online course module 1 20130911 endeva

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Module 1: Introduction to Inclusive Business InnovationBoP Learning Lab Germany – Endeva

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Inclusive Business Executive Online Course

Christina GradlBoP Learning Lab Germany

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Module 1: Introduction to Inclusive Business Innovation

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Introduction to the course

Introduction to inclusive business

Allianz: Innovating around microinsurance in India

Homework and next session

Agenda

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Provide an overview of relevant themes and literature

Give practical advice based on cutting-edge research

Introduce BoP experts

Learn from leading companies

Support the development of an own business idea

Objectives and approaches

Background readings

Online teaching modules

Instructors from BoP Learning Labs and WBCSD

Company experts

Homework and feedback

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4Expectations: What skills and expertise? 4

Feedback after the course!

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5Structure of the course

1. Introduction to inclusive business

2. Market understanding and marketing

3. Last mile distribution

4. Financing

5. Partnering

6. Results measurement

6 modules on critical topics

1. Pre-reading

2. Online session (Wednesdays @ 3pm CET)

3. Post-session work

3 elements per module

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6Expectations: areas of interest

Feedback after the course!

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7Interaction during the online course module

Chat Polls Request for input

• You can always share comments or questions via chat

• The facilitator will take note of questions and raise them to the presenter or respond to them in the chat

• We will gather feedback from you in quick polls from time to time

• Just select „agree“ or „disagree“ from the status menue

• We may ask individual participants to share their experience at specific points.

• You‘ll have to unmute your speakers to talk.

Please don‘t use the

webcam!

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8Participants and coaches

Ugo Pica-Ciamarra

FAO

Italy

David Becker

E.on

Germany

Erika Gomez

The Coca-Cola Company

USA

Stefan Koch

Bayer

Germany

Nicolas Marang

L‘Oreal

France

Hanna-Riitta Kurittu

Niras

Finland

Nicolas Chevrollier, BoP

Inc.

Nicolas Chevrollier, BoP

Inc.

Filippo Veglio, WBCSD

Fernando Casado,

GlobalCAD

Christina Gradl, Endeva

Christina Gradl, Endeva

Your coach!

LinkedIn Group: Succeeding at the

Base of the Pyramid

Henrik Mortensen

Arla Foods

Denmark

Sara Ballan, DI

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9Q & A

???

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Introduction to inclusive business

Allianz: Innovating around microinsurance in India


Agenda

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1111Background Readings Module 1

Module 1: Introduction to Inclusive Business InnovationBoP Learning Lab Germany –Endeva

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12Starting point: A change in perspective

... from patients ... to agents ... with unused potential

People in poverty look for and

offer opportunities to participate

in value chains as• consumers• producers• employees• entrepreneurs

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13Creating value for all

Value for business• Winning new customers• Expanding the workforce• Strengthening supply and delivery

chains• Creating innovations

Value for people living in poverty• Increasing incomes• Meeting needs• Increasing productivity

DefinitionInclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners at various points in the value chain. They build bridges between business and the poor for mutual benefit.

Source: UNDP (2008) Creating Value for All

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14Mixed business cases required

Cost

Profit

Mainstream Investment

Cost

AddedValue

Inclusive Business

• Profits• Access to new markets• New innovation processes• License to operate• Dialogue with governments• Brand building• Employee recruiting, retention

and motivation• Training and leadership

development

Source: Stefan Koch

Is this true for your own business

idea?

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15

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One approach – many names

Inclusive BusinessSocial Business

Producers Consumers

Pri

vate

Sec

tor

Pu

bli

c S

ecto

r

Use

d m

ore

by p

eopl

e fr

om t

he:

Stresses the inclusion of poor people as:

Base of the Pyramid / Bottom of the Pyramid / BOP

Opportunities for the Majority

Pro-poor Value Chain Development

Making markets work for the Poor /M4P

Business LinkagesFull Economic Citizenship

Responsible Supply Chain Management

Sou

rce:

End

eva

(201

0) In

clus

ive

Bus

ines

s G

uide

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16A global opportunity

Global Income Pyramid Population growth

Source: Endeva (2010) Inclusive Business Guide

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17A US$5 trillion market

Source: WRI/IFC (2007) The Next 4 Billion

BoP Market by segment ... and by sector

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18Massive value creation opportunities

No access Poverty penalty

• No sanitation: 2,6 bln people• No electricity: 1,6 bln people• No internet: 5,4 bln people

• Higher cost: e.g., electricity in rural Bangladesh costs 1.60EUR/kwh

• More effort: e.g. avg 2h/day to fetch water in communities South Africa

• Poor quality: e.g., doctors in rural areas are only available half the time in India

Value creation opportunity through new business models

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19Catering to low-income consumers across sectors

Construction

Cemex Patrimonio hoy

Insurance

Allianz micro insurance

Health care

CFW Health Stores pharmacies

Energy

Solar home systems

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20Buying from low-income suppliers

Agriculture

Usually, low-income people also get

involved as employees and entrepreneurs.

Manufacturing / Crafts Tourism Market data

Natura cosmetics Ekos line

Hathay Bunano handcrafted toys

Community-based tourism

Market research via cell phones

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21Challenges stand in the way

• Little granular data about low-income markets• Few market research and consulting services

• Necessary regulation is missing• Red tape, administrative burden, corruption

• Roads are poor, few logistics services and distribution network

• Energy, water and ICT networks are poor

• Limited training and education of the target group• Limited access to information

• Credit, insurance, and banking are mostly unavailable

• People live in a cash economy

Sou

rce:

UN

DP

(20

08)

Cre

atin

g V

alue

for

All

– S

trat

egie

s fo

r D

oing

Bus

ines

s w

ith th

e P

oor

Which of these constraits are

most relevant for you?

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22Innovative business models are required

Solutions

Sou

rce:

UN

DP

(20

08)

Cre

atin

g V

alue

for

All

– S

trat

egie

s fo

r D

oing

Bus

ines

s w

ith th

e P

oor

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23Q & A

???

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Introduction to Inclusive business

Allianz: Innovating around Microinsurance in India


Agenda

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25Michael Anthony, Allianz Re

Michael Anthony is a business development expert in emerging markets and was instrumental in building the almost 20-million people microinsurance portfolio of Allianz Group in several markets in Africa and Asia.

He now works with Allianz Reinsurance in Zurich to develop crop insurance markets in developing countries and is being trained as an agricultural reinsurance underwriter. One of his assignments is the project leadership of RIICE, a public-private partnership to use remote sensing technology in the development of crop insurance.

Questions•Which difficulties did you encounter when entering the low-income market in India?•Which role did CARE International play in developing your microinsurance business model?•How did you manage to integrate the resulting business model into Bajaj-Allianz’ mainstream business?

???

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Introduction to Inclusive business

Allianz: Innovating around Microinsurance in India


Agenda

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27Homework: Approach

Develop your own idea!•Start from an inclusive business opportunity you would like to develop•Over the 6 modules of the course, you will complete a high-level business plan for your idea•After each step, you will receive feedback from your coach•In the end, you will have a concrete business model and action plan.

Output 1: Action Plan

Output 2: Business model canvas

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2828Questions

Module 1: Introduction to Inclusive Business InnovationBoP Learning Lab Germany –Endeva

1) How do you aim to create value for low-income communities?

2) Who are your target customers?

3) What are benefits for your own company from the business?

4) Which actions are needed to clarify these questions?

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29Q & A

???

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30Next session: Market understanding and marketing

Online module: Wednesday

Sep 253 pm CET

http://www.endeva.org/applying/current_projects/building_electricity_kiosks_in_madagascar/