Glucose Monitoring Smart Watch
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The document explores the business model for the MT5016 glucose monitoring smartwatch, highlighting diabetes as a significant global health crisis and the need for effective glucose monitoring solutions. It discusses various glucose monitoring technologies, the market potential, customer segments, and strategic control methods to ensure profitability while addressing user needs for non-invasive monitoring. Key value propositions include convenience for diabetics, historical data for healthcare providers, and opportunities for insurance companies, all contributing to a continuous revenue model.
Glucose Monitoring Smart Watch
- 1. Business Model for Glucose Monitoring SmartWatch MT5016 Business Models for Hi-Tech Products ADRIAN HOA0027118M MO HAO A0039466W XIAO YUA0034303Y TAN JIAN ANA0098418R
- 2. Agenda Diabetes Evolution of Glucose Monitoring Market Analysis Technology Comparison Value Proposition Customers Selection Scope of Activities Value Capture Strategic Control Conclusion
- 3. Diabetes
- 4. Diabetes •Diabetes mellitus (DM) is a group of diseases characterized by high levels of blood sugar(glucose) resulting from defects in insulin production, insulin action, or both. Type 1 diabetes •Body does not produce insulin (insulin dependent) •Usually diagnosed in children or young adults •Approximately 10% of all diabetes cases Type 2 diabetes •Body does not produce enough insulin or does not use the insulin properly (insulin resistance) •Approximately 90% of all cases of diabetes Gestational diabetes •Insulin receptors do not function properly •Affect 2 –10% of females during pregnancy TYPE 1 DIABETES TYPE 2 DIABETES
- 5. Prevalence of Diabetes • Diabetes has evolved into one of the world’s leading healthcare crisis • Diabetes imposes a large economic burden on the individual, national healthcare system and economy Source: IDF Diabetes Atlas, 6th edition
- 6. Is There a Cure for Diabetes? •There is no cure for diabetes •Goals of diabetes treatment are to control blood glucose levels and prevent diabetes complications •Type 1 diabetics must take insulin to control diabetes •Type 2 diabetics may be able to control blood glucose by making lifestyle changes (diet adjustment & more exercises). However, in the long term they may need medications (and insulin)to help control your blood glucose levels •Require constant monitoring of glucose levels to introduce appropriate amount of insulin •Blood glucose levels in the body are very dynamic
- 8. Monitoring of Blood Glucose Monitor the effect of diabetes medications and managing insulin dosage. Judge how well in reaching overall treatment goals Understand how diet and exercise affect blood sugar levels Understand how other factors, such as illness or stress, affect blood sugar level. Identify blood sugar levels that are dangerously high or low
- 9. Finger-stick Testing •Most common method to monitor blood glucose •Procedure: A drop of blood is obtained with a lancet Blood sample placed on test strip Test strip inserted into glucometer to display glucose concentration •Frequency of glucose monitoring depends on how well diabetic’s blood glucose levels are controlled •Some diabetics may have to perform testing 4 or more times daily •Highly uncomfortable for diabetics, leading to neglect in monitoring of blood glucose
- 10. Evolution of Blood Glucose Monitor
- 11. Minimal Invasive Glucose Monitoring SubdermalImplant •Measures glucose in skin fluids •Sensor lifespan 72 hours Source: Google contact lens Source: MinimedParadigm RTS, Medtronic Inc Smart Contact Lens •Sensors and microchip embedded in contact lens •Measures glucose in tear fluid in the eye
- 12. Non-Invasive Glucose Monitoring (1) •Spectroscopic techniques, transdermal glucose extraction & other techniques GlucoTrack(Integrity Applications) •Ultrasound, electromagnetic and heat capacity •Spot measurements on earlobewith a ear clip •Sensor lifespan (ear clip) is6 months Source: Losoya-Leal A et al, State of the art and new perspectives in non-invasive glucose sensors Source: GlucoTrack, Integrity Application Inc
- 13. Non-Invasive Glucose Monitoring (2) Symphony (Echo Therapeutics) •Advanced micro-abrasion system •Enhances the flow of interstitial fluids and molecules across skin to transdermalsensor •Sensor lifespan 24 –48 hours Source: Echo Therapeutics, Inc.
