Business case study for the Runsafe program at the University of California at San Francisco (UCSF) to explore the commercial viability of their technology.

1. RUNSAFE CASE
STUDY
Data Driven Decision Making

2. RunSafe™ is a medically-based, high-end,
add-on injury prevention and performance
improvement program for running.

3. UCSF CTSI – Catalyst Program
◉ Hired by UCSF (2011)
◉ Evaluate technology and business,
◉ Mentor key players, and
◉ Design a phased customer development plan.
http://ctsi.ucsf.edu/catalyst

4. Created by Dr. Anthony Luke M.P.H., M.D.
Board certified in primary care for sports
medicine:
◉ UCSF Concussion and Brain Injury Program,
◉ UCSF Human Performance Center,
◉ UCSF Sports Medicine Center, and
◉ UCSF RunSafe Clinic.

5. Evaluation Services
3D Motion Evaluation
- Data Collection,
approximately 1 hour.
- Analysis, approximately
1/2 hour with a Dr. or
trained medical student.
- Recommendations,
provided in a report
encouraging changes in
the clients motion and
habits.
Physical
Therapy
The goal of the
physical therapy
screening is to
conduct a screen
of strength,
flexibility, range of
motion, and
balance/
proprioception
tests as they
relate to potential
injuries for
runners.
Nutrition
The purpose of
the nutrition
screening is to
help the client
learn how
nutrition can
optimize both
their
performance
and recovery.
Foot and
Footwear
The goal of the foot
and foot wear
screening is to
evaluate the
morphology of the
foot, discuss with
current footwear,
periodic or chronic
problems, and teach
clients how to best
select footwear that
match their habits,
needs and goals.

6. SWOT ANALYSIS
S
O
W
T
Strengths
- Expertise.
- University support.
- Customers.
Opportunities
- Univ. partnerships.
- Licensing.
- Derivative products
and services.
Weaknesses
- Lack of startup
experience.
- University involvement.
Threats
- Protectability.
- Lack of Regulation.

7. TOWS MARTIX
S
O
W
T
Min – Min
- Hire new management.
- Cut ties with university.
- Create new IP from scratch.
- Make less dependent on expertise.
Min – Max
- Create partnerships with other univ.
- Hire new management.
- Create new IP
Min – Max
- Use expertise to enhance existing IP
- Encourage univ. Support, but remove
from decision making.
- Use existing customers and data to
improve IP.
Max – Max
- Improve experts bus. Skills
- Leverage Univ. support for $, IP and
partnerships.
- Push for regulation.
- Use existing customers and data to
improve IP.

8. Data in Decision Making
Market
Not large
Large Market type
Existing
Resegment
New
Business
models
Price
Change
No change
Cost
Change
Labor
Technology
No change
Make things as quantitative as possible.

9. Market
Market
Not large
Large Market type
Existing
Resegment
New
Business
models
Price
Change
No change
Cost
Change
Labor
Technology
No change

10. 29,200,000Runners/Joggers
- National Sporting Goods Association

11. 63%
$90+ on shoes
73.5%
$120+ on apparel
3%
5%
9%
21%
25%
37%
>$25k
$25k<$35k
$35k<$50k
$50k<$75K
$75K<$100k
$100k<$150K
- National Runners Survey
Household Income

12. 54.4%Took 4 or more days off in the last 12 months because of an injury.
– National Runners Survey

13. Market Type
Market
Not large
Large Market type
Existing
Resegment
New
Business
models
Price
Change
No change
Cost
Change
Labor
Technology
No change

14. Market Type
◉ Existing
- Known needs.
- Known customers.
- Known Business.
Models.
- Known basis of
competition.
◉ Resegment
- Monopoly/Duopoly
own large part of
existing market.
- Niche opportunity.
- Low cost opportunity.
◉ New
- New class of
product/customer.
- Previously
unavailable.
- Innovation needed.

15. Market Type
◉ No Google or Arthur Murray in the space.
◉ No ‘apps’ from Nike, etc. at the time.
◉ Existing researchers in the field.
◉ Coaching:
- RRCA
- USATF

16. Market Type
◉ Existing
- Known needs.
- Known customers.
- Known Business.
Models.
- Known basis of
competition.
◉ Resegment
- Monopoly/Duopoly
own large part of
existing market.
- Niche opportunity.
- Low cost opportunity.
◉ New
- New class of
product/customer.
- Previously
unavailable.
- Innovation needed.

