#wolffcenter

[texotechnology-blog]

Blog #8

SECTION 1: Unit Economics Diagram: follow the jersey square example and format

Year 1: Revenue → $0

*In year 1, we will not be making any sales because our prototype for the exoskeleton will be finished by the end of 2019.

Year 2: Revenue → $50,000

Exoskeleton Cost → $23,030

Training Cost → $7,000 for physical therapists

Customer Acquisition Costs → $1,000

Medical Device Liability Cost → $130

Unit Cost → $31,160

Net → $18,840

SECTION 2: Updated Business Model Canvas: Make final updates and posts

SECTION 3: Summary

Tell the story of your initial opportunity idea when this process started:

The technology was introduced us as something that can help rehabilitate children between the ages of 4 to 8 with Cerebral Palsy. We saw the potential for this technology to be used for greater rehabilitation purposes outside of the initial market. For example, targeting the entire lower limb physical therapy market. We saw potential for our device to help a patient with anything from an ACL tear to full lower limb support. The technology can capture the patient’s progress in quantifiable data and communicate it via a software integrated platform. This puts the analytics behind traditional physical therapy, where the patient’s progress has been based on feeling.

Tell the story of the key customer interviews or research that has driven business model decisions:

While conducting customer interviews, we met Samantha and her family. Her parents were astounded by her progression with our technology. The parents constantly asked when the technology will be available. This has given us motivation to push forward as a team for FDA clearance. Similarly, Hanger Clinic has shown interest in purchasing our technology for research purposes. This is excellent validation for the short term objective explained below.

Tell the story of how your business model has changed:

When we first started, the technology was introduced as an exoskeleton for children. Through our research, we identified the problem, solutions, and the value propositions of the technology. We attempted to find many market fits in how this technology could work for children, and pivoted to focusing on children with CP on the ages 4-8 through the current patent of the exoskeleton. The 4 to 8 age timeline is the most critical timeline for a child to develop their natural gait. We then conducted interviews with doctors and potential customers about the technology to see if this was something that could be beneficial to both parties. So far, the feedback we got the most is how is this technology is going to be covered through insurance. At first we were looking at selling directly to the consumer, we then understood that we would have a greater success rate at rehabilitation centers and hospitals. Finally, we’ve implemented a long term and a short term strategy for our technology that are supportive of one another. The short term objective is to sell to research centers across the nation. We have identified that we are able to operate and sell to purely research based partners without FDA approval. This short term goal also allows us to develop traction in the rehabilitation marketplace for our eventual FDA approval. Upon receiving clearance, we will leverage our partnerships with rehabilitation centers to begin selling to our target customer.

[djkrooks]

@wolffcenter Induction Night was amazing! Proud to finally be inducted into the class of 2019 🙌🏽 S/o to the Wolf Workout Squad and all of my other 35 amazing family members 💪🏽 #5amBoyz #WCE2019 #WolffCenterForEntrepreneurship #entrepreneur #entrepreneurship #universityofhouston #uhwce #hustle #picoftheday #uhdj #collegeentrepreneur (at Wolff Center for Entrepreneurship)

[thereinventions]

Step right up, folks! There's a new tequila in town, and it's called @casamigos tequila. Buy a ticket and get a taste of this celebrity-owned spirit. All proceeds will go toward the students of the @uhbauercollege Wolff Center for Entrepreneurship. Hit me up and I'll connect you to Anthony A. for tickets. #WolffCenter #DrinkForACause #CasamigosTequila #Casamigos

[texotechnology-blog]

Blog #7

SECTION 1: Key Partners

What partners do you need?

Materials Engineer

Material Supplier (Markforged: 3D printing company)

Hospitals (Shriners)

Why do you need them and what are risks?

To reach our full potential in business model, it can be a vulnerable experience to invite partners into what we are doing. Here are just a few reasons why:

Faster time to market

Broader product awareness

Unique customer knowledge and expertise (most likely focused on Research Center → collect and maintain data resource

Why will they partner with you?

Bringing steady stream of business to both the material engineer and the suppliers while contributing to a meaningful cause

Hospitals will partner with us because we will be able to provide their rehabilitation centers with quantitative data for them to further develop their research.

What are the benefits for an exclusive partnership?

When Hospitals use our technology to quantify and organize their data, they will be more efficient, and better equipped for technological advancements compared to other Hospitals. 

