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Week 5India

Embrace Infant Warmer

Field research that turned a cheaper incubator into a new product for rural villages.

Sector
Medical devices (social venture)
Source
Week 5 tutorial resource (Case 3.2, Barringer and Ireland, 2018)
Open the case fileRent the Runway and the Infant Warmer · PDF · 6 pages · 0.7 MB

The case in brief

Rahul Panicker, Jane Chen and Linus Liang took Stanford’s Design for Extreme Affordability course and were asked to design a low-cost infant incubator for developing countries. Hypothermia is the biggest cause of death for premature babies, and hospital incubators cost up to $20,000, need constant electricity and are hard to operate.

Instead of simply stripping cost from incubators, Liang visited a hospital in Nepal and found many incubators empty: about 80 percent of premature babies in the developing world are born in rural villages. The team designed a portable warmer like a tiny sleeping bag, with a pouch of phase-change material that keeps a baby warm for up to six hours after 30 minutes of electricity, and named it Embrace.

Field testing in India changed the design. Mothers set the temperature lower than instructed because they saw Western medicine as very powerful and cut back to be safe, so the ideal temperature was preprogrammed with an OK/Not OK switch; villagers wanted pricing options such as renting; mothers-in-law were often the decision makers. After more than 60 iterations and clinical trials, Embrace launched in April 2011, with manufacturing in Bangalore, distribution partners such as GE Healthcare and local NGOs, a non-profit arm and a for-profit arm, Embrace Innovations. Reliance on Indian government sales led to Little Lotus, a US retail line launched in 2015.

Key facts

As stated in the source.
Launch
April 2011, after clinical trials
Design iterations
More than 60
Structure
Non-profit arm (donations and education) and for-profit Embrace Innovations (sales to governments and private clinics)
Impact (end of 2016)
Helped save more than 150,000 babies across 10 countries
Goal
Impact the lives of 1 million babies

Analysis through module theory

Industry/target market feasibility

The team redefined the target market from hospitals to rural villages. The need is vast, but customers have little money, and villagers asked for pricing options such as renting.

Product/service feasibility

Rapid prototyping in the field and involving village mothers in every design detail revealed needs the team would never have found in California.

Financial feasibility

Relying mainly on government contracts was judged unsustainable. Little Lotus adds retail revenue and funds warmers through a one-for-one style model, strengthening overall financial attractiveness.

Discussion questions

Answer from the facts first, then name the theory you are using.
  1. 1.How attractive is Embrace’s target market?
  2. 2.What primary research did the founders do, and what did it change?
  3. 3.What would you examine in a financial feasibility analysis of Embrace?

Takeaways

  • Go where the customer is; the most important insights came from the field.
  • Feasibility analysis can reveal that the obvious product is the wrong one.
  • A social venture still needs a sustainable revenue model.