These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for a real-time microbial detector from Instant Bio-Scan. This detector provides real time information on the existence of microbes in water using a laser- and photo-sensor-based system. Photo-sensors can identify microbes faster and with higher accuracies than can conventional systems that may take weeks before an analysis is done. Instant Bio-scan is targeting water treatment and pharmaceutical plants.

1. Business Model for Instant Bioscan
“Real Time Microbial Detector”
Cheng Kah Heng A0082075H
Shahnawaz Pukkeyil Shamsuddin A0098486H
Ho Wai Chi, Gary A0082062N
Tan Tze Chung Christopher A0046244L
Jason Fan Yang A0098546M
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2. Presentation Outline
2
Introduction Company Profile Industry Background
New
Technology
Working
Principle
Value Proposition
Market
Segment
Customer
Classification
Customer Selection
Value Capture
Scope of
Activities
Strategic Control
Future Activities Customers
Conclusion

3. Company Profile
 Founded in 2011
 CEO cum Founder Steward Manzer
 Private held with 50 employees
 Located in Tucson, Arizona, USA.
 Specialized in Water Monitoring System
 Primarily operates in Navigational, Measuring, Electro-
medical, and Control Instruments Manufacturing Industry.
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4. Background
Need for Real Time Monitoring System
Estimated number of waterborne illnesses in the U.S. is 19.5 M/yr
4.1% of global diseases are accounted by waterborne parasites.
1.8 Mhuman deaths annually.
http://www.who.int/water_sanitation_health/diseases/burden/en/
http://www.epa.gov/nheerl/articles/2006/waterborne_disease/waterborne_outbreaks.pdf
OUTBREAKS OF WATERBORNE DISEASES, European Environment and Health Information system
Common causative agents
Bacteria 44.9%
Viral agents 37.5%
Protozoa 4.7%
Chemical contamination 0.2%
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5. Background
Need for Real Time Monitoring System
http://www.epa.gov/nheerl/articles/2006/waterborne_disease/waterborne_outbreaks.pdf
2-7 days
5
Lack of real time feedback for microbial presence in water treatment process
Water Treatment
Process
Sensor
IN OUT
Feedback
-
+

6. Background
Collecting
water sample
Water Treatment Plant Control Points Recreational Facilities
Conventional Technique – Water Sampling
6

7. Collecting
water sample
Transporting
to Lab
Central Laboratory Water Sample
Background
Conventional Technique – Sample Transportation
7

8. Collecting
water sample
Transporting
to Lab
Preparing
water sample
Filtration Centrifuge Chemical Staining Culturing Bacteria
Background
Conventional Technique - Sample Preparation
8

9. Collecting
water sample
Transporting
to Lab
Preparing
water sample
Inspecting under
microscope
Cultured Bacteria Observe under microscope Counting Bacteria
Background
Conventional Technique – Sample Observation
9

10. Collecting
water sample
Transporting
to Lab
Preparing
water sample
Inspecting under
microscope
High Cost Long processing period Human Error Low Accuracy
Background
Conventional Technique
10

11. Instant Bioscan - Products
Instant Bioscan – Real Time Monitoring Products
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RMS-UM
Portable Version
RMS-ON90
Onsite Version
Optical Technology Instantaneous result Inert vs. Biologic

12. Instant Bioscan - Products
Instant Bioscan – Working Principle
Measures Universal “Bio-markers” (NADH and Riboflavin) in Bacteria and Fungi.

13. Value Proposition
Instant microbial detection
- Within seconds
Low cost Testing Cost
-No Transportation
-No Chemical
-No Trained technician
-Reduce inventory
-Decreased capital cost
Reduce human error
-Reduce Loss of sample
- Increase accuracy
Remote monitoring
-Network connectivity
-Automation
-Low maintenance
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RMS-ON90
RMS-UM

14. Competition
Instant Bioscan vs. other microbial detectors
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Remote
monitoring
Sample
Preparation
Chemical Free Capital Cost Identification
of Microbes
Instant
Bioscan YES NO YES LOW NO
PCR/DNA/
Genome NO YES NO
HIGH -
MODERATE
YES
Flow
Cytometry NO YES NO HIGH YES
ATP
bioLuminescence NO YES NO LOW YES

