Biomedical Innovation & Venture Creation

This report evaluates a biomedical innovation and venture creation of a startup biomedical manufacturing company. It explores diverse business strategies, market analysis, value creation, competitive advantage, customer acquisition, product unit economics, sales, overall economics, design & build, scaling, venture formation, and capitalization.

Running head: BIOMEDICAL INNOVATION & VENTURE CREATION
BIOMEDICAL INNOVATION & VENTURE CREATION
Name of the Student
Name of the University
Author note

1BIOMEDICAL INNOVATION & VENTURE CREATION
Executive summary:
The aim of the project is to evaluate a biomedical innovation and venture creation of a startup
biomedical manufacturing company name xyz Medicare. The target has been chosen as Saudi
Arabia. The report examined diverse business strategy include RAISON D’ETRE including
Mission Passion, Values; Market analysis including TAM, persona; VALUE CREATION
including Product Description, Problem, Quantified Value Proposition and others. This report
also examined product unit economics with the help COCA and LTV.

2BIOMEDICAL INNOVATION & VENTURE CREATION
Table of Content
RAISON D’ETRE
.........................................................................................................................................................6
1.1 Mission:.................................................................................................................................6
1.2 Passion:...............................................................................................................................6
1.3Values:....................................................................................................................................6
1.4 Initial Assets:.......................................................................................................................7
1.5 Initial Idea:...........................................................................................................................7
2 INITIAL MARKET......................................................................................................................7
2.1 Beachhead Market:................................................................................................................8
2.2 End User Profile:...................................................................................................................8
2.3 TAM:.....................................................................................................................................8
2.4 Persona:..................................................................................................................................9
2.5 10 Customers:......................................................................................................................10
3 VALUE CREATION..................................................................................................................10
3.1 Use Case:.............................................................................................................................11
3.2 Product Description:................................................................................................................11
3.3 Problem:...............................................................................................................................12
3.4 Quantified Value Proposition:.............................................................................................12

3BIOMEDICAL INNOVATION & VENTURE CREATION
4 COMPETITIVE ADVANTAGE............................................................................................13
4.1 Moats:..................................................................................................................................13
4.2 Core:....................................................................................................................................13
4.3 Competitive Positioning:.....................................................................................................14
5 CUSTOMER ACQUISITION....................................................................................................14
5.1 Decision Making Unit:........................................................................................................14
5.2 Customer Buying Process:...................................................................................................15
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..................................................................................................................20
6.8 Long Term COCA...............................................................................................................20

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7 SALES....................................................................................................................................21
7.1 Preferred Sales Channel:...................................................................................................21
7.2 Sales Funnel:........................................................................................................................21
7.3 Short Term Mix:.................................................................................................................22
7.4 Medium Term Mix:..............................................................................................................22
7.5 Long Term Mix:...............................................................................................................23
8 OVERALL ECONOMICS.........................................................................................................23
8.1 Estimated R&D Expenses:..................................................................................................23
8.2 Estimated G&A Expenses:..................................................................................................23
8.3 LTV/ COCA Ratio:..............................................................................................................24
9 DESIGN & BUILD....................................................................................................................24
9.1 Key Assumptions:................................................................................................................25
9.2 Assumptions Tests:..............................................................................................................25
9.3 MVBP:.................................................................................................................................25
9.4 Tracking Metrics:.................................................................................................................26
10 SCALING..............................................................................................................................27
10.1 Product Plan for Beachhead Market:..............................................................................27
10.2 Next Market:...................................................................................................................27
10.3 Product Plan beyond Beachhead Market:.......................................................................28
10.4 Follow-on TAM:................................................................................................................28

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11 VENTURE FORMATION.......................................................................................................28
11.1 Stakeholders:......................................................................................................................29
11.2 Define Roles & Responsibilities:.......................................................................................29
11.3 Assign Roles & Responsibilities:......................................................................................29
11.4 Engagements:.....................................................................................................................30
11.5 Corporate Filings:..............................................................................................................31
11.6 Formation Agreements:.....................................................................................................31
12 CAPITALIZATION.................................................................................................................31
12.1 Capital Need:.....................................................................................................................31
12.2 Use of Funds:.....................................................................................................................32
12.3 Offering Type:...................................................................................................................33
12.4 Pre-Money Valuation:.......................................................................................................33
12.5 Post-Money Valuation:......................................................................................................33
12.6 Investor Profile:.................................................................................................................34
12.7 Investor Persona:...............................................................................................................34
12.8 Ten Investors:....................................................................................................................35
References......................................................................................................................................36