SECTION 2: Customer Validation

Contact at least 5 customers (or research examples) to validate your revenue model (Provide summary of findings)

Dr. Glendaliz Bosques (Shriners Children’s Hospital, UT Health): “ Prepared to oversee clinical testing at Shriners Hospital motion analysis laboratory”

Dr. Paolo Bonato (Wyss Institute, Harvard, Spaulding Rehabilitation Hospital, Boston MA) Clinical studies with children with cerebral palsy: “Prepared to test device in clinical setting at Spaulding Rehabilitation Hospital motion analysis laboratory”

Jared Howell - Baylor College of Medicine, Program director – Orthotics and Prosthetics Program: “Could be greatly beneficial to target population’s gait development and may reduce the need of wheelchair use in adulthood”

Kevin Matthews - Advanced Orthopaedic Designs (San Antonio TX) Orthotic and prosthetic development for children with cerebral palsy: “Could greatly accelerate developmental progress of healthy gait pattern”

Talk to actual partners to validate key partner information (Provide summary of findings)

Hanger Clinic (Prosthetics and Orthotics)

Top 100 Forbes America's Best Small Companies

Interested in licensing exoskeleton

Maxon Motors

Top 20 Electric Motor Manufacturers in the World 2018

Interested in manufacturing actuation assemblies (motors/gears) based on our patented design

**Hanger, Inc.,(United State, founded 1861), formerly Hanger Orthopedic Group, Inc., is a provider of services and products that enhance human physical capabilities. The Company provides orthotic and prosthetic patient care services, distribute orthotic and prosthetic (O&P) devices and components, manage O&P networks, and provide therapeutic solutions to the post acute market. It is an owner and operator of orthotic and prosthetic patient care centers in the United States and a distributor of O&P products in the United States. The Company operates in three segments: patient care services, distribution and therapeutic solutions. As of December 31, 2011, Hanger Orthopedic Group, Inc. operates in excess of 700 O&P patient care centers located in 45 states and the District of Columbia and six located distribution facilities. #99 - America's Best Small Companies in 2012

**Maxon Motors (Switzerland, founded 1961): With more than 40 years of experience, constant innovation, cutting-edge products and competent customer service, Maxon Motors has become one of the world-leading suppliers of high-quality drive systems. Maxon Motors provides innovative solutions at an appropriate price-performance ratio for several applications in various markets, including medical technology, automotive, aerospace, industrial automation, security technology, instrumentation and consumer applications.

[texotechnology-blog]

Blog #6

Target Market

Rehabilitation Centers and Hospitals

U.S. Market - 1500 preschool aged children diagnosed with CP/year.

Estimation of 20% of these children = 300 of these children/year

Package

Reusable Exoskeleton - 3D polymer.

Product development

Inventor and his research team (5+ people)

3+ years to develop

Sales

After FDA approval timeline (depending the classification)

Personnel

Average salary of $40K

Financing

Raised $350,000 (Product Development)

Asking for $110,000 to collect safety and effectiveness data to support pre-market notification submission   

COGS (including expenses): $35K per unit Selling price: $60K through direct sales in hospitals/rehab centers/research centers. Potentially be covered through insurance.

Draw your diagram of payment flows:

What’s your revenue model? 

While our products assists families and their children that need low limb physical therapy, we have identified our buyer as being rehabilitation centers, research sites, and hospitals. We will gain these customers segments into our portfolio by using personal sales showcasing our products and educating the therapists on how they can use this technology with their patients.

How will you price your product? Provide numbers ($$$) for each step

We plan on getting the word out about our product and connecting to these buyers via personal calls and in person meetings. In January of 2019, we are prepared to start this process of in person meetings and calls.

What are your key financials?

$50,000 per unit price - $25,000 cost per unit = $25,000 profit per unit (50% gross margin)

Insurance companies are key in delivering an affordable solution to buyers

How do competitors price?

Pediatric LiteGait models start at less than $2,500

Marsi Bionics - estimate $50,000 per unit

[texotechnology-blog]

Value Proposition Canvas

Ranking:

1. Results & Feedbacks  a. SMART Joints

2. Efficient Process and Physical Therapy a. 3D Printing: Saves production time & cheaper material b. User Friendly (an easy software usage for doctors and patients to understand feedback) c. Initial Measurements

3. Diagnosis a. SMART Joints 

What we learned:

Before completing the Value Proposition Canvas, we were all skeptical of who is our customer segment. Finally we decided that we’re targeting doctors and rehabilitation centers because our direct customer is children ages 4-8, we can’t directly have service with them. So doctors and rehabilitation centers would be the customer segment that will relief their pains and generate their gains. By completing the exercise, we concluded that the SMART Joints has the advantage to overcome all pains and generate gains for the customer profile. It is important to let our audience know why the SMART Joints are important because this are our competitive advantage for the technology.

