TOT - Prosthetic Leg for Children

TOT Prosthetic Leg for Children

IDUS - 733 Entrepreneurship for Designers Prof. John Schaffeld Joe Motzkin and Jay Prajapati

0. Getting Started 0.1. Problem Statement 0.2. Opportunity 0.3. Idea Proposal

0.1. Problem Statement

“Amputation is the removal of a limb by trauma, medical illness, or surgery.”

Limb loss is a defect caused by birth, accident, or a medical illness. Limb loss could be resolved by a “Prostheses.”

“Prostheses is an artificial device to replace or augment a missing or impaired part of the body.”

Through “TOT” we are trying to resolve the issue and make amputation a very easy and a positive experience for a kid.

Getting Started

0

0.2. Opportunity

GROWING NEEDS

EASY REPLACEMENT

TIME CONSUMING

VERY EXPENSIVE

POSITIVE EXPERIENCE

Prostheses is a very expensive and a time consuming operation, which motivated to make it more efficient and economical to suit the growing needs of young children.

Kids can grow up to 4 inches per year and their bodies are constantly changing (volume and weight), causing the need for replacing their prosthetic several times before the age of 10.

Getting Started

0

0.3. Idea Proposal

“TOT� is designed to help children of age 4 to 10 with transtibial amputations and direct them to have a positive experience with their prosthetics by providing an easy and economical way of replacement.

Getting Started

0

1. Market Segmentation 1.1. Market Research 1.2. Potential Market 1.3. Organizing Research

1.1. Market Research

Advanced Prosthetics and Orthotics The mission of Advanced Prosthetics and Orthotics is to operate a private business guided by our Christian beliefs.

Provide prosthetic and orthotic patients of Savannah and the surrounding areas with access to the latest advances in technology and devices in a local facility at an economical price while maintaining relationships with our patients.

Referral sources that demonstrates our motto “service above self� in order to offer the best possible care for our clients.

Data and Statistics for kids prosthetics is not available with medical centers or Online.

Market Segmentation

1

1.2. Potential Market

Children Parents Guardians Doctors Medical Centers Orphan Homes Manufacturers Sales and Marketing

Market Segmentation

1

1.3. Organizing Research

End User :

Kids (age 4 to 10 years old).

Application : Prosthetic will be used for walking and performing different activities.

Benefits :

Less expensive, faster, time saving and efficient.

Lead Customers :

Empathy and providing courage to kids.

Market Characteristics : Economical and faster (advantage); existing market, delivery and consistency (challenges).

Partners :

Doctors, hospitals, medical centers.

Players : Manufacturers, salesperson.

Size of the market :

1,500 kids per year (approximately)

Competition :

Existing market and manufacturers.

Complementary Assets :

Full functionality offered.

Market Segmentation

1

1.3. Organizing Research

1. Is the target customer well-funded?

Yes. The condition of the child suffering from transtibial amputation is very difficult and tiresome, hence this makes it a necessity.

2. Is the target customer readily accessible to your sales force?

Yes. The third party manufacturing may be required and that might result in direct or indirect selling via salesperson and doctors.

3. Does the target customer have a compelling reason to buy?

Yes. The product is relatively less expensive than the existing products in the market. It is also faster and easier to manufacture then existing products in the market.

Market Segmentation

1

1.3. Organizing Research

4. Can you today, with the help of partners, deliver a whole product?

Yes. The third party manufacturing will be required along with the distributors and salesperson.

5 . Is there entrenched competition that could block you?

No. The competition can not block from starting a new customer relationship as the product approach and usability has sustainable materials and finishes which makes it different from the existing products.

6. If you win this segment, can you leverage it to enter additional segments?

Yes. The same idea can also be implemented for upper limb amputations with a few design modifications.

7. Is the market consistent with the values, passions, and goals of the founding team?

Yes. The market will be consistent as this is a necessity and if not used could make the conditions worse for a child.

Market Segmentation

1

2. Selecting a Beachhead Market 2.1. Defining the Market

2.1. Defining the Market

Kids from age 4 to 10 years old are our primary end users, who are suffering from the defect is either by birth, medical condition or by an accident.

Sometimes the condition is worse when the child is socializing.