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RAISON D’ETRE
1.1 Mission:
The mission of this Saudi Arabia based XYZ Medicare is to offer the various diagnosis
and patient care products worldwide. The mission of this company is to provide all necessary
patient medial high-quality equipment such as imaging equipment’s for diagnosis to the local,
national and international market for the growth of the company. The current mission is to
expand as imaging equipment of Diagnosis Company in the global market which can enhance
their productivity significantly.
1.2 Passion:
The idea of established a biomedicine manufacturing and supplier company in Saudi
Arabia emerged in 2017. The main idea is to expand the company in a diverse field of
biomedical such as diagnosis equipment’s, acute care equipment and other health care
equipment’s. Therefore, throughout the journey, the company aim to provide innovative
equipment’s of diagnosis in the international business market.
1.3Values:
The company, XYZ Medicare follows three core values which are contributing to
flourish the business in the global market. These values include research-based development of
equipment’s, uplifting customer satisfaction and empowering internal strength of the company.
The research-based product development enhanced the company to develop an innovative

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product to provide the patient centric care. On the other hand, uplifting customer engagement
would be done through providing excellent product for to gain the revenue of the company.
Lastly, empowering internal strength of the company would be done through building strong
workforce and strengthen the interpersonal skills.
1.4 Initial Assets:
As a new startup company, the initial asset of the XYZ Medicare Company is the capital
and workforce. Therefore, to start up the new market in the global market as a biomedical
company, both expandability and workforce will act as major assets. Apart from that, the highly
innovative products for the diagnosis and high market reputation because of innovation will act
as an asset when competing with the rival company.
1.5 Initial Idea:
The initial idea of the company is to offer an innovative set of products of the diagnosis
to the market where they can gain enough potential market and growth and profitability. Since
the initial idea is to offer high-quality health care imaging diagnosis products to the global
market, the company is required to choose a business market where low biomedical
manufactures are present.
2 INITIAL MARKET

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2.1 Beachhead Market:
Beachhead market defined as a market that focused on a narrow space of market where
the company cans imitative business with the potential benefits and fast revenue (Gardner &
Webster, 2016). Hence, in order to expand as a biomedical manufacturer in the Middle East, the
company is required to set their market in a place where expenses will be low compared to other
places and it would be easier to gain the profit in the shorter period of time (AlShathry, 2016).
Eventually, for starting a business in the Middle East country, Saudi Arabia will be the most
suitable place for potential marketing of biomedical products (Akintona, 2017). The prime
reason behind it is that in Saudi Arabia, a very limited number of the biomedical manufacturer
are present and eventually competition would be low and profit would be easier (Alharbi, Atkins
& Stanier, 2015).
2.2 End User Profile:
Xyz Medicare manufactures diverse imaging equipment for the diagnosis for giving care
which makes health care sectors, medical laboratories, rehabilitation as their direct consumers. In
other words, the end users for the chosen product would be patients, residents of rehab, health
professionals and other allied health staffs who would be able to use imaging technique without
complications (Kuratko, 2016).
2.3 TAM:
TAM or total addressable market focuses on the total market of business which involves
adjacent market, beachhead market, and extended market. Therefore, in this case the initial

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market would be Saudi Arabia; the adjacent market would be the other economically flourished
countries such as Egypt, Turkey and the United Arab Imarets (UAE) (Akintona, 2017). These
countries are chosen as a direct market because they lack well-known biomedical manufacture
(Aloulou, 2016).
2.4 Persona:
Persona in business industry is referred to the example of customer profile idea for the
business and would help to develop the customer experience (Eftekhari & Bogers, 2015). In this
case, a persona of Mr. A which is chosen persona that would be presented in the tabular format.
The persona profile would be following:
Background
Supply chain and procurement manager of the TSC
health care
Has job experience of 8 years, and 5
Married and have 2 offspring
Demographics
Male
Age: 39 -40 years
Dual HH income: 156,000 dollars
Suburban
Roles
To manage the Supply chain and purchasing
operation of the TSC health care
To conduct business deals with suppliers and
business partners
Goals
Identifying the most useful supplier for the high
quality healthcare equipment’s
Increasing the productivity of the company by
having innovative equipment
Enhance consumer engagement and market
reputation

