View
160
Download
0
Category
Tags:
Preview:
Citation preview
JEGATH PRABHU S PGP/16/25 jegathps16@iimk.ac.in +91 9539668216
MADHUMITA PATNAIK PGP/16/27 madhumitap16@iimk.ac.in +91 8943690758
MOHAMED ANAS S PGP/16/150 mohamedas16@iimk.ac.in +91 9745034583
SUBHASH SN PGP/16/350 subhashsn16@iimk.ac.in +91 8943694839
ANAND PATIL PGP/16/128 anandgp16@iimk.ac.in +91 8943690963
Infant mortality and Maternal Mortality are still prevalent in most of the developing and underdeveloped economies. Major reasons are low sanitation awareness amongst mothers, lack of proper medical infrastructure and ignorance of safe and proven methods of child delivery. In India the current IMR is 44 per 1000 live births. Statistics also report that only 47 per cent women in India have an institutional delivery and 53 per cent had their births assisted by skilled birth attendant. Almost 75% of the IM are preventable with adequate maternal care. Though the government provides kit for birth attendants, it is not good enough to save the child’s life at abnormal cases. Over 70% of our survey respondents working as nurses in UAE also highlighted the need to provide infrastructure and trainings to midwives about safe and proven child delivery methods. With primary focus on introducing low cost advanced healthcare solutions to rural India, we propose a new product to be termed as “SAFE Hands”. This will be a single unit comprising of all vital equipments required to attend a child birth. The products would be highly sterile with suitable arrangements deemed fit for usage in remote parts where electricity may be unreliable. The product would be highly portable. The product is targeted at midwives and traditional child birth attendants who otherwise follow old and unsafe methods of child delivery. Government would have to run a separate training program for midwives and would certify them. The business model would be only B2G during initial phases and would slowly move into B2B as well in subsequent stages. Well crafted procurement strategies are suggested which will be a vital for success of the business. The rationale behind the strategies are to achieve long term competitive advantage and economies of scale. For financial analysis the pricing model adopted is Cost Based Pricing. Each component’s cost is estimated based on the wholesale price as available in the market, which all together gives the net cost of the product.
Approach
Burning Problems in Indian Healthcare
Market Analysis
Problem Solution – “SAFE Hands”
Business Model and Analysis
Implementation Strategy
Components - Pricing & Sourcing
Challenges & Mitigation Strategy
Geographical Scalability of Solution
Key Financials
Issues in Indian Healthcare
Over burdened by increasing population
High Infant Mortality rate
Poor access to healthcare owing
to economic status
Continuing/ Emerging infectious
disease
Low doctor to patient ratio;
48:100000
Low health insurance coverage
HIV epidemic and tobacco
related diseases
Malnutrition
Why choose Infant Mortality problem?
Over 400,000 newborns die within the first 24 hours of their birth every year, the highest anywhere in the world, a study by an international non-government
organization, ‘Save the Children’
The annual State of the World’s Mothers report found that 56,000 mothers die annually
Nearly 75% of newborn mortality can be reduced by improving access to affordable medicines and timely
life-saving interventions
Key issues
Half of the total maternal deaths occur because of hemorrhage
and sepsis and are preventable with adequate maternal care
More than half of all married women are anaemic and one-
third of them are malnourished (have a body index below
normal)
A High quality Portable infant care kit can save lives of many infants dying each year
Primary Research
71.4%
21.4%
0
7.1%
0
0.0 50.0 100.0
% Percentage of Respondents
Practices followed for baby delivery care in India are Safe and Proven
Completely Disagree
Somewhat Disagree
Neutral
Somewhat Agree
Completely Agree
Survey was conducted among 15 Nurses and Midwives at International Level
(Mainly from UAE having Indian Origin)
Key Insights It is a well known fact that major causes of Infant mortality are inaccessibility to proper care and poor hygiene But following traditional unproven methods is also a cause of Infant Mortality
Healthcare Industry Trends
Indian Health care industry value - $ 65 Bn (2012) India spends 2.5% of GDP on Healthcare, Least among BRIC nations Private sector contributions 80-85% of investments CAGR from 2013 to 2015 is 20% annually
