These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Google’s Smart Lens. Its smart lens monitors a diabetic’s sugar levels with a contact lens that measures the glucose in tears. This provides users with faster feedback on their glucose levels than with other meters and thus can help diabetics better manage their life styles. The smart lens contains circuitry that is fabricated on a polymer substrate. We recommend that Google market its lens through a medical equipment supplier such as Medtronic and focus on the collection and sale of the user data to health care companies.

1. Business Model for
Google Smart Lens
Arun Balu A0110204J
Ka Mung Chee A0098573M
Hanisah Hannifah Gupta A0098462U
Ler Ming Lim A0098570U
1
MOT5016 Business Models for Hi-Tech Products

2. Agenda
Introduction
Value Proposition
Industry & Market Analysis
Technology Comparison
Scope of Activities
Value Capture
Strategic Control
2

3. Diabetes
• Diabetes is a metabolic disease in which the person
has high blood glucose (blood sugar).
• 2 major types of Diabetes:
Type 1 Diabetes (Insulin-dependent)
o Your body makes too little or no insulin.
o Occurs commonly in patients
under 20 years of age.
Type 2 Diabetes (Non-insulin dependent)
o Your body can not use the insulin it makes
o 90% of diabetic patients are affected
with type 2 Diabetes.
3
No cure exists today, can only be managed
through lifestyle changes and drugs (insulin).

4. Glucose Meter Evolution
4
1950 1960 1970 1980 1990 2000 2010
Urine Analysis
Visual
Digital Readout
Blood Glucose Self Monitoring (BCSM) Continuous Glucose Monitoring (CGM)
Blood Analysis

5. Glucose Meter Evolution
5

6. Problem Statement
• The traditional method of using a lancing (pricking)
device is disruptive and painful and needs to be
done repeatedly throughout the day.
• Many diabetic patients check their blood glucose
less often than they should leading to poor diabetes
management.
6
finger tip calluses

7. 7
Google smart lens demo

8. What does Google Lens Do?
• Monitor glucose levels from tears by using sensor
• Transmit data via antenna to the users mobile device
• Provides a trend -continuous glucose level reading
per 1 second
• LED lights to warn users when their glucose levels
dangerously exceed too high or fall too low.
8

9. Value Proposition
9

10. Value Proposition
A continuous and painless method to monitor
glucose levels for better diabetes management.
• Continuous glucose monitoring- Eliminates the need for
users to actively perform blood testing
• Mobility to users- Wearable system can be integrated
with lifestyle
• Accurate readings ensures efficiency and safe use
• Coupled with healthcare informatics for insulin dosage
and remote monitoring
• Reusable allows a cost effective solution (estimated USD
100/month).
10

11. Industry & Market Analysis
11

12. Global Diabetes Market
• Diabetes Device Industry-
> US$12.2 billion (2012)
• Exponential increase in
Diabetic patients
• Trend of patients getting
younger (lifestyle, dietary,
less physical activities
reasons)
12IDF Diabetes Atlas 6th edition. 2013. International Diabetes Federation

13. Target Customers
• Young diabetic professionals (20-45 years)
• More active and mobile lifestyle
• More technology savvy
• Early users- Athletes, current contact lens users
13
IDF Diabetes Atlas 6th edition. 2013. International Diabetes Federation

14. Technology Comparison
14

15. Competitors
15
FDA Approved
Sept 2013

16. Competitors’ Analysis
16Accuracy
Comfort
(Non
Invasive) Convenience Reusable
Cost
effectiveness
Mobility
for patients
Continuous
Reading16
High
Low
Glucose Meter
‘Gold Std’
Continuous Glucose
Monitor
Glucose Meter
Watch
Google Smart
Lens

17. Scope of Activities
Bringing it to the market…
17

18. Bringing it to the Market
• Challenges for manufacturing
• In/Open innovation ?
• Alliance?
18

19. Key technology involved
• MEMS
• Antenna
• Lens (polymer)
• RF
o Power
o Date transfer
• Manufacturability
• Healthcare informatics
19

