1. Group 10: Shane Stiller, David Berry, Colin Kraczkowsky
June 8, 2014
TIM 80C
Business Plan
Mednology Business Plan
I. Introduction
I a) Executive Summary
Our company Mednology was established in 2014, we are a growing, innovative
company in nanotechnology. After assessing companies involved in the nanotechnology
space, we have determined that the technology isn’t far from being realized as a reality,
(give-or-take within the next 25 years). We will be at the frontier of this rapidly
expanding industry providing Mednology with a powerful platform. Since we at
Mednology will be one of the first to use nanotechnology to develop a medical
treatment, we have the rare opportunity to shape the future of a technology and show
how to use it for good. We have strived to combine medical practices with future
technology so that we can treat specific cancer ailments with reliable results.
Within the decade our leading product Nanites will have a successful prototype
and be prepared to enter the market to battle cancer around 2025. Our company has
over a decade to be one of the first to get a solid product out in the market. When our
Nannites are ready to begin treating patients, those afflicted by melanoma cancer will
rush to us from around the world in search of reliable relief. Our product competes in the
market by offering a quality procedure with high reliability, in the least invasive way
possible for our patients.
Mednology expects to seize around 10% of the market seeking quality
specialized cancer treatment. Our customers will include hospitals of varying degrees,
whom have many patients in need of our services. Nannites will be highly effective and
reliable at accomplishing their purpose for our target patients who are seeking quality,
minimally invasive treatment. This makes hospitals a prime buyer of our product
because they have a large variety of patients, many of whom will be ecstatic to discover
a new reliable and comfortable cure.
Unlike other means of cancer therapy, which sometimes can only keep the
ailment at bay or caused physical trauma through surgical means, Mednology’s
Nannites will eliminate the ailment all together. No damage will be endured by the
patient during treatment due to the noninvasive nature of Nannites - meaning patients
Page | 1
2. won’t be ridden to long periods of recovery. Because Nannites can seek out and target
specific cancer cells, patients don’t have to deal with the debilitating effects of
chemotherapy. As a cure an preventative means of disease, Nannites are thus safer
than either surgical or radioactive procedures. Lastly, the nature of Nannites lends itself
to adaptability - they can be used for much more than just curing cancer, but also in the
cure and prevention of other ailments as well.
_____________________________________________________________________
Where we are going.
Company Vision
Mednology seeks to lead a new age of medicine to our world, providing us all
with a new era of defenses against the most powerful diseases humans face today. The
mark of death that terrorizes so many by crushing the promise of tomorrow will be
nothing more than a harmless, misidentified beauty mark from yesterday due to a mix of
medicine and technology – Mednology.
Who we are.
Company Mission Statement
Our goal at Mednology is to relieve the grief that cancer has stricken millions
with. Technological advancements have allowed for treatments, however many of the
current options are not reliable. Sometimes the side effects of treatments do more harm
than good, damaging everything to alleviate a small portion of the ailment. Mednology
seeks to be innovative – we devise solutions to simply remove the ailments of patients
while being as unintrusive as possible. Mednology fuses nanotechnology with the
science of medicine in our product Nannites to be used as an effective cancer
treatment.
_____________________________________________________________________
I b) Management Team
Chief Executive Officer - CEO - Shane Stiller
With a background in Technology and Information Management, Shane’s
experience will most benefit the firm in a prominent role. As chief executive officer,
Shane’s main responsibilities will include developing and implementing high-level
strategies, making major corporate decisions, managing the overall operations and
resources of a company, and acting as the main point of communication between the
board of directors and the corporate operations. Given that we are currently a smaller
Page | 2
3. firm, our CEO will play a much more hands-on role than that of one in a larger firm by
also making many of the lower-level decisions as well.
Chief Technology Officer - CTO - David Berry
David will be responsible for the management of our company’s research and
development as well as technological needs. As chief technology officer, David will
examine the short- and long-term technical needs of our company and utilize capital to
make investments designed to help our firm realize our vision through adhering to our
mission statement.
