engr110/210 perspectives in assistive technology guest lecture
TRANSCRIPT
1
ENGR110/210Perspectives in Assistive Technology
Guest Lecture: ROTA Mobility Inc.
From Development to Commercialization
R TAM O B I L I T Y
R TAM O B I L I T Y
ChrisCo-founder, ROTA
MichaelCo-founder, ROTA
CEO and FounderDiamond Semiconductor Systems
CEO and FounderSales Management Innovations
DirectorHeraeus GmbH
Material Science and Physics
Assoc. Project ManagerApple, iPad Engineering Design Team
Metrology EngineerKLA-Tencor, VLSI Research Laboratory
Manufacturing EngineerDiamond Semiconductor Systems
Industrial Engineering and Business Management
ROTA HQ
ROTA Factory
Stanford
1. Our motivation
2. Our analysis of the market
3. Our decision to design
4. Our disruptive efforts
1. Our motivation
Scooter$1,000 - $6,000
SubsidizedNo Exercise
Super Heavy (Requires Lifts)High Failure Rate
Not Cool
Lightweight$2,000 - $8,000
SubsidizedPainful Exercise≤ 35 lbs
Medium Failure RateCool
Traditional$500 - $1,000
Subsidized (Leased)Exercise for Someone Else
HeavyLow Failure Rate
Not Cool
Hard to propel
Impossible to turn
Difficult to transfer and transport
Causes elbow, wrist and hand pain
Retails for $3,000 - $8,000
Rarely subsidized by government and insurers
Difficult to operate
Adds weight and width to chair
Not cool (the stigma of disability)
Causes repetitive strain injury (RSI)
Retails for $4,000 - $8,000
Rarely subsidized by government and insurers
Utility
He
alth
R TAM O B I L I T Y
R TAM O B I L I T Y
2. Our analysis of the market
Scores Rating
0 Not Available
1 Poor
2 Average
3 Good
4 Best
Usability and Effectiveness Factors ComparedUsability and Effectiveness Factors ComparedUsability and Effectiveness Factors Compared
CompanyCompany WijitWijit Enabling Tech.Enabling Tech. Rio Mobility Rio Mobility WillgoWillgo SRB Engineering SRB Engineering Nu-DriveNu-Drive Quantum Runner Quantum Runner Magic WheelsMagic Wheels RoTrikeRoTrike RoChairRoChair
Propulsion modePropulsion mode Push only 2 Push Only 2 Push-Pull 3 Push only 2 Push/Pull 4 Push only 2 Push/Pull 3 Push only 2 Push-Pull 4 Push-Pull 4
Power to weight increasePower to weight increase Average 2 Good 3 Average 2 Poor 1 Poor 1 Good 3 Poor 1 Average 2 Best 4 Best 4
PricePrice High $4.5k 1 < $1K? 4 High $5.5K? 1 High $5K 1 Very High 0 Low $.65K 4 Medium 2 High $5K 1 Good $3.5K 3 Good $2.5K 3
Mechanical advantageMechanical advantage 1.2:1 2 1.7:1 3 2:1 4 1:1 2 1.7:1 3 1.2:1 2 1.8:1 3 2:1 4 2:1 4 2:1 4
Optimized ergonomicsOptimized ergonomics Average 2 Average 2 Average 2 Average 2 Average 2 Average 2 Average 2 Average 2 Best 4 Best 4
Effective braking/parkingEffective braking/parking Average 2 Average 2 Good 3 Good 3 Good 3 Average 2 Good 3 Average 2 Best 4 Best 4
Increase in chair widthIncrease in chair width Poor 1 Poor 1 Good 3 Good 3 Good 4 Average 2 Good 3 Average 2 Best 4 Best 4
Telescopic LeversTelescopic Levers NA 0 NA 0 NA 0 NA 0 NA 0 NA 0 NA 0 NA 0 Best 4 Best 4
Shiftable gearingShiftable gearing NA 0 NA 0 Good 3 NA 0 Good 3 NA 0 NA 0 Good 3 Best 4 Best 4
Front-&-center propulsion & handlingFront-&-center propulsion & handling NA 0 No 0 NA 0 NA 0 NA 0 NA 0 NA 0 NA 0 Best 4 Best 4
One-arm propulsionOne-arm propulsion No 0 No 0 NA 0 NA 0 Best 4 NA 0 NA 0 NA 0 Best 4 Best 4
Total ScoreTotal Score 12 17 21 14 24 17 17 18 43 43
ROTA Con"dentialshown during lecture only
2.7M manual wheelchair users in the USWheelchair and scooter markets at $3.9B in 2009 are expected to grow to $7.9B by 2015
~10% compounded annual growth rate
Medicare to gain 7,000 new Baby Boomers per day in 2011
Wheelchairs are replaced every 3 to 5 years
ROTA domestic market TAM of >$600M
RoW market is 3X the domestic market
Source: AARP, WinterGreen Research, Susan Eustis, President, Cooper & Cooper, Trends and Issues in Wheeled Mobility Technologies, Department of Rehabilitation Science and Technology, University of Pittsburgh
ROTA Con"dentialshown during lecture only
