dentalOptics E245 final presentation

Transcript

1. dentalOptics Amit Desai, Aaswath Raman, Ashwin Madgavkar, Alok Vasudev Interviewed: 72 people Final Presentation Revolutionizing dental diagnostics through non-invasive imaging
2. dentalOptics The A-Team Ashwin Madgavkar MBA/M.S. BCG, UT Austin Amit Desai Ph.D., Mat. Sci Cambridge, NC State Aaswath Raman Ph.D., App. Physics Microsoft, Harvard Alok Vasudev Ph.D., EE UT Austin Mentor: Ethan Bloch
3. dentalOptics Dental lighting is ripe for innovation
4. dentalOptics Original Idea : Inside-Out Dental Lighting Bring the light-source inside the mouth Provide better, more consistent illumination
5. dentalOptics Overview I. Understanding our Customers II. Finding Customer & Value Proposition Fit III. Building the Business: Channels, Partners & Regulators IV. Introducing.. periOptics
6. dentalOptics Overview I. Understanding our Customers II. Finding Customer & Value Proposition Fit III. Building the Business: Channels, Partners & Regulators IV. Introducing.. periOptics
7. dentalOptics Version 0 The A-Team •  Dentists •  Hygienists •  Specialists •  Chains •  Dental schools •  Hospitals •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Personal service •  Training & demos •  Direct sales •  Trade shows •  Dental schools •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal
8. dentalOptics Getting out of the building
9. dentalOptics Three major dentist archetypes Care providers “Bentley” dentists “Chain” dentists Most typical dentist •  Primarily concerned with patient care •  Worried about costs •  Optimizes lifestyle and income Uses technology to up-sell additional procedures •  Typically in high-income areas •  State-of-the-art facilities and technologies •  Early adopter of dental devices Equipment handled by purchasing department •  Uses financial metrics to make decisions •  Technologies standardized across all offices
10. dentalOptics Caregiver Business Owner
11. dentalOptics Version 0 The A-Team •  Dentists •  Hygienists •  Specialists •  Chains •  Dental schools •  Hospitals •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Personal service •  Training & demos •  Direct sales •  Trade shows •  Dental schools •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal Hypotheses Tested: •  Intra-oral lighting provides value for all dental professionals •  Channels
12. dentalOptics Immediate changes •  Current lighting was satisfactory for most uses •  However dentists expressed interest in better lighting for particular sets of procedures
13. dentalOptics Immediate changes •  Current lighting was satisfactory for most uses •  However dentists expressed interest in better lighting for particular sets of procedures •  Redid customer segmentation: Segment by Procedure Length
14. dentalOptics Version 0 The A-Team •  Dentists •  Hygienists •  Specialists •  Chains •  Dental schools •  Hospitals •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Personal service •  Training & demos •  Direct sales •  Trade shows •  Dental schools •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal
15. dentalOptics Version 0+ The A-Team •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Reduced time •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Procedure length - Short - Medium - Long •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education
16. dentalOptics Version 1 The A-Team •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Reduced time •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Procedure length - Short - Medium - Long •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education
17. dentalOptics Version 1 The A-Team •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Reduced time •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Procedure length - Short - Medium - Long •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education Hypothesis Tested: •  Lighting needs differ based on procedure length
18. dentalOptics Procedure length learnings Procedure length Long (> 2 hrs) Moderate (1-2 hrs) Short (< 1 hr)
19. dentalOptics Procedure length learnings Procedure length Long (> 2 hrs) Moderate (1-2 hrs) Short (< 1 hr) Anesthesia Patient comfort / movement no longer an issue   Surgical microscope   Loupe light   Clamps Existing lighting solutions
20. dentalOptics Procedure length learnings Procedure length Long (> 2 hrs) Moderate (1-2 hrs) Short (< 1 hr)   Root canals   Crack detection   Color matching Identified key procedures:   Done by all dentists   Lighting critical Segment by Procedure Type
21. dentalOptics Version 1 The A-Team •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Reduced time •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Procedure length - Short - Medium - Long •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education
22. dentalOptics Version 1 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Improved diagnostics •  Superior patient experience •  Reduced procedure time •  Procedure type - Root canal - Crack detection - Color matching
23. dentalOptics $200 MM/yr US market size •  180,000 dentists •  2300 visits per year average •  Consumable for each patient •  ~$5 cost per consumable •  10% of visits •  $0-100 cost per tool •  20% of dentists $25 B dental equipment industry Source: US BLS, ADA, dentist interviews, industry research" $200 M serviceable diagnostic tool market TAM: $2B
24. dentalOptics $200 MM/yr US market size •  180,000 dentists •  2300 visits per year average •  Consumable for each patient •  ~$5 cost per consumable •  10% of visits •  $0-100 cost per tool •  20% of dentists $25 B dental equipment industry Source: US BLS, ADA, dentist interviews, industry research" $200 M serviceable diagnostic tool market TAM: $2B Consumables are key
