Page | 1 THE UNIVERSITY OF TEXAS AT AUSTIN Operational Plan (OP-4: Final) Technology Enterprise Design and Implementation Central Venous Blood Pressure Measurement Medical Device: The BPS-Cardiac Team B (Chimera): Michele Gonzalez. Viridiana Omana. Marco Sanchez. Fernando Huerta. Professors: Brett Cornwell. Jeffrey Martin.
Transcript
1. THE UNIVERSITY OF TEXAS AT AUSTIN Operational Plan (OP-4:
Final) Technology Enterprise Design and Implementation Central
Venous Blood Pressure Measurement Medical Device: The BPS-Cardiac
Team B (Chimera): Michele Gonzalez. Viridiana Omana. Marco Sanchez.
Fernando Huerta. Professors: Brett Cornwell. Jeffrey Martin. Page |
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3. 1. Executive Summary BPS-Cardiac: A unique opportunity
investment for a profitable disruptive technology that saves people
lives in a cheaper, easier and painless way, here we can see the
Fact Table that summarizes briefly the investment opportunity that
will be executed in a operational plan. Executive Summary: Fact
Table. Pain, Technology and IP & Regulatory Status. Financials.
Pain: The measurement of Central Venous Blood pressure (CVBP) is
Revenues: $156.6 MUSD expensive, risky and painful. Net Income:
$139.4 MUSD Technology Status: A lab prototype fully functional has
been tested and no need for further development is required. Ready
for Cash Flow: $24.8 MUSD Manufacture Funds Required: $11 MUSD
Intellectual Property: Patent has been filed in USPTO. Regulatory
Requirements: FDA approval is planned. Commercialization (Target
Market, Differentiators, Sales Channels) Key Dates Goal: License
the technology to a major Medical Device manufacturer. Raising
Funds: Q4 2010 Target Market: Hospitals and Health ministers at
state or federal level FDA Approvals: Q4 2012 at US Market.
Starting Operations: 2013 Value Proposition: A Low cost, easy to
use and painless medical device to measure Central Venous Blood
Pressure (CVBP). Differentiators: Low cost $5,000 USD vs. $400,000
USD and easy to use and non invasive procedure vs. invasive current
solutions. Positioning: For patients who are in Intensive Care or
had a trauma accident that requires CVBP measurement. BPS-Cardiac
is the only option that is cheaper, easy to use and painless. Sales
Channels: Direct Reps, with a strong background in Medical device
Market Page | 3
4. 2. The Opportunity When a person have been through a heart
attack or a trauma accident in order to save their lives is very
critical to measure Central Venous Blood Pressure. Nowadays the
procedure to this measurement is risky, expensive and with pain
because this procedure is done by an invasive catheterism method.
The target market are public and private hospitals in US who attend
people that requires the Central Venous Blood Pressure measurement
to save their lives, trauma accidents and people who had a heart
attack is critical to save their lives to perform the measurement
in a continuously way to take preventive actions under critical
situations at intensive care units. The foundations of the value
proposition are based on: a) Significant Low cost vs. Value
Proposition $5,000 USD vs. $400,000 USD. b) Painless technology:
Current procedures are based on painless catheters with big
needles. c) Easy to use and Install: Current solution requires
heavy cost in training, installing the catheterization equipment.
d) High d3ifferentiation through unique Intellectual property: A
unique sensor and a proprietary algorithm that makes the technology
possible. Additionally is a opportunity for a market size of 190K
beds in USA that will represent an opportunity of $156M of revenue
in the case of executing the operational plan. 3. Technology This
new and disruptive technology is able to measure the pulse and also
monitor mechanical activity in a blood vessel segment, by using the
mechanical activity of both arteries and veins expansion of their
walls. This gives us intravascular pressures curves similar to that
obtained by catheterization. Fig 1. Fig. 1 This new and disruptive
technology is based on magnetic markers attached to the patient
skin, the signal obtained from the marker is recorded with a
magneto resistor magnetometer in an unshielded room, equipped with
an electronic circuit and a LabVIEW platform, then data is Page |
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5. digitized and into the computer, subsequently the signal
morphology is analyzed thought the cardiac cycle described in Fig.2
Fig. 2 4. Business Model Value Proposition: A Low cost, easy to use
and painless medical device to measure Central Venous Blood
Pressure (CVBP). Profit Formula: a) Revenue Model: Volume X Price
of BPS-Cardiac.Cost Structure: Mainly variable cost, and sales and
marketing cost. b) Margin Model: Healthily Gross margin of 88% .
