Innovating services for the NEXT wave of micro-business - business innovation jam at IESE Doing Good Doing Well conference 2014
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Innovating services for the NEXT wave of micro-business - business innovation jam at IESE Doing Good Doing Well conference 2014

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A new wave of micro-businesses is emerging. We are going through turbulent times in which interconnectivity and rising socioeconomic complexity make it increasingly difficult for large corporations to ...

A new wave of micro-businesses is emerging. We are going through turbulent times in which interconnectivity and rising socioeconomic complexity make it increasingly difficult for large corporations to adapt and build long-term strategies. Meanwhile, individuals are leveraging networks, crowd-funding, and new platforms to create informal and micro-enterprises that better respond to, and thrive in, our unstable business environment. Microbusiness is not a niche, but often overlooked and definitely underserved. In most countries it represents over 70% of employment, and is the world’s fastest growing sector of the economy as new forms are emerging, like micro-manufacturers and parallel entrepreneurs.

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In this workshop we will provide insights into this new wave of micro-businesses and their unmet needs. Then small groups will work together to create services that solve for their specific challenges in new ways. Together we will answer the question: How can we design better services that meet the real needs of today’s micro-business?

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Innovating services for the NEXT wave of micro-business - business innovation jam at IESE Doing Good Doing Well conference 2014 Innovating services for the NEXT wave of micro-business - business innovation jam at IESE Doing Good Doing Well conference 2014 Presentation Transcript

  • Claro Partners – Business Innovation Jam Innovating services for the NEXT wave of micro-business Doing Good Doing Well Conference at IESE Business School 21 February 2014 #microbusiness,@claropartners,
  • Innova&ng(services(for(the(Next(Wave(of(Micro5Business:(Workshop(Agenda( , , 11:45 ,Introduc8ons, 12:00 ,Ge<ng,to,know,the,next,wave,of,MicroEbusinesses,and,their,challenges, 13:00 ,Lunch:,form,team,and,pick,your,challenge, 14:00 ,Small,group,work:,idea8ng,services,for,real,microEbusiness,needs, 15:00 ,Share,back:,1,pitch,minutes,per,group, 15:30 ,End, , #microbusiness,@claropartners,
  • Share(your(thoughts?( @claropartners, #microbusiness,, ##IESEDGDW,
  • MBAs,,clients,and,tradi8onal,consultants,,are,dominated,by,business,thinking, BUSINESS(THINKING( !  !  !  !  !  !  !  Breaks,things,down, Exhaus8ve,analysis,and,priori8es, Customer,validated, Linear,,defined,approach, Priori8ses,to,close, Circumvents,constraints, Minimises,risks,through,thorough, analysis, MANAGEMENT'CONSULTANCIES' Poten&al(clashes:( Not,userEcentered,,profit,focused, No,real,new,,relevant,ideas, Only,works,for,tech,push, Generates,copy,cats,,incremental, innova8on, #microbusiness,@claropartners,
  • Design,agencies,offer,a,different,approach,, DESIGN(THINKING( !  !  !  !  !  !  !  Poten&al(clashes:( ,Rejec8ng,quan8ta8ve,approaches, ,,Too,crea8ve,,not,concrete,,, No,realis8c,business,model, Doesn’t,consider,ecoEsystem,issues,, Builds,things,up, Lateral,associa8ons,,intui8on,,stories, User,inspired, Itera8ve,,frequent,adapta8ons, Keeps,op8ons,“alive”, Integrates,constraints, Embraces,risks,and,fails,early,through, prototypes/tests, DESIGN'AGENCIES' #microbusiness,@claropartners,
  • Claro,combines,two,tradi8onally,opposed,schools,of,thought, BUSINESS(THINKING( !  !  !  !  !  !  !  Breaks,things,down, Exhaus8ve,analysis,and,priori8es, Customer,validated, Linear,,defined,approach, Priori8ses,to,close, Circumvents,constraints, Minimises,risks,through,thorough, analysis, DESIGN(THINKING( !  !  !  !  !  !  !  Builds,things,up, Lateral,associa8ons,,intui8on,,stories, User,inspired, Itera8ve,,frequent,adapta8ons, Keeps,op8ons,“alive”, Integrates,constraints, Embraces,risks,and,fails,early,through, prototypes/tests, #microbusiness,@claropartners,
  • Claro,helps,corpora8ons, and,startups,to,navigate, disrup&ve(shiIs(in, society,and,business,, delivering,service(design, and,business(innova&on( Elisabeth( Netherlands, Michael( USA, Aldo( Netherlands, Rich( USA, Megan( UK, Mandy( Lebanon, Abby( USA, Jiri( Belgium, Gunes( Turkey, #microbusiness,@claropartners,
