Study on smart startup business in preventive medicine using business model canvas

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - DƯƠNG CÔNG ĐỨC STUDY ON SMART - STARTUP BUSINESS IN PREVENTIVE MEDICINE USING BUSINESS MODEL CANVAS NGHIÊN CỨU MƠ HÌNH KINH DOANH KHỞI NGHIÊP THƠNG MINH TRONG LĨNH VỰC Y TẾ DỰ PHỊNG SỬ DỤNG MƠ HÌNH CANVAS LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - DƯƠNG CÔNG ĐỨC STUDY ON SMART - STARTUP BUSINESS IN PREVENTIVE MEDICINE USING BUSINESS MODEL CANVAS NGHIÊN CỨU MƠ HÌNH KINH DOANH KHỞI NGHIÊP THƠNG MINH TRONG LĨNH VỰC Y TẾ DỰ PHỊNG SỬ DỤNG MƠ HÌNH CANVAS Chun ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG HÀ NỘI - 2019 COMMITMENT I hereby declare that my thesis titled ―Study on Smart - startup business in preventive medicine using Business Model Canvas‖ is my own work The work has not been presented elsewhere for assessment Author Duong Cong Duc i APPRECIATION I own debt of gratitude to many people who helped to complete this master thesis First and foremost, I would like to give a special thanks to my instructor, Dr Pham Van Hong, whose supervision helped to guide me during the elaboration of the thesis and understand better the topics I should develop My deep thanks in specific to Hanoi School of Business and Management, Hanoi National University for the best learning environment for me to get more knowledge and improve professional skills Finally, I would like to thank my friends and family for all the support, feedback and encouragement transmitted during these last months which were fundamental to help me keep emotionally stable and enthusiastic about my work Author Duong Cong Duc ii TABLE OF CONTENTS COMMITMENT i APPRECIATION ii LIST OF ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES vii PREFACE CHAPTER 1: THEORICAL AND RESEARCH MODEL 1.1 Startup & Smart – Startup 1.1.1 Startup concept 1.1.2 Overview of Smart – Startup business 1.1.3 Overview about Data Warehouse System in Smart – Startup 1.1.4 Smart – Startup‘s field of operation 17 1.2 Business Model Canvas 20 1.2.1 Concept of Business Model 20 1.2.2 Background of Business Model Canvas 22 CHAPTER 2: REASEARCH METHODOLOGY 31 2.1 Desk Review (secondary data) 31 2.2 Primary data 31 2.3 Expert Interview 33 2.4 Focus Group 33 2.5 Location and time of study 34 CHAPTER 3: REALITIES OF SMART- STARTUP BUSINESS IN PREVENTIVE MEDICINE 35 3.1 Preventive Medicine Industry in Vietnam 35 3.1.1 Current situation of preventive medicine industry in Vietnam 35 3.1.2 Vietnamese people health status and the disease pattern 38 iii 3.2 Build Canvas Model for SMART STARTUP 40 3.2.1 Customer Segments 40 3.2.2 Key partners 41 3.2.3 Value prosition: 42 3.2.4 Channels 43 3.2.5 Revenue stream: 43 3.2.6 Customer Relationship 46 3.2.7 Key activities 46 3.2.8 Key resources 47 3.2.9 Cost structure 54 3.3 Smart startup analysis of financial performance 56 CHAPTER 4: RECOMMENDATIONS 60 4.1 Governance guidelines 60 4.2 An integrated system 61 4.2.1 An integrated information system 61 4.2.2 Benefits of the integrated system 62 4.3 Modeling the quality of services provided by providers of preventive medicine services 63 4.4 Training employees to make coordinated, cross-functional working staff 63 CONCLUSION 64 REFERENCES 65 APPENDIX A 70 APPENDIX B 73 iv LIST OF ABBREVIATIONS BI Business Intelligence CDCs Non- Communicable diseases CDs Communicable diseases DW Data Warehouse EPI Expanded Immunization Program ER Entity Relationship ETL Extraction, Transformation, and Loading GDPM General Department of Preventive Medicine IT Information Technology MRI Magnetic Resonance Imaging MVP Minimum viable product NEPI Nationcal Expanded Immunization Program NGOs Non Government Organizations OLAP Online Analytical processing OLTP Online Transaction Process SMART Smart Startup SMIS Preventive medicine information systems SSIS Integration services SSRS Reporting services VAS Value- added services v LIST OF TABLES Table 1.1: Business model canvas elements and descriptions 24 Table 2.1: Interview description 33 Table 3.1 : Revenue Implementation Roadmap: 43 Table 2: Revenue utility for mobile subscribers 44 Table 3.3: Online application revenue on mobile 44 Table 3.4: Software rental revenue 45 Table 3.5 : Total revenue 45 Table 