17. Business Model
Market
Not large
Large Market type
Existing
Resegment
New
Business
models
Price
Change
No change
Cost
Change
Labor
Technology
No change

18. Business Model Canvas
Key Partners
- Universities
- Research
Inst.
- USATF
- Video game
Consoles?
- National
fitness
chains?
Key Activities
- Evaluations
- Business
Development/Sales
- Customer service
- Software dev.?
Key Resources
- Research data
- IP
- Expertise
- Software?
Value Prop
- Prevent Injury
- Improve
performance
- Bring in new
patients/custo
mers (halo
effect).
Customer Relationships
- Direct (via clinic)
- Licensing
- Franchise
- Direct (software)
Customer Segments
- Runners
- Hospitals
- Coaches
Cost Structure
- Evaluations (salaries, facilities, equipment)
- PR/BD/Sales
- Software Dev.
Revenue Streams
- Pay for evaluation
- Annual licensing/franchise fee
- Software sales/subscription
Channels
- Universities
- National fitness chains
- Video Game consoles
- USATF
- Coaches

19. Value Proposition Validated
◉ 3D and other evaluations helps improve locomotion thus
preventing injury (cohort study and case studies).
◉ People are paying for it.
◉ Word-of-mouth and referrals are getting new customers.

20. Problem
3d testing works, but:
- Cost = Expensive:
~ $ 500,000 dollars is needed to create the facility, buy
imaging equipment, and license imaging software.
Additionally, there is a need to employ M.S. or higher
degree level facilitators that run data collection, analyze data,
interface with clients and make recommendations.
- Revenue = customers pay below cost ($300).

21. Identify and Validate
Market
Not large
Large Market type
Existing
Resegment
New
Business
models
Price
Change
No change
Cost
Change
Labor
Technology
No change

22. Key Activities
Business
model
Price to end
user
Survey
Change
No change
Cost Study
Change
Labor
Study
Doctor
Technician
Machine
Study
Doctor
Technicians
Technology
3D
2D
Human
Machine
Camera
Kinect
No change

23. Testing Price

24. Survey
◉ Voluntary email survey.
◉ Survey Monkey to facilitate.
◉ To provide context, the survey covered demographic,
income, running experience, feelings about their
experience with RunSafe and pricing.

25. Demographics and Feedback
- 84 complete survey responses.
- 42% of respondents were male and
- 57% female.
- Average age was 43.6 with a range of 23 to 65.
- Most clients were in an income bracket >$151K.
- Running for fitness (38.8%)
- Runners running races were mainly experienced runners (7 or more races)
(42.9%).
- Based on the survey responses, a majority of the clients have participated in
other types of running programs, suggesting that this is an educated group of
runners who have tried other assessments and find value in RunSafe.

26. Pricing
◉ Former clients were asked:
“ Since RunSafe incorporate 4
specialists into a single
integrated session at one
location, how much would you
be willing to pay given the time
can cost savings?”

27. Key Activities
Business
model
Price to end
user
Survey
Change
No change
Cost Study
Change
Labor
Study
Doctor
Technician
Machine
Study
Doctor
Technicians
Technology
3D
2D
Human
Machine
Camera
Kinect
No change

28. Testing Cost Reduction

29. 2D Study
Hypothesis: “we can analyze the 2 dimensional (2D) video capture
and compare the assessment to 3 dimensional (3D) analysis in
order to identify statistically relevant deviations in diagnosis
between methods, address any shortcomings in the 2D analysis
and seek methods to mitigate downside risks.”

30. 2D Study
◉ CHR approved for full research project (IRB #: 11-05907)
on 3/18/2011
◉ Pilot study for 20 subjects and validity study for 2D versus
3D with two experienced physicians.
◉ Subjects were evaluated with 3D and 2D simultaneously.
◉ Physicians would evaluate the 2D and their observations
were compared to the 3D capture.

31. 2D Study

32. 2D Study
◉ Preliminary findings demonstrated that physicians looking
at video could approximate many of the 3D observations.
◉ There were a few notable exceptions, but it may due to
the small sample size of the pilot.

33. Key Activities
Business
model
Price to end
user
Survey
Change
No change
Cost Study
Change
Labor
Study
Doctor
Technician
Machine
Study
Doctor
Technicians
Technology
3D
2D
Human
Machine
Camera
Kinect
No change

34. Validation
Market
Not large
Large Market type
Existing
Resegment
New
Business
models
Price
Change
No change
Cost
Change
Labor
Technology
No change

35. Business Models
Business
models
Direct
Clinics
Franchise
Wholly
owned
Licensing
Clinics
Other
Direct to
Consumer