MedTrack’s goal is to provide hospitals with
RFID systems that will help them eliminate
inventory-related errors and save more lives
through more effective and reliable tracking
systems. To exploit this opportunity,
MedTrack will develop and deliver a com-
plete solution to hospitals that will consist of
the RFID system and necessary software.
The system will include the hardware and
the software necessary to track any equip-
ment, supply, or drug in a hospital. The
offering will consist of (a) an RFID tag to
be attached to supplies or equipment that
need to be tracked, (b) RFID receivers that
detect signals from devices, (c) a computer
server for hosting the data base and applica-
tion, (d) several client computers for users,
(e) application platform/software, and (f)
training, maintenance, and support.
MedTrack also aims to partner with key
medical equipment suppliers and drug dis-
tributors to deliver RFID-tagged supplies to
the hospitals.
Resources
Financial.The four founding partners will
provide some of the initial equity, with the
majority provided by a participative venture
capitalist. Growth projections indicate that
additional financing will need to be secured
by the end of the first year of operation.
These will likely be borrowed funds rather
than additional equity.
Human. The founding team has several
years of experience in key entrepreneurial
functions of the business such as marketing,
sales, finance, operations, and IT. Initially,
the primary gaps to fill will be IT (possibly
the director of IT) and human resources.
Ownership stakes will be offered to a few
key individuals to round out the leadership
team.
Technological.The core business will be to
develop a high-tech application. The found-
ing partners bring several years of experience
as users and marketers of high-tech applica-
tions. MedTrack’s greatest resource is the
knowledge of its people and partners in
RFID technology and software develop-
ment. Gaps in development of technology
will be quickly filled with dynamic individu-
als through part ownership in the venture.
This strategy will ensure that the systems are
unique and successful.Organizational. MedTrack will be a flat
organization driven by innovation, speed,
and customer satisfaction. The entire organi-
zation will be fully engaged in delivering
quality products and services on time and
within budget. The founding partners have
several years of corporate experience in
Fortune 500 companies; this experience will
be readily transferable to the organization.
The team has strong insights, vision, and the
drive to take this business to the next level
and help hospitals save more lives.OBJECTIVESShort Term
MedTrack will develop and sell complete
RFID systems to hospitals, which will pro-
vide the real-time location of all equipment
and supplies identified in the system. The
systems will be sold based on the premise
that they will save more lives by being able to
quickly locate medical equipment and ensure
the accurate dispensing and administering of
medication. However, the final decision to
purchase will likely be based on the fact that
the reduction in losses (due to the real-time
location data) will more than offset the cost
of the system. The first system’s installation
should be completed 12 months from the
time of inception of MedTrack.
All hardware will be purchased with an
emphasis on component standardization. The
software will be developed and licensed by
MedTrack. The initial hospital launch partner
will be considered part of the R&D effort and
will receive significant cost savings. This strat-
egy should speed the completion of the first
project and can be used in part in follow-on
sales and marketing efforts.424 ENTREPRENEURSHIP CASE