Hybrid Value Chain

  • 5,819 views
Uploaded on

This presentation introduces Ashoka’s Full Economic Citizenship (FEC) initiative and introduction to Hybrid Value Chain. …

This presentation introduces Ashoka’s Full Economic Citizenship (FEC) initiative and introduction to Hybrid Value Chain.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
5,819
On Slideshare
0
From Embeds
0
Number of Embeds
5

Actions

Shares
Downloads
112
Comments
0
Likes
4

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. WHAT IS ASHOKA’S FULL ECONOMIC CITIZENSHIP INITIATIVE ? 1
  • 2. FULL ECONOMIC CITIZENSHIP “ FULL ECONOMIC CITIZENSHIP (FEC) PROVIDES EVERY CITI- ZEN THE OPPORTUNITY TO EXERCISE HIS OR HER ECO- NOMIC, SOCIAL AND CULTURAL RIGHTS. TO ACHIEVE FEC, A CITIZEN MUST HAVE ACCESS TO THE ESSENTIAL PROD- UCTS AND SERVICES REQUIRED TO ENABLE THEIR ACTIV- ITY AS A CONSUMER, PRODUCER AND HOLDER OF ASSETS. FEC SEEKS TO END THE EXCLUSION OF TWO-THIRDS OF Valeria Budinich, Chief Entrepreneur THE WORLD’S POPULATION FROM GLOBAL MARKETS. ” Full Economic Citizenship 2
  • 3. ASHOKA IS PROMOTING FEC THROUGH HYBRID VALUE CHAINS (HVC). HVC IS A NEW OPERATING FRAMEWORK THAT TRANSFORMS MARKETS BY LEVERAGING THE STRENGTHS OF BUSINESS AND SOCIAL ACTORS. 3
  • 4. HOW DOES HVC WORK ? 4
  • 5. A FARMER STORY 5
  • 6. PEDRO DOES NOT HAVE A TRACTOR OR A TRUCK AND IS SELLING HIS PRODUCTION TO A LOCAL “COYOTE” WHO IS TAKING MOST OF THE MARGIN. HE LACKS ACCESS TO CREDIT TO INVEST IN PRODUCTIVE TECHNOLOGY. 40% OF HIS COSTS ARE FOR AGROCHEMICAL FERTILIZERS WHICH MAKES HIM VULNERABLE TO OIL PRICES. 6
  • 7. FORMAL MARKETS ARE NOT ATTENDING FARMERS LIKE PEDRO. THERE ARE OVER 2 MILLION IN MEXICO ALONE AND MANY MORE AROUND THE WORLD. 7
  • 8. SOLUTION: ASHOKA’S HYBRID VALUE CHAIN IN ORDER TO TRANSFORM THE WAY MARKETS WORK FOR SMALL FARMERS, ASHOKA IS BUILDING AN ECOSYSTEM OF PARTNERS Buyers who Providers of Financial Social entrepreneurs integrate farmers technology institutions who who change to their supply and inputs who give them a chance mindsets and chain and provide innovate to provide to invest in their mobilize and them the chance competitive own growth organize the farmers to build their solutions adapted through a so that they can technical skills and to the reality of guarantee fund aggregate demand get rid of unwanted small farmers that mobilizes 1 mn and play in the intermediaries (Amanco and in credit (Banamex markets (Arturo (Gamesa, Fairtrasa Netafim to date); Accion, Ve Por Mas, Garcia, Victor to date); ANEC Sofom to Suarez). date); 8
  • 9. SOLUTION: HYBRID VALUE CHAIN IN ACTION AMANCO & ASHOKA FELLOWS CURRENT SCENARIO: 2 MILLION FARMERS IN MEXICO HAVE LESS THAN 5 HECTARES OF LAND AND LACK ACCESS TO IRRIGATION COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE ENTREPRENEURSHIP IMPACT Ashoka, Amanco and selected Arturo Garcia, Juan Jose Fellows are working on access to 50% to 300% Consejo and Patrick irrigation technology for small- is the increase in production Struebi, Ashoka Fellows, farmers. This requires adapted that farmers can expect to are playing a key role technical solutions and new have with this new irrigation in organizing farmers credit processes. The scheme