The child suffers from both physical and mental pain.

However, in this case the mental pressure increases when they start going to school and meet new kids.

Beachhead Market

2

3. End User Profile 3.1. Profile Background 3.2. Character and Traits

3.1. Profile Background

The children under this category are almost in their first grade at a High School. The children in this age group love to play outdoor activities and games.

Children are very energetic and always happy. The act of joy and happiness could be taken away by this stigma. The child is very sensitive during this age and could get depressed very easily by someones comment on their disability.

Physical pain along with mental stress by their relatives and family could hurt them even more. The child should be given special attention and parents should make more efforts than a regular child.

End User Profile

3

3.2. Character and Traits

Demographics Characteristics

End Users

Female 6 years old 1st grade student

Children 4 to 10 year olds

Psycho graphics Reasons to buy

Decision Making Unit Economical Replaceable Easy Adaptability

Family

Daily Activities

Faster manufacturing Economical Accuracy

Middle-Class Family status Father - Earning Member 3 siblings

Roller Skating Outdoor games Playing with Dolls

Motivations

Fears

Family Friends Neighbors

Peer Pressure Social interaction

End User Profile

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4. Total Addressable Market

Total Addressable Market

Using knowledge gained from studying our beach head market, we came up with a Total Addressable Market .

Insufficient data and lack of research done on children prosthetics, led us to the low end of our estimations for Total Addressable Market.

Total Addressable Market is considered as low as possible because insurance companies and medical centers have different prize range for each amputation.

Advanced technology and customized design can cost up to $5,000 to $50,000 and more each time.

Total Addressable Market

4

Total Addressable Market

Numbers are focusing on USA only Cases per Births Annual Estimation Number of cases with lower limb deformity :

1 in 5,949

739

Children lose a limb due to accidents : 761 Total number of cases :

Cost for one transtibial prostheses : Safe Estimate for Target Addressable Market :

1,500 x 15,000

=

1,500 $12,000 $22,500,000 Per Year

TAM = $18 million per year All the costs and statistical data is an approximation as INSURANCE COMPANIES are involved and it varies from medical centers to centers as well.

Total Addressable Market

4

5. End User Persona 5.1. Persona Background 5.2. Profile Character

Persona Background

She likes to study and her favorite subject is mathematics.

She also loves outdoor activities and games, roller skating is her favorite.

Her family has been in New Jersey for more than 20 years.

Her father is a businessman and his salary is just enough to provide a comfortable life for his stay-at-home wife and three children.

She is the youngest of three children, loves to play and never thinks she can’t keep up with her brother and sister.

He can afford to buy performance prosthetics for Kiley, but she is so young, he is worried about the cost of often having to replace them as she grows.

Mr. Chan wants a prosthetic that can do everything Kiley wants to do, but will also accommodate her growth without needing to be completely replaced each year.

Kiley Chan 6 years old, Female 1st grade student, Mainland Regional High School, New Jersey.

End User Persona

5

Character Profile

Story Energetic, Sporty and strong will power.

Loves playing sports and outdoor activities.

Likes eating home cooked food, her favorite is Momos and Noodles.

Needs Looking for quick adaptability to her new leg.

Be comfortable.

To participate in skating competitions.

Goals Pursue roller skating as a profession.

Overcome the disability.

Want to keep up with her siblings.

Be confident and outgoing.

Increase social interaction.

Pains Feels she is being too expensive.

Not happy prostheses.

with

the

existing

Does not feel up to her full capacity.

Professional training.

End User Persona

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6. Full Life Cycle Use Case 6.1. Life Cycle

6.1. Life Cycle

1. How end users will determine they have a need and/or opportunity to do something different.

2. How they will find out about your product.

3. How they will analyze your product.

4. How they will acquire your product.

5. How they will install your product.

6. How they will use your product (in detail; see the Satisfier example further on).

7. How they will determine the value gained from your product.

8. How they will pay for your product.

9. How they will receive support for your product.

10. How they will buy more product and/or spread awareness (hopefully positive) about your product.

Full Life Cycle Use Case

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6.1. Life Cycle

1. Product Manufactured or designed and sold with contract.

5. Expansion As the patient grows, they will visit the doctors and have them make adjustment

2. Manufacture & Supply Patient directly visits Manufacturer and places an order

4. Purchase

3. Examine

A purchase is made by the end user. (Children Ages 4 -10)

Patient is examined and measurements are taken.