Key Players: GE Healthcare, Siemens Healthcare, Philips Healthcare, Hitachi Medical Systems, Toshiba Medical Systems
Clinical & Lab Diagnostics
Value $6.5 BN CAGR 15%
Value $ 8.6 BN CAGR 13%
Value $ 2 BN CAGR 6.4%
Value $ 5.4 BN CAGR 11%
Field Market Size Attractiveness
H L
Health Insurance
Medical Equipments
Healthcare BPO & IT
H L
H L
H L
Consumer Preferences
After Sales Service/Support
Value for Money
Geographic Location
Product Availability
S>G>P>T
P – Philips G – GE Medical S – Siemens T – Toshiba Med Firms are arranged from Left to right in decreasing order of Correlation between Consumer pref. and Firm Goals
Goal 2 Goal 1 Goal 3
Preference 2
Preference 1
Preference 3
Source: http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=176&action=article
Preference 4
Market Size(2012) and CAGR (2012 to 2015)
KEY
S>P>G>T
S>P>G>T
S>G>P>T
P>S>G>T
G>S>P>T
P>S>G>T
G>S>P>T
G>S>P>T
G>P>S>T
G>P>S>T
G>S>P>T
Product Portfolio
Tie-ups with Suppliers
Market Share Firm Goals
Medical lamp for
examining
purpose.
Rechargeable
Stethoscope for
medical
examination of
mother & fetus.
Digital
Sphygmomano
meter for
mother’s BP
level (3 AAA
Battery)
To perform
episiotomy, a
surgical cut ,
make baby’s birth
easier & avoid
vaginal tears
Collecting the
infant and
examining
placenta
To determine
the amount of
oxygen in the
blood and
pulse rate of
Infant. Detect
Congenital
Heart Defects
(CHD). 3
AAA
Batteries
For providing
Neonatal
Resuscitation
& Child CPR
UV Technology
for sterilizing
steel
equipments
Incontinence
sheets,
Gauze
Swabs, Baby
Diaper,
Gloves,
Saline water
bottle, &
Basic
Medications
Used to
monitor
fetal heart rate
& uterine
contractions
while baby is
in uterus.
Rechargeable
Li-ion Battery
Measure
Infant’s weight
& Temperature
Clamp the
infant’s
umbilical
cord, post
cleaning the
infant’s face
& mouth
Disposables Examining
Lamp
Stethoscope &
BP Apparatus
Cardiotocho
-graph
Episiotomy
Scissors &
Vaginal Specula,
Spencer wells
Forceps
Umbilical
Cord Clamps
Rectal
Thermometer
& Weighing
Scale
Baby Warmer
Baby warmer
to maintaining
temperature
of low weight
& pre-mature
babies
Sterilization
Unit
Tray & Bowl
Pulse
Oxymeter
Infant
Resuscitation
Unit
Recharge Docks
Product Description & Significant Features
The product includes a 72 cm
size trolley bag comprising
necessary electronic
equipments and things essential
for safe baby delivery
The Equipments are
arranged in a sequential
manner that is in tandem
with procedures followed
during a child birth
All equipments are either battery
operated or rechargeable. The docking ports are used to
recharge these devices by
connecting via single wire into
AC supply
1 2
3
4
5
6 7
8
9
11
10
12
New Product
Existing Product
A compact portable infant delivery attendant kit with world class capability required for a safe and secure
infant delivery
Traditional Birth attendant kit with narrow range of simple amenities such as blanket, weighing scale, a
warm bag, a spoon and a torch
Quality Compiles with widely accepted and scientifically tested and proven methods which eliminates unsafe traditional practices in rural India
Differentiating factors
Government certification program for Midwives (Sahiyyas)
The product’s primary target will be midwives. Govnt. should run a
certification program that certifies the midwives as competent in service during
baby delivery
Phases of Business
Hygiene In-built sterilization unit enabling 100% infection control over existing traditional techniques
Global Standards A product not only suitable for Indian rural but also is scalable to developed countries
User-Friendliness Provision of a set of pictorial instructions easily comprehensible by common man
Design Innovation Innovative sequential arrangement of products in the kit and elimination of need for external charging of equipment
Phase II (B2G and B2B)
Phase III - B2G and B2B and International Expansion Phase I (B2G)
Porter’s Five Forces
New Entrants Threat Medium. Replicating the business model requires mobilizing critical resources and capabilities
Substitutes Threat Low cost equivalents may be a threat but unmatchable quality will stand out
Competitive Rivalry High. Fierce competition expected from a few big players trying to launch similar products
Buyers’ Bargaining Power Medium to High power – Since currently no product with equivalent quality and cost exists
