Working Together for the Wellbeing of the Poor


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Working Together for the Wellbeing of the Poor

  1. 1. Inclusive Business in Emerging Markets World  Vision  Interna/onal   April  2012  
  2. 2. ADP (Area Development Program) Eco-system
  3. 3. Eco-system – child focused
  4. 4. Eco-system – phases and time frames
  5. 5. Eco-system – the model Child-­‐focused   Children  are  included  as   agents  of  change  in  the   communi8es   Mul/-­‐sector   Sustainable     Interven8ons  address  the   Empowered  communi8es  are   mul8ple  causes  of  poverty   able  to  sustain  their  own   and  injus8ce   development   Mul/ple  funding  sources   Community-­‐based     Long-­‐term     Funding  comes  from  a   ADP  design  and   Commitment  to  long-­‐term   combina8on  of  public   implementa8on  is  based   funding  and  involvement   and  private  funds  as   on  community  needs  and   with  communi8es  –  upto   appropriate     priori8es   15  years   Empowering   Building  the  capacity  of   communi8es,  and  empowering   them  to  carry  out  their  community   development  processes.
  6. 6. World Vision Global presence   Operating in 98 countries Revenue of USD 2.8 billion44 000 employees 100 million beneficiaries
  7. 7. 1000 communitiesin excess of 1 millionbeneficiaries
  8. 8. World Vision’spresence in IndiaOver 6700 communitiescovering 147 districtsacross the country
  9. 9. Challenges within the eco-system - Overview •  Nutrition - hunger, malnutrition •  Health - immunization, water, sanitation, hygiene •  Economic Development - poverty, livelihood, sustainability •  Agriculture - food security, climate change •  Education - literacy, school drop outs •  Child  Protec8on  -­‐  child  abuse,  child  labor,  trafficking   •   Environment  -­‐  waste  management,  contamina8on,   conserva8on     •   Gender  -­‐  empowerment  and  gender  balance   •   Disability  -­‐  s8gma,  lack  of  opportuni8es   •   Peace  building  -­‐  conflicts,  do  no  harm  
  10. 10. BASE OF THE PYRAMIDThe  Base  of  the  Pyramid  (BoP)  is  the  largest  but  poorest  socio-­‐economic  group  worldwide  with  over    4  billion  people;  they  are  economically  ac8ve  as  consumers,  producers,  entrepreneurs  and  employees    
  11. 11. WORLD ECONOMIC PYRAMID Overview  of  market  segments,  by  annual  income  (in  USD  per  capita,  PPP  2005)  source: UN World Development Reports Most  companies  focus  on  mature  and  emerging  markets,  while  the  huge  market  of  4  billion  people   living  on  less  than  USD  3,260  a  year  goes  largely  untapped  
  12. 12. Models of engagement between NGOs and private sector Model   Proposi/on   1.  conventional charity   §  donations: fiscal benefits   transac/onal   §  employee sponsorships: employee motivation   §  coverage & communication: press info & general image   2.  corporate social §  corporate sponsorship   responsibility   §  specific projects with linkage to corporate focus   §  involvement of resources (financial, goods-in-kind, people)   3.  core business §  corporate products (e.g. dairy products)   collaboration §  services (e.g. forming dairy cooperates for economic transforma/onal   development)   §  connecting the supply chain / distribution / sourcing network of WV and the corporate in the same geographies   4.  convergence on issues   §  cluster of various private and public sector stakeholders (NGOs, local business, multinationals, governments)   §  converge around specific issue (e.g. health & nutrition)   §  convenor defines issue/scope, stakeholders, geographies, structure and initiates collaboration   BoP  proposi/ons  source: team analysis / Arjen Joosse (2011) Conclusion   roposi8ons  for  World  Vision’s  involvement  in  BoP  ini8a8ves  are  core-­‐business-­‐to-­‐core-­‐ Relevant  p business  collabora8on  and  convening  various  stakeholder  groups  based  on  convergence  of  issues  
