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Impact Meetup: How to structure an impact enterprise using the Social Business Model Canvas
The document outlines a series of impact meetups hosted by Impactor in spring 2016, focusing on topics such as structuring impact enterprises, cooperativism, and crowdfunding. It highlights the importance of business models for social enterprises like the Aravind Eye Care system, emphasizing a value proposition that balances customer needs and social impact. Additionally, it encourages individuals interested in making a difference to join the impact ecosystem and participate in workshops and discussions.
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Impact Meetup: How to structure an impact enterprise using the Social Business Model Canvas
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- 3. Impact Meetup series spring2016 26.1. 5-7 pm: How to structure an impact enterprise using the SBMC 24.2. 5-7 pm: Today's cooperativism & financing cooperatives 23.3. 5-7 pm: Modelling, measuring and reporting on your impact 3.5. 5-7 pm: Crowdfunding for impact enterprises FOR WHOM? All impact-minded individuals:) WHERE? Helsinki Think Company, Vuorikatu 5
- 4. SCHEDULE What is Impactorand who are we? Who are you? Intro to business models The Social Business Model Canvas Wrap-up & upcoming workshop 17.2. Mingling & sharing stories:)
- 5. Cooperative with apurpose of helping change agents and impact organizations to find financial resources and to transform the economy.
- 6. Membership Join theimpact ecosystem Build your network Share your knowledge Bring your challenge to our coaching clinic Become an impact investor Membership fee: 50 euros
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- 10. Impact-driven: making savingthe world your business (i.e. you have a social / environmental mission) Why financial sustainability? Measure &maximise your impact - often toughest “criteria” Ourguidelines
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- 12. “A business modeldescribes the rationale of how an organization creates, delivers and captures value” - Osterwalder & Pigneur Blueprint on how to implement your strategy Business model vs. business plan Current reality vs. ideal situation What is a business model?
- 13. Examples of businessmodels Fee-for-service - e.g. solar energy Cross-compensation - e.g. Aravind Eye Care Market intermediary - e.g. Fair Trade Freemium
- 14. Business Model Canvas =visual communication tool
- 15. Photo: http://www.optometrystudents.com/event/infinite-vision-one-doctor-india-changed-future-eye-care/ Aravind EyeCare System “quality at prices that everyone can afford” combination of high quality and high volume --> “The McDonald's of Health Organisations”
- 16. Photo: https://www.flickr.com/photos/62532814@N03/5737237128 2 646129 → 2/3 315 483 → 3/4
- 17. Photo: https://www.flickr.com/photos/62532814@N03/5737237128 2 646129 → 2/3 315 483 → 3/4 Apr 2010 - Mar 2011 outpatient visits: surgeries: fraction of services to the poor either free or at a steeply subsidized rate
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- 19. color code yourcustomer segments and the according value propositions - easier to follow make separate canvases for separate products or services, if they differ much in existing organizations: make separate canvases for current situation & ideal situation most important: how does everything align Tips for filling out the canvas
- 20. VALUE PROPOSITION why doyour customers come to you? new? better? tailored? how do you solve customer problems and satisfy customer needs? social value proposition customer value proposition impact measures describe how value is created don’t do everything - focus on few things & do them well
- 21. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care Aravind Eye Care System
- 22. BENEFICIARY & CUSTOMER SEGMENTS “thedifferent groups of people or organizations an enterprise aims to reach and serve” -Osterwalder & Pigneur heart of any business model beneficiary (edunsaaja): is served by the organization, but does not necessarily pay for products / services different needs different ability to pay require different relationships
- 23. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor Aravind Eye Care System
- 24. INTERVENTION describe your productor service
- 25. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized Aravind Eye Care System
- 26. CHANNELS Value propositions aredelivered to customers through communication, distribution & sales channels Interface with customers & beneficiaries Direct / indirect channels Own / partner channels
- 27. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics Aravind Eye Care System
- 28. REVENUE STREAMS for whatvalue is each customer segment willing to pay? sales, usage fees, subscription fees, lending/renting/leasing, licensing, commission advertising each revenue stream may have different pricing mechanisms (fixed / dynamic pricing)
- 29. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do Aravind Eye Care System
- 30. KEY ACTIVITIES what doyou do to make the aspects of your business model come to life? what do you need to be able to do yourself? e.g. sales, marketing, R&D, production, customer service
- 31. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D Aravind Eye Care System
- 32. KEY RESOURCES what doyou need to carry out your activities? the most important assets to make your business model work physical, financial, intellectual, human owned / acquired from partners
- 33. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff Aravind Eye Care System
- 34. KEY PARTNERS & STAKEHOLDERS whodo you need to make the business model work who do you need to involve to deliver your value proposition to your customer and beneficiaries? e.g. suppliers, funders, regulatory bodies, government funders can be identified either as partners or customers
- 35. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff • NGOs & major foundations • WHO • research collaborators Aravind Eye Care System
- 36. COST STRUCTURE What costsare incurred to operate your business model? How do your costs change as you scale up your organization? Fixed costs: salaries, rents etc. whatever incurs even when production 0 Variable costs: whatever varies depending on production level Economies of scale: cost per unit decreases when production increases Economies of scope: cost per unit decreases when scope of operations increases, i.e. marketing efforts may support several products
- 37. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff • NGOs & major foundations • WHO • research collaborators • equipment & materials • salaries • R&D • accommodation, nutrition & travel of patients Aravind Eye Care System
- 38. SURPLUS How will youinvest your profit?
- 39. SOCIAL VALUE PROPOSITION: eradicating blindness--> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff • NGOs & major foundations • WHO • research collaborators • equipment & materials • salaries • R&D • accommodation, nutrition & travel of patients • generated from affluent customer’s fees • goes towards developing & growing Aravind Aravind Eye Care System
- 40. SOURCES: Osterwalder & Pigneur(2010): Business Model Generation http://www.socialbusinessmodelcanvas. com/ http://socialleancanvas.com/
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- 42. normally 189 € (incl.VAT 24 €) 94,50 €
- 43. Impact Meetup series spring2016 26.1. 5-7 pm: How to structure an impact enterprise using the SBMC 24.2. 5-7 pm: Today's cooperativism & financing cooperatives 23.3. 5-7 pm: Modelling, measuring and reporting on your impact 3.5. 5-7 pm: Crowdfunding for impact enterprises FOR WHOM? All impact-minded individuals:) WHERE? Helsinki Think Company, Vuorikatu 5
- 44. Where can you findus? jenni.selosmaa@impactor.fi kristiina.ullgren@impactor.fi saila.kokkonen@impactor.fi Impactor www.impactor.fi @impactor_fi
- 45. THANK YOU SOMUCH FOR COMING!