THEORICAL AND RESEARCH MODEL
Startup & Smart – Startup
Nowadays, it is not difficult to realize a real emergence of entrepreneurial spirit and more startup activities than ever before More and more people are looking for starting their own business rather than working for someone else to satisfy their own need and desire
According to Ries (2011), Startup is a human institution designed to create new products and services under conditions of extreme uncertainty
Or Dave McClure, an entrepreneur and angel investor who founded the business accelerator 500 Startups, said:
“A startup is a company that is confused about what its product is, who its customers are and how to make money”
Indeed, startup is a term used to describe a business working to make products or provide services to solve contemporary problems or serve current demands as the solution is not clear and the success is not guaranteed
1.1.2 Overview of Smart – Startup business
Smart – Startup is a start-up with an idea of building an overall Cloud computing solution in Preventive Medicine which consists of a solution to computerize all community health workers‘ job and a portal to help people track their family‘s immunization doses, to search on health education programs, and apply for early diagnosis of disease by screening and registry to receive Notification SMS This system will have a web and a mobile application version so that end user can log in and use everywhere and everytime SMS services is supplied in kind of Bulk SMS with Brandname of sender (eg: YTDP Ha Noi) instead of showing mobile phone number so as to improve trust
Our company name: Smart Mission statement: taking care of people is at the heart of everything we do Caring counts
Company goal and objectives: number one technology company in providing medicine services to all the people by combining expert – creation – technology
• The Preventive medicine information systems (SMIS) starts with issuing an ID number for a baby right in 24 hours after being borned and has the Hepatitis B first dose instead of waiting till having a birth registration certificate The ID number owner then will be informed with healthcare programs and early diagnosis of disease When deploying all over the nation, it generates a national database in Immuzation and Vaccination that we can exploit and provide value-added services (VAS) relating to preventive medicine fields to the people starting with Immunization Notification SMS
• The SMIS are confidential, web-based, ID-based management, computerized databases that record all immunization doses and preventive medicine procedures administered by participating providers to persons residing within a given geopolitical area
• In the long term, this product will evolve into an ecosystem not only for Immunization but all other Preventive Medicine fields like Communicable diseases (CDs), Non – communicable diseases (CDCs), nutrion, school health, early diagnosis of disease … All base on the idea of having a ID in the centre and other management systems all around then provide VAS such as Immunization remind, notification SMS, Communicable diseases alert,… for people
1.1.3 Overview about Data Warehouse System in Smart – Startup 1.1.3.1 Data Warehouse Concepts
Data warehousing is the process of collecting data to be stored in a managed database in which the data are subject-oriented and integrated, time variant, and nonvolatile for the support of decision-making Data from the different operations of a corporation are reconciled and stored in a central repository (a data warehouse) from where analysts extract information that enables better decision making
Data can then be aggregated or parsed, and sliced and diced as needed in order to provide information There are two main authors that are known in the world of data warehouse design, their approaches to some area of the data warehousing are different; William Inmon and Ralph Kimball The approach by Inmon is top down design while that of Kimball is bottom up design Most of the practitioners of Data warehouse subscribe to either of the two approaches
A Data Warehouse is a subject-oriented, integrated, time-variant, non- volatile collection of data used in support of decision making processes
―Subject Oriented‖ means that a data warehouse focuses on the high-level entities of the business and the data are organized according to subject
―Integrated‖ means that the data are stored in consistent formats, naming conventions, inmeasurement of variables, encoding structures, physical attributes of data, or domain constraints For example, whereas an organization may have four or fiveunique coding schemes for ethnicity, in a data warehouse there is only one coding scheme
―Time-variant‖ means warehouses provide access to a greater volume of more detailed information over a longer period and that the data are associated with a point in time such as month, quarter, or year Warehouse data are non-volatile in that data that enter the database are rarely, if ever, changed once they are entered into the warehouse The data in the warehouse are read-only; updates or refresh of the data occur on a periodic, incremental or full refresh basis Finally,‖nonvolatile‖ means that the data do not change
Data warehouse is the conglomerate of all data marts within the enterprise Information is always stored in the dimensional model Kimball views data warehousing as a constituency of data marts Data marts are focused on delivering businessobjectives for departments in the organization
And the data warehouse is a conformed dimension of the data marts The data warehouse is the sum of all the data marts, each representing a business process in organization by a means of a star schema, or a family of star schemas of different granularity
Some of the Data Warehouse characteristics to include:
• It allows for integration of various application systems
• It supports information processing by consolidating historical data
• Data is stored in a format that is structured for querying and analysis
• Data is summarized DWs usually do not keep as much detail as transaction-oriented systems
1.1.3.2 The Data Warehouse Data Model
There are three levels in data modeling process: High-level modeling (called the ERD, entity relationship level) which features entities, attributes and relationships, Mid-level modeling (called the data item set) which is data set by department, and Low-level modeling (called the physical model) optimize for performance
After the high-level data model is created, the next level is established—the midlevel model For each major subject area, or entity, identified in the high level data model, a midlevel model is created Each area is subsequently developed into its own midlevel model
The physical data model is created from the midlevel data model just by extending the midlevel data model to include keys and physical characteristics of the model At this point, the physical data model looks like a series of tables, sometimes called relational tables
Business Model Canvas
The term ‗business model‘ appeared already in the academic article of Bellman (1957), followed by yet another academic article by Jones in 1960 However, it did not achieve any significant
Osterwalder, A., Pigneur, Y and Tucci, C.L (2005) in their book ―Clarifying Business Models: Origins, Present, and Future of the Concept‖, define the business model as follows:
―A business model is a conceptual tool that contains a set of elements and their relationships and allows expressing the business logic of a specific firm
It is a description of the value a company offers to one or several segments of customers and of the architecture of the firm and its networks of partners for creating, marketing and delivering this value and relationship capital, to generate profitable and sustainable revenue streams.‖
As a conceptual tool, business model is a simplified representation of how the business of any company works To make this, it contains elements describing different parts of a business and explains their relationships to each other Thus, it tells the business logic of a firm With the business model concept we can simplify which kind of value is offered to which customers, which kinds of resources, activities and partners are needed and finally, how the value offered to customers is captured and transferred back to the company through revenues
