Opportunity Analysis and Development Report

This report focuses on the opportunity analysis and development of a medical software venture that aims to enhance the performance and functionality of biosensors in healthcare organizations. It includes problem and need analysis, consumer analysis, market analysis, internal capabilities, and commercial viability.

Running head: OPPORTUNITY ANALYSIS AND DEVELOPMENT 1
Opportunity Analysis and Development Report
Student’s Name
Institution Affiliation
September 25, 2018

OPPORTUNITY ANALYSIS AND DEVELOPMENT 2
Introduction
The medical sector needs venture in its Digital Signal Processing Technology (DSPT).
Developing medical software is relevant to dramatically enhance the performance and
functionality of biosensors in healthcare organizations. The main algorithm of a venture is to
solve immediate issues noticed in different niches by boosting performance and eliminating the
need to use expensive existing solutions (Zheng & Qin, 2010). The software product will be sold
to medical equipment manufacturers such as; the home blood-glucose monitors and healthcare
blood determiners. The business opportunity is expected to bring a positive cash-flow in the next
three years as long as hospital segments like; immunoassays and implanted biosensors
departments are targeted. Apart from these niches, there are companies that depend on
biosensors to carry out monitoring activities. These companies include: military-chemical
detecting agents, water-air quality monitoring and industrial processor.
Problem & Need Analysis
The application of glucose monitors is difficult, painful and expensive. There are many
patients (suffering from diabetes) who still fail utilize home-blood glucose monitors are
prescribed by doctors due to the fact that the regimen is difficult and also excruciating. Having to
apply it 4 to 7 times daily diabetic patients risk puncturing their fingers while drawing blood into
a single test strip before inserting it into glucose biosensors (Callan & Gillespie, 2012). As a
result, these patients accelerate to multiple complications like; stroke, blindness, kidney and
heart failures. In actual fact, diabetes is one of the causes of blindness in people aged twenty to
seventy years (Vaccaro, Riccardi & Maggioni, 2018). Therefore, the utility of a better amenable

OPPORTUNITY ANALYSIS AND DEVELOPMENT 3
glucose monitoring device is a best prevention measure for diabetic patients. The designers of
glucose devices have also identified the intense physical pain felt by patients using existing
monitoring devices as a major cause of non-compliance; and are now seeking for innovative
ways to reduce the agreeable size of designed devices (McHugh, McCaffery & Casey, 2012).
Due to this reason, this medical software venture will help enhance less disturbing drawing
technique to fulfill the expectations of painful diabetic patients.
The DSPT medical venture, comprising of suitable software modules will enhance
different functionality of monitors and improve the overall performance of diabetes biosensor
equipment. Improvement of performance means that specialists will be able to leverage the rise
in signals to noise ration and reduce the sample of blood needed. The innovation majors on
enhancing sensitivity and accuracy of analyzer in an institution (Agustina, Sumarwan &
Kirbrandoko, 2017) When the accuracy of a device is boosted, potential roadblocks that limit the
spread and access of portable blood monitors will be removed. The DSPT software solution is a
significant success for the healthcare industry which would have been limited through complains
given by pain-engrossed patients.
Consumer Analysis
Diagnosis in the medical sector has a large existing market that matches an organizational
size perspective and also to a level that matches the makers of diabetes monitors (Freedman &
Lin, 2018). The main segment in the medical sector that this venture is targeting in the next 2-3
years is large. These segments include: highly marginalized consumers of glucose monitors and
healthcare device analyzers that make medical devices. Through conservative estimation, the

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value of innovation proposed to the blood-glucose niches alone is enough to put up with viable
stand-alone ventures. Conversely, with the minimal increasing effort that will be required, the
innovated software will be distributed to markets for the merit of diversifying and augmenting
different streams of revenues.
The pricing model of the product will two categorized into two based on the capabilities
of potential customers and revenue models. The first category will be based on ‘value addition’
while the second one according to ‘device utility’. As for the blood glucose niche, the revenue is
not determined by the device but from recurring income from used testing strips (Veves, A.,
Giurini & LoGerfo, 2006). This means that the test strips will cost almost $0.50 which is
approximately 29% less costly compared to the current market price of $0.70. These strips of test
are required to be utilized 3-4 times daily, though the pain brought with the testing process has
caused a reduction in the number of compliance to a maximum of 2 tests in a day per diabetic
patient. The expected benefits of this venture are;
 Development of technological solutions that will improve the rate of adoption and
compliance of diagnosis medical equipment. This venture will also increase the
performance and functionality of blood glucose biosensors for healthcare blood monitors
and home-based blood glucose monitors.
 Helping medical equipment makers to reach a positive cash flow in the next three years
and achieve approximately $50 million annual revenue in the next four years.
 Diversification of the product to other companies that depend on biosensors to carryout
monitoring activities lie military and environmental monitoring.