- 14. Market Analysis
- 15. Voice of Market Needle-free(painless) blood glucose monitoring •Pricking finger is painful, while minimal invasive methods bring some discomfort to user Convenient, continuous and cost-effective •Easy to operate, short initialisation time & measuring time •Continuous glucose monitoring devices provide a more complete picture glucose situation •Traditional glucometers are cheap. Yet, they are not cost effective in long run as cost for test strip are very high. Replacement of minimal/non-invasive sensors are costly Reliable & high precision measurement •95% accuracy for majority of devices in the market (Approx. 90% for device using test strip) Smart wearable technology •Recordable data & analysis capabilities •Tailored healthcare advice
- 16. Continuous Glucose Monitoring Market Analysis •In 2020, continuous glucose monitoring market is expected to reach $568.5 million globally CAGR 14.8% •Highest growth in Asia Pacific •Key Drivers Rise in diabetes cases Convenience offered by CGM Increase in awareness of the benefits of CGM Source: Allied Market Research
- 18. Infra V’s Smartwatch •Continuous Glucose Monitoring (CGM) Non-invasive spectrometric process •Other biometric sensors Continuous Blood Pressure Monitoring Calories Burned and Current Burn Rate Heart Rate Monitor Oxygenation Level ECG Waveform •Use as stand alone orpair with smart phone •Alert based on customized plan and targets •Realtime data tracking and historical data storage •Emergency locator and Medic Alert
- 19. Company Infra V Echo Therapeutics Integrity Applications Medtronic DexCom Roche Model CGM Smarwatch Symphony GlucoTrack MinimedParadigm RTS SEVEN Plus ACCU-CHEK Aviva Plus Device Needle-free Yes Yes Yes No No No Sensor Lifespan 1 year * 24 -48 hours 6 months 72 hours 168 hours NA Accuracy 95 –98% * 97 -100% 96.2% 98.9% 97% 88.10% Initialisation time 15 min * Approx. 1 hours NA 2 hours 2 hours NA Frequency of Reading 20 sec * 1 min NA 5 min 5 min NA Glucose range (mg/dL) 40 –400 * 38 to 399 70 -500 40 -400 40 -400 20 -600 Calibration required Every 6 months * No data 6 month upon earclipreplacement Every 12 hours Every 12 hours Upon opening new box of test strips Measuring Time NA * NA 1 minute NA NA 5 seconds Size (mm) 200x 45 x 15 * 25 x 25 x 10 102 x 56 x 20 76 x 51 x 20 114 x 58 x 22 94 ×53 ×22 Weight (g) 100 g * 57 g 114 g (ex earclip 40g) 102 g(sensor 7 g) 100 g(sensor (6.7 g) Approx. 60 g (with battery) * Values based on assumptions
- 20. Technology Comparison Model (Company) Technology Description ACCU-CHEK Aviva Plus (Roche) Invasive(Traditional glucometer) Pierceskin to draw blood, then apply blood to a chemically active disposable 'test-strip' MinimedParadigm RTS (Medtronic) Minimal invasive Measurement of interstitial fluid (IF) by small sub-dermal implant. Smart contact lens (Google) Measurement of glucose levels directlyfrom tear fluid in the eye GlucoTrack (Integrity Applications) Non-invasive Combination of ultrasonic, electromagnetic & thermaltechnology to measure glucose from earlobe Symphony (Echo Therapeutics) Measure transdermal glucose levels via transdermal permeation system
- 22. Google Inc. Smart contact lens
- 24. High Low Comparison of Products on Various Dimensions
- 26. Value Proposition Diabetics Painless method of glucose monitoring Affordable and easy to operate device Healthy individuals Tracking glucose metabolism during intense activities
- 27. Value Proposition Hospitals Historical glycemic data can help doctors to provide tailored advice on lifestyle activities and medications Insurance companies A convenient way to get the glucose data for the customers of the insurance companies
- 29. Customer Selection Healthy Individual Hospitals Diabetics Insurance Companies
- 30. Customer Selection Diabetics Type 1 diabetics: extremely high blood sugar levels, > 3 times testing per day; Type 2 diabetics: high blood sugar levels, > 1 time testing per day; Gestational diabetics: high blood sugar fluctuation, regular monitoring. Healthy Individual Intense sport activities causing high blood sugar fluctuation; Regular monitoring is required.
- 31. Customer Selection Hospitals Medical device to monitor patient’s blood sugar level; Record the blood sugar level of pregnant women Insurance Companies Only sell the glucose information upon the agreement of customers; Discount price for customers willing to share the glucose information with the insurance company.
