Metropolia University of Applied Sciences

Helsinki

The team project plan for Aid-One

“The wild card” -option

Health Business Management

Health Business Economics and models
Sara Narbonne, Anna-Lotta Antniemi & Janika Sorvari
December 2015 
 Introduction

The purpose of the assignment is to scope the team project plan for Aid One. We are
supposed to take a market analysis of the chosen segment and see if we choose a
certain geographical area. We will analyze the market and the possibilities of Aid-
One on those markets. Then at the end, we discus, what kind of a business model
we would apply on the markets in the case of selling usage rights. On our team, our
segment wasn’t on the specific list, it was “the wild card” option. We chose for our
”wild card”-option Bill and Melinda Gates foundation.

Bill & Melinda Gates Foundation is the largest private foundation in the world,
founded by Bill and Melinda Gates. It was launched in 2000 and is said to be the
largest transparently operated private foundation in the world. The primary aims of
the foundation are, globally, to enhance healthcare and reduce extreme poverty, and
in America, to expand educational opportunities and access to information
technology. (Wikipedia, 2015).

The market analysis

Bill and Melinda Gates Foundations Global Health Division are working on saving
lives in developing countries. “Countries that are slightly over the amount of US$
11,905 will be considered a developing country for the year 2014.” There were over
130 developing countries in 2014. (26th IUGG General Assembly 2015). There are
developing countries all over the world so it is hard to define them based on the
geographical location. What is common for those countries is the fact that people
don´t have possibilities to study, or the level of education is low, which presumably
contains also first aid skill - education level.
So how to unite Aid One and Bill and Melinda Gates Foundations? WHO points out
that road traffic accidents are the tenth leading cause of death in developing
countries, so road traffic accidents creates the need for the Aid One cover. Bill and
Melinda Gates Foundations could share covers for developing countries, so that
people in developing countries get the Aid One cover for free in their cars to give
support if first aid needed in cases of traffic accidents. “Of the 501 people from low-
income countries, nine would have died because of a road traffic injury” (WHO). If
helping even close to this amount of people in developing countries, the magnitude
of the market would be huge. There are also a lot of poor cars in low-income
countries and a driving culture doesn´t necessarily foster road safety, so the future
trend of road traffic injuries is rather increasing.

The market share of this product is big, because there are not many competitors on
the field. First Aid Blanket, designed by “Prof. Chai Chunlei, Qiu Yiwu, Cheng Zirui,
Jin Qi, Li Zhexin, Li Ziyao, Ma Xuna, Shao Shuai and Yu Yijun” (Yankodesign), is
quite similar than Aid One Cover. First Aid Blanket has an advantage in the product
itself, to wit a removable flap on the chest when giving resuscitation, so it is easier to
find the right spot where to locate fist. Another asset is that they already have
pictures instead of text on their blanket, so that unlettered people in developing
countries can use it easier. Thus there is no need to put resources on productization,
which is the case with Aid One Cover. The third asset is that Yanko Design is more
known abroad than a small startup company from Finland. However, Aid One has a
huge asset in marketing, if considering selling for Bill and Melinda Gates
Foundations, as they are willing to sell licenses, not only the product. They both are
using internet as a selling channel, at least for now.
 The market and the possibilities

As the largest private foundation in the world, Bill & Melinda Gates Foundation would
bring for Aid One cover massive market possibilities. B & M Gates Foundation was
identified by the Funds for NGOs Company in 2013, as the world's wealthiest
charitable foundation, with assets reportedly valued at more than $34.6 billion.
(Wikipedia, 2015). Bill & Melinda Gates Foundation’s primary aims of the foundation
are, globally, to enhance healthcare and reduce extreme poverty, and in America, to
expand educational opportunities and to access information technology. (Wikipedia,
2015). Aid One cover can be recognized as a simple guidance tool and could be a
global product used in develop countries.

Aid One co-founders would not become mass-manufactured themselves, but rather
would sell licenses and usage right to Bill & Melinda Gates Foundation. B & M Gates
Foundation do all of their work in collaboration with grantees and other partners, who
join with them in taking risks, pushing for new solutions, and harnessing the
transformative power of science and technology. They strive to engage with their
grantees and partners in a spirit of trust, candid communication, and transparency.
Aid One could sell their licenses and usage rights, or be a part of charity and give it
to the foundation as a good reputations.

