Post on 27-May-2015
dentalOptics
Amit Desai, Aaswath Raman, Ashwin Madgavkar, Alok Vasudev
Interviewed: 72 people
Final Presentation
Revolutionizing dental diagnostics through non-invasive imaging
dentalOptics
The A-Team
Ashwin Madgavkar
MBA/M.S.
BCG, UT Austin
Amit Desai
Ph.D., Mat. Sci
Cambridge, NC State
Aaswath Raman
Ph.D., App. Physics
Microsoft, Harvard
Alok Vasudev
Ph.D., EE
UT Austin
Mentor: Ethan Bloch
dentalOptics
Dental lighting is ripe for innovation
dentalOptics
Original Idea : Inside-Out Dental Lighting
Bring the light-source inside the mouth
Provide better, more consistent illumination
dentalOptics
Overview
I. Understanding our Customers
II. Finding Customer & Value Proposition Fit
III. Building the Business: Channels, Partners & Regulators
IV. Introducing.. periOptics
dentalOptics
Overview
I. Understanding our Customers
II. Finding Customer & Value Proposition Fit
III. Building the Business: Channels, Partners & Regulators
IV. Introducing.. periOptics
dentalOptics
Version 0 The A-Team
• Dentists• Hygienist
s• Specialist
s
• Chains• Dental
schools• Hospitals
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Personal service
• Training & demos
• Direct sales
• Trade shows
• Dental schools
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
dentalOptics
Getting out of the building
dentalOptics
Three major dentist archetypes
Care providers
“Bentley” dentists
“Chain” dentists
Most typical dentist• Primarily concerned with patient care• Worried about costs• Optimizes lifestyle and income
Uses technology to up-sell additional procedures• Typically in high-income areas• State-of-the-art facilities and technologies• Early adopter of dental devices
Equipment handled by purchasing department• Uses financial metrics to make decisions• Technologies standardized across all offices
dentalOptics
Caregiver
Business Owner
dentalOptics
Version 0 The A-Team
• Dentists• Hygienist
s• Specialist
s
• Chains• Dental
schools• Hospitals
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Personal service
• Training & demos
• Direct sales
• Trade shows
• Dental schools
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
Hypotheses Tested:
• Intra-oral lighting provides value for all dental professionals
• Channels
dentalOptics
Immediate changes• Current lighting was satisfactory for most uses
• However dentists expressed interest in better lighting for particular sets of procedures
dentalOptics
Immediate changes• Current lighting was satisfactory for most uses
• However dentists expressed interest in better lighting for particular sets of procedures
• Redid customer segmentation:
Segment by Procedure Length
dentalOptics
Version 0 The A-Team
• Dentists• Hygienist
s• Specialist
s
• Chains• Dental
schools• Hospitals
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Personal service
• Training & demos
• Direct sales
• Trade shows
• Dental schools
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
dentalOptics
Version 0+ The A-Team
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Reduced time
• Product sales• Licensing (physical & IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturing• Marketing• Sales• Service
• Stanford• IP• Human• Our network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties &
support• Legal
• Procedure length
- Short- Medium- Long
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
dentalOptics
Version 1 The A-Team
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Reduced time
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Procedure length
- Short- Medium- Long
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
dentalOptics
Version 1 The A-Team
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Reduced time
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Procedure length
- Short- Medium- Long
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
Hypothesis Tested:
• Lighting needs differ based on procedure length
dentalOptics
Procedure length learnings
Procedure length
Long (> 2 hrs)
Moderate (1-2 hrs)
Short (< 1 hr)
dentalOptics
Procedure length learnings
Procedure length
Long (> 2 hrs)
Moderate (1-2 hrs)
Short (< 1 hr)
Anesthesia
Patient comfort / movement no longer an
issue
Surgical microscope Loupe light Clamps
Existing lighting solutions
dentalOptics
Procedure length learnings
Procedure length
Long (> 2 hrs)
Moderate (1-2 hrs)
Short (< 1 hr) Root canals Crack detection Color matching
Identified key procedures:
Done by all dentists
Lighting critical
Segment by Procedure Type
dentalOptics
Version 1 The A-Team
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Reduced time
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Procedure length
- Short- Medium- Long
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
dentalOptics
Version 1 The A-Team
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Improved diagnostics
• Superior patient experience
• Reduced procedure time
• Procedure type
- Root canal- Crack detection- Color matching
dentalOptics
$200 MM/yr US market size
• 180,000 dentists • 2300 visits per year
average• Consumable for each
patient• ~$5 cost per consumable• 10% of visits• $0-100 cost per tool• 20% of dentists
$25 B dental equipment industry
Source: US BLS, ADA, dentist interviews, industry research
$200 M serviceablediagnostic tool
market
TAM: $2B
dentalOptics
$200 MM/yr US market size
• 180,000 dentists • 2300 visits per year
average• Consumable for each
