Business Model for

Google Smart LensArun Balu A0110204J

Ka Mung Chee A0098573MHanisah Hannifah Gupta A0098462U

Ler Ming Lim A0098570U

1MOT5016 Business Models for Hi-Tech Products

Agenda

Introduction

Value Proposition

Industry & Market Analysis

Technology Comparison

Scope of Activities

Value Capture

Strategic Control

2

Diabetes• Diabetes is a metabolic disease in which the person

has high blood glucose (blood sugar).

• 2 major types of Diabetes:

Type 1 Diabetes (Insulin-dependent)

o Your body makes too little or no insulin.

o Occurs commonly in patients

under 20 years of age.

Type 2 Diabetes (Non-insulin dependent)

o Your body can not use the insulin it makes

o 90% of diabetic patients are affected

with type 2 Diabetes.

3

No cure exists today, can only be managed

through lifestyle changes and drugs (insulin).

Glucose Meter Evolution

41950 1960 1970 1980 1990 2000 2010

Urine Analysis

Visual

Digital Readout

Blood Glucose Self Monitoring (BCSM) Continuous Glucose Monitoring (CGM)

Blood Analysis

Glucose Meter Evolution

5

Problem Statement• The traditional method of using a lancing (pricking)

device is disruptive and painful and needs to be

done repeatedly throughout the day.

• Many diabetic patients check their blood glucose

less often than they should leading to poor diabetes

management.

6

finger tip calluses

7

Google smart lens demo

What does Google Lens Do?• Monitor glucose levels from tears by using sensor

• Transmit data via antenna to the users mobile device

• Provides a trend -continuous glucose level reading

per 1 second

• LED lights to warn users when their glucose levels

dangerously exceed too high or fall too low.

8

Value Proposition

9

Value PropositionA continuous and painless method to monitor

glucose levels for better diabetes management.

• Continuous glucose monitoring- Eliminates the need for

users to actively perform blood testing

• Mobility to users- Wearable system can be integrated

with lifestyle

• Accurate readings ensures efficiency and safe use

• Coupled with healthcare informatics for insulin dosage

and remote monitoring

• Reusable allows a cost effective solution (estimated USD

100/month).

10

Industry & Market Analysis

11

Global Diabetes Market• Diabetes Device Industry-

> US$12.2 billion (2012)

• Exponential increase in

Diabetic patients

• Trend of patients getting

younger (lifestyle, dietary,

less physical activities

reasons)

12IDF Diabetes Atlas 6th edition. 2013. International Diabetes Federation

Target Customers• Young diabetic professionals (20-45 years)

• More active and mobile lifestyle

• More technology savvy

• Early users- Athletes, current contact lens users

13IDF Diabetes Atlas 6th edition. 2013. International Diabetes Federation

Technology Comparison

14

Competitors

15

FDA Approved

Sept 2013

Competitors’ Analysis

16Accuracy

Comfort (Non

Invasive) Convenience ReusableCost

effectivenessMobility

for patientsContinuous

Reading16

High

Low

Glucose Meter‘Gold Std’

Continuous Glucose Monitor

Glucose Meter Watch

Google Smart Lens

Scope of ActivitiesBringing it to the market…

17

Bringing it to the Market

• Challenges for manufacturing

• In/Open innovation ?

• Alliance?

18

Key technology involved• MEMS

• Antenna

• Lens (polymer)

• RFo Power

o Date transfer

• Manufacturability

• Healthcare informatics

19

Manufacturability• New ways of manufacturing to

embed MEMS into a polymer.o Polymer and MEMS manufacturing

technique is not compatible

o Materials used in MEMS needs to be

biocompatible

o MEMS needs to be manufactured

separately and connected on the polymer

using

20Source: http://spectrum.ieee.org/biomedical/bionics/augmented-reality-in-a-contact-lens/0

Putting it all together…• Parts were fabricated on

wafers

• Each part has metal

interconnectso Each is etched with a unique shape

• A substrate that is

lithographed with defined

shape is prepared to hold

parts together

• Micro-scale soldering of joints

21

Source: http://spectrum.ieee.org/biomedical/bionics/augmented-reality-in-a-contact-lens/0

Healthcare InformaticsNew services can be derived with the use of this lens

which opens up new opportunities

• Remote monitoring of glucose level

• Possibility of Insurance compliance?

• Valuable data collection

• Real time Insulin dosage adjustment

22

In house Out Source

Lens ✓

Microcontroller ✓

Sensor ✓

RF ✓

Manufacturability ✓

Healthcare

informatics✓

23

Keeping it in or Open Innovation?

Value Capture

24

Value Capture

25

PatientPhysician/

Hospital

MedtechIndustry

(Medtronic)

App-lens Developer

Value Map

26

Which Company to Partner?Medtronic

o World leader in medical device

technology and therapies

o MiniMed Insulin pumps for continuous monitoring and

insulin pump therapy

o Technology Licensed from NASA

o Connected Care

o Have own solution for non-

invasive

glucose monitoring (Enlite)

27Source: http://www.diabetando.net/sites/default/files/1_medtronic-minimed.jpg

Strategic Control

28

Emerging Wearable Computing Industry

29

• New growth industry

• $12 billion industry by 2018

Strategic Control

30

R&D

-Wearable medical technology

- Strategic Partnership

Healthcare Informatics

-Insurance compliance

-Remote monitoring

Standards

-compatibility

-Regulatory compliance

Strategy

-Acquisition of start-ups

-Vertical integration

Success &

Sustainability

Conclusion• New Technology

o Continuous Monitoring

o Non invasive

o Unprecedented Mobility for Patients

• Emerging Market o Healthcare informatics – Google’s core competencies!

• New value propositiono Insurance Compliance

31

Thank YouQuestions?

32

Back up slides

33

Competitors’ Analysis

34

Feature Google Smart lens Glucose meters (“Golden Standard”)

Continuous Glucose Monitoring

Medtronic MiniMed

GlucoWatch

Mode of measurement

Contact lens worn to measure glucose level in tears

Finger pricking to measure glucose level in blood

Tiny sensor inserted under the skin to check glucose levels in tissue fluid

Sensor at the back of watch measures the glucose in the fluid under the skin

Accuracy Highly sensitive sensor Golden standard Measures interstitial fluid glucose

Reference method

Reusable Yearly Strip- 1x use Up to 6 days Skin pad Every 12 hours

Convenience Lens is easy to put on Frequent test Change every 3-6 days

Change every 12 hours, 2 hours warm up

Comfort Non-intrusive Frequent finger prick Insertion under skin non-intrusive with small electric current

Non-invasive Lens worn on the eye Finger prick Sensor is worn at the abdomen

Watch worn on the wrist

Mobility Wearable technology Testing strips/kits to be brought alongside,Frequent testings

Replacement of sensor required

Wearable technology,Replacement of sensor pads required

Continuous readings

Yes, up to 1 s intervals No 5-minute or 1-minute intervals

every 10 mins

Cost Comparison

35

Contact

Lens

GlucoWatch Glucose

meter

Continuous

Glucose

Monitoring –

Medtronic

Enlite

Google

Smart lens

Sensor pad

$240 (monthly,

$4 per pc)

Test strips

$85 Monthly

(4x/ day

testing, 75

cents per test strip.

Transmitter

unit $375

Sensor

$473 Monthly

(5 pcs)$100

Monthly

(1 pair with

1 sensor)

Watch

$140Reader

$20-$70$40

(Monthly disposables)