Thousands of people die every year in situations where first aid could have saved
their lives. B & M Gates Foundation would bring about the kinds of changes that will
help people live healthier and more productive lives, as they seek to understand the
world’s inequities. Whether the challenge is low-yield crops in Africa, they listen and
learn so they can identify pressing problems that get too little attention. (Bill &
Melinda Gates foundation, 2015). They would make a meaningful difference with
their influence and investment for developing their first-aid product in develop
countries.
Aid One has a US and European patent application pending, which cover the current
combination of first aid elements in one product. They also have future technological
extensions such as a CRP mouth-piece, various health-tracking sensors and
location-tracking. Aid-One has not invested in this, and that’s why they should sell
the idea to B & M Gates Foundation, and they would have opportunity to invest
money such a technology and science.

B & M Gates Foundation collective efforts also depend on the support and resources
of governments, the private sector, communities, and individuals. (Bill & Melinda
Gates foundation, 2015). Being already in a big market of foundations, it would have
a great opportunity to bring out this idea for big companies. Everyone who is willing
to bring good value for their company are willing to invest some money for these
products. Also, the government of African countries are sure willing to invest in this
for the sake of their people’s lives. As the road traffic injuries are such a big problem
in African, this could be a solution they have been seeking. The various health-
tracking sensors and location-tracking will help ambulance’s to find the emergency
location easier, even in places where they do not have phone connection. The CRP
mouth-piece, would make giving CRP easier without uncertainty for infectious
diseases.

“The world has 6.8 billion people… that’s headed up to about 9 billion. Now if we do
a really great job on new vaccines, health care, reproductive health services, we
could lower that by perhaps 10 to 15 percent.” Has said by Bill Gates. As important
as humanitarian assistance may be in giving sick people needed medicines and
vaccines, ultimately Africa needs to modernize its health care system. Approximately
1.24 million people die yearly on the world’s roads and another 20 to 50 million
sustain non-fatal injuries as a result of road traffic crashes. (Daily Nation, 2015). By
Aid One cover people can be educated and the knowledge can save lives on a
global scale.
 The business model on the markets - selling usage rights

We believe that the current business system of Aid One should continue to be an
evolving online business system, while pursuing partnerships with the Bill and
Melinda Gates Foundation. To make the new partnership profitable, Aid One should
be keen to develop on their understanding of the values of Bill and Melinda Gates
Foundation. The business model of Aid One needs to meet the requirements and
form an agreement with the NGO, so changes to their mission, vision, values and
ethics could be tailored and made more visible. Selling usage rights to the Bill and
Melinda Gates Foundation will develop a partnership, through which it could
establish institutional access to expert knowledge on how to deal with saving lives on
a global scale, and have their first-aid product make a change in developing
countries. This will enable the B&M Foundation to further distribute the product
amidst their projects, in order to enhance global health. This new partnership will
further increase on the value proposition of the product, along with the companies
status, by being in partnership with one of the world’s most famous NGO. An NGO
like the Bill and Melinda Gates Foundation can present itself to ‘customers’ i.e.
masses who provide donations, as being a powerful and recognized activist in
global health. This promises effective results; “engaging NGO’s in partnerships are
perceived as being able to influence corporations’ practices and politics’’. (Jacobs
2011) Aid One can gain more recognition and value in their business through such
partnership.

Marketing and sales for developed countries (not through B&M Foundation) will have
an emphasis on person-to-person relationships through partners, direct sales, and
online affiliated marketing targeted towards individual customers, resulting in
transaction revenues. There would not be a need for “marketing” B&M Foundation’s
projects as such, for the beneficiary would be in charge of the distribution of the
product, resulting in recurring revenue streams. Asset sales would be the method
through which cash flow is generated, regarding the B&G Foundation. The nature of
the product and targeted projects of the organization are in geographical regions
where most revenue streams related to IT-functions would not succeed.
The profit model consists of selling the product either directly or indirectly to the
partners and buyers themselves (cash flow from operations). B&M Foundation will
expand the customer base through their projects and partners who already operate
in 100 countries with the objective of enhancing global health. In order to fund the
potential expansion, the firm would have to raise further funds from investor’s i.e. by
issuing more shares or by borrowing money from lenders if they do not have
sufficient revenue to cover the costs. Partnering with B&M Foundation will attract
more investors. Cash flows could be received from financing activities, which include
selling equity (shares) or by issuing debt (borrowing money). Cash flow could also be
generated by investing in activities by buying assets which could include long-term
assets, such as warehouse space for the product, or by increasing production
capacity (by investing in more machinery). The cash flow is usually a good indicator
of the firm's liquidity (which is the ability of the firm to meet its financial obligations).
The possibility of expanding on global markets for a good cause through the B&M
Foundation will enhance prospects of market liquidity. This further enhances the Net
Cash Flow (NCF= CFF + CFO + CFI )* which in turn increases the company’s
liquidity with increased profits, while producing and enabling an important lifesaving
tool; the AidOne blanket to be distributed to developing countries in their own
language.

