Innovation Case Study

Innovation Case AnalysisChristine B. Bartolata

Outline of the Presentation

Overview of the Company and its Business Analysis of the Industry Evaluation of the Innovation System Description of the Innovation Project:

Form, Type, Protection, Strategy Formulation and Business Model Implementation/Commercialization Methods and Approaches

Analysis of Strategic, Implementation and Deployment Problems & Issues

• Recommendations Learning and Conclusion

Overview of the Company and its Business

How it Started:

PASSION PROJECT in De La Salle University

SEC registered in July 2014

Joined and won during Ideaspace Boot camp

Carl Mamawal (CEO)

Ingko Marfoni (CTO, Designer)

Miguel Marfoni (Shop Manager)

80% Split among co-

founders

Ownership:

20% Ideaspace

engineers, designers, fabricators…


Carl Mamawal (CEO)





Carl Mamawal (CEO)



80% Split among co-

founders

Ownership:

20% Ideaspace



Goals:

NYFTILaunch a Kick starter Campaign

SHORT - TERM

Sell 25 - 40 bicycles per year

LONG - TERM

Build a manufacturing plant in the Philippines

Export esp. to Europe

Attitude Towards Innovation:

DO IT YOURSELF (DIY) mindsetVision:“ ”

To provide efficient mobility solution to the world. To celebrate a lifestyle lived largely in the city with your very own folding and functional handmade bicycle.

Analysis of the Industry

Bicycle is a form of human powered vehicles (HPVs); also called cycling.

City Commercial Recreational Organized Rides Mountain


Bicycle is a form of human powered vehicles (HPVs); also called cycling.

City Commercial Recreational Organized Rides Mountain


Bicycle Sales by Category (2005-2012)Type 2005 2006 2007 2008 2009 2010 2011 2012 Change '11 vs. '10 Change '11 vs. '05

Road/700c 16% 18% 21% 20% 20% 23% 24% 25% +2 -2Mountain bike 29% 24% 25% 26% 24% 22% 23% 24% +4 +10Hybrid/cross 14% 19% 17% 18% 21% 21% 20% 20% -4 +4Comfort 14% 17% 15% 16% 15% 13% 14% 13% -1 -1Youth 15% 14% 12% 12% 13% 12% 12% 12% - -3Cruiser 6% 6% 7% 6% 6% 6% 6% 5% -1 -1Recumbernt/Tandem 2% 1% 3% 1% 1% 2% 1% 2% +1 -Electric NA NA NA NA NA 0.60% 0.30% 0.50% +2 NAFolding NA NA NA NA NA 0.20% 0.40% .4%` - NASource: National Bicycle and Dealers Association

* Market is considered to be small* No dominant design exist in the market


Porter’s Five Forces

Rivalry Among Competitors

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of New Entrants

Threat of Substitutes


Porter’s Five Forces: Rivalry Among Competitors






LOW Nyfti is the first folding

bicycle ever made in the Philippines.

Nyfti bicycles are all handmade.

Nyfti bicycles are highly customizable.


Porter’s Five Forces: Bargaining Power of Suppliers






HIGH All the raw materials are

imported from various parts in Europe, US and Japan.

Non-exclusive supplier-owner relationship.


Porter’s Five Forces: Bargaining Power of Buyers






MODERATE The bicycles are priced with 40%

profit margin. The price of Nyfti is near the

average price of folding bicycles around the world.


Porter’s Five Forces: Threat of Substitutes






LOW No competitors exist locally. Locally manufactured therefore

parts repair and other after-sales services are readily available.


Porter’s Five Forces: Threat of New Entrants






MODERATE to HIGH No economies of scale. Patent pending for the geometric

process of creating a folding bicycle.

Weak cost advantages

Evaluation of the Innovation System

IDEA CREATION PRODUCT DEVELOPMENT

PRODUCT COMMERCIALIZATION

Non-linear innovation process.





“PASSION PROJECT”

NYFTI Product Development IDEASPACE

AIM

BIR

SEC

DLSU

One-year R&D joint venture with DLSU’s Engineering Department to develop electric folding bicycle.





“PASSION PROJECT”

NYFTI Product Development IDEASPACE

AIM

BIR

SEC

DLSU

One-year R&D joint venture with DLSU’s Engineering Department to develop electric folding bicycle.