25. dentalOptics Version 1 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Improved diagnostics •  Superior patient experience •  Reduced procedure time •  Procedure type - Root canal - Crack detection - Color matching Key Learning: •  Consumable component drastically improves revenue potential
26. dentalOptics Overview I. Understanding our Customers II. Finding Customer & Value Proposition Fit III. Building the Business: Channels, Partners & Regulators IV. Introducing.. periOptics
27. dentalOptics Version 2 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Improved diagnostics •  Superior patient experience •  Reduced procedure time •  Procedure type - Root canal - Crack detection - Color matching
28. dentalOptics Version 2+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Improved diagnostics •  Superior patient experience •  Reduced procedure time •  Procedure type - Root canal - Crack detection - Color matching Hypothesis Tested: •  Lighting needs differ based on procedure type
29. dentalOptics Segmenting by Procedure Types   Color matching!   Crack detection!   Root canal!   More natural light!   Multiple teeth at once!   Increased visibility in tight spaces!   Dentists!   Reduce procedure time! Procedure Intra-oral light benefit   Improve Diagnostic Capability!
30. dentalOptics Best response: Transillumination   Color matching!   Transillumination for Cracks!   Root canal!   Proactive detection vs. waiting for patient pain!   Multiple teeth at once!   Track crack/ defect progress!   Dentists!   Reduce procedure time! Procedure Intra-oral light + imaging benefit   Improve Preventative Diagnostic Capability!   Drive patient loyalty and return visits!
31. dentalOptics Prototyping Transilluminated tooth using fiber or LED source
32. dentalOptics Prototypes
33. dentalOptics Form & Function form function
34. dentalOptics Physical prototypes help! •  Handing dentists a crude clay mockup got us better, more actionable feedback •  A great way of gauging whether new functionality satisfies a need
35. dentalOptics Interest, but not excitement Dentists generally liked the prototype Key Takeaways 1 2 3 4 5 Imaging back teeth is essential Market would be somewhat limited / niche Dentist # Interest in prototype None Very Positive Neutral
36. dentalOptics Version 2+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Improved diagnostics •  Superior patient experience •  Reduced procedure time •  Procedure type - Root canal - Crack detection - Color matching Hypothesis Tested: •  Lighting needs differ based on procedure type
37. dentalOptics Version 2+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Crack detection •  Reduced procedure time •  Improve preventative diagnostics •  Increase # of procedures •  Provide a patient record
38. dentalOptics We were tipped off to a potentially larger diagnostic market: Keeping our ear to the ground..
39. dentalOptics “This would be a game changer!” “A new standard of care” Non-invasive gum disease detection We were tipped off to a potentially larger diagnostic market: Keeping our ear to the ground..
40. dentalOptics This should get poked into your gums 192 times during a dental visit …there must be a better way
41. dentalOptics Version 2+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Crack detection •  Reduced procedure time •  Improve preventative diagnostics •  Increase # of procedures •  Provide a patient record Customer Insight: •  Periodontal imaging could be a larger market •  Periodontal imaging
42. dentalOptics Version 3 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Crack detection •  Reduced procedure time •  Improve preventative diagnostics •  Increase # of procedures •  Provide a patient record •  Periodontal imaging
43. dentalOptics Version 3+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Crack detection •  Reduced procedure time •  Improve preventative diagnostics •  Increase # of procedures •  Provide a patient record •  Periodontal imaging Hypothesis Tested: •  Periodontal imaging is of greater interest to dentists
44. dentalOptics Version 3+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Crack detection •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice •  Periodontal imaging ✔
45. dentalOptics Version 3+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice New hypothesis: •  Insurance companies could be strategic partners
46. dentalOptics Overview I. Understanding our Customers II. Finding Customer & Value Proposition Fit III. Building the Business: Channels, Partners & Regulators IV. Introducing.. periOptics
47. dentalOptics Version 4 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice
48. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice Hypotheses Tested: •  Insurance companies would embrace this technology •  FDA compliance is not prohibitive
49. dentalOptics Key Partner: Insurance “Periodontal probing is the single most inaccurate piece of data we get from dentists. Fraud and abuse are common” Largest dental insurance provider in California
50. dentalOptics Key Partner: Insurance “Periodontal probing is the single most inaccurate piece of data we get from dentists. Fraud and abuse are common” Dental Policy Committee •  Meets regularly to evaluate new technologies •  Determines which technologies will be added to annual contracts based on efficacy and cost savings to insurance company Willing to recommend use of new technology Need more clinical data, but are enthusiastic about the idea!
