THEORICAL AND RESEARCH MODEL
Startup & Smart – Startup
In today's landscape, there is a notable rise in entrepreneurial spirit, with an increasing number of individuals opting to launch their own startups instead of pursuing traditional employment This shift reflects a growing desire for personal fulfillment and independence in business ventures.
According to Ries (2011), Startup is a human institution designed to create new products and services under conditions of extreme uncertainty
Or Dave McClure, an entrepreneur and angel investor who founded the business accelerator 500 Startups, said:
“A startup is a company that is confused about what its product is, who its customers are and how to make money”
A startup refers to a business venture focused on developing products or services that address modern challenges or fulfill current market needs, often characterized by uncertainty in its solutions and the unpredictability of success.
1.1.2 Overview of Smart – Startup business
Smart – Startup is developing a comprehensive Cloud computing solution for Preventive Medicine that aims to digitize the work of community health workers This innovative platform will feature a user-friendly portal for families to monitor their immunization schedules, access health education programs, and apply for early disease diagnosis through screening and registry services, complete with SMS notifications The system will be available as both a web and mobile application, ensuring users can access it anytime and anywhere To enhance trust, the SMS service will utilize Bulk SMS with a branded sender name (e.g., YTDP Ha Noi) instead of displaying a phone number.
Mission statement: taking care of people is at the heart of everything we do Caring counts
Company goal and objectives: number one technology company in providing medicine services to all the people by combining expert – creation – technology
The Preventive Medicine Information Systems (SMIS) issues an ID number for newborns within 24 hours of birth, allowing them to receive their first dose of Hepatitis B vaccine without waiting for a birth registration certificate This system ensures that ID holders are informed about healthcare programs and early disease diagnosis When implemented nationwide, SMIS creates a comprehensive national database for immunization and vaccination, enabling the delivery of value-added services (VAS) in preventive medicine, starting with Immunization Notification SMS.
SMIS are secure, web-based databases that utilize identification systems to track all immunization doses and preventive medical procedures administered by participating providers to individuals within a specific geographic region.
In the long run, this product aims to develop into a comprehensive ecosystem for preventive medicine, encompassing not only immunization but also areas such as communicable and non-communicable diseases, nutrition, school health, and early disease diagnosis Central to this ecosystem is the concept of a unique ID, which integrates various management systems to deliver value-added services like immunization reminders, notification SMS, and alerts for communicable diseases, ultimately enhancing public health awareness and accessibility.
1.1.3 Overview about Data Warehouse System in Smart – Startup
Data warehousing involves the systematic collection and storage of subject-oriented, integrated, time-variant, and nonvolatile data in a managed database, facilitating informed decision-making By reconciling data from various corporate operations into a central repository, known as a data warehouse, analysts can extract valuable insights that enhance decision-making processes.
Data can be aggregated, parsed, and manipulated to generate valuable insights In the realm of data warehouse design, two prominent figures are William Inmon and Ralph Kimball, who advocate differing methodologies Inmon's approach is characterized by a top-down design, while Kimball favors a bottom-up design Many data warehousing practitioners align themselves with one of these two methodologies.
A Data Warehouse is a subject-oriented, integrated, time-variant, non- volatile collection of data used in support of decision making processes
―Subject Oriented‖ means that a data warehouse focuses on the high-level entities of the business and the data are organized according to subject
"Integrated" refers to the consistent storage of data across various formats, naming conventions, variable measurements, encoding structures, physical attributes, and domain constraints For instance, while an organization might utilize multiple coding schemes for ethnicity, a data warehouse standardizes this by employing a single coding scheme.
Time-variant data warehouses offer extensive access to detailed information over extended periods, associating data with specific time points such as months, quarters, or years These warehouses maintain non-volatile data, meaning that once information is entered, it remains unchanged and is rarely modified The data stored in a warehouse is read-only, with updates occurring periodically through incremental or full refreshes, ensuring the integrity and stability of the information.