20. Manufacturability
• New ways of manufacturing to
embed MEMS into a polymer.
o Polymer and MEMS manufacturing
technique is not compatible
o Materials used in MEMS needs to be
biocompatible
o MEMS needs to be manufactured
separately and connected on the polymer
using
20
Source: http://spectrum.ieee.org/biomedical/bionics/augmented-reality-in-a-contact-lens/0

21. Putting it all together…
• Parts were fabricated on
wafers
• Each part has metal
interconnects
o Each is etched with a unique shape
• A substrate that is
lithographed with defined
shape is prepared to hold
parts together
• Micro-scale soldering of joints
21
Source: http://spectrum.ieee.org/biomedical/bionics/augmented-reality-in-a-contact-lens/0

22. Healthcare Informatics
New services can be derived with the use of this lens
which opens up new opportunities
• Remote monitoring of glucose level
• Possibility of Insurance compliance?
• Valuable data collection
• Real time Insulin dosage adjustment
22

23. In house Out Source
Lens ✓
Microcontroller ✓
Sensor ✓
RF ✓
Manufacturability ✓
Healthcare
informatics
✓
23
Keeping it in or Open Innovation?

24. Value Capture
24

25. Value Capture
25
Patient
Physician/
Hospital
Medtech
Industry
(Medtronic)
App-lens
Developer

26. Value Map
26

27. Which Company to Partner?
Medtronic
o World leader in medical device
technology and therapies
o MiniMed Insulin pumps for
continuous monitoring and
insulin pump therapy
o Technology Licensed from NASA
o Connected Care
o Have own solution for non-
invasive
glucose monitoring (Enlite)
27
Source: http://www.diabetando.net/sites/default/files/1_medtronic-minimed.jpg

28. Strategic Control
28

29. Emerging Wearable Computing Industry
29
• New growth industry
• $12 billion industry by 2018

30. Strategic Control
30
R&D
-Wearable medical technology
- Strategic Partnership
Healthcare Informatics
-Insurance compliance
-Remote monitoring
Standards
-compatibility
-Regulatory compliance
Strategy
-Acquisition of start-ups
-Vertical integration
Success &
Sustainability

31. Conclusion
• New Technology
o Continuous Monitoring
o Non invasive
o Unprecedented Mobility for Patients
• Emerging Market
o Healthcare informatics – Google’s core competencies!
• New value proposition
o Insurance Compliance
31

32. Thank You
Questions?
32

33. Back up slides
33

34. Competitors’ Analysis
34
Feature Google Smart lens Glucose meters
(“Golden Standard”)
Continuous Glucose
Monitoring
Medtronic MiniMed
GlucoWatch
Mode of
measurement
Contact lens worn to
measure glucose level in
tears
Finger pricking to
measure glucose
level in blood
Tiny sensor inserted
under the skin to
check glucose levels
in tissue fluid
Sensor at the back of
watch measures the
glucose in the fluid
under the skin
Accuracy Highly sensitive sensor Golden standard Measures interstitial
fluid glucose
Reference method
Reusable Yearly Strip- 1x use Up to 6 days Skin pad Every 12
hours
Convenience Lens is easy to put on Frequent test Change every 3-6
days
Change every 12
hours, 2 hours warm
up
Comfort Non-intrusive Frequent finger prick Insertion under skin non-intrusive with
small electric current
Non-invasive Lens worn on the eye Finger prick Sensor is worn at the
abdomen
Watch worn on the
wrist
Mobility Wearable technology Testing strips/kits to
be brought alongside,
Frequent testings
Replacement of
sensor required
Wearable technology,
Replacement of
sensor pads required
Continuous
readings
Yes, up to 1 s intervals No 5-minute or 1-
minute intervals
every 10 mins

35. Cost Comparison
35
Contact
Lens
GlucoWatch Glucose
meter
Continuous
Glucose
Monitoring –
Medtronic
Enlite
Google
Smart lens
Sensor pad
$240 (monthly,
$4 per pc)
Test strips
$85 Monthly
(4x/ day
testing, 75
cents per test
strip.
Transmitter
unit $375
Sensor
$473 Monthly
(5 pcs)
$100
Monthly
(1 pair with
1 sensor)
Watch
$140
Reader
$20-$70
$40
(Monthly
disposables)