Team Embrace. Jane Chen, Razmig Hovaghimian, Linus Liang, Rahul Panicker May 9, 2007
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1 Team Embrace Jane Chen, Razmig Hovaghimian, Linus Liang, Rahul Panicker May 9, 2007
2 Agenda Background and Opportunity Gap POV & Big Idea Who the Customer Is Incubator Design Market Sizing & Economics Marketing and Distribution Plans (WIP) Next Steps
3 Background: Nepal 80% rural 85% births take place in the home 21% infants have low birth weight ~50,000 babies with low birth weight are in need of an incubator Incubator access is limited: Main city hospitals have them Rural hospitals do not Cost is factor Many are in disrepair Can t even get to the incubator
4 Typical Nepalese Parent Rural villager Annual Income < $200 Illiterate Has access to local rural clinics (~30 minutes away), but not to major health facility Doesn t have enough funds to travel to a major hospital Baby delivered at home, unassisted
5 Point Of View User Need Desperate parents in a remote village, without resources to access a major hospital the means to save their dying premature baby.
6 Opportunity Gap: An Incubator for the Masses Primary functionality: generates and maintains heat For use with babies that are born less than 10 weeks premature Easy to use / intuitive Can be used in the home and is easily transferable Affordable (< $200) Easily distributed
7 Early Prototypes Tent Hot Water Incubator Maternity Vest Sleeping Bag
8 Post Iteration Assessment Metric Prototype Tent Maternity vest Hot water incubator Sleeping Bag Temperature regulation Good Poor Moderate Good Usability Good Good Poor Good 80/20 cases Good Poor Good Good Portability Poor Good Poor Good Isolation Good Poor Moderate Poor Minimal detachable parts Allows for interaction Good Good Poor Good Poor Good Poor Good
9 Our Design: Embrace V1 Functionality Heats w/o electricity Heat supplied by warm water Allows close interaction of baby and mother Expected to work in home setting Allows transport of babies to hospital, if necessary No chamber - minimizes need for humidity Intuitive Has few parts Can be used with minimal healthcare infrastructure Low cost Usability
10 Our Design: Embrace
11 Outstanding Design Questions Right PCM to use? Best material for sleeping back? Amount of material? Circulate water vs. remove and heat PCM? Frequency of reheating? Impact of ambient temperature? Test temperature regulation? Feedback on usability?
12 Market Sizing & Price Point (Bird s Eye View, Nepal) Potential lives saved (endgame): ~ 34,000 / yr 1 incubator needed for a village of: ~2,000 people Endgame # of incubators needed: ~9,500 people Affordability range (for a village): $85~341
13 Back-Of-The-Envelope Cost Components VERY PRELIMINARY COGS (per unit) Insulation / Bag material: ~ $10 - $30 (based on comparable baby sleeping bags, with thick insulation) Phase Change Material: ~ $10 - $15 (based on the information from MIT s incubator project) Water Pouch: ~ $3 - $5 (if needed, based on the cost of similar product) In/outlets: ~ $1 - $3 (if needed, based on the cost of similar product) Miscellaneous Pieces (i.e. zippers, velcro, etc): ~1$ Estimated Cost Range $30~74 per unit Manufacturing/Assembly: ~ $5 - $20 (based on 5 to 10 hours man hours or work at $1~2/hour)
14 Marketing Plan & Distribution Plane Target Customer WORK IN PROGRESS Rural Villagers living on less than $1/ day Concern: Don t have the resources or knowledge to care for premature babies How to Reach Health care workers Village elders / leaders Midwives Educational pamphlets / local media (puppet show, etc.) Distribution Channels Rural health care clinics Local pharmacies NGOs Government Target #s: Aim to distribute ~2,000 incubators in Yr 1, post launch
15 Next Steps & Timeline Week 7 Week 8 Week 9 Week 10 Prototype Iterations Business Plan Final Presentation Conduct final iterations with wax PCM Stress test heating PCM vs. adding boiling water Test usability and functionality Conduct a deeper dive into economics Develop plan for educating and marketing to the customers (research where customers obtain information) Determine best distribution plan
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