Team:Nick JenningsAyesha MascarenhasMark Sena

Total # of Interviews: 101

Delivering research-grade movement analysis to health professionals and their patients

Mark Sena

- PhD, Bioengineering, UC Berkeley/ UCSF- BS, Bioengineering- Deep knowledge of knee biomechanics- Invented core technology and established proof of concept

Ayesha Mascarenhas

- MBA, UC Berkeley- MS, Computer Science- Product management and business development experience

Nick Jennings

- MBA, UC Berkeley- BS, Chemical Engineering- Finance, marketing and business development experience

The Team

?

Business model canvas 1 of 4

Clinical Professionals• Physical therapists• Orthopedists/

Qualified medical evaluators

Fitness Professionals• Fitness gyms• Athletic trainers• Personal fitness

trainers

End users(2nd level target)• Patients• Athletes• Fitness clients

• Building the sales, support and distribution channels

• Validation, management, and analysis of application data

• Tech R&D

For healthcare/fitness professionals who need

to monitor their patient’s/client’s musculoskeletal

health/fitness, we offer a computer application for the Microsoft Kinect (and

similar devices) that… reliably assesses a

person’s joint function.…Unlike visual or

manual assessment methods, our application is quantitative, objective, and accessible in a wide

range of settings.

• Research centers (UCSF / UC Berkeley)

• Depth camera vendors (e.g. Microsoft, Primesense)

• Wearables vendor

• Hospitals and patient networks (e.g. Kaiser)

• Sports performance /fitness organizations (e.g. Nike)

• Hardware and wearables• Software development• Software hosting/maintenance• Sales and Support Consultants• Validation and user testing (UCSF)• Marketing• FDA approval,

• Sale/lease of software/computer package• Usage fee per patient/client (with possible

reimbursement from insurance)• For professionals, monthly subscription for product

and support• For end users, freemium subscription for data/user

network

• Sales team to identify and reach customers

• All-in-one: PC/camera/software

• Downloadable: Kinect web-store

• Microsoft: Xbox or Kinect-for-Windows

• IP• Biomech expertise• Software dev• Hardware

/wearables• Sales and Biz Dev• Secure data cloud• Finance to fund

FDA approval

1

3

4 2• Sales and post sales

support team• Co-development

with professionals• End user network• Patient-provider-

payer health triangle

5

6

7

89

ClinicalNon-clinical

Legend:

Business model canvas 1 of 4

Clinical Professionals• Physical therapists• Orthopedists/

Qualified medical evaluators

Fitness Professionals• Fitness gyms• Athletic trainers• Personal fitness

trainers

End users(2nd level target)• Patients• Athletes• Fitness clients

• Building the sales, support and distribution channels

• Validation, management, and analysis of application data

• Tech R&D

For healthcare/fitness professionals who need

to monitor their patient’s/client’s musculoskeletal

health/fitness, we offer a computer application for the Microsoft Kinect (and

similar devices) that… reliably assesses a

person’s joint function.…Unlike visual or

manual assessment methods, our application is quantitative, objective, and accessible in a wide

range of settings.

• Research centers (UCSF / UC Berkeley)

• Depth camera vendors (e.g. Microsoft, Primesense)

• Wearables vendor

• Hospitals and patient networks (e.g. Kaiser)

• Sports performance /fitness organizations (e.g. Nike)

• Hardware and wearables• Software development• Software hosting/maintenance• Sales and Support Consultants• Validation and user testing (UCSF)• Marketing• FDA approval,

• Sale/lease of software/computer package• Usage fee per patient/client (with possible

reimbursement from insurance)• For professionals, monthly subscription for product

and support• For end users, freemium subscription for data/user

network

• Sales team to identify and reach customers

• All-in-one: PC/camera/software

• Downloadable: Kinect web-store

• Microsoft: Xbox or Kinect-for-Windows

• IP• Biomech expertise• Software dev• Hardware

/wearables• Sales and Biz Dev• Secure data cloud• Finance to fund

FDA approval

1

3

4 2• Sales and post sales

support team• Co-development

with professionals• End user network• Patient-provider-

payer health triangle

5

6

7

89

ClinicalNon-clinical

Legend:

Test in

ProgressTest in

Progress

Testing:Product Market Fit

We talked to…

Fitness Professionals Clinical Professionals

Consumers (Athletes/ Patients)

We learnt…• Mostly concerned with “big

picture” – weight loss, strength training, endurance…

Fitness

• Mostly concerned with “big picture” – weight loss, strength training, endurance…

