Biomedical Innovation & Venture Creation: Case Study of GE Healthcare in Saudi Arabia

This report examines the Biomedical Innovation and Venture creation of GE Healthcare in Saudi Arabia. It analyses various 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
Case Study: GE Healthcare

2BIOMEDICAL INNOVATION & VENTURE CREATION
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 GE Healthcare. 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.

3BIOMEDICAL INNOVATION & VENTURE CREATION
Table of Content
1 RAISON D’ETRE...................................................................................................................7
1.1 Mission:.......................................................................................................................7
1.2 Passion:............................................................................................................................7
1.3 Values:..............................................................................................................................7
1.4 Initial Assets:....................................................................................................................8
1.5 Initial Idea:.......................................................................................................................8
2 INITIAL MARKET................................................................................................................9
2.1 Beachhead Market............................................................................................................9
2.2 End User Profile:..............................................................................................................9
2.3 TAM:................................................................................................................................9
2.4 Persona:..........................................................................................................................10
2.5 10 Customers:.................................................................................................................11
3 VALUE CREATION............................................................................................................11
3.1 Use Case:........................................................................................................................11
3.2 Product Description:.......................................................................................................13
3.3 Problem:.........................................................................................................................14
3.4 Quantified Value Proposition:........................................................................................14
4 COMPETITIVE ADVANTAGE..........................................................................................15
4.1 Moats:.............................................................................................................................15
4.2 Core:...............................................................................................................................15

4BIOMEDICAL INNOVATION & VENTURE CREATION
4.3 Competitive Positioning:................................................................................................16
5 CUSTOMER ACQUISITION 500.......................................................................................16
5.1 Decision Making Unit:...................................................................................................16
5.2 Customer Buying Process:.............................................................................................17
5.3 Windows of Opportunity:..............................................................................................18
5.4 Possible Triggers:...........................................................................................................19
5.5 Regulatory Strategy:.......................................................................................................19
5.6 Reimbursement Strategy:...............................................................................................20
6 PRODUCT UNIT ECONOMICS.........................................................................................20
6.1 Business Model:.............................................................................................................20
6.2 Pricing:...........................................................................................................................21
6.3 Short Term LTV:............................................................................................................21
6.4 Short Term COCA:........................................................................................................22
6.5 Medium Term LTV:.......................................................................................................22
6.6 Medium Term COCA:...................................................................................................23
6.7 Long Term LTV:............................................................................................................23
6.8 Long Term COCA:........................................................................................................24
7 SALES...................................................................................................................................24
7.1 Preferred Sales Channel:................................................................................................24
7.2 Sales Funnel:..................................................................................................................25
7.3 Short Term Mix:.............................................................................................................25

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7.4 Medium Term Mix:........................................................................................................25
7.5 Long Term Mix:.............................................................................................................25
8 OVERALL ECONOMICS....................................................................................................26
8.1 Estimated R&D Expenses:.............................................................................................26
8.2 Estimated G&A Expenses:.............................................................................................26
8.3 LTV/ COCA Ratio:........................................................................................................27
9 DESIGN & BUILD...............................................................................................................27
9.1 Key Assumptions:..........................................................................................................27
9.2 Assumptions Tests:........................................................................................................27
9.3 MVBP:...........................................................................................................................28
9.4 Tracking Metrics:...........................................................................................................28
10 SCALING...........................................................................................................................29
10.1 Product Plan for Beachhead Market:...........................................................................29
10.2 Next Market:................................................................................................................30
10.3 Product Plan Beyond Beachhead Market:....................................................................30
10.4 Follow-on TAM:..........................................................................................................30
11 VENTURE FORMATION.................................................................................................31
11.1 Stakeholders:................................................................................................................31
11.2 Define Roles & Responsibilities:.................................................................................31
11.3 Assign Roles & Responsibilities:.................................................................................32
11.4 Engagements:...............................................................................................................32

6BIOMEDICAL INNOVATION & VENTURE CREATION
11.5 Corporate Filings:.........................................................................................................33
11.6 Formation Agreements:................................................................................................33
12 CAPITALIZATION............................................................................................................33
12.1 Capital Need:................................................................................................................33
12.2 Use of Funds:...............................................................................................................34
12.3 Offering Type:..............................................................................................................35
12.4 Pre-Money Valuation:..................................................................................................35
12.5 Post-Money Valuation:................................................................................................35
12.6 Investor Profile:............................................................................................................35
12.7 Investor Persona:..........................................................................................................35
12.8 Ten Investors:...............................................................................................................36
References:...............................................................................................................................37

