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

Running head: BIOMEDICAL INNOVATION & VENTURE CREATION
BIOMEDICAL INNOVATION & VENTURE CREATION
Name of the Student
Name of the University
Author note
Case Study: GE Healthcare

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Executive Summary
The mission of this report is to examine the Biomedical Innovation and Venture creation of
one of the most renowned Biomechanical company named 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.

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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

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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

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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

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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.