waag - public session presentation

23
@bart tunnissen - director projectdevelopment @waag.org Lebanon - Oktober 2014 maandag 20 oktober 14

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Page 1: Waag - Public Session Presentation

@bart tunnissen - director [email protected]

Lebanon - Oktober 2014

maandag 20 oktober 14

Page 2: Waag - Public Session Presentation

faq mission Creative technology for social innovation

organisation Founded in 1994; 50+ people: developers, designers, researchers

Amsterdam based.

Activities Researching culture, behavior & technology Developing prototypes and pilots Organizing interventions & events

Method Users as designers Open innovation Co-design Community driven

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dna - open innovation

neue kombinationen

users asdesigners

the hidden narrative

code =

culture

learning by making

critical design

if you can’t open it, you don’t own it

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invention - creation - innovation

Ideas Needs

Requirements Solutions

ArtScience

TechnologySociety

Que

stion

Pilot

Prototype

inventioncuriosity driven research

creationcontext driven research

innovationtransformation research

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////

Top down and systemic approaches European Innovation Partnerships, Smart Cities, FI-PPP; Cloud strategy; challenge.gov eHealth, eGovernment

Community Competition

Distributed

Central

network effect of the internet

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////

Bottom-up and grassroots (open source, open data, open hardware, open knowledge) P2P, e-democracyCAPS, Internet Science, DSI, web entrepreneurship

Top down and systemic approaches European Innovation Partnerships, Smart Cities, FI-PPP; Cloud strategy; challenge.gov eHealth, eGovernment

Community Competition

Distributed

Central

network effect of the internet

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relations - networks are globalPartners

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innovation starts local

Knowledge institutes

Developer hubs

Accelerators

Innovation labs

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collaboration

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waag labs

Creative Care Lab!Wet Lab!

Open Design Lab!

Future Internet Lab!

Creative Learning Lab!

Urban Reality Lab!

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if you can’t open it, you don’t own it

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dismantle a phone...

“we want 21st Century technology without 19th Century ethics” George Monbiot, The Guardian , 24 September 2013

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battery in smartphone

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battery in raw state

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found in...

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Africa

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strategy

B2C

Evangelist Lohas Drifters

concerned & readymajor action taken

aware & critical minor action taken

convenience & image

intent to take action

June 2013 2014-2015 2016

“I think it is easy for companies to do good”

“I want to live greener”

“I can make a difference”

“I cannot make a difference by myself” “I will do it

if you do it”

“I understand it is difficult”

B2B NGO's Government institutions Companies

Sales strategy long term

Product strategy licencing own development

Sales 10.000 phones 100.000 phones

Marketing message "buy fair" "buy trendy"

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clear deal

Each cube represents one euro of Fairphone’s

consumer price and is based on the production

of 25,000 phones. Figures are for 2013 and have

been rounded for ease of reading.

Visit fairphone.com/2013/09/12/costbreakdown

where you can download a Key for a detailed

explanation.

= €1

Consumer price €325

Average Value Added Tax - € 56.50

Levies/tax (private copying , WEEE) - € 6.75

Resellers’ margin - € 4.25

Average Sales Price € 257.50

.com

At Fairphone, we want to start a movement to change the way products are made. But just as importantly, we want to make a change through the way we do business. That means being open and transparent about what we do and where we expect our money (and yours) will go. So, here's what happens to the €325 for every Fairphone sold.

Cost %reakdown of

the First Fairphone

Interventions )DLUSKRQH�SXWV�VRFLDO�YDOXHV�UVW�LQ�RXU�GHFLVLRQ�PDNLQJ�process, which affects the entire production of this phone. We also actively seek ways to drive sustainable change in the supply chain and life cycle of our smartphone. We call these our “interventions”. Our LQWHUYHQWLRQV�IROORZ�WKH�DFWLRQ�DUHDV�RI�RXU�ORQJ�WHUP�URDG�PDS�WR�D�IDLUHU�HFRQRP\��IURP�VRXUFLQJ�FRQIOLFW�IUHH�PLQHUDOV�IURP�'5�&RQJR�WR�IDFLOLWDWLQJ�EHWWHU�H�ZDVWH�solutions.

