negocios inclusivos: proceso de distribución (inglés)
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Fundació
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Negocios Inclusivos: proceso de distribución
II CONFERENCIA INTERNACIONAL DE NEGOCIOS INCLUSIVOS 2017
Entrepreneurs
are everywhere
Mission to create income and livelihood opportunities for poor rural households
Entrepreneurs
are everywhere F. Conor Riggs CODESPA, Madrid 23 Feb 2017 [email protected]
Building a Lifeline of Opportunity through Last Mile Delivery
1 WHO is iDE (in Bangladesh)?
2 WHAT do we do in Last Mile Delivery?
3 HOW might we transfer our results?
Today’s Conversation
1 WHO is iDE (in Bangladesh)?
Today’s Conversation
Country Programs
11 Asia, Africa, and Latin
America
Founded
1982
Portfolio
250 Projects in market and
private sector developed
Value 150 Million
Our Team
1,200+ Employees Worldwide
Donors 90
USAID, the Bill and Melinda Gates
Foundation, DFID, CIDA, and the
World Bank
Awards 10
International development
and design awards since
2004
Introduction to iDE
iDE Pillars
Start with People
Design to Context
Tailored to meet local contexts:
social, cultural, political, and
environmental. Focus on technology
designs that fit within the context of
each particular farm, village, region,
and country
Business Delivers
Mobilize private sector by building a
strong business case for marketing
to the poor. iDE creates financially
viable social enterprises that are
dedicated to social, environmental,
and financial goals
Results Rule
iDE is pioneering a dynamic cloud-
based information system that
connects every segment of our
operations
Using Human-Centered Design to
develop a deep understanding of
people’s lives to inspire our designs
and market-based ideas
iDE uses a market-oriented development model to improve the lives of the low-income groups. We seek to understand base-of-the pyramid customers, analyze market
constraints, and explore high-value market opportunities - with the ultimate goal of catalyzing pro-poor change that is sustainable, scalable, and inclusive.
AGRICULTURE FOR ENTREPRENEURS
MARKETS FOR WASH
ACCESS TO FINANCE
iDE’s Thematic Foci
2 WHAT do we do in Last Mile Delivery?
Today’s Conversation
Macroeconomic
‘Missing Middle’ between public funding/research and private investment leaves many low-income people
without supply
iDE’s LMD Job: Bridging the ‘Valley of Death’ through external investment
Microeconomic
Successful commercialization of a last mile business model faces significant risks before success can be
realized
“@iDE, we HEAR, CREATE & DELIVER for
inclusive businesses across PEOPLE,
PROCESS, PRODUCT & PERFORMANCE in
order to generate greater QUALITY, TRUST &
DE-RISKING from the ‘first’ mile to the ‘last’”
Our ‘Pitch’ to Inclusive Businesses
The Treadle Pump:
Last Mile Delivery
Success, or Failure?
(Depends on How You Look at It)
“A Startup is a temporary
organization in search of a
scalable, repeatable,
profitable business model.”
- Steve Blank & Bob Dorf, The Startup Owner’s
Manual
“A Startup is a temporary
organization in search of a
scalable, repeatable,
profitable business model.”
- Steve Blank & Bob Dorf, The Startup Owner’s
Manual
The effective ‘Startup’ for the
Last Mile ensures inclusion of
QUALITY, TRUST & DE-RISKING
iDE’s Last Mile Delivery Approach:
1) Build an Effective ‘Startup’
1. HEAR (Explore)
2. CREATE (Experiment)
3. DELIVER (Expand)
PEOPLE Appreciative Inquiry
PROCESS
Human-Centered Design
Making Markets Work for the Poor (M4P)
Strategic Partnerships Process
PRODUCT Agile Management /SCRUM
PERFORMANCE Adaptive Management
DCED Standard for Results Measurement
iDE’s ‘Startup’ Model @ BAN
Impact At-A-Glance (BAN 2016)
99, 997 + 105,045 Households Reached
Directly/Indirectly
$ 148 Avg. Increase in
Annual Income
11.8 Cost-to-Benefit
Ratio
499,885 +
524,174 Individuals Reached
Directly/Indirectly
FARM BUSINESS ADVISORS Freelance entrepreneurs are loosely
organized into a network that facilitates
supply of ag inputs and output mkting.