  • Approach, Our,approach, , We,balance,experience,design,,social, science,and,business,strategy,to,translate, deep,insights,into,meaningful,and,relevant, solu8ons,that,deliver,value,for,people,and, business.,, , #microbusiness,@claropartners,
  • Approach, With,s8muli,and,methods,from,social,science,we,gain,deep,understanding,into, people’s,context,and,unmet,needs, In5context(ethnographic(interviews(to, understand,unmet,needs,,and,observe, people’s,context, Genera&ve(exercises(with,users,to, express,their,desires,,mo8va8ons,and, frustra8ons, “Show(&(Tell”(where,people,show,us, how,they,do,certain,things,,for,how, they,interact,with,technology, #microbusiness,@claropartners,
  • Approach, Experience,design,provides,inspired,crea8vity,to,reveal,new,and,unique, opportuni8es, , DISCOVER) )) Experience(principles(based,on,user, insights,to,guide,idea8on,and, concept,development, )TRY ) )))))))))USE ) Service(design(journeys(to,ensure,a, consistent,user,experience,in,line, with,business,processes,, ))))EXTEND) Concept(scenarios(to,make, concepts,concrete,and,8e,the, solu8on,to,real,needs,and,contexts, #microbusiness,@claropartners,
  • Approach, We,leverage,business,strategy,to,validate,if,and,how,a,concept,translates,into, real,value,for,customers,and,company, Business(modeling(to,generate,new, value,proposi8ons,and,value, exchange,mechanisms, Opportunity(mapping(to,show,different, strategic,direc8ons,and,spark,new,ideas,, ( Business(valida&on(to,assess,the,value, and,feasibility,of,concepts( #microbusiness,@claropartners,
  • ( Delivering(business(innova&on( and(service(design(in(the( context(of(disrup&ve(shiIs( Ownership,,, , , Services, delivered, by,companies, , Big,data,and,, aggregated,, resources,, , Internet,connects, everyone, , Big,corporates, , Access, , , Services,delivered, through,value, exchange,networks, , Small,data,and, personalised, experiences, , Internet,connects, everything, , Microbusiness, , Request our point of view papes on each of these topics at POV@claropartners.com #microbusiness,@claropartners,
  • Micro-business is rising globally: Change,photo, •  Comprise more than 95% of all businesses •  Employs 60-80% of the global workforce •  Fastest growing segment in both emerging and developed markets •  Significant part of the 10 trillion dollar informal economy •  40% of Americans predicted to be freelancers by 2020 #microbusiness,@claropartners,
  • Micro-businesses arise amidst the same shifts that disrupt large enterprises A new business context #microbusiness,@claropartners,
  • Micro-businesses arise amidst the same shifts that disrupt large enterprises !  Seeking a new lifestyle !  Generation Flux !  Unemployment/accidental entrepreneurship !  Networked society !  Collaborative consumption & peer-to-peer exchange !  New models of work Uncertainty Informality Immediacy !  Economic & corporate crisis !  Alternative payments & funding !  Lengthening of the long tail Volatility Experimentation !  Accessibility/usability of technology !  Mobile technology & payments !  Platforms #microbusiness,@claropartners,
  • We conducted fieldwork and one-on-one contextual interviews #microbusiness,@claropartners,
  • We used various tools and exercises #microbusiness,@claropartners,
  • OUR APPROACH! We had conversations with experts, thought leaders and professionals" David Li Founder of China’s first hacker space- Xin Che Jian Leif Krinkle Director at Visible Futures Lab Althea Erickson Policy Director at Etsy Jessamine Buck Director of Program and Member Services at Freelancers Union Renato Fonseca Andrade Development and Innovation Manager at SEBRAE Ben Lyon Director at Kopo Kopo Suraj Sudhakar Robert Neuwirth Regional Fellows Manager at Journalist, Author #microbusiness,@claropartners, Acumen Fund
  • We conducted workshops, discussions and site visits #microbusiness,@claropartners,
  • OUR APPROACH! Throughout the project, we researched micro-business more broadly using a range of secondary resources" #microbusiness,@claropartners,
  • OUR APPROACH! We interviewed and learned from key stakeholders within our partner organisations #microbusiness,@claropartners,
  • Micro-businesses are not a new phenomenon, but this next wave is now appearing in new places and new forms. They are online and offline; entrepreneurs and mom and pop businesses; micro-manufacturers, crowd-funded, networked and global. #microbusiness,@claropartners,
  • While they exist everywhere, micro-businesses are often misunderstood. And their needs are underserved. 23,,|(, #microbusiness,@claropartners,