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1 RAISON D’ETRE
1.1 Mission:
Being a biomedical company the mission statement of GE Healthcare is to provide
high quality healthcare equipment and technological advancement to their partners in order to
improve the health and wellbeing of the society. As per to the portfolio of GE Healthcare, the
aim of their service providing is to offer the healthcare contributors health management and
Value-Based healthcare components (Gehealthcare.com, 2017). Currently GE Healthcare are
planning for expanding across the other part of the globe while providing quality products
and services.
1.2 Passion:
The passion of this Biomechanical company is to minimise the health issues
throughout the world through provisioning appropriate diagnosis, health treatment and
laboratory equipments. Along with the healthcare equipments, GE Healthcare also offers
various data processing and management platform and inbuilt systems to confirm that their
partners the healthcare organisations and service providers are able to provide proper
integrated service to the care receivers and patients.
1.3 Values:
GE Healthcare has three major values that have supported the organisation to grow up
to current point. The core values of GE Healthcare are the partnership ethics, innovation and
workforce relation. For GE Healthcare the partnership ethics refers the capability to provide
proper products to the partners in lowest price and heist quality through a transparent
business process. The innovation is another key component that ensures the ability to making
changes while incorporating new facilities to the old mechanism that would be feasible,
attainable and realistic (Gehealthcare.com, 2017). GE Healthcare defines their manpower as

8BIOMEDICAL INNOVATION & VENTURE CREATION
the core competence of their organisation. Hence, human resource management and their
satisfaction as well as engagement are very critical factors for them.
1.4 Initial Assets:
The initial asset or primary asset of this company is its market value, which has been
expanding across the wester globe and the American continent. Along with their emerging
consumer base another primary and initial asset is their quality of products. GE Healthcare
focuses on their quality along with increasing their product diversity, which has have them
the market reputation that they currently have (Barr, 2016). Workforce is very essential asset
of GE Healthcare as well, through which they are achieving their targets with ease. However,
due to rapid expansion their financial assets are not very high as compared to the other world
famous biomedical companies.
1.5 Initial Idea:
GE Healthcare started it journey in the year 1893 as a small electronic equipments
company, which head quarter was in Chicago, USA (Gehealthcare.com, 2017). The founders
C.F. Samms and J.B. Wantz founded GE Healthcare always aimed to innovative market
penetration through providing valuable new ideas to the healthcare industry. In 19th century
the company hugely merchandised the X-ray machines where the radio electric pulse was
with higher efficiency than any other brand over the glove (Gehealthcare.com, 2017). After
that GE Healthcare has created many valuable products that consists of electrometrical
equipments a well as medical technologies. The initial and currently the mother company is
GE Healthcare AG.

9BIOMEDICAL INNOVATION & VENTURE CREATION
2 INITIAL MARKET
2.1 Beachhead Market
As a healthcare equipment provider GE Healthcare stared their base form USA and
expanded across the American continent quickly. Therefore, the beachhead market of GE
Healthcare is healthcare industries of America. However, currently they are planning to
expand throughout Middle East. Henceforth, currently their beachhead market is Middle East.
Saudi Arabia has a fast growing medical industry; therefore it will be the most profitable
beachhead market for GE Healthcare. The reusable diagnosis equipments such as X-ray,
MRI, CT scan, has high price margin in this region. Therefore, making Saudi Arabia as
Beachhead Market will be beneficial for GE Healthcare in many ways.
2.2 End User Profile:
The user and the terminal care receivers of the reusable medical diagnosis equipments
will be the end user of GE Healthcare in the healthcare industry of Saudi Arabia. The
reusable equipments are used in clinical diagnosis, surgical non-disposables and other similar
materials which are directly used for either clinical assessment or treatment purposes.
Therefore, the end users of the reusable technical equipments provide by the GE Healthcare
will be the healthcare service receivers, patients and employees or healthcare staffs of Saudi
Arabia (Acs, et al., 2016). Besides, there is not demographical stipulation for end user profile,
they can be from any financial, cultural background and also vary to different age groups.
2.3 TAM:
TAM or Total Accusable Market is the total market size that can be accessed by any
business for generating revenue through direct or indirect interventions. Examining the TAM
will give opportunity to a Biomedical company to assess their product selection and develop
a quick metric for underlying potential focus points. For GE Healthcare, investing in Saudi

