How solving a Personal Problem Can Trigger the Recognition of a Promising Business Opportunity

1. How solving a Personal Problem Can Trigger the Recognition of a Promising Business Opportunity Case 2.2 Tsatsral Dorjsuren Amarzaya Nasanjargal Louis Bohan Jesslyn Goh

2. Many entrepreneurs create business opportunities in response to personal problems they have. • Financial issues • Recreational problems • Family problems • family problems are urgent • need a quick solution • useful to other families • a feasible business idea. Introduction

3. FLAVORx is a health care company devoted to helping people and pets take their medicine. • It was founded in 1994 by Kenny Kramm, and now it has 42 FDA-approved flavorings for both over-the-counter and prescription medications • And it is available in over 35,000 pharmacies worldwide. Introduction of FLAVORx

4. In 1992, Kenny Kramm’s second daughter, Hadley was born premature. • As an infant, she developed a medical disorder and she needed to take awful tasting medicine. Every time she took the medicine, Hadley could not keep it down, and her condition worsened. FLAVORx: the founder’s backstory

5. Hadley, Kenny and his father (who worked as a pharmacist) started experimenting with concentrated flavors that could be mixed with Hadley’s medicine to hide its bitter taste. • Finally they produced banana flavor concentrate that they were able to safely mix with the medicine. In home R&D of FLAVORx?

6. Hadley started taking flavored medicine without any problems, and her condition stabilized. • Through solving his daughter’s problem, Krammcreated a business idea which can help other people who cannot stomach bitter tasting medicine. • He then started his business by partnering with one of the largest flavoring companies in the U.S. FLAVORx: a solution and business idea

7. Eric & Sharon Langshur were in a difficult situation • Matthew • Born with heart defect • Needed a series of surgeries • Langshurs found a way to keep friends and families up to date on Matthew’s progress Introduction of CarePages

8. Sharon’s brother created it • It resembled a modern day blog • It also allowed people to respond and give words of support • By the time of Matthew’s last surgery, the site was receiving several thousand unique hits a day The CarePages Website

9. Eric saw it as a business idea • In 2000, CarePages was born • It was marketed to hospitals, which could make it available to patients & family members • Hospitals could also promote the service as well as their brand name. • Other benefits were to improve patient satisfaction and make families more at ease because of the support they were receiving through their CarePages community. The Website (cont.)

10. Allow updates and replies, post a photo gallery, and view the “About Patient” section, which provides the details of the patient • A running tally shows how many times a site has been accessed and how many messages have been left • Website visitors can “Invite Others” • Even aperson who doesn’t know the patient can visit the page and offer support CarePages Benefits

11. The pages are very touching, as parents share updates about a child who is facing surgery or treatment, or a serious medical condition • Families, Friends, and people the patients don’t even know post words of encouragement and support • The “CareCompliment” section • Allows patients, families, and others to leave compliments for nurses, doctors, and hospital staff • This aspect of CarePages is very popular with hospital personnel CarePages

12. Over 700 health care facilities are CarePages clients, and offer the service to patients • No advertising in CarePages page • Health care facilities pay CarePages and offer it to patients for free • Health care facilities benefits through improving customer’s satisfaction • Patients who use CarePages are more emotionally healthy during their stay in hospital, because of the support they receive through their CarePages network CarePages

13. In early 2007, CarePages was acquired by RevolutionHealth • CarePages’ strategy and mission are not expected to change • Now, CarePages generates 30 million page views per month CarePages

14. In This Chapter, an opportunity is defined as being (1) attractive, (2) durable, (3) timely, and (4) anchored in a product or service that creates value for its buyer or end user. To what extent do FLAVORx and CarePages meet each of these tests of an opportunity? Question 1 Question and Answer

15. FLAVORx CarePages • Attractive; helps founder’s child • Durable; long-term demand not based on a trend • Timely; solution to “icky” tasting medicine is urgent • Consumers need better tasting medicine • Attractive; helps founder’s friends show they care • Durable; satisfies human need to connect • Timely; hospitals using CMS can add CarePages to improve PR • Value in connectivity and social capital Answer 1: Test of opportunity

16. Question 2 Why do you think the idea of FLAVORx wasn’t developed by a large pharmaceutical company long before Kenny Kramm came along, and the idea for CarePages wasn’t developed by a hospital long before Eric Langshur came up with the idea?

17. Pharmaceutical companies don’t have children that won’t swallow their meds • Laws in the US require meds to treat or cure illness, but not to taste good • The average time it takes for a new drug to pass R&D, and be certified by US Food and Drug Admin. (FDA) is 12 years. • Only 1 in 5,000 drugs invented survives R&D testing and makes it to market • Good taste is not a priority Answer 2 FLAVORx

18. Answer 2 CarePages • The hospital priority is patient satisfaction, treating illness and saving lives, not social networking • Doctors and nurses are worried about giving correct patient care, and avoiding mal-practice lawsuits • Some hospitals only recently installed information management systems (EES,CMS, EMS), so managing a social networking site is troublesome.

19. Question 3 Why do you think CarePages markets its product to hospitals rather than directly to consumers, like MySpace and Facebook do?

20. He made this carepagebecause he felt that every patient's family needs emotional support • Instead of clients visiting the hospital's web page they choose the hospital based on the past patient’s satisfaction and experience Answer 3

21. Generating this carepage provides him with a profit opportunity to introduce his hospital through this carepage and attract future clients.

22. Question 4 What similarities do you see between FLAVORx and CarePages? What does each company teach you about the opportunity recognition process?

23. Answer 4 • Both were faced with difficult situations • Both found creative solutions • Finally, both their ideas turned into businesses • From both situations, I have learned that any new idea can become a business idea. • But the issue is how to make it work and how to turn it into a real business.

24. Application Questions Question 5 How could FLAVORx & CarePages effectively use focus groups to Strengthen their existing products & solicit suggestions for related product ideas?

25. First, the two companies can collect service comments from the patients, patient's family, friends, relatives and all staff. • Second, the focus group can discuss these patient comments and suggestions. • Thirdly, the hospital can implement a new process • Finally, hopefully, the next round of patient service comments will show improvement. Answer 5

26. What other situations that people are in might make sense to set up a Web site or blog that allows a person to provide frequent updates and receive notes of encouragement and support from friends. Question 6

27. Answer 6 • What’s new • Facebook, MySpace, blogger • Personal health and fitness site • Endomondo.com • Club or sport team event site • Sportlobster.com • A website to organize team dieting, to share exercise and nutrition goals • Socialdieters.com • Book club site • Goodreads.com

28. Problems = $ • What’s your problem? • Solve it! • Sell the solution. • Be rich.

29. The End