Biz model for ion proton dna sequencer

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my students use ideas from my class on business models to develop a business model for ion proton's DNA sequencer. This sequencer uses semiconductor technology to read an organism's DNA sequence and is faster and cheaper than existing sequencers. This presentation describes the value proposition, customer selection, method of value capture and other aspects of a business model for Ion Proton's DNA sequencer

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Biz model for ion proton dna sequencer

  1. 1. Ion Proton Sequencer Jay Wyn; Liang Zhu; Yutong; Swathi; Magdeline; James
  2. 2. Ion Proton DNA Sequencer
  3. 3. Content• Introduction• Value Proposition• Value Added – Cloud Service• Value Capture• Strategic Control• Potential Market
  4. 4. What is DNA Sequencing?• Process of reading nucleotide bases in a DNA molecule• DNA Consist of four type of bases: • Thymine, Adenine, Guanine, Cytosine• Current DNA Sequencing is called Next Generation Sequencing (NGS)
  5. 5. Source: http://bioweb.wku.edu/courses/biol350/dnasequencing13/review.html
  6. 6. Why DNA Sequencing?• Study of building blocks of humans and other organisms• Study of bacteria virus, leads to better cure and prevention – 2011, outbreak of e-coli virus. DNA sequencing was used to better understand traits like toxicity and immunity to which antibiotic.• Future, help with early detection or early warning that a patient may have a certain disease• Becoming very cheap, so it is becoming affordable
  7. 7. Key Players Roche’s 454 • GS Junior System (Late 2009) • GS FLX+ System (2008) Illumina • Illumina MiSeq (2010) • Illumins HiSeq (2010/2012) Life’s Ion Torrent • Personal Genome Machine (PGM) (Late 2010) • Ion Proton (2012) Oxford Nanopore Technologies • MinION • GridION
  8. 8. Comparison• Roche’s 454• GS Junior, GS Flx+• Uses Pyrosequencing • Illumina • Miseq, Hiseq • Uses Solexa Sequencing
  9. 9. Ion Proton• PGM, Ion Proton I• Uses Semiconductor Sequencing• Measures the hydrogen ion production during polymerization of the DNA
  10. 10. Sequencing by Synthesis Ion Torrent H+Detection using an Ion SensorIllumina and Roche Pyrophosphate Detection Using Optics
  11. 11. Technology Comparison• Detection of ion release is simpler and faster than optical method from 454 Sequencing and Illumina• Ion proton uses semiconductor, thus is able to improve at a high rate in the future 314 Chip 316 Chip 318 Chip Proton 1 Proton 2 (1.2 Million (6.2 Million (11.1 Million (165 Million (660 Million Wells) Wells) Wells) Wells) Wells)
  12. 12. Moore’s Law
  13. 13. Threats• Oxford Nanopore Technologies• MinION (Disposable), GridION• Uses nanopore sequencing, which measures electric inductance of the nucleotides
  14. 14. Strategy Canvas for Life Technologies 5 4 Scoring 3 2 1 0 Ion proton Factors of Competition illuminas HiSeq 2500 Fair comparison of Illumina’s HiSeq 2500 and Ion proton: •Same time of release (10th January 2012) •Both claims to sequence an entire genome
  15. 15. Value Proposition Cheaper Faster Smaller Ion Proton
  16. 16. Value Proposition Cheaper Faster Smaller Machine price: IP: 2hrs IP:149K Vs IP: Benchtop sequencer vs HiSeq2500: 27hrs Hiseq2500:$740K Seq price/genome: IP:1K vs Higher throughput Hiseq2500:$3-5K
  17. 17. Customer Selection Universities Research Centres Final User Immediate Government Users vs Private(E.g. govt funded genome centres)
  18. 18. Customer SelectionClothes,furniture,Bio-synthetic Consumer Targeted Drug products drugsdetergents companiesBio-Fuels, AlternativeFuels from energy OtherVirus Researchers Produce human- compatible proteins from other organisms More resistant crops  better Agriculture yields Genetic Engineering
  19. 19. Drug Development:Traditional Value Chain 1990’s Value chain : Step-by-step Improved value chain: Simultaneous activities
  20. 20. Role of Ion Proton DNA sequencing with Ion Proton make target discovery faster  faster product development.
  21. 21. Value Chain Of Drug Development Pharma
  22. 22. Global Market Analysis
