My students used ideas from my (Jeff Funk) class on Business Models to describe a Business Model for Samsung's organic light emitting diodes (OLEDs). this business model includes the value proposition for various markets (home and residential lighting along with mobile phone displays), method of value capture, scope of activities and method of strategic control.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
ORGANIC LED
Group Members:HT093141R Cindy Yong A0081877N Guo WeiA0081902H James TongA0082048H Kian Soon ThonHT093106H Ang Hong Kia, MelvinA0081998H Tyler Huang Tianlu
Market Drivers & Restraints for OLED Market (2011-2017)
Organic LED – Novel Lighting & Display Concepts
Lighting Evolution
Organic LED – Novel Lighting & Display Concepts
OLED Pros: The plastic, organic layers of an OLED are thinner, lighter and more flexible than the
crystalline layers in an LED or LCD. Because the light-emitting layers of an OLED are lighter, the substrate of an OLED can be flexible instead of rigid. OLED substrates can be plastic rather than the glass used for LEDs and LCDs.
OLEDs are brighter than LEDs. Because the organic layers of an OLED are much thinner than the corresponding inorganic crystal layers of an LED, the conductive and emissive layers of an OLED can be multi-layered. Also, LEDs and LCDs require glass for support, and glass absorbs some light. OLEDs do not require glass.
OLEDs are easier to produce and can be made to larger sizes. Because OLEDs are essentially plastics, they can be made into large, thin sheets.
OLEDs have large fields of view, about 170 degrees.
OLED Cons: Lifetime - While red and green OLED films have longer lifetimes (46,000 to 230,000
hours), blue organics currently have much shorter lifetimes (up to around 14,000 hours[source: OLED-Info.com]).
Manufacturing - Manufacturing processes are expensive right now. Water - Water can easily damage OLEDs.
Specs/Lighting Type
Incandescent Lamp
Fluorescent lamp LED OLED
Thickness NA NA 6.9 mm (base on LED TV)
1.8 mm
Flexibility NA NA Less than OLED Very as it can be printed as a sheet
View ability Can’t stare Can’t stare Can’t stare, point source
The Opportunity – OLED Lighting Huge investments have been made in EU, US, Japan and
Korea in OLED lighting. With about 20 OLED lighting organizations worldwide, EU is
currently leading in OLED lighting in terms of project numbers, government funding, and participating companies
Over 100 Companies and universities are currently working on OLED lighting.
Organic LED – Novel Lighting & Display Concepts
Household Lighting
Windows can be customized to illuminate.
Organic LED – Novel Lighting & Display Concepts
Household Lightings – Value Proposition
Area/surface lighting: slim, flexible or rigid factors
Tunable color for decorative use Fast switch: no noise Wide operation temperatures for use in
extreme environments Environmentally friendly: No toxic
materials Can be transparent like a window, or
reflective like a mirror
Organic LED – Novel Lighting & Display Concepts
Retail Lighting DisplayThin glass lighting panel, color can be customized.
Flexible light panel
Organic LED – Novel Lighting & Display Concepts
Clothing
Flexible light panel sew on clothing providing brighter luminance compared to conventional safety clothings
Organic LED – Novel Lighting & Display Concepts
Market Segments Two main markets: Lighting & Display
Lighting markets: Building lighting Automotive lighting
Display markets: Consumer products, e.g. TV, mobile phone, computer.
In serving existing markets needs, OLED enables creation of new market in combination of both lighting and display segments: Integrative building lighting Digital wall 3D glasses Wearable fashion/costumes
Organic LED – Novel Lighting & Display Concepts
OLED Lighting & Display
Customer Types
Cu
stom
er
Needs
Unart
icu
late
dA
rtic
ula
ted
Served Un-Served
Consumers products display, e.g. TV, mobiles, tablets etc.
Automotive Lighting
Digital Wall
Transparent Monitor
Household Lighting
OLED Costumes ?
3D glass
Rollable Display
Organic LED – Novel Lighting & Display Concepts
OLED Lighting & Display Market Segments
Smartphone takes the largest share through 2017
Target Customers Served Customers
Consumer products, e.g. mobiles, TV, tablet display.
Un-Served Customers Auto Manufacturers: Decorative lighting/display. Architects: Smart building lighting Retailers: Decorative display shelves Sales Persons: Thin & portable display Gamers: 3D glass
Organic LED – Novel Lighting & Display Concepts
OLED Lighting & Display
Focus Groups: Consumer Architects Auto Manufacturers Light Designers Fashion Designers Corporate Show Room Environment-cautious Groups
Government body Window-dressing places Theme museums
Organic LED – Novel Lighting & Display Concepts
OLED Value Chain
Organic LED – Novel Lighting & Display Concepts
Revenue Capture
System Maintenance
Service Provider
VendorsCustomized Design
& Applications Service Provider
End Users
ODM/OEM
Light DesignersResearch & Development
Components Manufacturer
Corporates
Consumers Government
<-Designs/ideas
<-Technical Spec
License fees->Products->
<-Franchise
<-ProductLighting/display solution->
<-Serving fees
Troubleshooting/maintenance->
Light Design & Application Search
Engine
Idea se
arch
ing
Pay per download->
SW UI->
<-Design/application order<-Market feedback
Organic LED – Novel Lighting & Display Concepts
Scope of Activity
R&D
Base material Manufacture
OLED Prod Line Equipment
OLED panel manufacturing
End Application system (lighting
solution integration)
Revisit Value Chain
Organic LED – Novel Lighting & Display Concepts
Projected Margin
Strengthen or build in-house capability in high profit margin sections strategic section like branding and sales
Organic LED – Novel Lighting & Display Concepts
Scope of Activity
Positioned well into: High margin
sector Strategic sector
Except… Little background
in lighting industry
Collaboration / Joint venture is recommended
Organic LED – Novel Lighting & Display Concepts
Strategic ControlProtection
Intellectual Property Rights - patent (17 years in U.S.)- trademark (logo)
Appropriating Benefits
Nature of technology - Economies of scale - Knowledge Management(explicit and tacit technology)
Control of industry - To come out with OLED Standards - Complementary assets
- Wafer fab, warehousesIn Sep 2012, Samsung filed
an injunction request against
LG for effectively stealing its
OLED technology and
business secrets by “inducing
[Samsung's] researchers to
transfer”.
Organic LED – Novel Lighting & Display Concepts
Strategic Control: Technology/Manufacturing/Brand
Organic LED – Novel Lighting & Display Concepts
Strategic Control – Samsung R&D Commitment
• Invest at least 9% of sales revenue in R&D activities
• Commit to leading technology standardization and securing intellectual property rights.
LG's 55-inch OLED TV features a unique spin on the technology that involves a fourth "white" subpixel. The TV has a white pixel layer with a color RGB filter over the top, and the fourth pixel is left unfiltered.
Samsung's ES9500 uses native red, green, and blue OLED pixels. There's therefore no need for any filters. Samsung claims this improves energy efficiency while LG criticises the system since the blue diode could age more quickly than the others.