Template

Our exoskeleton helps doctors and rehabilitation centers who wants diagnostics, physical therapy, results & feedback, and efficient process by eliminating personal feedback and increase muscle regeneration.

[texotechnology-blog]

Detailed Description of the Technology

An exoskeleton that uses EEG technology to assist patients from ages 5 to 10 years old regaining assisted mobility in their lower limbs.

Our model has customizable braces that can be adjusted as the child grows. The production process of our technology takes about 3 days or less to be 3D printed. The initial measurements taken from our patients require no invasive procedures and takes less time compared to our competitors.

The original exoskeleton is patented, but the new and upgraded version has a patent pending.

[texotechnology-blog]

Our Value Proposition

Our exoskeleton helps rehabilitation centers achieve a more efficient process to aid children with lower limb injuries, by reducing the production time for an exoskeleton to be made in order to produce a faster turnaround for rehabilitation centers, which saves time and money, unlike the outdated methods of our competitors’ exoskeletons.

[djkrooks]

#TBT when I was working on the #UHBeyonceGiveAway set at @megadjcenter 🐾 With school around the corner, I look forward to working and learning from my @wolffcenter family. Especially my Wolff Fest Team @dejacoogs & my @amazon Team 🤘🏽 #southernvibez #houstondjs #houstondj #houston #djpodcast #podcast #djmixshow #djcity #djcitytexas #bpmsupreme #clubkillers #dj #djlife #megadjcenter #soulection #openformat #turntablism #chillout #hiphop #serato #genrebndr #realdjing #turntablism #gopromusic #music (at Mega DJ Center)

[texotechnology-blog]

Blog #5

Channels & Customers Relationships

Through which Channels do our Customer Segments want to be reached? We will focus on direct. We will directly deliver the product to the customer as a way to show and present the benefits of our exoskeleton.

How are they being reached now? Most (adult) exoskeletons in the market are using the same channels as we. We will use all platforms possible to reach our niche market and extend it to the children.

Which Channel is most cost-efficient? We believe having the direct sales force by ourselves is going to be cost efficient because our technology requires client testing and trials for patients.

How are your Channels integrated with customer routines? Since our customer consists of rehabilitation centers and hospitals, our customers would not be directly integrated through our channels. We would be seeking out customers directly through in-person meetings and direct sales.

How do you create end user demand? We will create end user demand by providing an efficient rehabilitation solution. We will provide quantifiable, real time data that will give the end user the valuation of their progress. This will provide the patient motivation to continue the rehabilitation process, and therefore provide a great value to the end user.

How is demand creation different for your different channels? Our demand creation is different from our competitors, which provides an extended competitive advantage to our product, and channels to deliver it. With our direct sales channel, we plan on creating demand through scheduling in-person meetings and phone calls with potential customers.

Evangelism vs. existing need or category? From what we researched, here in the USA, we are the only product that is available in the market, targeting children suffering from cerebral palsy. There are existing products outside the U.S. though like Marsi Bionics (Spain), but as of this point, TEXO Technology is the only one focusing and delivering the product to this niche market.

Interview 5-10 people in your channel (sales, marketing, etc.) What kind of initial feedback did you receive?

Companies interested:

Hanger Clinic (Prosthetics and Orthotics): They are interested in our licensing exoskeleton

Maxon Motors: They are interested in manufacturing actuation assemblies (motors/gears) based on our patented design

Feedback from clinical experts in field:

“Prepared to oversee clinical testing at Shriners Hospital motion analysis laboratory” - from Dr. Glendaliz Bosques: (Shriners Children’s Hospital, UT Health)

“Prepared to test device in clinical setting at Spaulding Rehabilitation Hospital motion analysis laboratory” - from Dr. Paolo Bonato: (Wyss Institute, Harvard, Spaulding Rehabilitation Hospital, Boston MA) Clinical studies with children with cerebral palsy

“Could be greatly beneficial to target population’s gait development and may reduce the need of wheelchair use in adulthood” - from Jared Howell: Baylor College of Medicine, Program director – Orthotics and Prosthetics Program

“Could greatly accelerate developmental progress of healthy gait pattern” - from vin Matthews: Advanced Orthopedic Designs (San Antonio TX) Orthotic and prosthetic development for children with cerebral palsy

During the process of interviewing doctors and rehabilitation centers, the usual feedback we got is “what a great idea!” and “Wow, how does it work?” When talking to the doctors, they also mentioned many questions involving about insurance, like “Do insurance cover this?” or “What codes do insurance going to be covering it”?