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Arabia will help expanding their Total Accessible Market across other developing countries
of Middle East namely UAE, Lebanon, Oman and others. As per the estimation the
biomedical market will capture the largest area of Middle East within 2020 while generating
the revenue of 12.3 billion dollars (Al Shammari et al., 2016). According to the market
research the market growth of non-disposable and reusable medical equipments will grow by
15 percent in next 2 to 3 years.
2.4 Persona:
Before marketing any product analysing the persona of potential consumers or buyers
is essential, that gives the ability to examine the potential establishment of new product plan
and marketing strategy. For GE Healthcare identifying a persona for Saudi Arabian market is
crucial. Considering the fact that the GE Healthcare is conducting a Business to Business
deal, in the following table, a persona of Mr. A, the operational manager of ABC
organization has been conducted.
Background
 Logistics and Supply chain manager of
the ABC healthcare organization
 Having job experience of 15 years and
tenure employee of ABC healthcare of 8
years
 Married and have 2 offspring
Demographics
 Male
 Age: 40-45 years
 Dual HH income: 140,000 dollards
 Suburban
Roles
 To manage the Supply chain and
purchasing operation of the ABC
healthcare organisation
 To conduct business deals with suppliers
and business partners
 To analyse the supplier availability and
Goals
 Identifying the most beneficial supplier
for the high quality healthcare
equipments
 Increasing the profitability of the
company through having proper
equipments

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market for choosing the most beneficial
suppliers
 Improve consumer loyalty and market
reputation
2.5 10 Customers:
 Public service healthcare organisation
 Private healthcare organisation
 Non-Government Organisation
 Private rehabilitation home
 Residential care organisation
 Vet nary health care homes
 Sport organizations
 Emergency and paramedic services
 National and international distributors
3 VALUE CREATION
3.1 Use Case:
Through Use case GE Healthcare to estimate the experience of their potential
customers, which will help to develop their product presentation accordingly. Awareness,
Interest, Desire, Action or AIDA mode is a funnel structure of product and service delivering

Awareness
Interest
Desire
Action
Personal Presentation
Promotion
Communication
Purchasing
12BIOMEDICAL INNOVATION & VENTURE CREATION
process.
From the AIDA diagram GE Healthcare can also plan their Use case for non-disposable,
reusable products involving their potential users. From the following diagram the customer
experience before, during and after purchasing can be imagined, which is the purpose of
developing Use case model is.

13BIOMEDICAL INNOVATION & VENTURE CREATION
Customer/Partner X
Marketing and
Promotion of reusable
products
Selling and
merchandising process
Quality of the
Products
Post purchasing
service
Feedback collection and
reviewing
Developing Interest
Influencing behaviour
Reconstructing experience
Evaluating Customer’s opinions
3.2 Product Description:
GE Healthcare has their specialisation in clinical imaging, surgery equipments,
healthcare database applications and robotics. According to their new products and service
list the available products they can offer are:
 Advanced Imaging Angiography
 MRI
 Sliding Gantry CT

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 X-Ray Machines
 Dedicated Cardiac System
 Automation and Advanced Robotics
 Blood Gas Systems
 Integrated Chemistry and Immunoassay Systems
 Dedicated Cardiac System
 Hematology Systems
 Stratus CS 200 Acute Care Diagnostic System
 Stratus CS Acute Care Diagnostic System
 DCA Vantage Analyzer
 Digital Morphology Systems
3.3 Problem:
In Middle East the major problem they will possibly experience is lack of suppliers of
raw materials, such as electronic, electrical gadgets, mechanical equipments, automation
system and others. Because of the poorly available supply chain the overall costing of the
product will be affected that eventually will affect the pricing strategy of GE Healthcare.
Lack of control over price can play as a huge disadvantage of this biomedical and medical
equipment manufacturer company (Alkhamis et al., 2017). On the other hand, poor traffic
management and complex terrain for effective transportation will also hamper the Logistics
management of GE Healthcare as well. The huge number of distributors will take advantage
of it while distributing the products of other companies in comparatively lower price.
3.4 Quantified Value Proposition:
Quantified Value Proportion will allow GE Healthcare to address and resolve all the
issues related to products, which can be developed during the product selling and service

