Glucose Monitoring Smart Watch
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Transcript of Glucose Monitoring Smart Watch
Business Model for Glucose Monitoring SmartWatch
MT5016 Business Models for Hi-Tech Products
ADRIAN HO A0027118M
MO HAO A0039466W
XIAO YU A0034303Y
TAN JIAN AN A0098418R
Agenda
Diabetes
Evolution of Glucose Monitoring
Market Analysis
Technology Comparison
Value Proposition
Customers Selection
Scope of Activities
Value Capture
Strategic Control
Conclusion
Diabetes
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
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
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
Evolution of GlucoseMonitoring
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
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
Evolution of Blood Glucose Monitor
Minimal Invasive Glucose Monitoring
Subdermal Implant• Measures glucose in skin fluids• Sensor lifespan 72 hours
Source: Google contact lens
Source: Minimed Paradigm RTS, Medtronic Inc
Smart Contact Lens • Sensors and microchip
embedded in contact lens • Measures glucose in tear
fluid in the eye
Non-Invasive Glucose Monitoring (1)
• Spectroscopic techniques, transdermal glucose extraction & other techniques
GlucoTrack (Integrity Applications)
• Ultrasound, electromagnetic and heat capacity
• Spot measurements on earlobe with 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
Non-Invasive Glucose Monitoring (2)
Symphony (Echo Therapeutics)
• Advanced micro-abrasion system• Enhances the flow of interstitial fluids
and molecules across skin to transdermal sensor
• Sensor lifespan 24 – 48 hours
Source: Echo Therapeutics, Inc.
Market Analysis
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
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
Technology Comparison
Infra V’s Smartwatch
• Continuous Glucose Monitoring (CGM)Non-invasive spectrometric process
• Other biometric sensorsContinuous Blood Pressure Monitoring
Calories Burned and Current Burn Rate
Heart Rate Monitor
Oxygenation Level
ECG Waveform
• Use as stand alone or pair with smart phone
• Alert based on customized plan and targets
• Realtime data tracking and historical data storage
• Emergency locator and Medic Alert
Company Infra VEcho
Therapeutics Integrity
ApplicationsMedtronic DexCom Roche
ModelCGM
SmarwatchSymphony GlucoTrack
MinimedParadigm RTS
SEVEN PlusACCU-CHEK Aviva Plus
Device
Needle-free Yes Yes Yes No No NoSensor 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
hoursNA 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 data6 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) 200 x 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 g114 g
(ex earclip 40g)102 g
(sensor 7 g)100 g
(sensor (6.7 g)Approx. 60 g (with
battery)
* Values based on assumptions
Technology ComparisonModel
(Company)Technology Description
ACCU-CHEK Aviva Plus (Roche)
Invasive(Traditional glucometer)
Pierce skin 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 & thermal technology to measure glucose from earlobe
Symphony(Echo Therapeutics)
Measure transdermal glucose levels via transdermal permeation system
RocheACCU-CHEK Aviva Plus
Google Inc.Smart contact lens
Integrity Applications GlucoTrack
High
Low
Comparison of Products on Various Dimensions
Value Proposition
Value Proposition
Diabetics
Painless method of glucose monitoring
Affordable and easy to operate device
Healthy individuals
Tracking glucose metabolism during intense activities
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
Customer Selection
Customer Selection
Healthy Individual
Hospitals
DiabeticsInsurance
Companies
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.
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.
Customer Selection
Diabetics
> Health individual> Hospitals
Insurance companies
Scope of Activities
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
Straps
Misc. Devices (screw, buttons, etc)
Key Components
Battery
Sensor
Housing
LCD Screen
Microprocessor
Motherboard
Straps
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
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
In House Out Source
LCD screen, Battery
Microprocessor, motherboard
Sensor
Appearance (housing, straps)
Misc. Devices
Healthcare Informatics
In-house or Open Innovation
Value Capture
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;
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
Value Network
Diabetics
product
money
Hospital
money
service
Healthy Individual
product
money
Subscription Subscription
money
product
Apps Apps
Insurance Company
Historical Data
money
money
InsuranceInsurance
money
Company
Value Network
DiabeticsHealthy
Individual
Company
Research institutions
Historical Data
Strategic Control
• Leveraging on both Intellectual Property protection and
complementary assets to endure continued profitability for the
company
Strategic Control
Intellectual Property
Complementary Assets
Sustaining Profitability
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)
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
Strategic Control:Intellectual Property
Documentation Control
- Engineering drawings, work instructions, engineering change documents, etc, to be made company confidential and electronically controlled
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
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 hospitals and 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.
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
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
Conclusion
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.
Thank You