Business Model For

A0110189L

A0132423W

A0056792U

A0132394H

A0110169N

A0110164Y

Lee Sze Hoon

Zhang Ruolan

Shen Yuan Feng

Goh Wee How

Bian Zhiwei

Wang Gao

Business models for other technologies can be found here:http://www.slideshare.net/Funk97/presentations

Outline

Introduction

Value Proposition

Customer Selection

Scope of Activities

Value Capture

Strategic Control

2

Evolution of Cleaning

Common point of manual methods:

Involves human in the cleaning process

Requires huge amount of human labor Source: Intellibot

3

The Future of Floor Care

There is always a need for cleaning services regardless of economic conditions.

Increasing Demands in the followings:

Going Green, Eco-Friendly Cleaning

Higher Productivity

Reduce Labor Cost

Integrating Robotic Technology

Fully automated cleaning robot

Designed for commercial usage

4

Intellibot-HydroBot Demo

https://www.youtube.com/watch?v=KKFnEFCuUQw

5

Intellibots Variants

6

There are three separate autonomous cleaning modes and one manual mode

Auto Clean Mode

Route Cleaning Mode

Spot Clean Mode

Manual Mode

Cleaning Modes

7

Value Proposition

8

Hands-Free Cleaning

Source: Intellibot

9

Save Labor and Double Productivity

Labor

Not cheap in Singapore

Monthly salary ~1000 SGD

Levy: 600 SGD per month

Housing allowance: 200 SGD per month

Labor Shortage

Due to tighten foreign workforce

Low productivity

Quality not guaranteed

Need rest

Intellibot

Lower dependence on Labor

Cheaper spending over 5 years

Higher productivity and automatous

929 sqm per hour

Handle free cleaning

Steady performance

Source: MOM, Intellibot

11

Save Labor and Double ProductivityCleaning Type

(for typical shopping mall ard 65000 sqm)

Productivity per Hour (sqm) 929 2210 1690 350

Machine Cost (SGD) 33000*7 22838*5 7453*7 N.A

Warranty (years) 5 3 3 N.A

# of Labor*Annual Labor Cost 1*12000 5*12000 7 *12000 23*12000

Annual Labor Levy + Allowance 1*9600 5*9600 7*9600 23*9600

Operating Hours 10 6 6 8

Estimate Annual Cost 67800 146063 168590 496800

Cost Saving N.A 53% 60% 86%

*Tennant T7 *Tennant T3+ *Janitorial Store*IntellibotSources:

12

Eco Save Filtration System Traditional floor cleaners dump more than 100 gallons of wastewater and associated

chemicals down the drain over a four-hour period.

4-stage filtration and recycling system uses 85% less water and chemical.

Source : http://intellibotrobotics.com/calculate/*per year per 929 sqm

Water and Chemical Cost (USD)

Conventional method 3120*

Intellibot 520*

13

Intelli-Trak™ Monitoring

14

Singapore’s Needs Promoting high technology cleaning industries in Singapore

Inclusive Growth Program (IGP) by e2i

Enhanced Clean Mark Accreditation Scheme (EAS) by NEA

Productivity and Innovation Credit (PIC) by IRAS

Creation of high skills workforce Workforce Skills Qualifications (WSQ) by WDA

Reduction of reliance on Foreign Workers in Singapore Social problems such as Little India Riot

High levy

Tightening of foreign labor policy

http://www.nea.gov.sg/public-health/public-cleanliness/cleaning-industry

https://www.iras.gov.sg/irasHome/page04.aspx?id=14372#Cleaning

15

Customer Selection

Government Segments

Shopping Centers

Manufacturing Plants

Public Segments

Cleaning Companies

16

Customer Selection - Government Segments

Total size of Changi Airport: 1,300 hectares (1,800 football fields)Terminal 1 – 280,020 sqmTerminal 2 – 358,000 sqm Terminal 3 – 380,000 sqm

What Intellibot can do? Detect motion and immediately stop to let people pass at a safe distance before

resuming operation The machines' long-range sensors sense up to 30 ft on each side, making it

perfect for cleaning wide open areas like airport concourses

Airport

17

Customer Selection - Government Segments

187 Primary schools168 Secondary schools24 Pre-university centers9 Language centers7 Technical schools6 Post-secondary institutes6 Universities…..

Schools

Source: http://en.wikipedia.org/wiki/List_of_schools_in_Singapore#Primary_schools

MCI,MCCY, MINDEF,MOE, MOF, MFA, MOH,MHA,

MINLAW, MOM, MND, MSF,MEWR, MTI, MOT, PMO

Ministries

In all >> 400 schools In all >16 ministries

18

Customer Selection - Shopping Center

10 Best Singapore Shopping Mall

Suntec City - Marina Centre

Paragon - Orchard Road

Marina Square - the bay area

Bugis Junction - Victoria Street

Ngee Ann City - Orchard Road

Vivo City - Harbour Front

The Heeren - Somerset

Far East Plaza – Orchard

Funan Centre - City Hall

Mustafa - Serangoon

More than 100 Big Shopping Malls and Exhibition Halls

19

Customer Selection - Manufacturing Plant

The machine's long-range sensors are perfect for cleaning open areas up to 60' wide

The built-in collision avoidance system allows the machines to navigate safely around irregular equipment and varied inventory to continue cleaning.

Clean every surface daily automatically.

