Biomedical Innovation & Venture Creation: GE Healthcare in KSA

This case study analyzes GE Healthcare's biomedical innovation and venture creation strategies, specifically focusing on their potential expansion into the Saudi Arabian market. The report explores various business aspects, including the company's mission, passion, values, and initial assets, as well as a detailed market analysis encompassing TAM, persona development, and customer identification. It delves into value creation through product descriptions, problem identification, and quantified value propositions. Competitive advantages, such as moats and core competencies, are examined, along with customer acquisition strategies, decision-making units, and regulatory considerations. The report also includes a comprehensive analysis of product unit economics, including LTV and COCA calculations, sales channel preferences, and overall economic considerations, such as R&D and G&A expenses. Finally, it touches upon design and build considerations, scaling strategies, venture formation, and capitalization needs for GE Healthcare's potential venture 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

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

5BIOMEDICAL INNOVATION & VENTURE CREATION
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

7BIOMEDICAL INNOVATION & VENTURE CREATION
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

10BIOMEDICAL INNOVATION & VENTURE CREATION
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

11BIOMEDICAL INNOVATION & VENTURE CREATION
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.