  13. 13. OPPORTUNITIES Areas of biggest opportunities for BoP collaboration Next game-changers will come through: Game-changers & innovation Collaboraon   Convening   Convergence  source: synthesis of frameworks by Accenture Development Partnerships (2011), Convergence Economy; and Booz & Company (2008), Megacommunities According  to  research  the  winners  of  collabora8on  and  innova8on  will  be  convening   stakeholders  across  various  eco-­‐systems  with  convergence  on  issues  
  14. 14. Successful companies must reinvent their processesPrahalad (University of Michigan): we need to focus on BusinessProcess Architecture Change •  children   •  parents   •  sponsors   Shift from focus Shift to focus on •  donors   on transactions Strategy   responsiveness •  staff   and interactions and events •  partners   •  investors   *  Informa8on  &   Focus  on the     Communica8on   Individual   Technology   ShiB  to   Reinven/ng   New   Business   *  Supply  Chain   Innova/ve   •  exis8ng  resources   Processes   •  new  resources   Business   •  reconfigured  resources   Models   •  knowledge  and  analy8cs   Finance  &   •  networks   Treasury   •  leveraged  owned  assets   •  leveraged  other  assets   Shift from pure Shift to co- Focus  on   People  &  Skills   creation with aid with single Resources   resources mixed resources * according to author ICT and Supply Chain are predicted as most important areas for business process reinvention in the next decadesource: C.K. Prahalad & M.S. Krishnan (2008), The New Age of Innovation (University of Michigan)
  15. 15. Opportunities for companies to interact – For example Solar power ICT4D Wind power Virtual learning Cleantec High-tech solutions Irrigation Waste management Drinking water Recycling Pollution Forestry
  16. 16. What will a partnership look like? – Overview World  Vision’s  value  proposi/on   •  World-­‐class  grass-­‐root  knowledge  of  the  BOP  markets     •  Access  to  more  than  millions  of  people  in  90+  countries   •  Innova8ve  ways  of  delivering  the  services  to  under-­‐served   segments   •  Hands-­‐on  inclusive  co-­‐crea8on  with  the  local  communi8es   •  Ethical,  sustainable  and  scalable  development     Opportuni/es  for  companies   •  Apply  their  core  competencies  –  innova8ve  approaches   •  Contribute  to  reducing  poverty  and  social  development   •  Engage  in  a  new  business  models  accessing  new  markets   •  Enjoy  increased  longer-­‐term  outcomes   •  Introduce  locally  applicable,  replicable  and  low-­‐cost   solu8ons   •  Network  and  collaborate  
  17. 17. What can a partnership look like? – Overview Industry   Sample  Partnerships  Agricultural  Inputs     •  Iden8fy  and  provide  products  and  services  that  improve  crop  quality  (e.g.,  irriga8on  equipment),   specifically  for  small  scale  or  low-­‐income  farmers  or  for  environmentally  sustainable  farming  methods   •  Provide  training  to  promote  beger  use  of  products  and  farming  prac8ces  Banking,  Finance,  and  Insurance     •  Banks  provide  savings  programs  or  micro  financing   •  Banks  provide  small  business  or  entrepreneurial  training   •  Insurance  companies  provide  life,  health,  or  crop  insurance  geared  towards  low-­‐income  consumers  Basic  Materials  (e.g.,  mining,  oil)     •  Pay  for  social  services  (e.g.,  water,  educa8on,  health  posts)  in  areas  of  opera8ons   •  Implement  environmental  sustainability  projects  as  a  part  of  social  mandate   •  Provide  skills  training  and  employment  programs  Retail  &  Wholesale     •  Strengthen  social  services  (e.g.,  health,  educa8on)  in  communi8es  where  they  are  sourcing  to  make   sourcing  sustainable  in  the  long  term   •  Incorporate  environmentally  sustainable  sourcing  methods  for  crops  being  sourced   •  Provide  agricultural  extension  services  or  training  for  sourced  products  to  improve  crop  quan8ty  