Chief Financial Officer - CFO - Colin Kraczkowsky
The chief financial officer is in charge of overseeing the financial activities of our
firm. Colin’s responsibilities will include financial planning and monitoring cash flow. We
will use this information in the analysis of our company's financial strengths and
weaknesses to create plans for improvement. As a small-size firm, Colin will serve as
both the accounting and finance departments and be responsible for ensuring that the
company's financial reports are accurate, completed on time, and follow GAAP and
other fiscal regulations.
_____________________________________________________________________
I c) Business Goals
Timeline Annual Revenue
Years 0 - 4 We will be in development phase with annual costs of
around $2.8 million. We will be funding this through a
combined long-term loan and venture capital seed funding.
Years 5 - 6 We will launch the product and begin marketing/sales
efforts. Costs of ramping up from development to
production is projected at $2 million which we will fund
through a short-term loan. Once production is in motion we
expect to begin generating a positive cash flows
Years 7 - 10 We will be engaged in extensive marketing and production
efforts costing around $17.7 million annually. We will be
offsetting this cost with a progressively scaleable sales
schedule. We hope to sell 50% of our inventory in year 6,
80% of our inventory in year 7, and 100% of our inventory
by year 8. Following this schedule projects $64 million in
annual sales and a growing profit by the end of fiscal year
8.
Page | 3
4. ______________________________________________________________
II. Product Concept
Diagram of a Basic Nannite:
On a more basic level a Nannite would consist of a main processor, a power
source, and programing to run its operations. The processor controls most of all
functions, from circuited connection to other hardware. Like a normal computer,
programing would run the hardware - the AI programing acts as a sort of operating
system for the Nannite in that it controls all program instructions used to manage
hardware in addition to allowing the Nannite to act on its own to a limited degree. the
sub processor and memory allow for multitasking among the use of various hardware
and software functionality.
Dissection of Substitute Treatment:
Page | 4
5. Chemotherapy is currently one of the most widely used cancer treatment
packages in our target market. The treatment is used to contain cancerous cells, slow
the cancer’s growth, and ultimately to cure the patient. These functions take form in a
number of methods to enter the body, treat the cancer, and portion out an appropriate
dosage. As a substitute to chemotherapy, Mednology seeks to integrate some of these
familiar sub-functions into our product offering as well as provide a treatment package
that surpasses the sometimes limited capabilities of current therapies.
Function Structure for Nanobot:
Pulling from from the capabilities of a simple nanobot and chemotherapy treatment, we
developed a function structure for our Nannite technology by removing leaf forms and
subfunctions.
In essence, all that’s needed for the ideal nanobot is, “[...] a transporting
mechanism, an internal processor and a fuel unit of some kind that enables it to
Page | 5
6. function.” (nanogloss.com). This function structure details the hardware that will be
connected to the internal processor, along with what software processes it will handle.
For treatments, nanobots will contain storage compartments for transporting
medicines that treat internal cancerous growths. A vat jet can dispense the medicine
directly onto infected areas, or a syringe can inject treatment directly into cancerous
cells. For radiation treatments, a radiation gun can be directed at infected cells. It will
hold its power source to avoid draining the nanobots’ power supplies. For analysis of
cells, culture samples can be taken and examined by the nanobot, with the information
sent to a physician through ID Culture Sampler Tool and driver.
For navigation, a wireless signal transmitter and receiver will allow physicians to
know the location of the nanobot, in addition to providing additional instruction for it to
follow. Ultrasound will enable the nanobot to use a CT scan of a patient’s body to
navigate the environment, and locate targeted areas.
As a failsafe, in the event a nanobot is damaged or presents a danger to a
patient, three special operations can be initiated to disable it. These lie within the
Bad-Bot Protocol software and the Emergency Failsafes. The Function Status Indicator
will let physician, and other nanobots in a procedure, know when a nanobot is to be
disposed of:
● Cannibalistic Protocol: In the event groups of nanobots are used in a
procedure, non-damaged and operative nanobots will deconstruct and
destroy the damaged nanobot so that it does not cause harm to the
patient.
