Blog Post 10

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Visual Business Model: Business canvas visual.pptx

 

Some specificities to the Business Model:

  • For Customer Relationships, we have to ensure to create trust with the entities buying the devices (WHO, Hospitals etc…) and the end consumers of the product. We have to keep in contact with entities through the whole value chain and ensure that they have sufficient devices and that the newborns are consistently being tested.
  • Additionally, we should be developing bonds with NGOs like UNICEF and UKAID as we are selling our device as a huge markup and we will have to overcome development and implementation costs in order to sustain our venture
  • We must sell the same product with the same service, but must keep variation in quality and in service. To design a delivery system, we need to constantly “innovate”
  • Once the device is developed, we also may have additional fixed costs of paying employees to be trained and delivering the devices as well as paying an outsourcing fee to a manufacturing company.

 

End-End Solution:

  1. We have an optimized test strip assembly compatible with large scale manufacturing practices.
    1. In terms of any changes or development, our goal is to reduce the costs of both manufacturing and selling of this product. Our aim is to not accumulate a large profit, so we hope the low cost of production will allow for a low purchasing price as well. Ideally, our price is set equal to the marginal cost of producing a single device to ensure we break even.
  2. We have a functioning immunoassay lateral flow device, where a single drop of blood will allow the device to be capable of identifying individuals with normal blood, sickle cell disease and people who carry the trait for sickle cell disease.
    1. Because the test strip is derived from a similar nature as current pregnancy tests, causing our team to translate this technology to our needs, this must require an intellectual property to patent the design. Our test strip is different than a standard straight test strip and the current design advances its performance: no dilution step and no hook effect. The patent will prevent others from using our invention for commercial purposes for up to 20 years. We are the deciding factor of who will be allowed to produce, sell or import the invention.
  3. Transporting/expanding the device from the U.S to Sierra Leone.
    1. The device will be approved by the U.S. Food and Drug Administration (FDA) through a 510k pathway to demonstrate legal marketing. Although the device will not be focused on being used in the U.S, FDA approval will make it much easier to receive an ethics board approval from the Ministry of Health and Sanitation (Pharmacy Board) together with an established service level agreement in order to implement the device in other LMICs, like Sierra Leone.
  4. Once our devices are approved and can be implemented, they will be sold to large organizations such as the WHO, FHCI, UNICEF and UKAID who have widely known distribution practices. Government health sectors, healthcare services, including hospitals, clinics and medical professionals within Sierra Leone will be more inclined to receive the device to utilize on their patients.
  5. Then, with our user communities, we must build ethical and highly patient-centric management with a system that supports it. We must instill faith, create ownership in the Sierra Leonean community to the problem and engage with them as a partner.
    1. Consultations
    2. Education
    3. Training for residents/fellows, technicians and healthcare workers, while prioritizing those who will become future staff

2.Ten practical lessons from the business (revenue) models of ventures we reviewed today (or others you research) as they relate to your venture.

  • A value proposition should be about solving or fulfilling a specific need. It should be about creating value for the people.
  • People don’t care about technology. They want to know exactly how buying your product will be of benefit to their day to day lives directly.
  • One must build strong customer relations to sustain a successful venture. This can be accomplished by using customer feedback in order to further act upon your value proposition
  • A new invention is not a requirement for social entrepreneurship. Any methods of creating added value for a group of people can be the basis of a venture.
  • Ventures can be sustainable without insane markup pricing. A small, but sustainable profit after making up an initial investment will allow our venture to be sustained in Sierra Leone.
  • For social entrepreneurship ventures, social capital is very valuable and it can make the difference between your business succeeding or failing.
  • Building and maintaining that strong relationship with customers is key to getting the trust a business needs.
  • The pricing model of the product you are selling is very important as it addresses who can afford it and thereby detects your possible market. Offering Flexible payments and pay-as-you-go options can make your business as successful as well.
  • Thinking about how everything will be paid for is very useful to evaluate the likelihood/validity of the business model.
  • A very good business model must be very logical and realistic. From looking and examining it, it needs to be clear of how everything from key resources to revenue streams allows for the customer segments to get the value that you are proposing without a hiccup. It needs to flow and link up everything as to how they will all come together to create the value that you intend it to in the value proposition

 

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