51. dentalOptics What we make Dentist Dental Optics ~$2000 Device cost (one time) ~$2.50 per patient Disposables
52. dentalOptics What the dentist normally makes Dentist Patient Insurance Co-pay Membership $250 $250 Equipment / Variable Costs Note: Assumes 50/50 copay-insurance split
53. dentalOptics What we’d add for the dentist Dentist Patient Dental Optics Insurance Co-pay Membership ~$2000 $250 Device cost (one time) $250 ~$2.50 per patient Disposables Equipment / Variable Costs Device creates additional periodontal procedures Note: Assumes 50/50 copay-insurance split
54. dentalOptics Three classes of FDA Devices Class I (eg, dental pick, gloves, toothbrush) Class II (eg, dental fillings, ceramics, drills) Class III (eg, stent, implantable pacemaker) Criteria FDA Requirements Minimal health and safety risks, established precedent Need to register with FDA but not get approval before putting it on the market Presents safety and health risks that aren't completely controlled by GMP (good manufacturing processes) Submit 510-K application to FDA, include detail about device, marketing materials, device safety features, and other paperwork Invasive, inflammable, or presents other significant significant safety risks. Often times a new type of device Very thorough process similar to drug approval. Requires clinical trails and mountains of paperwork
55. dentalOptics Some regulatory risk Device key risk: misdiagnosis Proxy suggests our device will be class II Intra-oral, non-invasive laser light caries (tooth decay) detector Approved as class II medical device. Clinical tests conducted to prove accuracy Device carries little direct risk •  Intra-oral, non-invasive probe •  Uses non-harmful wavelengths of radiation Key risk: misdiagnosis •  Clinical evidence required to establish efficacy Source: Iowa Dental Supply
56. dentalOptics Class II FDA approval process •  Construct device prototype •  Determine device diagnostic capabilities •  Begin FDA 510(k) documentation •  Enroll 1-2 periodontists in preliminary efficacy study Feasibility study 0 18 9 3 6 12 15 Month Class II device FDA trials and approval •  Determine predicate device(s) •  Enroll 4-7 sites and 10+ periodontists in study •  Fix critical end-points based on device capability (eg, 1 mm measurement error) •  Submit 510(k) to FDA and obtain approval $200 K 30 patients $200 - 400 K 200-400 patients $1,000 – 2,000 K 1000-2000 patients Without a predicate Costs Trial Size
57. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies ✔ ✔ •  Direct sales •  Trade shows •  Distributor •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice Hypotheses Tested: •  Insurance companies would embrace this technology •  FDA compliance is not prohibitive
58. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice Question asked: •  How do we sell our product?
59. dentalOptics Private Practice Dentist Purchasing Department Big Distributors! Institutional Dentist Direct Sales Channels
60. dentalOptics Private Practice Dentist Purchasing Department Big Distributors! Institutional Dentist Direct Sales Channels 80% Market Share 30% Margin
61. dentalOptics Private Practice Dentist Purchasing Department Big Distributors! Institutional Dentist Direct Sales Channels 80% Market Share 30% Margin Continuing Education Courses Magazines & Email Trade Shows
62. dentalOptics Dental Charting Software Entrenched incumbents in the management/charting space Will accept new images: intra-oral cameras do this already without needing explicit partnerships (anything beyond images will require deep integration) Our own software: extra barrier for many dentists based on conversations, but some tools have succeeded
63. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Patterson/ Schein •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Schein/Patt. •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice
64. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Patterson/ Schein •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies Hypothesis Tested: •  Value Propositions are strong enough to sell products •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice
65. dentalOptics Our Sales Pitch
66. dentalOptics Patient experience is key •  Accuracy •  Reduced time •  Patient comfort •  Patient education •  Reduced malpractice exposure •  Up-sell procedures •  Improved record keeping 
          Value Props Cost Props $1000 $2000 $8000 “I’d write you a check today!” “This seems reasonable” “We would have the discussion” “It would be cost prohibitive” Per patient consumable cost < $5
67. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Patterson/ Schein •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice
68. dentalOptics Version 4+ The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Patterson/ Schein •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Improved records •  Patient education
