Inclusive innovation halme wb_08062012


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Inclusive innovation halme wb_08062012

  1. 1. 6/11/2012 Inclusive innovation for low-income emerging marketsProfessor Minna Halme, Aalto University School of Economics, June 8, 2012 Minna Halme Objectives of the training – this session Minna Halme 1
  2. 2. 6/11/2012 Low-income emerging markets (or the Base of the Pyramid)4 billion peoplelive with lessthan 5€ (PPP) perday Minna Halme Paradoxes Minna Halme 2
  3. 3. 6/11/2012 Inclusive innovation at the BOP Making it real Minna HalmeVictims, resilient entrepreneurs or…? Making it real 6 Minna Halme 3
  4. 4. 6/11/2012 What solutions work? Making it real 7 Minna Halme Making it realInitiators range from multinational companies to SMEs, social enterprisesand non-governmental organizations.Real examples Minna Halme 4
  5. 5. 6/11/2012 Microfinance over the internetPROBLEM: Subsistence entrepreneurs have too little money or can’t get bank loans.SOLUTION: MyC4 is a microfinance bank operating through the internet since 2007. • MyC4 grants loans to small enterprises in African countries • Investors are individuals and organizations in developed countries. Making it • Each investor can choose the loan recipient, follow real how the enterprise succeeds and can also give advice. • Local ”providers” in Africa screen prominent entrepreneurs.REVENUE MODEL: MyC4 charges a 6% interest fee on the loans when they are repaid.OUTCOME: Over 19,000 investors from 115 countries have invested over €15 million through the MyC4 website. Over 8,000 businesses in seven African countries have been funded. ITC eChoupal procurement hubs for farmers in India Problem of subsistence farmers: Did not used to get a fair price of their produce in mandis (agricultural marketing centres) due to unfair Making it practices of middlemen real Problem of ITC: Did not get good quality commodities The e-Choupal programme links rural farmers via the Internet with buyers of agricultural products like soybeans, wheat and coffee. Effects Around 4 million farmers have been Let’s see ourselves: empowered in 10 states of India where 40,000 villages have 6,500 eChoupals Fx4gukMYTGA 10 5
  6. 6. 6/11/2012 Grundfos LifelinkPROBLEM: Lack of safe drinking waterSOLUTION: Water systems for rural communities, schoolsand hospitals Making it real It is crucial to develop community ownershipUsers pay with mobile phone & pre-paid key fob (RFIDTechnology).Local banks participate in financingSolar panel is power sourceMaintenance and repair costs are included in the waterpriceOn-line remote monitoring with GSM/GPRS Quick repair in case of faults Locals have been trained as repair mechanics Minna HalmeLargest eye care facility in IndiaMission is to remove needless blindnessMany eye care services, with the cataract lensesurgeries and provision of affordable ophthalmicproducts worldwideLet’s see ourselves: 6
  7. 7. 6/11/2012 BOP innovation: What lessons to learn? Making it real Halme Jan 18, 2012Making it real:What can governments and IGOs do? Making it real Minna Halme 7
  8. 8. 6/11/2012Thank you! Professor Minna Halme For information: & Minna Halme 8