Development of a New Business Model

This report discusses the development of a new business model for Vein Viewer, an innovative medical device for locating veins. It covers the identification of the problem, benefits of the innovation, new business model, critical success factors, and feasibility of the business plan. The report uses the business model canvas as a tool for launching Vein Viewer to the market.

Running head: DEVELOPMENT OF A NEW BUSINESS MODEL
Development of a New Business Model
Name of the university
Name of the student
Author note

1DEVELOPMENT OF A NEW BUSINESS MODEL
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Identification of problem: Inspiration behind inventing Vein Viewer.......................2
Benefits of the innovation..........................................................................................3
New business model...................................................................................................3
Critical success factors and feasibility of the business plan......................................6
Conclusion......................................................................................................................7
Appendix......................................................................................................................10
Building blocks of business canvas model...............................................................10

2DEVELOPMENT OF A NEW BUSINESS MODEL
Introduction
The report aims to talk about an innovation of effective medical device, which is
capable of locating veins considering the difficult venous access (DVA) of the patients.
Considering DVA as a serious ongoing medical issue, the report introduces the idea of
developing vein viewer. The focus of inventors is to launch this device exploiting the medical
needs of both the patients and the clinical workforce. It will be the answer of doctors and
nurses suffering with such minor problems while executing greater medical operations.
Patients will no longer experience the pain to be aware of their problem of DVA. According
to the product specifications, a detail structure of new business model will be introduced
following business model canvas, as well as the strategies will be framed keeping the market
condition in mind (Dudin et al., 2015). Strategies should be feasible enough to bring success
for this newly launched medical equipment for the welfare of both the patients and medical
practitioners.
Discussion
Identification of problem: Inspiration behind inventing Vein Viewer
According to Chiao et al., (2013), the inspiration of inventing Vein Viewer Flex came
from both the perspectives of patients and medical clinics. It has been observed previously
that due to obesity or different other factors doctors and nurses are unable to locate veins in
patients’ body, which is making the treatment process longer or even complicated (Vezzani et
al., 2013). Although, DVA is not considered as a disease on record yet acknowledging the
intensity of the problem, it has been decided to frame a product like this.
According to a patient’s perspective if they have the problem of DVA means, they
should have the power of enduring several needle sticks during the entire procedure of
gaining vascular access. In order to mitigate this unnecessary cause of painful experience,

3DEVELOPMENT OF A NEW BUSINESS MODEL
experts realise the need for inventing Vein Viewer Flex. It can be expected that in order to
provide the patients with best clinical experience, to prevent the process from facing delay
and to minimize the use of multiple syringes the invention will be helpful and mitigate the
issue of failure related to gaining vascular access. As described in Szmuk et al., (2013),
Attaining venous access is considered as a skill of medical professionals yet to provide
advanced medical experience to the patients in the absence of skilled workforce in the
hospitals, invention of electronic medical equipment are helpful while managing the flow of
patients.
Benefits of the innovation
Vein viewer Flex will be the only existing vein illuminator in the market with HD
imaging and extra ordinary digital full field technology. As mentioned before, this
contemporary medical innovation will make entire vascular access procedure easy and less
time consuming. It is a reflective, infrared technology, which emits harmless LED light from
the device. It is absorbed by blood and reflected by the tissues around, which enables the
medical professionals to locate the veins easily (Sun et al., 2013). Device also helps to
understand patients’ pattern of blood up to 15mm deep whereas up to 10mm is enough for
executing medical purposes. It protects the patients from receiving accidental puncture during
several attempts of finding veins. It is going to project the image of patients’ vasculature even
with the exact anatomical location. Therefore, the benefits not only allows patients and health
workers to experience a safe procedure of vascular access, but also initiates better and
advanced step towards the improvement of medical science.
New business model
Business model canvas has been decided to use as the tool for launching Vein Viewer
Flex to the market. According to Boons and Lüdeke-Freund, (2013), this tool has the
capability of managing multiple aspects regarding model development in a well-structured