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2.5 10 Customers:
Considering the primary customer segments the following 10 customers will be primary
buyer of XYZ Medicare in Saudi Arabia.
1. Public service health care
2. Health clinics of town
3. Government health clinic
4. Pathology laboratories
5. Non-government organization
6. Diagnosis laboratory
7. Private rehabilitation
8. Medical research institutes
9. Radiology services
10. Emergency sectors of health care
3 VALUE CREATION

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Awareness
Interest
Desire
Action
Personal Presentation
Promotion
Communication
Purchasing
3.1 Use Case:
The use case is applicable for deveining potently, customer experience while considering the
impact of the consumer’s personality, company services. For development of the use case in the
imaging equipment’s and health care products Awareness, interest, desire, and action model
would be used considering the current situation of Saudi Arabia (Sulphey & Alkahtani, 2017).
3.2 Product Description:
Xyz Medicare has a specialization in manly imaging technologies of diagnosis.
Therefore, in this case, their new venture in Saudi Arabia, the chose product segment is diagnosis
for the acute care where health professionals can use innovative imaging technology to diagnosis
patients (Burton, 2016). As a biomedical company, XYZ Medicare will offer various personal
and professional imaging technology for monitoring and diagnosis of the patients of clinic as
well as rehabilitation such as x ray machines, ECG for better diagnosis of patients. These

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technologies can be useful required in radiology department or for cancer screening. The
product will be:
1. Computed tomography
2. Magnetic resonance imaging and magnetic resonance angiography
3. Fluoroscopy
4. Mammography
5. X-ray
6. Emission tomography
7. ultrasound
3.3 Problem:
Since the logistics and transportation are not efficient in Saudi Arabia compared to other
conventional customers’ base of other biomedical company, the logistic and transpiration would
a huge problem for a startup company (Yusuf & Albanawi, 2016). Therefore, in the current
context, developing own logistic system and transportation facilities would assist to provide
accurate delivery services of the products to the customers. However, own logistics and
transportation system will have an additional cost which requires an effective strategy to reduce
the cost. Moreover, the lack of accurate supplier for raw materials is another major issue faced
by the company. It can be resolved by importing raw materials from other countries (Alkhaldi et
al., 2018).
3.4 Quantified Value Proposition:
Quantified value position explains how the advanced imaging products and post
purchasing services of XYZ Medicare will be able to solve the problem regarding the target
consumer (Aloulou, 2016). The value position of the company will be high-quality imaging

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equipment’s which would provide users of health care facilities with accurate screening and high
endurance of product for 2 years.
4 COMPETITIVE ADVANTAGE
4.1 Moats:
To keep the competitive advantages high of any company, Moats are an effective
economic strategy (Albasri, Mishra & Elbeltagi, 2016). In the current context, the company will
maintain a higher amount of assets compared to a competitor that enhance investment in the
industry to gain revenue faster. Since it is a new startup company, moats will help the company
to establish its position in the business market and recognize as one of the innovative biomedical
manufacturers in the global medical equipment manufacturing industry (Rehman & Ahmad
2017).
4.2 Core:
Innovation strengthened of the company, which promotes their uniqueness of product and
delivery quality in the field of business (McAdam, Crowley & Harrison, 2018). Therefore, the
core policy of the company is to invest money into the product and develops innovative products
through research and building an efficient team (Freiberg , Schwarz & Fath 2015). The basic
policy of the company is to focus on the innovation at the same time reducing the cost of the
products, increasing the networking for improvement of the client base.