Fitness

We learnt…

• PTs do care about accuracy…but in different ways…actually 2 segments• Insurance-dependent PT clinics• Self-pay PT clinics

Clinical

Insurance-Dependent Clinics

Self-Pay Clinics

Name

Size 12 Physical Therapists 6 Physical Therapists

Jobs • See patients at home or in-clinic

• Initial and follow-up evaluations

• Spend 30 mins 1:1 w/ patient (aids)

• See patients at home or in-clinic

• Initial and follow-up evaluations

• Spend 1 hour session 1:1 w/ patient

Patient needs • Functional issue improvement • Functional issue improvement

• Sport improvement (e.g. Bike fit)

How do patients pay

• Co-pay + Insurance reimbursement

• Pay full cost upfront, and get reimbursed later (out of network) OR fully out of pocket

Session Price • Initial $150; Follow-up $75 • $165 for 1 hr session

Channels to discover new tools

• Conferences

• Journals

• Continuing Medical Education

• Conferences

• Journals

• Direct Sales

Physical Therapy Clinic Profiles

Insurance-Dependent Clinic Workflow

Physical Therapy Initial evaluation • Collect patient history• Evaluate diagnosed issue• Collect initial measurements (ROM, flexibility)• Formulate treatment plan (goals, # of visits, duration)• Submit Insurance billing information• If Medicare, must satisfy new G-code requirements

Physical Therapy follow-up evaluation • 1:1 exercise evaluation with patient • Collect measurements• SOAP note documentation• Submit Insurance billing information

Pain: Spending way too much time filing/ re-filing

reports for reimbursement

Self-Pay Clinic Workflow

Physical Therapy Initial evaluation • Collect patient history• Evaluate diagnosed issue• Use Video Analysis Tool to collect measurements

• Apply markers• Record motion (running, biking)• Post process and analyze video

• Formulate treatment plan (goals, # of visits, duration)

Physical Therapy follow-up evaluation • 1:1 exercise time with patient • Video Analysis measurement• SOAP note documentation

Pain: Spending too much time doing post processing

of video analysis

• Mostly concerned with “big picture” – weight loss, strength training, endurance…

Fitness

We learnt…

• PTs do care about accuracy…but in different ways…actually 2 segments• Insurance-dependent PT clinics• Self-pay PT clinics

Clinical

• Frequent visits are burdensome• Often quit before full program is

completed• At home exercises often don’t get

done

Consumers

(Athletes/Patients)

Regulatory & Insurance Related Findings

In Clinic Product:

No FDA Approval Needed

97001 Physical Therapy Evaluation97002 Physical Therapy Re-Evaluation

97535Self-care/home management training (ie. ADL's, safety procedures, instructions)

97116 Gait training

97750 Physical performance test or measurement (*not evaluation)

Existing CPT Codes:

Class Description

1 Low risk – simpler in design 510k exempt

2 Moderate risk – typically non-invasive Subject to 510k submission, cleared by FDA

3 High risk – used to support life or prevent harmful medical conditions Subject to full premarket approval by FDA

~ 2 years to FDA 510kclearance

Consumer/ In Home Product:

• Frequent visits are burdensome• Often quit before full care

complete• At home exercises often don’t get

done

Consumers

(Athletes/Patients)

We learnt…• Jobs: big picture – mostly

weight loss, strength training, endurance

Fitness

• Jobs: PTs do care about accuracy…but in different ways…actually 2 segments• Insurance-dependent PT clinics• Self-pay PT clinics

Clinical

(…eventually)

Accessibility

Accuracy

motioncapturesystem

PTevaluation

fitnessassessment

Nike+KinectTraining

Lumoback

ReflexionHealth

WelfareDenmark

Jintronix

Dartfish

mobileclinic / gymlaboratory home-download

valid

ated

obje

ctiv

esu

bjec

tive

mot

ivat

ing

Z Z

Long Term – Home PT

Near Term – In Clinic

Testing:How to Get, Keep, Grow

CustomersRevenues and Costs

Business model canvas 2 of 4

Test in

Progress

Test in

Progress

Test in

Progress Test in

Progress

Business model canvas 2 of 4

We talked to…

Medical Sales Outsourcing Companies

PT Conference Organizers PT Networks and Journals

Other Medical Software Companies

Direct Sales are crucial…but expensiveDirect Sales Distributor/

PartnerKinect App Store

Details • Hire sales reps• Reps visit clinics• Demo Product and

educate customers

• Hire sales team outsourcing firm

• Pay them a % of sales

• They build our pipeline of leads and also close some sales

• Clinics download app from Kinect App Store

Cost $100K+ per sales rep

+ travel costs

$100K Fixed retainer + margin (15%)

TBD – Kinect for Windows App store not launched yet.