According to Osterwalder et al (2005), business models can be classified in three different categories according to how they are described by different authors: 1) Overarching business model concepts
Overarching concepts consist of definitions of what a business model is and what belongs in it Thus, they are abstract concepts describing all real world businesses This category includes both definitions of what the concept of business model means as well as meta-models, which also define the elements included in it The frameworks to be presented in the following discussion all fall in the category of meta-models
Taxonomies category is formed by descriptions of different types or meta- model types that are generic but contain common characteristics Types refer to simple categorization whereas meta-model types refer to different models
Taxonomies may apply to specific industries instead of business in general
Instance level includes concrete real-world business models as well as conceptualizations, representations and descriptions of them They are commonly used to describe companies in case-based studies ention until the late 1990s
1.2.2 Background of Business Model Canvas
The Business Model Canvas, which was first introduced by Osterwalder and Pigneur (2010) in their well-known book ―Business Model Generation‖ , is a business model innovation tool that helps organizations to understand, design and implement new business models or enhance old business models It is a way to the rationale of how an organization creates, delivers, and captures value, and it consists of nine building blocks
The elements have their theoretical underpinnings in Osterwalder‘s
(2004) doctorate thesis, in which he develops a synthesis of the previous business model research Each of the elements included in the framework has been mentioned at least by two other authors in previous literature In the business model canvas tool the elements have been developed further from Osterwalder‘s previous work, resulting in a more easily useable structure and a changeof names in some of the elements However, the core idea of the framework remains the same
Source: Osterwalder and Pigneur - 2010 “Business Model
The nine elements of the business model canvas framework belong into four pillars – product, customer interface, infrastructure management and financial aspects
Table 1.1: Business model canvas elements and descriptions
Forms an overall view of a company's bundle of products and services that are of value to the customer
Segments of customers a company wants to offer value to
Means of getting in touch with the customer
Describes the link a company establishes between itself and the customer
Describes the arrangement of assets required to create value to the customer, being the inputs in value- creation process and sources of capabilities
6 Key Activities Actions a company performs to do business and achieve its goals
Voluntarily initiated cooperative agreements for outsourcing activities and acquiring resources outside the enterprise
Describes how a company makes money through a variety of revenue flows resulting from value propositions successfully offered to customers
The representation in money of all the means employed in the business model elements
(Adapted from Osterwalder & Pigneur, 2010; Osterwalder, 2004) 1.2.2.1 Product pillar
Product pillar in essence answers to the question ―what?‖ when it comes to business model It describes in which business the company is in and defines the products and thus, value propositions it offers to the market It describes an essential part related to overall business model innovations – product and service innovations
After an organization has decided on which customer segment they want to serve, they must now look into how to meet the needs and how to create value for the customers in that segment This is done through value propositions Here an organization determines which products and/or service they will provide in order to create value to its customers This value can be quantitative or qualitative both these includes various types of elements It is with these elements value is created for the customers Some because they help the customers to measure differences or similarities between products and/or services Others by meeting certain needs among the customers in the chosen segment One of these elements is price, here some organizations create value by offering the same products and/or services but to a lower price In this way they can reach out to a new customer segment that are difficult for their competitors to reach Design is another important element for an organization to create value, but it is also a difficult element to measure However a good design can help an organization´s product to stand out from similar products made by competitors Other examples of elements can be performance or customization Performance has been a traditional way to create value and by tailoring products and/or services the organization can reach even more customers
Customer interface pillar concentrates on the question ―who‖ in the business model It tells who the company‘s target customers are, how it delivers products and services to them and how it builds strong relationships with them It defines the way how a company goes to market, reaches its customers and interacts with them
This is the heart of any business model and also where to start in order to create one The organization must first decide what market and which customer segment they want to serve A customer segment consist of customers with similar needs, behaviour or characteristics An organization can focus on more than one customer segment depending on how many or which types of products and/or services they offer Some examples of Customer Segments are mass market and niche market In the mass market the organization focus on a large group, while in a niche market the focus lies on a very small group that demands specific and tailored services and/or products
Here the organization decides how the customers can purchase their products and/or services and in what way the organization will deliver them to the customers The channels are also used to raise more awareness among the customers and to let the customers valuate the organizations value propositio
The organization can use their own channels such as sales force or own stores
If the organization does not have own channels they can use partner channels such as partner store or wholesaler Using own channels give higher margins, but costs more The partner channels give low margins, but helps the organization reach more customers
It is important for an organization to establish customer relationships
Different customer segments can demand different types of customer relationships therefore organizations often need to have a mix of them in order to satisfy their customers One type of customer relationship is personal assistance Here the customer can communicate directly with one of the employees in the organization The opposite to this type of relationships is self-service, here the organization provides the customers with all the necessary tools and software for the customers to help themselves
Infrastructure management pillar addresses the question ―how‖ in the business model, telling how a company creates value It tells how a company efficiently performs infrastructural and logistical issues, with whom and as what kind of network enterprise
REASEARCH METHODOLOGY
Desk Review (secondary data)
Secondary data was collected to partly answer the question on how the Business model canvas approach is designed at Smart Startup company, but also to describe the internal development team with their respective areas of responsibility and tasks The secondary data that was collected originated from various literature, articles and news Secondary data also refer to existing data from old research, magazines, books,publications, etc It can be published by official or non-official organizations The results from the secondary data collection is presented in chapter 3.