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4.3 Competitive Positioning:
Since it is a new startup company of Saudi Arabia, in the global market it has many
competitors with enough financial backup, reputation, innovation, and strong supplier
relationship that take them to the top of the biomedical product manufacturing company (Nieva,
2015). Therefore as mentioned before, the values of the company, innovative approach, core
policy, and economic strategy would help the company to increase the competitive advantages
(Malecki, 2018). Moreover, competitive positioning strategy of the company is to provide high-
quality imaging technology affordable price in the area where biomedical product manufacturing
companies are less.
5 CUSTOMER ACQUISITION
5.1 Decision Making Unit:
customers Customers are the main pillar within an
organization generally responsible for purchasing
of the products. In this case the customers are the
healthcare organization, radiology department and
medical institution.
Gate-keepers Gatekeepers explored for information and
delivering recommendations for those decision-
makers for the growth of the company. In this

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case, raw material supplier are the gatekeepers for
the organization
Users Users are stakeholders who put the service or
product into process once the deal has been
settled. Patients are the users in this case
Initiators Initiators are the players who recognize that there is
a need to be satisfied or a problem to be solved
(Ilangovan, Mahanty & Sen, 2016).
Influencers Influencers are those who may have an influential
role in relation to the deciders.
Decision-makers Decision makers in a large organization certainly
are responsible for making the final deal or
decision. Manages of the healthcare homes are the
decision makers.
5.2 Customer Buying Process:
The six steps that will be followed by the customers, who are health care sectors of Saudi Arabia
while buying the products of the organization includes:
 Identification of issue
 Exploration for information
 Evolution of Alternatives
 Purchase choice
 Purchasing of product

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 Post purchasing evolution
5.3 Windows of Opportunity:
The crucial opportunity of the company would be the evidence established in Saudi
Arabia as a biomedical manufacturer where the health care sectors would be a direct customer
(AlShammari , Jennings & Williams, 2017). The prime reason behind it is that the lacks of
competition make it easier for the organization to attract potential customers through
campaigning and sponsorship.
5.4 Possible Triggers:
In order to flourish the business as a manufacturing company, the possible triggers are
sponsorship to the diagnosis centers or radiology institutes or department of health care to
promote the products of the company (Zahra & Wright, 2016). Online and offline promotion
through social media can be an effective strategy to gain the attention of the customer. Discount
can be a possible trigger which would attract a significant number of consumers to engage with
the company.
5.5 Regulatory Strategy:
• Monitoring the performance of each employee to ensure the best manufacturers of the device.
• Supervise the progression of manufacturing through collecting data (Acs, Szerb & Lloyd,
2017).
• Recruit quality control team and collecting data from them regularly

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• Collecting data from the risk assessment team for identifying the potential risk that can
reduce the revenue of the company (Stam, 2015).
• Monitoring manufactured product before providing to the customer
• Ensuring the efficient distribution of the product (Gelil, Howarth & Lanza, 2017).
• Gaining customer’s feedback to improve the quality of the manufactured product.
5.6 Reimbursement Strategy:
• Identification of the factors which can give major loss for the purpose of mitigation.
• Optimizing the network design of providers and performance of employees as well as
stakeholders (Sahu & Sharma, 2018).
• Enhancing IT functions and infrastructure of business intellect (Gaynor, M., Ho, K., & Town,
R.2015).
• Enhancing innovation of the manufacturing product and identification of the covering cost of
utilizing the new product.
• Communication with the providers to repay the loss.
6 PRODUCT UNIT ECONOMICS

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6.1 Business Model:
Biotech industries generally utilize three types of business model for flourishing business such as
vertical, integrated model and platform (Biygautane, Hodge, & Gerber, 2018). In the current
context, the integrated business model would be better since this model focuses on the financial
and operational resources and integrate all of the stakeholders in the business (Alomi et al,
2017). Therefore, it is a strategic intervention in procurement for financial growth.
6.2 Pricing:
In the biomedical industry, pricing strategies are segmented into four types of pricing premium
pricing, economic pricing, penetrate pricing, price skimming (Lackéus & Williams Middleton,
2015). Penetrating pricing is an effective strategy to gain faster growth in the business market
since this strategy aimed to penetrate the old market with new and innovative products for
gaining customer satisfaction and engagement.
6.3 Short Term LTV
The LTV refers the Lifetime Value of the customer, emphasise the contribution of a
customer in the growth of a particular business venture. The Customer Lifetime Value is
calculated by taking the Average Gloss Margin increment, Average Monthly Transaction
Amount and the Average customer lifespan in the unit of month. In Saudi Arabia, XYZ
Medicare will need at least gross margin increment by 6% within next 1 year will having average
transaction due to sales of 1500. For average 6 month of lifespan for each customer the
projected LTV will be