A decision is made and soon after will receive their prosthetic limb.

Full Life Cycle Use Case

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7. High Level Product Specification 7.1. Exploded View 7.2. Bill of Materials 7.3. Sustainable Materials

7.1. Exploded View 5 Shaft

3 Back Top Shell

6 Threaded Rod

Curran Injection Molding Glossy, Brown color

Curran Injection Molding Glossy, Brown color

PLA HS 3D Printed Part Finish as required

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1 Front Top Shell

PLA HS 3D Printed Part Finish as required

14 4 Back Lower Shell

PLA HS 3D Printed Part Finish as required

13 18

15

2 Front Lower Shell PLA HS 3D Printed Part Finish as required

17 19

16 20

High Level Product Specification

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7.2. Bill of Materials

Part Part # Quantity Material Process Finish Color Front Top Shell 1 1 PLA HS 3D Printed Varies Varies Front Lower Shell 2 1 PLA HS 3D Printed Varies Varies Back Top Shell 3 1 PLA HS 3D Printed Varies Varies Back Lower shell 4 1 PLA HS 3D Printed Varies Varies Shaft 5 1 Curran Injection Molded Gloss Brown Threaded Rod 6 1 Curran Injection Molded Gloss Brown Adjustment Knob 7 2 PHB 3D Printed Smooth Varies Adjustment Interior 8 4 Natural Rubber Injection molding Smooth Off-White Adjustment Pylon 9 8 PLA HS 3D Printed Smooth Off-White Clamping Ring 10 5 Curran Injection molding Gloss Brown Hex Pin 11 10 Curran Injection molding Gloss Brown Lock Nut 12 1 Curran Injection molding Gloss Brown Ball Joint 13 1 PLA HS 3D Printed Smooth Off-White Ball Joint Lock 14 1 PHB 3D Printed Smooth Varies Bushing 15 1 Natural Rubber Injection molding Smooth Varies Foot Base 16 1 Curran Injection molding Gloss Varies Foot Shell Left 17 1 PLA HS 3D Printed Smooth Varies Foot Shell Right 18 1 PLA HS 3D Printed Smooth Varies Foot Sole 19 2 Natural Rubber Over-molded Textured Varies Screws 20 6 Curran Injection molding Gloss Brown

High Level Product Specification

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7.3. Sustainable Materials

PLA HS

CURRANTÂŽ

LATEX

PHB

LIGNIN

PLA is plastic produced from resources that can be renewed on an annual basis: sugar beet, sugar cane, wheat, maize and cellulose.

Its bers are twice as strong as carbon bers and hold promise for a wide range of industrial and technological applications.

Latex is a colloidal uspension of very small polymer articles in water and is used to make rubber.

It is the second heavyweight amongst the bio crude plastics. It’s property prole is similar to polypropylene (PP).

Lignin differs from the hydrocarbons from sugars, starches and cellulose as it contains aromatic rings rather than long molecular chains.

8. Quantify the Value Proposition 8.1. Growth Chart 8.2. Value Advantage

8.1. Growth Chart

Replacement Economical Accuracy Efficiency Customization The chart shown above indicates the growth of boys and girls from age 4 to 10 years.

It displays that the height increases faster during this age group.

Quantify the Value Proposition

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8.2. Value Advantage

30% Replacement 70% Economical 95% Precision 99% Efficiency 99% Customization The chart shown above indicates a comparative analysis of the existing product versus the proposed design - TOT, based on criteria like Replacement, Precision, Efficiency, and Customization.

Quantify the Value Proposition

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9. Identify the Next 10 Customers 9.1. Potential Market 9.2. Identifying the next 10 customers

9.1. Potential Market

Veterans

Upper Limb Amputations

Young Adults

Independent Manufacturers

Doctors and Medical Centers

Athletes Broadening the focus from our end user, children with prosthetics will help in capitalizing on several areas in the market.