Suppliers Bargaining Power Medium – Sourcing products from different players may be challenging
H
L
H
L
H
L H
L
H
L
Pilot Phase
1st Year
Phase II 4th & 5th
Year
Phase III > 5 Years
Promotion Place
Aggressive Social Media promotion through Philips page and Advertisement Apps
Organizing trade shows inviting Ministers, NGOs and Government officials
Free training workshops to midwives on the kit demonstrating the usability and efficacy
Before the start of this phase the product would have got better visibility hence the promotions stand on that assumptions Creating awareness to across the country to
all states through a mass media documentary
Segmentation Targeting Positioning
Segmentation based on accessibility & affordability of healthcare providers; the deciding factors in access to quality healthcare
Primary Target: Trained Midwives and birth attendants of rural areas Secondary Target: Gynaecologists, obstetricians
The product is positioned as a world class quality and low cost solution to take care of the child till it reaches the safe hands of the mother
Highly affordable Providers
Medium affordable Providers
Low affordable Providers
Rural Midwives
Primary Target
Less promotional activity within India; getting ready for scaling it to international level Tie up with global organizations such as
UNICEF and WHO
Distribution through government owned distribution channels and direct selling
Pilot phase will be launched in Madhya
Pradesh which has the highest IMR
On the success of phase 1 the product will be
launched in other states on one-on-one basis
Time to expand globally to prospective
countries having high infant mortality rate
In addition to government owned channels Distribution through NGOs and sales representatives to private hospitals
and medical centres in rural areas
Distributing to international community through exporting and distribution
channels owned by global organizations such as UNICEF, WHO etc
Distribution Strategy
Phase I 2nd & 3rd
Year
Components Sourcing Cost Leading Suppliers
Available with Philips
5000 Relevant Differentiation
Unique design & portable: Changing
the existing model of bringing patient to the
equipment -> Equipment to the
patient
Awareness Leveraging upon the existing Brand name
of Philips/GE as Leading Innovators
in Healthcare
Emotional Connection A Life saving
instrument. High quality delivery care system of child till it reaches safe hands
of mother
Accessibility Very highly accessible
as it will be made available in all PHCs
and CHCs
Attributes for Brand Building
Conducting training programs as a part of initiative by Govt. and NGOs and Certification by Philips This will act as a big brand building exercise
Midwives Certification Program
Net Cost = INR 1,71,200
Episiotomy Scissors / Vaginal Specula / Tray, Bowl
Examination Lamp & Headlight
Stethoscope & Digital BP Apparatus
Pulse Oxymeter
Rectal Thermometer& Weighing Scale
Baby Warmer
Sterilization Unit
Resuscitation Unit
Trolley Bag
Cardiotochograph
Disposable Surgical Equipments
Procure from OEM
Outsource to ODM
Outsource to ODM
Procure from OEM
Outsource to ODM
Procure from OEM
Outsource to leading ODM
Procure from GE Medicals
Outsource to ODM
Outsource to ODM
1500
2200
130000
1400
1250
6200
1650
11000
3500
7500
Philips
Medline, Baxter
Riester, Spencer Italia, JSB Healthcare
Jumper, GE Medical
Medline, Baxter
Jumper, Philips
Hangzhou, Rycom Electron Technology
Shenzen Wap –health Technology
GE Medical from Embrace
Olampus, Jupiter Scientific, Surgico
Samsonite, VIP
Developing strong relationships with governments of various states and central government Cutting edge technologies based on R & D Capabilities and Mindful acquisition of selective value adding companies Building strong distribution/ sales network Providing Value Added Services
Building good relation with suppliers and Customers (Service after sales) and making them feel very much an essential part of Supply chain Building International reputation for the product through relationship with NGOs and International Organizations such as UNICEF, WHO and World Bank
Dominant design with continuous improvement and value additions Building an optimized operations and Supply chain for cost reduction Philips presence in over 60 countries will give an edge for Philips in scaling the business in a faster pace
Short Term
Long Term
Both Long and
Short Term
Inimitability Study
Supplier Relations
Acquisitions and Partnerships
Dominant Design
Relations with Govt. and Other Insti.