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Average Gross Margin
(EAGM)
Average Transaction
(AMT)
Customer Lifespan
(CL)
LTV
(EAGM x AMT x CL)
6% 1500 6 540
6.4 Short Term COCA:
The term COCA refers the Cost of Customer Accusation, which implies the expense
required to engage a customer within the purchasing procedure. For XYZ Medicare, the short
term COCA is also the initial target for next 1 year. It can be expected that the investment for
marketing and promotion will be 5000 and the estimated newly acquired customer will be 15.
Therefore, the Short Term COCA will be:
Investment for Marketing and promotion Newly Acquired Customers 5,000 COCA
5,000 15 15 333
6. 5 Medium Term LTV
In Saudi Arabia, the range of medium term LTV of XYZ medicare will be 1 year to 3
years. Therefore, the company will need at least gross margin increment by 6% within next 1 to
6 year with the average transaction of 2300 per month. Therefore, if the average lifespan of the
customer is 7 months, then the Short term LTV will be
Average Gross Margin
(EAGM)
Average Transaction
(AMT)
Customer Lifespan
(CL)
LTV
(EAGM x AMT x CL)
6% 2300 7 966

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6.6 Medium Term COCA
To calculate the medium term COCA, XYZ Medicare should consider the increased
amount of total loyal customers within next 1 year to 3 years. It can be expected that in medium
term, promotional investment will be 12000 and the estimated newly acquired customer will be
35. Therefore, Medium Term COCA will be
Investment for Marketing and promotion Newly Acquired Customers 6,000 COCA
6,000 25 25 240
6.7 Long Term LTV
In Saudi Arabia, the range of Long term LTV of XYZ Medicare will be 3 years to 6
years. Therefore, the company will need at least gross margin increment by 5% within next 3 to
6 year with the average transaction of 3200. Therefore, if the average lifespan of the customer is
8 months, then the Long term LTV will be
Average Gross Margin
(EAGM)
Average Transaction
(AMT)
Customer Lifespan
(CL)
LTV
(EAGM x AMT x CL)
5% 2500 8 1000
6.8 Long Term COCA
To calculate the Long term COCA, XYZ Medicare should consider the increased amount
of total loyal customers within next 3 years to 6 years. It can be expected, that long term
promotional investment will be 7000 and the estimated newly acquired customer will be 25.
Therefore, the Long Term COCA will be
Investment for Marketing and promotion Newly Acquired Customers 15,000 COCA

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8500 25 30 340
7 SALES
________________________________________
7.1 Preferred Sales Channel:
It is marketing stratify to introduce a product along with the services into the market with
the innovative way so that they were purchased by customers. Therefore, the channel can be
direct and indirect (Kaftan, Kelly & Platsch, 2017). The preferred sales channels would be a
direct approach of the product where services would be directly available to the customers
without the involvement of the intermediate dealer, like indirect sales channel. Therefore, low
cost, as well as a low-risk entry point, can be adopted.
7.2 Sales Funnel:
It is a framework which elaborates the narrowing of customer of firm’s bases sequentially
from the potential consumers of firm interested in the services to the customers who purchase the
product (Eftekhari & Bogers, 2015). Therefore, XYZ Medicare would follow an accurate sales
funnel by making the customers aware of the product. To make accurate sales funnel it is crucial
to examine the solution of other companies and taking decision accordingly (Alomi, 2015). To