A data warehouse serves as the central repository that integrates all data marts within an enterprise, with information organized in a dimensional model According to Kimball, data warehousing comprises various data marts, each tailored to meet specific business objectives for different departments The data warehouse acts as a conformed dimension for these data marts, collectively representing the organization's business processes through star schemas or a family of star schemas of varying granularity.
Some of the Data Warehouse characteristics to include:
• It allows for integration of various application systems
• It supports information processing by consolidating historical data
• Data is stored in a format that is structured for querying and analysis
• Data is summarized DWs usually do not keep as much detail as transaction-oriented systems
1.1.3.2 The Data Warehouse Data Model
The data modeling process consists of three levels: High-level modeling, known as the Entity Relationship Diagram (ERD), which outlines entities, attributes, and relationships; Mid-level modeling, referred to as the data item set, which organizes data by department; and Low-level modeling, or the physical model, which focuses on optimizing performance.
Once the high-level data model is established, the next step involves creating the midlevel model This process entails developing a midlevel model for each major subject area or entity identified in the high-level data model, ensuring that each area is thoroughly represented and defined in its own distinct midlevel model.
The physical data model is developed by enhancing the midlevel data model to incorporate keys and physical attributes, resulting in a structure that resembles a series of relational tables.
A Data Warehouse (DW) can be distinguished from a typical archive database by several key characteristics Firstly, data in a DW is conformed, ensuring that definitions such as "customer" or "revenue" maintain consistency across all sources Secondly, it provides a historical perspective, offering insights into the business at specific points in time Additionally, data is shared, allowing for efficient querying and access, which enhances its value Lastly, a DW is comprehensive, capable of capturing and consolidating data from multiple systems, thus providing a holistic view of the organization.
Business Model Canvas
The term ‗business model‘ appeared already in the academic article of Bellman (1957), followed by yet another academic article by Jones in 1960 However, it did not achieve any significant
Osterwalder, A., Pigneur, Y and Tucci, C.L (2005) in their book ―Clarifying Business Models: Origins, Present, and Future of the Concept‖, define the business model as follows:
―A business model is a conceptual tool that contains a set of elements and their relationships and allows expressing the business logic of a specific firm
A company's value proposition outlines the benefits it provides to specific customer segments, while its organizational structure and partner networks facilitate the creation, marketing, and delivery of this value By fostering strong relationships and capitalizing on these connections, the firm aims to generate profitable and sustainable revenue streams.
A business model serves as a simplified framework that illustrates the operational mechanics of a company It encompasses various elements that define different aspects of the business and elucidates their interconnections, effectively conveying the firm's business logic By utilizing the business model concept, one can clarify the value proposition offered to specific customers, identify the necessary resources, activities, and partnerships, and understand how the value provided to customers is captured and translated into revenue for the company.
According to Osterwalder et al (2005), business models can be classified in three different categories according to how they are described by different authors: 1) Overarching business model concepts
Overarching concepts define what a business model is and its essential components, serving as abstract representations of real-world businesses This includes both definitions of the business model concept and meta-models that outline its key elements The upcoming discussion will focus on various frameworks that fall under the category of meta-models.
Taxonomies categorize various types or meta-model types, highlighting their common characteristics While types focus on basic categorization, meta-model types encompass a range of models These taxonomies can be tailored to specific industries rather than applying broadly to all businesses At the instance level, they include tangible real-world business models alongside their conceptual representations and descriptions, often utilized in case-based studies to analyze companies, a practice that gained prominence until the late 1990s.
1.2.2 Background of Business Model Canvas
The Business Model Canvas, introduced by Osterwalder and Pigneur in their book "Business Model Generation," serves as a vital tool for business model innovation It enables organizations to understand, design, and implement new or improved business models, illustrating the rationale behind how they create, deliver, and capture value through its nine essential building blocks.
The elements have their theoretical underpinnings in Osterwalder‘s
In his 2004 doctorate thesis, the author synthesizes prior research on business models, ensuring that each element in the framework is supported by at least two previous authors The business model canvas tool builds on Osterwalder's earlier contributions, enhancing usability and modifying some element names while preserving the original framework's core concept.