15BIOMEDICAL INNOVATION & VENTURE CREATION
providing operation within their target consumer base. Effective communication regular
feedback monitoring are the only solution to the possible issues. At the same time GE
Healthcare can extend their free maintenance service providing offer from 3 to 5 years. For
some premium customers they can even extend this service for lifetime.
4 COMPETITIVE ADVANTAGE
4.1 Moats:
Moat emphasises the strategic business process to increase the competitive advantages
for any chosen market. In Saudi Arabia GE Healthcare can configure their Moats through
allowing customisable product developing. It will allow the customers to reconstruct the
installation platform of the biomedical products as per their infrastructure. Currently in Saudi
Arabia healthcare organisation is not getting this kind of facilities while the demand for
customisability in continuously increasing (AlShammari, Jennings & Williams, 2017).
Through this process, GE Healthcare can also increase their diversity of products without
compromising the total production cycle time through parallel production system.
4.2 Core:
Core strategy refers the structural or fundamental strategic choice of any business that
will be constant for any changes of additional business strategies. From the early phase of the
expansion, the quality leadership strategy was the major weapon for GE Healthcare, which
can be also very useful for the target market of Saudi Arabia. Currently the growth of the
healthcare procedure in Saudi Arabia is not considerably high. Hence, narrowing the possible
selection while evolving the quality and service, will be the core strategy of GE Healthcare.
Apart, from that making good relationship with local labour market through developing high
culturally competent business environment will be very beneficial for GE Healthcare
(Cooper, 2017).

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4.3 Competitive Positioning:
In terms of position the regulatory variables for biomedical industry of Saudi Arabia
will be the Price and the Quality. Because of complex and ever expanding distributors in
Saudi Arabia the potential customers are already receiving enough convenient products for
the services. Therefore, to empower the competitive advantages GE Healthcare need to focus
on cost leadership strategy (Eftekhari & Bogers, 2015). Using cost leadership strategy will
help GE Healthcare to restrict the upper bandwidth of production cost without compromising
the quality of the products. Therefore in price quality competitive positioning GE Healthcare
will put their products at low price high quality coordinates.
5 CUSTOMER ACQUISITION 500
5.1 Decision Making Unit:
Decision making unit refers the stakeholders group of any business that directly regulate or
support the decision making process through positive involvement. The five major decision
making units of GE Healthcare are Buyers, Gate-keepers, Users, Initiators, Influencers and
Decision makers.
Buyers Gate Keepers
The buyers of biomedical
equipments will be the
healthcare organisations of
Saudi Arabia. They regulates
the decision through regulating
demands
Suppliers of raw materials and
infrastructural equipments of
GE Healthcare will be the
Gatekeepers of the business.
Initiators Influencers
The market researchers and
report forecasting organisations
will be the initiators of the
biomedical business of Saudi
Arabia
The distributors and the
advertisement medias will be
the influences of the business of
GE Healthcare in the market of
Saudi Arabia

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Decision makers
The managers, directors and
owners are the direct decision
makers for any business
management process of GE
Healthcare.
5.2 Customer Buying Process:
Consumer buying process is the procedure through which the purchasing operation of
any potential buyers will be executed. The purchasing process includes the pre-purchasing,
purchasing and post purchasing experiences of the customers in the healthcare industry of
Saudi Arabia.

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Marketing and
Promotion of ventilation
products
Optional or
Alternatives
Product Quality
Post purchasing
service
Consumer relationship
Developing needs
Searching for information
Purchasing Decision Making
Post purchasing experience
Purchasing Experience
Selling process
Personal and social
influences
Expectations
Developing new
expectation and
experience
Customer Experience External FactorsInternal Factors
5.3 Windows of Opportunity:
In the healthcare market of Saudi Arabia the lack of biomedical equipment
manufacturer is highly visible. The Business to Business healthcare equipment dealing is
conducting through the agreement between the healthcare organisations and the distributors.
Even after considering the strong distribution networks of the biomedical equipment
distributors, lack of direct manufacturer and supplier will be still an opportunity for a
manufacturing company like GE Healthcare (Enteshari & Varshosaz, 2018). Besides, starting

19BIOMEDICAL INNOVATION & VENTURE CREATION
the business in Saudi Arabia will also allow the company to expand their market base by
improving the communication.
5.4 Possible Triggers:
To use a potential trigger GE Healthcare ha to find a potential way of attracting a
huge section of the market at initial market entree. In this situation promotional technique
needs to be more comprehensive in terms of direct advertisement and indirect promotion. As
indirect promotion GE Healthcare can sponsor many healthcare activities such as NGO based
operation, free heath check-up, Blood donation camp, dente check-up and other non
profitable sponsorship could be good trigger of the healthcare industry of Saudi Arabia
(Freiberg, Schwarz & Fath, 2015). It will trigger not only the direct customers and potential
business partners, but can also influence the potential end users of the healthcare industry
such as patients, caregivers and healthcare residents.
5.5 Regulatory Strategy:
Proper regulatory strategy will enable GE Healthcare to regulate their different
business operations through efficient monitoring and controlling process. The regulatory
strategy of GE Healthcare includes the production cycle, supply chain management, logistics,
human resource management and legal compliances. The major regulatory strategies of GE
Healthcare in Saudi Arabia will be:
 Monitoring employees to ensures the best manufacturing devices
 Collecting data from employees to supervise the progression of manufacturing
 Collecting data from the quality control team to identify the quality of the manufactured
product (Gaynor, Ho & Town, 2015)
 Collecting data from the risk assessment team for addressing risk factors in the company
 Monitoring manufactured product supplies from suppliers