● Self-Termination Protocol: If a procedure uses one nanobot, and that
nanobot is damaged and inoperable, an emergency self-termination
system can be used. Upon receiving the “kill-self” signal from a physician,
the damaged nanobot deconstructs itself through the use of enzymes,
dissolving into a harmless jelly mass that the body can remove easily via
its own processes. This mass gives off a unique identifier to confirm that a
nanobot self-terminated.
● Magnetically Triggered Termination: The nanobots will be susceptible to
strong magnets, causing a complete shutdown when exposed to their
pulls for a set duration, either directly or indirectly. This magnetic pulls
activates a mechanical switch that releases enzymes to deconstruct the
nanobot, similar to the self-termination protocol.
The nanobots’ AI and network of communication allow for them to work together
to accomplish surgical tasks. Because of their extremely small size, measuring about
six atoms across, (nanogloss.com), numbers sometimes play a major role in dealing
with ailments. A cancerous growth that’s only a mere centimeter across would be
Page | 6
7. thousands of times bigger than a single nanobot. Because of this, the nanobots can
connect to together through a series of Nanobot-to-Nanobot Cluster Connections in
order to adjust their size. The Nanobot Group Cluster Synchronization Protocol would
allow for a cluster of conjoined nanobots to combine their resources to act as one unite.
Lastly, the power source will be scaled to match the nano-size of the bots,
(Nanobatteries).
Product Offering:
Our Product: The Nannites Treatment Package
Sub Functions: Patch delivers nanobots, use properties of surface adhesion to achieve
mobility, 1 automatic failsafe, 1 manual failsafe, ultrasound navigation, wireless
communication, AI analyzes cell culture then physician verifies, AI guides coordination
but physician guides, specialized tools for rays and surgical equipment, search and
treatment pre-programmed and physician guidance, rechargeable battery
Pros: Both automatic and manual failsafes allow for greater control in the event of a
failure, AI working alongside physicians to analyze data and determine navigation and
treatment procedures allows for more efficient use of time. The use of surface adhesion
for movement will achieve greater accuracy and mobility. A rechargeable battery will
allow for higher outputs of energy than an engine.
Cons: The reliance on AI and wireless communication can allow for failures which will
be harder to control/recover from. The physician checking of the AI’s decisions will
waste time, but will guarantee the AI is making the correct decision when it comes to
navigation and treatment selection.
Page | 7
8. Having developed a comprehensive morphological matrix of the sub-functions
and realized forms of cancer-treating nanotechnology, we chose to pursue the Nannite
bundle because it is the most reliable package. This bundle can deliver a variety of
treatments and the physician-backed decision making will ensure quality performance.
After analyzing our potential product designs created through our team’s idea
generation conclave, we determined that the relatively high technical feasibility and
large commercialization potential makes pursuing Nannites a “pearl” product idea. We
decided to pursue a product design which will allow for the most reliable service. Our
product will provide reliability through a combination of manual and AI failsafes. The non
invasive delivery of our treatment ensures the patient experiences minimal discomfort
during the procedure.
___________________________________________________________________
III. Business Strategy
In this section, we dictate the forces which play a role in shaping the curative
technologies market. A brief analysis of the market shows that by being one of the first
to develop this technology we will be able to secure a segment. Once our product is
developed it will be challenging for new entrants to compete with us, and buyers will
have negligible bargaining power. All in all this market is very attractive, it has a large
revenue pool and a stable yet high growth rate for its size.
