RESEARCH AND CUSTOMER DEVELOPMENT

Sheryl Frame Director EDICT International Consultants Pty Limited

Case Manager: Commercialisation Australia

My background► Studied Physiotherapy at WITS ,

South Africa► >30 years in IT industry, 18 with

IBM► EDICT founded in 1991

EDI-Care 1991 – 1992 Promed 1992 - 2000 Express Rx 2003 - 2005 Medinexus 2006 - 2010 Clayko 2007 – 2011 CA 2011 - present

Product or idea?WHAT

“Light bulb” moment  Real questions:

Can it be made/ built? Can it be translated into a viable business

To answer that, you need to establish: That it fills a market need That it lends itself to commercialisation There are no legislative barriers that can’t be

addressed Costs of getting to market

Other Key Questions► the business model

how do you plan to derive your revenue lines?

► the delivery model how do you plan to physically

deliver your product, process or service to customers?

► At what stage do you form a company

Understanding the environmentMarket opportunity - WHO

► What customer problem have you solved ?

► Define your target market Who are your intended customers?

► Estimate the size and value of your target market How will you derive revenue from your product?

► Define your intellectual property any protection mechanisms employed (e.g. patent, trademark etc)

Understanding the environmentValue Proposition - WHY

► Customer needs, desires and drivers (what motivates them to buy?) the value of the new product, process or service from the

customer’s perspective the competitive advantage (how your product, process or

service is superior to currently available offerings, and why it is preferable to the status quo?)

provide independently verifiable evidence of why customers want your product, process or service

what evidence do you have to confirm the functionality and/or technical viability of your product, process or service?

Understanding the environmentExecution plan - WHEN

► overall objectives and tactics to achieve these objectives - the “how”► the path to market (e.g. direct sales, distribution channels,

franchising, etc.)► the key structural or market challenges to be resolved (e.g.

government regulation, market inertia, timing imperatives, manufacturing capability/capacity, etc.)

► the core elements of your operational plan (e.g. human resources, infrastructure establishment, marketing and communications, revenue/cost and profit projections over the next 12 to 36 months, etc.)

► how will you manage any intellectual property necessary for successful commercialisation (e.g. future protection strategies, freedom to operate, etc.)

Understanding the environmentResearch & Validation

► Know the environment Understand the problems and

the competition

► Talk to all the players

► Engage with potential customers

Understanding the environmentThe People

► Management team

► Staff (labour and contractors)

► Consultants and Advisors

Financing your plan► How much money do you

need to get to what point? identify immediate and

anticipated future capital requirements to ultimately exploit the market opportunity

Promed Practice Management Software Solutions for Radiologists

www.promed.co.za

► Basic billing system Distributed LAN’s at each point of patient contact Centralised accounting back-end Business model –

outright sale (OTC), plus annual maintenance and support charges

Promed – Our Solution► Value Proposition:

The ability to establish patients eligibility for intended procedures up front, get immediate authorisation where required, and be able to secure immediate payment, at the same time providing a “one stop shop” solution for all Practice Management Solutions

► Suppliers: Health Funds Hardware Vendors (IBM and Acer) Allied services - Voice recognition and dictation services

Promed – The outcome► Captured lion’s share of

market in 3 years

► Trade sale to Dimension Data after 5 years

► Terms of sale: Based on Profit over 12

month period

Express RXRemote Dispensing System

► Value Proposition: The ability to dispense medicines by a pharmacist in

remote and rural areas where these services are not immediately available

► Customers: General Public Pharmacists Pharmacy Groups

► Suppliers: Pharmaceutical companies

Express Rx – Schematic

Express Rx – product challenges

► Original pack size► Variety of drugs► Labels► Temperature► Liquids► Vandalism► Restocking

Express Rx – Render to Reality

Express Rx – Views of BluePoint machine

Express Rx – Render to Reality

Express Rx : Problems encountered

► Medicines Board► Original packaging size variances► Repeat script printing► Classification of the machine

Is it a pharmacy?

► Final outcome: In use in UK and Germany Patent infringement case in progress in Canada

MedinexusDelivering x-ray images to referring doctors

► Customers: Radiology Practices Referring doctors – specialists and GP’s

► Value Proposition: Radiologists could offer a superior service Referrers receive both image and report electronically Patient isn’t forced to wait

► Business Model SaaS – transaction / volume based

Medinexus (continued)

► Problems encountered: Critical Mass Integration with existing systems Transaction based businesses take 3 – 5 years to become

profitable

► Ultimate outcome: Alliance with HealthLink

Lessons Learnt

► Enthusiasm and tenacity are fundamental requirements of success

► The ultimate business model may differ from what is originally envisaged

► A smaller % is far more lucrative than 100% of nothing

► Follow your dream – believe in your self and your product!