Biz Model for Baxter's Robots

baxter™

Business Model for The Unique Robot

with Unique Features

Wong Kim Jyh A0098426UCho Eng Keong Benjamin A0098460XLoke Kah Yeong Jeremy A0098545NChong Meiyi A0035569WTan Wei Chin A0117107RTeo Seow Kian A0098492M

Presented by Team Robotics

Outline

Customer Segment

Introduction

Value Proposition

Value Capture

Scope of Activities

Strategic Control

baxter™the Collaborative Robot (CoBot)

Hi…take a look at me!

Simple Tasks

Medium Quality Usage

Most Demanding and High Quality Usage

KUKA built “TITAN”: The World's

Strongest Robot

Automotive Industry

Laser Cutting Industry

Palletising Robots

But question is, do some of these simple tasks need to be done

by bulky, precise, expensive fixture robots?

The MarketIndustrial Robots

• A trend where there is an increasing demand for simple tasks to be done by low cost, flexible, versatile, user friendly robots for simple applications.

• To collaborate with human workers, where anyone can train and use it

“Building robots for these small and medium-size companies is a fantastic opportunity. There are many tasks that do not require the speed and precision of today’s industrial robots and these tasks are begging to be automated.” says Henrik I. Christensen, a professor of robotics at the Georgia Institute of Technology, in Atlanta, who’s an expert in industrial automation.

http://spectrum.ieee.org/robotics/industrial-robots/rethink-robotics-baxter-robot-factory-worker

The Demand

baxter™ the Cobot

Value Proposition

I am…Easy to TrainEasy to UseSafe to Use

baxter™How to train robots in the past

• Need Test Engineer to write the Robotic Firmware Code• Need to test the code and commission the robots• Tedious to rewrite the code• Another new Engineer will need to read the code from scratch to

reprogram the robot

Easy to Train

baxter™

No Programming Needed Can be easily trained by any workerin minutes by moving arms and joints in7 steps

Easy to Train

baxter™Follow-My-Lead Teaching of baxter

Easy to Train

baxter™

• All joints contain force sensors, to detect and feedback movement so that it can “feel” for objects and work surfaces

Easy to Train

• Sonar sensor and 5 cameras will pick up the visual motion paths that the users provide to baxter.

• And also the part size, placement, conveyor speed etc.

• Firmware compensation allows users to push and pull the robot arms around for follow-my-lead programming.

• So that the motion can be “programmed” into baxter

Force Feedback Actuators Integrated Vision AI Firmware

How does baxter to it?

R&D Core Asset

baxter™

• Cognitive Response through Graph architecture

• Traditional Robot: one event must be completed before another even takes place

• Baxter Robot: Simultaneous events allowable e.g. both arms and head moving at the same time

Traditional Architecture

Baxter’s Architecture (Graph)

Easy to TrainAI firmware allows operations to occur at the same time

15

2

6 4

3

baxter™Intuitive User-friendly Interface and Hardware

• UI guides interaction between user and robot by providing status and attention indication e.g. facial expression indicates if it is struggling with job

Easy to Use

• Buttons located conveniently for easy accessibility

• Stored programs for “common” actions

e.g. Left arm to mirror right arm

baxter™Interchangeable End-Effectors

• Easy switching of tasks

• Versatile and flexible for various operations

• Customization of end-effectors available (third partly providers)

Parallel Grippers

Vacuum holders “Finger and Fingertips”

Easy to Use

baxter™Results in Fast, Easy and Versatile Deployment

• Allow frequent line changeovers based on manufacturing demand

• Baxter can store well over 100 tasks in its memory, you can always go back to an earlier job without even having to retrain it.

• Material Handing• Loading/Unloading Lines• Packing/Unpacking• Machine Operation• Light Assembly• Inspecting, Testing and Sorting

Easy to Use

baxter™In the past, robots are caged for safety

“when baxter’s arm smacks into something, it just bumps off without causing harm”

Safe to Use

Caged Robots, lest their rigid, fast and powerful movements injure or kill someone

baxter™

Exclusive licensed a patented

Series Elastic Actuator (SEA)

in Baxter’s arm motion.

