Online course module 1 20130911 endeva

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Module 1: Introduction to Inclusive Business Innovation
BoP Learning Lab Germany – Endeva
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Inclusive Business Executive Online
Course
Christina Gradl
BoP Learning Lab Germany
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Module 1: Introduction to Inclusive Business
Innovation

1
1
Introduction to the course
Introduction to inclusive business
Allianz: Innovating around microinsurance in India
Homework and next session
Agenda

2
2
Provide an overview of relevant themes and
literature
Give practical advice based on cutting-edge
research
Introduce BoP experts
Learn from leading companies
Support the development of an own business
idea
Objectives and approaches
Background readings
Online teaching modules
Instructors from BoP Learning Labs
and WBCSD
Company experts
Homework and feedback

3
3Expectations: What skills and expertise? 3
Feedback after the
course!

4
4
Structure of the course
1. Introduction to inclusive business
2. Market understanding and marketing
3. Last mile distribution
4. Financing
5. Partnering
6. Results measurement
6 modules on critical topics
1. Pre-reading
2. Online session
(Wednesdays @ 3pm CET)
3. Post-session work
3 elements per module

5
5Expectations: areas of interest
Feedback after the
course!

6
6
Interaction during the online course module
Chat Polls Request for input
• You can always share
comments or questions via
chat
• The facilitator will take note
of questions and raise them
to the presenter or respond
to them in the chat
• We will gather feedback from
you in quick polls from time
to time
• Just select „agree“ or
„disagree“ from the status
menue
• We may ask individual
participants to share their
experience at specific points.
• You‘ll have to unmute your
speakers to talk.
Please don‘t
use the
webcam!

7
7
Participants and coaches
Ugo Pica-Ciamarra
FAO
Italy
David Becker
E.on
Germany
Erika Gomez
The Coca-Cola
Company
USA
Stefan Koch
Bayer
Germany
Nicolas Marang
L‘Oreal
France
Hanna-Riitta Kurittu
Niras
Finland
Nicolas
Chevrollier, BoP
Inc.
Nicolas
Chevrollier, BoP
Inc.
Filippo Veglio,
WBCSD
Fernando
Casado,
GlobalCAD
Christina Gradl,
Endeva
Christina Gradl,
Endeva
Your coach!
LinkedIn Group:
Succeeding at the
Base of the
Pyramid
Henrik Mortensen
Arla Foods
Denmark
Sara Ballan, DI

8
8Q & A
???

9
9
Introduction to inclusive business
Allianz: Innovating around microinsurance in India
Agenda

10
1010
Background Readings Module 1
BoP Learning Lab Germany –Endeva

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11Starting point: A change in perspective
... from patients ... to agents ... with unused potential
People in poverty look for and
offer opportunities to participate
in value chains as
• consumers
• producers
• employees
• entrepreneurs

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12Creating value for all
Value for business
• Winning new customers
• Expanding the workforce
• Strengthening supply and delivery
chains
• Creating innovations
Value for people living in poverty
• Increasing incomes
• Meeting needs
• Increasing productivity
Definition
Inclusive business models include the poor on the demand side as clients and customers,
and on the supply side as employees, producers and business owners at various points
in the value chain.
They build bridges between business and the poor for mutual benefit.
Source: UNDP (2008) Creating Value for All

13
13Mixed business cases required
Cost
Profit
Mainstream
Investment
Cost
Added
Value
Inclusive
Business
• Profits
• Access to new markets
• New innovation processes
• License to operate
• Dialogue with governments
• Brand building
• Employee recruiting, retention
and motivation
• Training and leadership
development
Source: Stefan Koch
Is this true for your
own business
idea?

