FairWater - Business Model Analysis

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Fairwater

Addressing Water Scarcity through

Design, Technology & Business

Anni Hytti, Elina Lammintausta, Maud Bocquillod, Tushar Malhotra


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Content Credits / Disclaimer

All Pictures / Images / Data-Visualizations used in

the presentation have been taken from the sourcesmentioned in the references section (slide 35).


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"The wars of the next century will be about water.

- Ismail Serageldin, former Vice President, World Bank, 1999

"Fierce competition for fresh water may well become a

source of conflict and wars in the future."- Kofi Annan, former U.N. Secretary-General


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THE WATER PROBLEM

Background Context & Customers


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VLOM to the rescue?

Unicef, WHO and Indian Govt. developed the VLOM(Village Level Operation and Maintenance) model and

standards for hand-pumps in early 1980s (India Mark-II)

Assumption community ownership a more scalablemodel than centralized control. Mandated elaborate

community management structures

Idea was to develop and tap local supply chains andsmall-scale industry


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But VLOM failed in Africa


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Why VLOM failed in Africa?

Organizations, NGOs etc. tried to adopt the same modelin Africa, without success

Inexpensive but unreliable, high-maintenance pump

design. Little quality control

Lack of skilled labor and commercial supply-chains

Unfavorable govt. and regulatory policies and lack ofsupport infrastructure


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THE SOLUTION

Addressing water scarcity through Design, Technology & Business


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About Fairwater

Non-Profit based in Netherlands

Founded by Paul Van Beers, after extensive

experience and work in Africa on water projects

Owns and develops the BluePump design and

the BlueZone management model


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Fairwater aims to attack the problem of water-

scarcity and provide safe & sustainable water

solutions in the rural areas of the developingworld by:

Designing better technology: The Blue Pump

Designing better operating models: The Blue Zone

Fairwaters Value Proposition


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About Fairwater: Partners

Sponsors: JoinThePipe, Sanex, FairSport.org,

others

Implementation Partners: Millennium Promise,Swe-Gam, Global Resources Alliance etc.

Single manufacturing partner & distributor forbetter quality control: Boode B.V.


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THE BLUE PUMP

Designing better technology


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The Blue Pump is a more

durable, reliable, low-

maintenance, convenient

hand pump designed to

operate at greater depths

(100 m) with very good

water yield.


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Blue Pump: Features

BluePump Bottom Support (BS) system for durable

operation at greater depths (100 m)

No borehole casing needed

Durable POM piston without rubber or leather seals

Heavy-duty, durable, better designed key components:self-lubricating bearings, stainless steel rods and PVC

riser pipes etc.


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Blue Pump

Vs.

the Others


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Handpumps BluePump Duba AfriDev India Mark II

Cost (80m) 2500 8000 850 1000

Comfortable

Pumping Range

10-80 m 40-80 m 5-30 m 20-50 m

Max. Pumping

Range

100 m 100 m 45 m 80 m

Output at 30 m 15-20 L/min 15-25 L/min 15L/mn 15-20 L/min

Output at 80 m 10-15 L/min 10 L /min n/a 10 L/min

Maintenance

Requirements

Rare & Simple Moderate &

Complicated

Frequent &

Increasingly

Complicated

Frequent &

Increasingly

Complicated

Typical Repair

Costs

Fixed based

only ondistance

High Approx.

400 per repairtrip

Moderate-High Moderate-High


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THE BLUE ZONE MODEL

Designing the Business (Management / Operating) Model


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BlueZone Model: Project Selection

Fairwater, in collaboration with local partners, identifies

potential regions for creation of a Blue Zone. Focus on

rehabilitation projects.