15. Customer Selection
Market Segment & Customer Classification
Food and
Beverage
Plants
Testing
Labs
Health &
Beauty
Plants
Pharmaceutic
al Plant
Homeland
Security
Water
Treatment
Plants
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Customer
With Most
Money Base
(High/Low Demand)
Customer
Need Base
(High Demand)
Customer
Want Base
(Low Demand)

16. Customer Selection
Water Treatment Plant Pharmaceutical Plant
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17. Customer Selection
Demand in Water Treatment Industry
Legislation from European Union and US EPA Directives
•Water Framework Directive
•Environmental Liability Directive
•The Registration, Evaluation,
Authorization and Restriction of Chemical Substances Directive (REACH).
Increasing Cost of water monitoring
Increasing trend in adopting online monitoring
•78.9% of the utilities around the globe use some form of online monitoring tool
http://www.ewa-online.eu/tl_files/_media/content/documents_pdf/Publications/E-WAter/documents/2_E-Water_Namour_et_al_2012_corr.pdf
http://water.epa.gov/infrastructure/watersecurity/lawsregs/initiative.cfm
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18. Customer Selection
How can IBioScan reduce cost in Water Treatment Industry ?
Activity Cost per day
Sample Collection & Transportation SGD 400
Sample Preparations, Chemicals Reagents SGD 900
Trained Technician SGD 66
Other equipments and consumable SGD 200
SGD 1566
•Cost calculation of microbial monitoring in water industry.
•The cost is based on detection of 3 specific type of microbial.
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Cost for year if tests are conducted 2 times per day SGD 1 million

19. Customer Selection
How can IBioScan reduce cost in Water Treatment Industry ?
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20. Customer Selection
How can IBioScan reduce cost in Water Treatment Industry ?
Unit Cost SGD 60,000
Cost of 3 unit per Plant SGD 180,000
Recurring cost per year SGD 130,000
Pay back time 6 months
Yearly savings SGD 900,000
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21. Customer Selection
Demand in Pharmaceutical Manufacturing Plant
Initiative from FDA
•Process Analytical Technology initiative (PAT)
• Pharmaceutical cGMPs for the 21st Century initiative
Increasing Cost of microbial monitoring
Reduction in manufacturing time
Draft Guidance for Industry, PAT – A Framework for Innovative Pharmaceutical Manufacturing and Quality Assurance, FDA (2003).
Draft Guidance for Industry, Formal Dispute Resolution: Scientific and Technical Issues Related to Pharmaceutical CGMP, FDA (2003)
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22. Customer Selection
How can IBioScan reduce cost in Pharmaceutical Manufacturing Plant ?
Regular Monitoring USD 3.2 million
Est. saving from Real time monitoring USD 1.8 million
6 units per plant USD 300000
Pay back time 3 months
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23. Trail run to evaluate
•Revenue from rent of machine
•Recurring revenue from
•Consumable
•Service
•Revenue from sale of machine
•Recurring revenue from
•Consumable
•Service
Value Capture
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Direct Sales
Lease
Trial

24. Future Value Capture
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Direct Sales
Lease
Trial
Service
License
•Revenue from
service provided
•“Pay as you use”
model
•Revenue from
Licensing fees
Service
License

25. Current Scope of Activities
Vertically Integrated
Technology
Improvement
Product
Development
Manufacturing/
Assembly
Marketing
And Sales
Local
Distribution
After Sales
Services
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26. Future Scope of Activities
Vertical Disintegration
Technology
Improvement
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Product
Development
Manufacturing / Assembly
Marketing
And Sales
Local
Distribution
After Sales
Services
Customer
Out-Source

27. Strategic Control
US and international patents
• 1 Patent in Optical Technology
• 1 pending critical design patent
• Obtained Freedom to Operate
(FTO) position from counsel
Future Alliances
• Currently Serving 3 of the top
25 pharmaceutical companies:
Baxter, Novartis, Pfizer
USEPA Compliant
• Mohawk Valley Water
Authority (US EPA
approved facility)
• ~ 1 year for approval
FDA Compliant
• 1-3 years for approval
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28. Future Market Segment
CUSTOMERNEEDS
CUSTOMER TYPES
ARTICULATEDUNARTICULATED
SERVED
UNSERVED
Rural Areas
Recreational
Facility
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Food &
Beverage