and   quality   •  Adopt  fair  trade  or  organic  cer8fica8ons  to  improve  environmental  impact  and  poten8ally  increase  profit   margins   •  Provide  access  to  informa8on  (e.g.,  pricing,  technical  advice)  for  farmers  so  that  they  can  improve  the   quality  of  their  crops  and    have  beger  nego8a8ng  power  with  middlemen  Consumer  Goods  (e.g.,  food,   •  Any  projects  noted  in  Retail  &  Wholesale  (above)  when  company  is  sourcing  products  personal  products)   •  Provide  foods  that  fight  malnutri8on  (e.g.,  micronutrient  biscuits  or  “sprinkles”)   •  Promote  usage  of  health-­‐related  products  (e.g.,  soap,  condoms)  through  health  campaigns  with   government  or  NGOs   (Accenture, 2012)
  18. 18. What will a partnership look like? – Overview Industry   Sample  Partnerships  Entertainment  &  Leisure  (e.g.,   •  Source  food  locally  hotels,  travel  companies,   •  Train  local  labor  force  in  hospitality  restaurants)    Healthcare     •  Build  health  care  plakorms  that  can  reach  hard-­‐to-­‐reach  rural  popula8ons  by  making  services  more   mobile  (e.g.,  telemedicine)   •  Create  innova8ve  healthcare  technologies  to  serve  low  income  consumers  with  quality  products  and   services   •  Pharmaceu8cal  companies  improve  supply  chains  to  reach  more  rural  markets  Industrial  Goods  (e.g.,   •  Iden8fy  and  cater  to  needs  of  low-­‐income  customers  (e.g.,  lack  of  savings  or  financing)  in  order  to  serve  construc8on,  cement)     their  needs  and  increase  sales  Manufacturing     •  Provide  HIV/AIDS  tes8ng,  awareness,  and  educa8on  to  workers  or  informa8on  on  other  health  related   campaigns  Media,  Adver8sing,  or  Public   •  Provide  input  on  running  effec8ve    behavior  change  or  awareness  campaigns  (e.g.,  health,  HIV/AIDS)  Rela8ons   •  Provide  media  coverage  of  events  Technology     •  Innovate  new  products  and  services  that  serve  the  needs  of  low  income  consumers  (e.g.,  solar  lamps)   •  Promote  ability  to  make  social  services  more  mobile  or  virtual  (e.g.,  virtual  classrooms,  agriculture  and   health  data  via  cell  phones)   •  Support  students’  technology  educa8on    Telecommunica8ons     •  Provide  informa8on  on  pricing,  weather,  and  farming  techniques  via  a  paid  subscrip8on  service  over   mobile  phones   •  Provide  mobile  health  updates  via  text  message  Transporta8on  (e.g.,  airlines,  car   •  Innovate  new  products  that  serve  low  income  consumers  (e.g.,  Tata  Nano)  companies)     •  Innovate  ways  to  get  transporta8on  products  into  the  hands  of  low  income  consumers  (e.g.,  financing   of  motorbikes)  Business  Services   •  Tap  unemployed  youth  to  provide  Business  Process  Outsourcing  services  –  where  youth  work  at   computer  centers  on  simple  back-­‐office  data  tasks  for  larger  outsourcing  firms  (Accenture, 2012)
  19. 19. What will a partnership look like? – Philips Students  near  Bolgatanga,  Ghana  learn  with   A  nurse  aJends  to  a  pa/ent  with  a   the  aid  of  a  Philips  lantern   Philips  lantern   • Philips  Ligh8ng  created  a  solar  lantern  that  provides  rural,  off-­‐the-­‐grid  communi8es  with  access  to  light  which   improves  the  ability  to  study,  provide  healthcare,  and  perform  livelihood  ac8vi8es  amer  dark   • DGIS  (The  Dutch  government’s  interna8onal  development  agency)  provided  €24,000  (~$32K  USD)  to  pilot  the   project  in  rural  Ghana  in  conjunc8on  with  WV  Ghana   • WV  Ghana  and  their  microfinance  arm,  APED,  worked  with  Philips  to  iden8fy  and  loan  funds  to  retailers/sales   agents  who  sold  the  products  to  buyers  in  local  communi8es   (Accenture, 2012)