III a) Porter’s Five Forces “The Technology/Cancer Treatment Industry”:
Page | 8
9. Competitive Rivalry
Companies in the cancer treatment industry:
~Somi Pharmaceuticals - Provide anti cancer drugs
~Exponential Exports - Provides anti cancer medicine
~Nisheeta Lifesciences - Provides anti cancer medicines
~Balaji Pharma - Provide anti cancer medicine
~Kuber Surgical - Provides skin cancer drugs, ovarian cancer drugs
Companies in the nanotechnology industry:
~Ablynx - Engaged in the discovery and development of nanobodies to
treat a range of serious human diseases
~Carbon Nanotech Research Institute - Development of fullerenes and
carbon nanotubes which are applicable to next generation semiconductor,
fuel cells, drug remedies
~ImaRx Therapeutics - In the process of developing NanoInvasive
medicine which will provide the benefit to patients and society by lowering
costs, minimizing pain.
Threat of New Entry - LOW
The industry of nanotechnology in medicine is a new and upcoming field, there is
very limited amount of available research to use. If a company wants to enter this
Page | 9
10. industry they would need to invest heavily in research in order to develop their product.
Another barrier to entry is the need for highly specialized individuals who can develop a
working prototype. This industry would also require a high amount of capital investment
in order to efficiently manufacture the nano bots on a large scale.
Threat of Substitution - MEDIUM
There are other options for treating cancer which currently exist. Most of these
other option will be expensive but not as much as a new nano treatment. Many current
substitutes can be painful and/or time consuming when compared to nano treatments.
The downside of switching treatments mid process is there will be costs one can not
recover. Patients are unlikely to substitute because other treatment options may have
more severe side effects.
Buyer Power - LOW
Patients seeking cancer treatment will have a very high demand to be treated.
Buyers seeking treatment will make their selection based on comfort, cost, timeliness
and most importantly reliability. Buyer influence over this market is low because there
are few substitutes and demand for service is extremely high.
Supplier Power - MEDIUM
Suppliers for nanotechnology will have more power than suppliers of the nano
medicine industry. This is because research, patents and specialists in the field of
nanotechnology are newer as well as more expensive and timely to acquire. When
purchasing highly specialized nano bot parts there are not many options so these
suppliers will have a lot of power over the price and availability of the parts.
Suppliers for cancer treatments will have lower power, this is because there are
many different procedures to treat cancer. There are also many companies
manufacturing the supplies, both local and recently a worldwide market. This market
forces companies to offer lower competitive prices. The threat from suppliers in the field
of cancer treatment is dampened because its a larger industry which has been around
for longer.
III b) Porter Model Analysis:
Nannites are at the frontier of the new age of medicine, what we have done at
Mednology is create a product our world will appreciate for decades to come. We are
offering a reliable defense to one of the most horrid diseases of all time. There are few
substitutes that can compare to the quality treatment our product offers. Our clients
want nothing besides the most reliable service for their life threatening condition. The
high demand for our product will provide Mednology with a strong market presence.
With a solid stance in the market our threat from new entry is low, accompanied with a
Page | 10
11. strong legal presence our position in this market is secured for years to come. Our
product will quickly grow to dominate the cancer treatment market. After a few years we
will be able to manufacture our own Nannites. This will strengthen Mednology by
allowing us to sever much of our reliance on suppliers and increase the difficulty for new
entrant to compete with us in the market. All these factors combine together to outline
the attractiveness of entering this market now.
___________________________________________________________________
IV. Market Strategy
In summary, our market strategy is to advertise our product to hospitals and
private practices through showcasing and word of mouth. We decided to target this
segment of the market because it has a large revenue pool with a stable growth rate.
We discovered this by generating a revenue map that indicated which market segments
were both highly profitable and allowed room for innovation signaling continued growth
of the industry. We then drafted a marketing mix to define the product, price, place, and
promotion of the Nannites treatment technology as this is crucial to determine our
product’s offering. Through this, we realized that Mednology’s target customers would
be those with melanoma cancer seeking a minimally invasive treatment procedure.
Given the circumstances of our consumer and the expenses associated with our
product, Nannites were priced at a slight premium of $100,000 per session. We hope to
bring that price down in the future through increased bargaining power with our
suppliers and decreasing costs of goods sold. We will be perpetuating our focussed
strategy by promoting Nannites technology through channels representing particular
customers. We hope marketing in this way will get our product into specialized medical
facilities who can most effectively and efficiently distribute the Nannites treatment
solution to our target customers.
