BUSINESS MODEL ANALYSIS

D&O GREEN TECHNOLOGIES BERHAD

NORASLINA ZAINAL ABIDIN (SX161550HADF01)

NURIYLIA ISMAIL (SX161551HADF01) SHAD 4043

SHARIFAH ANISAH SYED HARUN (SX161553HADF01) MANAGING NEW AND GROWING TECHNOLOGY-
BASED VENTURE
SITI NURAMIRAH HAMZAH (SX161554HADF01)

NURSHOBERAH ZAINAL ABIDIN (SX191779BSDF01)

http://www.free-powerpoint-templates-design.com
INTRODUCTION
The Business Model Is A System Of Resources And
Activities, Which Create A Value That Is Useful To The
Customer And The Sale Of This Value Makes Money For
The Company.
Companies change not only their product, but also their culture, way of selling,
customer relationship or internal structure. They try to stay in the market,
differentiating from their competitors and create value added, which gives
them a long-term advantage. New technology, better education, globalization,
news and powerful communication tools distribution network creates new
opportunities for business expansion. The main goal business model analysis is to
identify new business systems, trends and changes.

Other than that, entrepreneur must uncover the nature its ‘profit engine’ which
is often obscured by ambitious financial and market projections and they have
to ensure their business concept can be translated into a viable, profitable
business venture and how much it will take to achieve that result.
 BACKGROUND
D & O Green Technologies Berhad
The Company is engaged in the provision of management
01 services (including manufacturing plant facility services).

The Company's segments

02 It is Asia, Europe, United States of America and Other Countries.

The major business of D&O group

Provide services of Original Equipment Manufacturer (OEM),
03 Original Design Manufacturer (ODM) and Original Branding
Manufacturer (OBM) in Opto semiconductor products cater for
automotive, general lighting, backlight unit and sensor
04 applications.
D&O and Subsidiary
OMEGA SEMICONDUCTOR SDN BHD and DOMINANT OPTO TECHNOLOGIES
SDN BHD. Thus, DOMINANT OPTO TECHNOLOGIES SDN BHD itself have an 11
subsidiaries in worldwide such as in Korea, Shanghai, Europe, Japan, and
Singapore.
 THE COMPANY’S SUBSIDIARIES
Omega Semiconductor Sdn. Bhd.
(Omega),
which is an investment holding
company;
Dominant Opto Technologies
Sdn. Bhd. (Dominant)
which is engaged in
manufacturing semiconductor
components and machineries;

D&O GREEN Dominant Opto Technologies

TECHNOLOGIES
Dominant Opto Technologies
Korea Inc
which is engaged in
merchandising semiconductor
components,
(Shanghai) Co., Ltd.,
BERHAD
which is engaged in development of
semiconductor application
technology, installation, wholesale
and retail of semiconductor devices,
electronic components, electrical
equipment for lighting, electronic
display screen, lighting fittings,
import and export of related
products.
THE ANALYSIS BASED ON 4 DIMENSIONS
Revenue Sources
Revenue streams that generate business model.
Sources of revenue streams (sales, service fees,
advertising, subscription). The relative size of revenue
streams and how its growth.

Key Expenses
The impact on the cost structure, the
relatives size and importance as well as
effect on time.
Investment Size
Cash that required to launch business
model. Timing of cash needs. How much
working capital is required to sustain the
business?
Critical success Factor
Which elements of a company’s business
mode are most important to achieving its
profit goals?
 Revenue Sources
For revenue model D&O can incorporate several different
The D&O sell several of product revenue streams thru direct like sales of the product and services,
but for indirect revenue come from customer to generate other
and services. income. The Group transfers control of a good or service at a
This is to stimulate revenues where the main point in time unless one of the following overtime criteria is met:-
sources is the provision of management services
(including manufacturing plant facility services) Group performs
and they also provided another product and
The customer simultaneously receives and consumes the
services with on their subsidiaries company
benefits provided as the Group performs.
which is manufacturing semiconductor
components and machineries, merchandising
semiconductor components, development of Group’s performance
semiconductor application technology, The Group’s performance creates or enhances an asset
installation, wholesale and retail of that the customer controls as the asset is created or
semiconductor devices, electronic components, enhanced.
electrical equipment for lighting, electronic
display screen, lighting fittings, import and export Enforceable Payment
of related products to more expend their The Group’s performance does not create an asset with
business to ensure they have a strong business an alternative use and the Group has an enforceable
modal. right to payment for performance completed to date.

Sale of Goods
Revenue from sale of goods is recognized when the Group
has transferred control of the goods to the customer,
being when the goods have been delivered to the
customer and upon its acceptance. Following delivery,
the customer has full discretion over the manner of
distribution and price to sell the goods, and bears the risks
of obsolescence and loss in relation to the goods.
The Group’s obligation to replace or compensate faulty
products under the standard terms is recognized as a
provision.
A receivable is recognized when the goods are delivered
as this is the point in time that the consideration is
unconditional because only the passage of time is
required before the payment is due.
Government Grants
Government grants are recognized at their fair value when
there is reasonable assurance that they will be received
and all conditions attached will be met.
Interest Income
Interest income is recognized on an accrual
basis using the effective interest method.
Dividend Income
Dividend income from investments is
recognized when the right to receive
dividend payment is established.
Rental Income
Rental income is accounted for on a
straight-line method over the lease term.
Rendering of Facility Services
Fee
Revenue from providing facilities services is
recognized over time in the period in which the
services are rendered. Customers are invoiced
on a monthly basis and consideration is
payable when invoiced.
 Grants Compensate
Grants that compensate the Group for expenses
incurred are recognized in profit or loss on a systematic
basis over the period necessary to match them with the
related expenses which they are intended to
compensate for. These grants are presented as other
income in profit or loss.
Grants that compensate the Group for the cost of an
asset are recognized as deferred grant income in the
statement of financial position and are amortized to
profit or loss on a systematic basis over the expected
useful life of the relevant asset.