Source: Osterwalder and Pigneur - 2010 “Business Model
The nine elements of the business model canvas framework belong into four pillars – product, customer interface, infrastructure management and financial aspects
Table 1.1: Business model canvas elements and descriptions
Forms an overall view of a company's bundle of products and services that are of value to the customer
Segments of customers a company wants to offer value to
Means of getting in touch with the customer
Describes the link a company establishes between itself and the customer
Describes the arrangement of assets required to create value to the customer, being the inputs in value- creation process and sources of capabilities
6 Key Activities Actions a company performs to do business and achieve its goals
Voluntarily initiated cooperative agreements for outsourcing activities and acquiring resources outside the enterprise
Describes how a company makes money through a variety of revenue flows resulting from value propositions successfully offered to customers
The representation in money of all the means employed in the business model elements
(Adapted from Osterwalder & Pigneur, 2010; Osterwalder, 2004)
The product pillar fundamentally addresses the question of "what" in a business model, outlining the specific industry the company operates in and defining its products and value propositions This pillar is crucial for understanding the company's overall business model innovations, particularly in the realm of product and service innovations.
Once an organization identifies its target customer segment, it must focus on meeting their needs and creating value through tailored value propositions This involves determining which products and services to offer, with value being both quantitative and qualitative Key elements that contribute to this value include price, design, performance, and customization By offering lower prices, organizations can attract new customer segments that competitors may overlook Additionally, effective design can differentiate a product in a crowded market, while performance enhancements and customization allow for greater appeal to diverse customer preferences Ultimately, these strategies enable organizations to effectively meet the specific needs of their chosen segment and enhance overall customer satisfaction.
The customer interface pillar focuses on identifying the target audience within a business model, detailing how a company delivers its products and services, and fosters strong relationships with its customers It outlines the strategies for market engagement, customer outreach, and interaction, emphasizing the importance of effective communication and connection in achieving business success.
The foundation of any business model lies in identifying the target market and customer segments to serve A customer segment comprises individuals with shared needs, behaviors, or characteristics Organizations can cater to multiple customer segments based on their diverse product or service offerings For instance, a mass market approach targets a broad audience, while a niche market strategy focuses on a smaller group seeking specialized and tailored products or services.
The organization determines the methods through which customers can purchase its products and services, as well as the delivery options available These channels not only facilitate transactions but also enhance customer awareness and allow them to assess the organization's value proposition Additionally, the organization can utilize its own channels, such as a dedicated sales force or proprietary stores, to further engage with customers.
Organizations without their own distribution channels can leverage partner channels, such as partner stores or wholesalers While utilizing proprietary channels can yield higher profit margins, it often incurs greater costs In contrast, partner channels may offer lower margins but enable organizations to expand their customer reach effectively.
Establishing strong customer relationships is crucial for organizations, as different customer segments require varying types of interactions To effectively meet these diverse needs, businesses often implement a mix of relationship strategies One approach is personal assistance, which allows customers to communicate directly with employees for support In contrast, self-service empowers customers by providing them with the necessary tools and software to assist themselves Balancing these relationship types is essential for customer satisfaction and loyalty.
The infrastructure management pillar focuses on the "how" of a business model, detailing how a company generates value It emphasizes the efficient handling of infrastructural and logistical challenges, outlining the partnerships involved and the type of network enterprise utilized.
The article outlines the essential abilities a company must possess to deliver its value proposition and sustain customer engagement It identifies the necessary capabilities and resources within the business model, detailing the roles of individuals responsible for each activity and their interconnections.
REASEARCH METHODOLOGY
Desk Review (secondary data)
The study utilized secondary data to explore the Business Model Canvas approach at Smart Startup Company and to outline the internal development team's roles and responsibilities This data was gathered from a range of sources, including literature, articles, and news publications, as well as existing research from magazines, books, and other publications, both official and unofficial The findings from this secondary data collection are detailed in Chapter 3.
