Post on 07-May-2015
description
Business Model for Instant Bioscan“Real Time Microbial Detector”
Cheng Kah Heng A0082075HShahnawaz Pukkeyil Shamsuddin A0098486HHo Wai Chi, Gary A0082062NTan Tze Chung Christopher A0046244LJason Fan Yang A0098546M
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Presentation Outline
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Introduction Company Profile Industry Background
New Technology
Working Principle
Value Proposition
Market Segment
Customer Classification
Customer Selection
Value CaptureScope of Activities
Strategic Control
Future Activities Customers
Conclusion
Company Profile
Founded in 2011
CEO cum Founder Steward Manzer
Private held with 50 employees
Located in Tucson, Arizona, USA.
Specialized in Water Monitoring System
Primarily operates in Navigational, Measuring, Electro-
medical, and Control Instruments Manufacturing Industry.
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BackgroundNeed for Real Time Monitoring System
Estimated number of waterborne illnesses in the U.S. is 19.5 M/yr
4.1% of global diseases are accounted by waterborne parasites.
1.8 M human deaths annually.
http://www.who.int/water_sanitation_health/diseases/burden/en/http://www.epa.gov/nheerl/articles/2006/waterborne_disease/waterborne_outbreaks.pdfOUTBREAKS OF WATERBORNE DISEASES, European Environment and Health Information system
Common causative agents
Bacteria 44.9%
Viral agents 37.5%
Protozoa 4.7%
Chemical contamination 0.2%
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BackgroundNeed for Real Time Monitoring System
http://www.epa.gov/nheerl/articles/2006/waterborne_disease/waterborne_outbreaks.pdf
2-7 days
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Lack of real time feedback for microbial presence in water treatment process
Water Treatment Process
Sensor
IN OUT
Fee
db
ack-
+
Background
Collecting water sample
Water Treatment Plant Control Points Recreational Facilities
Conventional Technique – Water Sampling
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Collecting water sample
Transportingto Lab
Central Laboratory Water Sample
BackgroundConventional Technique – Sample Transportation
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Collecting water sample
Transportingto Lab
Preparingwater sample
Filtration Centrifuge Chemical Staining Culturing Bacteria
BackgroundConventional Technique - Sample Preparation
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Collecting water sample
Transportingto Lab
Preparingwater sample
Inspecting undermicroscope
Cultured Bacteria Observe under microscope Counting Bacteria
BackgroundConventional Technique – Sample Observation
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Collecting water sample
Transportingto Lab
Preparingwater sample
Inspecting undermicroscope
High Cost Long processing period Human Error Low Accuracy
BackgroundConventional Technique
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Instant Bioscan - ProductsInstant Bioscan – Real Time Monitoring Products
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RMS-UM
Portable VersionRMS-ON90
Onsite Version
Optical Technology Instantaneous result Inert vs. Biologic
Instant Bioscan - ProductsInstant Bioscan – Working Principle
Measures Universal “Bio-markers” (NADH and Riboflavin) in Bacteria and Fungi.
Value Proposition
Instant microbial detection - Within seconds
Low cost Testing Cost-No Transportation-No Chemical-No Trained technician-Reduce inventory-Decreased capital cost
Reduce human error-Reduce Loss of sample- Increase accuracy
Remote monitoring-Network connectivity-Automation-Low maintenance
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RMS-ON90RMS-UM
CompetitionInstant Bioscan vs. other microbial detectors
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Remote monitoring
SamplePreparation
Chemical Free Capital Cost Identification of Microbes
Instant Bioscan YES NO YES LOW NO
PCR/DNA/Genome NO YES NO
HIGH -MODERATE
YES
Flow Cytometry NO YES NO HIGH YES
ATPbioLuminescence NO YES NO LOW YES
Customer SelectionMarket Segment & Customer Classification
Food and
Beverage
Plants
Testing
Labs
Health &
Beauty
Plants
Pharmaceutic
al PlantHomeland
Security
Water
Treatment
Plants
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CustomerWith Most
Money Base(High/Low Demand)
CustomerNeed Base
(High Demand)
CustomerWant Base(Low Demand)
Customer Selection
Water Treatment Plant Pharmaceutical Plant
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Customer SelectionDemand in Water Treatment Industry
Legislation from European Union and US EPA Directives
•Water Framework Directive •Environmental Liability Directive•The Registration, Evaluation, Authorization and Restriction of Chemical Substances Directive (REACH).