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14
14
One approach – many names
Inclusive Business
Social Business
Producers Consumers
PrivateSectorPublicSector
Usedmorebypeoplefromthe:
Stresses the inclusion of poor people as:
Base of the
Pyramid /
Bottom of the
Pyramid /
BOP
Opportunities
for the Majority
Pro-poor
Value Chain
Development
Making markets work for the
Poor /M4P
Business Linkages
Full Economic Citizenship
Responsible Supply
Chain Management
Source:Endeva(2010)InclusiveBusinessGuide

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15A global opportunity
Global Income Pyramid Population growth
Source: Endeva (2010) Inclusive Business Guide

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16A US$5 trillion market
Source: WRI/IFC (2007) The Next 4 Billion
BoP Market by segment ... and by sector

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17Massive value creation opportunities
No access Poverty penalty
• No sanitation: 2,6 bln people
• No electricity: 1,6 bln people
• No internet: 5,4 bln people
• Higher cost: e.g., electricity in rural Bangladesh
costs 1.60EUR/kwh
• More effort: e.g. avg 2h/day to fetch water in
communities South Africa
• Poor quality: e.g., doctors in rural areas are only
available half the time in India
Value creation opportunity through new
business models

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18Catering to low-income consumers across sectors
Construction
Cemex Patrimonio
hoy
Insurance
Allianz micro
insurance
Health care
CFW Health Stores
pharmacies
Energy
Solar home
systems

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19
Buying from low-income suppliers
Agriculture
Usually, low-income
people also get
involved as
employees and
entrepreneurs.
Manufacturing / Crafts Tourism Market data
Natura cosmetics
Ekos line
Hathay Bunano
handcrafted toys
Community-based
tourism
Market research via
cell phones

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20Challenges stand in the way
Market
information
Regulatory
environ-
ment
Physical
infra-
structure
Knowledge
and skills
Access to
financial
services
• Little granular data about low-income markets
• Few market research and consulting services
• Necessary regulation is missing
• Red tape, administrative burden, corruption
• Roads are poor, few logistics services and
distribution network
• Energy, water and ICT networks are poor
• Limited training and education of the target group
• Limited access to information
• Credit, insurance, and banking are mostly
unavailable
• People live in a cash economy
Source:UNDP(2008)CreatingValueforAll–StrategiesforDoingBusinesswiththePoor
Which of these
constraits are
most relevant for
you?

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21Innovative business models are required
Market
information
Regulatory
environ-
ment
Physical
infra-
structure
Knowledge
and skills
Access to
financial
services
Adapt
products &
processes
Mobile
solutions
Invest in
removing
constraints
Train and
educate
Leverage
strengths of
the poor
Community
members
as
informants
Combine
resources
&
capabilities
Collaborate
with MFIs
Engage in
policy
dialogue
Lobby for
improved
regulation
Solutions
Constraints
Source:UNDP(2008)CreatingValueforAll–StrategiesforDoingBusinesswiththePoor

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22Q & A
???

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23
Introduction to Inclusive business
Allianz: Innovating around Microinsurance in India
Agenda

24
24Michael Anthony, Allianz Re
Michael Anthony is a business development expert in
emerging markets and was instrumental in building the almost
20-million people microinsurance portfolio of Allianz Group in
several markets in Africa and Asia.
He now works with Allianz Reinsurance in Zurich to develop
crop insurance markets in developing countries and is being
trained as an agricultural reinsurance underwriter. One of his
assignments is the project leadership of RIICE, a public-
private partnership to use remote sensing technology in the
development of crop insurance.
Questions
•Which difficulties did you encounter when entering the low-
income market in India?
•Which role did CARE International play in developing your
microinsurance business model?
•How did you manage to integrate the resulting business
model into Bajaj-Allianz’ mainstream business?
?
??

25
25
Introduction to Inclusive business
Allianz: Innovating around Microinsurance in India
Agenda

26
26Homework: Approach
Develop your own idea!
• Start from an inclusive business
opportunity you would like to develop
• Over the 6 modules of the course, you will
complete a high-level business plan for
your idea
• After each step, you will receive feedback
from your coach
• In the end, you will have a concrete
business model and action plan.
Output 1: Action Plan
Output 2: Business model canvas

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2727Questions
BoP Learning Lab Germany –Endeva
1) How do
you aim to
create value
for low-
income
communities?
2) Who are
your target
customers?
3) What are
benefits for your
own company from
the business?
4) Which
actions are
needed to
clarify these
questions?

28
28Q & A
???

29
29Next session: Market understanding and marketing
Online module:
Wednesday
Sep 25
3 pm CET
http://www.endeva.org/applying/current_projects/building_electricity_kiosks_in_madagascar/

Online course module 1 20130911 endeva

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