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Competencies
In this project, you will demonstrate your mastery of the following competencies:
Scenario
It’s the moment of truth: your opportunity to demonstrate why your new product or service is worth funding. You have done the research and know that the funding you seek can be a game changer for the company. Not only will it produce revenue and profitability, but more importantly, it will strategically set the company apart from its competition.
You just have to convince senior management.
In preparation, you have created a checklist for yourself to use in compiling information that includes research, feasibility of the idea via the BMC, scope of project (timeline included), project risk mitigation, DEI, CSR, and 24-month pro forma.
You know that anything can happen in a funding pitch. With this in mind, you are prepared to answer questions that encompass all aspects of the project.
Directions
Create a pitch for funding. In this pitch, you will have to convince senior management to greenlight the new product or service. Aspects of the pitch that must be addressed:
Value proposition: Describe the company’s current value proposition in the market.Describe the selected company’s main product or service.Discuss the company’s overall strategic plan.Competitive advantage: Describe the competitive advantage the company will gain by funding the project.Describe how you discovered an opportunity to do something better than your competitors.Determine how the new product or service shifts the value proposition of the company.Risks and opportunities: Establish the risks and growth opportunities of the company.Determine if the new product or service could disrupt the current industry.Identify the risks associated with the development of this new product or service.Growth opportunities: Describe the areas of potential growth for the company.Identify the growth opportunities within the company.Explain how the competitive advantage allows for growth.Distinguish as a new product or innovation: Distinguish the new product/service as an innovation or improvement on an existing product/service.Determine if the product or service fits within the capabilities of the company.Note: a company’s SWOT analysis or 10-K is an indicator of whether the new product or service could be feasible.Explain how the new product or service adds to the portfolio of the company.Target segment: Describe the targeted segment.Identify the target customer.Explain your blue ocean strategy.Note: The new market is identified here.Speculate sales: Speculate on the projected sales.Justify your product or service by the numbers; discuss your projected revenue gain.Note: it MUST have an ROI that justifies the project for investors and/or senior management.Explain the risks associated with projected sales.Speculate profitability: Speculate on the profitability of your proposed product or service.Determine if the project is profitable.Note: In this pitch for funding, senior management has to know that the project, based on market research, is speculated to be profitable. Use the company’s current income statement to project how the company’s profitability will be affected. Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Note: these numbers are purely speculative.Determine the impact on the functional areas of the business (accounting, marketing, sales, and so on).CSR plan: Outline the plan to service the community or customers that purchase the product or service.Discuss how the idea demonstrates corporate social responsibility (CSR).Identify what the company has invested in as it relates to the communities they serve.Discuss how a good CSR plan helps the company gain competitive advantage.DEI plan: Summarize how the project will include a variety of perspectives to get a better unique value proposition.Determine if the company has a corporate culture built on DEI.Discuss how the project’s DEI plan fits into the company’s overall strategic plan. Business Model Canvas
By: Cherelle Pratt
Company: Apple Health+
Last updated: June 7th, 2024
Unique Value Proposition
• The company offers a personalized Apple Health service.
• Advanced algorithms helps analyze each customer’s complete financial picture and life
situation.
• The company provides highly customized recommendations and an interactive planning
experience through a user-friendly mobile app.
• A strategic advantage is achieved as a result of this personalization and accessibility.
1: Key Business Model Questions: The Customer
1.How do you acquire customers?
We will acquire customers primarily through digital marketing across social media, websites,
and mobile apps frequented by our target audience (Learn.marsdd.com, 2020).
2. How do you deliver the product/service to the customer? [(Note: This is the Channels
section of the BMC chart.
The product is a mobile app that customers can download and access anytime on their
smartphones or tablets.
3. After you have landed a new customer, how do you plan to relate to that customer and
manage the relationship (if at all)? [(Example: customer service)
We will provide 24/7 in-app customer support chat as well as a help center with FAQs and
tutorials. Customer feedback will be regularly collected and analyzed.
1(a): Key Business Model Questions: The Customer, Continued
4.How will you charge your customers? What is your revenue model?
Revenue model: Freemium subscription. The basic app is free, with premium planning
features and live advisor access available for a monthly fee (Riani, 2019).
