Arka lights Lecture 4 Channels

Higher lumen intensity with a longer life enabled by novel thermal dissipation technology.

Allows direct replacement of current high lumen incandescent bulbs with LEDs without light quality/output compromises.

ARKA LightsHigh Performance LED Technology

Reduced number of LEDs

Higher lumens in the same form factor

Commercial Customers

-Replacement Lamps

- Indoor Applications

Trade Presence, publications, shows

Direct Sales to Institutions

Web based demos, education

OEMS

Luminaires Manufacturers

System integration

Requires no infrastructure changes

ASME, Professional Groups

Environmental conscious Groups

Systems Design

IP

Government Agencies (DOE)

Cost of Sales

LED manufacturers

Luminaire Manufacturers

Developments Costs

Sale of Products

Suppliers Certifications

Awareness Building

Increased reliability

Experienced manufacturer as a partner

Component supplier costs

CANVAS FOR ARKA – Week 1

Lower purchase cost



-Replacement Lamps (PAR38)



Direct Sales to Institutions



System integration




Systems Design

IP


Cost of Sales

LED manufacturers


Developments and Certification Costs

Sale of Products

Suppliers

Certifications




CANVAS FOR ARKA– Week 1(updated)

Reduced weight

Awareness Building

Thermal modeling of LED cooling

Week 2 Activities• Interviewed 10 additional contacts still focused on value

proposition and channel hypotheses– End Users: Yarrington, Cobo, Harris (Large facilities)

Dakoian (Art Gallery) Shankar (Property management, India)

– Channels (OEM, Suppliers, Manufacturers):Lockwood (Maynard Lighting Supply Co.)

Aldrich (Kovalsky Carr Electric Supply Co)

Flaesch (Jameson Corp.)

Ellis (Point Source Group, Lighting Representative Firm)

– Channels (Architects): Heinmiller (Lam Partners, Architectural Consultant)

Key Takeaways

• Lumen output and aesthetics are critical considerations

• Performance is an issue with existing commercial products. Better LED lighting products are needed.

• Solutions that deliver the value proposition in the canvas will be well received

• Distributors and customers are eager to work with us if we deliver product that meets our value proposition

• Identified initial purchase cost as a Major Barrier to adoption of LED lighting solutions

Lower purchase cost



-Replacement Lamps (PAR38)




Direct Sales to Institutions as Reference Customers


System integration




Systems Design

IP


Cost of Sales

LED manufacturers


Developments and Certification Costs

Sale of Products

SuppliersCertifications (DLC, Energy star)




CANVAS FOR ARKA– Week 2

Reduced weight

Thermal modeling of LED cooling

Distributors/lighting representatives

Direct sales to Institutions as Reference Customers

Awareness Building

Next Steps – Going in Week 3

• Quantify performance gains that can be achieved. Prepare a “technology fact sheet” for meaningful next level conversations.

• Engage in discussions with OEMs about collaboration/distribution

• Plan product demo activities to determine projected costs and benefits

• Learn more about certifications and standards such as Design Lights Consortium and Energy Star as well as legal drivers like Title 24 in CA.

Appendix

Details of Interview Conversations – Week 2

Feedback: Customers/Final Consumers

1) Mr. James Yarrington

Director, Campus Planning and Design

Facility Management Services, RIT•Most of the design project of different buildings are given to outside architectural firms. •Main criteria in selecting a particular lighting fixture is energy savings (recently), aesthetics, lumen output and cost

2) Mr. Marcos Cobo

Foreman, Electrical Maintenance

Facility Management Services, RIT

•RIT is cautiously moving into the LED market.