technology. to bring them access to new opportunities such is strengthened by a network of agro businesses to reach out to $100,000 dollar small farmers who have access to Fund created by Ashoka with as commercialization. the support of the Walmart They have also identified markets. This HVC is changing Foundation. the need for better mindsets and helping farmers technological solutions. see their farm as a business. Transparency International is a 1,500 small farmers benefitted from productive key partner in the alliance to help projects. address rampant corruption. 9
  • 10. ASHOKA AND ITS PARTNERS BELIEVE THE ANSWER TO UNLEASHING NEW MARKETS IS A NEW FORM OF BUSINESS designed to generate social impact at scale not philanthropy! 10
  • 11. A HEALTH STORY 11
  • 12. JASMEET KAUR HAD SEVERE ABDOMINAL PAIN. SHE COULD CHOOSE A “QUACK” IN THE VILLAGE OR SPEND TIME AND MONEY TO TRAVEL TO A LARGER CITY FOR MEDICAL CARE. UNABLE TO TAKE TIME AWAY FROM HER FAMILY AS HER HUSBAND WORKED, JASMEET VISITED A QUACK AND WAS GIVEN ASPIRIN BUT HER PAIN PERSISTED. SHE MUST FORGO QUALITY HEALTHCARE DUE TO LACK OF ACCESS AT THE VILLAGE LEVEL. 13
  • 13. VILLAGES TYPICALLY DON’T HAVE CLINICS AS MANY DOCTORS AND NURSES OFTEN DO NOT WISH TO STAY AND WORK IN REMOTE AREAS. DIAGNOSTIC TESTS AND MEDICINES DO NOT REACH THESE AR- EAS. WATER IS NOT CLEAN, INCREASING THE BUR- DEN OF DISEASE. 14
  • 14. SOLUTION: ASHOKA + HEALTHPOINT SERVICES (EHP) CURRENT SCENARIO: LIFE EXPECTANCY IN INDIA IS ONLY 54 YEARS OF AGE. DIARRHEA IS RESPONSIBLE FOR 20% OF CHILDHOOD MOR- TALITY UNDER THE AGE OF 5. IN A COUNTRY WHERE TOTAL EXPEN- DITURE ON HEALTH IS ONLY 4.9% OF GDP, NEW SOLUTIONS FOR HEALTHCARE PROVISION MUST BE PROVIDED. COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE IMPACT ENTREPRENEURSHIP The combination of ad- 20,000 patients seen Al Hammond, Ashoka’s Senior En- vanced technology with a since launch trepreneur, founded Healthpoint new business model allows Services (EHP), a new social en- doctor consultations over 120,000 patients terprise that brings quality, afford- telemedicine, diagnostic expected to be seen by end able healthcare to villages in rural tests, treatment, and clean of 2010 India through an innovative deliv- water to be provided at ery model. Amit Jain, CEO of EHP prices villagers can afford. and Indian social entrepreneur, Electronic health records 60,000 water people is using his local knowledge and and novel social marketing per day expertise to launch and manage schemes allow for maxi- the EHP model in India while en- mum impact in health and 2 pilots launched in new suring that products and services business. geographies using the EHP are designed appropriately for the model in Latin America and target market. Southeast Asia 15
  • 15. A HOUSING 16 STORY