patient• ~$5 cost per consumable• 10% of visits• $0-100 cost per tool• 20% of dentists
$25 B dental equipment industry
Source: US BLS, ADA, dentist interviews, industry research
$200 M serviceablediagnostic tool
market
TAM: $2B
Consumables are key
dentalOptics
Version 1 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Improved diagnostics
• Superior patient experience
• Reduced procedure time
• Procedure type
- Root canal- Crack detection- Color matching
Key Learning:
• Consumable component drastically improves revenue potential
dentalOptics
Overview
I. Understanding our Customers
II. Finding Customer & Value Proposition Fit
III. Building the Business: Channels, Partners & Regulators
IV. Introducing.. periOptics
dentalOptics
Version 2 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Improved diagnostics
• Superior patient experience
• Reduced procedure time
• Procedure type
- Root canal- Crack detection- Color matching
dentalOptics
Version 2+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Improved diagnostics
• Superior patient experience
• Reduced procedure time
• Procedure type
- Root canal- Crack detection- Color matching
Hypothesis Tested:
• Lighting needs differ based on procedure type
dentalOptics
Segmenting by Procedure Types
Color matching
Crack detection
Root canal
More natural light
Multiple teeth at once
Increased visibility in tight spaces
Dentists
Reduce procedure time
ProcedureIntra-oral light
benefit
Improve Diagnostic Capability
dentalOptics
Best response: Transillumination
Color matching
Transillumination for Cracks
Root canal
Proactive detection vs. waiting for patient pain
Multiple teeth at once
Track crack/defect progress
Dentists
Reduce procedure time
ProcedureIntra-oral light
+ imaging benefit
Improve Preventative Diagnostic Capability
Drive patient loyalty and return visits
dentalOptics
Prototyping
Transilluminated tooth using fiber or LED source
dentalOptics
Prototypes
dentalOptics
Form & Function
formfunction
dentalOptics
Physical prototypes help!• Handing dentists a crude clay mockup got us better, more
actionable feedback
• A great way of gauging whether new functionality satisfies a need
dentalOptics
Interest, but not excitement
Dentists generally liked the prototype Key Takeaways
1
2
3
4
5
Imaging back teeth is essential
Market would be somewhat limited / niche
Dentist #
Interest in prototype
None Very PositiveNeutral
dentalOptics
Version 2+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Improved diagnostics
• Superior patient experience
• Reduced procedure time
• Procedure type
- Root canal- Crack detection- Color matching
Hypothesis Tested:
• Lighting needs differ based on procedure type
dentalOptics
Version 2+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Crack detection
• Reduced procedure time
• Improve preventative diagnostics
• Increase # of procedures
• Provide a patient record
dentalOptics
We were tipped off to a potentially larger diagnostic market:
Keeping our ear to the ground..
dentalOptics
“This would be a game changer!”
“A new standard of care”
Non-invasive gum disease detection
We were tipped off to a potentially larger diagnostic market:
Keeping our ear to the ground..
dentalOptics
This should get poked into your gums 192 times during a dental visit
…there must be a better way
dentalOptics
Version 2+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Crack detection
• Reduced procedure time
• Improve preventative diagnostics
• Increase # of procedures
• Provide a patient record
Customer Insight:
• Periodontal imaging could be a larger market
• Periodontal imaging
dentalOptics
Version 3 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Crack detection
• Reduced procedure time
• Improve preventative diagnostics
• Increase # of procedures
• Provide a patient record
• Periodontal imaging
dentalOptics
Version 3+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Crack detection
• Reduced procedure time
• Improve preventative diagnostics
• Increase # of procedures
• Provide a patient record
• Periodontal imaging
Hypothesis Tested:
• Periodontal imaging is of greater interest to dentists
dentalOptics
Version 3+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Crack detection
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
• Periodontal imaging✔
dentalOptics
Version 3+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
New hypothesis:
• Insurance companies could be strategic partners
dentalOptics
Overview
I. Understanding our Customers
II. Finding Customer & Value Proposition Fit
III. Building the Business: Channels, Partners & Regulators
IV. Introducing.. periOptics
dentalOptics
Version 4 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
Hypotheses Tested:
• Insurance companies would embrace this technology
• FDA compliance is not prohibitive
dentalOptics
Key Partner: Insurance
“Periodontal probing is the single most inaccurate piece of data we get from dentists. Fraud and abuse are common”
Largest dental insurance provider in California
dentalOptics
Key Partner: Insurance
“Periodontal probing is the single most inaccurate piece of data we get from dentists. Fraud and abuse are common”
Dental Policy Committee • Meets regularly to evaluate new technologies• Determines which technologies will be added to annual
contracts based on efficacy and cost savings to insurance company
Willing to recommend use of new technologyNeed more clinical data, but are enthusiastic about the idea!