Strong Supply Chain
International Reputation
Very High
Contributing Factors Level of Contribution
High
Moderate - High
High
Moderate
High
Inorganic Growth Strategy
Acquisitions Partnerships
Products Companies Products Companies
Cardiotochograph
Jumper
Pulse Oxymeter
Rectal thermometer
Jumper
Hangzhou Universal
Surgical Equipment
Medline
Stethoscope & BP
Apparatus
Resuscitation Unit
Customized Trolley Bag
Spencer Italia, JSB Healthcare
Shanghai EMSS Med Tech
Samsonite
Source: World Bank
Analysis
World Africa
Scalability study is done considering two basic criteria; Market attractiveness and Ease of doing business Apart from these, politically stability of the countries is also considered since the regions under consideration are politically sensitive countries. [Source: Economist Intelligence Unit]
Market Attractiveness
Ease of Doing Business
Asia Latin America
Market Attractiveness
Ease
of
Do
ing
Bu
sin
ess
Africa
Asia
Latin Am.
Europe
North Am.
Market Attractiveness
Ease
of
Do
ing
Bu
sin
ess
Nigeria
Ethiopia
Uganda Kenya
Ghana
South Africa
Rwanda
Market Attractiveness
Ease
of
Do
ing
Bu
sin
ess
Pakistan
China
Indonesia
Bangladesh
Philippines
Vietnam
Nepal
Market Attractiveness
Ease
of
Do
ing
Bu
sin
ess
Brazil
Mexico
Haiti
Bolivia
Colombia
Market Attractiveness High Low Circle’s Size Indicates Market size. Do not compare circles between different regions
Market attractiveness is gauged through not only the Infant Mortality rate in particular region, but also through the total number of Infant deaths happening in that region each year Ex: For India (2011), Infant Mortality Rate: 47 per 1000 live Birth, No. of Infant Death: 1,273,000 [Source: World Bank]
World Bank ranks each country every year on ease of doing business based on certain important criteria for business operation. June 2012, India ranks 132 in the world in ease of doing business, with1 being most ease
Project Phase
Important Metrics
INR 63 Crores
407070042
The revenue has been projected from 2014 to 2022. Phase I : 2014 -16 (3 yrs) Phase II : 2017 -19 (3 yrs) Phase III : 2020 -22 (3 yrs)
Source : http://www.fulcrum.com/medicaldevice_appraisal.htm
582048000
8560
1201
3063 units
2.54 years
Assumptions
Average Sales of 3 years
15% CAGR
Net Present Value
Discount rate 12%
Outside India Madhya Pradesh Other States
Avg Units/Year
Revenue
PV
NPV
Phase I Phase II Phase III
182987308 129594955 91781515
103441608 205202289
2049 1033 520
Avg. Units sold in a year (Based on 8 yrs data)
Fixed Costs
Variable Costs
Break Even Units
Break Even Time
• World Health Statistics 2013 published by WHO • http://www.ncbi.nlm.nih.gov/pmc/articles/PMC521580/#!po=6.25000 • http://www.ncbi.nlm.nih.gov/pmc/articles/PMC521580/#!po=6.25000 •http://nrhm.gov.in/images/pdf/media/publication/brief-note-on-child-health/brief_note_on_ch_nov_2011.pdf
Financial Analysis Calculations
Recommended