Addressable Categories Unit Sales (2009) % Addressable Units Addressable Average MSRP TAM Dollars
Manual Wheelchairs
Lightweight 155,897 70% 109,128 $1,850 $201,886,615
Ultra-Lightweight 77,949 50% 38,975 $4,000 $155,898,000
Power Wheelchair
Power Assisted Pushrim 1,949 90% 1,754 $5,000 $8,770,500
Lightweight Indoor Use 19,487 10% 1,949 $3,000 $5,846,100
Indoor Use & Light Outdoor Use 38,974 20% 7,795 $4,000 $31,179,200
Active Indoor & Outdoor Use 38,974 20% 7,795 $5,000 $38,974,000
Electric Powered Scooter 136,410 50% 68,205 $2,000 $136,410,000
Institutional 68,205 25% 17,051 $3,000 $51,153,750
537,845 252,651 $630,118,165
Denotes categories where cash purchases are prevalent
ROTA Con"dentialshown during lecture only
Medicare40%
Medicaid13%
Private Insurance29%
Commercial/Institutional9%
Cash8%
Market data primarily sourced from: Cooper & Cooper, Trends and Issues in Wheeled Mobility Technologies, Department of Rehabilitation Science and Technology, University of Pittsburgh
ROTA Con"dentialshown during lecture only
DME applies reimbursement
Physician’s product
recommendation Customer
Physician’sexam
Notice of medical
justi"cation
Prescription DME"tting
Order form DME issuesRFQ to OEM Partial
Yes
No
DME ordersfrom OEM
All before ordering,
4-6 month total lead
time
Medicare40%
Medicaid13%
Private Insurance29%
ROTA Con"dentialshown during lecture only
DME applies reimbursement
Physician’s product
recommendation Customer
Physician’sexam
Notice of medical
justi"cation
Prescription DME"tting
Order form DME issuesRFQ to OEM Partial
Yes
No
DME ordersfrom OEM
DME"tting
Order form DME issuesRFQ to OEM
DME ordersfrom OEM
All before ordering,2-4 month total lead time
All before ordering,
4-6 month total lead
time
Private Insurance29%
Commercial/Institutional9%
Cash8%
ROTA Con"dentialshown during lecture only
DME applies reimbursement
Physician’s product
recommendation Customer
Physician’sexam
Notice of medical
justi"cation
Prescription DME"tting
Order form DME issuesRFQ to OEM Partial
Yes
No
DME ordersfrom OEM
DME"tting
Order form DME issuesRFQ to OEM
DME ordersfrom OEM
3-4 week delivery(only ROTA can do this)
All before ordering,2-4 month total lead time
All before ordering,
4-6 month total lead
time
Orderonline
Choose ship-to destination
Private Insurance29%
Commercial/Institutional9%
Cash8%
ROTA Con"dentialshown during lecture only
Cash
Institutions, Private InsuranceInstitutions, Private Insurance
Medicaid, MedicareMedicaid, Medicare
Distribution20%
COGS50%
Distribution50%
SG&A30%
COGS40%
COGS25%
Dist.10%
SG&A30%
SG&A15%
Pro!t10%
Pro!t10%
Pro!t10%
ROTA Con"dentialshown during lecture only
Cash8%
Phase 1
Direct sales
Online marketing, events, demos
Fastest growing sector due to:
Market data primarily sourced from: Cooper & Cooper, Trends and Issues in Wheeled Mobility Technologies, Department of Rehabilitation Science and Technology, University of Pittsburgh
population with discretionary income
desire for premium products
frustration with lengthy subsidy process
higher rates of subsidy denial
product choice and quality
ROTA Con"dentialshown during lecture only
Private Insurance29%
Commercial/Institutional9%
Phase 2
On-site clinics
Collaborative research
Medical bene!t documentation
Support for practitioner and patient
Market data primarily sourced from: Cooper & Cooper, Trends and Issues in Wheeled Mobility Technologies, Department of Rehabilitation Science and Technology, University of Pittsburgh
ROTA Con"dentialshown during lecture only
Medicare40%
Medicaid13%
Phase 3
HCPCS Coding
Dealer network support
Trade-shows
Market data primarily sourced from: Cooper & Cooper, Trends and Issues in Wheeled Mobility Technologies, Department of Rehabilitation Science and Technology, University of Pittsburgh
ROTA Con"dentialshown during lecture only
3. Our decision to design
“If you don’t have a process and the hardware you don’t have a business.”