  • Micro-businesses are misunderstood and underserved Narrowly defined by size and income Homogenized and lumped together Not easily categorised or recognised as they blur personal and business Formal steps and processes do not match their reality 24,,|(, #microbusiness,@claropartners,
  • PROJECT OVERVIEW! 5 25,,|(, COMMON MISCONCEPTIONS 1 Micro-businesses are tiny versions of big enterprise 2 ‘Micro’ means isolated and constrained 3 Micro-businesses strive to grow 4 Micro-businesses exist on the extreme edges 5 Micro-business owners lack processes and skills #microbusiness,@claropartners,
  • 1 MISCONCEPTION Micro-businesses are tiny versions of larger businesses Micro-business are not shrunken enterprises. They have unique business models, motivations, attitudes and needs. 26,,|(, #microbusiness,@claropartners,
  • 2 MISCONCEPTION ‘Micro’ means isolated and constrained Micro-businesses operate through expansive networks and cannot be treated as distinct from them. 27,,|(, #microbusiness,@claropartners,
  • 3 MISCONCEPTION Micro-businesses strive to grow! Many micro-business owners are content with their size. Conventional metaphors of linear growth obscure their real experiences and desires. 28,,|(, #microbusiness,@claropartners,
  • MISCONCEPTION 4 Micro-businesses exist on the extreme edges Micro-businesses are often discussed in the extreme: as either very poor, even illegal, or highly entrepreneurial and profit-seeking “start-ups”. The reality is most are in the middle. 29,,|(, #microbusiness,@claropartners,
  • 5 MISCONCEPTION Micro-businesses lack processes and skills! Micro-businesses learn by doing. Their experimentation is often misrepresented as frantic, reflecting a lack of knowledge of what one is doing. Yet, their trial-and-error practices fit their context. 30,,|(, #microbusiness,@claropartners,
  • Exploring stories of microbusinesses around the world New York City MAKERS São Paulo ELASTIC MICROBUSINESS Shanghai PLATFORM ENTREPRENEURS Nairobi PARALLEL ENTREPRENEURS #microbusiness,@claropartners,
  • ELASTIC MICRO-BUSINESSES Elastic micro-businesses are micro-businesses that are able to quickly rescale and adapt to the changes in their environment. Corporate Partners
 example: Whole Foods Odesk Dabbawallas #microbusiness,@claropartners,
  • MAKERS Makers leverage new technologies, work spaces and platforms to create physical products, and are part of a global movement. Arduino Fablab Etsy #microbusiness,@claropartners,
  • PARALLEL ENTREPRENEURS Parallel Entrepreneurs are entrepreneurs who are running more than one business activity at the same time. Task Rabbit Kabbage Vayable , #microbusiness,@claropartners,
  • PLATFORM ENTREPRENEURS Platform entrepreneurs use platforms to connect, extend their reach and quickly react to market changes and demands. Shapeways Ebay Alibaba #microbusiness,@claropartners,
  • Despite this diversity, micro-businesses share a set of needs and characteristics •  •  •  •  Redefine Business Fundamentals Operate Through Networks Driven By Freedom Face Multiple Challenges #microbusiness,@claropartners,
  • Micro-businesses share a set of needs and characteristics Redefine business fundamentals •  Growth is not always desirable •  Value is more than profit •  Competitors are also peers #microbusiness,@claropartners,
  • Micro-businesses share a set of needs and characteristics Operate through networks •  Spread operations throughout networks •  Gain form and flexibility •  Blend personal and business #microbusiness,@claropartners,
  • PROJECT OVERVIEW! Pyramid of motivations and needs for business SELF-ACTUALIZATION EXTERNAL ESTEEM BELONGING SECURITY MASLOW’S PYRAMID 39,,|(, #microbusiness,@claropartners,
  • PROJECT OVERVIEW! Micro-businesses: operate through networks, driven by freedom SELF-ACTUALIZATION Freedom EXTERNAL ESTEEM Visibility BELONGING SECURITY Adaptation Flexibility and Options MICRO-BUSINESS 40,,|(, #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES! The experience of micro-business owners is chaotic and uncertain! 41,,|(, #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES! However, under the chaos, they have a simple mental model - comprised of two sides! PATH TO MARKET 42,,|(, OVERHEAD #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES! Owners feel pulled apart and do not treat these two sides equally! PATH TO MARKET 43,,|(, OVERHEAD #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES! They are more comfortable with their path to market…! PATH TO MARKET 44,,|(, OVERHEAD #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES! Micro-business owners find overhead a burden…! PATH TO MARKET OVERHEAD (image) 45,,|(, #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES PATH TO MARKET! The path to market is reconfigurable, giving micro-businesses many options for delivering their offer! PATH TO MARKET OVERHEAD DEFINE MAKE / PROCURE MARKET / SELL DISTRIBUTE / DELIVER CUSTOMER SERVICE 46,,|(, #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES OVERHEAD! Overhead can be feel rigid, lacking in options and overwhelming! OVERHEAD ORGANISATION" INFRASTRUCTURE" PAPERWORK" REVENUE & COST" 47,,|(, #microbusiness,@claropartners,