Primary data
Primary data are the information which is collected through interview, group discussion, specialized surveys This method will cost more than gathering data from secondary source Primary data play an important role in data collection, since it is the only option when secondary data is unavailable or unreliable Secondary data have support meaning, it is available for purposes other than solving the research problem (Kumar et al 2002, 106.) In this thesis, both data collection methods will be used to analyse the situation of the market and the potential demand of data software in preventive healthcare service, to validate the secondary data about the Business Model Canvas approach and the establishment of the internal systems and processes, and to collect new data about the needs of the internal development team The results from the primary data collection is presented in chapter 3
To collect primary data, qualitative interviews with the selected samples as interviewees were conducted Qualitative interviews were selected because they are suitable when it is important to understand the research participants‘ attitudes and opinions, like in this study where the needs of the internal development team should be understood
All interviews were designed as semi-structured Semi-structured means that a list of themes and questions to be covered works as a basis for the interview, including a scope for changes
As a preparation for each interview, an interview guide with a list of themes and questions were prepared and pilot tested in a questionaire The main contents of the questionnaire were questions related to the views of interviewees on the necessity of preventive medicine services, the ability to use preventive medicine services in the use of public health services advanced technology, and the desire to cooperate with partners in the field of preventive medicine These can be found in Appendix B
All interviews were recorded with either the Voice Memo app on iPhone, depending on the location of the interview The interviews were later transcribed A description of how each interview was conducted can be seen in Table 2.1
The interviewees included individuals and organizations involved in the field of preventive medicine including: potential clients who will use the services of businesses, medical authorities Preventive health insurance may become a partner of Smart Startup, insurance advisors with clients who use preventive health services There were 30 interviewees The data is processing using Microsolf Excel 2010
Preventive healthcare workers Workplace and private call Vietnamese Parents with children under 2 years old
Coffee shop or Skype Vietnamese
Pregnant women Coffee shop, workplace or
Advertising and Insurance companies‘ marketing staff
Expert Interview
In order to increase the robustness of my findings from the personal field study, I conducted an expert interview with a professor in preventive medicine Associate Professor Dr.Tran Dac Phu - The director of the Preventive Medicine Department, is an industry leader in the field of preventive medicine Professor Dr.Tran Dac Phu had previously mentioned his fascination of a Shared Data Warehouse System in Preventive Medicine, and I did a review to figure out how his perspectives compared to my own research experience He also informed some charateristics of Preventive Medicine in Vietnam and the realities of preventive medicine and health status of Vietnamese, which was then discribed in chapter 3
Focus Group
In order to investigate the relation between initial assumptions deriving from the founders‘ vision and the feedback from the respondents, a focus group was assembled The focus group was structured by an interview guide, with room for flexibility The flexibility dimension facilitates group dynamics between the participants, making it easier for the respondents to elaborate and give in-depth answers A recording device (iPhone) was used to record the session, leaving all the analysisto a later stage and enabling me as interview supervisor to gain full attention to the answers and dynamic in the group and probe the respondents if necessary
The respondents knew the theme on beforehand, enabling them to make up some intial thoughts and frame the discussion The interview started with a short briefing, explaining the purpose of the interview, as well as informing the respondents that the session would be recorded Next, the interview followed by some open questions to figure out the respondents‘ relation to the need of respondents in preventive medicine service and the need of a system that provide information on immunization and health education
The next phrase of the interview introduced my service, and was aiming to figure out if it satisfy the need of the respondents previously had been listed
The last part of the interview was about Smart Startup with its services and the the interviewees discussed about what they hope about software display, target customer, other use purposes, channels, pricing,etc.
Location and time of study
Location: Vietnamese preventive medicine market
Period of study: Conduct research from 2014 to 2017.
REALITIES OF SMART- STARTUP BUSINESS IN
Preventive Medicine Industry in Vietnam
3.1.1 Current situation of preventive medicine industry in Vietnam
Prophylactic medicine or preventive medicine, is a field of health that involves the implementation of preventive medicine Preventive Medicine is responsible for implementing, promoting research activities, promoting and protecting health (to reduce the probability of occurrence of disease or prevent progression development or control of it) to monitor people's health problems, identify their health needs and plan, manage and evaluate health services
Over the past years, preventive medicine industry in Vietnam has been increasingly strengthened, contributing significantly to the improvement of the health indicators of the Vietnamese people However, the medicine activities still faces many challenges, requiring the cooperation of ministries, sectors, administrations at all levels and people
The challenges facing people's health care today are the disparities in basic health indicators between urban and rural areas, between regions and target groups in recent years have not improved much The rate of malnutrition among underweight children has fallen sharply, but the rate of stunting is still high Meanwhile, obesity rates in children under five have been increasing rapidly in recent years Noteworthy, the burden of communicable diseases (malaria, dengue fever, etc.) remains high and increasingly difficult to control, the emergence of emerging diseases, mainly diseases transmissing from animals to humans such as H5N6, H7N9, Mers-CoV, Ebola is a major challenge for the health system The change in the burden of morbidity and mortality with the increase in the incidence of non- communicable diseases not only results in the burden of illness and the economy for both the sick and the family but also creates a burden for the health system as well as the whole society Non-communicable disease has not only increased in populations of economically developed urban areas but also in the rural poor
On the other hand, Vietnam is also facing many health risk factors, including: demographic factors (population size and growth rate, population aging, gender imbalance fertility, migration); Socio-economic factors (labor, employment, income, poverty, housing, education and training, impact of industrialization and urbanization); natural environmental factors (climate change, natural disasters, environmental pollution, lack of clean water and sanitation facilities, food contamination) and behavioral and lifestyle factors (smoking, excessive alcohol consumption, poor diet, less physical activity, drug addSmart Startupion, prostitution, etc.)