Primary data
Primary data, collected through interviews, group discussions, and specialized surveys, is essential for data collection, especially when secondary data is either unavailable or unreliable While primary data collection can be more costly than utilizing secondary sources, it provides crucial insights Secondary data, on the other hand, is often used for purposes other than addressing specific research problems In this thesis, both primary and secondary data collection methods will be employed to analyze the market situation and assess the potential demand for data software in preventive healthcare services This approach aims to validate existing secondary data regarding the Business Model Canvas and the establishment of internal systems and processes, while also gathering new insights about the internal development team's needs The findings from the primary data collection will be presented in Chapter 3.
To gather primary data, qualitative interviews were conducted with selected participants, as this method is effective for understanding the attitudes and opinions of research subjects This approach is particularly relevant in this study, which aims to gain insights into the needs of the internal development team.
All interviews were designed as semi-structured Semi-structured means that a list of themes and questions to be covered works as a basis for the interview, including a scope for changes
To ensure effective interviews, an interview guide was developed, featuring a list of themes and questions that underwent pilot testing in a questionnaire The questionnaire primarily focused on interviewees' perspectives regarding the importance of preventive medicine services, their capacity to utilize these services within public health frameworks, the role of advanced technology, and their willingness to collaborate with partners in preventive medicine Detailed information can be found in Appendix B.
All interviews were recorded using the Voice Memo app on an iPhone, tailored to the interview location, and subsequently transcribed Details on the interview process for each session are provided in Table 2.1.
The study involved 30 interviewees from various sectors related to preventive medicine, including potential clients of service providers, medical authorities, and insurance advisors who cater to clients utilizing preventive health services The insights gathered may lead to a partnership between Smart Startup and preventive health insurance organizations Data analysis was conducted using Microsoft Excel 2010.
Preventive healthcare workers Workplace and private call Vietnamese Parents with children under 2 years old
Coffee shop or Skype Vietnamese
Pregnant women Coffee shop, workplace or
Advertising and Insurance companies‘ marketing staff
Expert Interview
To enhance the robustness of my field study findings, I interviewed Associate Professor Dr Tran Dac Phu, a leading expert in preventive medicine and director of the Preventive Medicine Department During our discussion, he expressed his interest in a Shared Data Warehouse System for preventive medicine, prompting me to compare his insights with my own research experiences Additionally, Dr Tran provided valuable information on the characteristics of preventive medicine in Vietnam, as well as the current health status of the Vietnamese population, which is detailed in Chapter 3.
Focus Group
To explore the relationship between the founders' initial vision and respondent feedback, a focus group was organized using a flexible interview guide This flexibility enhanced group dynamics, allowing participants to provide more detailed and insightful responses An iPhone was employed to record the session, enabling the interview supervisor to focus entirely on participant interactions and responses, while deferring analysis to a later stage.
The respondents were informed about the interview theme in advance, allowing them to prepare initial thoughts and guide the discussion The session began with a brief overview of the interview's purpose and a notification that it would be recorded Following this, open-ended questions were posed to explore the respondents' perspectives on the necessity of preventive medicine services and the demand for a system that delivers information on immunization and health education.
The next phrase of the interview introduced my service, and was aiming to figure out if it satisfy the need of the respondents previously had been listed
The final segment of the interview focused on Smart Startup and its array of services, where the participants shared their aspirations regarding software display, target customers, various use cases, distribution channels, and pricing strategies.
Location and time of study
Location: Vietnamese preventive medicine market
Period of study: Conduct research from 2014 to 2017.
REALITIES OF SMART- STARTUP BUSINESS IN
Preventive Medicine Industry in Vietnam
3.1.1 Current situation of preventive medicine industry in Vietnam
Prophylactic medicine, also known as preventive medicine, focuses on implementing strategies to promote health and reduce the likelihood of disease occurrence This field is dedicated to conducting research, monitoring health issues, and identifying the health needs of individuals By planning, managing, and evaluating health services, preventive medicine aims to control disease progression and enhance overall well-being.
In recent years, Vietnam's preventive medicine sector has seen significant growth, greatly enhancing the health indicators of its population Despite these advancements, the industry continues to face numerous challenges that necessitate collaboration among various ministries, sectors, local administrations, and the community.
