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APS 1015H: Social Entrepreneurship

                  Class 2: Identifying Key Issues in Social
                              Entrepreneurship

                       Wednesday, September 21, 2011
Instructors:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)
                                                              1
© Norm Tasevski & Karim Harji




Agenda

•  Admin stuff
•  Review the guidelines for the term project
•  Guest Speaker – Adam Spence – what did we
   learn?
•  Class discussion
•  Prepping for next week




                                                              2
© Norm Tasevski & Karim Harji




Admin Stuff

•  A change of plans…
  –  Idea Jam at Thing Tank Lab to be run on October 5th (not
     next week!)




               http://www.criticalmaking.com/ddimit/


                                                                           3
© Norm Tasevski & Karim Harji




Term Project




                                   4
© Norm Tasevski & Karim Harji




Adam Spence

What did we learn?




                                         5
© Norm Tasevski & Karim Harji




                    6
© Norm Tasevski & Karim Harji




Lemelson Foundation - Examples
•  Low-cost baby warmer built
   by local craftsmen; has cut
   the neonatal mortality rate in
   half
•  Little Cool: refrigerator that
   sells for $70 that is quiet,
   portable, and energy-
   efficient
•  Iko-toilet: technology-
   enabled sanitation “kiosks”
•  Soy milk maker for an
   orphanage
•  Chlorinator for community
   water systems
•  Portable solar cooker
                                                        7
© Norm Tasevski & Karim Harji




                    8
© Norm Tasevski & Karim Harji




                    9
© Norm Tasevski & Karim Harji



Safe Water as a Market Opportunity
Huge global need for access to safe drinking water. Diarrheal disease
causes 1,600 deaths a day…




Opportunity: a large unmet demand

Business model issues:
    –  Market creation entails developing customer awareness of the link
       between water quality and human health, as well as the need to
       understand consumer preferences—in taste, convenience, health
       benefits, and aspirations.
    –  Distribution involves the ability to design a reliable supply chain for
       deploying and maintaining treatment plants that can provide treated
       water at affordable prices.
    –  Financing solutions must cover the up-front capital costs of water
       purification technology.

                                                                                      10
© Norm Tasevski & Karim Harji




Case Study: Naandi Foundation
•  Largest community-scale water-treatment program in the
   world; focused on rural villages w/o access to clean water
•  A hybrid business model that incorporates both a social
   enterprise and an NGO
•  Program has grown in 3 years to around 800 units located in 4
   states that serve three million people daily; scaling up (2009)
•  Subscription-based model (prepaid, incentive to use daily)
•  What sets Naandi apart / why is it successful?
   –  Efficient business-like approach that optimizes the entire value chain
   –  Forming trusted partnerships with state and local governments that aid
      business development
   –  Intensive, sophisticated marketing designed to change community
      perceptions and behaviour


                                                                                      11
© Norm Tasevski & Karim Harji




Case Study:

•  Largest community-scale water-treatment program in the
   world; focused on rural villages w/o access to clean water
•  A hybrid business model that incorporates both a social
   enterprise and an NGO
•  Has grown in 3 years to around 800 units located in 4 states
   that serve three million people daily; scaling up (2009)
•  Subscription-based model (prepaid, incentive to use daily)
•  What sets Naandi apart / why is it successful?
   –  Efficient business-like approach
   –  Forming trusted partnerships with state and local governments
   –  Intensive, sophisticated marketing



                                                                                   12
© Norm Tasevski & Karim Harji




The Opportunity Restated
 “But there is no magic here—simply excellent and
 intelligent execution. The approach is potentially
 replicable, if others follow Naandi’s pioneering
 strategies.
 Moreover, there appears to be strong interest in both
 private and public sources of capital in supporting
 scalable clean-water solutions.
 These factors argue strongly that the sector is positioned
 to scale, and that a businesslike entrepreneurial
 approach can play a significant role, whether carried
 out by an unusual NGO like Naandi, by a commercial
 entity, or by a hybrid value chain involving both types of
 organizations.”

                                                                   13
© Norm Tasevski & Karim Harji


The Mobile Revolution: Drivers

         Explosive growth:
         –  3.3 billion people using mobile phones, projected
            to grow to 5.2 billion by 2011.
         –  More subscribers in developing countries than in
            developed countries.

         Increased performance and functionality
         –  technological advancements (Moore’s Law,
            smartphones, cloud computing)

         Greater openness: for applications and devices




  *Mobile	
  is	
  not	
  a	
  silver	
  bullet.	
  Applica4on	
  is	
  more	
  important	
  than	
  access.	
  	