Why Direct Sales?

It’s what our target segment is used to

Other players are using it

Build awareness and familiarity with the whole package

PT Publication Ads

Major PT Conferences and Communities

Follow-up with high potential leads• In Clinic visit• Presentation• Proposal• 1-week free trial

• “Contact me” request• Calls/E-mail requests for info

Low cost ‘Get’ activities across a tightly knit community

• PT IN Motion magazine• PT Journal

Direct Sales Team

• APTA Conference• California PTA• Florida PTA

• Demos• Webinars• Follow-up visits/calls scheduled• Calls/ E-mail requests for info

• Lease experienced reps • Identify and contact high quality leads• Schedule web or on-site demos

TechnicalSales Team

Lead Generation Sales Close

Creative Partnerships

• EMRs• Continuing Education

• Co-sell into common customers• Free training in continuing ed spaces

Low monthly pricing gets us a foot in the door

Software sale

Monthly subscription

Price $2000 $100/mo

LTV $2000 $3336

Nike Fitness

$30

Value to customer

$3000-$7000

Video Analysis

Tools$2000

$1022$188

Profit

$400 $1726

Marketing & Sales

Key Metrics:Cost of Acquisition = $1022Customer LTV = $3336

Marketing and Sales are our highest cost

Price$3336

• Software Development

• Bio Mech R&D• Management• Support

• Conference• Ads in mags• Direct/

Outsourced sales team

• Sales margin

• Customer LTV - Cost

AdministrationCost of product

Testing:Partnerships, Resources and Activities

Business model canvas 3 of 4

Business model canvas 3 of 4

Test in

Progress

Test in

Progress

Test in

Progress

We talked to…

Key Opinion Leaders

Research Centers Electronic Medical Record Companies

Camera Vendors

Dr. Paul Langer Rick Gawenda, PT

Research Centers

Thought / Opinion leaders

Electronic Medical Record

Depth camera vendors

visibility

data

validation pre-releases

Partner Map

API integration

differentiation

ecosystem

Content/CME

opportunities

+ Key Activity:Produce relevant

content/CME courses

Business model canvas 4 of 4

What’s next…

Focus on user interface – develop beta version for clinics

Get it out to early adopters

Refresh, Launch, and…

…Keep Talking to Customers!

Appendix

Canvas Week by Week

Week 1

Clinical Professionals• Physical therapists• Orthopedists/

Qualified medical evaluators

Fitness Professionals• Fitness gyms• Athletic trainers• Personal fitness

trainers

End users(2nd level target)• Patients• Athletes• Fitness clients

• Building the sales, support and distribution channels

• Validation, management, and analysis of application data

• Tech R&D

For healthcare/fitness professionals who need

to monitor their patient’s/client’s musculoskeletal

health/fitness, we offer a computer application for the Microsoft Kinect (and

similar devices) that… reliably assesses a

person’s joint function.…Unlike visual or

manual assessment methods, our application is quantitative, objective, and accessible in a wide

range of settings.

• Research centers (UCSF / UC Berkeley)

• Depth camera vendors (e.g. Microsoft, Primesense)

• Wearables vendor

• Hospitals and patient networks (e.g. Kaiser)

• Sports performance /fitness organizations (e.g. Nike)

• Hardware and wearables• Software development• Software hosting/maintenance• Sales and Support Consultants• Validation and user testing (UCSF)• Marketing• FDA approval,

• Sale/lease of software/computer package• Usage fee per patient/client (with possible

reimbursement from insurance)• For professionals, monthly subscription for product

and support• For end users, freemium subscription for data/user

network

• Sales team to identify and reach customers

• All-in-one: PC/camera/software

• Downloadable: Kinect web-store

• Microsoft: Xbox or Kinect-for-Windows

• IP• Biomech expertise• Software dev• Hardware

/wearables• Sales and Biz Dev• Secure data cloud• Finance to fund

FDA approval

1

3

4 2• Sales and post sales

support team• Co-development

with professionals• End user network• Patient-provider-

payer health triangle

5

6

7

89

ClinicalNon-clinical

Legend:

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10

Week 11