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Development solutions are becoming increasingly cross-sectoral and are no longer only the preserve of development “experts” - practitioners in the CSI space can be more innovative about where they …

Development solutions are becoming increasingly cross-sectoral and are no longer only the preserve of development “experts” - practitioners in the CSI space can be more innovative about where they look for solutions and who they partner with. Dr Francois Bonnici, Head of the Bertha Institute for Social Innovation and Entrepreneurship at the UCT GSB, looks at social innovations in form, finance and function.

Watch extracts from Dr Francois Bonnici's presentation on http://www.youtube.com/user/TrialogueSA.

Published in: Business, Technology

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  • 1. ?
  • 2. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PHow  does  business,  with  its  comparatively  small  budget,  contribute  to  SED  and  leverage  government  resources  and  relationships  effectively?  R  615.7bn  gov.  budget  R  6.9bn    CSI  (1.1%)    
  • 3. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P
  • 4. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P
  • 5. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PSOCIAL IMPACT BONDS / PAY FOR SUCCESS CONTRACTSSocial  Finance  UK:    Towards  A  New  Social  Economy  2012  
  • 6. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P  Innova:ons  in  social  investment:    moving  from  ideology  to  process          Dr  François  Bonnici  Bertha  Centre  for  Social  InnovaBon  and  Entrepreneurship  University  of  Cape  Town  Graduate  School  of  Business  
  • 7. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PSOCIAL INNOVATION AS A EMERGING FIELDA  novel  solution  to  a  social  problem  that  is  more  effective,  efficient,  sustainable,  or  just  than  existing  solutions  and  for  which  the  value  created  accrues  primarily  to  society  as  a  whole  rather  than  private  individuals.  (Phylis  et  al,  2008)    Social  innovation  is  an  initiative,  product  or  process  or  program  that  profoundly  changes  the  basic  routines,  resource  and  authority  flows  or  beliefs  of  any  social  system.    (Westley,  2010).    
  • 8. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PUnlike  the  terms  social  entrepreneurship  and  social  enterprise,  social  innovation  transcends  sectors,  levels  of  analysis,  and  methods  to  discover  the  processes  –  the  strategies,  tactics,  and  theories  of  change.    Social  innovation  aims  to  dissolve  boundaries  and  broker  a  dialogue  between  the  public,  private,  and  nonprofit  sectors.      SOCIAL INNOVATION AS A USEFUL LENS
  • 9. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P
  • 10. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P100  years  ago:  §  “kindergarten”  was  still  considered  revolutionary    §  only  two  countries  had  given  women  the  vote  (which?)  §  basic  human  welfare  not  universally  accepted  (is  it  now?)    §  Citizens  and  civil  society  have  been  the  source  of  many  social  innovations  that  have  progressed  from  the  margins  to  the  mainstream  (eg.  distance  learning)  §  Many  also  from  public  policy  and  business  (eg.  work  placements  for  people  with  disabilities)  PAST: SOCIAL INNOVATIONS WE TAKE FOR GRANTED
  • 11. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PPROCESS OF SOCIAL INNOVATIONNeeds  Pilots  Assessing  Diffusing  Evolving  
  • 12. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P§  Incremental  -­‐  building  on  the  core    §  Radical  -­‐  provide  entirely  new  models  for  thinking  and  doing    §  Innovations  can  disrupt  patterns  and  generate  further  ideas  and  innovations  (eg.  a  move  to  a  low  carbon  economy  or  creation  of  a  preventative  system  of  criminal  justice).      FROM INCREMENTAL TO RADICAL SOCIAL INNOVATIONSradical  innovaBon  (enBrely  new)  incremental  innovaBon    (builds  on  past)  
  • 13. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PSocial  innovators  can  be  categorised  in  three  ways:  1.  Entrepreneurs  and  individuals    2.  Movements  for  change  e.g.  environmentalism,  Paul  Hawken    3.  Innovative  organisations  (INSP,  Patagonia)    WHO DRIVES SOCIAL INNOVATIONS?
  • 14. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PMission  Motive  •  Stakeholder  Accountability  •  Surplus  income  reinvested  •      Hybrid  spectrum  organizational  form  •  Profit-­‐making  Motive  •  Shareholder  Accountability  •  Surplus  to  shareholders    INNOVATIONS IN FORM
  • 15. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PNEW ORGANIZATIONAL FORMS§  Solidarity  Structure  (France)  §  Community  Interest  Company  CiC  (UK)  §  Social  Enterprise  LLP  (UK)  §  Low  Profit  Limited  Liability  Company  L3C  §  Benefit  Corporation  (USA)  §  Imprese  Sociali  (Italy)  §  Hybrid  Joint  Ventures  (SA)  