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make actuate funnel, six steps strategy would be followed by the company to make it easily
available to the customers.
7.3 Short Term Mix:
This type of marketing strategy help to identify the factors involves the temporary
enhancement of the innovation and productivity of the company (Alomi et al., 2016). The short
term market mix is used for maximizing the income along with the preserving capital and
maximizing iniquity through more investments in a fixed amount (Kaftan, Kelly & Platsch,
2017). The short term strategy of this company would be a health campaign in the different
places of Saudi Arabia and it would be offline and online. To increase the business and promote
the company’s product health campaign using online and online media would beneficial strategy.
Consequently, the health campaign would assist to elaborate on the innovation of the product and
application of the products for living a healthy lifestyle.
7.4 Medium Term Mix:
It is an intermediate plan or pilot planning for gaining long term goals. Such medium
marketing strategies are a useful one when implementation would be done for long term goal
(Alomi & Zahran, 2016). The implementation of this strategy is usually taking 18 months for
faster growth of the company. In the current context, the implementation of digital advertisement
would be a medium-term mix which would allow the company to highlight the application of the
product for attracting a few potential customers.

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7.5 Long Term Mix:
These strategies are used in the organization for the growth if the organization for the
next 10 years. Since it is long term, different steps and strategies with specific timeline and
actions are integrated into the business. In this context, the long term market mix would be
selling the product with the help of the internet. The commercial transaction would be done with
the help of the internet since it would help to boost the business and sales count of the
manufactured product. The online transaction makes it easier to connect with the consumers and
share the details of the product of the customers.
8 OVERALL ECONOMICS
8.1 Estimated R&D Expenses:
Year Investment Research and Development Total asset after year ending
1st year 120,000 190,000
2nd Year 150,000 220,000
3rd Year 190,000 250,000
4th Year 210,000 350,000
5th Year 280,000 400,000
8.2 Estimated G&A Expenses:
Year Investment General Administration Total asset after year ending
1st year 22,000 190,000
2nd Year 35,000 220,000
3rd Year 42,000 250,000

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4th Year 55,000 350,000
5th Year 62,000 400,000
8.3 LTV/ COCA Ratio:
The Ratio of Life Time Value and the Cost of Customer Accusation will help the XYZ
Medicare to measure the feasibility of their current investment strategy and the alignment with
their current their investment in marketing and promotional activities is.
Short Term LTV COCA 540 LTV/COCA (approx)
540 333 333 2:1
Medium Term LTV COCA 966 LTV/COCA (approx)
966 240 240 4:1
Long Term LTV COCA 1000 LTV/COCA (approx)
1000 340 340 3:1
As per the data analysis, the initial ratio of LTV and COCA clearly indicates that in short
time LTV/COCA the investment in customer accusation is higher than it should be. The 4:1 ratio
clearly shows that the investment is very less than its ideal value in medium term LTV/COCA.
Finally, in long-term LTV/COCA ratio 3:1 clearly indicates that the investment for customer
acquisition and the lifetime values are balanced.
9 DESIGN & BUILD
________________________________________

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9.1 Key Assumptions:
Since it is a startup company, assumptions are required to move ahead with the growing
company and recognizing the potential threats of the company (Kaftan, Kelly & Platsch, 2017).
In the current context, the major issue can be faced by XYZ Medicare is the lack of supplier
because of the country like Saudi Arabia where limited supply chain of the biomedical industry
is situated. Therefore, the company has to invest a huge amount for the technologically
advanced raw material to manufacture a high-quality product. Moreover, transportation and the
internet in the Middle East region are the major issues and a considerate amount would be
invested in these factors. However, the positive assumption is the demand and reputation since
Middle East region lacks adequate biomedical companies. It would help to improve their
marketing strategy.
9.2 Assumptions Tests:
Testing assumptions of the company provide the best chance of evaluating the
assumptions in to limit the wastage of money and time (Kaftan, Kelly & Platsch, 2017). For a
startup company to be successful, few of these assumptions are needed to be true. Therefore, for
starting a new business in the Saudi Arabia, the company required to make an outline of the
method for identifying the assumptions and resolving these assumptions based on three
parameters: probability, severity, and resolutions.
9.3 MVBP:
A minimal variable business product is defined as a product with adequate features for
satisfying adequate target customers (Aloulou, 2016). These products are useful for collecting
the feedback of the customers for the further improvement of the product which would be