What are the entry barriers?  One of our biggest entry barriers is our FDA approval that could take various years. This could set us back 5-7 years, and it is one of the biggest doubts when pursuing this business opportunity. Based on feedback, the second barrier to entry would be the topic of insurance. Since this technology is relatively new to the market, there is uncertainty on whether insurance companies would cover a medical device like our exoskeleton.

Does anything changes about your Value Proposition or Customers/users? Not much. Our technology has a self explanatory proposition and most changes we received falls into place of what we currently have.

Does your product or proposition extend or replace existing revenue for the channel? It does extend our revenue channel! Because our technology is involved with many

What is the “cost” of your channel, and its efficiency vs. your selling price? The cost to manufacture our exoskeleton is around $25K, and to deliver it is unknown at the moment. The price we going to sell it is around $50K or more. This can encounter whether insurance companies would be willing to work with hospitals or rehabilitation centers and create a code that is designated for exoskeletons.

[texotechnology-blog]

Customer Interviews

Section 1

We’ve researched throughout the summer about possible assumptions of how the exoskeleton would work. Because it is a very niche market in the U.S., we’ve researched outside of the country and have looked over at international companies. We’ve found several companies outside the market that does create exoskeletons for children. For example, Marsi Bionics (Spain): they are focusing on the same customer segment and provide similar designs of materials for the exoskeleton. So far, the product itself is self-explanatory. The problem is how effective and how this will generate money. Assuming that our pediatric gait exoskeleton will be successful through rehabilitation centers and hospitals, being covered through insurance, we’ve conducted several interviews with doctors, patients, and parents about some of the current problems children face with lower limb injuries. As a disclaimer, we avoided any discussion about our product in order to progress our business model through evidence and feedback.

Section 2

Here are some doctors responses to our questions

What do you use to assist pediatric patients with mobility?

Orthoses

LiteGait for locomotive training assistive devices, otrhoses (AFO, KAFO, etc.) 

Rolling walkers, canes, treadmill

The primary patient population (CP) is assessing movement and assisting treatment planning and medical team. Management can include: tone management, orthotic management, rehab, orthopedic or neurosurgery

How do you measure the effectiveness of the above options?

NRS (neuro recovery scale), 6 minute walk test

Pre and post treatment studies in the MAC. measurements of 3D motion, spatial temperature parameters, pedobarograhy, O2 consumption

What do you feel is the biggest issue(s) with the above options?

Cost, time intensive, shill to collect and interpret data

Difficulty achieving high number of reps, required effort from therapist, inconsistency with reps

Cumbersome, putting together wheelchair is hard work, Stander is stationary, very limited movement

Small size of patients. Limitations of footwear. Should be more involved in presentations. Sometimes a lack of parental support

Time. Also difficult to do training for the therapists(bad biomechanics for therapist) 

How do patients usually pay for devices?

Insurance, mostly. Children with a more severe problem will use medicaid. (CP, SB, etc.)

Paid by insurance or Shriners charity fund 

There is some reimbursement for this service, but largely unfunded.

Should be included in session charge

Also conducted a interview with a parent that have a child with CP

Child uses: braces, standing frame, wheelchair

Do you have concerns with the current situation? Scoliosis, improper fit, outgrowing/growing too fast, lying in bed, sitting in wheelchair doesn’t help normal bone growth, and strengthening or increase/decrease in muscle time

What are you biggest challenges you face with your current solution? Cumbersome, putting together wheelchair is hard work, Stander is stationary, very limited movement

Have you investigated other options? If so, which options appeal to you and why? Upsee, taking steps is so imperative to his growth and helps motor development, but it requires a lot of parental help and can only be used through a certain size before it become detrimental to the person wearing it.

Section 3

We have concluded from the interviews that our hypothesis is moderately correct, with a few data points to modify. All doctors approve in using modern orthopedic devices, canes, and treadmills. As we expected in our hypothesis, most doctors currently use these methods to aid children with cerebral palsy and lower limb injuries. We have also concluded from the doctors that they face different obstacles that can be challenging through the process. While each doctor had a different view of the obstacles, it is safe to say that these were expected in our hypothesis. Also, we have learned that many of these doctors manage the financials through insurance like MediCaid, funds, or reimbursement. This leads to the assumption of how can we structure the revenue block in order to generate a profit once we launch.