4DEVELOPMENT OF A NEW BUSINESS MODEL
manner deciding the target market and assuming the percentage of sales. It summarizes
creation of new products and its presentation, along with that whether it is capturing the value
as per the market requirement or not (Achtenhagen, Melin & Naldi, 2013). Behind the
innovation of this new medical equipment, ongoing issue of DVA among the patients was the
main reason. As it is extremely new to the market, it is not dealing with competition yet in
near future emergence of competitors will not surprise the inventor organisation. . However,
the device is minimizing human involvement into the procedure.
At first, measuring the intensity of requirement is the initial thing to do. As the
experiment is new and medical professionals have understood its wide utility, it can be stated
the business has already been started on a high level. Although, the product has been
developed thinking about the need of patients who have been suffering from DVA, it can be
said that medical workers irrespective of experienced or novice will use this electronic device
just to assure perfection for all the patients who come for treatment without sorting them on
the basis of DAV issue (Vezzani et al., 2013). A product can be successful within the
industry only if the consumer interest and product specification are interlinked.
There are several factors, which are needed to be determined before applying
Business canvas model. The company needs to decide which organisation can support their
production by being partners of selling and influencing the market. In this case, several
hospitals, stores that sells medical equipment and medical representatives can promote the
use of this device among the clinics and pathology laboratories.
Therefore, company responsibility will be to establish relationship with the partners.
Besides, company needs to hire efficient employees to execute operational and promotional
activities via advertisements on television and social media. Monitoring the revenues is
another essential responsibility to carry out.

5DEVELOPMENT OF A NEW BUSINESS MODEL
According to this model and as per the views of Boons and Lüdeke-Freund, (2013),
value of the product following the market need is the ultimate USP of innovation. Patients
suffering from DAV is the reason behind innovation; therefore, to perform the procedure of
vascular access perfectly, medical workforce can use this device irrespective of patients’
perspective.
The central driver of sale needs to be the customer satisfaction and efficient marketing
managers must manage this via social networks, feedbacks from the consumers and by
providing undisturbed customers’ support during any time of the day. However, innovation
needs adequate resource to take place (O’Cass & Sok, 2014).
As per the study of Im, Montoya and Workman, (2013), the idea itself announces the
utility of efficient and skilled brains to generate such a smart idea applying the knowledge of
physics and integrate it with the need of medical science. It will be sold in stores of medical
equipment from where path labs, hospitals, both the government and private clinics can buy
the newly invented device.
Finally, while discussing the financial involvement it has been realised that
development and production of medical equipment generally involves huge cost structure and
additional promotional and employee maintenance charges. Therefore, before inventing any
medical equipment for commercial purpose detail research is necessary. Revenue will be
generated by not only selling the device but also there will be additional charges on
installation and servicing. Therefore, following the business model building blocks as follows
can be recognised.
 Key partner
 Key activities
 Value recognition
 Customer segmentation

6DEVELOPMENT OF A NEW BUSINESS MODEL
 Relationship with the customers
 Cost structure
 Revenue
 Channels of product delivery
Business model canvas mainly deals with these factors and interrelated relationship
among these variables.
Critical success factors and feasibility of the business plan
This sector of given report will discuss about critical strategies which should be
applied in order to make the business model work according to the prior planning (Ceschin,
2013).
 This innovation is obviously has been planned to mitigate a long term medical issue
yet it should be remembered that it is a matter of human efficiency. Hence, if the
patient is not having any problem it should be done without taking any help of this
device (Joyce & Paquin, 2016). That is where the sale of this device in an extensive
level is questionable. However, this device can solve the lack of efficient workforce
issue within the medical profession, which can bring success in commercial level.
 As far as opportunity is concerned it has been well recognised and innovation is apt
and going to be widely acceptable.
 Product and promotional strategies have been designed keeping customers’ interest in
mind ((Boso, Cadogan & Story, 2013).
 However, it should be kept in mind while identifying success factors that, channels
and strategies should be less complicated as the product has a social interest to
deliver, complicated operational and promotional structure can make it replaceable
with the traditional process of vascular access, as it is a matter of medical efficiency
of the workforce.

7DEVELOPMENT OF A NEW BUSINESS MODEL
 Cost structure should be revised more than twice in a year as it involves huge capital
with additional maintenance and promotional charges in order to make the business
process sustainable.
Its capability of solving the ongoing medical issue, potential acceptability and
considering its critical success factors, it can be said that business canvas model is suitable
and feasible enough to be launched with commercial interest.
Conclusion
The initial interest of generating this report was to present a business model of an
innovative, portable, vascular access-imaging device called Vein Viewer Flex, which helps to
locate veins of patients suffering with DAV. However, in case of some patients vein is not
visible for obesity or old age at the time of performing medical operations or tests. It has been
understood that this innovation is going to serve the medical field widely, therefore business
opportunity is immense. Considering that fact, business canvas model has been introduced
where the interrelated relationship of several building blocks have shaped the understanding
of business operation regarding the product in future. It can be concluded that, this report can
be a guideline to those products and services, developed for customers’ interest, which are
seeking their opportunity to enter into the market applying business canvas model.