4.How much will you charge your customers? Can you calculate your revenues for the next
month, quarter, and year?
Monthly subscription price of $19.99, with discounts for annual billing. Yr 1 revenue forecast:
50K users * 30% conversion * $19.99/mo * 12 mo = $3.6M
4.What key activities do you need to engage in to deliver your value proposition?
• App development
• AI/machine learning,
• Digital marketing
• Customer support
2: Key Business Model Questions: Assets, Partners, and Cost
1. What assets are available to you or under your control? [(Refer to the company’s SWOT analysis.)
• Robust technological infrastructure (cloud computing, data centers)
• Skilled data scientists, healthcare professionals, and product engineers
2. Who are your key partners?
• Healthcare providers for data integration
• Personalized care plans
• Referral networks (jat & grønli, 2022)
• Fitness companies for integrated workout tracking and personalized exercise recommendations
• Data analytics firms for advanced predictive modeling and algorithm development.
3. What are your cost structures? What will you need to pay for in order to create the product/service?
• Research and development costs for continuous innovation and product enhancement
• Manufacturing costs for compatible apple devices
• Marketing and advertising expenses for customer acquisition
• Operational costs
3: Create Your Own Business Model Canvas Chart
Key Partners
Key Activities
1. Healthcare providers for data
integration, personalized care plans,
and referral networks (Jat & Grønli,
2022).
1. Continuous data collection and
analysis from Apple devices and 3rdparty sources.
2. Development and refinement of
predictive algorithms and ML models.
3. Integration of health features across
Apple’s hardware and software.
2. Fitness companies for integrated
workout tracking and personalized
exercise recommendations.
3. Data analytics firms for advanced
predictive modeling and algorithm
development.
4. Ongoing product improvement
based on user feedback and usage
data (Machorro-Cano et al., 2023).
Key Resources
1. Robust technological
infrastructure (cloud computing, data
centers) for secure data storage and
processing.
2. Skilled data scientists, healthcare
professionals, and product engineers.
3. Strong partnerships with
healthcare providers, fitness
companies, and data analytics firms.
Value Proposition
Apple Health+ offers a revolutionary
health management solution by
seamlessly integrating advanced
Apple technologies, devices, and
platforms. It provides personalized,
predictive, and actionable health
insights tailored to each user’s unique
needs and lifestyle. Through
continuous monitoring, data analysis,
and machine learning algorithms,
Apple Health+ empowers users to
take control of their well-being and
proactively manage their health.
Customer Relationship
1. Personalized health coaching a
recommendations based on user
and preferences.
2. Engaging community forums a
social features for peer support a
motivation (Orji & Moffatt, 2018
3. Seamless integration with exis
Apple services (e.g., Apple Watch
a cohesive user experience.
Channels
1. Apple’s retail stores and online
platforms (website, App Store) fo
product awareness and sales.
2. Partnerships with healthcare
providers and fitness companies
co-branded offerings and promo
3. Targeted marketing campaigns
(digital, print, and influencer
marketing) for customer acquisit
Cost Structure
Revenue Streams
1. Research and development costs for continuous innovation and product enhancement.
1. Subscription fees for Apple Health+ service (month
2. Manufacturing costs for compatible Apple devices (e.g., Apple Watch, iPhone).
2. Sales of compatible Apple devices (e.g., Apple Wat
3. Marketing and advertising expenses for customer acquisition and brand awareness.
3. Potential revenue-sharing models with healthcare
4. Operational costs (staff, infrastructure, partnerships).
4. In-app purchases for premium features or persona
4: Consider Your Business Model
• Based on the BMC chart, why does it make sense to proceed with this new
product/service?
Apple Health+ addresses the growing demand for personalized, data-driven health
management solutions by leveraging Apple’s ecosystem and advanced technologies.
• What are the risks to your business model? [(For example, do you have the right
relationships with suppliers and partners to create the value proposition and bring it to
market?)
Data privacy and security concerns, regulatory compliance, competition from other tech
giants and specialized health apps.
• Are there things that can or should be changed to strengthen the business model to
reduce its risk? [(Refer to the SWOT analysis. Example: having multiple suppliers to
protect the project.)
