Bella Healthcare Assignment

Main Points:

Project TKO A Single Channel Portable ECG.

Project Baton A Failure.
EKG Equipment
Target Market
Indian R&D Team.
Market Demand in emerging economies (9%10%).
Catering Rural area, Early to explain to physicians.
Increase in CAD in India.
East to transport for physicians.

Objectives/Goals:

1. Customer Objectives Profitability ease of use connectivity affordability.

2. Constraints Expert competition 90% Lack Health Insurance Clinics
need more ROI.
3. Highest Heart disease in India more affordable diagnosis is needed in
India.
4. Huge Potential in India.

Resources and Capabilities to build a new product

1. Physical resources
2. Human Resources
3. New Product Kawu 606 & Other successful Machinery.

Highlights:

1. Design, Developing & selling in the same market (Local Geographical

area).
2. Co-ordination between India & US.
3. Cross- Culture issue Project Baton failure.
 Bella Healthcare Assignment

Question: What is Bella Health Care India Model and Why cancel TKO?

Answer:

Technical Knockout, is single channel EKG, Bella Healthcare India is

planning to launch in Indian market. As per my opinion, Bella has many
reasons to take up this opportunity. I will categories these reasons in two broad
categories,
1. External and
2. Internal factors.

External Factors: First external factor that affects decision of Bella to take TKO
is large population of India with insufficient health care services. Indias
population is large and growing but healthcare facilities are not growing with
the same rate. Also most of the medical facilities of the country are
concentrated in urban areas, leaving rural area with insufficient healthcare
facilities. Unfortunately, most of the Indian population stays in small towns and
villages. Another fact, in line with this, is availability of less no of physicians
and specialists in the field of heart diseases. This has created room for medical
services and devices sellers to expand their businesses in the country.

The EKG global revenue chart shows that between 2010 and 2015, 9% 12%
of the global revenue will come from Asia-Pacific. As one of the second highest
population country in Asia-Pacific, India will definitely contribute major portion
of the revenue. The figures in the chart substantiate the fact that Bella has
good scope to expand its services in the country.

Second factor that helps Bella to take go ahead decision for TKO is increased
rate of heart diseases in the country. As per different epidemiological and
angiographic studies, Indians are showing heart disease symptoms at young
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age and there are approximately 30 million CAD patients in the country. This
number is expected to double by 2015. These patients will definitely need more
and more medical check up and diagnosis facilities, that are not available at
this point of time. This will give scope to Bella to capture the growing market.

Third factor is raising awareness towards health that in turn increasing

willingness of Indians to pay for medical services. Willingness is one of the
critical factors in any market and in this case this factor is already in favour of
medical industry and so of Bella healthcare. These favouring factors come with
the great challenges, which Bella has to tackle.
Challenges:

First challenge is competition with world class healthcare company GE, local
company BPL health and few more Chinese and Korean companies. These
companies have already captured considerable market. But not all of them are
providing complete solutions to suit Indian market. Primary need of the Indian
market is cost effective medical instruments. Few companies are providing
cheaper solutions but those solutions come without any warranty and post-
sale customer service. Bella has identified the challenge and need of providing
cost effective complete solution to satisfy needs of Indian market and defined
its product TKO with four design principles; profitability, affordability, ease-of-
use and connectivity. Many of the Indian families fall in low income categories
and health insurance facilities are not yet spread across the country, especially
rural part of the country. Because of these factors Indians are more inclined
towards cheaper medical facilities and so investors are inclined towards
reasonable ROI. This justifies the profitability and affordability criteria of
Bellas TKO, which will help medical professionals to set up good ROI on its
investment while providing affordable solution to the people. Limited number of
physicians and specialists in the country can limit the use of TKO. Also
concentration of population in small towns and villages, where transport
facilities are not up to the mark, creates need of portable devices. To tackle
these issues Bella has defined its third design principle of ease-to-use. This
will make TKO weight 2 Kg. or less and one touch operating device so that
physicians could handle it with minimum training. Indian villages still face
electricity issues and Bella is will provide solution to this problem by giving
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battery operated device. Bella is addressing issue of unavailability of trained

physicians with its fourth design principle connectivity. This design feature
will help physician to transmit data wirelessly to cardiac speciality centres and
work with general practitioners to diagnose the issue. Thus these four design
principles will help Bella to address all the key issues of heart disease
diagnosis equipments. In addition to the new wireless data transfer feature,
Bellas design team is exploring the possibility of adding DICOM feature in
TKO. Even though DICOM feature is not critical in near future, it will help Bella
to differentiate its product from GEs similar product and will give upper hand
in marketing the device. Now, lets concentrate on internal factors.

Internal Factor: Bella healthcare India, part of global organization, has its
own strengths, which will lead it to the successful handling of TKO.
First strength of the company is its India head Joseph Cherian, who has
handled initial set up of Bella India and successfully leaded the production of
many devices, and Design head Jeremy Manning, who came from US with 10
years of rich experience in medical devices development and manufacturing.
Cherian has his own proven, tough and no-nonsense management style and he
always keeps close eye on production schedules and product quality. These two
leaders worked together before with Bella India team for successful delivery of
Fiit X17 and so are aware of strengths, weaknesses and issues of Indian design
and production teams. This awareness will help them to identify and tackle
different issues. It will also help them to define strategy, which will suit to the
Indian organization. Most important, both the leaders are very confident about
TKO and that will help them to lead the team to the success.

Second factor is easy and ample availability of Indian engineering talent at

affordable cost. This talent can be best utilized further with the product
specific trainings. This makes replacement and expansion of the work force
easy in difficult situations.

Third factor, that makes Bella India more suitable for TKO, is its cultural and
location proximity to the Indian market. This helps team to understand and
address key needs of Indian market. Also, proximity will help to find low cost
 Bella Healthcare Assignment

component suppliers and deal with them effectively. These elements will reduce
cost of production, speed up the prototype and production process and in turn
will reduce time to market.

Fourth factor is already built and proven base of cost effective manufacturing
of Bella India. This shows the experience of the unit in cost reduction
techniques. This experience further will help to reduce TKO development and
production cost. This prediction of cost effectiveness can be substantiated by
Exhibit 1, which depicts that design and production in India will reduce the
production cost to approximately 55%. Also, even though TKO is new project
for Bella India, its parent company in US has a single channel EKG product
already marketed. This may help Indian team to get any last minute design
assistance or make them aware of common problems the product will face. This
will speed up their design and production process. Last and foremost important
internal factor is experience of the Bella Indias team of many successful
production deliveries and failure of project Baton. This not only helped team to
realise its strength but also helped to understand its mistakes. Experience of
Baton has already covered the learning curve of the team and that is one of key
speeding factor to TKO. Bella Healthcare India will definitely face few issues
during TKO production. One of the key issues is time to market, especially
when companies such as GE, BPL are already in market. But the well-
equipped, talented, experienced team of Bella with its four design principles
will handle all the issues and lead to the success. Looking at the features Bella
is incorporating in TKO; it is not providing EGK equipment but the complete
solution for CAD diagnosis. If the team successfully completes this project and
captures even 10% of the market for TKO, it will provide approximately $3
million business, over the period of approximately 7 years, to Bella Healthcare.
If I move out of the boundaries of India and consider other developing
countries, then the prospects for business are even higher as most of the
developing countries have similar criteria for healthcare facilities and
equipments.