  20. 20. What will a partnership look like? – Dimagi • Dimagi,  a  US-­‐based  somware  company,  created  a   mobile  applica8on  that  allows  healthcare  workers  to   track  pa8ent  data  and  access  health  care  informa8on   • USAID  funded  the  development  of  Dimagi’s  mobile   applica8on,  WV  provided  the  healthcare  content,  and   the  Government  of  India  healthcare  workers  used  the   mHealth  applica/on   phones  to  improve  quality  of  service  to  women  and   children   • Current  plans  are  for  WV  India  and  the  Government  of   India  to  scale  this  project  to  new  areas   Government  of  India  Asha  health  workers   (Accenture, 2012)
  21. 21. What will a partnership look like? – IDE & Hatim Ind. •  IDE  Bangladesh  iden8fied  a  market  need  for  a  technology  to   improve  field  water  management  for  rice  cul8va8on  and   iden8fied  a  plas8c  pipe  technology  called  “alterna8ve  werng   and  drying”  (AWD),  developed  by  the  Interna8onal  Rice   Research  Ins8tute,  that  could  fill  that  need   •  IDE  partnered  with  Ha8m  Industries  Limited,  a  plas8cs  pipe   company,  to  develop  the  pipes,  produce  them  at  scale  in   Bangladesh,  and  market  the  finished  product   •  Ha8m  Industries  Limited  gained  a  new  product  and  revenue   stream     •  Farmers  have  seen  a  reduc8on  in  costs  due  to  a  20%   reduc8on  in  water  required  as  well  as  5-­‐7%  increase  in  yield   due  to  more  effec8ve  management  of  available  nutrients  and   increased  8llers   (Accenture, 2012)
  22. 22. What will a partnership look like? – Coca Cola •  Coca-­‐Cola  worked  with  WV  India  to  run  several  water  programs  that  would  improve  access  to  water  in  villages   and  publicized  these  dona8ons  through  local  and  na8onal  media  outlets     •  Therefore  Coca-­‐Cola  along  with  its  boglers  Amrit  Boglers  Pvt.  Ltd.  and  Brindavan  Boglers  Pvt.Ltd  has   partnered  with  World  Vision  India  in  the  construc8on  of  20  rainwater  harves8ng  tanks  in  the  villages  of   Nindura  Block,  Ugar  Pradesh.  This  interven8on  is  aimed  at  enhancing  the  irriga8on  facili8es  and  has  led  to   increase  in  the  water  table,  providing  easy  access  to  water  through  tube  wells,hand  pumps  and  wells.   (Accenture, 2012)
  23. 23. CASES Most prominent examples of World Vision’s involvement in BoP initiatives Ini/a/ve   Partners   Impact  /   Descrip/on   catchment   § Rural  Access  to   § Zenon  Environmental   § Water  for   § Completed:  ini8ated  in  2006,  USD  230k  programme  to   Clean  Water   Inc.  (now  GE),  Eureka   44.000  people   increase  access  to  clean  drinking  water  for  rural   Forbes,  WV  Canada,  WV   in  India   communi8es  while  crea8ng  income-­‐genera8ng  ac8vi8es  for   India   women  and  youth   § TopSector   § FrieslandCampina,   § Food  for  people   § Early  discussions:  collabora8on  on  issues  related  to  /  supply   Food  &  Agro   World  Vision   in  Ethiopia,   of  child  nutri8on  in  emerging  markets  with  one  of  largest   Netherlands   Vietnam,  India   global  dairy  coopera8ves   § Grow  Business   § UN  Founda8on/EWEC,   § Global,  focus  on   § Proposal:  proposal  “Growing  Business  and  Improving   and  Improving   World  Vision  through   Africa,  Asia,   Women’s  &  Children’s  Health”  for  every  woman  every  child   Women  &   PMNCH,  various  mul8-­‐ La8n  America   in  coopera8on  with  health  related  companies  and  other   Child  Health   na8onals/corporates   stakeholders   § Made  In   § Canadian  Food  &  Agro   § Livelihoods  &   § Ini8a8ng:  assessment  on  how  to  connect  the  Canadian   Canada   Sector,  WV  Canada,   food  security  in   agricultural  industry  to  BoP  farmer’s  value  chain  in  the  field   Farmers   various  WV  field  offices   various   Ini8a8ve     countries   § Nutririce     § DSM,  ADB,  WVI  Health   § Food  in  several   § In  progress:  collabora8on  with  global  supplier  on  how  to   &  Nutri8on,  various  SOs   countries,   make  available  for8fied  rice  to  people  in  areas  of  need  to   (Canada,  Switzerland,   including  China   receive  food  aid   Taiwan,  Netherlands)   and  DPRK  source: WV internal info collection, team analysis