Identify the Next 10 Customers

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9.2. Identifying the Next 10 Customers

Upper Body Prosthetics

Veterans

Rehabilitation Centers

Athletes

Necessity Efficient Economical

Necessity Active Receives multiple prosthetics Need for variety Injured during service

Teaching patients to use product Mentally and physically rehabilitating Helping patients get back on their feet.

Active Training Inspiration Overcoming limitations

Young Adults (age (12-17)

Manufacturers

High income Families

Doctors

Efficient Necessity Becoming an adult Active Taking on more responsibility Girlfriend or boyfriend Conformity Life changes

Directly working with patients Improving quality of life Employment Craftsman

Necessity Economical Efficient Afford to customize

Improves quality of life Profession Directly working with patients

Identify the Next 10 Customers

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10. Define the Core 10.1. Our Core

10.1. Our Core

Adapt

able to adjust oneself readily to different conditions.

Looking internally at our product and what it represents, we found key characteristics that define our product and distinguishes it from competitors.

Amend

Over time these characteristics will protect and act as a launch pad to develop future products.

to remove associations of shame or disgrace.

Due to these core qualities we accommodate our customers with life changing results.

to adjust or adapt to a new climate, place, or situation.

De-stigmatize Sustainability

able to last or continue for a long time

Patent

especially the sole right to exclude others from making

Define the Core

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11. Competitive Position 11.1. 2 x 2 Matrix

2 x 2 Matrix HIGH COST

The horizontal axis shows the efficiency of the product vs the vertical axis displays the cost of the product.

This matrix helped in understanding the position of various products available in the market.

LOW EFFICIENCY

HIGH EFFICIENCY

The legs with custom made designs are expensive then regular prostheses. The high range category has prostheses that are 3D printed that increases the cost of manufacturing.

The special need prostheses are made for particular functions like running or swimming.

The position of the proposed design TOT, clearly lies towards high efficiency and medium cost range that makes it affordable. TOT also offers a custom design option.

LOW COST

Competitive Position

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12. Customer’s Decision Making Unit 12.1. Decision Making Unit

Decision Making Unit

The DMU highlights the role of customers that take behind the scenes and how they relate to one another.

Many decision made not only by the end user, but groups and individuals that can effect the out come.

The End user can be swayed by supporters, advocate and bureaucratic.

Through this process we learn more about our customers internally and externally.

Decision Making Unit

12

Decision Making Unit

End User Champion

Primary Economic Buyer

Primary and Secondary Influencer

Veto Power

Decision Making Unit

12

“TOT” is designed to help children of age 4 to 10 with transtibial amputations and direct them to have a positive experience with their prosthetics by providing an easy and economical way of replacement.

We visited the “ADVANCED ORTHOTICS AND PROSTHETICS” to learn more about the existing market and practices to collect the quantified data for defining the Beachhead Market, from the market segmentation.

The data and statistics collected from the Internet and primary sources helped in calculating the Total Addressable Market.

The research defined the involvement of Insurance companies within the payment process.

The end user being a child, a close research involving their demographics and psycho-graphics position was done to define the end user persona. The character development and story building was prepared surrounding the persona.

TOT is designed from sustainable materials which led to a better explanation for High Level Product Specification, Full Life-Cycle Use and Quantifying a Value Proposition.

Identifying Next 10 Customers and Defining the Core - Adapt, Amend, Destigmatize, Sustainability, and Patent helped in locating TOT with the existing products. This generated the Customer Unit for Decision Making.

1

4

2

5

3

6

13. Process to Acquire a Paying Customer 13.1. Mapping the Process 13.2. Sales Cycle

13.1. Mapping the Process

1.

How customers will determine they have a need and/or opportunity to move away from their status quo and how to activate customers to feel they have to do something different (purchasing your product)?

When the end user visits the doctor or a medical center (primary and secondary influencer’s respectively), the doctor can guide them about TOT and make them aware about the benefits of TOT compared to the existing products in the market.

2.

How customers will find out about your product?

The end users will discover about TOT when they visit a doctor or if they see an existing user of the product (word of mouth).

3.

How customers will analyze your product?

The advantages of TOT will help them make a choice over the existing products and hence when the user is using the product they will self analyze TOT.

Acquiring a Paying Customer

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13.1. Mapping the Process

4.