€ 22

LASTING VALUE��� ,QLWLDWLYHV�WR�UHF\FOH�H[LVWLQJ�H�ZDVWH��� &RRUGLQDWLRQ�IRU�)DLUSKRQH�H�ZDVWH

PRECIOUS MATERIALS€ 3.75 Stakeholder meetings, participation � &RQIOLFW�)UHH�7LQ�,QLWLDWLYH��&)7,��DQG�� Solutions for Hope, and monitoring initiatives for responsible sourcing

SMART DESIGN€ 4 Open source development, community support, Fairphone operating system

MADE WITH CARE€ 7.50 Made with Care Program€ 1.93 Worker welfare fund ($2.50)

€ 5 Reserve (for unexpected stuff), investments and� QDQFLQJ�FRVWV

Initial Operating Result € 5

€ 4.75 Project development, prototyping

�������3HUVRQQHO�FRVWV��RIFH�VSDFH��,7��WUDYHO

€ 11.25 Legal, accounting, other outside service providers

€ 6 Events, communications and public engagement

€ 5.25 Webshop hosting, payment facilities, customer support

Operations € 45

€ 185

€ 129.75 Design, engineering, components, manufacturing and assembly costs

��� &HUWLFDWLRQV��HJ��&(��*&)��5R+6��)&&��5($&+�� and testing

€ 1 Packaging and (repair) manuals

€ 2 Inbound logistics

€ 25 Royalties to patent holders, IP licenses

€ 18.25 Estimated warranty costs (including spare parts, labor and transport)

Product

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towards a fair market

Fairer

Conflict free coltan and tungstenOpen source phone Community Living wages 2nd tier Co-op in mining

Fair Trade Cobalt Transparent ChainFair Trade Gold

Worldwide market Massive social impact

conflict free tinLiving wages 1st tier End-of-chain closed loop

FairPhone hits the market

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Social entrepeneurship

Page 2Updated October 2014 www.fairphone.com

What are Fairphone’s main areas in creating social impact?

Fairphone at a glance

Started as a campaign within Waag Society in 2010;

registered as an independent social enterprise in 2013

Using a smartphone as a storytelling device to reconnect

consumers to their products and uncover how things are made

50,000 Fairphones sold (and counting)

31 employees with 14 different nationalities and

10 languages spoken

100% independently ƒPCPEGF�PQ�FQPCVKQPU�QT�

venture capital) to preserve our social values

Surrounded by an enthusiastic community of Fairphone owners, almost 70,000 Facebook fans, 14,000 Twitter

followers and 42,000 newsletter subscribers

Based in Amsterdam, the Netherlands

Fairphone at a glance

Started as a campaign within Waag Society in 2010;

registered as an independent social enterprise in 2013

Using a smartphone as a storytelling device to reconnect

consumers to their products and uncover how things are made

50,000 Fairphones sold (and counting)

31 employees with 14 different nationalities and

10 languages spoken

100% independently ƒPCPEGF�PQ�FQPCVKQPU�QT�

venture capital) to preserve our social values

Surrounded by an enthusiastic community of Fairphone owners,

almost 70,000 Facebook fans, 14,000 Twitter followers and

42,000 newsletter subscribers

Based in Amsterdam, the Netherlands

How did you get funding? Who were your investors?(CKTRJQPG�KU�EQORNGVGN[�KPFGRGPFGPVN[�ƒPCPEGF��9G�UVCTVGF�as a project within Waag Society, a research institute that invests in creative technology projects for social development. At that time, Fairphone received funding from Waag, Stichting Doen and the NCDO (about 300,000 euros over two and a half years). We also received 10,000 euros as winner of the ASN Bank World Prize. After becoming a social enterprise and working to produce the phone, we received 18,000 euros from Bethnal Green Ventures to participate in a startup boot camp in London and develop our business proposition, plus 400,000 euros in private funding to cover operational costs until the start of pre-orders in May 2013. Since that point in time, our operations have been funded by the sales of our phone. #UKFG� HTQO�ƒPCPEKCN� EQPVTKDWVKQPU�� (CKTRJQPG� JCU� TGEGKXGF�support (in time and commitment) from a number of partners, including Schrijf-Schrijf, ActionAid, Stichting Doen, Vodafone, KPN, Rabo Mobiel, GSM RetourPlan, GSM Loket and many other individuals and organizations.

Fairphone is working to achieve our ambitions step by step, HQEWUKPI� QP� CEVKXKVKGU� CPF� KPVGTXGPVKQPU� YKVJKP� ƒXG� EQTG�action areas:

Mining

We want to source materials that support local economies, not armed militias. We’re starting with conflict-free minerals from the DR Congo.

Design

We’re focusing on longevity and repairability to extend the phone’s usable life and give buyers more control over their products.

Manufacturing

Factory workers deserve safe conditions, fair wages and worker representation. We’re working closely with manufacturers that want to invest in employee wellbeing.

Life Cycle

We’re addressing the full lifespan of mobile phones, including use, reuse and safe recycling.

Social Entrepreneurship

We’re working to create a new economy with a focus on social values. By operating transparently and sharing the Fairphone story, we’re helping consumers make informed decisions about what they buy.

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