LadyBirds

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LadyBirds

  1. 1. MANTHAN TOPIC - BRAIN GAIN: PROMOTING RESEARCH AND INNOVATION Promoting Rural Innovation To bridge the gap between the Innovators and Industry Team Details: Symbiosis Institute of Media and Communication Indu Lekha I Neha Saxena I Priyanka Kamidi I Priyanka Mhatre I Radhika Bangia
  2. 2. PROBLEM STATEMENT "Even at the rural level, innovative technology exists. But it is not packaged attractively. India has a pool of innovative designers. The problem is they are expensive and out of reach of the individual innovator." CAUSES OF THE PROBLEM • Inadequate Govt. Support to the innovators. • Lack of finances for creating, producing en mass and marketing the products ECONOMIC SOCIAL LEGALPOLITICAL "Even at the rural level, innovative technology exists. But it is not packaged attractively. India has a pool of innovative designers. The problem is they are expensive and out of reach of the - Anil Gupta, founder of The HoneyB • Lack of knowledge about patenting and IPR •Low Acceptability of the product due to social restrictions. •Lack of social RecognitionSOCIAL LEGAL REASON FOR SELECTING THE TOPIC With 72.3 % of the country resides in Rural India. As urban India reaches saturation levels, semi India should be the ideal area of focus for one and all rural India has managed to grab recently , in spite of housing a majority of the country’s population. With various innovations like Mitticool, Cum Exercise Machine, LPG Operated Iron etc are being looked at as the future of this country. However, if one is to compare India with the other developing countries of the world i.e. the of the GDP on research and innovation her counterpart countries. We need an independent body to give the right kind of impetus to these innovators to fuel the economy. "Even at the rural level, innovative technology exists. But it is not packaged attractively. India has a pool of innovative designers. The problem is they are expensive and out of reach of the Anil Gupta, founder of The HoneyBee Network REASON FOR SELECTING THE TOPIC With 72.3 % of the country resides in Rural India. urban India reaches saturation levels, semi-urban and rural area of focus for one and all. However, managed to grab the attention it deserves only in spite of housing a majority of the country’s various innovations like Mitticool, Washing LPG Operated Iron etc rural innovators are being looked at as the future of this country. one is to compare India with the other developing countries of the world i.e. the BRIC nations, India’s spends 0.9% of the GDP on research and innovation significantly lower than We need an independent body to give the right kind of impetus to these innovators to fuel the economy.
  3. 3. PROPOSED SOLUTION - Creating a Market for these Innovations o Better information dissemination about innovations among communities o The communities that need these innovations the most would be able to access the benefits of these innovative solutions o The communities would also take the innovation a bit more seriously if they are informed that there is government backing and industry bigwigs funding the innovation. - Social and economical recognition to innovators o The biggest motivator for any innovator (Rural or Otherwise) is recognition in his or her own community. o Social Recognition for the innovator would also drive the community towards creating more innovative solutions to solve their problems instead of depending on external agencies to bring about the change. o Economic Help would create an impetus for him to use his creativity as a source of income. - Nod from the Opinion Leaders : o Attracting opinion leaders would speed up the acceptability of an innovation in a rural environment o Act as a pull effect for researchers and innovators. - Allowing investment from Industry Bigwigs to drive research and innovation o most rural efforts and innovations are value based and with an orientation to solve a problem at hand o Since these innovators come from these rural areas they are better equipped to understand the challenges faced in creating, marketing and making a new product acceptable to the community
  4. 4. IMPLEMENTATION: Objective of RACHNA NIF (National Innovation Foundation) lists 1, 81,000 ideas and innovations (1) in rural India and according to the Census report 72.2% (2) of the country is rural then how come these innovations don’t reach the people who need it the most. We wish to change this MERITS OF OUR IDEA Currently there are two separate ecosystems that are trying to cater to the rural markets. • There are NGOs that help the rural innovators to develop and sell their products • Various corporate who are pumping in a lot of money to create products suitable for their rural consumers. We intend to create an organisation that links these two ecosystems. We use the existing pool of innovations listed and compiled by various organisations such as NIF, Honeybee Network and Gyan to create CSR opportunities for various corporates of India. Such an initiative would increase the popularity of the corporate enterprises at the grassroots level
