4002 Technology Management Strategy | Tactus

30. Pricing
MT 4002 Technology Management Strategy | Tactus

31. Scope of Activities
MT 4002 Technology Management Strategy | Tactus

32. Business Flow
Tactus Technology
Application
Application Programming Sales of
Programming
Interface
Interface (API) development Product Key
Tactile Layer Tactile Layer
Tactile Layer Tactile Layer
& Tactile Sale &
Controller
Design R&D Manufacturing
Distribution
Global
External Vendors
MEMS IC
Distribution
Manufacturing Manufacturing
Support
MT 4002 Technology Management Strategy | Tactus

33. Business Functions
Tactus Technology
Strategic Management
Application Finance
Application Programming Sales of
Programming
Interface
Interface (API) development HR and IT
Operations, Legal, Product Key
Sales
R&D
Tactile Layer Tactile Layer
Tactile Layer Tactile Layer Marketing
& Tactile Sale &
Controller
Design R&D Manufacturing
Engineering PR Distribution
& Partnership
Customer Service
Global
External Vendors
MEMS Supply Chain
IC
Distribution
Manufacturing Manufacturing
Support
MT 4002 Technology Management Strategy | Tactus

34. Strategic Control
MT 4002 Technology Management Strategy | Tactus

35. Key Features/
Appropriability Regime
• First entrant
• Control standards which will create a barrier to entry
• Most important complementary assets are R&D, Marketing and
Distribution
• Strong protection for the technology
• Sustainability via acquisition
• Economics of scale
• Access to complementary assets
MT 4002 Technology Management Strategy | Tactus

36. Patents
MT 4002 Technology Management Strategy | Tactus

37. Key Features/
Appropriability Regime
• First entrant
• Control standards which will create a barrier to entry
• Most important complementary assets are R&D, Marketing and
Distribution
• Strong protection for the technology
• Sustainability via acquisition
• Economics of scale
• Access to complementary assets
MT 4002 Technology Management Strategy | Tactus

38. Conclusion
MT 4002 Technology Management Strategy | Tactus

39. Conclusion – Business Prospects
• Haptics is a growing field
• Business plan
o Maintain industry leadership through innovation
• Potential for Tactus to branch out to other industries
o E.g. Automotives/medical equipment/etc.
MT 4002 Technology Management Strategy | Tactus

40. THANK YOU! Q&A
MT 4002 Technology Management Strategy | Tactus