  • 16. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PINNOVATION IN FORM: SIDAIPROBLEM:  Livestock  in  East  Africa  family’s  main  asset  and  income  but  due  to  market  failure  and  distorBon  they  lack  access  to  knowledge  &  quality  vaccines,  drugs,  markets  etc  to  increase  incomes  SOLUTION:  A  naBonal  network  of  branded  franchises  selling  quality  products,  advice  and  market  access  
  • 17. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PINNOVATIONS IN FUNCTION & PROCESSProcuring  Supplies  Employing  Workers  Designing  Product  or  Service  Producing  Product  or  Service  Marketing  &  Distribution  Local  supply  /  recyling  /  Fair  Trade  Dis-­‐enfranchised  Groups  Delivering  Education  Green  Techniques  Micro-­‐finance    Greg  Dees  (2002)  
  • 18. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PINNOVATION IN FUNCTION: THE 99Naif  Al  Mutawa  was  moved  by  the  psychological  effects  of  war  and  terrorism  and  his  children’s  future  to  create  new  role  models  in  superheroes            Even  before  The  99,  South  African  social  enterprises  have  used  mass  media  communicaBons  to  change  aTtudes  and  behaviours  has  been  successfully  achieved  by  Soul  City,  and  subsequently  Heartlines.      hWp://www.youtube.com/watch?v=5GO3bO2fq1Y&feature=SeriesPlayList&p=910FAA4450B6A276  www.the99.org    
  • 19. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PINNOVATIONS IN FINANCEEmerson  (2003)  Purely  Philanthropic  Purely  Commercial  TradiBonal    Philanthropy  Venture  Philanthropy  Impact  invesBng  &  Angel  Investors  SRI    Funds  TradiBonal  Capital  (banks,  mutuals  etc)  
  • 20. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P§  Mozambique  Malaria  Performance  Bond  §  PPP  designed  to  increase  funding  for  and  efficiency  of  malaria  interventions  through  a  pay-­‐for-­‐performance  mechanism.    §  “The  corporate  sector’s  participation  (investment)  will  play  a  catalytic  role  in  proving  the  pay  for  performance  concept  while  the  public  sector’s  funding  will  then  scale  the  initiative  to  cover  millions  more  affected  by  malaria”  §  Leveraging  CSI  and  corporate  investment  to  cover  the  risk  for  more  innovative  approaches  towards  effectiveness  and  performance  orientation  §  Anglo  American,  Nando’s  and  D-­‐Capital  (Dalberg)  MALARIA PERFORMANCE BOND
  • 21. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PTEACHING SOCIAL INNOVATION§  MBA  Social  Innovation  ,  MPhil  Inclusive  Innovation  §  The  aim  of  our  Social  Innovation  Lab  is  to  catalyze  deep  social  change  –  this  sets  our  students  up  for  immediate  and  assured  failure  in  the  short  term  §  In  the  long  view,  we  hope  that  it  prepares  participants  to  be  more  engaged,  creative,  and  sanguine  contributors  to  the  larger  currents  of  change  and  inquiry  §  For  us,  much  of  social  innovation  is  institutional  work  
  • 22. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PA SOCIAL INNOVATION HEURISTIC: TWO MINDSETSCORRECTIVE  PARADIGM   TRANSFORMATIVE  PARADIGM  PROBLEMS   POSSIBILITIES  GAPS   STRENGTHS  SERVICE   CO-­‐CREATION  DEVELOPMENT   EVOLUTION  PRODUCTS  &  PROCESSES   PATTERNS  EXTERNALIZED  INSTITUTIONS   INTERNALIZED  INSTITUTIONS  CATEGORY   CONTINUUM  
  • 23. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PRESEARCH, POLICY, PROJECTS – EDUCATION INNOVATIONSSOUTH AFRICA HUBGLOBAL  LAUNCH    15  JUNE  2013  
  • 24. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PRESEARCH, POLICY, PROJECTS – HEALTH INNOVATION
  • 25. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PRESEARCH, PROJECTS, POLICY: WORKSHOP 17
  • 26. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P
  • 27. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P§  These  innovations  are  not  the  holy  grail,  but  the  ordinary  cup  with  from  which  we  must  drink  every  day  §  Social  innovations  are  not  shortcuts  –  don’t  rate  them  over  the  longer  process  of  development  through  building  fundamentals  and  incremental  improvements  §  Reflect  on  multiple  positive  and  negative  outcomes  §  Beware  of  unintended  outcomes  §  Recognize  internal  and  external  factors  that  make  replication  of  innovations  not  as  simple  as  cut  &  paste      NO SIMPLE ANSWERS
  • 28. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I P§  Support  for  innovation  is  critical  to  cultivate  new  ideas  for  change  and  encouraging  organisations  to  improve  services  &  products  §  Treat  innovation  as  a  process,  not  an  outcome  in  itself,  seek  evidence  and  learning  §  Failed  ideas  often  lead  to  related  ideas  that  will  succeed  later  §  CSI  provides  a  position  to  take  some  risks  on  new  and  established  organizations  and  partnerships  in  a  way  that  other  sources  of  social  investment  cannot  THE CHALLENGE …. THE OPPORTUNITY
  • 29. BERTHA CENTRET H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PT H EBERTHA CENTREF O R S O C I A L I N N O V A T I O NA N D E N T R E P R E N E U R S H I PTHANK YOU