  5. 5. IMPLEMENTATION – Key Steps Involved INFORMATION DISSEMINATION •Providing neccesary information (process, patent, legal) to the rural folk •Being a body which facilitates exchange of information between the two ecosystems (Innovator and Corporate) •Helping the corporates identify the perfect innovation for a CSR strategy best suited to them MARKET IDENTIFICATION •Identifying apt markets (in India and overseas) for selling these innovative products •Creating a Marketing Strategy (Product, Price, Promotion, Place) that caters to the specific linguistic and cultural needs of the community Key Steps Involved MARKET IDENTIFICATION Identifying apt markets (in India and overseas) for selling these innovative products Creating a Marketing Strategy (Product, Price, Promotion, Place) that caters to the specific linguistic and cultural needs of the community FINANCING THE INNOVATOR •Help in creating a partnership between a Corporate and an Innovation ( For eg. Parachute Oil and Coconut Climber) •The corporate would provide seed funding to fine - tune the innovation BRING SCALABILITY •Mass production of the innovation - •Identify people from the same community who can speed up the production of the product •Identify a local manufacturer who can manufacture the innovation on a larger scale •Bringing the innovation to the masses by achieving economies of scale. •Marketing the product to the opinion leaders of the community
  6. 6. IMPLEMENTATION – KEY STAKEHOLDERS KEY DEPARTMENTS : Innovaton Management : Communicate and maintain relationships with the NGOs that are already helping rural innovators. We will use their database of innovations and innovators Rural Innovation Sales Force : Help the products manufactured by the innovators to be sold in the respective markets at village , block and district level. Corporate Managemenrt Team : Pitch a plethora of rural innovations to the corporates for the funding. Find the perfect match for the company. National Coodinators North Zone West Zone HR Dept. Legal Dept. Finance and Accounting Rachana Network Innovation Management team Marketing Team Scouting Team Partner Relationship One person per NGO Rural Innovation Sales Team District Officer Block Level Sales Team Village level sales force Corporate Management Team Business Development Officers Strategists MARKETING Consultants South Zone East Zone
  7. 7. RESOURCE POOL – MONETARY FUNDS & INNOVATIONS Corporate Funding India’s corporate taxation slabs are among the highest in the world at approximately 34.49% as compared to a global average of 24.09%. Also the lower house has recently passed a new Companies Bill which makes it compulsory for companies to dedicate at least 2% of their annual profits CSR activities. If the following Bill becomes a law we can easily use this opportunity to convince companies to fund rural innovators Government Funds The Small Industries Development Bank of India (SIDBI) has also formed the SIDBI Foundation for Risk Capital to develop and provide appropriate risk capital products for Micro, Small and Medium Enterprises (MSMEs) in different industry segments. Some of the products introduced are equity and equity-like instruments and mezzanine instruments like optionally-convertible debt and subordinate debt for MSMEs. With a corpus size of Rs 2,000 crore, the fund will invest a minimum of Rs 25 lakh and a maximum of Rs 10 crore in the form of term loans or assistance. RESOURCE POOL FOR INNOVATIONS: We will use the database of the following NGOS
  8. 8. COSTING FOR THE ORGANISATION Organizational Cost Top Management [4,00,000 Rs p.a. X 2 = 8,00,000 Rs] National Coordinators [2,50,000 Rs p.a. X 2 = 5,00,000Rs] HR/Legal/Finanace/ Accounting Department [1,00,000 Rs p.a. X 4 Zones X 7 = 28,00,000] Rachana Network [1,50,000 Rs p.a X 4 Zones X 8 = 48,00,000Rs] Trainees [5,000 p.m X 12 X 4 Zones X 12 = 28,80,000 Rs] Total = Rs. 1,17,80,000 COSTING FOR THE ORGANISATION Fixed Cost Furniture, Computer etc [2,00,000 Rs X 4 = 8,00,000 Rs] Rent* [10,000p.m X 12 X 4 Zones = 4,80,000 Rs] Total = Rs 12,80,000 Logistical Cost Operational[1,00,000 p.m X 12 X 4 Zones = 12,00,000 Rs] Travel and Conveyance [30,000 Rs p.m X 12 X 4= 14,00,000Rs] Total = Rs. 26,00,000 Total Funds Required: Rs. 1, 56, and 60,000 *Office would be located in a place which is strategically located between Rural and emerging areas like Pune Logistical Cost Operational[1,00,000 p.m X 12 X 4 Zones = 12,00,000 Rs] Travel and Conveyance [30,000 Rs p.m X 12 X 4= 14,00,000Rs] Total = Rs. 26,00,000 1, 56, and 60,000
  9. 9. IMPACT Corporate level • A boost to their corporate citizenship and CSR activities • Corporates gain the trust of the rural dwellers which in turn assist the entry of these companies into rural markets • Gaining great PR buzz as well as "positive talkability" among rural and urban consumers Government Level • Boost to employment at all levels i.e. corporates, government, graduation as well as rural level • Promises equitable distribution of opportunities Government Level Boost to employment at all levels i.e. government, graduation as well as Promises equitable distribution of opportunities Rural Level • Creating upliftment opportunites at the personal as well as community level • Immense push to rural infrastructure development Overall level • Creating employment opportunities • Impetus to a favourable mindset towards research and innovation which would help the country in the longer run Overall level Creating employment opportunities Impetus to a favourable mindset towards research and innovation which would help the country in the longer run