  • EXPERIENCE MODEL | EXPERIENCES AND CHALLENGES! The micro-business experience is comprised of two sides! PATH TO MARKET DEFINE OVERHEAD ORGANISATION" MAKE / PROCURE INFRASTRUCTURE" MARKET / SELL PAPERWORK" DISTRIBUTE / DELIVER CUSTOMER SERVICE 48,,|(, REVENUE & COST" #microbusiness,@claropartners,
  • WHY DOES Micro-Enterprise matter FOR YOUR BUSINESS? New partners 49,,|(, New customers New competitors, #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE! Corporations and micro-businesses have complementary strengths and weaknesses for the emerging context! STRENGTHS! CORPORATIONS! Economies of scale Available capital Broad customer base Established infrastructure Hierarchical organisation MICRO-BUSINESSES! Customized offers Lean organization Deep customer relations Reconfigurable infrastructure WEAKNESSES! Process efficiency 50,,|(, Networked organisation Experimentation capacity Slow pivots Wasteful spending Higher costs Lack of resources Lack of customer understanding Difficult to scale customer relationship management Legacy infrastructure Dependent infrastructure Low customization Low reach #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE! There is a growing amount of activity around micro-business! 51,,|(, #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE! We identified four models of engagement for enterprise to harness the elasticity of micro-business ! SERVE! ENABLE! PARTNER! LEARN! 52,,|(, #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE! SERVE! ENABLE! PARTNER, LEARN, 53,,|(, #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES! SERVE MICRO-BUSINESSES! !  As-you-go services !  Micro-business specific !  Curated solutions 54,,|(, #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES! As-you-go services !  Micro-entrepreneurs constantly learn and make decisions with direct impact on their business !  Offers are flexible, immediate and easy for micro-business Task Rabbit allows microbusinesses to outsource small tasks at reasonable prices, greatly freeing up their time while still getting things done. Square offers a payment solution that allows micro-businesses to take payments at any location or time. 55,,|(, Vistaprint provides a complete set of products that can be ordered separately or combined as micro-businesses need. By,Todd,Plif,,USA,TODAY, #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES! Micro-business specific !  Micro-businesses are not scaled-down versions of large corporations !  Traditional management theory is not necessarily applicable !  Offers designed specifically for micro-businesses are more relevant Wave apps understands that the lines between business and personal are often blurred for micro-businesses, that’s why they provide personal financial management tools in parallel with their micro-business toolkit. Planet Soho provides a free, businessmanagement suite designed specifically for micro-businesses. “My favourite part about PlanetSoho is the streamlined and intuitive organization it provides.” - Sean Hilty (user) 56,,|(, Kabbage is an online financing company that specifically lends to micro-businesses selling on eBay, Amazon, Etsy and Shopify. The company meets a lending gap left by traditional debt sources due to higher risks. #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES! Curated solutions !  Micro-businesses often reconfigure solutions to meet their evolving needs !  Solutions come from a range of providers that solve specific issues !  Platforms that curate solutions connect micro-businesses with solutions that best meet their needs Intuit Quickbase catalogues and provides templates for custom applications. Members from the community can use and share templates that best meet their specific. needs Etsy apps is a collection of third-party apps enabled by the Etsy API that provides solutions to sellers. 57,,|(, Taobao University by Alibaba Group partners with institutions like Institue of Suzhou Software to teach Taobao sellers how to improve efficiency in processing orders and speed of delivery. #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES! Offers serve micro-businesses in both path to market and overhead! PATH TO MARKET OVERHEAD DEFINE ORGANISATION" MAKE / PROCURE INFRASTRUCTURE" MARKET / SELL PAPERWORK" DISTRIBUTE / DELIVER CUSTOMER SERVICE 58,,|(, REVENUE & COST" #microbusiness,@claropartners,