In response to a changing disease pattern with a dual disease burden of infectious and non-communicable disease, the health system must respond to changes in organizational structure and function the mission and ability to provide services In particular, preventive medicine not only performs well the task of preventing infectious diseases but also prevents non- communicable diseases, through the prevention of risk factors As such, we must continue to fully understand and implement the preventive perspective in planning and investing in health programs The national strategy on preventive medicine orientations to 2020 approved by the Prime Minister on November 9, 2006 states: Active prevention, active reduction of risk factors;
Preventive health care is the responsibility of governments at all levels, ministries, sectors, unions, socio-economic organizations and people
Preventive medicine is the application of prevention methods for diseases affected by environmental factors, genetics, pathogens, lifestyle, behavioral preventive medicine focuses on protection, increase Strengthen and maintain health, prevent disease, disability and death Prevention activities are divided into the following levels: Prevention is the application of measures to prevent the formation of economic, cultural, social and environmental risk factors in the development process (eg destroying tobacco plants) Primary prevention is to apply measures to limit exposure to risk factors (such as health education, vaccination) Secondary prevention is the use of diagnostic methods for early detection at clinical stage without clinical signs (routine blood pressure measurement for early detection and treatment to reduce the risk of cardiovascular disease, screening for early detection of cervical cancer ) Third-degree prevention is the use of effective treatment and rehabilitation measures to reduce disability and death Fourth-degree prevention is the application of measures to reduce unnecessary unnecessary treatment interventions The effectiveness of prevention activities is very clear, protecting the health of disease prevention, and improving the quality of life, reducing the costs of diagnosis and treatment
In fact, vaccination has significantly reduced the incidence and mortality of many infections, as well as the cost of treatment and the cost of lost care by parents and caregivers and unemployment due to sick child care
The cost of treatment is five times as much as the cost of implementing the vaccination
In order to prevent the disease effectively, it is necessary to integrate interventions related to many risk factors and diseases, to change the lifestyle of the community, to participate in interdisciplinary, Agencies, organizations, unions, political, economic, social, business, including the State and private
These strategies are: epidemiological surveillance to track risk factors and morbidity as the basis for prioritizing and evaluating the effectiveness of the intervention Propose policies and create favorable environments to promote and facilitate behavior change Improve the capacity of the health system to increase the coverage and effective use of preventive and health care services
Establish programs to increase accessibility and connectivity of people with resources and services, strengthen and improve grassroots health care networks, manage disease management, including infectious diseases and non-communicable disease associated with primary health care and aged care, to maintain community-based preventive and disease management activities
Primary health care is essential, based on practical and scientifically validated methods and techniques, which are universally accessible to all individuals and families in the community, with their active participation The four Principles of Primary Care are political commitment, community involvement, interdisciplinary collaboration, and the use of appropriate technology Strengthening the implementation of the 10 components of primary health care that Viet Nam has been implementing for the past 40 years: health education, nutrition, clean water, maternal health child-family planning, expanded vaccination, local pandemic prevention and control, healing and traumatic injury, essential medicine, health management, building and strengthening of the grassroots health network The strategies outlined above will help prevent disease, including infectious and non-communicable diseases, reduce morbidity; Early detection, radical treatment to reduce disability complications, death; reduce the burden on the health system, improve the quality of life, improve longevity and improve the quality of race
3.1.2 Vietnamese people health status and the disease pattern
The people‘s health in the recent years has been improved dramatically, the mobility frequency has been reduced but in fact for some special diseases, the mobility and mortality are still very high
The diseases, can be immunized for prevention and control by vaccines such as: diphtheria, whooping cough, measles … However, there are still some diseases that have the high mobility and mortality, such as encephalitis, hepatitis …
Some of the previous diseases having high mobility and often caused epidemics such as: cholera, typhoid, plague … have been reduced dramatically now and there were no more epidemics caused by them
In the recent years, some diseases in our country such as: SARS, avian influenza transmitted to human being caused by influenza type A – H5N1…
Some of the infectious diseases caused a large number of the mobility cases (in the past, they were grouped as social diseases) such as tuberculosis, malaria … Even if a lot of efforts have been made, the mobility and mortality of the mentioned diseases are still developing so complicated, especially tuberculosis and HIV-tuberculosis
Build Canvas Model for SMART STARTUP
3.2.1 Customer Segments 3.2.1.1 Immunization and preventive medicine service providers
According to Joint Circular No 09/2014 / TTLT-BYT-BTC dated February 26 th , 2014 of the Ministry of Health - Ministry of Finance, currently, there are currently 12,403 Governmental preventive medicine service providers in Vietnam
Smart‘s target customers are immunization and preventive health providers to use SMIS to manage all their job from planning, scheduled vaccines and vaccination implementation, statistical reports
There are more than 11.000 CHCs under Expanded Immunization Program (EPI) all over the nation and ~2,000 of non – EPI centers We aim to deploy in 17 provinces of urban centers of grade 1 in Vietnam to take 20% of market volume equivalent to 2.200 CHCs and 100 non – EPI immunization provider
The target customer of SMART STARTUP also include Manager of EPI System, healthcare center worker, non- EPI immunization provider, Advertising and Insurance companies who consider the data base of preventive medicine as a reference to promote and expand their activities and services
3.2.1.2 Parents of babies under 2 years old and pregnant women
3 millions parents of babies under 2 years old (includes 1,5 million babies born each year) and 1,6 million pregnant women Our object is to have 10% of parents registry to use basis package equal to 300,000 subscription and 5% of pregnant women equal to 80,000 subscription They are people live in urban areas, age from 20-40, income level over 5,000,000 VND/month (collar worker), have at least 1 feature phone/smartphone Our service annual fee for people use SMS service will start at around 50,000 VND (~4.200 VND/month) for parents and 10,000 VND/pregnant woman during 9 months