VENTURE CAPITALS

Description of the Innovation Project: Form, Type, Protection, Strategy Formulation and Business Model


NYFTI is both a sustaining and an architectural innovation that resulted to a product innovation.

NYFTI’s strategy includes its three competitive advantages:

Bike Mode Fold Mode Cart Mode


In comparison to the industry:

Brand Price In Eur Price In Peso Headquarters PositioningAirnimal White Rhino 1899 93,373.83 United Kingdom Brompton H6L 1080 53,103.60 United Kingdom Montague Boston 8 950 46,711.50 United Kingdom High-endBeixo Compact Low 780 38,352.60 The Netherlands Nyfti 712 35,000.00 Philippines Dahon Jifo 609 29,944.53 California Tern Link P9 550 27,043.50 Singapore MidDahon Vybe C7A 380 18,684.60 California Carrera Transport 300 14,751.00 United Kingdom Tern Link C7 299 14,701.83 Singapore Low-endRaleigh Stowaway 3 275 13,521.75 United Kingdom Sources: Bicycle Retailer and Industry News, http://www.bicycleretailer.com/


Supplier 1

Supplier 2

Supplier 3

Full Manufacturing

ProcessRetail Shop Consumers

Supply Chain Model

Retail Model


Supplier 1

Supplier 2

Supplier 3

Full Manufacturing


Supply Chain Model

Retail Model

* Customized NYFTI


Supplier 1

Supplier 2

Supplier 3

Full Manufacturing


Supply Chain Model

Retail Model

* Customized NYFTI

Design your own NYFTI Choose among a selection of

accessories (i.e. water bottle holder, soft case luggage (leather), front mount bag


Key Partners Key Activities Value Proposition Customer Relationship

Customer Segments

- International suppliers in Europe, USA & Japan

- Designing and manufacturing folding bicycle

- Fully customizable colors and personalized accessories

- Long-term relationship with avid cyclists

- Targeted market segmentation:

- Joint ventures with DLSU

- Effective product turnaround

- made of high quality imported materials

- Attract and educate more customers

1. Cyclists who are also professionals.

- Ideaspace Foundation

- Collect feedback - handcrafted to perfection

- Listen to feedback 2. Extroverts, Travelers, Mavericks

- analyzing consumers demand and traffic

- durable but light and portable

Key Resources - first rate design and

aesthitically pleasingChannels

- website and

accounts on various platforms

- NYFTI shop at Paco, Manila

-guaranteed warranty

and support available- NYFTI's official website

- Social Media - Published articles - Ideaspace website Cost Structure Revenue Steams - Five full-time employees - Sale of goods, accessories and after-sales

services - Warehousing and logistics - Marketing expenses - CAPEX

NYFTI BUSINESS MODEL as of May 2015

Description of the Innovation Project: Implementation/Commercialization Methods and Approaches

Description of the Innovation Project: Implementation/Commercialization Methods and Approaches

In the process of creating a Kick starter Campaign to get more funding.

Analysis of Strategic, Implementation and Deployment Problems & Issues

Imported raw materials are highly affected by price changes in the world market;

The manufacturing process is very manual to keep up with demand;

Passive role of government in terms of support for alternative means of transportation.

The Philippine urban environment is not the most conducive place for cyclists.

The Philippine market is slow in the adoption of folding bicycle.

Not enough funding to manufacture more bicycles in the street

Outdated market analysis No product diversification

CONSPROS Very entrepreneurial Niche market where no dominant

design exist yet Active roles of universities and private

firms in technology transfer Focus on export quality and design. Support for the “GREEN” environment

movement Customer-driven market strategy Capable of competing in a mid to high

end market Positive attitude towards emerging

technology (electric folding bicycle) New opportunities to export in the

European by applying for the GSP or GSP+ arrangement.

Recommendations Create a kickass Kick starter Campaign

Market the product and communicate the brand effectively

Develop and create a more diversified portfolio

Keep on innovating

Learning & Conclusion

- END -

NYFTI is a viable business venture and has a potential to grow.

Providing high quality and export material bicycles and aspiring to create more jobs for the Filipinos are both great motivations and a true example of Technonationalism.

While both government (through DOST) and private firms are investing on emerging technologies and encouraging entrepreneurship, there is the unfortunate truth that there is a lack of connection between these two to maximize technology transfer.

Universities are great sources of talents.

Technology

Innovation Case Study