  • ENTERPRISE PERSPECTIVE | SERVE MICRO-BUSINESSES! GUIDELINES TO SERVE! !  Provide when and how is needed! !  Design for micro-businesses, not yourself! !  Act in their best interest! 59,,|(, #microbusiness,@claropartners,
  • Exercises introduction Customer(awareness(and( reputa&on(depends( (on(word(of(mouth( Fluctua&ng(cash(flow( Business(and(personal( networks((are(intertwined( Lack(of(capital(to(buy( (what(they(need( PATH TO Struggle(to(define(their(focus((MARKET while(keeping(op&ons(open( Poorly(defined(pricing(( OVERHEAD Personalized(customer(service(( is(&me5consuming( and(revenue(models( Must(wear(all(hats( Prefer(to(learn(by(doing( Hard(to(Priori&se(tasks( Development(not(aligned(with(bureaucra&c(or( legal(procedures( #microbusiness,@claropartners,
  • Innova&ng(services(for(the(Next(Wave(of(Micro5Business:(Workshop(Agenda( , , 11:45 ,Introduc8ons, 12:00 ,Ge<ng,to,know,the,next,wave,of,MicroEbusinesses,and,their,challenges, 13:00 ,Lunch:,form,team,and,pick,your,challenge, 14:00 ,Small,group,work:,idea8ng,services,for,real,microEbusiness,needs, 15:00 ,Share,back:,1,pitch,minutes,per,group, 15:30 ,End, , #microbusiness,@claropartners,
  • #microbusiness,@claropartners,
  • PLACE THE MICRO-BUSINESS CHALLENGE HERE WHAT ARE WAYS TO SOLVE THIS CHALLENGE? Brainstorm potential service ideas to meet this challenge. Micro-businesses operate through networks. How can networks be part of your solution? WRITE YOUR SERVICE IDEA HERE HOW DOES THIS SERVICE SUPPORT MICRO-BUSINESS NEEDS? (We find it easiest to start from the bottom) How can this service give micro-businesses freedom to set and navigate towards self-defined goals? FREEDOM How can this service increase micro-businesses’ visibility? VISIBILITY How can this service allow micro-businesses to quickly respond to changing circumstances? ADAPTATION How can this service provide micro-businesses with flexibility and options? FLEXIBILITY AND OPTIONS #microbusiness,@claropartners,
  • PLACE THE MICRO-BUSINESS CHALLENGE HERE WHAT ARE WAYS TO SOLVE THIS CHALLENGE? Brainstorm potential service ideas to meet this challenge. Micro-businesses operate through networks. How can networks be part of your solution? WRITE YOUR SERVICE IDEA HERE #microbusiness,@claropartners,
  • WRITE YOUR SERVICE IDEA HERE HOW DOES THIS SERVICE SUPPORT MICRO-BUSINESS NEEDS? (We find it easiest to start from the bottom) How can this service give micro-businesses freedom to set and navigate towards self-defined goals? FREEDOM How can this service increase micro-businesses’ visibility? VISIBILITY How can this service allow micro-businesses to quickly respond to changing circumstances? ADAPTATION How can this service provide micro-businesses with flexibility and options? FLEXIBILITY AND OPTIONS #microbusiness,@claropartners,
  • VALUE PROPOSITION What is your service’s value proposition to micro-businesses? WRITE THE FINAL NAME OF YOUR SERVICE HERE VALUE EXCHANGE MODEL Example: Illustrate the business model for your service. What value (resources, knowledge, skills, connections,…) is exchanged between service providers, microbusiness, customers and others? #microbusiness,@claropartners,
  • VALUE PROPOSITION What is your service’s value proposition to micro-businesses? WRITE THE FINAL NAME OF YOUR SERVICE HERE VALUE EXCHANGE MODEL Example: Illustrate the business model for your service. What value (resources, knowledge, skills, connections,…) is exchanged between service providers, microbusiness, customers and others? #microbusiness,@claropartners,
  • WRITE THE FINAL NAME OF YOUR SERVICE HERE VALUE EXCHANGE MODEL Example: Illustrate the business model for your service. What value (resources, knowledge, skills, connections,…) is exchanged between service providers, microbusiness, customers and others? #microbusiness,@claropartners,
  • 759(March! Join strategists, developers and designers all across the world come together in one weekend to explore, create and prototype a service – mentored by Claro Partners, their clients and other professionals" Register NOW at barcelonaservicejam.org!" #microbusiness,@claropartners,