•RIT is purchasing about 20,000 X T8 tube LED’s. These LED tubes would be placed in emergency circuit system (24hrs. usage) and hallway lamps (15+ hrs. usage)

•Main criteria for Mr. Cobo is cost when deciding the lighting fixture


3) Mr. Dave Harris

Director, Training, Utilities & Environmental Management

Facility Management Services, RIT

•Explained the detail cost analysis of electrical consumption at RIT and how LED can help in saving electrical consumption and eventually overall cost

•LED’s are becoming extremely popular at the College of Imaging Arts and Science, RIT (currently several LED’s are installed there)

•Agreed to showcase our prototype in the campus and was ready to pay for it

•For bulk quantity, cost and lumen have be to optimum for him to consider purchasing

•Also pointed out LED purchasing is more subjective than objective


4) Ms. Lauren DakoianDirectorLori Bookstrin Fine Art

•Privately held art gallery

• Lighting is not a major factor, but will be delighted to have energy efficient lighting

• Willing to work with us in evolving products that are suitable for art galleries

• Higher lumen output is not required and the current light of the LED is also not a concern

• Art gallery lighting represents a specialty segment, market size may be limited


5) Mr. Glen Henimiller

Architectural Lighting Design Consultant

Lam Partners, Boston•PAR38 replacement market is certainly there

•The retail replacement issue is there, but not a game-changer since the sales or maintenance people do it anyway. The cost comes in only when an electrician has to do it.

•Replacement in auditorium (especially above the seats and stage) is a huge concern. Recessed lighting, high ceiling, 2000+ lumens at competitive cost is a need

•Another need is for cost competitive 2000+ track lighting , current cost is around $250, which is high

Feedback: Channel/Distributor

6) Mr. Scott Lockwood

Outside Sales

Maynards Electric Supply Inc.

•Has heard customers complain about LED’s having one spot lighting. Currently new products are coming out with greater bend angle

•Also suggested that even though the bulb is rated for 50,000 hrs. life cycle, he thinks that the drivers won’t last that long

•Different cooling techniques are coming out, he showed an MR16 bubl with a cooling fan inside it to dissipate heat

•Heating is a problem but especially in the north-east region of America, heat sinks works well for outdoor lighting system

Feedback: Channel/Distributor

7) Mr. Dave Aldrich

Outside Sales

Kovalsky Carr Electric Supply Co.

•RIT gets close 85 % of its lighting equipment from Kovalsky Carr•Mr. Aldrich pointed out the LED behavior depends on the environment (indoor vs. outdoor)•According to him there are four major concerns with regards to LED’s

– Cost– Higher lumen requirement– Color– Heat dissipation

•He also pointed out the order of the problem change depending on the environment in which it is being used. But cost always remains the biggest barrier.

Feedback: Suppliers/OEMs/Manufacturers8) Mr. Chris Flaesch (Referral by John Burke)

Senior VP

Jameson Corporation

•Responsible for the development of strategic business opportunities and markets for the leader in expeditionary and military shelter lighting systems

•Must be able to quantify improvement offered in terms of cost-benefit (better-faster-cheaper by how much)

•Suggest working with product driven companies which focus on engineering/product (not market driven companies which focus on their customer needs/wants)

•LED lighting is a good market right now given the state of flux and established metrics (not too early, not too late)

•e) Strong interest in our value proposition - high heat transfer rates, flexible architecture, low cost manufacturing, reduced weight. His company sells 100,000's lights to the military including flexible systems such as tents with integrated lighting

Feedback: Suppliers/OEMs/Manufacturers9) Mr. Ron Ellis

Rochester Sales

Point Source Group

•PSG represents OEM lighting manufacturers in the Upstate NY area. They sell to architects, designers, contractors etc via wholesalers like Graybar, Grainger, etc.

•b) Their value-add is their service. They have a personal relationship with local architectural firms such as Stantec, Bergmann Associates etc. They provide knowledge/expertise, some lighting-only design services and project management services.

•They are open to looking at new manufacturers provided they have a new offering and their product(s) are approved by DLC.

•Typical margin expectation is 10% but it can be higher or lower by a bit

•They are motivated to carry LED lights because of rebate programs offered by NYSERDA.

Feedback: Academic/Others

10. Name: Shankar

Organization: Embassy Developers, India

Type of Interviewee: Developer, Property Management

Key Takeaway:

•Lighting is a large component of operating expenditure in commercial establishment like

technology parks

•Increased concerns about power shortages because of backlash against nuclear power

•Lighting decisions primarily driven by customer/tenant/client push

•Primarily CFL at this point

•LEDs are on the periphery of awareness, too expensive, prone to theft

•Willing to consider if subsidized by the Government.

Education

Arka lights Lecture 4 Channels