In the long term, Immunization customers will become target customer segment of all other Preventive Medicine fields like Communicable diseases (CDs), Non – communicable diseases (CDCs), nutrion, school health, early diagnosis of disease, health education …
– After taking an in-house market and medicine process analysis, SMART STARTUP will finish the minimum viable product fast, ensure it fits the task that end-user want it for then deploy a pilot programe in 3 months to improve the quality and software interface In this time, besides experts, we will take end-users as a part of our product – making procedure
Connecting with stackeholders including MOH (General Department of Preventive Medicine - GDPM), NEPI (Nationcal Expanded Immunization Program), Immunazations providers especially in cities which has the highest migration rate like Hanoi, Ho Chi Minh City to cooperate with experts in developing a using- friendly product In the mean time, we must ensure to have enough people and financial resource to deploy this product on an wide range A key financial resources will come from fund raising from corporations and NGOs like ADB, WHO, CHAI (Bill Gates‘ fund), PATH (a world leading NGO in medicine) and other services/technology suppliers like Facebook, Vietnam Telcos
3.2.3 Value prosition: o SMIS combine immunization information from different sources into a single record bases on a single individual ID number Every people are no longer have to worry about losing immunization book/tag, moving between provinces with different management system and take many types of vaccine trade name o SMIS remind families when an immunization is due or has been missed through many channels such as email, SMS, direct channel,… o SMIS are capable of exchanging immunization information with immunization medicine providers Data exchange between SMIS and other information systems helps ensure timely immunizations, consolidation of records, and allows immunization providers to work more efficiently o By connecting with MOH and all immunization providers to standardize all technical problems and officially upload all immunization data, communicable diseases (CDs), non – communicable diseases (NCDs), health education, early diagnosis of diseases, communicable alert data,… into the SMIS, SMART STARTUP will provide an affordable service to whom want to receive medicine SMS from medicine stations that no other competitor can replace o The value proposition of SMART STARTUP is that with one ID management to improve full immunization coverage and other value added preventive medicine services o SMART STARTUP have a full process management, boost administrative reform to reduce the Reporting burden to save operation cost, generate new revenue from immunization and preventive medicine services to help health center worker
– Integrate SMIS/Portal address as a sub domain of Medicine stations official website to improve trust Choose a catchy web address that every people can remember or give it an acronym When deploying SMIS, we will convince Province/distrSmart Startup preventive medicine center to become teacher and key person to support CHCs
When deploying SMS services to people, we will cooperate with CHCs and non – EPI center on a fee-for-service basis
Year Year 1 Year 2 Year 3 Year 4 Year 5
Revenue utility for mobile subscribers
Number of children born each year 1,600,000 children Percentage of application users 20%
Table 3 2: Revenue utility for mobile subscribers Year 1 Year 2 Year 3 Year 4 Year 5
Online application revenue on mobile
The current population of Viet Nam 91,000,000 People Number of children aged 0-4 7,280,000 People The percentage of parents using the app 10%
Table 3.3: Online application revenue on mobile Year 1 Year 2 Year 3 Year 4 Year 5
Rental fee Number of units
National Institute of Hygiene and Epidemiology; Institute of Hygiene and Epidemiology
Provincial Preventive Medicine Center, District Health Center
Table 3.4: Software rental revenue Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Total
The Product should always be seen as representing good value for money and dedicate for social purposes This does not necessarily mean it should be the cheapest available; one of the main tenets of the marketing concept is that customers are usually happy to pay a little more for something that works really well for them According to the result of customer interviews and expert interview, and other market research (both primary and secondary) to have an overview then through analysis, SMART STARTUP will build good service packages for health stations and people base on regions, income level, divided into basic package and advanced package
Basic package can start from 50.000VND/person per year for maximum 50 SMS received Then up to add-on services and number of SMS one person want ro receive and the unit cost of producing we will assess other advance specific service packages
- The strategy of SMART STARTUP is to contact GDPM, NEPI office to have overal policy and contact health facilities to have grant to deploy SMIS
- Technical staff is always available to improve product, technical support and upload data to the system
- Customer can sign up for a free account and 1 month trial to make sure the product is necessary and helpful for them before deciding to use the product
- Online and Hotline Customer Care and Preventive Medine Consult are always willing to help customer and deal with their request
Some key activities which are considered as the most important things that SMART STARTUP would deploy include:
Software development is an umbrella term used to refer to the overall process that involves several tasks, such as computer programming, documenting, repairing and testing that concern both the creation and the maintenance of applications and frameworks, which is indispensable for an IT startup to maintain and promote their activities
SMART STARTUP training builds the all-around skills of employees so that they can work well and contribute to the business for a long term
SMART STARTUP plans to provide a range of level-ased employee training and development programes based on the required capabilities of each emloyee categorization and the anticipated future roles
Sale and leasing software service to healthcare providers:
Because the information on their patients is a considerable important source channel of healthcare providers, the revenue from sale and leasing software service to them will significantly generate revenue for the business
Therefore, SMART STARTUP needs to promote sale and leasing software service to immunization and healthcare providers
The collecting and uploading data need to be done regularly to ensure the novelty and updating of customer information, which might change on a regular basis
Providing notification SMS packages to parents, pregnant women, and other customers
The notification SMS would become a great reminder for parents, pregnant women and other customers because nowadays, due to hectic schedules and lifestyle choices, healthcare takes a backseat for many people As it is regularly reminded, customers will have a peace of mind that SMART STARTUP takes care of their healthcare routines