Today's healthcare faces significant challenges, particularly the persistent disparities in basic health indicators between urban and rural areas, as well as among different regions and demographic groups While malnutrition rates among underweight children have significantly decreased, stunting remains prevalent, and alarming increases in obesity rates among children under five have been observed Additionally, the burden of communicable diseases, such as malaria and dengue fever, continues to be high and difficult to manage, compounded by the emergence of zoonotic diseases like H5N6 and Ebola The rising incidence of non-communicable diseases not only imposes a heavy economic burden on affected individuals and families but also strains the healthcare system and society as a whole, affecting both urban and rural populations, including those in economically disadvantaged areas.
Vietnam faces numerous health risk factors, including demographic issues such as population growth, aging, and gender imbalance, as well as socio-economic challenges like labor, income disparity, poverty, and education Additionally, environmental concerns such as climate change, pollution, and inadequate sanitation contribute to health risks Behavioral factors, including smoking, excessive alcohol consumption, poor diet, and low physical activity, further exacerbate the situation.
In light of the evolving dual burden of infectious and non-communicable diseases, health systems must adapt their organizational structures and functions to enhance service delivery Preventive medicine plays a crucial role in addressing both types of diseases by mitigating risk factors associated with non-communicable diseases while effectively managing infectious diseases It is essential to prioritize and implement a preventive approach in health program planning and investment The national strategy for preventive medicine, approved by the Prime Minister on November 9, 2006, emphasizes the importance of active prevention and risk factor reduction, underscoring that preventive healthcare is a collective responsibility involving governments, ministries, organizations, and the community.
Preventive medicine focuses on disease prevention through methods that address environmental factors, genetics, pathogens, lifestyle, and behavior Its primary aim is to protect, strengthen, and maintain health while preventing disease, disability, and death Prevention activities are categorized into four levels: the first level involves eliminating risk factors, such as banning tobacco; primary prevention includes health education and vaccinations to limit exposure to risks; secondary prevention employs diagnostic methods for early detection of diseases, like routine blood pressure checks and cervical cancer screenings; third-degree prevention focuses on effective treatment and rehabilitation to minimize disability and mortality; and fourth-degree prevention seeks to reduce unnecessary medical interventions The effectiveness of these preventive measures is evident in their ability to enhance health, improve quality of life, and lower healthcare costs.
Vaccination has dramatically decreased both the incidence and mortality rates of various infections, leading to substantial savings in treatment costs and reducing the financial burden on parents and caregivers who might otherwise miss work due to caring for sick children Notably, the expense associated with treating these infections is five times greater than the cost of administering vaccinations.
To effectively prevent disease, it is essential to implement integrated interventions targeting various risk factors and health conditions while promoting lifestyle changes within the community This requires collaboration among interdisciplinary agencies, organizations, unions, and both public and private sectors Key strategies include conducting epidemiological surveillance to monitor risk factors and morbidity, which aids in prioritizing and assessing intervention effectiveness Additionally, it is vital to propose policies that foster supportive environments for behavior change and enhance the health system's capacity to improve access to preventive and healthcare services Establishing programs that increase accessibility to resources, strengthening grassroots health networks, and managing both infectious and non-communicable diseases through primary and aged care are crucial for sustaining community-based prevention and disease management efforts.
Primary health care is crucial for ensuring accessible and scientifically validated health services for all community members, emphasizing active participation The four key principles guiding primary care include political commitment, community involvement, interdisciplinary collaboration, and appropriate technology use Over the past 40 years, Vietnam has focused on strengthening ten essential components of primary health care, such as health education, nutrition, clean water, maternal health, family planning, expanded vaccination, local pandemic prevention, injury treatment, essential medicine, and grassroots health network development These strategies aim to prevent both infectious and non-communicable diseases, enhance early detection and treatment, reduce health system burdens, and ultimately improve quality of life and longevity for the population.
3.1.2 Vietnamese people health status and the disease pattern
In recent years, overall public health has seen significant improvements, yet certain diseases continue to exhibit high rates of mobility and mortality despite a general reduction in mobility frequency.
Vaccines play a crucial role in preventing and controlling diseases like diphtheria, whooping cough, and measles Despite these advancements, certain diseases, including encephalitis and hepatitis, continue to pose significant risks due to their high rates of mobility and mortality.