  • 16. SOLUTION: KAIROS, APRODEFA & GRUPO CORONA CURRENT SCENARIO: 24% OF THE COLOMBIAN POPULATION IS IN NEED OF ADEQUATE HOMES. COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE IMPACT ENTREPRENEURSHIP Internal Champion at Grupo • Build a network of community based 28,000 low-income families improved their homes Corona called Ashoka to promoters, building investigate the potential material companies, to launch its first ever technical assistance $12 million in sales affordable tile product line in providers, financial alliance with Ashoka Social institutions to develop 178 community promoters Entrepreneurs. Collaboration a new market and social earn US$200 monthly has expanded to include organization. several other corporations in 8 cities where the model has order to expand their product • Citizen sector been replicated offer along the housing value generates new sources chain. of revenue. 18
  • 17. HYBRID VALUE CHAINS AND THEIR POWER TO TRANSFORM INDUSTRIES BUSINESS CITIZEN SECTOR GOALS GOALS • Improved products & services to • Access to markets communities • Greater profitability • Increased funding & income streams ASSETS • Essential goods and services ASSETS • Deep knowledge of communities and • Ability to operate at scale consumers • Investment capacity • Ability to aggregate demand • Operational capacity • Social Networks & behavior change • Infrastructure and logistics capacity 19
  • 18. HYBRID VALUE CHAINS AND THEIR POWER TO TRANSFORM INDUSTRIES BUSINESS CITIZEN SECTOR ASHOKA HYBRID VALUE CHAIN • Enables collaborative entrepreneurship at a country and global level • Identifies and engages partners providing complementary competencies • Demonstrates how to deliver integrated solutions at scale • Spread knowledge, learning and specific know-how emerging from HVC applications 20
  • 19. WHY HYBRID VALUE CHAINS NOW ? 21
  • 20. GLOBAL CHALLENGE BAL NS TO GLO DED. E SO LUTIO ENTLY NEE RE E SCAL S ARE URG S TODAY A AITING • LARG L ISSUE BLEM TS W S OCIA SOCIAL PRO MIC MARKE O MANYPPED ECON UNTA FULFILLED TO BE AND S INESS MODELS • CURRENT BU ARE BROKEN VALUE CHAINS • MARKETS ARE NOT REACHING THEIR POTENTIAL AND BUSINESSES EXCLUDE POTENTIALLY PROFITABLE CUSTOMERS • CSOS ARE MO BASED MARKE VING FROM AID TO CAPITA VIABLE BUSINETS AND ARE EMERGING AS L SS PARTNERS • SHORT TE HAS PROV RM CAPITALIST MO ED ITS LIM D ITATION EL 22
  • 21. WHY HVC ARE GOOD FOR BUSINESS ? 23
  • 22. FINANCIAL UNLEASH OPPORTUNITIES FOR GROWTH AND PROFITABILITY. BUSINESSES SEEK INNOVATION, MORE VALUABLE SUPPLY CHAIN AND DISTRIBUTION PARTNERS. THEY SEEK A CHANCE TO EXPAND CURRENT MARKETS FROM BILLIONS TO TRILLIONS. $6.4 TRILLION UNTAPPED MARKET ! ESTIMATED MARKET SIZE FOR THE 4 BILLION MARKET EXCLUDING FOOD THAT ACCOUNTS FOR US$3.6 TRILLION 553 424 SIZE OF GLOBAL MARKETS IN US$BILLION 202 gy g th in al er us He En Ho Source: The Next Four Billion report, (increased 2007 numbers by estimating a conservative 5% annual growth for each market) 24
  • 23. KNOWLEDGE COMPANIES THAT PIONEER HVCS WILL RUN UP THE LEARNING CURVE, LEAVING COMPETITORS IN THEIR WAKE. HVCS HAVE THE CAPACITY TO DISRUPT AND REVERSE INNOVATION FROM DEVELOPING TO DEVELOPED COUNTRIES. 25
  • 24. TALENT HVCS REQUIRE ENTREPRENEURS WHO CAN SPOT OPPORTUNITIES AND DEVISE CREATIVE SOLUTIONS. IT ATTRACTS PROGRESSIVE THINKERS AND INCREASES COMMITMENT TO THE FIRM BECAUSE WORKING ON THIS NEW FRONTIER OF BUSINESS IS EXCITING, SOCIALLY RELEVANT, AND CHALLENGING. 26
  • 25. WHY IS THE CITIZEN SECTOR A GOOD BUSINESS PARTNER ? 27