Source: http://www.intellibotrobotics.com/industries/

20

Customer Selection - Public Segments

MRT station – more than 100 stations, big interchanges

Hospital (healthcare)

• Meet the highest sanitation standards by purifying water down to one micron.

• Healthcare operating software allows the Hands-Free machines to avoid obstacles such as IV poles, gurneys and expensive equipment.

• A unique UV light to kill bacteria is part of the Eco Save™ water purification system.

• Reporting and accountability after every shift is key to infection control

Hospitality - prolong carpet life in high-traffic areas, while offering the deep clean

21

Customer Selection - Cleaning service companies

Website Yellow pages -> more than 59 registered companies providing cleaning services.

Website Streetdirectory -> more than 464 companies providing cleaning services.

Source: http://www.yellowpages.com.sg/http://www.streetdirectory.com/businessfinder/company/335/Office Cleaning/

22

Scope of Activities

Research &Development

Manufacturing

Cleaning Services by Subsidiary Company

Distribution Channel

Marketing Strategies

Vertical integration

23

In-House Research and Development

User friendly system

Intelli-Trak Wireless Monitoring System

On-board Water Purification System

24

Manufacturing

• Lean Manufacturing

• Different suppliers from different areas to reduce risk of being copied by competitors

Buy Components from various North America suppliers

• Minimizing customizationOff-the-shelf components

• Protection of design and IPAssembly in Portland,

Oregon

25

Distribution Channels

Local dealers/retailers

Cleaning companies

Partners

26

Marketing Strategies

First Mover

Advertisement

Free trial

Demonstration for Charity Organisation

27

Vertical Integration

Research and Development

Manufacturing

Distribution Channels

After Sales Service

28

Value Capture

Fee for Services

Leasing

Licensing

Cleaning Service

Markup Sales

Extended Warranty

Technical Certification

Existing Revenue Model What Do We Propose

29

Value CaptureExisting Revenue Stream

Markup sales on different models of Intellibot Robotics, Complement Assets and percentage of revenue from distribution partner.Extended Warranty for worry-free operations.Provide technical training to customer on spot, and allow access to online technical service manuals.

Intellibot

Robotics

Supplier

Components / Parts

Extended

Warranty

$

Corporate

Customer

Government

Distribution

Partner

…

$$$

% of

RevenueDistribution

Rights

Order

$

$

Intellibot, Complementary

Assets

Tech

Certificate

30

Value CaptureWhat we Propose

Fee for Services:Charge customer by continues operating hours serviced by intellibot robotics, data is extracted from the operation report stored in centralized servers.

Leasing Service:Lease Intellibot robotics to Customers for temporary usage

Intellibot Robotics

Corporate

Customer

Distribution Partner

…

% of

RevenueDistribution

Rights

Corporate

Customer

(Cleaning

Companies)$$

IntellibotLeasing Agreement

$$

Operating

Hours

31

Value CaptureWhat we Propose

Licensing:License technologies to other tech companies and secure licensing fees

Cleaning Service:Capture revenue from the subsidiary company that operate cleaning service in Singapore

Intellibot Robotics

Subsidiary

Company

$$$

Other Tech

Company

Licensing

Agreement

$$

Cleaning

Service

Corporate

Customer

$$$

Ownership

Government

32

Strategic Control First Mover advantages: currently only product in the industrial intelligent

cleaning robot

Create entry barriers: create safety standards which got the governments’ approval

Patent Protection: together with trade secrets to create entry barriers

High switching cost for the customers: lock-in customers with agreements

Continuous R&D: upgrade software, improve usage efficiency of the battery

Branding image & reputation

33

Strategic Control-Patent(Appropriability)

Source: http://www.uspto.gov/learning-and-resources/statistics

34

Patent Control of various components

Manufacturing

35

Value ChainValue Proposition

Mission<-> Vision<->Values

Internal Value

Creators

HRR&D

ManufacturingSales & Marketing

Employee Engagement

Employee Loyalty

Employee Productivity

TargetEmployee Retention

External Value

Creators

Cu

sto

mer

sa

tisf

acti

on

Cu

sto

mer

Lo

yalt

y

After-sale service

Distributionchannel

Brand Reputation

Profitability(ROI)

36

SWOT analysis (Manufacturing and Domestic needs)

Strengths•Improve working conditions and reduces the need for personnel•Rapid growing and large market•Common tech with several application development of tech driven by industry

Weakness•Strong need for new development to increase the market•Strong need for skilled technicians•Gap between academic research and commercial product(time and money)

Opportunities•Make use of, share, and further develop technology laws and regulations on labor large demand and need•Promising technology•Large potential market•Improve time efficiency

Threats•Acceptance by the majority customer•No clarity on law and regulations on safety and liability•Heavy competition in future

37

Future Strategy

Technology aspect Remote control Robots

Remotely operated via wireless/mobile device by users from where it is accessible

Voice recognition

Machine Learning

Artificial intelligence: Robot Cleaner is able to analyse and plot floor plans by itself.

Business model aspect

Home cleaning robotics with small size

Co-operate with government to provide leasing service to resident ,price vary according to

household income, even free charge for lower incomer, to promote brand image and

reputation by social commitment, goodwill and intangible assets to be credited

38

Conclusion

Intellibot is the next evolution of future floor care

Eco-friendly, high productivity, low cost and reduction of reliance on foreign labor in Singapore will be the determining factors

Gives the cleaning industry a higher market value

Huge opportunity in the Singapore High-Tech commercial sector, as labor cost increases

39

Thank YouQ&A

40