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 Monitoring the activities of distributors to distribute the product
 Gathering resources from the comminute efficiently
5.6 Reimbursement Strategy:
Reimbursement strategies will include the strategic infrastructure management, development
and maintenance operation of GE Healthcare. Therefore the reimbursement strategy of GE
Healthcare will include:
 Identifying the factors that lead to the loss an invent a way to mitigate it
 Accelerate shifting the financial risk to provide for aligning the payer's providers
incentives
 optimize the provider's network design and performance of the employees and other
stakeholders
 Supporting enhanced IT and business intelligence infrastructure (Ilangovan, Mahanty &
Sen, 2016)
 Support the innovation. The key challenge, in this case, is to identify the point at which
the covering cost of utilizing new technologies and relate it to the product
 Integrate with providers to repay the loss.
6 PRODUCT UNIT ECONOMICS
6.1 Business Model:
Many business models are available that can be operated by GE Healthcare namely
vertical business model, platform model, heath integrated model, reusable production model,
disposable product model and cost leadership model. Lack of direct manufacturer of
healthcare equipments has reduced the healthcare integrity in the biomedical industry of
Saudi Arabia. Therefore, making health integrated business model will be the most beneficial

21BIOMEDICAL INNOVATION & VENTURE CREATION
model for GE Healthcare. It will allow the company to manufacture their products in a
advanced way that can be used as a plug and play device in a healthcare facility if it would be
installed in a same platform (Järvinen & Taiminen, 2016). Therefore, it will increase the
demand of the products produced by GE Healthcare exponentially.
6.2 Pricing:
Because of complex and ever expanding distributors in Saudi Arabia the potential
customers are already receiving enough convenient products for the services. Therefore, to
empower the competitive advantages GE Healthcare need to focus on cost leadership
strategy. Using cost leadership strategy will help GE Healthcare to restrict the upper
bandwidth of production cost without compromising the quality of the products. Therefore
the resultant price of the products will be lower compared to the other international
biomedical brands. At the same time the pricing strategy will also include the premium
pricing approach that will provide additional benefit to the premium customers.
6.3 Short Term LTV:
The Life Time Value is also known as the Customer Life Value, which is the total
contribution of every customers within the revenue of the organisation. Therefore, the gross
revenue growth, average transaction of each month and the customer lifespan by month will
be considered. In Saudi Arabian Healthcare industry it can be expected that the average gross
margin of GE Healthcare will be increased by 6%, where the initial value transaction will be
3200. If the average lifespan of a customer be 5 months, the LTV will be
Average Gross Margin
(EAGM)
Average Transaction
(AMT)
Customer Lifespan
(CL)
LTV
(EAGM x AMT x CL)
6% 3200 5 960

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The LTV ratio of short term is 960 which indicates that the Transaction amount of the
company is approximately double of the Life Time Value of the each customer. Therefore, in
this phase the market penetration power will be also weak because of the low LTV margin
6.4 Short Term COCA:
The short term COCA is the initial Cost of Consumer Accusation, which implies the
cost or investment GE Healthcare needs to do for gaining 1 customer. The initial target of GE
Healthcare will be gaining at least 35 new customers spending 18000 for marketing and
promotion. Therefore the short term COCA GE Healthcare will be
Investment for Marketing and promotion Newly Acquired Customers 18,000 COCA
18,000 35 35 514
Therefore, as per the COCA ratio the average investment for acquiring existing level of
consumer loyalty the company has to estimate 5.14 as their promotional and marketing
investment.
6.5 Medium Term LTV:
In Saudi Arabian Healthcare industry it can be expected that the average gross margin
of GE Healthcare will be increased by 7% as a midterm target, where the value transaction
will be 3500. If the average lifespan of a customer be 7 months, the medium term LTV will
be
Average Gross Margin
(EAGM)
Average Transaction
(AMT)
Customer Lifespan
(CL)
LTV
(EAGM x AMT x CL)
7% 3500 7 1715

