ABC Medicine: A Report on Biomedical Innovation and Venture Creation

This report provides a comprehensive analysis of ABC Medicine, a startup focused on biomedical innovation and venture creation, targeting the Saudi Arabian market. It delves into various aspects of the business, including the company's mission, values, and initial assets. The report examines the target market for diabetic diagnostic systems, including cardiac monitoring and medicinal consumables, and provides a detailed market analysis, including TAM, persona, and value creation strategies. It also explores competitive advantages, customer acquisition strategies, product unit economics, and sales plans. Furthermore, the report covers design and build considerations, scaling strategies, venture formation details, and capitalization plans, offering a holistic view of the venture's potential and challenges. Financial estimations are projected for 5-10 years as a biomedical manufacturer and seller in Saudi Arabia. The report also discusses product selection and promotion strategies.

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

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Executive Summary
The mission of this report is to examine the Biomedical Innovation and Venture
creation of a completely new start-up Biomechanical company named ABC Medicine. The
target market has been chosen as Saudi Arabia. The product for the target market will be the
Diabetic diagnostic systems including cardiac monitoring and medicinal consumables. 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. The Market analysis has been
conducted, while projecting the financial estimations for next 5 to 10 years as a Biomedical
Manufacturer and seller in the market of Saudi Arabia. The product selection and promotion
strategy has been also discussed in this report.

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Table of Content
1 RAISON D’ETRE...................................................................................................................6
1.1 Mission:............................................................................................................................6
1.2 Passion:............................................................................................................................6
1.3 Values:..............................................................................................................................6
1.4 Initial Assets:....................................................................................................................7
1.5 Initial Idea:.......................................................................................................................7
2 INITIAL MARKET................................................................................................................7
2.1 Beachhead Market............................................................................................................7
2.2 End User Profile...............................................................................................................8
2.3 TAM:................................................................................................................................8
2.4 Persona:............................................................................................................................8
2.5 Ten Customers:................................................................................................................9
3 VALUE CREATION..............................................................................................................9
3.1 Use Case:..........................................................................................................................9
3.2 Product Description:.......................................................................................................10
3.3. Problem.........................................................................................................................10
3.4 Quantified Value Proposition:........................................................................................11
4 COMPETITIVE ADVANTAGE..........................................................................................12
4.1 Moats:.............................................................................................................................12
4.2 Core:...............................................................................................................................13

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4.3 Competitive Positioning:................................................................................................13
5 CUSTOMER ACQUISITIONS............................................................................................13
5.1 Decision Making Units:.................................................................................................13
5.2 Customer Buying Process:.............................................................................................14
5.3 Windows of Opportunity:..............................................................................................15
5.4 Possible Triggers:...........................................................................................................16
5.5 Regulatory Strategy:.......................................................................................................16
5.6 Reimbursement Strategy................................................................................................16
6 PRODUCT UNIT ECONOMICS.........................................................................................17
6.1 Business Model:.............................................................................................................17
6.2 Pricing:...........................................................................................................................17
6.3 Short Term LTV.............................................................................................................18
6.4 Short Term COCA:........................................................................................................18
6. 5 Medium Term LTV.......................................................................................................19
6.6 Medium Term COCA....................................................................................................19
6.7 Long Term LTV.............................................................................................................20
6.8 Long Term COCA..........................................................................................................20
7 SALES...................................................................................................................................21
7.1 Preferred Sales Channel:................................................................................................21
7.2 Sales Funnel:..................................................................................................................21
7.3 Short Term Mix:.............................................................................................................22

