Biomedical Innovation & Venture Creation Report on Siemens Healthineers

Running Head: BIOMEDICAL INNOVATION & VENTURE CREATION
BIOMEDICAL INNOVATION & VENTURE CREATION
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Executive Summary
The mission of this report is to examine the Biomedical Innovation and Venture creation of one
of the most renowned Biomechanical company named Siemens. The target market has been
chosen as Saudi Arabia. The report examines various business strategies that include RAISON
D’ETRE including Mission Passion, Values; Market analysis including TAM, persona; VALUE
CREATION including Product Description, Problem, Quantified Value Proposition and others.
Product Unit Economics has been also analysed using COCA and LTV.

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Table of Content
1 RAISON D’ETRE........................................................................................................... 5
1.1 Mission:....................................................................................................................5
1.2 Passion:.................................................................................................................... 5
1.3 Values:..................................................................................................................... 6
1.4 Initial Assets:.............................................................................................................6
1.5 Initial Idea:................................................................................................................7
2 INITIAL MARKET......................................................................................................... 7
2.1 Beachhead Market..................................................................................................... 7
2.2 End User Profile........................................................................................................ 8
2.3 TAM:....................................................................................................................... 8
2.4 Persona:.................................................................................................................... 9
2.5 10 Customers:............................................................................................................9
3 VALUE CREATION..................................................................................................... 11
3.1 Use Case:................................................................................................................11
3.2 Product Description:.................................................................................................11
3.3 Problem:................................................................................................................. 12
3.4 Quantified Value Proposition:...................................................................................13
4 COMPETITIVE ADVANTAGE.....................................................................................13
4.1 Moats:.................................................................................................................... 13
4.2 Core:...................................................................................................................... 14
4.3 Competitive Positioning:.......................................................................................... 14
5 CUSTOMER ACQUISITION.........................................................................................14
5.1 Decision Making Unit:............................................................................................. 14
5.2 Customer Buying Process:........................................................................................15

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5.3 Windows of Opportunity:......................................................................................... 16
5.4 Possible Triggers:.................................................................................................... 16
5.5 Regulatory Strategy:.................................................................................................16
5.6 Reimbursement Strategy:..........................................................................................17
6 PRODUCT UNIT ECONOMICS....................................................................................17
6.1 Business Model:...................................................................................................... 18
6.2 Pricing:................................................................................................................... 18
6.3 Short Term LTV:..................................................................................................... 18
6.4 Short Term COCA:..................................................................................................19
6.5 Medium Term LTV:.................................................................................................19
6.6 Medium Term COCA:..............................................................................................20
6.7 Long Term LTV:..................................................................................................... 21
6.8 Long Term COCA:.................................................................................................. 21
7 SALES......................................................................................................................... 22
7.1 Preferred Sales Channel:...........................................................................................22
7.2 Sales Funnel:...........................................................................................................23
7.3 Short Term Mix:...................................................................................................... 23
7.4 Medium Term Mix:..................................................................................................24
7.5 Long Term Mix:...................................................................................................... 24
8 OVERALL ECONOMICS..............................................................................................25
8.1 Estimated R&D Expenses:........................................................................................25
8.2 Estimated G&A Expenses:........................................................................................25
8.3 LTV/ COCA Ratio:..................................................................................................25
9 DESIGN & BUILD........................................................................................................26
9.1 Key Assumptions:....................................................................................................26

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9.2 Assumptions Tests:.................................................................................................. 27
9.3 MVBP:................................................................................................................... 27
9.4 Tracking Metrics:.....................................................................................................29
10 SCALING................................................................................................................... 30
10.1 Product Plan for Beachhead Market:........................................................................30
10.2 Next Market:......................................................................................................... 31
10.3 Product Plan Beyond Beachhead Market:.................................................................31
10.4 Follow-on TAM:....................................................................................................32
11 VENTURE FORMATION............................................................................................33
11.1 Stakeholders:.........................................................................................................33
11.2 Define Roles & Responsibilities:.............................................................................33
11.3 Assign Roles & Responsibilities:.............................................................................34
11.4 Engagements:........................................................................................................ 35
11.5 Corporate Filings:.................................................................................................. 35
11.6 Formation Agreements:...........................................................................................35
12 CAPITALIZATION.....................................................................................................36
12.1 Capital Need:.........................................................................................................36
12.2 Use of Funds:.........................................................................................................37
12.3 Offering Type:.......................................................................................................37
12.4 Pre-Money Valuation:............................................................................................ 38
12.5 Post-Money Valuation:...........................................................................................38
12.6 Investor Profile:..................................................................................................... 39
12.7 Investor Persona:....................................................................................................39
12.8 Ten Investors:........................................................................................................40
References:...................................................................................................................... 41