• series elastic actuators, in which a motor and gearbox control a spring that drives the joints, rather than directly controlling the joints. Thus making each arm less rigid

• they can sense, “feel” and adjust to any obstacles they encounter

Safe to Use

Convention Motor Drive

Patented SEA Technology

Customer SegmentsHi…I’m happy to be of

service to you!

• Vanguard Plastic manufactures a variety of plastic parts (different size, shape, design, color) for customers

• 1 day to program one conventional existing robot to pack a single part

• With Baxter, they only need 1 hour to install and less than 30 min to teach a new task

• Flexibility and time saving for the packaging of the numerous varieties of plastic products

Uses baxter for ease of programming and flexibility

Plastic Contract Manufacturers

Loading, Packing and Machine Operation

Need the flexibility to quickly adjust to demands because

• High Mix Manufacturing

• for tedious jobs such as snapping plastic parts together and packing building block toys

Toy Parts Manufacturers (SMEs)

Uses baxter for ease of training and usage

Packing and Assembling

Require robots which are:

• Easy to develop new applications– Open source Software Development

Kit (SDK) based on ROS (Robot Operating System)

• Versatile– Able to handle a wide range of simple

tasks; easy to train

– save students from the tedium of repeatedly doing mundane data gathering, allowing students to focus on more involved research

• Safe to use– Since they will be lots of interactions

between students and robots.

used the SDK to develop a LabVIEW-based interface for controlling Baxter from a laptop and for viewing and recording images from the robot's five cameras

MIT’s labs use Baxter to scan a large number of people and objects with a Kinect-like camera to collect a large library of scanned items.

Universities &Research Institutes

Research, Teaching and 3D Scanning of Multiple Objects

Competitors

Who are these people snatching

my job?

ABB

Universal Robots

FANUCKawada Industries

Yaskawa

KUKA

Primary competitor Secondary competitor

Competitors

Rethink Robotics

Adept TechnologyBarrett Technology

Kiva SystemsMeka Robotics

Stäubli

Competitors’ Products

Universal Robots UR5 and UR10 Motoman SDA10D (a YASKAWA company)

Comparison of some key parameters

Baxter (Rethink Robotics)

UR10 (Universal Robots)

SDA10D (MotomanRobotics)

Weight 78Kg 28.9Kg 220Kg

Payload (Weight Carrying Capability)

2.3Kg 10Kg 10Kg

Ease of Training Robot

By moving arms and hands of Robot

Teaching application on Polyscope 12” graphical user interface

Uses DX100 Robot Controller (250kg)with INFORM III, menu-driven programming

Reach per arm 104cm 130cm 72cm

Vision Controlled Yes (5 Cameras + Sonar) No No

Degrees of Freedom (per arm)

7 6 7

Cost (USD $) $22,000 $34,000 $54,000

Strategy Canvas (against Competitors)

Value Capture

Money…$$$$

Revenue Model(s)Present

Markup Revenue Model

Sales

• Sales of Baxter

• Sales of Add-ons

Service

• Extended Warranty

What we propose

Markup Revenue Model

Metered Service

Rental Service

Licensing Model

Current Revenue Stream

Markup

Metered ServiceRental Service

Licensing

Customer

Customers

Customer

Rethink

Robotics

Distribution

Partner(s)

Baxter

$$$ Order

Extended

Warranty

$

$

Baxter Add-ons

Order

% of

Revenue

Distributor

RightsSuppliers

$ Contract

Components & Parts

Proposed Revenue Stream

Markup

Metered ServiceRental Service

Licensing

Customer

Customers

Customer

Rethink

Robotics

Distribution

Partner(s)

% of

Revenue

Distributor

Rights

Rental of Baxter

$$ Contract

• Charges client by the meter, i.e. how long Baxter has been working.

• Maintenance and support is provided by Rethink Robotics and its distribution partners.

• Modular design for Baxter allows easy replacement of faulty components, thereby reducing cost for service.