Historically significant diseases like cholera, typhoid, and plague, known for their high transmission rates and epidemic potential, have seen a dramatic decline in incidence, leading to the absence of recent outbreaks associated with these illnesses.
In recent years, our country has faced significant health challenges from infectious diseases like SARS and avian influenza caused by the H5N1 strain Diseases previously categorized as social illnesses, such as tuberculosis and malaria, continue to result in high morbidity rates Despite extensive efforts to combat these diseases, the complexity of their spread, particularly in the case of tuberculosis and HIV-tuberculosis, has led to persistent mobility and mortality issues.
Over the past five years, the incidence of tuberculosis (TB) has shown a concerning upward trend, with new cases ranging from 50,000 to 60,000 each year In 2018, Vietnam ranked 13th among the 22 countries with the highest TB burden globally, accounting for 11% of all cases in the Western Pacific Region.
- Hypertension: The annual data of the national health survey in 2017 shows that:
Above 16 years old: 15.1% for male and 13.5% for female
Over 65 years old: over 50% people have the signs and symptoms of hypertension
Oncology diseases account for 1.86% of hospital mobility and 3.54% of mortality rates, based on 2017 statistics These figures reflect only hospital data and do not include broader community survey results, indicating a potentially higher impact of these diseases on public health.
Build Canvas Model for SMART STARTUP
3.2.1.1 Immunization and preventive medicine service providers
As of February 26, 2014, Joint Circular No 09/2014 issued by the Ministry of Health and the Ministry of Finance reports that Vietnam has a total of 12,403 governmental preventive medicine service providers.
Smart‘s target customers are immunization and preventive health providers to use SMIS to manage all their job from planning, scheduled vaccines and vaccination implementation, statistical reports
Vietnam has over 11,000 Community Health Centers (CHCs) participating in the Expanded Immunization Program (EPI) and approximately 2,000 non-EPI centers Our objective is to establish a presence in 17 urban provinces, targeting grade 1 centers, to capture 20% of the market share, which translates to 2,200 CHCs and 100 non-EPI immunization providers.
SMART STARTUP targets a diverse range of customers, including EPI System managers, healthcare center staff, non-EPI immunization providers, as well as advertising and insurance companies These entities leverage the preventive medicine database as a valuable resource to enhance and broaden their services and activities.
3.2.1.2 Parents of babies under 2 years old and pregnant women
In Vietnam, there are approximately 3 million parents with babies under 2 years old, including 1.5 million newborns each year, alongside 1.6 million pregnant women Our goal is to achieve a 10% registration rate among parents, translating to 300,000 subscriptions, and a 5% registration rate among pregnant women, equating to 80,000 subscriptions Targeting urban residents aged 20-40 with a monthly income exceeding 5,000,000 VND, who own at least one feature phone or smartphone, we offer an annual SMS service fee starting at around 50,000 VND (approximately 4,200 VND/month) for parents and 10,000 VND for pregnant women over a nine-month period.
In the long term, customers who engage in immunization will emerge as a key target segment for various fields of preventive medicine, including communicable diseases (CDs), non-communicable diseases (NCDs), nutrition, school health, early disease diagnosis, and health education.
SMART STARTUP will conduct a comprehensive analysis of market and medicine processes to swiftly develop a minimum viable product that meets end-user needs, followed by a pilot program within three months to enhance quality and user interface Throughout this process, we will involve end-users alongside experts in product development We aim to engage stakeholders such as the Ministry of Health's General Department of Preventive Medicine (GDPM), the National Expanded Immunization Program (NEPI), and immunization providers in high-migration cities like Hanoi and Ho Chi Minh City to create a user-friendly product Additionally, we will secure sufficient personnel and financial resources for broad deployment, primarily through fundraising from corporations and NGOs, including ADB, WHO, CHAI (Bill Gates' fund), PATH, and technology suppliers like Facebook and Vietnam Telcos.