How customers will acquire your product?

When the end user visits the doctor or a medical center, the doctor takes a negative cast and prepares the final mold. Final mold is then manufactured into a final prostheses to be installed.

5.

How customers will install your product?

The prostheses will be installed by a specialized doctor in an individual setting or a hospital.

6.

How customers will pay for your product?

The customer will apply for Insurance when they place the order. Along with this they will pay a cost plus amount followed by a full amount when the prostheses is installed. Mode of payment could be cash, card or check.

Acquiring a Paying Customer

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13.2. Sales Cycle

Need

Awareness

Influencer

Choices

Decision Criteria

The end user needs TOT as it is a necessity and the doctors will guide them about TOT by discussing it’s advantages over the existing products.

The end user will discover about TOT from doctors and medical centers or from the existing users (word of mouth).

The doctors and medical centers will play a very vital role in guiding the end user towards TOT by discussing it’s advantages over the existing products.

The end user has options of choosing the existing product or TOT.

The end user makes a choice by reviewing TOT from doctors and existing users feedback.

Experience

VETO Power

Purchasing

Installing

Customization

The end user could provide a feedback while using the product to doctors or medical centers.

The insurance companies will play a vital role as well, as it is very subjective from company to company.

It also differs for the type of prostheses.

Primary economic buyer have to pay a cost plus amount and can make the total payment in form of cash, card or check.

TOT will be manufactured according to the negative cast and installed by a specialized doctor.

TOT can be customized as per the requirement and may take from 30 to 45 business days to manufacture.

Acquiring a Paying Customer

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14. Calculate the Total Addressable Market Size for Follow-on Markets 14.1 TAM for Follow on Markets 14.2 Adjacent Markets

14.1. TAM for Follow-on Markets

Follow on Markets

Total

# of Cases Per year # of Cases x $15,000

Young Adults (13-18) Upper Limb Amputations Veterans Professional Athletes USA

3,890

$58,350,000

38,948

$584,220,000

1,715

223

$25,725,000 $3,345,000

Total Addressable Market 44,776 $671,640,000 Beach Head Target Addressable Market

1,500 x 15,000

$22,500,000

TAM = $671.6 million per year The overall prosthetics market in the United States earned revenues of $1.45 billion in 2006, the estimates that number to reach $1.85 billion by 2013.

Total Addressable Market Size for Follow on Markets

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14.2. Adjacent Markets

Additional Applications

Beachhead Market Veterans

Children 4-10

Upper Limb

Adjacent Markets

MultiPurpose Athletes

Water Proof

Sports

Young Adults Growth

The adjacent markets require additional features, modifications and different strategic marketing

15. Design a Business Model 15.1. Key Factors 15.2. Business Model

15.1. Key Factors

Customer -

The end user will be a child but the paying customer will be parents, guardians or orphan homes taking care of the child.

Value Creation and Capture -

TOT is manufactured from sustainable materials, it’s expandable and offers customization while being economical at the same point compared to the existing products.

Competition -

The existing prostheses have to be completely replaced every year as the child grows and that makes it expensive compared to TOT.

Distribution -

The doctors and medical centers don’t have to recreate the negative cast every time the child comes for a replacement.

The expendable joint makes it very easy to shorten the process and this feature makes TOT very economical and adaptive.

The doctors and medical center will spent less time on the same user which gives them more time to see more users.

Design a Business Model

15

15.2. Business Model Key Partners

Key Activities

- Local Doctors - Medical Centers - Hospitals

- Build the product - Develop a network - Determine the manufacturers - Sustain Partnership - Cultivate Users - Pitch idea to investors, doctors, medical centers

- Specialized Care - Orphan Homes - Drug Stores

Key Resources

Value Propositions “No Replacement” TOT is primarily for children of age 4 - 10 years, to provide them with positive experience without replacing the entire leg.

Customer Relationship Customer Segments - Create awareness - Build connection between end user and doctor - Developing empathy after the prostheses is installed - Rehabilitation Centers

Channels

We do this by providing an expandable prostheses, - Create a network - Partnering with medical catering to the end user’s - Partner with doctors and centers and hospitals physical growth needs. medical centers - Awareness generated by - Build User Base doctors Unlike other existing - Develop and maintain - Partnering with models, TOT offers relationship manufacturers expandable prostheses, - Attract Investors - Word of mouth by that eliminates the existing users replacement process.

