Social Innovation: How it really works Kriss Deiglmeier, CEO April 10, 2014 Wharton | San Francisco | Social Impact Conference
Jun 24, 2015
Social Innovation:How it really works
Kriss Deiglmeier, CEO
April 10, 2014
Wharton | San Francisco | Social Impact Conference
Text
The emergence of social as a modifier
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
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
Contemporary Social Innovations
CharterSchools
Microfinance Fair TradeEmissions
Trading
Socially Responsible
Investing
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)
Social EntrepreneursThe Great Man or Woman Theory
Social EnterpriseSelf-Sustaining Organization Theory
Social Capital Market
Microfinance
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.
Criteria differentiation
Innovation Criteria• Novelty- new to user, context or
application• Improvement- more effective or
efficient
Social Innovation Criteria• Sustainable• Just• Public Value
Social Innovation and Traditional Innovations
Social Innovation• Socially Responsible
Investing• Microfinance• Sustainable
Development(Amazon)
Innovation• The Internet• Hydraulic Fracking• Deep water Trolling
Stages of Innovation
Defining the Problem and Opportunity
IdeaGeneration
Piloting &Prototype
Diffusion &Scaling
Case Study – Microfinance
Lack of access to: • formal credit • financial
services• formal
financial sector
The Problem
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
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
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
State of Microfinance - Global View
• Over 12,000 MFIs • More than 94,000,000 borrowers total• 91 countries
• Data and Metrics• Organizational
Efficiency/IT Systems
• Scale and Reach
Technology’s Influence on Microfinance
The Story of M-Pesa: Problem
• Needed to deepen financial penetration into the unbanked community
The Story of M-Pesa: Idea Generation
• Utilized cross-sector community collaboration to be successful
The Story of M-Pesa: Pilot
• Adapted to practice on the ground
The Story of M-Pesa: Scaling
Established a network of agents
Set a bold goal
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
The Story of M-Pesa: Kenya Today
• Moves between $500-$700million per month (20% of Kenya’s GDP)
• 15 million active users
The Story of M-Pesa: Global Expansion
• Tanzania • Afghanistan
• South Africa• India
Commit to cross-sector collaborationSocial innovations require everyone’s involvement.
.
Save The Amazon Rainforest Organisation
Focus on your strategic lever
Social innovations grow as leverage points are identified and utilized.
Fair Trade Mainstream Markets
Never mistake a clear view for a short distance
Social innovations do not happen overnight.
Social Innovation Continuum
Source: kdeiglmeier
Stagnation Chasm
What can civil society do?
• Leverage trust, networks, and deep customer knowledge
• Ensure voice of customer is heard
• Provide long-term thinking
What can government do?
• Set effective policy, regulation, and rules
• Provide access to reach large number of customers
• Raise awareness
What can business do?
• Leverage assets, efficiencies, and resources (Financial, management, supply chain, etc.)
• Demonstrate rapid action
• Provide flexible funds
“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.”
@tidescommunity @kdeiglmeier
Kriss Deiglmeier
www.tides.org
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