Key resources are the main inputs that a company uses to create its value proposition and service its customer segment These are the most important things a business need to have which are usually based on a number of tangible and intangible resources Smart - Startup‘s key resources include:
3.2.8.1 Fund raising from Start-up and Preventive Medicine Support funds
Smart startup analysis of financial performance
Fund raising from NGOs and other cooperations to have at least 200,000 USD to maintain company‘s operation in the 1 st year (about 10 persons, each cost about 30 – 35 million VND/month including salary, bonus, welfare, training, office leasing,…)
Take a deep market and technical process research to have a clear vision of what and how the product needed to be developed
Product development: 6 months to SIS and 2 month for SMS services
Run pilot programe to Immunization providers in Hanoi and Ho Chi Minh City for 3 months to improve product‘s quality Objections: having at least 400,000 of 2-year baby immunization data in SMIS (each city has
Connect/integrate with Telcos to pilot Immunization SMS, aiming at 30% of parents of 400,000 babies above
Run a 2-month marketing campaign on Social media (Facebook, Vnexpress,…) with a Product introduction clip with honor of expert from MOH, General department of Preventive medicine and immunization providers, end – users
Deploy all over the nation (according to target customers vlumne above) o Analysis of financial performance
Table 3.8: Target market volumne and expected revenue
- Using straight-line depreciation method
- Provisional revenue within the year 0
- Estimate total cost rises 5% per year
The main depreciation method used is the fast depreciation method with a depreciation period of 3 years with a rate of about 10% of total revenue
- Assumed after 5 years will achieve 100% of target market
Table 3.10: Target market share after 5 years
Expected target market share achieved 20% 40% 60% 80% 100%
With EPI immunization, Smart Startup expects a market share of around 20%, generating a revenue of VND 6,600,000,000 billion
Non - EPI Immunization market is rated at a higher level of competition, Smart Startup expects to gain 5% market share and bring in revenue of 10,000,000,000 billion VND
Providing information on preventive medicine for parents of children under 2 years old and pregnant women is a relatively new field, Smart Startup strategy building occupies 10% and 5% respectively market share, bringing revenue in turn of VND 15,000,000,000 and VND 800,000,000 billion each year
No Item Total cost Detail Note
Immunization management Web (non - EPI)
Estimated costs are based on the current cost calculation of facilities and technology platforms Specific costs are attached in Appendix 1
# Item Unit Number Unit cost Total cost
1 Maintain, upgrade product & service Person/month 2 30,000,000 720,000,000
2 Leased line, server location, domain name leasing cost package/month 1 50,000,000 600,000,000
5 Customer care and marketing cost Agent/month 1 70,000,000 840,000,000
SMS cost SMS/person*300.000 sub) SMS/year 15,000,000 350 5,250,000,000
Table 3.13: Expectes Business effectiveness (5 years)
2 Total annual cost (exclude depriciation cost) 54,269,434,353 VND
Based on the data analysis software, the performance of the business is considered high with a payback period of 3.7 years This is a reasonable time and suitable to the field of operation of Smart Startup.
RECOMMENDATIONS
Governance guidelines
Official documents should be signed as part of the registration process of new members of SMIS and the rights and obligations of every member – new and old – should be made explicit
In the review of existing literature, the following three dimensions of governance were discussed:
Control: The signing of official documents by members – both new and existing – of a network is an important ritual which has the tendency of promoting integrity, accountability, relevance and impact among stakeholders Documentation is one of the key activities necessary to ensure the successful governance of any platform
Decision rights portioning: It is important that every member of an organisation including SMART STARTUP system to fully understands their basic rights and obligations
My recommendation regarding the governance of the network, based on the data collected, is that new members should be made to sign official documents that reflect the amount of money they have paid, and the rights/obligations of all stakeholders should be made explicitly clear and properly documented It is advisable that this is done collaboratively during an event where most members are physically present.
An integrated system
When starting out, most organisations or networks have the tendency to solve problems in the fastest ways possible by using different information systems for varying functions in an ad hoc manner The outcome is multiple, disparate systems that operate as standalone Integrating data from all these software applications can be difficult, expensive, and may even cause efficiency issues down the line As the membership of the network and its complexity grow, these disparate systems may no longer be able to support its operations effectively
A potential solution that would position SMART STARTUP at a strategic position of success is to opt for a ―holistic‖ central system
Therefore, I recommend the development of an integrated system that will cater for the needs of the network Every stakeholders should be automatically mapped to the SMIS to which they belong It is important to keep in mind that the goal of the system is not to replace the current operations or activities of the international network, rather it is aimed at helping both the members and central administration to take advantage of technological advancements
There is currently no online platform that connects parents, pregnants, or other people who care about preventive medicine services and information with healthcare workers and immunization provider from various corners of the country Therefore, an intergrated information system will be a wise choice to develop preventive medicine
The development of any new software system often costs a significant amount of money, time and resources As a way of circumventing huge costs and expensive resources, I suggest the use of open source code The use of open source code lowers cost, improves quality, speeds-up delivery time and ultimately enables organisations to advance innovation
4.2.2 Benefits of the integrated system
Multi-disciplinary approach to access preventive medicine:
The system makes it easy for customers who care about imunization and other healthcare service to connect with imunization and healthcare providers
Engagement with the society: The fact that the system or platform is not limited to only its target customes but also makes it possible for members of the public who are interested in healthcare fields This way, value added services may be brainstormed and solved through the platform
Provides instant support for customers and partners: the feelings one gets, when one knows that there is a website one can go to find help, is refreshing The fact that users are able to post questions regarding their problems and get quick responses from online customer care or from preventive medicine providers is an important benefit.
