STRATEGIC

R&D ALLOCATION

Team Members:​
Aravind Vijayaraj​
Arda Uzunçarşılı​
Jebin Tomy​
Pelin Yuvakuran​
Powering Progress, One Innovation at a Time. Sayalee Thorkar
 EXECUTIVE SUMMARY

Total Revenue
Year 10
= $363.30M AGM SC Total
and growing.....
360

Profit Margin = 340

320
300
280

Revenue (In Millions $)

260
240
220
200
180
160
140
120
100
80
SC
AG 60

3
0

10
ar

ar
ar

ar

ar

ar

ar

ar

ar

ar

ar
Ye

Ye
Ye

Ye

Ye

Ye

Ye

Ye

Ye

Ye

Ye
 Status Quo and Goals 1
Strategy 2

TABLE OF The Breakthrough Moment 3

CONTENTS
KPI 4
5
Conclusions & 6
Recommendation
Insights & Questions 7
 STATUS QUO & GOALS
Company: Back Bay Battery Inc.​
GOALS
Industry: Energy Storage Solutions (Batteries)​
​Markets Served:

Storage for solar Warehouse Marine

power systems equipment applications

Product overview: Goal: To optimize long-term profitability

1. Supercapacitor Battery through strategic investments, pricing,
Ultra-fast charging/discharging and alignment with market trends.
Very long lifespan, low energy storage
2. AGM Battery Challenge:
Maintenance-free and leak-proof Evaluate the role of supercapacitors –​
High power, slower charging an emerging, potentially disruptive ​
technology.
STRATEGY

Investment Shift

Progressive Focused Agile Response

Early Revenue
Shift Toward Resource to Evolving
Stabilization
High-Growth Allocation for Market
with AGM
SC Investment Long-Term Requirements
Value Creation
 AGM SC Total

360

REVENUE 340
320

PERFORMANCE OVER 300

280

TIME

Revenue (In Millions $)

260
240
SUSTAINING VS DISRUPTIVE TECHNOLOGIES 220
200
The results highlight how sustaining technologies 180

(AGM) show early growth but decline over time, 160

140
while disruptive technologies (SC) experience 120

significant long-term growth and transformation. 100

80
60

3
0

10
ar

ar
ar

ar

ar

ar

ar

ar

ar

ar

ar
Ye

Ye
Ye

Ye

Ye

Ye

Ye

Ye

Ye

Ye

Ye
THE
BREAKTHROUGH MOMENT

Energy Density - SC Manufacturing Cost - SC Energy Density - SC

Year 7 Year 7 7
Year Year
Year 10
10
 AGM SC
12
11

R&D 10
9 9 9

COSTS 8

8
8

7 7
8

In Millions $
This phased strategy begins with strong AGM 6 6 6
6
investment (Years 0–2) for stability, then shifts 5

9 9 9
focus to SC from Year 3, aligning with future 4 8
7 7
market demand. Increasing SC investment signals 6 6 6

a long-term bet on innovation and growth. 2

3 3

3
0

10
ar

ar
ar

ar

ar

ar

ar

ar

ar

ar

ar
Ye

Ye
Ye

Ye

Ye

Ye

Ye

Ye

Ye

Ye

Ye
 KPI’S & PERFORMANCE
METRICS
Sales by Product
Cummulative Profit over years
70 AGM (M) Supercapacitor (M)

60 30
61
Cummulative Profit (in %)

50 25
48

Units (in Millions)

40 20
37
30 15

20 23
10
15 16
10 11 5
7
0
0
1

9
0

10
5
3

8
4

7
ar

ar

ar

ar

ar

ar
ar
ar
ar

ar

ar

10
5
3
0

9
2

8
7
Ye

ar
Ye

Ye

Ye

Ye

Ye
Ye
Ye
Ye

Ye

ar

ar

ar

ar
ar

ar
ar
ar
ar
Ye

ar
Ye

Ye

Ye

Ye

Ye
Ye

Ye
Ye
Ye
Ye

Ye
Achieved a cumulative profit through disciplined R&D AGM sales dominated early years; SC growth
investment and timely scale-up of SC technology. accelerated from Year 6 onward due to R&D-driven
performance gains.
 KPI’S & PERFORMANCE
METRICS
R&D Strategic Allocation Performance
Energy Density Energy Density
AGM (M) Supercapacitor (M) AGM (Wh/kg) Supercapacitor (Wh/kg)
7 2500

6
2000
Investment (Millions)

Watt Hours/Kg
4 1500

3
1000
2
500
1

0 0
1

8
5

10
0

9
4
3

8
3
0

10
4

7
ar

ar

ar

ar
ar

ar

ar
ar
ar
ar

ar

ar

ar
ar

ar
ar

ar

ar
ar
ar
ar
Ye

ar
Ye

Ye

Ye
Ye

Ye

Ye
Ye
Ye
Ye

Ye

Ye

Ye
Ye

Ye
Ye

Ye

Ye
Ye
Ye
Ye

Ye
Strategic front-loading of AGM (Years 3–4) and SC Enhanced KPI’s in alignment with segment needs.
Energy Density (Years 3–10, with major ramp-up in Years Energy density & self-discharge aligned with customer
8–10). priorities for durability and efficiency.
 KPI’S & PERFORMANCE
METRICS
R&D Strategic Allocation Performance
Energy Density Energy Density
AGM (M) Supercapacitor (M) AGM (Wh/kg) Supercapacitor (Wh/kg)
7 2500

6
2000
Investment (Millions)

Watt Hours/Kg
4 1500

3
1000
2
500
1

0 0
1

8
5

10
0

9
4
3

8
3
0

10
4

7
ar

ar

ar

ar
ar

ar

ar
ar
ar
ar

ar

ar

ar
ar

ar
ar

ar

ar
ar
ar
ar
Ye

ar
Ye

Ye

Ye
Ye

Ye

Ye
Ye
Ye
Ye

Ye

Ye

Ye
Ye

Ye
Ye

Ye

Ye
Ye
Ye
Ye

Ye
Strategic front-loading of AGM (Years 3–4) and SC Enhanced KPI’s in alignment with segment needs.
Energy Density (Years 3–10, with major ramp-up in Years Energy density & self-discharge aligned with customer
8–10). priorities for durability and efficiency.
 PERFORMANCE METRICS
Year 3 Year 10 Year 3 Year 10 Improvement AGM SC
550.00
550 532.00 100
2018.00 5157.00 5526.00

500 Energy
11.63% 99.60%
450 441.00 Density
412.00
80
400
Recharge
350 6.58% 6.68%
60 Cycles
300

250
40
Self
200
175.00
162.00 Discharge 76.92% 23.53%
150 23.48 to 50%
100 20 17.00
13.00 12.77
10.00 10.00
50 8.00
Recharge
3.00
13.00 6.35 6.14 -8.02% 0.00%
0 0 Time
it
e
s

it
e
ity

%
s
ity
le

le
Un

Un
50

50
ns

ns
yc

yc
Ti

Ti
er

er
to

to
De

De
C

C
ge

ge
tP

Variable

tP
e

e
ge

ge
ar
gy

ar
gy
rg

rg
os

os
ar

ar
ch

ch
er

ha

er

ha
C

C
ch

ch
En

Re

Re
En

Cost -3.42% -83.87%

sc

sc
e

e
Re

Re
bl

bl
Di

Di
ria

ria
lf

lf
Se

Va

Se

Va
Per Unit
AGM Supercapacitor
CONCLUSIONS &
RECOMMENDATION
INSIGHTS & QUESTIONS

Reflecting this assignment, we …

… gained these insights ... have these questions