Strengthen model by: Prioritizing user privacy and data security, establishing strong
partnerships with healthcare providers and fitness companies, and continuously innovating
based on user feedback and emerging technologies.
5: Clarify Your Business Model Assumptions
BMC Chart Item in Question
This Is a Fact.
Here Is My Evidence:
Customers are willing to pay for personalized health
insights
Market research shows growing demand for datadriven health solutions (Jat & Grønli, 2022)
Apple’s brand and ecosystem will drive user adoption
Apple’s strong brand loyalty and seamless integration
across devices
This Is an
Assumption
Healthcare providers will partner with Apple Health+
X
Fitness companies will integrate their services with Apple
Health+
X
Data analytics firms will contribute to algorithm
development
X
Users will trust Apple with their sensitive health data
Apple’s track record of prioritizing user privacy and
security
6: Preparing to Meet Customers: Materials and Sales Process
Material
Website
Customer presentation
Marketing plan
Sales process description
Acquisition of customers
Sales process (e.g., website sales)
Pricing options: single-priced vs. multi-tier
Required?
✓
✓
✓
✓
✓
✓
✓
7: Update Your Documentation
• The product/service is targeted to…
Apple Health+ targets tech-savvy young adults, health-conscious individuals, and elderly
users seeking personalized, data-driven health management solutions.
• The type of value our product/service delivers is…
Core value proposition is the seamless integration of advanced Apple technologies, devices,
and platforms to provide predictive, actionable health insights.
• Our product/service is unlike others because…
Apple Health+ differentiates itself through its deep integration with Apple’s ecosystem, continuous
data analysis and ML algorithms
9: Updated Business Model Canvas Chart
[Complete this template by replacing the bracketed text with the relevant information.]
Key Partners
Key Activities
Value Proposition
1.
1.
Apple Health+ offers a
revolutionary health management
solution by seamlessly integrating
advanced Apple technologies,
devices, and platforms. It provides
personalized, predictive, and
actionable health insights tailored
to each user’s unique needs and
lifestyle. Through continuous
monitoring, data analysis, and
machine learning algorithms,
Apple Health+ empowers users to
take control of their well-being
and proactively manage their
health.
2.
3.
4.
Healthcare providers for data
integration, personalized care
plans, and referral networks
(Jat & Grønli, 2022)
Fitness companies for
integrated workout tracking
and personalized exercise
recommendations
Data analytics firms for
advanced predictive
modeling and algorithm
development
Research institutions for
collaborative studies on
health outcomes and user
behavior
2.
3.
4.
5.
Continuous data collection and
analysis from Apple devices and
3rd-party sources
Development and refinement of
predictive algorithms and ML
models
Integration of health features
across Apple’s hardware and
software
Ongoing product improvement
based on user feedback and
usage data (Machorro-Cano et
al., 2023)
Rigorous data privacy and
security measures to protect user
information
Key Resources
1.
Robust technological infrastructure (cloud computing, data centers) for secure data
storage and processing
2.
Skilled data scientists, healthcare professionals, and product engineers
3.
Strong partnerships with healthcare providers, fitness companies, and data
analytics firms
4.
Apple’s brand reputation and loyal user base
Cost Structure
Revenue Streams
1.
1.
Research and development costs for continuous innovation and
2.
product enhancement
2.
Manufacturing costs for compatible Apple devices (e.g., Apple Watch,
iPhone)
3.
Marketing and advertising expenses for customer acquisition and brand3.
awareness
4.
5.
Operational costs (staff, infrastructure, partnerships)
Data privacy and security compliance costs
4.
Customer Relationship
1.
Personalized health coaching and
recommendations based on user data
and preferences
2.
Engaging community forums and
social features for peer support and
motivation (Orji & Moffatt, 2018)
3.
Seamless integration with existing
Apple services (e.g., Apple Watch) for
a cohesive user experience
4.
Dedicated customer support for
onboarding, troubleshooting, and
feature guidance
Customer Segments
1.
Tech-savvy young
adults (25-40 years)
who prioritize fitness
and preventive
healthcare
2.
Health-conscious
individuals (30-55
years) seeking
comprehensive
wellness solutions
3.