26BIOMEDICAL INNOVATION & VENTURE CREATION
launched in the market. The benefit of the initial product is that it required less investment for
monitoring the product that would further require for future development of the product. After
collecting the feedback from the customers, the company can design and customize the product
according to the needs, choice, and interest of the customers. Therefore, the company would
manufacture the product for potential and possible customer for grasping the product vision of
the customer from the initial product. To tract the feasibility of the products, the market demand
of the product need to consider along with potential risk. Therefore, for MVBP testing of the
XYZ Medicare Company would offer
1. X-ray
2. Ultrasound
3. Magnetic resonance imaging.
9.4 Tracking Metrics:
Criteria Weighting 2 -0.5 2 1 -0.5 Relative
Benefit
Priority
Relative measures
Business Components
Relative
ROI
Relative
Cost
Relative
Demand
Relative
Time
Relative
Risk
Resonance imaging 3 2 3 4 2 14 3
Magnetic resonance
angiography
3 3 1 3 2
8.5
8
Emission tomography 2 1 3 1 2 9.5 7
Ultrasound and Magnetic 3 2 4 3 2 15 1
Fluoroscopy 2 3 2 5 2 10.5 5
Haematology Systems 3 4 1 2 3 6.5 9
Computed tomography 3 2 2 3 2 11 4
X-ray 3 1 3 4 2 14.5 2
Mammography 2 1 3 1 1 10 6

27BIOMEDICAL INNOVATION & VENTURE CREATION
10 SCALING
________________________________________
10.1 Product Plan for Beachhead Market:
To recognize as one of the influential biomedical manufacturer in Saudi Arabia and the
adjacent area, the few biomedical equipment would be effective for enhancing the growth of the
company. According to the tracking matrix, X-ray, Ultrasound and Magnetic resonance imaging
would be the initial product. These products are the initial product because these are easily
accepted by consumers.
10.2 Next Market:
The choice of product for the next market would be based on the compatibility between
the product and the resources available along with the market itself. After presenting the product
successfully in Saudi Arabia, the company would take the market extended to develop other
product such as the computed tomography, fluoroscopy and Mammography and Emission
tomography in the adjacent Middle East countries.

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10.3 Product Plan beyond Beachhead Market:
The product plan for beyond the market of Saudi Arabia would focus on the peripheral
health care users. Therefore, considering the fact of the qualities of health care equipment
offered by the organization to consumers is higher compared to its competitors, especially in the
Middle East, health care. Therefore, the product beyond market would be Magnetic resonance
angiography, Hematology Systems, and Stratus CS 200 Acute Care Diagnostic System.
10.4 Follow-on TAM:
Follow on TAM refers to the term which is typically used to refer the revenue
opportunity available for the product along with services for the next phase of market growth.
Follow on TAM would help XYZ Medicare to assess the business opportunity for the product by
service the quick matrices. Therefore, due to an increase in health care issues in the majority of
the developing countries of the Middle East, the total addressed market would be highest in the
Easter part. Therefore, Asian countries such as china, Pakistan, Iran , Afghanistan, Iraq would be
the follow on total addressable market for slow and steady expansion of the company. The
company expected to gain 35% of the growth as a biomedical manufacturing company
compared to the global market.
11 VENTURE FORMATION
________________________________________

29BIOMEDICAL INNOVATION & VENTURE CREATION
11.1 Stakeholders:
Stakeholder of an organization referred to the individuals who influence along with
impacted by the organization (Aloulou, 2016). Since it is a biomedical manufacturing company
which involves the area of digitization and automation, the stakeholders would be the director,
employees, supplier, distributor, the community providing sources and the lawyer of the firm.
They will assist the company to gain the revenue and successfully engage the loyal customers.
11.2 Define Roles & Responsibilities:
Director: supervising the company for gaining revenue through highest manufacturing
Employees: involvement in manufacturing and quality assurance of the product.
Supplier: to supply the product to different distributors
Distributors: to distribute the product in different health care sectors
Community providing resources: to provide the raw material for manufacturing.
Law firm: to involve in the legal issues and advocacy for the firm for supporting manufacturing.
11.3 Assign Roles & Responsibilities:
General Manager: Supervising and managing all the departments for superiors manufacturing.
Human Resource: recruiting workforces and ensuring the health and safety of each of them
Administrator : to facilitate the technology and advancement
Finance and accounts executive: measuring performance, estimating benefits and publishing
Sales and Marketing Manager Budget: to conduct the market research and improving market
share and reputation.