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7.4 Medium Term Mix:........................................................................................................22
7.5 Long Term Mix:.............................................................................................................22
8 OVERALL ECONOMICS....................................................................................................23
8.1 Estimated R&D Expenses:.............................................................................................23
8.2 Estimated G&A Expenses:.............................................................................................23
8.3 LTV/ COCA Ratio:........................................................................................................23
9 DESIGN & BUILD...............................................................................................................24
9.1 Key Assumptions:..........................................................................................................24
9.2 Assumptions Tests:........................................................................................................25
9.3 MVBP:...........................................................................................................................25
9.4 Tracking Metrics:...........................................................................................................26
10 SCALING...........................................................................................................................26
10.1 Product Plan for Beachhead Market:...........................................................................26
10.2 Next Market:................................................................................................................27
10.3 Product Plan Beyond Beachhead Market:....................................................................27
10.4 Follow-on TAM:..........................................................................................................27
11 VENTURE FORMATION.............................................................................................28
11.1 Stakeholders:................................................................................................................28
11.2 Define Roles & Responsibilities:.................................................................................28
11.3 Assign Roles & Responsibilities:.................................................................................29
11.4 Engagements:...............................................................................................................30

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11.5 Corporate Filings:.........................................................................................................30
11.6 Formation Agreements:................................................................................................30
12 CAPITALIZATION............................................................................................................31
12.1 Capital Need:................................................................................................................31
12.2 Use of Funds:...............................................................................................................31
12.3 Offering Type:..............................................................................................................32
12.4 Pre-Money Valuation:..................................................................................................32
12.5 Post-Money Valuation:................................................................................................33
12.6 Investor Profile:............................................................................................................33
12.7 Investor Persona:..........................................................................................................33
12.8 Ten Investors:...............................................................................................................34
References:...............................................................................................................................35

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1 RAISON D’ETRE
1.1 Mission:
The ABC Company is a healthcare organization that aimed to offer the consumers
with a good variety of pharmaceutical, diagnosis as well as patient care products across the
world. The mission of the organization is to provide all the required medical equipments as
well as drugs to both the residents of Saudi Arabia along with international consumers. The
current mission of the company is to expand the business is to expand its consumer base as
well as loyalty in Saudi Arabia so that in the recent future they can enjoy an enhancement n
their revenue.
1.2 Passion:
The ABC organization was published in the year 2015 as a pharmaceutical
manufacturing as well as supplier organization. Due to the superior quality of biochemical
products offered by the company at a highly affordable range, the company is gaining
reorganization in the healthcare industry of Saudi Arabia. Considering the fact that the nation
still lacks well equipped healthcare homes as well as technologically advanced biomedical
equipments, the passion of the company is to ensure a steady increment in the healthcare
service of Saudi Arabia.
1.3 Values:
The ABC Company possesses three chief values that are helping the company to
expand its business in Saudi Arabia. These values includes, uplifting consumer satisfaction,
research based development as well as implication of innovative ideas (Acs et al., 2016).
While the incorporation of innovative ideas as well as research based product development
helps the company to ensure high quality and innovative products that provides them with

7BIOMEDICAL INNOVATION AND VENTURE CREATION
competitive advantage, the constant effort of the company to ensure maximum satisfaction of
the consumers helps the same to gain consumer loyalty.
1.4 Initial Assets:
When it comes to the initial assets of the company, it includes its extremely efficient
workforce. The ABC Company has arranged a prolonged process of selection in order to
ensure that only the best candidate is getting selected through the process. Not only this, the
organization has kept its salary scale a little higher than its competitors order to attract skilled
and experienced workers.
1.5 Initial Idea:
The initial idea off the organization is to incorporate innovative idea while developing
bio medical equipments. Off course, the management needs to invest a good amount of
financial capital for manufacturing technologically advanced products. Along with being
innovative, the organization also ensures the superior quality of their product. However, in
order to capture the market, the management of ABC company is keeping the price of their
product a little lower than its competitors.
2 INITIAL MARKET
2.1 Beachhead Market
The term beachhead market can be defined as the market which has its focus on a
narrow market space where a company can initiate its business with higher potential benefits.
In order to enhance their business in the Saudi Arabia, it is highly crucial for the management
of the ABC Company to set their beachhead market in a profitable location where the number
of consumer is high but the number of competitors is low (Shammari et al., 2016). Currently