Elderly users (55+
years) who rely on
technology for
monitoring chronic
conditions and
maintaining
independence (Jat &
Grønli, 2022)
4.
Healthcare providers
looking to enhance
patient engagement
and outcomes
Channels
1.
Apple Health+ app for iOS and watchOS
2.
Integration with existing Apple services
(e.g., Apple Watch, iPhone, iPad)
3.
Apple Store and website for subscription
sales and device bundles
4.
Partner channels (healthcare providers,
fitness companies) for targeted promotion
Subscription fees for Apple Health+ service (monthly or annual plans)
Sales of compatible Apple devices (e.g., Apple Watch, iPhone) bundled with Health+
subscription
Potential revenue-sharing models with healthcare providers and fitness partners
In-app purchases for premium features or personalized coaching services
10: References
• Jat, A. S., & Grønli, T.-M. (2022). Smart Watch for Smart Health Monitoring: A
Literature Review. Bioinformatics and Biomedical Engineering, 13346, 256–268.
https://doi.org/10.1007/978-3-031-07704-3_21
• Learn.marsdd.com. (2020, November 14). Bottom-up forecasting for pre-revenue
startups: Entrepreneur’s toolkit. MaRS Startup Toolkit.
https://learn.marsdd.com/article/bottom-up-sales-forecasting-for-pre-revenuestartups/
• Machorro-Cano, I., Olmedo-Aguirre, J. O., Alor-Hernández, G., Rodríguez-Mazahua,
L., Sánchez-Morales, L. N., & Pérez-Castro, N. (2023). Cloud-Based Platforms for
Health Monitoring: A Review. Informatics, 11(1), 2.
https://doi.org/10.3390/informatics11010002
• Orji, R., & Moffatt, K. (2018). Persuasive technology for health and wellness: Stateof-the-art and emerging trends. Health Informatics Journal, 24(1), 66–91.
https://doi.org/10.1177/1460458216650979
• Riani, A. (2019, November 14). 6 revenue models every entrepreneur should know.
Forbes. https://www.forbes.com/sites/abdoriani/2019/11/14/6-revenue-modelsevery-entrepreneur-should-know/?sh=3eb1301b475e
BUS 400 Module Six Assignment Template
24-Month Pro Forma
Cherelle Pratt
June 13, 2024
Sales
Cost of Goods Sold (COGS)
Gross Profit
Selling Expenses
Administrative Expenses
Total Operating Expenses
Income from Operations
Other Income
Income Before Tax and Interest
Other Expense (Interest)
Income Before Income Tax
Income Tax Expense
Previous Fiscal Year
$383,285 million
$214,137 million
$169,148 million
$24,932 million
$29,915 million
$54,847 million
$114,301 million
$(565) million
$113,736 million
$0 million
$113,736 million
$16,741 million
Net Income
$96,995 million
24-Month Projections
$3.6 million
$1.08 million (30% of Sales)
$2.52 million
$0.72 million (20% of Sales)
$0.54 million (15% of Sales)
$1.26 million
$1.26 million
$0
$1.26 million
$0
$1.26 million
$0.252 million (20% of
Income Before Tax)
$1.008 million
Explanation of Assumptions
In order to come up with such projections, we factored in the expected trends in the market
demand and the pricing strategy for Apple Health+. The projection of $3.6 million in the first year has
been well presumed, given that the application will convert 30% of the first 50,000 users into paying
customers, each paying $19.99 monthly. This user base is projected to increase by another 50% in the
second year, highlighting the market’s potential for the unique proposition of AI-driven, individualized
health insights (Riani, 2019).
The cost of goods sold (COGS) includes expenses linked to app creation and its constant update
and improvement that requires additional AI enhancements. Selling expenses are expected to be 20% of
sales, given that the cost of reaching out to the intended audience and customers when advertising in the
virtual platform is relatively expensive in the initial stages of the project (MDD, 2024). The
administrative expenses are expected to be 15% of sales, which are personnel costs and other costs
associated with the support staff, which are vital to the efficient running of the service (Apple Inc., 2023).
The overall taxation rate is cut down to twenty percent, reflecting proposed tax incentives for new health
technology solutions. Such assumptions help in coming up with realistic projections of the service’s
profitability in the next 24 months.