*( The Net Cash Flow (NCF) consists of Cash Flow from Financing activities (CFF), Cash Flow from
Investment activities (CFI) and Cash Flow from Operational activities (CFO). NCF = CFF + CFO +
CFI) ) (Liquidity & Financial Statements , n.d)
References

Aid One. (Online) Available at:

http://aid-one.net/en/ [Accessed 07 December 15].

Bill & Melinda Gates Foundation. (Online) Available at:

http://www.gatesfoundation.org/ [Accessed 07 December 15].

Daily Nation. (Online). Available at:

http://www.nation.co.ke/news/africa/South-Africa-Road-Accidents/-/1066/2839314/-/
yfsnpuz/-/index.html [Accessed 07 December 15].

Investopedia. Liquidity. [Online] Available from:

http://www.investopedia.com/terms/l/liquidity.asp [Accessed: 3.12.2015]

Investopedia. Financial Statements. [Online] Available from:

http://www.investopedia.com/university/financialstatements/financialstatements3.asp
[Accessed: 4.12.2015]

IUGG 2015 Prague. (2015) List of developing countries. (Online) Available from:
http://www.iugg2015prague.com/list-of-developing-countries.htm. (Accessed: 2nd
December 2015).

Jacobs, Peter (2011) NGO- Corporate Partnership: Does It Challenge Business ?.

[Online] Corporate Watch Magazine. Volume 49. Available from :
https://corporatewatch.org/magazine/49/summer-2011/ngo-corporate-partnership-
does-it-challenge-business [Accessed: 5.12.2015]

Wikipedia (2015). Bill Gates. Available at:

https://en.wikipedia.org/wiki/Bill_Gates [Accessed 07 December 15].

Wikipedia (2015). Bill & Melinda Gates Foundation. Available at:

https://en.wikipedia.org/wiki/Bill_%26_Melinda_Gates_Foundation [Accessed 07
December 15].

World Health Organization. (2007) The top ten causes of death. (Online) Available
from: www.who.int/mediacentre/factsheets/fs310.pdf. (Accessed: 2nd December
2015).

Yanko Design. (2014) Meet the first aid blanket. (Online) Available from:
http://www.yankodesign.com/2014/11/25/meet-the-first-aid-blanket/ (Accessed: 2nd
December 2015).
Appendix 1

The Business Model Canvas for Aid One “Wild card”- idea
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments

 Bill and Melinda Gates
Foundation (Developing
Countries)
 Vertical the Health
Accelerator
 Enterprise Helsinki NewCo
Factory
 SPA Health
 Rudus Turvapuisto
 Aalto University
 Suppliers : the
manufacturer in Finland
 Increasing visibility in
NGO sector
 Getting mentoring and
support in business area
 Key activities in
healthcare, business
advice and safety in work
 Bill and Melinda Gates
owns/will buy usage rights
 Continuation of selling
product 60eur piece to
developed countries
 Improving knowledge in
CPR for all people globally
Key Resources
 Bill and Melinda Gates
Foundation
 Customers:
 Kone, Fennia, Cern, Aalto
University, Hanken,
Formica, Bemis, NordKalk,
Optima, Helen
 Increased value added
aspect of company due to
Bill & Melinda Gates
 Value added aspect of
product Bill and Melinda
gates logo
 Visibility of NGO work
 Providing knowledge and
guidance when facing
unconscious victim for all
people globally (different
languages)
 Adding a sense of
security globally
 Build self-confidence in life
saving procedures
 Simple affordable product
that can be used by
anyone
 Finnish product
 Bill and Melinda Gates
Foundation will distribute
product globally
 Old customer relationships
stay the same
Channels
 Bill and Melinda Gates
projects around the globe
 Online marketing
 Through existing partners
 People in developing countries who
have limited access to healthcare
 Crisis zones where basic lifesaving
skills are needed
 People who are interested in basic
lifesaving skills
 Any person can save a life through
CPR

Cost Structure Revenue Streams

 Company will carry online marketing and selling product to developed countries
 Bill and Melinda Gates (non fixed prices, deals for big amounts – agreement on
the basis NGO needs and ethical values) to developing countries.
 Recurring revenues from ongoing payments to deliver value proposition by partnership
and work with NGO projects through global partnership with Bill and Melinda Gates
Foundation
 Transaction revenues (one time customer payments)
 Through key partners
 Revenue from selling products and guidance
Appendix 2

Customers Partners

+ Private customers