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.
6. 1. Introduction
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
7. Overview of Customer Selection
e.g. Europe, US,
Australia, Russia
Licensing
Safety-Critical
Workplaces
Product Sales
Regular
Workplaces
Liquor Point of sale
Vehicle
Manufacturers
10. Safety-Critical Workplaces
Reduce injuries, costs
and downtime
resulting from alcoholrelated accidents
Improve safety record to
help clinch business
deals and meet
government regulations
Identity Testing
Value Proposition
17. Liquor point-of-sale Establishments
Usage
Test patrons who appear intoxicated to determine
whether or not to serve more alcohol to them
Value Proposition
Protect themselves against liability and legal action
21. 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
22. Non-competitors
Blood/Hair/Urine/
Saliva testing
• Long processing time
Current competitor
Visual Observation & Questioning
• Not accurate
• Not comprehensive
• No deterrence effect
Future Competitors
Breathalyzer
Breath testing
• Accurate
• Short processing time
• Invasive
Scram CAM
Transdermal continuous testing
• Accurate
• Moderate processing time
• Invasive
33. Relationship with Distributor
TruTouch current
distributors
• Distributors of alcohol
detection devices
Our Proposed Distributors
• Access control
• Doors and locks
34. Relationship with Distributor
Partnership
TruTouch
Access control
company
Ensure ease of integration
Leverage on customer base
of distributors
TruTouch train distributors in
basic after-sales support
Combined sales packages:
door locks plus TruTouch
35. TruTouch and R&D
• TruTouch is an R&D and integration firm
• In-house hardware and software design
• E.g.
•Alcohol use
•Biometric attendance
36. Relationships in R&D
• Cooperation with Takata for development of invehicle alcohol testing
Takata
• Auto-parts firm
Aim: “a day with zero fatalities due to traffic accidents”
• Well-aligned objectives
37. 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
38. 1. Introduction
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
39. Value Capture
Leasing or sale
product
Consumers
Maintenance costs waived for
leasing but not for sale
money
right
Royalties
Vehicle
Manufacturers
money
right
Royalties
money
Manufacturers of access
control systems
40. 1. Introduction
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
41. Strategic ControlKey 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
42. Strategic 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
43. Strategic ControlExclusive 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