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The preferred market for the medical software products is concerned with new medical
equipment and innovations that will enable them to obtain medical diagnosis data like the level
of blood sugar and other chemistry data related to blood. According to Ostergaard & Bode
(2016), consumers prefer using premium products that enhance efficiency at a lower price. The
markets of the venture are hospital professionals and diabetic patients. Medical innovations need
to be accurate, easy to use and pocket-friendly for consumers (Cristina, 2012). Moreover, the
product will be used without the necessity of sending blood samples to a lab facility which will
be time-consuming and expensive. The summary description of this market needs to be an
organization’s initial objective to provide authenticated monitoring services which should be:
 Large, organized and high-growth niche
 A converging market force that is sustainable
 Have a desire to benefit from technological innovations
 Able to apply the initiative that will enhance effective endurance in tough emerging
trends
Market Analysis
The innovation has no direct competitors lined up because the venture follows a highly
proprietary and unique approach that has been well-researched by a digital team of experts. The
medical software venture will also be implemented to possible indirect competitors from major
in-house medical equipment makers. This innovation is completely sustainable due to
competitive advantages that follow strategized commands. These commands include:

OPPORTUNITY ANALYSIS AND DEVELOPMENT 6
 Making higher software paradigms that are corresponding to hardware developments in
biosensors.
 Launched by professionals that developed and researched the initiative thoroughly.
 Domination of a digital team of experts that assist in conducting a thorough evaluation of
existing biosensors and how functionality can be improved.
 Development of a launch process that follows two years ahead of competitors
 Sophisticated strategy of property that involves two major value copyrights and three
protective efficacy copyrights (Kim, Mun, Kim & Ahn, 2017).
The Medical software product will initially focus on blood glucose analyzing equipment
manufacturers. One of the benefits and dimension through which should be fulfilled by device
manufacturers is the reduction of discomfort and pain during testing where patients have to prick
their fingers to extract blood samples. When the sensitivity of the new device is improved, the
initiative allows blood glucose analyzers to reduces the required size of blood sample hence
reducing the possible paid during extraction process of blood samples. This is a mechanism to be
used in order for the initiative to gain a competitive advantage over other glucose monitoring
device makers. In one application measure, patients will be able to extract blood samples pain-
free using an automated microneedle when testing the level of blood sugar.
The technological innovation will also target clinical blood glucose analyzers by
providing increased types of blood tests that are accurate. Considering the bottom-up analysis of
physicians and equipment manufacturers’ survey, it is perceived that the penetration to market
for these key niches is delayed by the considerable low level of accuracy during testing of blood
sugars in centralized laboratories (Mazurenko & Menachemi, 2012). Moreover, a decreased

OPPORTUNITY ANALYSIS AND DEVELOPMENT 7
number of available tests are also another limiting factor hindering market penetration. Previous
devices had subjected physicians to a waiting process of a couple of hours for possible results
from centralized laboratories to be obtained. As an alternative approach to finger pricking
equipment, there are devices that monitor blood sugar level continuously. The main issue with
these devices is that they are not accurate and report approximately 30% error outside the
parameters of glucose analyzing devices. These traditional finger pricking devices cannot be
applied continuously over an extended timeframe. This software’s proposition and value is
targeted at enhancing accuracy and an extension of usage time.
Internal Capabilities
The ‘TechInvent’ company develops medical solutions and chemical sensors to enhance
a digital healthcare approach for generations. The value of this initiative is to deliver to potential
markets that are enthusiastic to improve sensitivity, accuracy and robustness when using
different kinds of sensors in establishing effective diagnostic equipment. TechInvent’s
technology is strategized to develop devices that will reduce the pain felt by diabetic patients
when extracting blood. Moreover, the company’s technological approach is centered on meeting
the market demand of accurate diagnosis devices. With the urgent need to solve healthcare
problems, the company is committed to developing medical software solutions that will mitigate
hardware problems affecting diabetic patients. The present winning teams of this initiative
compose of;