3.6: Initial investment 55 Table 3.7: Annual operation cost 55 Table 3.8: Target market volumne and expected revenue 56 Table 3.9: Assumptions 57 Table 3.10: Target market share after years 57 Table 3.11: Initial investment 58 Table 3.12: Annual operation cost 59 Table 3.13: Expectes Business effectiveness (5 years) 59 vi LIST OF FIGURES Figure 1.3: DW Development Lifecycle (DWLC) Model (Demarest, 2008) 12 Figure 3.1: Preventative health chart 40 Figure 3.2: DW Architecture Design of SMART STARTUP startup 54 vii PREFACE The rationale of the study The healthcare industry in Vietnam is at a very important juncture It is poised on the brink of a transformation, as it adopts new approaches, including technology, to help consumers manage their health in a better manner Preventive medicine is becoming an area of focus in most countries, and Vietnam is no different Due to hectic schedules and lifestyle choices, healthcare takes a backseat for many people This results in the development of conditions that can be debilitating if not fatal unless they are monitored in a timely manner Stressful and unhealthy lifestyles have led to a significant increase in the incidence of diseases Given how skewed the doctor-patient ratio is in Vietnam, taking care of one's health becomes even more important This is where preventive medicine becomes relevant and Vietnam has an unprecedented opportunity to become a healthy nation with the ability to take the right preventive steps As consumers continue to gain more awareness and access to healthcare information over the internet or via alternate mediums, the need for preventive medicine management system to establish shared data warehouse and supply value added services is obvious However, launching a new enterprise—whether it is a medical - tech start-up, a small business has always been a hit-or-miss proposition But recently an important countervailing force has emerged, one that can make the process of starting a company less risky It is Business Model Canvas, which is a strategic management template model, which helps to create or improve business strategy The business model canvas is a great tool to build a business model in a straightforward, structured way for a startup, which in turn will lead to Table 3.12: Annual operation cost # Item Sum Maintain, upgrade product & service Leased line, server location, domain name leasing cost Training and deploying Warranty, replacement, upgrade cost Customer care and marketing cost SMS cost SMS/person*300.000 sub) Unit Number Unit cost Total cost 7,943,494,545 Person/month 30,000,000 720,000,000 package/month 50,000,000 600,000,000 Class 50,000,000 100,000,000 15% 433,494,545 433,494,545 % initial investment/year Agent/month SMS/year 15,000,000 70,000,000 840,000,000 350 5,250,000,000 Table 3.13: Expectes Business effectiveness (5 years) Total initial investment 10,376,612,658 VND Total annual cost (exclude 54,269,434,353 VND depriciation cost) Total cost 64,646,047,011 VND Total revenue 97,200,000,000 VND EBIT 42,930,565,647 VND Corporate income tax 20.0% EBIT/revenue margin 44.2% EBIT/cost margin 66.4% IRR 46.9% NPV 34,655,979,431 VND Payback time 3.7 year 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 59 CHAPTER 4: RECOMMENDATIONS The thesis results clearly show the feasibility for establising and developing SMART STARTUP startup in the to provide preventive medicine management system to establish shared data warehouse and supply value added services There are many efforts, strategies and improvements to be done, while as one of the project planning based improvements, it is noted that Business Model Canvas definitely works as a tool to reflect the project thesis upon The thesis after clarified the theory of Business Model Canvas, as well as implemented it into internal project funding processes of building a shared data warehouse and supply value added services in preventive medicine Applying the Business Model is believed and proven to be effective way to look at the startup project from a more business point of view and gain advantage through the visuality for the startup 4.1 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 60  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 4.2 