8DEVELOPMENT OF A NEW BUSINESS MODEL
References
Achtenhagen, L., Melin, L., & Naldi, L. (2013). Dynamics of business models–strategizing,
critical capabilities and activities for sustained value creation. Long range
planning, 46(6), 427-442.
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner production, 45, 9-19.
Boso, N., Cadogan, J. W., & Story, V. M. (2013). Entrepreneurial orientation and market
orientation as drivers of product innovation success: A study of exporters from a
developing economy. International Small Business Journal, 31(1), 57-81.
Ceschin, F. (2013). Critical factors for implementing and diffusing sustainable product-
Service systems: insights from innovation studies and companies'
experiences. Journal of Cleaner Production, 45, 74-88.
Chiao, F. B., Resta-Flarer, F., Lesser, J., Ng, J., Ganz, A., Pino-Luey, D., ... & Witek, B.
(2013). Vein visualization: patient characteristic factors and efficacy of a new infrared
vein finder technology. British journal of anaesthesia, 110(6), 966-971.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting.
Im, S., Montoya, M. M., & Workman Jr, J. P. (2013). Antecedents and consequences of
creativity in product innovation teams. Journal of Product Innovation
Management, 30(1), 170-185.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
O’Cass, A., & Sok, P. (2014). The role of intellectual resources, product innovation
capability, reputational resources and marketing capability combinations in firm
growth. International Small Business Journal, 32(8), 996-1018.

9DEVELOPMENT OF A NEW BUSINESS MODEL
Sun, C. Y., Lee, K. C., Lin, I. H., Wu, C. L., Huang, H. P., Lin, Y. Y., ... & Yu, H. R. (2013).
Near-infrared light device can improve intravenous cannulation in critically ill
children. Pediatrics & Neonatology, 54(3), 194-197.
Szmuk, P., Steiner, J., Pop, R. B., Farrow-Gillespie, A., Mascha, E. J., & Sessler, D. I.
(2013). The VeinViewer vascular imaging system worsens first-attempt cannulation
rate for experienced nurses in infants and children with anticipated difficult
intravenous access. Anesthesia & Analgesia, 116(5), 1087-1092.
Vezzani, A., Manca, T., Vercelli, A., Braghieri, A., & Magnacavallo, A. (2013).
Ultrasonography as a guide during vascular access procedures and in the diagnosis of
complications. Journal of ultrasound, 16(4), 161-170.

10DEVELOPMENT OF A NEW BUSINESS MODEL
Appendix
Building blocks of business canvas model
Key Partners
 Hospitals
 Government and
private clinics
 Pathology
laboratories
 Medical
representatives
Key Activities
 Establishing healthy
two-way
relationships with
stores, hospitals and
medical
professionals.
 Hiring effective
workforce to
promote more such
innovations.
 Monitoring the
channels of revenue
and promotional
activities.
Value
Proposition
 The value has
been offered to
the patients
with DAV.
 Made by
keeping both
the patient and
clinical
perspective in
mind.
 Reduce the risk
of accidental
puncture.
Customer
Relationships
The
relationship with
the customers must
be managed with
extreme care :
 Social Media
 Customers’
Feedback
 Customer
support during
any time of
the day are
some key
strategies to
maintain a
healthy
relationship.
Custo
mer Segments
Patient
s with DAV and
medical
professionals
who want to
execute medical
procedure
perfectly.
Custo
mers are path
laboratories,
doctors’ clinics
and hospitals.
Key Resources
 Technology used for
developing the
imaging device.
 Monetary resource
 Skilled workforce
and their application
of physics into
medical science.
Channels
 Retail stores
of medical
equipment.
 Representativ
es who will
influence to
buy.
Cost Structure
 Office expenses
 staff expenses
 Development of Technological device and its
maintenance before selling any device.
Revenue Streams
 Sales, post-sale maintenance and installation
charges of the product.

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