IV a) Revenue Map:
Page | 11
12. A revenue mapping of the medical device industry. A medical device is an apparatus
that is used to diagnose, prevent, or treat medical conditions not achieved through
chemical action within or on the body differentiating them from drugs. The products
offered in this industry are devices for performing medical tests, man-made medical
implants manufactured to replace a missing biological structure or enhance an existing
structure (i.e. pins, rods, screws, and plates), prosthetic body part replacements,
equipment to perform a diagnosis, technology for curing a medical condition, and
general purpose medical devices (i.e. tongue depressors and medical thermometers).
From mapping the market landscape of the medical device industry, Mednology has
identified a large, growing target market within curative technology for public hospitals
with extreme profit potential.
IV b) Marketing Mix:
Product: What the customers in the segment want from the product?
Our product is Nannites treatment, a nanotechnology solution to melanoma
cancer. Our technology is a minimally invasive medical option that serves to
diagnose, prevent, treat, and cure melanoma cancer.
Page | 12
13. Price: What are the customers willing to pay for the product?
Current melanoma cancer treatment can average a cost of around $90,000 for
an 8 week cycle. That’s around $11,250 per session. Since we are a
differentiated product with relatively large-scale development costs we are
looking to price the Nannites treatment at a slight premium. At a price of
$100,000 per session, we could successfully achieve our business goal of
obtaining ⅕ of the public hospital market interested in curative technology after
performing 60,000 sessions. Using 8 weeks as a base for a full round of
melanoma treatment, we would need to cycle 7,500 patients through the
Nannites treatment. It s estimated that around 80,000 cases of melanoma will be
diagnosed in the United States annually meaning we need just 9.375% of that
market to achieve our goal at this price point.
Place: What are the distribution channels for the product?
Mednology will offer Nannites through trained hospitals and cancer treatment
practices. In the future, Mednology may investigate expanding into specialized
Mednology centers.
Promotion
Mednology will establish a market presence and extend our brand name through
two channels: one targeting hospitals/private practices and one targeting
individuals. Since hospitals and private practices will ultimately be the ones using
Nannites technology, we will promote the product at medical conventions and
trade-shows to showcase the curative qualities of our nanotechnology. To target
individuals to get them interested in our product we will give participating
hospitals and practices brochures to keep at their offices. We also hope to
establish a positive word-of-mouth so friends and families of loved ones with
melanoma are aware of Nannites as an option.
____________________________________________________________________
V. Product Strategy
Customer’s Need: a cure for melanoma cancer
■ Solution – product technology to perform cancer treatment
○ A five year plan is directed towards rapid development of both the start-up
and the Nannites. It focuses on financial stability, resource accumulation,
and product development and refinement, in that order. While things will
move fast, development will not be rushed. Quality is of top priority in
meeting product expectations.
Page | 13
14. Year 1:
■ Funding Generation: Because cost can be as much as $1 billion
dollars, this will be the initial funding goal. In getting the company
started, it will begin once funding reaches 30% of the initial funding
goal - $3 million dollars. This will allow for the first year to be fully
funded with a little extra funding for emergencies.
■ Resources: With enough funds for a year, a lab facility will be
rented out. Lab technicians and physicians will be hired to work on
prototype construction. Lab equipment and materials will be
purchased, in addition to maintenance.
● lab facilities
● lab equipment
● storage space
● lab technicians
● hardware engineers
● software engineers
● medical physicians
● raw materials - chemicals, molecular materials
Year 2:
■ Prototyping - Nanobot: Lab technicians and physicians will work to
realize the first stages of a physical product, a nanobot. Once a
working, physical prototype is made it will be programed and
prepped for testing.
Year 3:
■ Testing – Cancer Treatment: The prototype nanobot will be used in
testing in identifying, and eliminating cancer cells by various
treatment methods – from physical removal, to injection, to
radiation.