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 4.2.1 An integrated information system 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 61 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 62 4.3 Modeling the quality of services provided by providers of preventive medicine services 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 to 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 4.4 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 63 CONCLUSION 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 64 REFERENCES Alan, B, Emma B, (2007), 2nd Edition Business research methods, Oxford, Oxford Press pp.126 – 148 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 Ballard Chuck, et al (1998) Data Modeling Techniques for Data Warehousing IBM International Technical Support Organization; Pgs 36-37 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 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A Yes B No 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? ……………………………………………………………………… ……………………………………………………………………… B No Does your organization find it difficult to find potential customers? A If Yes, what are the reasons? ……………………………………………………………………… ……………………………………………………………………… B If No, ……………………………………………………………………… ……………………………………………………………………… 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? A Yes B No 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 70 a system for providing information, updating information and advice about preventive medicine for you and your family? A Less than 50,000 VND/ month B From 50,000 – 100,000 VND/month C More than 100,000 VND/month What features you need in the system of providing information about preventive medicine? A Fast and user friendly B Accurate information C Regularly updated information D Customer support service E All of the above F None of the above Do you think the backup medical portal is a good reference and a good source of data for developing your insurance / medical services? A Yes B If No, What you think a good source? ……………………………………………………………………… ……………………………………………………………………… Do you think that cultivating knowledge about preventive medicine, health care, vaccination is essential for pregnant women and women with raising their young children? A Yes B No Where you usually find out about vaccination information, information on early diagnosis and information on health care? …………………………………………………………………………… 71 …………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………… 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? A Yes B If No, what is the criteria for a software in your opinion? 11.What are you most interested in using an information assistant? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… 72 APPENDIX B LIST OF RELATED WORKS No Author Research title Year of publication Steve Blank The Four Steps to the Epiphany 2013 Eric Ries The Lean Startup: How Constant Innovation 2011 Creates Radically Successful Businesses, Penguin Group, London Nathan Furr Nail It then Scale It: The Entrepreneur's & Paul Guide to Creating and Managing Ahlstrom Breakthrough Innovation: The lean startup 2011 book to help entrepreneurs launch a highgrowth business Brant The Entrepreneur's Guide to Customer Cooper, Development: A cheat sheet to The Four Patrick Steps to the Epiphany 2010 Vlaskovits, Steven Blank (Foreword) Ash Maurya Running Lean: Iterate from Plan A to a Plan 2012 That Works Phan Anh, Lean Startup research and application in Bui Schlumberger Vietnam Nguyen Lean production and application to Thanh Minh Vietnamese enterprises Ngo My Application of management tools to enhance Tran & Vo efficient efficiency in Universities of Can Minh Tri Tho 73 2012 2013 2016 ... TRỊ VÀ KINH DOANH - DƯƠNG CÔNG ĐỨC STUDY ON SMART - STARTUP BUSINESS IN PREVENTIVE MEDICINE USING BUSINESS MODEL CANVAS NGHIÊN CỨU MƠ HÌNH KINH DOANH KHỞI NGHIÊP THƠNG MINH TRONG LĨNH... BUSINESS IN PREVENTIVE MEDICINE 3.1 Preventive Medicine Industry in Vietnam 3.1.1 Current situation of preventive medicine industry in Vietnam Prophylactic medicine or preventive medicine, is... useful for Smart - startup business in preventive medicine Research Questions This thesis studies Business Model Canvas in developing a business strategy for preventive medicine management system