69. dentalOptics Version 5 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Patterson/ Schein •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Improved records •  Patient education
70. dentalOptics dentalOptics
71. dentalOptics dentalOptics periOptics
72. dentalOptics Our Product: periOptics
73. dentalOptics Our Product: periOptics $2000 per unit $2.50 per silicone sleeve Distributed through: Patterson Dental & Direct Imaging Resolution: < 1mm
74. dentalOptics $400 MM annual total addressable market for Periodontal Diagnostic Device 0 50 100 150 200 250 300 350 400 450 Device sales Consumables Total $400 MM $320 MM $75 MM •  Device cost - $2000 •  Amortized over 4 years •  $2.5 consumables per patient •  128 MM patients per year Total addressable market ($MM) Source: Department of Health and Human Services
75. dentalOptics Growth Plan Feasibility study Month Class II device FDA trials and approval $300 K $1.5-2 M Costs Regulatory Product Development Scale-up Preparation Early Prototype Dev. Planning with Manufacturers Product Cycle I Product Cycle II 0 24 6 12 18
76. dentalOptics Growth Plan Feasibility study Month Class II device FDA trials and approval $300 K $1.5-2 M Costs Regulatory Product Development Scale-up Preparation Early Prototype Dev. Planning with Manufacturers Product Cycle I Product Cycle II $500* Unit Economics Cost of Goods Margin $900 $600 Distributor Revenue Cost to Dentist: $2000 *At scale: 10K units 0 24 6 12 18
77. dentalOptics Next Step: Evaluate Technical Options Optical Acoustic function
78. dentalOptics Lessons Learned Physical prototypes engage potential customers Consumables are key to revenue models in dental devices Listen to your customers for new directions Caregivers don’t think exclusively like businesspeople: the patient experience is paramount “Hi, I’m a Stanford student…” gets you a conversation with pretty much anyone
79. dentalOptics Appendix
80. dentalOptics Version 0 The A-Team •  Dentists •  Hygienists •  Specialists •  Chains •  Dental schools •  Hospitals •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Personal service •  Training & demos •  Direct sales •  Trade shows •  Dental schools •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal
81. dentalOptics Version 1 The A-Team •  Improved diagnostics •  Better customization •  Superior patient experience •  Lower price •  Reduced time •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Procedure length - Short - Medium - Long •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education
82. dentalOptics Version 2 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Improved diagnostics •  Superior patient experience •  Reduced procedure time •  Procedure type - Root canal - Crack detection - Color matching
83. dentalOptics Version 3 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Crack detection •  Reduced procedure time •  Improve preventative diagnostics •  Increase # of procedures •  Provide a patient record •  Periodontal imaging
84. dentalOptics Version 4 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Distributor •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Increase # of procedures •  Improve records •  Patient education •  Reduced malpractice
85. dentalOptics Version 5 The A-Team •  Product sales •  Licensing (physical & IP) •  Accessory sales •  Consumable sales •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Prototyping •  Design •  Manufacturing •  Marketing •  Sales •  Service •  Stanford •  IP •  Human •  Our network •  Human resources •  Manufacturing •  Marketing •  Sales •  Compliance •  Warranties & support •  Legal •  Direct sales •  Trade shows •  Patterson/ Schein •  Personal service •  Training & demos •  Continuing education •  Periodontal imaging •  Manufacturers •  Resellers •  Distributors •  Marketers •  Trade organizations •  Insurance companies •  Accuracy •  Reduced time •  Patient comfort •  Improved records •  Patient education
86. dentalOptics Periodontal care right now Considerable undertreatment 70% of offices don’t regularly do a full probe test of all teeth! Time & effort 50% of US population has mild-severe periodontitis, only 5-10% of are treated “The number-one reason dentists are sued is failure to diagnose periodontal disease”* 30% of patients don’t feel the need for the recommended treatment* Increases with aging population *K. Esler, Sidekick (2009)
87. dentalOptics Image References Slide 3: http://www.baldheretic.com/pics/friends/dentist.jpg Slide 4: http://www.futurity.org/wp-content/uploads/2011/06/open_wide_1.jpg Slide 10: http://en.wikipedia.org/wiki/Strange_Case_of_Dr_Jekyll_and_Mr_Hyde Slide 39: http://www.perio.org/consumer/graphics/toothdiagram.gif Slide 40: http://0.tqn.com/d/dentistry/1/0/P/4/perioclose.jpg