Largest dental insurance provider in California
dentalOptics
What we make
DentistDentalOptics
~$2000
Device cost (one time)
~$2.50 per patient
Disposables
dentalOptics
What the dentist normally makes
Dentist Patient
Insurance
Co-pay
Membership
$250
$250
Equipment / Variable Costs
Note: Assumes 50/50 copay-insurance split
dentalOptics
What we’d add for the dentist
Dentist PatientDentalOptics
Insurance
Co-pay
Membership
~$2000
$250
Device cost (one time)
$250
~$2.50 per patient
Disposables
Equipment / Variable Costs
Device creates
additional periodontal procedures
Note: Assumes 50/50 copay-insurance split
dentalOptics
Three classes of FDA Devices
Class I(eg, dental pick,
gloves, toothbrush)
Class II(eg, dental fillings,
ceramics, drills)
Class III(eg, stent,
implantable pacemaker)
Criteria FDA Requirements
Minimal health and safety risks, established precedent
Need to register with FDA but not get approval before putting it on the market
Presents safety and health risks that aren't completely controlled by GMP (good manufacturing processes)
Submit 510-K application to FDA, include detail about device, marketing materials, device safety features, and other paperwork
Invasive, inflammable, or presents other significant significant safety risks. Often times a new type of device
Very thorough process similar to drug approval. Requires clinical trails and mountains of paperwork
dentalOptics
Some regulatory riskDevice key risk:
misdiagnosisProxy suggests our
device will be class II
Intra-oral, non-invasive laser light caries (tooth decay) detector
Approved as class II medical device. Clinical tests conducted to prove accuracy
Device carries little direct risk• Intra-oral, non-invasive
probe • Uses non-harmful
wavelengths of radiationKey risk: misdiagnosis• Clinical evidence required to
establish efficacy
Source: Iowa Dental Supply
dentalOptics
Class II FDA approval process
• Construct device prototype
• Determine device diagnostic capabilities
• Begin FDA 510(k) documentation
• Enroll 1-2 periodontists in preliminary efficacy study
Feasibility study
0 18
93 6 12
15
Month
Class II device FDA trials and approval
• Determine predicate device(s)
• Enroll 4-7 sites and 10+ periodontists in study
• Fix critical end-points based on device capability (eg, 1 mm measurement error)
• Submit 510(k) to FDA and obtain approval
$200 K
30 patients
$200 - 400 K
200-400 patients
$1,000 – 2,000 K
1000-2000 patients
Without a predicate
Costs
Trial Size
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
✔✔
• Direct sales
• Trade shows
• Distributor
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
Hypotheses Tested:
• Insurance companies would embrace this technology
• FDA compliance is not prohibitive
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
Question asked:
• How do we sell our product?
dentalOptics
Private PracticeDentist
PurchasingDepartment
Big Distributors
InstitutionalDentist
Direct Sales
Channels
dentalOptics
Private PracticeDentist
PurchasingDepartment
Big Distributors
InstitutionalDentist
Direct Sales
Channels
80% Market Share30% Margin
dentalOptics
Private PracticeDentist
PurchasingDepartment
Big Distributors
InstitutionalDentist
Direct Sales
Channels
80% Market Share30% Margin
ContinuingEducationCourses
Magazines& Email
TradeShows
dentalOptics
Dental Charting Software
Entrenched incumbents in the management/charting space
Will accept new images: intra-oral cameras do this already without needing explicit partnerships (anything beyond images will require deep integration)
Our own software: extra barrier for many dentists based on conversations, but some tools have succeeded
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Patterson/Schein
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Schein/Patt.