Walter Benzing, Founder of Applied Materials
Great Product + Clinical Bene!t
Transferring
Going uphill
On the "at
Going downhill
Never designed to be self-propelled
Incredibly hard work
Minimal mechanical advantage
Harmful to user
RSI occasioned by pushrim propulsion and transfers
70% of wheelchair users report shoulder pain
65% of wheelchair users report impingement, tendinitis, rotator cuff tears
16% of wheelchair users report elbow, wrist, and hand pain
“signi!cantly improved biomechanical economy without increasing shoulder and elbow stresses.”
Department of Veterans Affairs, Journal of Rehabilitation Research & Development
Cardiovascular Health Is Essential
Provide Riders Individual Freedom
Solve Repetitive Strain Injury
Use Lever Propulsion
The Rowing Motion Is Most Efficient
Use Gearing
Make It Light & Compact
ROTA Con"dentialshown during lecture only
ROTA Con"dentialshown during lecture only
ROTA Con"dentialshown during lecture only
The most efficient and ergonomic vehicles for those who can’t walk.
RoChair & RoTrike
RoChair and RoTrike shown
First wheelchairs that are not harmful to users
Narrower than conventional wheelchairs
Walking or bicycling speed
Navigate indoors
Work for a whole lot of people
Look cool
RoChair shown
RoChair shown
RoChair shown
4. Our disruptive efforts
The Old Way The New Way• Pushrim propulsion mandates every chair be custom • Universal !t; because we drive from the wheel hubs
ζ”
η”
α”
β”
θ”
κ”
δºγ”
ε”
ιº
AdjustableRoChair shown
• Bike shops are ideally equipped to service RoChair and RoTrike
• Bike shops are full of good people
• Bike shops already have spare parts on their shelves
• Bike shops make good money servicing rides
• Bike shops have shown interest in accepting delivery, assembling, servicing, and selling RoChair and RoTrike
RoTrike shown
Key patent !led, 18 claims
In production w/ local manufacturer on favorable terms
Optimized sourcing and componentry
Shipping units late spring
Secured VA, Rehab. Center and University !eld studies New World Machining, San Jose, CA
US Department of Veterans Affairs, Rancho Los Amigos National Rehabilitation Center, Stanford University, University of Groningen, University at Buffalo, Georgia Institute of Technology New World Machining, San Jose, CA is a 40,000 sq.ft. facility providing ROTA assembly, inventory, and office space
Buy Online
100% charged with orderManufacturer gets 25% of downpayment covering component costs
Manufacturer holds finished goods inventory per ROTA rolling forecast and spare parts inventory
Product ships from manufacturer in 3-4 weeks
ROTA pays manufacturer balance
1
4
2
5
3
6
RoTrike shown
Ship-to Home
Ship-to Rehab Center
Ship-to Bicycle Shop
Buy OnlineShip via UPS20”x22”x40”, <50 lbs
RoTrike shown
“The Silicon Valley culture and Healthcare industry culture don’t match.”
Comment made at the Silicon Valley planning commission.
Durability Testing
FDA Certification
HCPCS Coding
www.rotamobility.com
Fully integrated power assist manual wheelchairs.
RoTrike & RoChairPA PA
Marcus Albonico, Stephen Hibbs, Kevin Ting