■ First Results and Conclusion: The overall success and
considerations of prototyping and testing will be reviewed.
Promising results will be used to generate more funding from the
NIH and the NSF, along with crowdfunding.
Year 4:
■ Further Prototyping and Testing (Cycle and Iron Out): Refinement
of the technology will be done to improve treatments. Flaws and
bugs are to be ironed out through a cycle of prototyping, testing,
and result phases. All good findings will be used for further funding.
Page | 14
15. ■ Self-Copy: This simply tests a design of nanotechnology for
duplicability. Nanobots will be programed and capable of
constructing nanobots – copying themselves.
Year 5:
■ Finalizing Field Test: Once the nanobot is deemed to be suitable for
medical use, three final tests are performed on a dummy to
simulate a real treatment. The nanobot design and treatment
method has to pass all three tests to be fully deemed ready for
medical use. Nanobot designs and treatments that fail will go back
to the Cycling and Iron Out Phase.
■ Final Confirmation: The nanobot product and cancer treatment
methods used are all ready for medical use. This will lead to the
product release.
_____________________________________________________________________
VI. Financial Analysis
Below we have produced some drafts of our financial statements from
development phase to the year where we predict we will have reached a positive net
present value making the investment lucrative. Mednology is currently seeking $10
million in seed money to help finance our development costs before we ramp up to our
sales phase in which the company can begin supporting itself. Within 2 years after
launch, we expect our sales to scale towards our full production schedule. By 2021 we
project sales to match production and generating annual revenue of $40,000,000 and a
net profit of $11,145,000.
VI a) Cash Flow Statements:
These drafted statements of cash flows provide estimated aggregate data
regarding all cash outflows that will pay for our business activities between our natal day
in Year One to the year we project our operations will produce a positive present cash
value in Year Eight. Also reflected are the cash inflows Mednology will be receiving from
our ongoing operations and external investment sources. As shown, we intend to
finance our development costs within the first five years through external investors
before we ramp up to marketing, production, and sales to generate positive cash flows
and use our retained earnings to fund our ongoing marketing and production
schedules. We predict positive cash flows by the first quarter of year six and a positive
net present value two years after that at the beginning of year eight.
Page | 15
16. In Mednology’s natal years (Year 1 ~ Year 5), all our financial resources will be
utilized in developing the Nannites technology. We are looking at renting two labs: one
to research nanotechnology and another focused on cancer treatment. We expect our
development team to be around 35 strong consisting of engineers and specialists in
nanotechnology, cancer research. Along with equipment and supplies, we estimate our
development costs to total $2.6 million annually.
Page | 16
17. We project it will take about 5 years to develop a fully functional Nannite at which point
we will ramp up to begin marketing and sales efforts. We plan to spend $3 million on
advertising in the first year through TV segments, a web campaign, direct mail, and
search engine optimization. We intend to finance this with a single year loan so as to
avoid over saturating our venture capital investors. By Year 6, we intend to start
producing and distributing Nannite treatments and begin generating positive cash flows
of around $1.5 million per quarter.
Page | 17
18. * Note that Net Present Value is positive by the fourth quarter of Year 7 meaning that
we expect Nannites technology to be a sound investment within eight years of operation
VI b) Balance Sheets:
Our balance sheet segments give our investors an idea as to what the company
owns and owes, as well as the amount invested by our shareholders.
As seen in the figure above, Mednology expects to show positive worth of assets
and increasing stockholder’s equity which we will retain in the firm to continue growing
before paying out as dividends.
VI c) Income Statements:
These drafted income statements disclose information about revenues and
expenses that are a direct result of the regular business operations.
If we began development today, we project profits nearing the amount of the
initial investment as soon as 2019 and then tripling within two years. By 2021 we expect
a profit margin of 28%, an increase of 75% from 2019. Our excellent return on assets
alludes to our effective means at converting investment into income and further
illuminates nanotechnology’s cost savings potential.
Page | 18
19. VI d) Key Financial Ratios:
* If development began in
2014, we project a profit margin
of 28% by 2021.
