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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.
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MT4002
TruTouchTM non-invasive
alcohol detection
Charmaine
Kim
Kivaan
Lingjun
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
1. Introduction
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
1. Introduction
Alcosense TrutouchTM 2500
Optical alcohol detection device
Alcosense TrutouchTM 2500
Technology ● Near-infrared spectroscopy ● Scan through skin ● Detects identity using unique
biometrics of each individual
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
1. Introduction
Safety-Critical
Workplaces
Product Sales
Vehicle
Manufacturers
Licensing
Overview of Customer Selection
e.g. Europe, US, Australia, Russia
Regular
Workplaces
Liquor Point of sale
Safety-Critical Workplaces
40% of workplace accidents
involve alcohol.
Current detection method is
inadequate.
Safety-Critical Workplaces
Usage: Entry-point testing for workers
Bar entry to alcohol-impaired workers
Biometric check-in and security clearance
Safety-Critical Workplaces
Reduce injuries, costs
and downtime
resulting from alcohol-
related accidents
Improve safety record to
help clinch business
deals and meet
government regulations
Identity Testing
Value Proposition
Safety-Critical Workplaces
Safety Managers
Operation Manager
Head of Human Resources
Regular workplace
Alcohol-related productivity losses cost Europe and US more than 150bn per year
Negatively affected co-workers
relationships
Regular workplace
Usage: Entry-point testing for workers
Supervisors will be notified
Deters workers from reporting to
work drunk or hangover.
Regular workplace
Improve employee
productivity and reduce
absenteeism
Reduce costly mistakes
Reduce alcohol related
healthcare and insurance
costs Value Proposition
Regular workplace
Head of Human resources
Liquor point-of-sale Establishments
Liquor establishments can
if caught serving alcohol to an
intoxicated person
Usage
Test patrons who appear intoxicated to determine whether or not to serve more alcohol to them
Liquor point-of-sale Establishments
Value Proposition
Protect themselves against liability and legal action
Restaurant
Bar &Pub
Convenient stores
Liquor point-of-sale Establishments
Usage
In-vehicle alcohol testing;
linked to ignition control
Vehicle Manufacturers
Value Proposition
Vehicle Manufacturers
Additional feature to differentiate vehicle
to final customer
Safety of vehicle user and third parties
• Company Purchasing dept
• Concerned family members
• Car rental companies
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
Blood/Hair/Urine/
Saliva testing
• Long processing time
Breathalyzer
Breath testing
• Accurate
• Short processing time
• Invasive
Future Competitors
Scram CAM
Transdermal continuous testing
• Accurate
• Moderate processing time
• Invasive
Non-competitors
Visual Observation & Questioning
• Not accurate
• Not comprehensive
• No deterrence effect
Current competitor
Strategy Canvas - Workplace
High
Low
TruTouch
Breathalyzer
Scram CAM
TruTouch
Breathalyzer
Scram CAM
Strategy Canvas - Workplace
High
Low $1.50 /test
$0.25 /test
$0.01 /test
Strategy Canvas - Workplace
High
Low 25 sec
14 sec
8 sec TruTouch
Breathalyzer
Scram CAM
Strategy Canvas - Workplace
High
Low
TruTouch
Breathalyzer
Scram CAM
TruTouch
Breathalyzer
Scram CAM
Strategy Canvas - Workplace
High
Low ?
96 %
96 %
TruTouch
Breathalyzer
Scram CAM
Strategy Canvas - Workplace
High
Low None so far
Face recognition
Integral
What makes TruTouch special?
Fast
Dignified
Accurate
Cost-effective
Doubles as identification
testing
Able to test all
workers daily
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
1. Introduction
Scope of Activities
Manufacturer
product
Distributor Consumers
product
product
TruTouch
R&D
rights
$$
Vehicle
Manufacturers
$
$$ $$$
Scope of Activities
Consumers
Manufacturer
Non-profit Government
Marketing &
Lobbying
Data
TruTouch
R&D
Service
Reputation &
regulations rights
$
$$
$$$
$$
Vehicle
Manufacturers
Aftercare
Distributor
Service
Reputation &
regulations
$$ (R&D)
Relationship with Distributor
TruTouch current distributors
• Distributors of alcohol detection devices
Our Proposed Distributors
• Access control
• Doors and locks
Ensure ease of integration
Partnership
TruTouch Access control
company
Leverage on customer base of distributors
Relationship with Distributor
Combined sales packages: door locks plus TruTouch
TruTouch train distributors in basic after-sales support
TruTouch and R&D
• TruTouch is an R&D and integration firm • In-house hardware and software design • E.g.
•Alcohol use
•Biometric attendance
Relationships in R&D
• Cooperation with Takata for development of in-vehicle alcohol testing
Takata • Auto-parts firm
Aim: “a day with zero fatalities due to traffic accidents” • Well-aligned objectives
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
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
1. Introduction
Value Capture Leasing or sale
Maintenance costs waived for leasing but not for sale
money
right
Vehicle
Manufacturers
Consumers
product
Manufacturers of access
control systems
Royalties
money
right
Royalties
money
2. Value Proposition &Customer Selection
3. Scope of Activities
4. Value Capture
5. Strategic Control
1. Introduction
Strategic Control-
Key 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
• 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
Strategic Control-
Exclusive 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
Strategic Control-
Strategic Control-
Identify
strategic
direction
for R&D
Strengthen
relationship
with
government
Government
R&D grants
Partnership with vehicles company for joint projects
In-vehicle
&
Increased
mobility