  • 26. BRAND VALUE ACCESS TO NEW MARKETS TALENT Businesses that partner with By partnering with the citizen The citizen sector attracts the citizen sector and so- sector and social entrepreneurs, highly talented, systemchang- cial entrepreneurs on issues businesses can reach new net- ers, creative leaders and inno- like housing, energy and works of potential customers and vators who are focusing their healthcare add value to their suppliers in viable under-served effort on the world’s most brand’s personalities and and under-valued markets. pressing issues and markets. how they are perceived in the marketplace. 28
  • 27. HVC DELIVER A WIN-WIN SOLUTION CUSTOMERS WIN CITIZEN SECTOR WIN BUSINESS WIN THEY GET ACCESS SUSTAINABLE MODEL NEW PRODUCTS TO HIGH-QUALITY DELIVERING SOCIAL AND SERVICES PRODUCTS FOR LESS IMPACT AT LARGE THAT INCREASE COSTS, BE IT BUILDING SCALE THEIR PROFITS MATERIAL OR AND DELIVER LIFE-INSURANCE SOCIAL IMPACT 29
  • 28. WHY ASHOKA ? 30
  • 29. THROUGH OVER 50 BUSINESS/SOCIAL PARTNERSHIPS ASHOKA’S FEC PILOTS IN 6 COUNTRIES WORKED WITH MORE THAN ARE DELIVERING 3,000 SOCIAL ENTREPRENEURS IMPRESSIVE RESULTS AND OVER THE PAST 30 YEARS, PROMISE EXTRAORDINARY AND WE’VE SEEN THE CITIZEN GROWTH. SECTOR GROW AND MATURE. ASHOKA IS COMMITTED TO EVERYONE A FULL ECONOMIC CITIZEN 31
  • 30. JOIN US 32
  • 31. CURRENT PARTNERS Business Citizen Sector FEC Partners State owned Foundations
  • 32. HOW CAN YOU JOIN THIS MOVEMENT? CONSUMERS CITIZEN SECTOR BUSINESS -FOCUS ON HOLISTIC NEEDS - LEADERS MUST -ORGANIZE TO DEMAND OF CONSUMERS & SMALL COMMUNICATE GOODS & SERVICES FROM PRODUCERS. FROM PRODUCT VIGOROUSLY ABOUT COMMUNITY LEADERS, AND USE TO ABILITY TO PAY. IMPORTANCE OF VENDORS. INNOVATION AND - LEVERAGE COMMUNITY ORGANIZATIONAL - FOCUS ON ABILITY TO TRUST TO MOVE FROM FLEXIBILITY TO FIND NEW PAY & START WITH LIFE COLLABORATION TO CLIENT- CUSTOMERS AND TAILOR NEEDS AND NOT WANTS. VENDOR RELATIONSHIP. PRODUCTS - SEEK TRANSPARENCY IN - BUILD BUSINESS SKILLS & -IDENTIFY INTERNAL PROMOTER COMPENSATION ORGANIZATIONAL CAPACITY. CHAMPIONS WITH LIFE OF LOAN. - MANAGE INCOME FLOW - REDESIGN FIRM FROM BUSINESS WHILE STRUCTURE/VALUE TIGHTENING CREDIT AND CHAIN TO TRULY COLLECTION STANDARDS. INNOVATE FOR ALL POTENTIAL CUSTOMERS
  • 33. APPENDICES 34
  • 34. VISION EVERYONE A FULL ECONOMIC CITIZEN MISION UNLEASH MAJOR MARKETS THROUGH A NEW OPERATING FRAMEWORK THAT LEVERAGES THE STRENGHTS OF BUSINESS AND SOCIAL ENTREPRENEURS TO DELIVER UNPRECEDENTED SOCIAL IMPACT GLOBALLY.
  • 35. CRITERIA FOR SELECTING HVC OPPORTUNITIES HIGH PRICE PRICE IS NOT TRUST-BASED HUMAN TICKET THE PRIMARY SOCIAL AND SOCIAL ITEMS BARRIER NETWORK CAPITAL CONSUMERS NEED A SERIOUS OF SYS- MARKET SEGMENTS FOR ALL TO REAL- TO INVEST IN ORDER TEMIC FAILURES ARE IN WHICH PACK- IZE FULL MARKET TO EITHER SATISFY INHIBITING DEMAND AGED VALUE ADDED POTENTIAL THE ESSENTIAL HUMAN (E.G. ACCESS TO FI- SERVICES REQUIRE INITIATIVE MUST NEEDS (E.G., SHEL- NANCING, LACK OF AN EXTENSIVE SO- ENHANCE THE TER, HEALTH AND TECHNICAL SUPPORT, CIAL NETWORK PARTICIPATION OF WAATER) OR SIG- AVAILABILITY OF LO- CLOSE TO END CLI- ALL: COMMUNITIES NIFICANTLY TRANS- CALLY BASED RETAIL ENT ON A RECUR- SERVES, CITIZEN FORM THEIR INCOME INFRASTRUCTURE). RENT BASIS. SECTOR AND BUSI- GENERATING POTEN- NESSES. TIAL (E.G. IRRIGA- TION SYSTEMS).