  10. 10. Social • Innovative minds and mindsets not well society • The need of end user being actively involved with the innovator and innovation Economic al •Innovations may not receive appropriate funding by corporates Political • Instability in the political scenario which may hamper the business model • Possibility of beauracracy and political lobbying Legal • Possibility of infringement of patents by corporate lobbying Technol ogical • Possibility of a technological innovation which may not suit other parts of the country Environ mental • Unpredictability of business environment and cycles which may lead to lesser investments in CSR • Unstable economic scenario due to globalisation CHALLENGES & MITIGATION Innovative minds and mindsets not well-received by The need of end user being actively involved with the nnovations may not receive appropriate funding by Instability in the political scenario which may hamper the Possibility of beauracracy and political lobbying Social • the model would give impetus to the innovator in the form of social and economical recognition by the govt. and his own local community • assistance by corporates would be like incubators for these research ideas Economic al • Innovations would be studied by marketing consultants and graduates and only then would they be pitched to corporates so that they go along with the company's core value and vision Political • Since the model assists development at each level of the society, political parties would use to it achieve their ultimate goal of equitable distribution of wealth and opportunities Possibility of infringement of patents by corporate lobbying Possibility of a technological innovation which may not suit Unpredictability of business environment and cycles which may lead to lesser investments in CSR Unstable economic scenario due to globalisation Legal • Inclusion of a legal team in the body in order to safeguard the interests of the innovator Technolo gical • Corporate's R&D Teams would have better understanding of the Indian markets. They would be able to work in tandem with the marketing consultants of Rachna Environ mental • Government support may help lessening of impact of globalisation the model would give impetus to the innovator in the form of social and economical recognition by the govt. and his own local community assistance by corporates would be like incubators for these research ideas Innovations would be studied by marketing consultants and graduates and only then would they be pitched to corporates so that they go along with the company's core value and vision Since the model assists development at each level of the society, political parties would use to it achieve their ultimate goal of equitable distribution of wealth and opportunities Inclusion of a legal team in the body in order to safeguard the interests of the innovator Corporate's R&D Teams would have better understanding of the Indian markets. They would be able to work in tandem with the marketing consultants Government support may help lessening of impact of
  11. 11. REFERENCES • National Innovation Foundation (NIF), India from http://www.nif.org.in/know_us • Census of India from http://censusindia.gov.in/hindi/rural.htm • Systems of Innovations for Inclusive Development (SIID) from http://www.siid.org.in/ • Jeevika from http://brlp.in/ • World Bank Data from http://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS • FICCI – MSME – Summit 2012 Knowledge Paper New Report • Accenture Research Report – Masters of Rural Markets: The hallmark of High Performance http://reutersmarketlight.com/RML_OLDSITE/images/Accenture%20Masters%20of%20Rural%20Market%20- %20the%20Hallmarks%20of%20High%20Performance.pdf • Navi Radjou (2009, April 8). India’s Rural Innovation: Can they Scale? Harvard Business Review from http://blogs.hbr.org/radjou/2009/04/indias-rural-innovations.html • Aneel Karnani (2013, May 20). Mandatory CSR in India: A Bad Proposal. Standard Social Innovation, from http://www.ssireview.org/blog/entry/mandatory_csr_in_india_a_bad_proposal • Kamya Jaiswal (2011, March 27). Indian Innovations: Converting new ideas into successful businesses. The Economic Times, from http://articles.economictimes.indiatimes.com/2011-03-27/news/29194799_1_innovations-capita-income-lithium-ion-batteries • Diffusion of Rural Innovations: Some Analytical Issues and the Case of Wood-burning Stoves by Bina Agarwal (Institute of Economic Growth, University of Delhi, India)
  12. 12. • ET Bureau (2011, Feb 4). Budding entrepreneurs have a variety of funding options. The Economic Times, from http://articles.economictimes.indiatimes.com/2011-02-04/news/28426472_1_incubation-centre-funding-risk-capital • Sanjay Dawar (2013, May 2) Understanding Indian Rural Markets : The Solution. The Indian Express from http://www.indianexpress.com/assembly-elections/news/understanding-indian-rural-markets-the-solution/1110564/0/ • SocialStory 2013 In Review from http://social.yourstory.in/2012/12/part-ii-socialstory-2012-in-review/

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