Increasing Cost of water monitoring
Increasing trend in adopting online monitoring•78.9% of the utilities around the globe use some form of online monitoring tool
http://www.ewa-online.eu/tl_files/_media/content/documents_pdf/Publications/E-WAter/documents/2_E-Water_Namour_et_al_2012_corr.pdfhttp://water.epa.gov/infrastructure/watersecurity/lawsregs/initiative.cfmS m a r t W a t e r N e t w o r k s F o r u m, The Value of Online Water Network Monitoring, (2012).
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Customer SelectionHow can IBioScan reduce cost in Water Treatment Industry ?
Activity Cost per day
Sample Collection & Transportation SGD 400
Sample Preparations, Chemicals Reagents SGD 900
Trained Technician SGD 66
Other equipments and consumable SGD 200
SGD 1566
•Cost calculation of microbial monitoring in water industry.•The cost is based on detection of 3 specific type of microbial.
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Cost for year if tests are conducted 2 times per day SGD 1 million
Customer SelectionHow can IBioScan reduce cost in Water Treatment Industry ?
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Customer SelectionHow can IBioScan reduce cost in Water Treatment Industry ?
Unit Cost SGD 60,000
Cost of 3 unit per Plant SGD 180,000
Recurring cost per year SGD 130,000
Pay back time 6 months
Yearly savings SGD 900,000
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Customer SelectionDemand in Pharmaceutical Manufacturing Plant
Initiative from FDA
•Process Analytical Technology initiative (PAT)• Pharmaceutical cGMPs for the 21st Century initiative
Increasing Cost of microbial monitoringReduction in manufacturing time
Draft Guidance for Industry, PAT – A Framework for Innovative Pharmaceutical Manufacturing and Quality Assurance, FDA (2003).Draft Guidance for Industry, Formal Dispute Resolution: Scientific and Technical Issues Related to Pharmaceutical CGMP, FDA (2003)
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Customer SelectionHow can IBioScan reduce cost in Pharmaceutical Manufacturing Plant ?
Regular Monitoring USD 3.2 million
Est. saving from Real time monitoring USD 1.8 million
6 units per plant USD 300000
Pay back time 3 months22
Trail run to evaluate
•Revenue from rent of machine•Recurring revenue from
•Consumable •Service
•Revenue from sale of machine•Recurring revenue from
•Consumable •Service
Value Capture
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Direct Sales
Lease
Trial
Future Value Capture
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Direct Sales
Lease
Trial
Service
License
•Revenue from service provided•“Pay as you use” model
•Revenue from Licensing fees
Service
License
Current Scope of ActivitiesVertically Integrated
Technology Improvement
Product Development
Manufacturing/Assembly
MarketingAnd Sales
LocalDistribution
After SalesServices
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Future Scope of ActivitiesVertical Disintegration
Technology Improvement
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Product Development
Manufacturing / Assembly
MarketingAnd Sales
LocalDistribution
After SalesServices
Customer
Out-Source
Strategic Control
US and international patents • 1 Patent in Optical Technology• 1 pending critical design patent• Obtained Freedom to Operate
(FTO) position from counsel
Future Alliances• Currently Serving 3 of the top
25 pharmaceutical companies:Baxter, Novartis, Pfizer
USEPA Compliant• Mohawk Valley Water
Authority (US EPA approved facility)
• ~ 1 year for approval
FDA Compliant• 1-3 years for approval
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Future Market Segment
CU
STO
MER
NEE
DS
CUSTOMER TYPES
AR
TIC
ULA
TED
UN
AR
TIC
ULA
TED
SER
VED
UN
SER
VED
Rural Areas
Recreational Facility
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Food & Beverage
Future Potential Markets:
Rural Areas
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Source: World Health Organization
Future Market SegmentRural Areas - Global Sanitation Coverage
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Source: World Health Organization
Future Market SegmentRural Areas - Global Drinking Water Coverage
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No more open defecation.