WASH-NUTRITION SELLERS Small business associations for WASH
MSMEs utilize Nutrition Sales Agents to
generate and capture demand
Last Mile Delivery @ iDE BAN (4,254 Active Entrepreneurs & Growing)
LOCAL SERVICE PROVIDERS Independent dealers incentivize local
entrepreneurs to buy ag machines and
provide rental services
490 1,631
318 1,815
FARM
BUSINESS
ADVISOR
Farm Business Advisors (490)
Reaching 100+k HHs in input & output marketing
1. HEAR 2. CREATE 3. DELIVER
● Figure out what makes a good intermediary in the value chain/market
● Uncover the barriers to doing it yourself (e.g. mobility, economies of scale)
● Develop & deliver training program ● Develop FBA typology/categories for rapid
monitoring & technical assistance ● Assess FBA networks - value add or not?
● Screen FBAs for QUALITY, TRUST & DE-RISKING
● Execute freelancing & dealership promotion to lead firms
FBA Network
Farm Business
Group
FBAs
Farmers
WASHNUT
WASH-Nutrition Sellers (1,631+318)
200k+ toilets sold + 50+k HHs nut access since 2014
1. HEAR 2. CREATE 3. DELIVER
● Conduct HCD deep dives ● Market mapping and value chain
analysis ● Understand latent demand for
upgrading ● Ensure mobility is understood
● Supported development of SaTo Pan - mass producible product, w/ American MNE
● Developed improved latrine product for mass production w/ Bangladeshi lead firm
● Supported lead firm with training for latrine producers ● Supported Nutrition Sales Agent pilot initiative
● Incentivized latrine producers to formalize ‘Sanitation Business Associations’ for aggregated demand
● Screen w/in SBAs for QUALITY, TRUST & DE-RISKING
● Connect SBAs to lead firm
Sanitation Business Association
Sanitation Business
Nutrition Sales Agent
LOCAL SERVICE
PROVIDER
Local Service Providers (1,815)
33k HHs served since 2013 and rapidly growing
1. HEAR 2. CREATE 3. DELIVER
● Value Chain Analysis ● HCD deep dives ● Exposure visits
● Modify machines based on user feedback ● Support marketing strategy by lead firms for machines ● Discover the details of the business model (e.g. size,
marginal returns, max coverage area) ● Establish credit mechanisms
● Explore domestic production for lead firms ● Screen LSPs for QUALITY, TRUST and DE-RISKING ● Incentivize dealers to drive the overall system
Machinery Dealers
LSPs
Block Managers
iDE’s “Firm to Farm” Last Mile Delivery Model @ BAN
3 HOW might we transfer our results?
Today’s Conversation
iDE’s “Firm to Farm” Last Mile Delivery Model @ BAN
DONORS Australian Aid Australian Red Cross Bill & Melinda Gates Foundation Department for International Development, United Kingdom Duke Energy Embassy of the Kingdom of the Netherlands European Union German Federal Ministry for Economic Cooperation and Development Overseas Private Investment Corporation Swedish International Development Cooperation Agency Swiss Agency for Development and Cooperation Thermofluidics Ltd. United Nations International Children’s Emergency Fund United States Agency for International Development Wellcome Trust World Bank
PUBLIC SECTOR PARTNERS
Agricultural Information Services Bangladesh Agricultural Development Corporation Bangladesh Agricultural Research Council Bangladesh Agricultural Research Institute Bangladesh Agricultural University Bangladesh Institute of Development Studies Bangladesh Institute of Nuclear Agriculture Bangladesh Rice Research Institute Department of Agriculture Extension Department of Fisheries Department of Livestock Services Department of Public Health Engineering Directorate General of Family Planning Bangladesh Government of Bangladesh
ACADEMIC PARTNERS