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the company has chosen Al Jawah, a village located in the south-western part of Saudi Arabia
as its beachhead market.
2.2 End User Profile
The ABC Company manufactures a good number of healthcare diagnosis as well as
care providing products. The direct consumers of tem mentioned organization includes
healthcare organizations, health clinics, rehabilitation facilities as well as medical
laboratories. However, for healthcare equipments for diabetes, the end user will include the
consumers of healthcare facilities like health Clinique and hospitals.
2.3 TAM:
The full form of TAM is Total Addressable Market and it includes the entire market
that a business is comprised of, namely, beachhead market, adjacent market and additional or
extended market. Considering the fact that the current beachhead market of the ABC
Company is Al Jawah, the adjacent market for the company will be other corresponding
region that are economically developed from the beach market (Alharbi, Atkins & Stanier,
2015). The adjacent market involves other corresponding economically developed region. In
all those regions there is a lack of biomedical manufacturers. Therefore, the corresponding
developing regions are considered as TAM.
2.4 Persona:
Persona can be defined as the sample or example of the ideal consumer profile.
Persona helps individuals to develop the consumer experience planning. When it comes to the
ABC Company, the persona can be imagined to be Mr. P.
Background
 Procurement manager of the ABC
company
Demographics
 Male
 Age: 25-34 years

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 Has job experience of 12 years
 Married
 Dual HH income: 150,000 dollars
 Sub-urban
Roles
 Managing the supply chain as well as
purchasing cooperation of the ABC
Company
 Conducting business deals with
business partners
 Analysing the availability of the
suppliers for selecting the most
beneficial one
Goals
 Identify the most beneficial suppliers
for the healthcare equipments of
superior quality
 Enhancing the profitability of the
company by with the help of
appropriate equipment
2.5 Ten Customers:
The major 10 consumers of the ABC organization are as follows:
 Small to medium health clinics
 Government hospital
 Non-Government organizations
 Vet nary health care homes
 Sports organization
 Paramedics
 Pathology laboratories
 Medical research institutes
 Rehabilitation centers
 Medical research institutes
3 VALUE CREATION
3.1 Use Case:
Use case is a sales and marketing framework that allows any company to examine
their potential customer experience considering the crucial components of their sequential
perception. For ABC Medicine the most appropriate use case model can be developed
through using the Awareness, Interest, Desire and Purchase model.

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3.2 Product Description:
ABC healthcare company possesses specialization in majorly 6 product zones that
includes diabetes care, cardiovascular equipments, diagnostics and nutrition, nuero-
modulaton as well as medicine. However considering the increase amount of diabetic and
cardiac diseases in Saudi Arabia, the organization has currently focused on diabetic as well as
cardiac care equipments (Alkhamis et al., 2017). Apart from that, various diabetic care
powders or medicinal consumables will be offered. Therefore the products will be
 Coronary CT Angiography
 Haematology analyser
 Freestyle Glucometer
 Flash Glucose Monitoring System
 ECG
 Thallium stress test system
 Glucose and Ketone testing system
 Diabetes care powder
 Diabetes care planning application
3.3. Problem
One of the chief issues faced by the organization in while trying to expand their
business in Saud Arabia is the lack of transportation facilities. Being a developing country,
the government of the nation is still working on developing the logistics of the nation.
Another issue that is faced by the organization is the lack of internet facilities. Considering
the fact that online marketing is a highly prospective way of enhancing the revenue, this issue
will impose adverse impact on the revenue off the organization.

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Awareness
Interest
Desire
Action
Personal Presentation
Promotion
Purchasing
Communication
3.4 Quantified Value Proposition:
Quantified value proposition includes the clear statement of the process through which
the company is able to resolve the issues associated with the product as well as the target
consumers. In this case, the ABC organization needs to ensure the high quality of their
product without compromising with the cost of operation. Along with this, free after service
to the consumers for the first 5 years will also enhance the demand of the organization in the
healthcare industry of Saudi Arabia (AlShammari, Jennings & Williams, 2017).
The following use case has been developed considering a fictional customer named
Customers X. The Use case are presented in the following diagram.