  24. 24. CASES Most prominent examples of World Vision’s involvement in BoP initiatives Ini/a/ve   Partners   Impact  /   Descrip/on   catchment   § India  Road   § FleetForum,  Coca  Cola,   § Pan-­‐India  road   § Launched  at  F1O  2011,  programme  to  raise  awareness  and   Safety   Vodafone,  Shell,   safety   preven8on  for  children  and  families  related  to  road  safety  as   WVIndia   messaging   one  of  the  top  killers  in  India   § PUR  Water   § Procter  &  Gamble,   §   § In  progress:  WVUS  collaborates  with  P&G’s  PUR  ini8a8ve   Ini8a8ve   several  NGOs  incl.   liters  of  clean   around  the  world,  providing  more  than  2  billion  liters  of   WVUS   water  thus  far   clean  water  annually,  see   § SUSTAIN   § UPS,  TNT,  Accenture,   § Improve  last   § Ini8a8ng:  World  Vision  ini8ated  coopera8on  with  CARE,   Global   Booz,  World  Vision,   mile  supply  of   UPS,  TNT,  Accenture,  Booz  &  Company  and  academia  to   Partnership   CARE   relief  and  other   stand-­‐up  collabora8on  for  beger  supply  chain  solu8ons  at   goods   the  last  mile   § Bogom  Billion   § World  Vision,  LMMS,   § Enabling  access   § Early:  business  planning  and  feasibility  study  on  mul8-­‐party   Big  Data   various  other  NGO  and   to  bogom   big  data  ini8a8ve  as  service  provider  to  NGOs  and   corporate  partners   billion  as  target   corporates  for  bogom-­‐billion  with  coopera8ve  structure  /   market   shared  ownership   § Value  Chain   § Shortlist  of  various   § Food  security,   § Assessment/ini8a8on:  value  chain  analysis  of  stakeholders   Approach  to   companies  in  Food,   pilot  in  HoA  and   and  private  sector  collabora8on  related  to  BoP  food  security   Food  Security   Credit,  Chemicals,  Tools   Tanzania   programming  source: WV internal info collection, team analysis The information collected from World Vision entities shows that there are a couple of prominent examples of Conclusion   World Vision’s involvement in BoP initiatives, all in various stages of development
  25. 25. PURE WATER INITIATIVEExamples of World Vision’s involvement in BoP initiatives Proposal  is  being  developed  for  mul8-­‐party  big  data  ini8a8ve  as  service  provider  to  NGOs  and   corporates  for  bogom-­‐billion  with  coopera8ve  structure  /  shared  ownership  
  26. 26. SUSTAIN GLOBAL PARTNERSHIPSExamples of World Vision’s involvement in BoP initiatives World  Vision  ini8ated  coopera8on  with  CARE,  UPS,  TNT,  Accenture,  Booz  &  Company  and   academia  to  stand-­‐up  collabora8on  for  beger  supply  chain  solu8ons  at  the  last  mile  
  27. 27. SUSTAIN GLOBAL PARTNERSHIPSExamples of World Vision’s involvement in BoP initiatives Proposal  is  being  developed  for  mul8-­‐party  big  data  ini8a8ve  as  service  provider  to  NGOs  and   corporates  for  bogom-­‐billion  with  coopera8ve  structure  /  shared  ownership  
  28. 28. SUMMARY World Vision’s proposition for private sector BoP World Vision is uniquely positioned to partner and add value to BoP §  assessing needs, gaps and situation of the population §  providing last mile access to communities and aggregated information at grassroot level §  convening BoP communities, global private sector, local businesses, CBOs, local and national government §  working with communities to enhance capacity, governance, financial management, information & knowledge management source: team analysis The  proposi8on  of  NGOs  like  World  Vision  is  pivotal  for  the  success  of  private  sector  to  effec8vely   Conclusion   and  efficiently  serve  the  BoP  as  a  target  market  so  collabora8on  is  highly  beneficial  for  both  sectors  
  29. 29. Think convergence!
  30. 30. Thank you!