keynote wharton socialimpactconf_apr2014
TRANSCRIPT
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Social Innovation:How it really works
Kriss Deiglmeier, CEO
April 10, 2014
Wharton | San Francisco | Social Impact Conference
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Text
The emergence of social as a modifier
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Soraya SaltiINJAZ al-Arab
Bill Drayton Ashoka
Premal Shah/Matt FlanneryKIVA
Muhammad Yunus Grameen Bank; Nobel Laureate
Adalberto Verissimo and Carlos Souza Jr.Imazon
Social Entrepreneurs
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Social Entrepreneurship
Social entrepreneurs play the role of change agents in the
social sector, by:
• Adopting a mission to create and sustain social value (not just private value),
• Recognizing and relentlessly pursuing new opportunities to serve that mission,
• Engaging in a process of continuous innovation, adaptation, and learning,
• Acting boldly without being limited by resources currently in hand, and
• Exhibiting heightened accountability to the constituencies served and for the outcomes created.
Source: Greg Dees, The Meaning of “Social Entrepreneurship,” J. Gregory Dees, Duke University, May 30, 2001
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Contemporary Social Innovations
CharterSchools
Microfinance Fair TradeEmissions
Trading
Socially Responsible
Investing
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Need to do something with this and the next slide. I like the stool metaphor, but this is a poor visual, and I have not been able to find a decent stool photo (surprisingly)
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Social EntrepreneursThe Great Man or Woman Theory
Social EnterpriseSelf-Sustaining Organization Theory
Social Capital Market
Microfinance
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Social Innovation Definition
A novel solution to a social problem that is moreeffective, efficient, or sustainable
than existing solutions and for which the value created accrues primarily to
society as a whole rather than private individuals.
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Criteria differentiation
Innovation Criteria• Novelty- new to user, context or
application• Improvement- more effective or
efficient
Social Innovation Criteria• Sustainable• Just• Public Value
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Social Innovation and Traditional Innovations
Social Innovation• Socially Responsible
Investing• Microfinance• Sustainable
Development(Amazon)
Innovation• The Internet• Hydraulic Fracking• Deep water Trolling
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Stages of Innovation
Defining the Problem and Opportunity
IdeaGeneration
Piloting &Prototype
Diffusion &Scaling
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Case Study – Microfinance
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Lack of access to: • formal credit • financial
services• formal
financial sector
The Problem
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Idea Generation
1000’s– 1500’s
1800’s 1950’s– 1960’s
• Chit Funds (India)• Mujins (Japan)• Esusu (Nigeria)
• Savings Clubs• People’s Banks• Credit Unions
• Subsidized Rural Credit
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Piloting & Prototyping
Microfinance 1960’s– 1970’s
1980’s
• Target market poor women
• Microbusiness• Group Lending
• 1961- Accion Venezuela
• 1976- Grameen Bangladesh
• Failure of government initiated poverty programs
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Diffusion & Scaling 1990-present
1990’s 2000’s Present
• Microfinance Decade
• Nonprofit + Emergence of For Profit
• Rise of Non-Bank Financial Institutions (NBFIs)
• 2005- UN declared the year of microcredit
• 2006- Yunus and (Grameen) received the Nobel Peace Prize
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State of Microfinance - Global View
• Over 12,000 MFIs • More than 94,000,000 borrowers total• 91 countries
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• Data and Metrics• Organizational
Efficiency/IT Systems
• Scale and Reach
Technology’s Influence on Microfinance
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The Story of M-Pesa: Problem
• Needed to deepen financial penetration into the unbanked community
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The Story of M-Pesa: Idea Generation
• Utilized cross-sector community collaboration to be successful
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The Story of M-Pesa: Pilot
• Adapted to practice on the ground
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The Story of M-Pesa: Scaling
Established a network of agents
Set a bold goal
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The Story of M-Pesa: Tipping Point
Became viral after reaching over a million customers and implementing lessons learned
• Ubiquitous distribution network
• Strong Brand• Work all the time• Agent Training• Combat Fraud
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The Story of M-Pesa: Kenya Today
• Moves between $500-$700million per month (20% of Kenya’s GDP)
• 15 million active users
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The Story of M-Pesa: Global Expansion
• Tanzania • Afghanistan
• South Africa• India
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Commit to cross-sector collaborationSocial innovations require everyone’s involvement.
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.
Save The Amazon Rainforest Organisation
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Focus on your strategic lever
Social innovations grow as leverage points are identified and utilized.
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Fair Trade Mainstream Markets
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Never mistake a clear view for a short distance
Social innovations do not happen overnight.
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Social Innovation Continuum
Source: kdeiglmeier
Stagnation Chasm
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What can civil society do?
• Leverage trust, networks, and deep customer knowledge
• Ensure voice of customer is heard
• Provide long-term thinking
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What can government do?
• Set effective policy, regulation, and rules
• Provide access to reach large number of customers
• Raise awareness
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What can business do?
• Leverage assets, efficiencies, and resources (Financial, management, supply chain, etc.)
• Demonstrate rapid action
• Provide flexible funds
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“If we want to build a stronger, more sustainable world for future generations, one with more partners and fewer enemies, we have to work together.”
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@tidescommunity @kdeiglmeier
Kriss Deiglmeier
www.tides.org
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