OPPORTUNITY ANALYSIS AND DEVELOPMENT 8
 Five leading scholars leading the application of digital signal sensing and processing to
enhance the sensor initiative; having an aggregated twenty years of DSPT research
experience.
 Entrepreneurs who founded and will run the tech organization.
 Board of veterans and advisors that are composed of medical specialists with more than
ten years of professional experience.
 Three additional technical staff members supposedly for financing and project
management officers who are experienced in commercial project engineering.
Commercial Viability
The core value proposition that the initiative will present to medical equipment makers is
increased revenue via augmented share of the market. Innovations are centered on creating
advantages over other products and premium offer of pricing from improved performance and
functionality of the featured product (Youngsu, 2017). Due to the fact that the new product
brought to the market is made using modern technology, makers can charge a premium price for
the device which will also reflect on TechInvent’s revenue stream. Another form of value
proposition (which will attract the attention of customers) is the fact the level of technology
applied is speculated to reduce operation costs by eliminating the necessity of using expensive
hardware.
In the initial stage of product launch, the company will bring the initiative to the
consumer market by approaching relevant stakeholders of medical equipment monitoring.
Partners offer an added advantage to enhance product development in support of partners aiding

OPPORTUNITY ANALYSIS AND DEVELOPMENT 9
in marketing, engineering, marketing, finance and management (ALEKSA, 2017). The initiative
also applies competitive standards through the basis of potential customers who can offer
positive concerns regarding the value of the initiative. At this step, marketing techniques to be
applied include: increasing consumer awareness using press releases, conference, journal
advertisement, publications and market shows such as device sensor expo (Polgár & Kazinci,
2013). The venture will also consider market donations and mind sharing approaches that will
ensure the DSPT is branded to enhance solutions for diabetes problems. As a result, a strong,
consistent and defined brand will include a barrier to entry and penetration to market. When
complete awareness of the value of the product is created, customers’ demand for the product
will be increased (Powell-Jackson et.al, 2018).
When the product is charged depending on royalty basis per user cost, the solution will be
sold to blood glucose device makers of biosensor equipment to enhance the performance of the
solution. Due to the fact that the medical solution is software-centered with minimal optimization
for hardware necessities, it will be integrated effectively into current sensing devices hence
boosting functionality irrespective of its low cost. Through an embedment of this DSP
technology with existing makers’ devices, beneficiaries will realize an approximate of 50% to
100% in dimensions of performance like sensitivity, accuracy and robustness levels. Royal-based
models of the technology are however not new to sensory business. Advantageously,
TechInvent’s ability to offer performance upgrades through software products that are easy to
use provides the company with sales and technical advantages over other device sensing
manufacturers.

OPPORTUNITY ANALYSIS AND DEVELOPMENT 10
Conclusion
In conclusion, the medical software venture strategy will be centered on a sustainable
advantage from premium software technologies, monopolization of a digital team of experts, in-
house professionalism and formulation of updates over competitors’ activities. According to
Byung-Sung (2012), innovation also considers effective intellectual strategies on property which
are; offensive and defensive patents to formulate an IP ordeal for creating litigation over rivals.
Attached to aggressive sales and marketing strategy, the venture is positioned to be the leading
technology provision that can be used by biosensor device consumers in medical fields and
science-based applications. Potential competitors (sensor device makers) could be categorized
under the Research and Development (R&D) department who are constantly searching to create
biosensors with a higher performance for an existing software product. R&D specialists are also
aiming at creating revolutionary monitoring devices that incorporate implantable biosensors like
blood sugar monitors. However, considering secondary research of market preference, the core
advantage of this initiative is the ability to solve biological and chemical problems using high
tech medical experts. This entrepreneurial and venture approach of creating multi-disciplinary
software is perceived to fill the gap in the development of blood glucose devices.

OPPORTUNITY ANALYSIS AND DEVELOPMENT 11
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