A Blue Zone is a cluster of several BluePump projects -

clustering helps attain economies of scale

To ensure genuine commitment, Fairwater mandates

reimbursable initial investment from the local

implementation partner (2500 per pump)


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BlueZone Model: Operating Model

In response to the failing traditional VLOM

management model, Fairwater developed the

The A-B-C Operating Model

A. Local Agent or distributor supported by FairWater /

Global distributor

B. Professional local Back-up supported by the local

Agent

C. A single paid Caretaker from the community


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Caretaker from the community is responsible for day-to-day operation, check-ups and contacting the regionalback-up for assistance in case of a problem.

Fairwater, through the local partners, facilitates Fastrepairs at a Fair & Fixed cost based only on the distance

Faiwater supports local private sector and

entrepreneurship partners can market more productsand services (e.g. agricultural tools) after getting afoothold in community

BlueZone Model: Operating Model


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A check-up of a Unicef sponsored BluePump in Mozambique by the local

company "BlueZone", the country dealer for the BluePump.


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HOW WELL DOES FAIRWATER

FARE?

Insights from actual projects


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Oxfam BluePump Pilot

BluePump piloted in 2008-2011 in Turkana, Kenya:

1. Lack of existing skilled labour in the district capable

repairing hand pumps

2. Lack of commercial supply chains for sourcing spare parts3. Poor roads and inaccessibility resulting in very high costs

to repair pumps.

4. High dependence on external support to service or repair

pumps.

5. Economic circumstances of users and inability to pay forrepairs


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Oxfam BluePump Pilot

Initial teething troubles required design changes,

led to negative perception

Design improvements made At the end of thepilot BluePump perceptions positive, Oxfam

considered project a success, expanded scope

Not perfect but better than anything elseavailable!


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CURRENT STATE & FURTHER

DEVELOPMENT


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Over 400 Blue Pumps in 250 communities serving more than 150 000

people in Anglona, Burkina Faso, Niger, Kenya, Tanzania, Central Africa,

Gambia, Malawi & Mozambique


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Revenue / Funding

Funding through Sponsors Partners, Promotionalcampaigns, sporting events, product sales etc.

JoinThePipe.org

SMS Donations in Netherlands

Sanex percentage of sales, Facebook likes

On-Pump Advertising / Branding opportunities for

sponsors

Sponsoring a complete BluePump costs 2500


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Further Development

Already established Blue Zones can be used to

expand to other products / services. Fairwater

already exploring water-filters in certain zones

Licensing partnerships for technology to scale-

up operations and drive down costs

Exploring other business-models Safe Water

as a service?


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BUSINESS MODEL CANVAS


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1

VALUE

PROPOSITION

KEY RESOURCES CHANNELS

CUSTOMERSPARTNERS

REVENUE STREAMS / VALUECOST STRUCTURE

RELATIONSHIPSKEY ACTIVITIES

Provide safe, sustainable

& durable water solutionsin the rural areas of thedeveloping world by -

Designing bettertechnology - The BluePump

Designing betteroperating models - The

Blue Zone Partners: ABCguarantees a smoothflow of info fromcommunities toFairWater

Logistics partners:Boode B.V, Localimplementors

Partners: Co-creation (noinformation available oncosts, can be costly if trips

form the Netherlands isneeded).Communities: Self-service (cost non-existent,in a way, everything isdone for the benefit of thecommunities but throughpartners)

Niche:

Communities,

Partners (NGOs andprivate companies)

Donations from Sponsors through event campaigns, sales

partnerships etc.

Advertising / Branding opportunities for sponsors on the

pump

2500 per pump reimbursed to implementors

Training / Monitoring costs

Setting up operation andmaintenance

Monitoring performanceOrganising follow-uptrainingPartner selectionSponsor searchDeveloping design forpumpOutsource manufacturing

Sponsors

JoinThePipe, Sanex

etc.

Local

Implementation

Partners

Millennium PromiseProgram

Global Resources

Alliances

Mambo View Point

Christian ServiceCommittee

Swe-Gam

SADEER Africa

Founder

FairWater Trust Fund

Local partners in Africa

BluePump Technoogy

Osterwalders Business Model Canvas for FairWater


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FairWater - Business Model Analysis

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