Modeling the quality of services provided by providers of preventive
The quality-of-service model of providers of preventive medicine helps determine the level of customer credit for different providers, making it possible for customers to select the reputable provider
This rating model is evaluated directly by customers after the use of preventive medicine services, based on clear ratings, from 1 to 5 corresponding to customer satisfaction Customer feedback is also sent to SMIS system and to be added into the general information of the providers
Establishing this rating model will also enable service providers to receive objective assessments that will improve the quality of their services
Being placed under competitive pressure can promote the progress of service providers In the long run, it creates three-way benefits: service users, service providers and SMART STARTUPs as a bridge and information providers.
Training employees to make coordinated, cross-functional working staff
Cross-functional collaboration is a success factor for SMART STARTUP and we should understand that human force is a key element that makes a service competitive in comparision with others The collaboration improves through sharing information that focuses on the organization‘s common goals, sharing resources, improving communication, creating knowledge, trusting and making joint decisions and it is dependent upon technology and organized processes Cross-functional Staff reflect the core values of the business To facilitate collaboration, the development team needs well-defined roles and functions of each department and support the others when needed
The thesis focused on designing business model Canvas for SMART STARTUP startup in business in preventive medicine and study a shared data warehouse system Effort were been made to consider all the principles of Data warehouse, Lean Startup Methodology and Business Model Canvas during the course of this thesis I have shown the design of Business Model Canvas with its elements with SMART STARTUP as a case study I also make some recommendations with the hope to improve the efficiency of SMART STARTUP Business Model Canvas in particular and the business feasibility in general which includes Governance guidelines, the requirement of an integrated system, the method of modeling the quality of services provided by providers of preventive medicine services and training employees to make coordinated, cross-functional working staff
In the course of this thesis, I encountered some limitation due to the time and resources required to carry out further analysis I would like to receive advice and recommendations from teachers and my readers to make my thesis more fluent and proper
1 Alan, B, Emma B, (2007), 2nd Edition Business research methods, Oxford, Oxford Press pp.126 – 148
2 Balaji, P & Alexander T (2003) On the Use of Optimization for Data Mining: Theoretical Interactions and ECRM Opportunities
Management Sciences, New York, INFORMS 479(10), 1327 – 1343
3 Ballard Chuck, et al (1998) Data Modeling Techniques for Data Warehousing IBM International Technical Support Organization; Pgs 36-37
4 Başaran, Beril P (2005), a Comparison of Data Warehouse Design Models, the Graduate School of Natural and Applied Sciences, Atilim University
Başaran, Beril P (2007), Developing a Data Warehouse for a University Decision Support System, The Graduate School of Natural and Applied Sciences, Atilim University
5 Burton, P et al (2010), Meta Data: The Key to Data Warehouse Design (A Systems Engineering Approach) ENSE623 Project Institute of System Research
6 Chaffey, D (2002) E-business and E-commerce management New York Prentice Hall, p 330-370 8 Chan S S., (1999) The Impact of Technology on Users and the Workplace New Directions for Institutional Research Volume 1999, Issue 103 pp 3 – 21
7 Cho V and Ngai E.W.T (2003) Data Mining for Selection of Insurance Sales Agents Expert Systems Vol 20, No 3
8 Cooper, H (1998) Synthesizing Research: A Guide for Literature Reviews
9 Demarest, M.,(2008) "Data Warehouse Prototyping: Reducing Risk, Securing Commitment and Improving Project Governance‖
10 Descombe, M (2000), Good the Research Guide; for small scale-social research projects Buckingham, Philadelphia., Open University Press
11 Drucker, P (1996) ―The information executives truly need‖ Harvard Business Review, January – February, pp, 54-62
12 Eckerson W., (2003) Smart companies in the 21st century: The secrets of creating successful BI solutions (In A report of the Data Warehouse Institute
13 Eldabi, T., et al (2002), Quantitative and qualitative decision making methods in simulation modeling Management Decision, Vol.40(1) p
14 Fox R., (2004) Moving from data to information OCLC Systems and Services: International Digital Library Perspectives Volume 20 Number 3 pp 96-101
15 Giovinazzo, W (2002), ‗Internet-Enabled Business Intelligence‘, Prentice Hall
16 Goldstein, I., Benbasat, and Mead, M (1987) The case research strategy in studies of Information systems MIS Quarterly, pp86-95
17 Hackathorn, R (1999), ‗Farming the Web for Systematic Business Intelligence‘, Proceedings of the Fifth ACM SIGKDD, San Diego, CA
18 Han, J and Kamber , M (2001), Data Mining: Concepts and Techniques, San Francisco: Morgan Kaufmann
19 Inmon W.H., (1993) Building the Data Warehouse, A Wiley QED publication, John Wiley and Sons, Inc New York 123-133
20 Kakinda M F., (2000) Introduction to Social Research
21 Kimball R and Ross M., (1996) The Data Warehouse Toolkit: The Complete Guide to Dimensional Modeling
22 Kimball R and Ross M., (2002) the Data Warehouse Toolkit: Second Edition, the Complete Guide to Dimensional Modeling