- 32. Customer Selection Diabetics > Health individual > Hospitals Insurance companies
- 34. Company Focus Out-sourcing •Raw Material Supplier •Component manufacturer •R&D •Design & Engineering •Assembly & Testing •Sterilisation & Packaging •Marketing •Distribution Customers •Diabetics •healthy individuals •Hospitals •Insurance Company
- 35. Straps Misc. Devices (screw, buttons, etc) Key Components Battery Sensor Housing LCD Screen Microprocessor Motherboard Straps
- 36. Sensors are designed and engineered by infra V; Appearance of the smartwatch (housing, straps) are also designed by infra V; Motherboard, Microprocessor, LCD screen, Battery are manufactured outside the company; Components are then assembled and tested under the surveillance of the company. Putting them all together
- 37. New Services can be derived with the use of the Smartwatch to open up new opportunities Continuous monitoring of glucose level and health tips provided; Remote monitoring of glucose level; Real time insulin dosage adjustment; Possible alliance with insurance companies; Valuable data collection of the use of research. Healthcare Informatics
- 38. InHouse Out Source LCDscreen, Battery Microprocessor, motherboard Sensor Appearance (housing, straps) Misc. Devices HealthcareInformatics In-house or Open Innovation
- 39. Value Capture
- 40. Value Capture Money Direct sale of devices to diabetics, healthy individuals and individuals Subscription of apps for advanced functions of the device, e.g. professional advice Sale of historical data to the insurance companies Source of Revenue At the early stage, revenue mostly comes from the sales of product; In the long term, revenue mostly come from the add-on services and the insurance companies; Aggressive pricing strategy; Discount to be provided to users;
- 41. Value Capture Data Historical glycemic data collected from the diabetics and healthy individuals, owned by Infra-V Generate revenue by providing information on individuals to the insurance companies Provide the information to the researchers and doctors for free
- 42. Value Network Diabetics product money Hospital money service Healthy Individual product money Subscription Subscription money product Apps Apps Insurance Company Historical Data money money Insurance Insurance money Company
- 43. Value Network Diabetics Healthy Individual Company Research institutions Historical Data
- 45. •Leveraging on both Intellectual Property protection and complementary assets to endure continued profitability for the company Strategic Control Intellectual Property Complementary Assets Sustaining Profitability
- 46. Strategic Control: Intellectual Property Patent -Infra V has to patent their design (non-invasive glucose measurement using low-cost wavelength specific transmitters and receptors ) with USPTO Tacit Knowledge -Complete knowledge of how non-invasive glucose measurement technology integrates with hardware (PCBA designs, ICs selection, etc) and firmware into smartwatch maintained in tacit form -Tacit knowledge to reside in key R&D personnel (CTO, R&D manager, key R&D engineers with non-disclosure agreement)
- 47. Strategic Control: Intellectual Property Tacit Knowledge (continued) -Developmental work on further improvements to core technology be kept in tacit knowledge till technology is patented Segregation of Duties -Maintain strict segregation of duties (engineers from different areas to develop niche knowledge in respective areas) -Minimum cross functional knowledge so complete knowledge of technology and how it integrates with smartwatch is held in tacit form with key personnel
- 48. Strategic Control: Intellectual Property Documentation Control -Engineering drawings, work instructions, engineering change documents, etc, to be made company confidential and electronically controlled
- 49. Strategic Control: Complementary Assets Bundled package -Basic cost of smartwatch made affordable to targeted customers (creating a pool of users) -Smartwatch bundled with subscribed apps draw users attracted to value added services (professional advice, historical glucose measurements, healthcare analysis, etc) Ecosystem -Ecosystem of users, doctors, researchers, pharmaceutical and insurance companies -User data attracts pharmaceutical companies for drug development opportunities -Insurances companies uses data for creation of targeted insurance policies for smartwatch
- 50. Strategic Control: Complementary Assets Ecosystem (continued) -Doctors uses data to provide customized healthcare advice which in turn attracts users -User data provides opportunities to researchers for medical research and development Distribution channel -Smartwatch to be made easily available through participating hospitalsand clinics specializing in diabetes -Marketed as off-the-shelf item with major wellness stores (brick / mortar and online) frequented by targeted customers. Reason is to create a strong brand awareness.
- 51. Strategic Control: Complementary Assets Reputation -Brand image of product user friendliness with robust online platform and subscribed apps providing desired healthcare applications -User recognition of strong after sales product support Partnership -Establish tie ups with reputational pharmaceutical companies such Eli Lilly in the area of insulin administer -Partnership provides product complement and assures users that it has industrial exposure and support from partners
- 52. Strategic Control: Complementary Assets Marketing -Advertise in health publications popular with targeted users (Men’s Health, Women’s Health, WebMD, etc) -Participation as sponsored user on popular health forums where Infra V can provide product advice and referrals to participating hospitals and clinics to forumers
- 53. Conclusion
- 54. Conclusion •Diabetes is a world wide phenomenon that needs to be addressed and tracked closely by patients on a daily basis •Current available methods of glucose measuring are a bane to diabetics •Infra V’s CGM Smartwatch answers the need of diabetes patients; non-invasive, accurate, cost effective and convenient with additional analytical capabilities available as a service. •Value capture of Infra V’s CGM Smartwatch revolves around sales of the smartwatch, subscription of apps / online services and sale of user data to insurance companies. •Sustaining profitability in the longer run involves protecting the core technology of the smartwatch as well as complementary assets.
- 55. Thank You