Business Question

BUS 400 Module Six Assignment Guidelines and Rubric

Overview

Creativity and diversity can lead to outcomes that both maximize profit and enhance social well-being. Business leaders use measurable factors to help determine design and development decisions, “go” or “no-go” milestones, financial models, and many “what if” scenarios. In this process, the new product or service is considered as part of a system.

Scenario

You rocked your BMC and received a great response from the experienced project manager (PM). As you read the feedback, you realize that it’s now time to develop the financial component. In the comments, the PM also stated that no matter how good an idea is, to senior management, it’s a “no-go” if the new product or service does not produce sales.

In preparation for your funding pitch, which you will submit as your course project in Module Seven, the PM also warns that funding pitches are quick and decisive. Including too much information could overwhelm senior management, cause more questions, and erode the purpose of the funding pitch.

Prompt

The PM’s directive at this point is for you to develop a 24-month pro forma that demonstrates the potential profitability of the new product or service in an income statement. You will use the Module Six Assignment Template linked in the Guidelines for Submission section to complete this assignment.

You may use the current company’s income statement to project what can be added to the company’s profitability. This can be found in the company’s 10-K. Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Additionally, you may use the company’s current year numbers and key assumptions based on your analysis of the market to project into the future. Remember, these numbers are purely speculative.

In the template, you will specifically address the following:

Previous fiscal year: Identify historical information for the previous fiscal year.

24-month projections: Speculate projections for 24 months.

Explanation of assumptions: Explain how you were able to speculate appropriate assumptions.

BUS 400 Module Six Assignment Template
24-Month Pro Forma
Insert the appropriate values in each row.
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total operating expense
Income from operations
Other income
Income before tax and interest
Other expense (interest)
Income before income tax
Income tax expense
Net income
Previous Fiscal Year
$
$
$
$
$
$
$
$
$
$
$
$
$
24-Month Projections
$
$
$
$
$
$
$
$
$
$
$
$
$
Explanation of Assumptions
[Insert one to two paragraphs explaining how you speculated appropriate assumptions.]
References
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