       14
  	
  
© Norm Tasevski & Karim Harji




                  15
© Norm Tasevski & Karim Harji




                  16

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APS1015H Class 2 - Identifying Key Issues in Social Entrepreneurship

  • 1. APS 1015H: Social Entrepreneurship Class 2: Identifying Key Issues in Social Entrepreneurship Wednesday, September 21, 2011 Instructors: Norm Tasevski (norm@socialentrepreneurship.ca) Karim Harji (karim@socialentrepreneurship.ca) 1
  • 2. © Norm Tasevski & Karim Harji Agenda •  Admin stuff •  Review the guidelines for the term project •  Guest Speaker – Adam Spence – what did we learn? •  Class discussion •  Prepping for next week 2
  • 3. © Norm Tasevski & Karim Harji Admin Stuff •  A change of plans… –  Idea Jam at Thing Tank Lab to be run on October 5th (not next week!) http://www.criticalmaking.com/ddimit/ 3
  • 4. © Norm Tasevski & Karim Harji Term Project 4
  • 5. © Norm Tasevski & Karim Harji Adam Spence What did we learn? 5
  • 6. © Norm Tasevski & Karim Harji 6
  • 7. © Norm Tasevski & Karim Harji Lemelson Foundation - Examples •  Low-cost baby warmer built by local craftsmen; has cut the neonatal mortality rate in half •  Little Cool: refrigerator that sells for $70 that is quiet, portable, and energy- efficient •  Iko-toilet: technology- enabled sanitation “kiosks” •  Soy milk maker for an orphanage •  Chlorinator for community water systems •  Portable solar cooker 7
  • 8. © Norm Tasevski & Karim Harji 8
  • 9. © Norm Tasevski & Karim Harji 9
  • 10. © Norm Tasevski & Karim Harji Safe Water as a Market Opportunity Huge global need for access to safe drinking water. Diarrheal disease causes 1,600 deaths a day… Opportunity: a large unmet demand Business model issues: –  Market creation entails developing customer awareness of the link between water quality and human health, as well as the need to understand consumer preferences—in taste, convenience, health benefits, and aspirations. –  Distribution involves the ability to design a reliable supply chain for deploying and maintaining treatment plants that can provide treated water at affordable prices. –  Financing solutions must cover the up-front capital costs of water purification technology. 10
  • 11. © Norm Tasevski & Karim Harji Case Study: Naandi Foundation •  Largest community-scale water-treatment program in the world; focused on rural villages w/o access to clean water •  A hybrid business model that incorporates both a social enterprise and an NGO •  Program has grown in 3 years to around 800 units located in 4 states that serve three million people daily; scaling up (2009) •  Subscription-based model (prepaid, incentive to use daily) •  What sets Naandi apart / why is it successful? –  Efficient business-like approach that optimizes the entire value chain –  Forming trusted partnerships with state and local governments that aid business development –  Intensive, sophisticated marketing designed to change community perceptions and behaviour 11
  • 12. © Norm Tasevski & Karim Harji Case Study: •  Largest community-scale water-treatment program in the world; focused on rural villages w/o access to clean water •  A hybrid business model that incorporates both a social enterprise and an NGO •  Has grown in 3 years to around 800 units located in 4 states that serve three million people daily; scaling up (2009) •  Subscription-based model (prepaid, incentive to use daily) •  What sets Naandi apart / why is it successful? –  Efficient business-like approach –  Forming trusted partnerships with state and local governments –  Intensive, sophisticated marketing 12
  • 13. © Norm Tasevski & Karim Harji The Opportunity Restated “But there is no magic here—simply excellent and intelligent execution. The approach is potentially replicable, if others follow Naandi’s pioneering strategies. Moreover, there appears to be strong interest in both private and public sources of capital in supporting scalable clean-water solutions. These factors argue strongly that the sector is positioned to scale, and that a businesslike entrepreneurial approach can play a significant role, whether carried out by an unusual NGO like Naandi, by a commercial entity, or by a hybrid value chain involving both types of organizations.” 13
  • 14. © Norm Tasevski & Karim Harji The Mobile Revolution: Drivers Explosive growth: –  3.3 billion people using mobile phones, projected to grow to 5.2 billion by 2011. –  More subscribers in developing countries than in developed countries. Increased performance and functionality –  technological advancements (Moore’s Law, smartphones, cloud computing) Greater openness: for applications and devices *Mobile  is  not  a  silver  bullet.  Applica4on  is  more  important  than  access.     14  
  • 15. © Norm Tasevski & Karim Harji 15
  • 16. © Norm Tasevski & Karim Harji 16