D&O Revenue Plan

With a clear revenue model, and D&O's clear plans to

generate revenue on a monthly basis. Businesses may be
struggling because of the costs they have to maintain to
avoid severe losses. By having a clear revenue model, D&O
can focus on target audiences, design funding for products
or services, and establish marketing plans, begin a line of
credit and raise capital.
 Expenses Of The Company Over Year,
Key
Expenses
Automotive LED lighting
The earning growth has
greatly improved due to the
2019 shifting in focus to automotive
LED lighting
RM15.9m
Capital spending of
D&O Green
Technology Berhad

Incurred higher capex

due to purchase of tools New Automotive Models Rollout
and equipment for new In-line with the new
production lines,
upgrades of existing
automotive models rollout,
machinery and D&O remains aggressive in its
equipment, plant capital spending as seen in its
automation, latest quarterly earnings. All in,
improvements on quality
control processes and
they are expecting the group
renovation of the new to maintain its annual double-
factory. digit growth for both FY19 and
FY20.
 Investment Size
These shows how global their investment area and in a day they
D&O Had Quite Large Spectrum In Investing, can reach over a million trading volume.
Based On The Edge Market (Idris, 2017)

“Several parties have approached the

company expressing interest as the
semiconductor industry undergoes a
consolidation process globally”

“D&O added that the change in business focus,

coupled with the burgeoning global automotive
industry, could account for the trading activities
of the company.

“The increase in investors’ interest may also arise

from an analyst report on the company by
Public Investment Bank dated March 6, 2017,” it
said, adding that it is unaware of any other
possible explanation to account for the trading
activity.”
 Critical Success Factor (CSF)

Critical Success Factor

It derived from goals and
objectives of the organizations
where certain factors and
processes have to be in place.
Below is the part of the Critical
Success Factor that has been
implement in D & O Green
Technologies.

There are few points that D & O

Green Technologies do before
deriving the Critical Success
Factors in order to maintain the
effectiveness of the processing
flowchart.
D & O Green Technologies Plan to Critical Success Factors

Determination of Goals Effective Process Of Manufacturing Time

Frame
To start any jobs or project in every
organization, goals have to be discussed, Dominant’s manufacturing concept
correlated to the owner’s objectives and optimizes the benefits derived from
criteria, agreed to, and in fact embraced by state-of-the-art technology by
the extended project team. As these goals
integrating automation into every
are defined, they are included in the
Owner’s Project Requirement (OPR) element of manufacturing. This
document. Most respondents accept that concept has forged an efficient and
goals towards sustainability are an extremely productive corporation that is thriving
important factor. in the face of dynamic market
challenges.
The finding from the case study shows that
the D & O Green Technologies is to increase
the quality and reliability of our products and
services to add value to our customers.
Key Components Of Dominant’s Manufacturing Process

1 2 3 4

Highly automated 100% In-house Strong Equipment and

manufacturing line Manufacturing for better Process Automation Extensive Adoption of
using Reel-to-Reel Quality Control Capability
IT Systems
Matrix Lead-Frame
Concept
A significant proportion
of the critical Information
All processes from Technology Systems
Manufacturing assembly to equipment are
processes are designed and are extensively
electroplating and test
integrated into four assembled in-house. adopted in the
are carried out within
main modules, This capability allows production floor in to
DOMINANT's very own
allowing rapid facilities. for 'quality' to be minimize lead-time
capacity expansion inherently designed and improve quality
based on modular into the production control.
increments. equipment.
D & O Green Technologies Plan to Critical Success Factors

Performing the Winning Method of Procurement Customer Satisfaction

Strategy Selection of proper method
It is essential to understand
of procurement is one of
Strategy comprises of two that customer is divided into
the elements of critical
pivotal elements that are two which is internal and
success factors in D & O
now synonymous to the external customer. Here, the
Green Technologies. To
fundamental emphasis in client (internal) should
make the product more
terms of Dominant Opto define what value means to
effectives and maintaining
Technologies’ : them by ascertaining the
the process of producing
-Customer service with relative importance of
any product, an
speed and competitive these criteria, and then the
organization should choose
pricing through extensive best value solution is
the right supplier. They also
manufacturing automation selected by matching the
should be alert of the
-Flexible manufacturing client’s assessment and the
choosing and estimating
concept utilizing common performance of different
the pricing of the element
platforms alternatives.
of the components.
REFERENCES
https://www.cjournal.cz/files/178.pdf

http://www.bursamarketplace.com/mkt/the
market/stock/DOVT
http://www.dominant-semi.com/

Idris, a. n. (2017, march 10). the edge

financial daily. Retrieved from the edge
markets:
https://www.theedgemarkets.com/article/d
o-green-technologies-talks-interested-parties
Kenanga, r. b. (2019). D&O Green
Technologies Trade War Clouds 2H19
Outlook. malaysia: KENANGA INVESTMENT
BANK BERHAD. Retrieved from
https://kenanga.com.my/wp-
content/uploads/2019/02/DO-190612-CU-
MidS-1.pdf
 BUSINESS MODEL ANALYSIS OF
D&O GREEN TECHNOLOGIES BERHAD

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