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Patterson/Schein
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
Hypothesis Tested:
• Value Propositions are strong enough to sell products
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
dentalOptics
Our Sales Pitch
dentalOptics
Patient experience is key
• Accuracy• Reduced time• Patient comfort• Patient education• Reduced malpractice exposure• Up-sell procedures• Improved record keeping
☐
Value Props
Cost Props$1000 $2000 $8000
“I’d write you a check today!”
“This seems reasonable”“We would have the discussion”
“It would be cost prohibitive”
Per patient consumable cost < $5
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Patterson/Schein
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
dentalOptics
Version 4+ The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Patterson/Schein
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Improved records
• Patient education
dentalOptics
Version 5 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Patterson/Schein
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Improved records
• Patient education
dentalOptics
dentalOptics
dentalOptics
dentalOptics
periOptics
dentalOptics
Our Product: periOptics
dentalOptics
Our Product: periOptics
$2000 per unit$2.50 per silicone sleeve
Distributed through:Patterson Dental & Direct
Imaging Resolution:< 1mm
dentalOptics
$400 MM annual total addressable market for Periodontal Diagnostic Device
Device sales Consumables Total0
50
100
150
200
250
300
350
400
450$400 MM
$320 MM
$75 MM
• Device cost - $2000• Amortized over 4 years
• $2.5 consumables per patient
• 128 MM patients per year
Total addressable market ($MM)
Source: Department of Health and Human Services
dentalOptics
Growth Plan
Feasibility study
Month
Class II device FDA trials and approval
$300 K $1.5-2 MCosts
Regulatory
ProductDevelopmentScale-up Preparation
Early Prototype Dev.
Planning with Manufacturers
Product Cycle I Product Cycle II
0 24
6 12
18
dentalOptics
Growth Plan
Feasibility study
Month
Class II device FDA trials and approval
$300 K $1.5-2 MCosts
Regulatory
ProductDevelopmentScale-up Preparation
Early Prototype Dev.
Planning with Manufacturers
Product Cycle I Product Cycle II
$500*
Unit Economics
Cost of Goods
Margin
$900 $600
Distributor
Revenue
Cost to Dentist:$2000
*At scale: 10K units
0 24
6 12
18
dentalOptics
Next Step: Evaluate Technical Options
Optical Acoustic
function
dentalOptics
Lessons Learned
Physical prototypes engage potential customers
Consumables are key to revenue models in dental devices
Listen to your customers for new directions
Caregivers don’t think exclusively like businesspeople: the patient experience is paramount
“Hi, I’m a Stanford student…” gets you a conversation with pretty much anyone
dentalOptics
Appendix
dentalOptics
Version 0 The A-Team
• Dentists• Hygienist
s• Specialist
s
• Chains• Dental
schools• Hospitals
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Personal service
• Training & demos
• Direct sales
• Trade shows
• Dental schools
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
dentalOptics
Version 1 The A-Team
• Improved diagnostics
• Better customization
• Superior patient experience
• Lower price
• Reduced time
• Product sales• Licensing (physical &
IP)• Accessory sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Procedure length
- Short- Medium- Long
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
dentalOptics
Version 2 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Improved diagnostics
• Superior patient experience
• Reduced procedure time
• Procedure type
- Root canal- Crack detection- Color matching
dentalOptics
Version 3 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Crack detection
• Reduced procedure time
• Improve preventative diagnostics
• Increase # of procedures
• Provide a patient record
• Periodontal imaging
dentalOptics
Version 4 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Distributor
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Increase # of procedures
• Improve records
• Patient education
• Reduced malpractice
dentalOptics
Version 5 The A-Team
• Product sales• Licensing (physical & IP)• Accessory sales• Consumable sales
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Prototyping• Design• Manufacturin
g• Marketing• Sales• Service
• Stanford• IP• Human• Our
network
• Human resources• Manufacturing• Marketing• Sales
• Compliance• Warranties
& support• Legal
• Direct sales
• Trade shows
• Patterson/Schein
• Personal service
• Training & demos
• Continuing education
• Periodontal imaging
• Manufacturers
• Resellers
• Distributors
• Marketers
• Trade organizations
• Insurance companies
• Accuracy
• Reduced time
• Patient comfort
• Improved records
• Patient education
dentalOptics
Periodontal care right nowConsiderable undertreatment
70% of offices don’t regularly do a full probe test of all teeth! Time & effort
50% of US population has mild-severe periodontitis, only 5-10% of are treated
“The number-one reason dentists are sued is failure to diagnose periodontal disease”*
30% of patients don’t feel the need for the recommended treatment*
Increases with aging population
*K. Esler, Sidekick (2009)