The technology is based on software algorithms not on Hardware c)
Resource Velocity: Patent & Approvals of FDA and USPTO before
no later than 2013, inventory turnover of two months Key Resources:
a) People: Sales Force, CTO, CMO, COO, CFO, CEO b) Technology:
BPS-Cardiac c) Channels: Direct Reps. Key Processes: a) Processes:
Product Design, product development, technology development, sales
& marketing, manufacturing, logistics b) Rules & Metrics::
Gross Margin 88%, supplier terms of 60 days credit, 60 days of
credit for customer c) Norms: Market size of 190K of intensive care
beds in USA, with a sales take rate of 1.3% Page | 5
6. 5. Enterprise Design & Implementation 5.1. Financial
Performance. In this section we will describe the financial
performance metrics required in order to ensure the operational
goals and make the project of the BPS Cardiac viable. The metrics
to be measured will be a) Revenues. b) Gross Margin. c) Net Income.
d) Free Cash-Flow. In terms of responsibility the metrics will be
assigned to different people in the organization Position
Objective(s) Rationale CEO Revenues: $156.6 MUSD Achive financials
objectives Net Income: $44.4 MUSD according to BOD Cash Flow: $24.8
MUSD expectations CFO Revenues$156.6 MUSD Maintain the financial
health Gross Margin: $139.4 MUSD of the company Net Income: $44.4
MUSD CashFlow: $24.8 MUSD Marketing & Sales Revenues: $156.6
MUSD Achieve Sales objectives Page | 6
7. The metrics will be measured quarter by quarter according to
plan Figure 2, the complete P&L can bee seen in Annex 1. Figure
2. 5.2. Market Performance. In terms of market performance the main
objective is how well all the commercial efforts performed by the
firm. The BPS Cardiac it is part of the Catheterization Market as
we can see in Figure 1. Figure 1. Page | 7
8. Sales & New Customers Goals per Quarter. 2010 2011 2012
2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sales - - - - - -
- - - - - - 12,831,585 12,870,585 12,909,585 New Customers - - - -
- - - - - - - - 257 257 258 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales
12,987,585 13,026,585 13,065,585 13,104,585 13,143,585 13,182,585
13,221,585 13,260,585 New Customers 260 261 261 262 263 264 264 265
The metric will be measured quarterly and the owner will be the
responsible for Marketing & Sales. 5.3. Marketing
Effectiveness. The marketing effectiveness will be measured in
terms of how our commercial efforts have good performance and
effectiveness in the market such as. The branding, sales cost, and
close rate. Sales Funnels Goals. 2010 2011 2012 2013 Sales Funnel
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Gross Contacts - - - -
- - - - - - - - 3,666 3,677 3,688 Effective Contacts - - - - - - -
- - - - - 2,566 2,574 2,582 Proposals - - - - - - - - - - - - 1,027
1,030 1,033 New Customers - - - - - - - - - - - - 257 257 258 Page
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9. 2014 2015 Sales Funnel Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gross
Contacts 3,711 3,722 3,733 3,744 3,755 3,766 3,778 3,789 Effective
Contacts 2,598 2,605 2,613 2,621 2,629 2,637 2,644 2,652 Proposals
1,039 1,042 1,045 1,048 1,051 1,055 1,058 1,061 New Customers 260
261 261 262 263 264 264 265 Gross Contacts: 100% Effective
Contacts: 70% Proposals: 28% Close Rate: 7% Branding Strategy: The
efforts will be focused in three targets a) Physicians/Nurses b)
Medical Institutional Purchasers. c) Scientific community focused
on medical devices. In order to reach Physicians, Nurses and
scientific communities and purchasers of hospitals the branding
efforts will be performed mainly through events, tradeshows,
conventions and magazines, such as: Media/Event Description
Participation MD Expo Austin MD Expo Austin is the most Frequency:
Yearly comprehensive conference show for the medical equipment
sales and Sponsor the event and have a booth service industry. The
event will in the expo. showcase latest trends of innovations
products and for related Responsible: Sales & Marketing. sector
under single roof at the Renaissance Austin Hotel. IMD Expo IMD
Expo, a dedicated medical Frequency Yearly devices design,
engineering, material selections. Where institutional Sponsor the
event and have a booth purchaser goes to see the newest in the
expo. technologies in Medical Devices. Responsible: Sales &
Marketing. American College Cardiologist Event where most
prestigious Frequency Yearly. Yearly Summit cardiologist share
their experiences in the cardiology field Sponsor the event and
have a booth in the expo. Responsible: Sales & Marketing. Page
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10. Each quarter the advertising will be performed and
measured, we will look to invest in media and events where the cost
per thousand impacts will be less that $30 USD in order to
optimized the investment, such as Google adwords, AOL, American
Heart Associations. The sales cost at the beginning of the plan
should be around 35% and going down up to 29%, this metric will be
measured every quarter. Additionally the close rate will be
monitored in order to achieve the sales goals a close rate of 7%
will be set for the sales force. 5.4. Investment in the Firms
Future. The on investment in the future, will be set in two types
of strategies a) R&D to look for new products and improvements
b) Sales Offices The R&D activities will be measured annually
with quarterly deliverables but due to the nature of the industry
the main deliverables will be measured every year according to
plan. Initiative Description Due Date/Investments for technology
development Data Communication Have data communications via Q4
2013/$300 KUSD Ethernet, serial port or Bluetooth CRM connection
Incorporate the wireless Q4 2014/$600 KUSD communication with the
sensor New Application devices Have data communications via Q4
2015/$1 MUSD (personal device, physician Ethernet, serial port or
Bluetooth office, etc) To CRM Improvements will be focused on
R&D in the following subjects. a) Sensors communications
(wireless). b) Device Connectivity to a Hospital intranet or CRM.