29. Future Potential Markets:
Rural Areas
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30. Source: World Health Organization
Future Market Segment
Rural Areas - Global Sanitation Coverage
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31. Source: World Health Organization
Future Market Segment
Rural Areas - Global Drinking Water Coverage
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32. No more open defecation.
Safe water in homes.
Sustainable water sanitation
and hygiene
Inequalities in access
eliminated.
Source: World Health Organization
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WHO Post 2015 Target

33. 1) Laboratory testing
2) Field Test Kits
Field Test Kits
Manual
Non-Continuous monitoring ~24 hours
per test
Shelf life 6 months
Estimate cost per year ( testing
3 times daily)
US$6000
Trained Technician (per mth) US$2000
Expenditure per year US$30,000
Future Market Segment
Rural Areas – Current method of monitoring
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34. Future Market Segment
Rural Areas – Utilizing IBioScan for field testing
IBioScan Device
Automatic
Continuous monitoring 2-5 mins
Cost of device US$5000
Estimate cost per year for
consumables
US$12000
Savings (per year) US$18000
With smaller, portable battery operated
model of RMS-W specially developed for
the rural areas:
• Cost of device can be reduced by 10
times to $5000
• Savings in capital cost ( no need for
laboratory)
Attractive for WHO to implement in rural areas as it offers savings in
assessment time , cost per test. And it offers a more sustainable form
of monitoring. 34

35. Future Potential Markets:
Food & Beverage
35

36. 36Source: Sonia Francisco & Anand Gnanamoorthy, Frost & Sullivan
Future Market Segment
Food & Beverage

37. 37Source: MarketsandMarkets
Future Market Segment
Food & Beverage

38. Future Market Segment
Demand in F & B Manufacturing Plant
• Initiative from FDA
FDA Food & Beverages Rules and Regulations
• Increasing Cost of microbial monitoring
• Reduction in manufacturing time
• Reduction in excursion materials being shipped out
Draft Guidance for Industry, PAT – A Framework for Innovative Pharmaceutical Manufacturing and Quality Assurance, FDA (2003).
Draft Guidance for Industry, Formal Dispute Resolution: Scientific and Technical Issues Related to Pharmaceutical CGMP, FDA (2003)
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39. 39
Future Market Segment
How can IBioScan reduce cost in F & B Manufacturing Plant ?
Soft drink bottling or manufacturing involves five
major processes, each with its own safety issues that
must be evaluated and controlled:
1. Treating water
2. Compounding ingredients
3. Carbonating product
4. Filling product
5. Packaging.
Source: http://www.solarnavigator.net/solar_cola/soft_drink_canning_process.htm
Regular Monitoring USD 3.2
million
Est. saving from Real time
monitoring
USD 1.8
million
6 units per plant USD 300000
Pay back time 3 months

40. Future Potential Markets:
Recreational Parks
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41. Future Market Segment
Recreational Parks
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• Public Swimming Pools
– 24 Swimming Pools1 in Singapore
• Water Theme Park
– Wild Wild Wet, Sentosa Watercove2 etc

42. Future Market Segment
Recreational Parks
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• Chemical1 (trichloramine and cyanogen
chloride)/Bacterium2 generated by human usage
through pee
• Rainfall affecting water quality of pool
• Debris from around the yard, such as leaves, flowers,
grass and dust.
• Dead/Decomposed wildlife – for example, lizards or
insects that occasionally drown in your pool.
1http://arstechnica.com/science/2014/03/study-finds-pee-in-pool-water-yields-toxic-byproduct/
2http://www.medicaldaily.com/7-disgusting-facts-about-dirty-public-swimming-pools-246965

43. Future Market Segment
Recreational Parks– Current method of monitoring
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• Typically through Litmus strip method
• Test conducted Monthly1
• Non Real-time
• No test done on water chemical and bacterium (E. Coli)
• A Health Hazard to Human Health

44. Future Market Segment
Recreational Parks
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•Lower Cost
•Assurance to Public Pool user on Water quality
•Less Transmission of Infectious diseases
Key Consideration: Swimming Pool Testing
Conventional versus Instant BioScan

45. SWOT Analysing
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Conclusion
Strength
•Instant and accurate detection
•Low cost
•Remote monitoring
Weakness
• No microbial species identification
• Limited standard recognition
Opportunities
•High potential performance
•Huge potential market need
Threats
•Product detection reliability
•Competition of similar new products
•Public acceptance growth

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