$

Baxter Add-ons

Order

Proposed Revenue Stream

Markup

Metered ServiceRental Service

Licensing

Customer

Customers

Customer

Rethink

Robotics

Distribution

Partner(s)

% of

Revenue

Distributor

Rights

Rental of Baxter

$$ Contract

Warehouse

ContractRental

Storage Space

Extended

Warranty

$

$

Baxter Add-ons

Order

• Charges client through rental of Baxter for specific periods of time.

• Rethink Robotics can still earn from sales of add-ons and extended warranty.

Proposed Revenue Stream

Markup

Metered ServiceRental Service

Licensing

Customer

Customers

Customer

Rethink

Robotics

Distribution

Partner(s)

% of

Revenue

Distributor

Rights

Component

Manufacturer

$$

License for interface of

End-effectors

$$

Baxter Customized End-effectors

• Gains revenue through the licensing of rights to manufacture parts using Baxter’s end-effectors.

Scope of activitiesHow was I designed and manufactured? Who are my collaborators?

Research and Development

•No programming to teach robot

• Series Elastic Actuator (SEA)

• Force feedback (sensing & control)

• Vision and force detection to “feel” for objects, people and surface

• Behaviour-based intelligence

• “common sense” operation

Artificial Intelligence

Vision

Technology

Intuitive UI and

Firmware

“Soft Actuators”

• Reduce time to market (Lean Manufacturing)Components bought from local

suppliers in USA

• Wider network – easier for vertical integration in future

• Multiple suppliers to reduce risk of losing design authenticity (being copied by competitors)

Diversification of components supplier

• Protection of design and IP

• Reduction of capital outlay (Plants and Equipment)

• Reduce Shipment cost

Assembled in Boston, Massachusetts Headquarters

• Minimum customization = lower production cost

Using off-the-shelf components; Minimum customization was

required

ManufacturingStrategy for Rethink Robotics:

High Profit Margin for each baxter.

• Outsources or license out to 3rd party vendors for the design of some componentsfor development such as customized end-effectors for specified usage.

End-effectorsCustomised end-effectors

by 3rd party

Outsourcing

Sales, Distribution and Support Partners

In Australia and New Zealand

In Europe In Japan and Asian market

In USA

Network with partners in worldwide regions that have expertise in distribution of robotics and customization of robotics parts

RethinkRobotics

Partners

R&D

Manufacturing

Sales, Marketing and Distribution

After Sales Support

Vertical (Dis)integration Chain

U.S.A based contract manufacturer (Boston)

Strategic Control

How to it protect my profits?

Strategized IP portfolio to stave off competition

• Build and strengthen its current patent portfolio with a pipeline of key patents to be filed or published

• Secure licensing deals with close associates to leverage on their patent portfolio such as iRobot Corporation which was also co-founded by Rodney Brooks, Chairman and CTO of Rethink Robotics.

Sources: http://www.patentbuddy.com/Company/Profile/RETHINK-ROBOTICS-INC./5121907http://www.patentbuddy.com/Company/Profile/IROBOT-CORPORATION/92175

• As start-up, Rethink Robotics does not have enough resources to do everything.

• Focus R&D capabilities on important aspects such as the firmware, critical key components and systems integration at platform level.

Exploit R&D Asset

Control of Interface Standards

A proposal to established a form of industry standard in the Mechanical and Electrical Interface between the robot and its end-effectors, as the demand for CoBots increase

Interface standards between end-effectors and CoBots

Sophisticatedend-effectorsavailable in the market

Interface

Leverage on Publicity to build Brand Equity

• Since launching of Baxter in Sep 2012, Rethink Robotics has been covered by world-renowned media which help establishing Rethink Robotics brand awareness.

• Continue building and maintain its brand equity on delivering Affordably-priced Quality Collaborative Robot (CoBots) to cross the chasm into the Early Majority through international trade shows and events.

Plastic injection molded Companies

Research Institution and Labs

The Early Market

Leverage on Publicity to build Brand Equity

Thank You