c) New applications devices such as personal device or physician
office device, etc. Sales Offices. The main market will be US,
therefore in order to cover main markets such as Every Office a)
Boston: Q1-2013 Page | 10
11. b) New York: Q1-2013 c) Miami: Q2-2013 d) Atlanta: Q2-2013
e) Houston: Q3:2013 f) Los Angeles:Q3:2013 Every Sales Office will
have in terms of headcount: 1) Sales Senior Manager: $120,0000 2)
Four Sales Rep: $80,000 The cost of very office & Office
Operations wil be $100K a year. 5.5. Creation of Wealth. In terms
of wealth creation, there are two critical points a) Net Income
generation b) Fund raising In terms of the project Net Income is
very critical, this metric will be measured quarterly and the main
responsible will be the CFO and the CEO. Additionally fund raising
will be a critical activity because $11 MUSD of cash is required to
succeed on the business as we can see in the chart. Metrics will be
established suc as: Page | 11
12. a) Due date to have the Investment and Technology
Prospectus: August 2010 b) Road show for VC Investors :
September/October 2010: Goal Make 50 presentations c) Due date for
raising capital before Dec 31st 2010. 5.6. Human Resource
Management. Corporate Culture: Will be based on innovation,
flexibility, urgency sense, integrity and customer satisfaction.
Advisory Boards: In order to have a great advisory board will be
recruited to be part of the project: Tecnolgico de Monterrey: a)
Ozmar Zavaleta, PhD: Dean of the Business School (undergraduate
programs) b) Jose Ramos, PhD candidate: Biodesign Technology
Transfer Office. c) Clelia Hernandez, MBA: SME Business Support
Program Director. d) Humberto Pena, PhD: Academic Entrepreneurship
Director. e) Raul Ruiz, PhD: Academic Marketing Director. f) Manuel
Farias, PhD candidate: Tec de Monterrey Biodesign Program Director.
Universidad de Guanajuato: Teodoro Cordova, PhD; Inventor of the
technology IDZ and RFID Company: Hector Gomez. US General Manager.
2009 most innovative company in Texas. Alestra: Jorge Aragon.
Strategic Planning Director. Alestra is an AT&T J.V. in Mexico.
The hiring plan is the following: (Sales Reps OutSource the rest of
the Staff Insource) Position Salary Starting Date CEO $250,000
Finance Sales & Marketing (HQ - CMO: $120,000 Q1: 2010 Chicago)
Sales Rep: $80,000 Q1: 2013 Sales Reo: $80,000 Q1: 2014 Sales Rep:
$80,000 Q1: 2014 Sales Rep: $80,000 Q1:2015 Manufacturing: $200,000
Q3: 2010 Sales Branch Offices a) Boston Every Sales Office will
have in Q1: 2013 b) New York terms of headcount: Q1:2013 Page |
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13. c) Miami Q2:2013 d) Atlanta 1) Sales Senior Manager:
Q2:2013 e) Houston $120,0000 Q3:2013 f) Los Angeles 2) Four Sales
Rep: $80,000 Q3:2013 Manufacturing COO: $200,000 Q3: 2010 Operation
Manager: $80,000 Q3:2012 Operation Manager: $80,000 Q3:2012
Manufacturing & Tecnology Q3:2012 Workers (4): $200,000
Regulatory CRO: $200,000 Q1:2010 Customer Service CSO: $200,000 Q3:
2010 Customer Service Manager: $80,000 Customer Service Manager:
$80,000 Workers (4): $200,000 5.7. Asset Management. In terms of
asset manager the metric and the focus will be in terms of
inventory turnover period (two months) and this metric will be
assigned to the CMO and the COO. Additionally proper admistration
of patents should be done with the USPTO, fee patments and
government notice should be managed for the following patents.
Initiative Description Filing Due Date Data Communication Have data
communications via Q1 2014 Ethernet, serial port or Bluetooth CRM
connection Incorporate the wireless Q1 2015 communication with the
sensor New Application devices Have data communications via Q1
2016/ (personal device, physician Ethernet, serial port or
Bluetooth office, etc) To CRM 6. Annex 1 -- (Financials) Annex 1 --
P&L (Financials) -- USD Page | 13