23 Krishna P R and Kumar S.D., (2001) A Fuzzy Approach to Build an Intelligent Data Warehouse Journal of Intelligent and Fuzzy Systems
24 Andy 2011 Steve Blank Founder LY Referred 28.10.2015 http://www.founderly.com/2011/04/steve-blank-part-1-of-5/
25 Blank, S., 2013 The Four Steps to the Epiphany: Successful Strategies for Products That Win E-book Referred 19.9.2015
26 Blank, S., 2013 Why the Lean Startup Changes Everything The Harvard Business Review, [e-journal] Referred 9.10.2015 https://hbr.org/2013/05/why-the-lean-startup-changes-everything
27 Burry.5‘ successful businesses that got huge by starting small.‘ General Assembly blog 26.7.2014 Referred 17.11.2015 https://blog.generalassemb.ly/businesses-thatstarted-as-a-minimum- viable-product/
28 Coes, B 2014 Critically assessing the strengths and limitations of the business model canvas Master thesis Nijverdal: University of Twente
Referred 28.10.2015 http://essay.utwente.nl/64749/1/Coes_MA_MB.pdf Croll A and Yoskovitz B., 2013 Lean Analytics: Use Data to Build a Better Startup Faster Sebastopol: O‘Reilly Media, Inc
29 Feld, W M., 2001 Lean manufacturing: tools, techniques, and how to use them Boca Raton, FL; Alexandria, VA: St Lucie Press
30 Gustafsson, A & Qvillberg, J 2012 Implementing Lean Startup Methodology – An Evaluation Master thesis Gothenburd: Chalmers University of Technology Referred 31.10.2015 http://publications.lib.chalmers.se/records/fulltext/164603.pdf
31 Hopkins ‗How to set your minimum success criteria.‘ Teague Hopkins Group 4.3.2014 Referred 17.11.2015 http://www.teaguehopkins.com/2014/03/setminimum-success-criteria/
32 Lewis, P., Saunders, M & Thornhill, A 2009 Research methods for business students 5th ed Essex: Pearson
33 Karlsson, J & Nordstrom, J 2012 Implementing lean startup methodology in large firms Master Thesis Gothenburg; Chalmers University of Technology Referred 1.11.2015 http://publications.lib.chalmers.se/records/fulltext/156964.pdf
34 Maurya, A., 2012 Running Lean: Iterate from Plan A to a Plan That Works Sebastopol: O‘Reilly Media, Inc 2nd ed 2011
35 Maurya, A., 2012 Why Lean Canvas vs Business Model Canvas
36 Millman, N., 2010 Explaining Intellectual Honesty The American Scene Referred 28.10.2015 http://theamericanscene.com/2010/09/12/explaining-intellectual-honesty
37 Osterwalder, A & Pigneur, Y 2010 Business Model Generation: A handbook for visionaries, game changers and challengers New Jersey:
38 Owens, T., 2010 Lean Startup Machine Referred 6.10.2015 www.leanstartupmachine.com
39 Oxford DSmart Startupionaries Referred 9.10.2015 http://www.oxforddSmart Startupionaries.com/definition/english/methodology
40 Patel, N 2015 90% of the startups fail: This is what you need to know about the remainig 10% Forbes/Entrepreneurs Referred 5.11.2015 http://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will- fail-hereswhat-you-need-to-know-about-the-10/
41 Ries, E., 2011 The Lean Startup: How Today‘s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses New York: Crown Business
42 Ries, E., 2011 Creating the lean startup Inc Referred 13.10.2015 http://www.inc.com/magazine/201110/eric-ries-usability-testing- productdevelopment.html
43 Tam, P-W., 2010 ―Philosophy helps startups move faster.‖ Referred 9.10.2015 The Wall Street Journal http://www.wsj.com/articles/SB1000142405274870463520457524254
44 Vollens, M., 2013 The Validation Board: Business Prototyping Review Board of innovation Referred 8.10.2015 http://www.boardofinnovation.com/2013/03/06/thevalidation-board- business-prototyping-review/
45 Walker ‗Using ―The Validation Board‖ for Mobile App Developers.‘
Design Boost 29.4.2013 Referred 29.10.2015 http://designboost.net/the-validation-board-formobile-apps/
46 Website of the Financial Times Referred 17.11.2015 http://www.ft.com/home/uk
47 Yoskovitz ‗Top down vs bottom up business models and user acquisition.‘ Instigator blog 19.5.2009 Referred 28.10.2015 http://www.instigatorblog.com/useracquisition-business- models/2009/05/19/
APPENDIX A QUESTIONAIRE ON PREVENTIVE MEDICINE
1 Do you think that setting up a vaccination information system as well as preventive medicine services is necessary?
2 Do Govermental immunization and vaccination agencies now have an integrated database on immunization information and health education needs?
A If Yes, What is the name of that database?
3 Does your organization find it difficult to find potential customers?
A If Yes, what are the reasons?
4 Does accessing to a data system providing information on vaccination status and preventive health services for clients is a useful channel for screening and selecting potential clients for your business?
5 Do you think that vaccination on time, preventive medicine services are necessary for you and your family? If so, how are you willing to pay for a system for providing information, updating information and advice about preventive medicine for you and your family?
6 What features do you need in the system of providing information about preventive medicine?
7 Do you think the backup medical portal is a good reference and a good source of data for developing your insurance / medical services?
B If No, What do you think a good source?
8 Do you think that cultivating knowledge about preventive medicine, health care, vaccination is essential for pregnant women and women with raising their young children?
9 Where do you usually find out about vaccination information, information on early diagnosis and information on health care?
10 Do you think that a software that integrates both the assessment of the credibility of the provider of preventive medicine services will be helpful for you when choosing the right service provider for you?
B If No, what is the criteria for a software in your opinion?
11 What are you most interested in using an information assistant?