  23. 23. If genome sequenced for < $1K… App Developers Seq. Techniques Seq. Firms Seq. Instrument New SHAKE Entries – Improvements OUT? competition
  24. 24. Emerging Needs Head towards…DataProcessing: Hardware CaptureAnalyzing + market share and to reapinterpreting SERVICE benefits fromservices network effects
  25. 25. Cloud Service Ion Reporter Future Multisided Development platform Enhanced Data Mobility
  26. 26. Ion Reporter • Import, annotation, analysis, archive  Reduce workload, shortening time  Flexible, reproducible Integrated Annotation Ion Reporter Sequencing Configurable reads Analysis Archiving Standard
  27. 27. Ion Reporter • Cloud based  Cost-saving, highly secure • Open source  Allows inspection and improvements • Aim to create Standard Speed, Simple, Scalable, Secure Standard
  28. 28. Multisided platform • Clients --Our services -- App developers • Dynamic Eco-environment  Enhanced communication  Targeted problem-solving • “One-stop shopping” for sequencing users Clients App developers/ Bioinformatics companies Network Effect
  29. 29. EnhancedData Mobility • Sharing the info with greater ease - Apps for desktop, laptop, iPad • Monitoring progress; noticing results
  30. 30. FutureDevelopment • Cooperate with Clinics and Hospitals to build a non-profitable database for treatment and research • Improve healthcare services • A one-stop workstation for our clients
  31. 31. Value Capture 1. Traditional method, Short- 5. Lisciencing/ term primary Commision. Sales Cloud Long-term goal Maintenance 4. Accept 2. Free for a few request for one-times and charge time or multiple- subsequently Service time sequencing 3. Rent out the machine to targeted customers Rental
  32. 32. Value Capture Sales/ Upgrades • Cheaper, Faster, Smaller Machine Cost per Sequencing Throughput Cost (USD) Run (USD) Run-Time Ion Torrent’s Ion 149k 1000 2-4 hrs 10 Gb Proton I Ion Torrent’s PGM 50k 750 2-3 hrs 1 Gb (318 Chip) Illumina Hiseq 740k 23,000 27 hrs 120 Gb 2500 Illumina Miseq 125k 965 1 day 4 Gb Roche 454 - GS 150k 6000 23 hrs 700 Mb FLX Titanium XL+ Roche 454 - GS 500k 1000 10 hrs 35 Mb junior
  33. 33. Value Capture 1. Traditional method, Short- 5. Licensing/ term primary Commision. Sales Cloud Long-term goal Maintenance 4. Accept 2. Free for a few request for one-times and charge time or multiple- subsequently Service time sequencing 3. Rent out the machine to targeted customers Rental
  34. 34. Cash Flow End user $ Tranditional Cloud Activities $ $ App developers
  35. 35. Strategic Control Nature • New entrants tend to utilize new technology • Semi-conductors DNA Sequencing technology is hard to reverse- engineer
  36. 36. Strategic ControlPatents
  37. 37. Potential market
  38. 38. Applications Mitochondrial Disease Clinical research Better diagnosis Better result Replace the current Improve the quality of invasive and costly researches as well as muscle biopsy test. provide new directions for researching.
  39. 39. Mitochondrial disease• Mitochondrial disease – A group of diseases which are characterized by problems of decreased energy production.• Muscle biopsy – Invasive & costly (as high as $50.000). – Complicated & time-consuming. – Cannot produce absolute results.• Benefits – Cost: $1k + analyzing cost vs. $20k-50k. – Time: A few days vs. 3-4 weeks. – Quality: more absolute results.
  40. 40. Applications Mitochondrial Disease Clinical research Better diagnosis Better result Replace the current Improve the quality of invasive and costly researches as well as muscle biopsy test. provide new directions for researching.
  41. 41. Clinical research• Improved quality – Combine test results with test subjects’ genetic data to derive more detailed results. • Provide basis for personalized treatment. – Build up a gene database that stores more than the raw genetic data for future researches.• New directions – Discover the existence of previously unknown mutations as origins of disease.
  42. 42. Clinical research Patient Researcher More patients More data = = More data More researchers Network effectResearch quality App developer More data + tools More researchers = = Improved quality More app developers
  43. 43. Thank You

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