30BIOMEDICAL INNOVATION & VENTURE CREATION
Logistic manager: to supervise inbound and outbound manufacturing chain
Employees: to involve in manufacture and focus on the quality if the manufacture in sustainable
environment.
Legal advisor: keep legal compliance for all aspect of business.
11.4 Engagements:
It depends on the power and interest of the stakeholders and pattern of involvement. Therefore,
in the engagement of the stakeholders would following:
Stakeholders Engagement Power Interest
Director/ owner Internal Primary Very High High
Management Internal Primary High Moderate
Suppliers External Secondary High Low
Employees Internal Primary Moderate Moderate
Customers External Primary Low High
Governments External Tertiary High Low
Community External Secondary Moderate Moderate

31BIOMEDICAL INNOVATION & VENTURE CREATION
11.5 Corporate Filings:
11.6 Formation Agreements:
The agreement would be formed between manager and community providing resources where
pricing, term and conditions and laws would be mentioned. The similar kind of contract would
be formed between employees and manager with similar elements. The next contract would be
formed between supplier and distributor with similar elements. The last contract would be made
between distributor and hospital management with a similar element.
12 CAPITALIZATION
12.1 Capital Need:
Current and Potential Assets
Initial Revenue 1,500,000
Account Receivable or Loan 16,500,000

32BIOMEDICAL INNOVATION & VENTURE CREATION
Investors contribution 30,000,000
TOTAL 48,000,000
Current and Potential Liabilities
Payable Accounts 15,000,000
Short term Borrowings 50,000
Additional Miscellaneous Liabilities 5,850,000
TOTAL 25,900,000
Working Capital 19,000,000
12.2 Use of Funds:
Operational components Unit Per Unit Cost Total expense
Manufacturing 12 35000 420000
Logistics and Transportation 5 18000 90000
Human Capital investment 60 5000 300000
IT and Communication 15 1500 22500
Research and Development 5 20000 100000
General and Administration 7 12000 84000
Marketing and Promotion 10 15000 150000
Miscellaneous expenditure 560000 560000

33BIOMEDICAL INNOVATION & VENTURE CREATION
TOTAL 1726500
12.3 Offering Type:
1. Computed tomography
2. magnetic resonance imaging and magnetic resonance angiography
3. fluoroscopy
4. Mammography
5. X-ray
6. Emission tomography
7. Ultrasound
8. Free shipping of product
9. Discount of product
12.4 Pre-Money Valuation:
Value Percent
Entrepreneur 3,000,000 66.66%
Investors 1,500,000 33.33%
Total 4,500,000 100%
12.5 Post-Money Valuation:
Value Percent
Entrepreneur 2,500,000 62.5%
Investors 1,500,000 37.5%

34BIOMEDICAL INNOVATION & VENTURE CREATION
Total 4,000,000 100%
12.6 Investor Profile:
The investor profile is defined as an imaginary profile of an ideal consumers of organization.
Considering the fact that XYZ Medicare want to conduct a business I the field of biomedical
manufacturing industry, the following table will represent a persona Mr. F , the operational
director of IYF company.
12.7 Investor Persona:
Background
Operational Director of the IYF organization
Working at the IYF company for more than 8 years
Demographics
Male
Age: 30-45 years
Dual HH income: N/A
Urban
Roles
To manage the administrative issues associated
with donation.
To conduct venture sharing
To analyses the market in terms of internal as well
as external environment.
Goals
To select suitable suppliers for the IYF company.
Facilitate the CSR of the company.
Facilitate loyalty of the partners and consumers.

35BIOMEDICAL INNOVATION & VENTURE CREATION
12.8 Ten Investors:
1. Public service health care
2. Health clinics of town
3. Government health clinic
4. Pathology laboratories
5. Non-government organization
6. Diagnosis laboratory
7. Private rehabilitation
8. Medical research institutes
9. Radiology services
10. Emergency sectors of health care

36BIOMEDICAL INNOVATION & VENTURE CREATION
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