Mednology’s Nannites treatment technology expects to be showing profits
nearing $5 million by our 8th year of operations. To make this happen we will need
around $15 million in funding. Our finance plan is three-tier including a combination of
debt and equity financing. At the beginning of our operations, we will be taking out a $2
million long term loan to help supplement our development costs. To support our
marketing ramp up costs and avoid over saturating our venture capital funding options,
Mednology will be withdrawing a $3 million short-term loan. That leaves $10 million we
are hoping to realize through venture capital seeding. Mednology is willing to distribute
40% of our shares in return for the $10 million investment. This dilution would give
Mednology a post-money valuation of $25 million and a pre-money valuation of $15
million. To achieve our goal of $1 per share, Mednology is preparing to generate 25
million shares and is willing to offer 10 million shares valued at $10 million (the value of
the investment) in return for a seed money investment.
In eight years, Mednology predicts a return on investment of three-fold. For an
initial venture capital investment of $10 million, Mednology is offering a unique
opportunity to disrupt the healthcare industry through the revolutionary new cancer
therapy technology: the Nannite treatment package.
Page | 19
20. VII. Appendix
VII a) Developing the Product Concept:
We started with an issue. We had utilized structure brainstorming to generate a
number of areas in the world today where we saw the need for improvement. Our list
ranged from transportation to health and fitness before we landed on the topic of
healthcare, in particular current treatments for cancerous cells. We wanted to develop a
new way to help those suffering from cancer and also integrate the budding field of
nanotechnology. Our list for necessary components to our product included:
1. Noninvasive surgical procedures to eliminate tissue damage and reduce
recovery time
2. A direct approach to removing cancer cells that don’t require the patient to be
exposed to large doses of radiation for long periods of time
3. Isolation of cancer cell in order to leave healthy cell unaltered and intact to
preserve the overall health of patients
4. Allow for a speedy treatment and recovery
5. Act as a one-time treatment, rather than an ongoing therapy
That is how the concept for a nano surgeon robot was formed and our company,
Mednology, was ultimately created. We felt “Mednology”, as a combination of both
medicine and technology, best represented who we were and where we were going as
dictated by our mission and vision statements. Our CTO, David Berry, came up with the
product name Nannite and we began drafting what would ultimately evolve into the
function structure of our first nano surgeon robot:
● Nano-sized robots (0.1 to 10 micrometers in size, less than 1/100th of a
millimeter)
● Capable of entering the human body in a noninvasive, or damaging, way
● Allow for visual inside the human body
● Can acquire culture samples from possible internal ailments for doctor analysis
● Is nonreactive, or invisible, to the human immune system as to not trigger
immune responses
● Capable of searching, locating, and identifying harmful pathogens and
substances inside the body
● Can inject substances directly into ailments for treatment
● Can physically remove and destroy ailments with precision through noninvasive
surgical procedures
After grounding our concept in an idea of what we wanted it to be able to
accomplish, we began looking at current technologies and cancer treatments to develop
ideas for additional sub-functions and potential new forms for our Nannite technology.
We then took these ideas and organized them into a morphological matrix to find the
best product bundle for our consumers.
Page | 20
23. Sub Functions: Injection, cell hitchhiking, 1 automatic failsafe, programmed ct map,
wireless feeds, ai analyzes cell cultures, ai achieves communication, high energy rays,
pre-programmed instructions, rechargeable battery.
Pros: The injection is not invasive and the automatic failsafes and AI will allow the
nanobots to finish treatment very quickly. Rechargeable battery will allow for longer and
more reliable power source.
Cons: Movement is controlled by blood pressure, lack of surgical tools on nanobots
prevents them from being able to offer all treatments. The lack of manual control by a
physician makes the risk of nanobots failure higher. Rechargeable battery is heavy and
space consuming
Bundle #2: (Green)
Sub Functions: Pill delivery, magnetic grappling, 1 manual failsafe, ultrasound
navigation, hardwire communication, manual analysis of cell culture, manual control of
nanobots, specialized surgical tools, search and treatment manual control, energy
generator uses organic material as fuel.