References
Apple Inc. (2023). United States Securities and Exchange Commission Form 10-K.
https://s2.q4cdn.com/470004039/files/doc_earnings/2023/q4/filing/_10-K-Q4-2023-As-Filed.pdf
MDD. (2024). Bottom-up Forecasting for Pre-revenue Startups | Entrepreneur’s Toolkit. MaRS
Discovery District. https://learn.marsdd.com/article/bottom-up-sales-forecasting-for-pre-revenuestartups/
Riani, A. (2019). 6 Revenue Models Every Entrepreneur Should Know. Forbes.
https://www.forbes.com/sites/abdoriani/2019/11/14/6-revenue-models-every-entrepreneurshould-know/?sh=3eb1301b475e
1
BUS 400 Milestone One
Cherelle Pratt
BUS 400- Driving Business Opportunities
May 23, 2024
2
BUS 400 Milestone One
Introduction
Good morning to all of you. Thank you for allowing me to share my idea of the Apple
Health+ project. As we all know, Apple is one of the most prominent pioneers of innovation and
technology, and this new service aims to change the health management paradigm by using our
advanced devices and platforms.
How It Fits
It is important to note that Apple Health+ aligns with our firm’s strategic direction and
mission to design positive impact solutions for consumers. By integrating machine learning, big
data analysis, and the compatibility of Fitbit devices, such as the Apple Watch, we can provide
innovative and unique recommendations and health tips for people to take better care of
themselves (Jat & Grønli, 2022). Our research has shown that Apple Health+ is a perfect fit for
our company’s competencies. We also have a clear vision of how hardware and software should
be integrated into a device and how the final product should look and function. In addition, our
current portfolio of devices and services makes introducing a wide-ranging health and fitness
system convenient.
Justification
In this case, it should be noted that the numbers speak for themselves. The health and
wellness technologies, based on industry reports, continue to expand tremendously since
consumers are always searching for easy-to-use and efficient health monitoring products and
solutions (Orji & Moffatt, 2018). The market potential of Apple Health+ through subscriptions to
the service and sales of the devices can be considerable, translating to increased revenues.
3
Based on estimation, in the first three years, the company may grab 10% of the market
share, and considering the subscription fees and device sales, we estimate the overall revenue
benefit to be $5 billion per year. As a result of our storefront and strong brand loyalty, we expect
to achieve a high rate of return on investment, with an estimated return of 25% within five years
of operation.
Enhancing the mission
Apple Health+ aligns with our company’s mission statement and upgrades the mission by
presenting us as the company leading in technology usage in the health sphere. In this way, every
aspect of the client’s life is addressed for the better, and our company reaps the benefits of an
increased bottom line and healthy growth.
More specifically, a key message in our most recent filed 10K report is that, in order to
sustain our competitive advantage, innovation and user experience are crucial factors (Apple
Inc., 2023). Apple Health+ illustrates these values well because it provides a smooth and userfriendly system that gives customers a sense of autonomy over their well-being, which leads to
high sales and brand devotion.
Conclusion
To sum up, Apple Health+ is a powerful opportunity to change the health and wellness
market, bring qualitative revenue, and strengthen our company’s position as an innovative
market maker. Based on the strengths, opportunities, and aggressive people-focused mission, this
project has the ingredients to make a big difference. I appreciate the time you have spent with
me, and I hope to have a chance to discuss this great opportunity in the future.
4
References
Apple Inc. (2023). United States Securities and Exchange Commission.
https://s2.q4cdn.com/470004039/files/doc_earnings/2023/q4/filing/_10-K-Q4-2023-AsFiled.pdf
Jat, A. S., & Grønli, T.-M. (2022). Smart Watch for Smart Health Monitoring: A Literature
Review. Bioinformatics and Biomedical Engineering, 13346, 256–268.
https://doi.org/10.1007/978-3-031-07704-3_21
Orji, R., & Moffatt, K. (2018). Persuasive technology for health and wellness: State-of-the-art
and emerging trends. Health Informatics Journal, 24(1), 66–91.
https://doi.org/10.1177/1460458216650979
