Does modum.io already have a product and with a well-established business case?
modum.io has a working temperature logger prototype, which was used to track shipments in several pilot projects within Europe and to the Middle East. modum.io is currently launching the first generation of its own, proprietary sensor device based on findings from each pilot. Our go-to-market strategy is regulatory driven, based on new requirements placed on the pharma industry.We are already working with industry partners and clients to deliver the modum system.
How was modum.io’s first business case developed
The European Commission has recently released tightened regulatory requirements for the transport of medicinal products for human use. modum.io’s first service offers an efficient system to comply with these regulatory requirements.
What are these regulatory changes?
Chapter nine of the Good Distribution Practice regulation (GDP 2013/C 343/01) now requires proof that shipped medicinal products have not been exposed to conditions (particularly temperature) that may have compromised their quality.
How does modum.io solve improve its clients’ ability to be compliant with GDP regulations?
To date, pharmaceutical companies achieve compliance with regulatory requirements by using expensive, temperature-stabilized trucks and containers from third-party logistics providers (3PLs). modum.io offers a more efficient supply-chain solution, which enables companies to prove compliance with GDP regulations by using blockchain and Internet-of-Things (IoT) technology.
What is the business potential of the modum solution?
By using the modum system, costs per shipment can be reduced by up to 60%. With respect to the 200 million shipments of pharmaceutical products in the EU, a widespread adoption of the modum system has the potential to reduce industry-wide expenses of approximately 3 billion EUR annually.
What is modum.io’s go-to market strategy?
Currently, the modum system is being integrated into the system of the leading last-mile logistics service provider in Switzerland. modum.io is planning to finalize this integration in Q4/2017. Upon successful completion,official market entry will begin in Q1/2018. Additionally, modum.io is in negotiations with significant customers from within the pharma distribution vertical in the UK, France, Germany, Turkey, and Vietnam.
What is modum.io’s vision for growing its platform for expanded service delivery?
modum.io, with its system and first business case, eagerly anticipates horizontal and vertical growth by evolving the developed system. Low-cost and low-power IoT sensors have become commonplace for: Temperature Humidity/moisture Light/machine vision Acceleration/tilt Acoustics/sound/vibration Position/proximity Motion/velocity/displacement Chemical/gas Flow (Liquid) Electric/magnetic Force/load/torque/strain/pressure Modum.io foresees adding sensor devices with these capabilities to build a platform for IoT monitoring in supply chain across a variety of sectors.
Into which sectors could the modum system be expanded?
With the experience gained from the high standards and low-cost requirements set by the pharma industry, the modum system will be well positioned to be deployed in other sectors. modum.io has been approached by leading companies from the following sectors, each of which have overlapping needs with the solutions laid out in our first use case:
- Healthcare modum.io has been approached by Healthcare institutions to improve their processes (internal and multi-stakeholder) using IoT and blockchain technology.
- Chemical industry Customers from the chemical industry have similar needs to pharma customers, requiring compliance with similar regulations. Data integrity is an issue, causing customers from the chemical industry to perform more extensive post-delivery checks on their chemicals than they would deem necessary.
- Heavy machinery Machine building companies need accountability during transport of their high-value components, requiring traceable data for acceleration (shock) and humidity (storage and transport conditions).
- Automotive, Aerospace and Aviation The automotive, aerospace, and aviation industry needs efficient and auditable systems to prove the authenticity of every single component. Constant performance checks of essential parts serve to reduce liabilities in case of accidents.
- Food sector Pharma standards and regulations for food safety are closely related, in the United States they are supervised by the same government agency, the FDA. Customers from the food sector are additionally looking into improving their processes, providing traceable data in order to market the origin and the quality of their products.
What are the USP/functions of the modum system?
Before shipment occurs, the modum sensor device ID, shipment ID, and alarm criteria are fixed within a shipment-specific smart contract. Upon receipt, this smart contract will allow the receiver to check that regulations have been met. Due to the nature of a smart contract in the blockchain, the evaluation criteria for meeting regulations cannot be changed retroactively. During the shipment, the change of environmental conditions (i.e. temperature, humidity, movement, etc.), is monitored and the data is stored in the internal flash memory of the sensor device. Using BLE (Bluetooth Low Energy), the shipment does not need to be opened to verify the shipment has complied with the environmental parameters set. At each change of ownership, data authenticity is first checked by the smart contract before it is evaluating the data. The results of the evaluation are then stored, immutably, as proof-of-existence in a blockchain.
Do customers need to install additional hardware?
No, customers do not need to install additional hardware to use the system, downloading our mobile application is sufficient. The modum system is also compatible with every other BLE device.
How does modum.io generate revenue?
modum.io will offer its solution in a “pay per shipment” model to pharma producers and wholesaler. During modum.io’s extensive proof-of-concept phase, pilot projects with several customers determined that the modum solution delivered the highest value as a service in last-mile logistics of an overall pharma supply chain. In the EU, more than 200 million of these last-mile shipments occur each year.
Does modum.io have any strategic Partnerships?
Yes, modum.io has several partnerships. We are working with the market leader in parcel services in Switzerland, the owner of Europe’s leading mail order pharmacy, two leading pharma wholesaler and the University of Zurich and the University of St. Gallen.
What are MOD Modum tokens?
The modum token (MOD) is an ERC-20 compatible token distributed on the Ethereum blockchain pursuant to a related ERC-20 smart contract
What can MODs be used for?
The modum token is a token with voting rights and profit share rights.
How does the profit sharing process work?
The profit share smart contract is open source. A payment equivalent to the part of the profit generated by modum.io AG which is used for dividend payments as proposed by the board of modum and subsequently enacted by the shareholders will be forwarded to all MOD Tokenholders. The profit fiat amount is converted to Ether and sent to the modum smart contract. The modum smart contract evaluates the current holdings and distributes the profits to token holder in Ether. Tokens that are locked for the shareholders of modum.io do not come with profit participation rights for the entire duration of the lock-up.
How does the voting process function?
The smart contract is open source. Every MOD token in circulation is entitled to one vote. Token holders will vote to decide whether in their opinion the modum.io team has reached the predefined milestones and thus the locked MOD tokens shall be released. Locked tokens for modum.io do not come with voting rights for the entire duration of the lock-up.
When does modum.io intend to pay profits?
modum.io is not legally permitted to forecast profits. However, our business plan foresees a break-even point in 2018.
Why are 9.9 million MOD tokens being reserved for modum.io?
modum.io wants to assure every token holder that the team is incentivized to further advance the modum system. The locked MOD tokens will stay locked until a simple majority of votes decides if milestones were achieved or not. Detailed information regarding the voting principle and profit share process can be found in the modum whitepaper.