3.2.3 Value prosition: o SMIS combine immunization information from different sources into a single record bases on a single individual ID number Every people are no longer have to worry about losing immunization book/tag, moving between provinces with different management system and take many types of vaccine trade name o SMIS remind families when an immunization is due or has been missed through many channels such as email, SMS, direct channel,… o SMIS are capable of exchanging immunization information with immunization medicine providers Data exchange between SMIS and other information systems helps ensure timely immunizations, consolidation of records, and allows immunization providers to work more efficiently o By connecting with MOH and all immunization providers to standardize all technical problems and officially upload all immunization data, communicable diseases (CDs), non – communicable diseases (NCDs), health education, early diagnosis of diseases, communicable alert data,… into the SMIS, SMART STARTUP will provide an affordable service to whom want to receive medicine SMS from medicine stations that no other competitor can replace o The value proposition of SMART STARTUP is that with one ID management to improve full immunization coverage and other value added preventive medicine services o SMART STARTUP have a full process management, boost administrative reform to reduce the Reporting burden to save operation cost, generate new revenue from immunization and preventive medicine services to help health center worker
To enhance trust and accessibility, we will integrate the SMIS/Portal as a subdomain of the official Medicine Stations website, selecting a memorable web address or acronym In the deployment of SMIS, we aim to engage provincial and district preventive medicine centers as educators and key supporters for Community Health Centers (CHCs) Additionally, our SMS services will be offered in collaboration with CHCs and non-EPI centers on a fee-for-service basis, ensuring a comprehensive approach to healthcare communication.
Year Year 1 Year 2 Year 3 Year 4 Year 5
Revenue utility for mobile subscribers
Number of children born each year 1,600,000 children
Table 3 2: Revenue utility for mobile subscribers Year 1 Year 2 Year 3 Year 4 Year 5
Online application revenue on mobile
The current population of Viet Nam 91,000,000 People
Number of children aged 0-4 7,280,000 People
The percentage of parents using the app 10%
Table 3.3: Online application revenue on mobile Year 1 Year 2 Year 3 Year 4 Year 5
Rental fee Number of units
National Institute of Hygiene and
Epidemiology; Institute of Hygiene and Epidemiology
Table 3.4: Software rental revenue Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Total
The product should be perceived as offering excellent value for money while serving social purposes, rather than simply being the cheapest option Customers are often willing to invest a bit more for high-quality solutions that meet their needs Based on insights from customer and expert interviews, along with comprehensive market research, SMART STARTUP will develop tailored service packages for health stations and individuals, categorized by region and income level into basic and advanced options The basic package starts at 50,000 VND per person per year, allowing for up to 50 SMS messages Additional services and SMS can be added, with pricing determined by the cost of production and the specifics of advanced service packages.
- The strategy of SMART STARTUP is to contact GDPM, NEPI office to have overal policy and contact health facilities to have grant to deploy SMIS
- Technical staff is always available to improve product, technical support and upload data to the system
- Customer can sign up for a free account and 1 month trial to make sure the product is necessary and helpful for them before deciding to use the product
- Online and Hotline Customer Care and Preventive Medine Consult are always willing to help customer and deal with their request
Some key activities which are considered as the most important things that SMART STARTUP would deploy include:
Software development is a multifaceted process encompassing various tasks, including computer programming, documentation, repair, and testing, all of which are crucial for creating and maintaining applications and frameworks As a vital component of IT startups, software development plays a key role in supporting and promoting their activities By effectively managing this process, startups can ensure the seamless creation, maintenance, and enhancement of their software systems, ultimately driving business growth and success.
SMART STARTUP training builds the all-around skills of employees so that they can work well and contribute to the business for a long term
SMART STARTUP plans to provide a range of level-ased employee training and development programes based on the required capabilities of each emloyee categorization and the anticipated future roles
Sale and leasing software service to healthcare providers:
The patient information held by healthcare providers is a vital asset, making the sale and leasing of software services a significant revenue stream for SMART STARTUP To capitalize on this opportunity, it is essential for SMART STARTUP to actively promote its software services to immunization and healthcare providers.