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The LTV ratio of short term is 1715 which indicates that the Transaction amount of
the company is lower than the Life Time Value of the each customer. Therefore, in this phase
the market penetration power will be very strong because of the high LTV margin
6.6 Medium Term COCA:
The Medium term COCA is the middle term Cost of Consumer Accusation, for
gaining 1 customer. The midterm target of GE Healthcare will be gaining at least 40 new
customers spending only 12000 for marketing and promotion. Therefore the short term
COCA GE Healthcare will be
Investment for Marketing and promotion Newly Acquired Customers 12,000 COCA
12,000 40 40 300
Therefore, as per the COCA ratio the average investment for acquiring existing level
of consumer loyalty the company has to estimate 3 as their promotional and marketing
investment.
6.7 Long Term LTV:
In Saudi Arabian Healthcare industry it can be expected that in long term the average
gross margin of GE Healthcare will be increased by 8%, where the initial value transaction
will be 3200. If the average lifespan of a customer be 10 months, the LTV will be
Average Gross Margin
(EAGM)
Average Transaction
(AMT)
Customer Lifespan
(CL)
LTV
(EAGM x AMT x CL)
8% 3200 10 2560

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The LTV ratio of long term is 2560 which indicates that the Transaction amount of
the company is approximately equal to the Life Time Value of the each customer. Therefore,
in this phase the market penetration power will be also balanced because of the estimated
LTV margin.
6.8 Long Term COCA:
The long term COCA is the initial Cost of Consumer Accusation, which implies the
cost or investment GE Healthcare needs to do for gaining 1 customer. The long term target of
GE Healthcare will be gaining at least 35 new customers spending 25000 for marketing and
promotion. Therefore the short term COCA GE Healthcare will be
Investment for Marketing and promotion Newly Acquired Customers 25,000 COCA
25,000 32 32 781
Therefore, as per the COCA ratio the average investment for acquiring existing level
of consumer loyalty the company has to estimate 7.81 as their long term promotional and
marketing investment.
7 SALES
7.1 Preferred Sales Channel:
To penetrate the biomedical industry of Saudi Arabia, GE Healthcare needs to
consider that currently the potential customers are getting international level healthcare
equipments from the distributors. Therefore, depending only on distributors will not be

25BIOMEDICAL INNOVATION & VENTURE CREATION
beneficial for GE Healthcare. Therefore, GE Healthcare need to develop their own
distribution chain through which they can distribute their products with high efficiency while
making the specialisation of their products independent and attractive to the healthcare
market as well (Kaftan, Kelly & Platsch, 2017).
7.2 Sales Funnel:
GE Healthcare will follow a proper sales funnel which involves making the customers
aware of the product, making the product sales intriguing for customers to buy. It also
involves evaluation with solutions of other companies, followed by taking a proper decision
finally followed by purchasing the product. The 5 major components of sales funnel of GE
Healthcare will include the Awareness, Discovery, Evaluation, Intent, Purchase and Loyalty.
7.3 Short Term Mix:
Short term mix defines the initial marketing strategy of any organisation. For GE
Healthcare the short term mix should be the sponsorship based promotions where they needs
to sponsor NGO based activities and charity works.
7.4 Medium Term Mix:
Medium Term Mix will help GE Healthcare to plan in order to achieve the
long term goals. The usual tenure for the implementation of medium term plans is 18 months.
Medium term marketing mixes used in GE Healthcare involve implementation of unique
digital advertisements. Such advertisement should highlight the purpose and use of the
product in a different way in order to gain attention from the common masses.
7.5 Long Term Mix:
The long term strategic marketing goals emphasize on the growth opportunities which
will be achieved in the next 10 years. The long-term marketing mix for GE Healthcare

26BIOMEDICAL INNOVATION & VENTURE CREATION
includes its involvement in the field of e-commerce. It would focus on the selling of products
online with the help of the internet. Commercial transactions if facilitated through the internet
will boost the overall business strategies and sales count of the given product.
8 OVERALL ECONOMICS
8.1 Estimated R&D Expenses:
Year Investment Research and Development Total asset after year ending
1st year 420,000 490,000
2nd Year 320,000 550,000
3rd Year 450,000 620,000
4th Year 600,000 750,000
5th Year 520,000 820,000
8.2 Estimated G&A Expenses:
Year Investment Research and Development Total asset after year ending
1st year 52,000 450,000
2nd Year 75,000 650,000
3rd Year 62,000 720,000
4th Year 80,000 880,000
5th Year 90,000 960,000