- Current end users - Children - Young Adults - Elderly - Upper Limb Amputations - Veterans - Athletes - Rehabilitation Centers

Cost Structure

Revenue Streams

- Manufacturers - Operations and Support Staff - Marketing (generating awareness)

- Money from Investors - Cost Plus (customer pays a set of percentage before the cost of production)

- Insurance Companies

- Post Installation Service and Regular Check-up

16. Set your Pricing Framework 16.1. Category Placement 16.2. Customization 16.3. Cumulative Cost of Replacement

16.1. Category Placement

The pricing framework is determined from the existing market, as the price for a prostheses is very subjective to Insurance companies. The price model also varies from doctors to medical centers to specialized care centers. TOT falls in the range of

$15,000 which is an approximation (as cited in Total Addressable Market).

Conventional Category

$3,000

$5,000

$8,000

TOT

$12,000

$15,000

Specialized Category

$16,500

$18,000

$20,000

Set your Pricing Framework

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16.2. Customization

The price for TOT will increase if the end user opts for customization. The customization price could increase and could range between $15,000 to $20,000, this depends on the design and time spent to manufacture the required design for prostheses.

Uncustomizable Category

$3,000

$5,000

$8,000

Customizable Category

$12,000

$15,000

$16,500

$18,000

$20,000

Set your Pricing Framework

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16.3. Cumulative Cost of Replacement

The price of TOT will decreases over the time period of 5 years. The regular medical check up plus the adjustment fee of the doctors each year makes TOT a very affordable option compared to existing products in the market.

Time for Replacement 1st Year 2nd Year 3rd Year 4th Year 5th Year

$3,000 $3,000 $4,000 $4,000 $5,000

$15,000 $1,000 $1,500 $2,000 $2,500

$8,000 $9,000 $10,000

$5,000 $5,000 $6,000 $6,000 $7,000

$18,000 $19,000 -

$12,000 $13,000 $14,000

$20,000 $22,000 -

$16,500 $17,000 $17,500

TOTAL

$19,000

$22,000

$27,000

$29,000

$37,000

$39,000

$42,000

$51,000

Set your Pricing Framework

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17. Lifetime Value of an Acquired Customer (LTV) 17.1. Revenue Generation

17.1. Revenue Generation

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Price of TOT Next Product Purchase Rate Gross Margin

$15,000 65%

$15,000 75% 65%

Profit from TOT

$9,750

$7,312.5

Yearly Maintenance Contract

$1,500

$2,000

$2,000

$2,000

$2,000

$1,500

Retention Rate Cumulative Retention Rate

100% 100%

90% 90%

90% 81%

90% 72.9%

90% 65.6%

65.6%

Gross Margin for Maintenance Profit from Maintenance

$1,500 85% $1,275

$1,800 85% $1,530

$1,620 85% $1,377

$1,458 85% $1,239.3

$1,312 85% $1,115.2

75% $984 85% $836.4

Sum of Profits Cost of Capital Rate Net Present Value Factor

$11,025 50% 100%

$1,530 50% 50%

$1,377 50% 25%

$1,239.3 50% 12.5%

$1,115.2 50% 6.25%

$8,148.9 50% 3.125%

Present Value above Cost of Capital

$11,025

$765

$344.25

$154.9

$69.7

$254.65

Next Product Purchase Rate

LTV

$12,613.5

18. Map the Sales Process to Acquire a Customer 18.1. Strategy Map

18.1. Strategy Map

Short Term Design and create a customer centric product

Saves costs by not needing to hire extra sales representatives

Team up with a manufacturer with a similar business model as Advanced Prosthetics and Orthotics. The customers interacts directly with doctor and manufacturer one location

Receive feedback from customers, manufacturers and doctors

Customers are informed about the design, function and how it sets us apart from competitors

Marketing Technique

• Word of mouth- Manufacturer/doctors will act as direct salespeople due to their role in the sales process.