The collecting and uploading data need to be done regularly to ensure the novelty and updating of customer information, which might change on a regular basis
Providing notification SMS packages to parents, pregnant women, and other customers
In today's fast-paced world, many individuals, including parents and pregnant women, often neglect their healthcare due to busy schedules and lifestyle choices The introduction of notification SMS serves as a valuable reminder, ensuring that customers can prioritize their health With SMART STARTUP managing their healthcare routines, customers can enjoy peace of mind knowing their well-being is in good hands.
Key resources are essential inputs that a company utilizes to develop its value proposition and serve its customer segment These critical elements encompass both tangible and intangible resources necessary for business success For Smart-Startup, the key resources include a combination of these vital assets.
3.2.8.1 Fund raising from Start-up and Preventive Medicine Support funds
Raising capital is essential for the successful planning of a start-up, forming a crucial component of any business plan In Vietnam, Smart Startup has access to various investment funds that can provide the necessary funding for emerging businesses Several start-up funds associated with Smart Startup are available to help entrepreneurs secure financial support.
The Asian Development Fund (ADF) offers grants exclusively to lower-income developing member countries (DMCs) of the Asian Development Bank (ADB) Since its introduction in 2005, the ADF transitioned to a grant-only operation in 2017, following the shift of ADB's concessional lending to its ordinary capital resources (OCR).
Smart startup analysis of financial performance
To sustain operations in the first year, the company aims to raise a minimum of $200,000 from NGOs and other organizations This funding will support a team of approximately 10 individuals, with each employee's monthly costs, including salary, bonuses, benefits, training, and office leasing, estimated at 30 to 35 million VND.
Take a deep market and technical process research to have a clear vision of what and how the product needed to be developed
Product development: 6 months to SIS and 2 month for SMS services
A three-month pilot program will be conducted for immunization providers in Hanoi and Ho Chi Minh City to enhance the quality of immunization services The objective is to collect immunization data for at least 400,000 two-year-old children in the System for Management of Immunization Services (SMIS), with each city contributing to this goal.
Connect/integrate with Telcos to pilot Immunization SMS, aiming at 30% of parents of 400,000 babies above
Run a 2-month marketing campaign on Social media (Facebook, Vnexpress,…) with a Product introduction clip with honor of expert from MOH, General department of Preventive medicine and immunization providers, end – users
Deploy all over the nation (according to target customers vlumne above) o Analysis of financial performance
Table 3.8: Target market volumne and expected revenue
- Using straight-line depreciation method
- Provisional revenue within the year 0
- Estimate total cost rises 5% per year
The main depreciation method used is the fast depreciation method with a depreciation period of 3 years with a rate of about 10% of total revenue
- Assumed after 5 years will achieve 100% of target market
Table 3.10: Target market share after 5 years
Expected target market share achieved 20% 40% 60% 80% 100%
With EPI immunization, Smart Startup expects a market share of around 20%, generating a revenue of VND 6,600,000,000 billion
Non - EPI Immunization market is rated at a higher level of competition, Smart Startup expects to gain 5% market share and bring in revenue of 10,000,000,000 billion VND
Preventive medicine information for parents of children under 2 years old and pregnant women is an emerging field, with Smart Startup strategies capturing 10% and 5% of the market share, respectively This innovative approach generates annual revenues of VND 15 billion and VND 800 million, highlighting the growing demand for health resources in these demographics.
No Item Total cost Detail Note
Estimated costs are based on the current cost calculation of facilities and technology platforms Specific costs are attached in Appendix 1
# Item Unit Number Unit cost Total cost
1 Maintain, upgrade product & service Person/month 2 30,000,000 720,000,000
2 Leased line, server location, domain name leasing cost package/month 1 50,000,000 600,000,000
5 Customer care and marketing cost Agent/month 1 70,000,000 840,000,000
SMS/person*300.000 sub) SMS/year 15,000,000 350 5,250,000,000
Table 3.13: Expectes Business effectiveness (5 years)
2 Total annual cost (exclude depriciation cost) 54,269,434,353 VND
The data analysis software indicates that Smart Startup has a strong business performance, with a payback period of just 3.7 years, which is both reasonable and well-suited to its operational field.
