business models for prevention: "an ounce of prevention..."
DESCRIPTION
Slide show from Global Health & Innovation Conference #GHIC at Yale on April 16, 2011TRANSCRIPT
Danger:
Entrepreneur
Unrepentant Optimist
Educational Arsonist
Infectious Agent
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00 What happened?
•10 million Skyping
•60 iPods
•5,000 tons CO2
•50 businesses
•Made in USA
…and two people died prematurely, due to air pollution.
What is this?
60,000 plastic bags; the
number used in the US
every five seconds.
If waste is so easy, why is
value creation so hard?
© Chris Jordan
www.chrisjordan.com
New Math for 2008-2020
1 Billion = 1.8 Billion
DESIGN FOR THE OTHER 90%
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BASE OF PYRAMID
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“An ounce of prevention is worth
a pound of cure.”
Ben Franklin
IF “an ounce of prevention is
worth a pound of cure…”
Why are so many businesses focused on
cures?
What are some business models focused
on prevention?
My 4 GoalsEighteen minutes from now, you will:
1) Know more about the importance of business model
innovations for approaching global health challenges.
2) Have examples of prevention based business models.
3) Be aware of tool(s) to help you design and prototype
business models for new ventures.
4) Have more confidence that YOU can DO something
about the global health challenges by designing (and
then building) prevention based business models.
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Big Global Challenges…
How will society face them?
Proactively identify and plan/prevent
Some planning, then wait and respond when
they happen
Let them happen, then figure out what to do
What will you do?
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Chronic
Crisis
BOP TOP
Oxfam, Doctors without
Borders
Aravind, Envirofit,
Red Cross, CDC &
FEMA
Merck, Toyota
Business Models for Environmental
& Public Health Ventures
Innovation
How an idea or invention becomes a good or service for
which someone will pay.
Historically, focus has been placed on technology
innovation… and process innovation.
Emerging focus on business model innovation and
entrepreneurship for tackling global challenges.
Q: What is a business model?
A: How an enterprise creates
and shares value.
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Q: How do I get a “good”
business model?
A. Business Model Design
It is more about designing
the network
…than designing the product
Telegraph
Technology +
suppliers
JP Morgan
& friends
Franchise
Model
Local
Investors
Generator
Companies
Competing
Light Mfrs
Utility
Business
Models
From Andy Hargadon, UC Davis
Pixo
Design
Linear
Tech
Sony
Sharp
Apple
Industrial
Design
Wolfson
Micro
Portal
Player
ARM
MP3
Toshiba
FIIC
From Andy Hargadon, UC Davis
From Andy Hargadon, UC Davis
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From Andy Hargadon, UC Davis
BOP Business Model Design
S S S
“Goods & Services”
Scale
Craft solutions
with the BoP
Orchestrate effective
experimentsManage
failures
Transfer social
embeddedness
Generate co-mingled
competitive advantage
Pilot
Design
Create market
opportunities
Enhance
mutual value
BOP Venture Development Principles
London. 2011. “Building Better Ventures with the
BoP” in Next Generation Business Strategies for the
Base of the Pyramid.
H.E.R.O.’ic Design-Produce cleaner air, cleaner water, health,
justice
-Find value in waste
-Prevent pollution, disease
-Restore/regenerate ecosystems and
communities
Examples
Inviragen
“Better vaccines for a better world”
-what sucked?
- dengue, hfmd, je vaccines
-3 markets
-high r&d costs
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Envirofit
“Making the world
fit for humanity.”
-sophisticated
technology
-inexpensive
products
-mfrg and logistics
-carbon and micro
finance
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Emerging
AYZH
-designing healthy products for BOP women
Design That Matters
-low cost medical devices for rural health
X out TB
-TB treatment compliance
Product and business model innovation aimed at BOP health.
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Business Model Design Tools
Business Model DesignIntegrating values and value creation
BHAWG, 2 Q’s and 3 S’s
Search process
Prototypes and iterations: BMGEN Canvas
Testing hypotheses
Customer development and pivots
Minimum Viable Product
First Tool:
Venture 100 + The Matrix
-100 words on WHAT venture does and WHY it’s
important.
-Three important goals to measure what your venture
will accomplish over 5 years.
2010 2011 2012 2013 2014
Metric 1
Metric 2
Metric 3
One approach…
Better Approach:
Business Model Canvas
Example: iPod
Create many designs
1-2-3… Testing… TestingEach block of Canvas has “guesses”
Process of testing: Customer Development
“Get out of the building”
“Most people look at a company like Apple
and think, how could I ever make such a
thing? Apple is an institution, and I'm just
a person. But every institution was at one
point just a handful of people in a room
deciding to start something. Institutions
are made up, and made up by people no
different from you.”
Paul Graham, A Student’s Guide to Start Ups 2006
Eighteen minutes are up… DO YOU:
1) Understand the importance of business model
innovations for global health challenges?
2) Have examples of prevention based business models?
3) Know some tool(s) to help you design and prototype
business models for new ventures?
4) Have more confidence that YOU can DO something
about the global health challenges by designing (and
then building) prevention based business models?
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Want more?
The OFFER
www.bopreneur.blogspot.com
Twitter: @BOPreneur
OTHER: RESOURCES:
inviragen.com steveblank.com
envirofit.org businessmodelalchemist.com
csugsse.org andrewhargadon.com
iddsummit.org nextbillion.net
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