Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Business Model Canvas

No description

Edgar Sanchez

on 7 December 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Business Model Canvas

Business Model Canvas Customer Segments Primary care doctors
Value Proposition Channels Sales Force office visits etc.
Word of mouth
Digital marketing Customer Relationships Revenue Streams Asset Sale
Bargain Sale (volume dependent)
Disposables Key Resources ASU Professors
Initial Capital
r&d biosensors engineers Key Activities Production - Improving manufacturing costs
Problem Solving - R&D,
sales &marketing Key Partnerships Design-manufacturing firm
OEM manufacturers Cost Structure Cost driven - Reduce manufacturing costs Device for fast diagnosis of genetic susepatabilities and infectious disease contamination of an analyte Edgar Sanchez Lessons Learned Device is more valuable than expected
Doctors are more interested in UTI's rather than other infectious diseases
Should market the device as a screening tool, not to replace current diagnosis standards Medical Device Market Research Outlook-
Affordable health care act injects 32 million into healthcare
Expanding global markets
Aging population
Continual growth predictions Industry codes NAICS 325413: In-Vitro Diagnostic Substance Manufacturing
SIC 2835: Diagnostic substances In-vitro Diagnostics Market Research Opportunities-
health care reform
High volume, low reimbursement- quick/affordable diagnostic tools
genome research
underlying causes of diseases
personalized medicines
Aging population - home monitoring Other Information New digital marketing techniques- online marketing
Joint venture with interested parties
Quality control -Number of care visits to physician offices in US: 1 billion
-number of physician offices in US- 73, 260
-number internists in US - 37,44

-Number of nursing homes in US: 16,100
-Number of beds: 1.7 million Lessons Learned Sales team is still primary way of reaching doctors
Word of mouth is best advertising / local sales/"one shot deal"
Hospice/Nursing homes wouldn't use unless extremely cheap COST Commission Profit+SG&A+R&D Distributor Channel Types Direct Indirect Awareness Evaluation Purchase Own Partner Delivery After Sales Sales
Word of mouth Try-out Through me
Distributor Mail Personal assistance
Certification Complexity Archetype Physician with his/her own practice (primary care)
He/she makes all the decisions about new purchases
He/she keeps-up with new technologies and sees its importance
He/she buys online for repeating purchases, but he/she is open to new methods
Open to new revenue streams
Cares about patients' health, and wants profits Demand Creation LTV>CAC - LTV should be greater than CAC

Customer Acquisition Cost= ($300 commission+$300 visits+$20 pamphlets) X (one in 15 doctors buy it) = $9,300

LTV = ($400 profit/device)+($40/strip)x(5 strips/month)=$12,300
LTV>CAC Lessons Learned Doctors want to make money
Most medical device developers sale their devices to big companies
If product covered by medical insurance, they set price. (approval process)
Get - sales visits, constant contact, investment
Keep - offer assistance, profits for office
Grow - word of mouth -number of physician offices in US- 73, 260
-number internists in US - 37,440
+110, 700 potential customers 1 in 15 will buy = 7,380 units sold How many sold? Revenue Model Yearly Calibration
Different Strips for different targets
Disposables Pricing Would pay $1,000, but valued at $5,000
strips valued at $75

LTV = ($4,400 profit/device)+($75/strip)x(5 strips/month)x(for 5yrs, 60mo)=$26,900
$26,900 x 7,380 = $198,522,000 Best Case
$20,700 x 7,380 = $152,766,000 Worst case or Nothing Time to 1st sale = 2.5 - 3 years
Estimated four months to first $100K, 36 to first M
Patent first Learned mdiConsultants

Innovative Design

OEM manufacturers Different goals
lack creativity

Different goals
IP issues
Sub-par designs

Different goals
limited in input
GMP Product design

Product design

Product design
Advertising FDA clearance

Experts in design
to manufacturing

Lower manufacturing
costs Partner Benefit to them Benefit to me Risks Partner Matrix Lessons Learned FDA is much more complicated than I thought
Pick right partners
Very important to have manufacturers included in design iteration cycle. ASU Professors - necessary, co-inventors
Initial Capital - ASU competitions, SBL, other investors
r&d biosensors engineers Key Resources Lessons Learned Need investors
Need more proof of concept
IP Profit Unit Costs Unit cost= $225.70
Sell for =$5000
Profit = $ 4775/unit
X 7,380
$35M Lessons Learned Professor willing to patent
Publishing by Jan 13' Important Costs Unit
Initial Costs (equipment $75K)
Employee Salaries Initial Costs EIS equipment - $50, 000
Plastic molding - $5, 000
PCB $5, 000
Overhead - $15, 000 -number of physician offices in US- 73, 260
-number internists in US - 37,440
+110, 700 potential customers 1 in 15 will buy = 7,380 units sold Strip cost= $1.83
Sell for = $75
Profit = $ 73.17/strip
X 7,380 X 5 strips/month
$2.7 M/Month Personal Assistance
Automated Services Detection of desired genes in patients
Detection of UTI's
High specificity/sensitivity
Small device -
Full transcript