Pros: Manual control makes the nanobots more reliably controlled, the surgical tools
can target larger cancer groups. Engine using organic material will not need to return to
recharge battery as often and will weigh less than a battery.
Cons: Manual control requires more time, effort and is more bulky. The lack of
automatic AI will require more expertise on the physician's part. The engine is reliant on
a fuel source constantly around it, failure to find a fuel source will result in shutdown.
Bundle #3: (Blue)
Sub Functions: Patch delivers nanobots, use properties of surface adhesion to achieve
mobility, 1 automatic failsafe, 1 manual failsafe, ultrasound navigation, wireless
communication, AI analyzes cell culture then physician verifies, AI guides coordination
but physician guides, specialized tools for rays and surgical equipment, search and
treatment pre-programmed and physician guidance, rechargeable battery
Pros: Both automatic and manual failsafes allow for greater control in the event of a
failure, AI working alongside physicians to analyze data and determine navigation and
treatment procedures allows for more efficient use of time. The use of surface adhesion
for movement will achieve greater accuracy and mobility. A rechargeable battery will
allow for higher outputs of energy than an engine.
Cons: The reliance on AI and wireless communication can allow for failures which will
be harder to control/recover from. The physician checking of the AI’s decisions will
waste time, but will guarantee the AI is making the correct decision when it comes to
navigation and treatment selection.
We picked Bundle #3 because it is the most reliable package. This bundle can deliver a
variety of treatments and the physician backed decision making will ensure quality
performance.
Page | 23
24. VII b) Diagram of Fully Functioning Nannite:
VII c) Breakdown of Financial Expenses :
Product Development
Page | 24
25. -Facilities Rental (Monday-Friday):
Nanotechnology research lab $110,000 /annually
Cancer treatment research lab $110,000 /annually
Small Storage Facility $80,000 /annually estimation
-Salaries:
Nanotechnology researchers(10) $60,000 /annually=$600,000
Cancer researchers(10) $50,000 /annually=$500,000
Prototype engineers(15) $70,000 /annually=$1,050,000
-Research supplies: $40,000 /annually
-Research equipment:
Equipment rental cos(2) $100,000 /annually
Equipment purchase cost(2) $25,000 /fixed cost
Equipment maintenance cost(2) $30,000 /annually
-Prototyping: $2,645,000 / annual development
Product Manufacturing
-Cost to manufacture:
Material cost $5,000 /annually
Capital cost $100,000 /annually
Initial Cost per Nanite $0.01/per unit if not less **
Initial Cost per Nanite Controler $8.00/per unit
estimation
-Distribution cost: $406,850 /annually
** Nanites are nano-sized robots, being the size of six atoms. A little investment in
building material will allow for an enormous production of nanites because of their size -
a drop of water contains about 5 sextillion atoms, (that’s
5,000,000,000,000,000,000,000), for size perspective. Logically speaking, a drop of
liquid silicon solution could contribute to building billions of nanites, while a gallon can
possibly fuel the creation of trillions on top of trillions of nanites. Additionally, because it
is more efficient to have nanites build other nanites, large-scale production would be
entirely under the founding start-up’s power with no additional cost aside from material.
Marketing and Sales
-Marketers salary(3): $90,000 /annually
Page | 25
26. -Advertising costs:
National TV Advertising:
Setup cost: $100,000
Cost of media: $50,000 / per 30 seconds
Search Engine Optimization:
Setup cost: $7000
Cost to continue: $6000 /annually
Web Content Marketing Campaign:
Setup cost: $9000
Direct Mail Advertising:
Setup cost: $2000
Cost of media: $2 /per address
Management and Support
-Managements salary(3): $70,000 /annually
-Legal costs:
Lawyers salary(1) $90,000 /annually
Patents(1) $7,000
Human Resources () $90,000 /annually
Page | 26