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8.3 LTV/ COCA Ratio:
The Ratio of Life Time Value and the Cost of Customer Accusation will help GE
Healthcare to measure how feasible their investment in marketing and promotional activities
is. In this case, the ration of LTV and COCA will be also examined through 3 separate
timelines or phases.
Short Term LTV COCA 960 LTV/COCA (approx)
960 514 514 2:1
Medium Term LTV COCA 1715 LTV/COCA (approx)
1715 300 300 5:1
Long Term LTV COCA 2560 LTV/COCA (approx)
2560 781 781 3:1
9 DESIGN & BUILD
9.1 Key Assumptions:
Business, in most cases, occurs in an unsure setting and assumptions are necessary to
move ahead with stratagem. The major issue that Sidemen could face includes lack of
efficient suppliers because of the poor production chain of the Biomechanical manufacturing
industry (Khaled et al., 2015). Apart from that, transportation as well as internet facilities
would be another major risk for the most of the Middle East region. However, one of the
positive assumptions is the market reputation of the organisation and the potential demand
across the market.
9.2 Assumptions Tests:
For their new market in Middle East and more specifically in Saudi Arabia, GE
Healthcare Health Solution Biomedical and Biomechanical manufacturing and supplier
company needs to outline a method for (1) identifying the assumptions or unknowns and (2)

28BIOMEDICAL INNOVATION & VENTURE CREATION
resolving these assumptions on the basis of three parameters: severity, probability, and cost
of resolution (Lackéus & Williams Middleton, 2015)
9.3 MVBP:
A Minimum Viable Business Product or MVBP is a product with just enough features to
satisfy initial target customers. After collecting feedback of the market they can customise
their future products according to the customer choice, their purchasing behaviour and
potential interests. GE Healthcare should typically deploy their MVBP product to a subset of
possible customers—such as early adopters thought to be more forgiving, more likely to give
feedback, and able to grasp a product vision from an early prototype or marketing
information
9.4 Tracking Metrics:
Tracking matrix of the products will help GE Healthcare company to prioritise their product
planning as a major consideration for their manufacturing and marketing operation.
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
Advanced Imaging 5 2 2 4 3 15.5 1
Angiography 2 3 1 2 4 4.5 11
MRI 3 2 3 2 1 12.5 5
Sliding Gantry CT 4 2 1 3 4 10 7
X-Ray Machines 2 3 4 2 3 11 6
Automation and Advanced
Robotics
3 4 1 2 3
6.5
10
Blood Gas Systems 4 1 3 2 2 14.5 2

29BIOMEDICAL INNOVATION & VENTURE CREATION
Integrated Chemistry and
Immunoassay Systems
2 3 2 4 2
9.5
8
Dedicated Cardiac System 3 2 4 2 1 14.5 2
Stratus CS 200 Acute Care
Diagnostic System
2 3 2 4 2
9.5
8
DCA Vantage Analyzer 3 2 1 2 1 8.5 9
Data Management System 3 1 4 2 3 14 3
Hematology Systems 2 1 3 4 2 12.5 5
Digital Morphology
Systems
4 2 3 1 2
13
4
10 SCALING
10.1 Product Plan for Beachhead Market:
Because of the high quality services as well as products manufactured by the company, GE
Healthcare got highly recognized in the medical industry.
Initial Product Medium term product Long term product
 Advanced Imaging
 Blood Gas Systems
 Dedicated Cardiac System
 Data Management System
 Digital Morphology
Systems
 MRI
 Hematology Systems
 X-Ray Machines
 Sliding Gantry CT
 Integrated Chemistry and
Immunoassay Systems
 Stratus CS 200 Acute Care
Diagnostic System
 DCA Vantage Analyzer
 Automation and Advanced
Robotics
 Angiography

30BIOMEDICAL INNOVATION & VENTURE CREATION
10.2 Next Market:
The choice of the next phase market is totally based on the compatibility between the
product and the resources available along with the newer market itself. After presenting the
products successfully in Saudi Arabia, the company should take the market extended to the
other developed as well as developing countries in Middle East like UAE, Oman, Egypt,
Lebanon and others.
10.3 Product Plan Beyond Beachhead Market:
The product plan for beyond the market of Saudi Arabia the focus of this organization
name GE Healthcare should be the peripheral healthcare service users (Lichtenstein, 2016).
When it comes to products, the organization manufactures healthcare equipment that is
required to focus on their secondary production systems that includes
 MRI
 Hematology Systems
 X-Ray Machines
 Sliding Gantry CT
 Integrated Chemistry and Immunoassay Systems
 Stratus CS 200 Acute Care Diagnostic System
 DCA Vantage Analyzer
10.4 Follow-on TAM:
TAM or Total Accusable Market is the total market size that can be accessed by any
business for generating revenue through direct or indirect interventions. Examining the TAM
will give opportunity to a Biomedical company to assess their product selection and develop
a quick metric for underlying potential focus points. For GE Healthcare, investing in Saudi