George Washington University Carnegie Mellon University
PRIVATE SECTOR AND FINANCE PARTNERS
A. R. Malik Seed Company (Pvt.) Limited ACI Godrej Agrovet Private Limited ACI Motors ACI Seed Acme Agrovet & Beverage Ltd. Action in Development Advanta Agrico Alim Industries Ltd. Electro Solar Power Ltd. EON Group Fishtech BD Limited Folia Getco Agro Vision Ltd. Grameen Intel Social Business Ltd. Grameen Jano Unnayan Sangstha Ispahani Agro Limited Ispahani Biotech Jagorani Chakra Foundation Janata Engineering Lalmoni Agro Ltd. Lal Teer Seed Limited Novartis Padakhep Manabik Unnayan Kendra Polygon Resources Rahimafrooz Renewable Energy Ltd. RFL Royal DeHeus Group Society Development Committee Syngenta The Metal (Pvt.) Ltd. TMSS United Finance Limited
(Some) Design Principles for LMD Growth
HEAR (Research & Learn) CREATE (Pilot & Pivot) DELIVER (Scale & Grow)
People RISK: Find “pre-trained” people in the market (lots of latent capacity from prev. work) QUALITY: Find pre-existing actors/players wherever possible
QUALITY: Ensure staff understand changing roles over time TRUST: Maximize network ‘routines & spaces’ & get out of the way!
TRUST: Ensure staff understand time for exit RISK: Deeply understand lead firms’ staff motivations & politics
Process TRUST: Structure pre-teaming agreements RISK: Maximize sacrificial concepts thinking (A/B testing)
QUALITY: Utilize “cross-cultural” tools RISK: Structure ‘pessimistic’ deals rather than ‘optimistic’ ones (& demand pragmatism)
RISK: Scale your (semi) digital system/model early - information gaps happen fast!
Product RISK: Understand whether invention risk vs. customer/mkt risk (or both!)
QUALITY: Aggressively target not only customer journey but LMD actor journey TRUST: Maximize repetition during piloting
RISK: Stay out of market as much as possible
Performance QUALITY: Focus on speed of research+learning cycle
QUALITY: Pay less attention to scale numbers, and more to customer/LMD actor satisfaction & experience
TRUST: Ensure REAL RELATIONSHIPS have been established between lead firms and LMD actors
How to Hear, Create and Deliver on LMD
● Understand the TYPE(S) of RISKS @ BoP
● Invest in NGOs’ skill base
● Start w/ existing actors
● Capture systemic changes - multiple actors are changing simultaneously!
● Expect only SEMI-digital solutions
● Don’t expect to do it all at once - sequence your partnerships over time
● Don’t come too late! Start
partnering EARLY and OFTEN
The Do’s The Don’ts
How to Hear, Create and Deliver on LMD
● Demand compelling STORIES, not
just dry data ● Adopt a PORTFOLIO APPROACH to
LMD partner recruitment & retention ● Accept a HIGHER LEVEL OF EFFORT
than ‘usual' ● Leverage ORGANIC NETWORKS
● Don’t put your eggs in one
basket! WE (i.e. NGOS) USUALLY FAIL!
● Don’t be too patient or
impatient! Build relationships that last to figure this out!
The Do’s The Don’ts
“@iDE, we HEAR, CREATE & DELIVER for
inclusive businesses across PEOPLE,
PROCESS, PRODUCT & PERFORMANCE in
order to generate greater QUALITY, TRUST &
DE-RISKING from the ‘first’ mile to the ‘last’”
Our ‘Pitch’ to Inclusive Businesses
The Treadle Pump:
Last Mile Delivery
Success, or Failure?
Did We improve QUALITY, TRUST, & DE-
RISKING in the market? At what levels?
Entrepreneurs
are everywhere
Mission to create income and livelihood opportunities for poor rural households
Entrepreneurs
are everywhere F. Conor Riggs CODESPA, Madrid 23 Feb 2017 [email protected]
Building a Lifeline of Opportunity through Last Mile Delivery
www.ideglobal.org [email protected]
Copyri
ght
© 2
014 p
or
Fundació
n C
OD
ESPA.
Todos los d
ere
chos r
eserv
ados
www.codespa.org