bioniks final 2013 berkeley
TRANSCRIPT
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