31BIOMEDICAL INNOVATION & VENTURE CREATION
Arabia will help expanding their Total Accessible Market across other developing countries
of Middle East namely UAE, Lebanon, Oman and others.
11 VENTURE FORMATION
11.1 Stakeholders:
. Seimen is a biomedical company that involves in manufacturing of the biomedical
equipment in the areas of electrifications and automation and digitization. therefore, the
stakeholders are the directors, employees, government agents of the firm, the supplier of the
equipment, distributors, community from which it draws resources and hospital
administrators and facilities
11.2 Define Roles & Responsibilities:
 The Roles of directors is to supervise the company and ensures the revenue through
the highest manufacturing
 Role if the employees are to involve themselves in the manufacturing of the
biomedical equipment in order to retain customers’ interest
 The role of the government's agents of the firm is to involve themselves in the legal
issues and advocacy that in turn assist the company to legally supply their products
(Zhou, Greenspan & Shen, 2017)
 The Roles of a supplier is to supply the equipment to different distributors
 The role of the distributors is to distribute the manufactured product into different
health care brunches
 The role of the community from which it draws resources is to provide resources for
manufacturing product successfully.
 The role of hospital administrators and facilities is to use it in the different surgeries
and providing patient-centric care

32BIOMEDICAL INNOVATION & VENTURE CREATION
11.3 Assign Roles & Responsibilities:
Role Responsibility
General Manager Supervising and managing all the departments while
leading the departmental superiors
Human Resource Recruiting and Managing workforce while keeping them
safe and healthy
Administrator Facilitating the premises with technology and fundamental
advancement
Logistics Manager Supervising and maintain Inbound, Outbound and
manufacturing chain
Finance and accounts executive Accounting payroll, measuring performance, publishing
budget and estimating benefits
Sales and Marketing Manager Conducting market research, making customer
relationship, selling products, improving market share and
reputation
Legal advisor Keeping legal compliance for all aspects of the business
operations
Employees Maintaining workflow with healthy relationship and
cooperating environment in order to improve the capability
of sustainable coordination
11.4 Engagements:
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

33BIOMEDICAL INNOVATION & VENTURE CREATION
Community External Secondary Moderate Moderate
11.5 Corporate Filings:
11.6 Formation Agreements:
A contract is a promise or set of promises that are legally enforced and if violated, it allows
the injured part to access the legal remedies. The agreement would be formed between
manager and community from whom they collect resources where price, terms and conditions
and rules and regulations would be mentioned. The similar kind of the contract would be
formed between manager and employees (Zahra, & Wright, 2016). The second agreement
would be formed between supplier and distributors where the supplier would mention the
price of the manufactured product, terms and conditions.
12 CAPITALIZATION
12.1 Capital Need:
Current and Potential Assets
Initial Revenue 1,500,000
Account Receivable or Loan 16,500,000

34BIOMEDICAL 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
TOTAL 1726500

35BIOMEDICAL INNOVATION & VENTURE CREATION
12.3 Offering Type:
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%
Total 4,000,000 100%
12.6 Investor Profile:
Considering the fact that the GE Healthcare Healthineers conduct Business to
business deal, in the following table, where a persona of Mr. M, the operational director of
ABC organization has been conducted.
12.7 Investor Persona:
Background
 Operational Director of the ABC
NGO organization
 Working at the ABC organization for
more than 10 years
Demographics
 Female
 Age: 30-45 years
 Dual HH income: N/A
 Suburban

36BIOMEDICAL INNOVATION & VENTURE CREATION
Roles
 To manage the organizational issues
associated with donation
 To conduct venture sharing
 To analyse the market in order to
understand both internal as well as
external environment.
Goals
 To select suitable suppliers for the
ABC healthcare home.
 Enhance the CSR of the company.
 Enhance the partner’s loyalty.
12.8 Ten Investors:
1. Suppliers
2. Business Partners
3. Non-Government organizations
4. Trusty boards
5. Medical research institutes
6. Rehabilitation centers
7. Vet nary health care homes
8. Distributing Networks
9. Sports organization
10. Paramedics

37BIOMEDICAL INNOVATION & VENTURE CREATION
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