Map the Sales Process

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18.1. Strategy Map

Medium Term

Long Term

Embed our product in the market by successfully accomplishing both short and medium term stages in the sales process

Creating demand & begin product improvements

Expanding channels of distribution through the relationship that has developed with the initial manufacturer and customers

Continue to develop and managing a network of manufactures and medical professionals using marketing technique such as word of mouth

Apply feedback gained from customers to evolve our product

Map the Sales Process

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19. Cost of Customer Acquisition (COCA) 19.1. Acquire a Customer

19.1. Acquire a Customer

Year 1

Year 2

Year 3

Manufacturers @ 75K each

$150,000

$300,000

$600,000

Sales Person @ 60K each

$120,000

$180,000

$300,000

Marketing Consultants

$50,000

$25,000

$10,000

Travel Expenses

$20,000

$38,000

$50,000

Patent Cost

$12,000

$18,000

$30,000

Total

$352,000

$561,000

$990,000

50

100

200

$7,040

$5,610

$4,950

Number of Customers Total COCA

Cost of Customer Acquisition

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20. Identify Key Assumptions 20.1 Identify Key Assumptions

Looking back on the earlier stages of entrepreneurial process has highlighted several key assumptions that could make or break our business venture #1. Our product is a necessity more so than a want. • Many businesses and companies design, manufacture and sell products that are more a wants than a need of customers. • Our products is a unique situation because a prosthetic limbs is more so a need than a want.

20.1. Identify Key Assumptions #2. Manufacturers/doctors will be interested in our product • Many manufacturers not only make prosthetic limbs but also have their PhD. • They see patients, get their measurements, and personally manufacturer the prosthetic.

• Manufacturers wills play a major role in the success of our product because they interact with patients, which are our customers.

Identify Key Assumptions

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20.1. Identify Key Assumptions

#3. Our product is more convenient, faster and efficient than current products on the market.

• There is a several step process when it comes time for a patient to replace their prosthetic.

• They must make an appointment to see a physician and or manufacturer for measurements so they can be fitted for their new limb.

• This process can take up to several weeks, and be costly.

#4. Our product will save customer money.

• Children are constantly growing and every few months need new shoes, clothes, etc.

• The same applies for children with prosthetic limbs. Per year, shoes and clothes may cost hundreds of dollars, where a prosthetic limb cost thousands. Multiply that by the several replacements perhaps in a single year. With our design, there is only the initial purchase and as the child grow the prosthetic can be adjusted.

Identify Key Assumptions

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20.1. Identify Key Assumptions #5. Our product will help children with the stigma of having a prosthetic limb, provide courage, create a positive experience and function as designed • One can imagine how hard it must be being a young child with a prosthetic limb. Going to school and socializing with other children for the first.

• At home the child’s family makes them feel like they are no different than anyone else.

• They may not receive the same sort of treatment from other children and become very aware of their differences.

• This experience can be extremely difficult not only for a child but for anyone.

Identify Key Assumptions

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21. Test Key Assumptions 21.1 Test Key Assumptions

21.1. Test Key Assumptions

#1. Our product is a necessity more so than a want.

Want : to desire or wish for (something) Necessities: an indispensable thing that everyone clearly needs just to survive, such as food, water, shelter, and clothing.

• A need is something that is necessary for an individual to live a healthy life.

• Needs are distinguished from wants in that, in the case of a need, a deficiency causes a clear adverse outcome: a dysfunction or death.

• Needs can be objective and physical, such as the need for food, or psychological and subjective, such as the need for self-esteem.

• There are also needs of a social or societal nature.

• If 91 percent of American believe a car is a necessity, than what percentage would believe That limb is a necessity and not want or luxury Test Key Assumptions

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21.1. Test Key Assumptions

#2. Manufacturers/doctors will be interested in our product • Advanced Prosthetics and Orthotics is a local a manufacturer here in Savannah. Buddy, the manufacturer at APO is a licensed prosthetics, orthopedist and has his Ph.D. We interviewed him and gave us a tour of his medical office and work shop.

• The mission of Advanced Prosthetics and Orthotics, “to operate a private business guided by our Christian beliefs. Provide prosthetic and orthotic patients of Savannah and the surrounding areas with access to the latest advances in technology and devices in a local facility at an economical price while maintaining relationships with our patients and referral sources that demonstrates our motto “service above self” in order to offer the best possible care for our clients.”