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1 RAISON D’ETRE
1.1 Mission:
The mission of Siemens Healthineers is to be the most trusted partners, which possess the
potential to enable the health systems as well a healthcare providers worldwide for enhancing the
medical outcomes while reducing the costs. According to Matthias Platsch, Head of Services, by
adding the series of Medicalis’ technology solution to the portfolio of Siemens Healthineers
organization, the organization is targeting to complement as well as support their offerings to the
population of Health Management and Value-Based Healthcare (Acs et al., 2016). Currently the
management is considering it as key priority for their ongoing expansion through their business
services.
1.2 Passion:
As per the management of the organization, their passion is to minimize healthcare issues
of the world by provision of efficient healthcare as well as laboratory equipments. The culture of
the organization has been designed to inspire the employees to put their hearts into healthcare.
The culture is shaped by the by the principles of the organization. Those principles not only
guide the behaviours as well as values of the organization but also allow the same to tap into the
rich learning capability within the organization. In order to emphasis on their passion, the
management of Siemens Healthneers believes their employee to be their power. According to Al
Shammari et al., (2016), the company possess 50,000 employees across the world who
demonstrates companionate as well as supportive ways while handling their profession which in
turn attract more consumers towards the organization.

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1.3 Values:
The chief three values of the Siemens Healthineers organization are responsibility,
Excellency and innovativeness. According to the management of the organization, the three core
values of the organization are responsible for the success of the same over 160 years.
Responsibility defines the way the organization is committed to the ethical as well as responsible
actions. When it comes to excellence, it is based on achieving high performance along with
excellent results. Lastly, by innovation, the organization ensures creating sustainable values. The
vision of the organization, that is to be the pioneer of the time, motivates the company to perform
their job effectively.
1.4 Initial Assets:
The chief initial assets of the company are its huge workforce, high brand equity, yearly
revenue and massive consumer base across the world. The current workforce of the organization
is 45,000. In order to maintain the efficiency of the employees and thus enhance organizational
performance, the organization uses innovative as well as personalized staff development,
coaching as well as training solutions. Not only has this, for preventing attrition and loss of
efficient workforce, the organization used several intrinsic as well as extrinsic motivational
techniques in order to enhance the performance of the consumers (Alharbi, Atkins & Stanier,
2015). The highly qualified and experienced workforce of the organization is considered to be
one of the chief reasons behind its high brand equity and yearly revenue. When it comes to the
massive consumer loyalty of the company, efficient offline as well as online marketing can be
considered as the chief tool to attract consumers towards the organization.

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1.5 Initial Idea:
In the year 1847, the organization started as a small family business in Berlin and was
founded by Werner Von Siemens. The history of Siemens Healthineers started in Berlin in the
mid-19th century as a part of what is now known as Siemens AG. Siemens & Halske was
founded by Werner von Siemens and Johann Georg Halske on 12 October 1847 (Alkhamis et al.,
2017). The company was formed around the inventions created by Siemens known as the
pointer telegraph. In the new invention, a needle was used to point out the sequence of letters
instead of using the Morse code. Eventually, the organization included electrometrical
equipments along with specializing in medical technology. Siemens Healthineers is connected to
the larger corporation, Siemens AG. The name a Siemens medical solution was adopted in the
year 2001, and the change to Siemens Healthcare was made in 2008.
2 INITIAL MARKET
2.1 Beachhead Market
The initial market of the organization is healthcare organizations of the countries in
which they have established their business. A beachhead market is defined as a small market that
possesses specific characteristics for making it an ideal target for selling new product as well as
services. The choice of the market is totally based on the compatibility between the product and
the resources available along with the market itself. In this case the product for the beachhead
market of Saudi Arabia will be the general imaging and diagnosis systems including X-Ray,
MRI, CT scanning and Advance digital imaging. The market is supposed to help the organization
to achieve its goals along with assisting the sae to advance from its infancy to other markets