Safe water in homes.
Sustainable water sanitation and hygiene
Inequalities in access eliminated.
Source: World Health Organization 32
WHO Post 2015 Target
1) Laboratory testing
2) Field Test Kits
Field Test Kits
Manual
Non-Continuous monitoring ~24 hours per test
Shelf life 6 months
Estimate cost per year ( testing 3 times daily)
US$6000
Trained Technician (per mth) US$2000
Expenditure per year US$30,000
Future Market SegmentRural Areas – Current method of monitoring
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Future Market SegmentRural Areas – Utilizing IBioScan for field testing
IBioScan Device
Automatic
Continuous monitoring 2-5 mins
Cost of device US$5000
Estimate cost per year for consumables
US$12000
Savings (per year) US$18000
With smaller, portable battery operated model of RMS-W specially developed for the rural areas:
• Cost of device can be reduced by 10 times to $5000
• Savings in capital cost ( no need for laboratory)
Attractive for WHO to implement in rural areas as it offers savings in assessment time , cost per test. And it offers a more sustainable form
of monitoring. 34
Future Potential Markets:
Food & Beverage
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36Source: Sonia Francisco & Anand Gnanamoorthy, Frost & Sullivan
Future Market SegmentFood & Beverage
37Source: MarketsandMarkets
Future Market SegmentFood & Beverage
Future Market SegmentDemand in F & B Manufacturing Plant
• Initiative from FDA
FDA Food & Beverages Rules and Regulations
• Increasing Cost of microbial monitoring• Reduction in manufacturing time• Reduction in excursion materials being shipped out
Draft Guidance for Industry, PAT – A Framework for Innovative Pharmaceutical Manufacturing and Quality Assurance, FDA (2003).Draft Guidance for Industry, Formal Dispute Resolution: Scientific and Technical Issues Related to Pharmaceutical CGMP, FDA (2003)
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Future Market SegmentHow can IBioScan reduce cost in F & B Manufacturing Plant ?
Soft drink bottling or manufacturing involves five major processes, each with its own safety issues that must be evaluated and controlled:
1. Treating water2. Compounding ingredients3. Carbonating product4. Filling product5. Packaging.
Source: http://www.solarnavigator.net/solar_cola/soft_drink_canning_process.htm
Regular Monitoring USD 3.2million
Est. saving from Real time monitoring
USD 1.8 million
6 units per plant USD 300000
Pay back time 3 months
Future Potential Markets:
Recreational Parks
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Future Market SegmentRecreational Parks
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• Public Swimming Pools– 24 Swimming Pools1 in Singapore
• Water Theme Park– Wild Wild Wet, Sentosa Watercove2 etc
Future Market SegmentRecreational Parks
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• Chemical1 (trichloramine and cyanogenchloride)/Bacterium2 generated by human usage through pee
• Rainfall affecting water quality of pool
• Debris from around the yard, such as leaves, flowers, grass and dust.
• Dead/Decomposed wildlife – for example, lizards or insects that occasionally drown in your pool.
1http://arstechnica.com/science/2014/03/study-finds-pee-in-pool-water-yields-toxic-byproduct/2http://www.medicaldaily.com/7-disgusting-facts-about-dirty-public-swimming-pools-246965
Future Market SegmentRecreational Parks– Current method of monitoring
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• Typically through Litmus strip method
• Test conducted Monthly1
• Non Real-time
• No test done on water chemical and bacterium (E. Coli)
• A Health Hazard to Human Health
Future Market SegmentRecreational Parks
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•Lower Cost•Assurance to Public Pool user on Water quality•Less Transmission of Infectious diseases
Key Consideration: Swimming Pool TestingConventional versus Instant BioScan
SWOT Analysing
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Conclusion
Strength
•Instant and accurate detection•Low cost•Remote monitoring
Weakness
• No microbial species identification• Limited standard recognition
Opportunities
•High potential performance•Huge potential market need
Threats
•Product detection reliability•Competition of similar new products•Public acceptance growth
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