• Buddy was intrigued our business venture an encouraged us keep in contact and open to future possibilities.

Test Key Assumptions

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21.1. Test Key Assumptions #3. Our product is more convenient, faster and efficient than current products on the market.

Current Products

Our product

• a new amputee, will begin the fitting process following a series of rigid casts and applications for a prosthetic on average 6-8 weeks following surgery.

• Several visits are required and involve casting, measuring, diagnostic fittings and training in how to use and care for your prosthesis.

• The time from casting to delivery typically takes 4-5 visits over the course of about a month. Several visits for adjustments with the prosthetics as well as training with a therapist.

• Depending on age, activity level and growth, a prosthetics can last anywhere from several months to several years.

• Prosthetics may need minor repairs or maintenance, which can last for an average of three years.

Prostheses is a very expensive and a time consuming operation, which motivated us make it more efficient and economical to suit the growing needs of young children.

Kids can grow up to 4 inches per year and their bodies are constantly changing (volume and weight), causing the need for replacing their prosthetic several times before the age of 10.

Test Key Assumptions

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21.1. Test Key Assumptions

#4. Our product will save customer money. • Current prosthetics on the market can cost anywhere from $5,000 to $50,000 for a single application

21.1. Test Key Assumptions #5. Our product will help children with the stigma of having a prosthetic limb and

will them with provide courage, and create a positive experience.

TOT� is designed to help children of age 4 to 10 with transtibial amputations and direct them to have a positive experience with their prosthetics by providing an easy and economical way of replacement.

Goals of our design are helping children with these experiences and for this to happen our design must hold up under the wear, tear and abuse a child would put on it. Allowing the user to participate in everything from day to day activities to playing soccer and basketball with their friends, hopefully forgetting their differences from time to time.

22. Define the Minimum Viable Business Product (MVBP) 23. Show that “Dogs will Eat the Dog Food” 24. Develop a Product Plan

22. Define the Minimum Viable Business Product (MVBP) 22.1. Assumption for Minimal Payment

22.1. Assumption for Minimal Payment

TIME

MONEY

EXPERIENCE

End-User and Doctor

End-User

End-User and Doctor

The end users prefer the prostheses to be an easy replacement option for them.

It also saves time for doctors.

Replacement each year (children) and every two or three years (adults) is a very costly process.

The child end users will have a positive experience after installing the prostheses.

Positive feedback makes doctor feel rewarded as well.

The time required to replace is eliminated by TOT.

The expansion joint in TOT will eliminate the cost of complete replacement.

A positive experience after using TOT will be the key addition to our business.

The feedback taken from the existing users and doctors will help us develop other related products to cater amputations on a larger scale.

Minimum Business Viable Product

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23. Show that “The Dogs will Eat The Dog Food” 23.1. Analyzing and Understanding Drivers

23.1. Analyzing and Understanding Drivers

Survey A primary survey was conducted asking the end-user about the amputation and their prostheses.

The end users prefer not to talk or discuss about their amputation to a strange. However they were comfortable talking to their doctor and giving a feedback for the prostheses.

Restriction A prototype testing will require funds from investors and if the end user pays cost plus amount, we can test.

The end user prefers to make a decision for choosing the existing product as they are confident and have heard about it from existing users.

The Dogs will eat the Dog Food

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24. Develop a Product Plan

TOT will start catering to the beachhead market - the children.

Post-installation service and regular check-up will be done to keep track of the customer and feedback will help in improving TOT.

Addressing to follow-on markets Young Adults, Veterans, Professional Athletes and Upper Limb Amputations.

Partnering with more doctors and manufacturers around the country to build a team to cater large number of end users.

The expansion will help in getting more feedback from the users which will generate more ideas for expanding the product range Upper Limb Amputations, Crutches, Wheel Chairs, and many more.

All the above will be achieved by creating a bigger network, pitching to investors, cultivating more users and sustaining partnerships.

Develop a Product Plan

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TOT Thank You IDUS 733 Entrepreneurship for Designers Professor John Schaffeld Joe Motzkin

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Jay Prajapati