Working Together for the Wellbeing of the Poor

Inclusive Business in Emerging Markets

World  Vision  Interna/onal  April  2012  

ADP (Area Development Program) Eco-system

Eco-system – child focused

Eco-system – phases and time frames

Eco-system – the model

Child-­‐focused  Children  are  included  as  agents  of  change  in  the  communi8es  

Community-­‐based    ADP  design  and  implementa8on  is  based  on  community  needs  and  priori8es  

Long-­‐term    Commitment  to  long-­‐term  funding  and  involvement  with  communi8es  –  upto  15  years  

Mul/-­‐sector  Interven8ons  address  the  mul8ple  causes  of  poverty  and  injus8ce  

Sustainable    Empowered  communi8es  are  able  to  sustain  their  own  development  

Mul/ple  funding  sources  Funding  comes  from  a  combina8on  of  public  and  private  funds  as  appropriate    

Empowering  Building  the  capacity  of  communi8es,  and  empowering  them  to  carry  out  their  community  development  processes.

World Vision Global presence  

Operating in 98 countries

100 million beneficiaries

44 000 employees

Revenue of USD 2.8 billion

1000 communities in excess of 1 million beneficiaries

World Vision’s presence in India

Over 6700 communities covering 147 districts across the country

Challenges within the eco-system - Overview

•  Nutrition - hunger, malnutrition

•  Health - immunization, water, sanitation, hygiene

•  Economic Development - poverty, livelihood, sustainability

•  Agriculture - food security, climate change

•  Education - literacy, school drop outs

•  Child  Protec8on  -­‐  child  abuse,  child  labor,  trafficking  

•   Environment  -­‐  waste  management,  contamina8on,  conserva8on    

•   Gender  -­‐  empowerment  and  gender  balance  

•   Disability  -­‐  s8gma,  lack  of  opportuni8es  

•   Peace  building  -­‐  conflicts,  do  no  harm  

BASE OF THE PYRAMID

The  Base  of  the  Pyramid  (BoP)  is  the  largest  but  poorest  socio-­‐economic  group  worldwide  with  over    4  billion  people;  they  are  economically  ac8ve  as  consumers,  producers,  entrepreneurs  and  employees    

WORLD ECONOMIC PYRAMID Overview  of  market  segments,  by  annual  income  (in  USD  per  capita,  PPP  2005)  

Most  companies  focus  on  mature  and  emerging  markets,  while  the  huge  market  of  4  billion  people  living  on  less  than  USD  3,260  a  year  goes  largely  untapped  

source: UN World Development Reports

Models of engagement between NGOs and private sector

Conclusion  Relevant  proposi8ons  for  World  Vision’s  involvement  in  BoP  ini8a8ves  are  core-­‐business-­‐to-­‐core-­‐business  collabora8on  and  convening  various  stakeholder  groups  based  on  convergence  of  issues  

Model   Proposi/on  

1.  conventional charity   §  donations: fiscal benefits  §  employee sponsorships: employee motivation  §  coverage & communication: press info & general image  

2.  corporate social responsibility  

§  corporate sponsorship  §  specific projects with linkage to corporate focus  §  involvement of resources (financial, goods-in-kind, people)  

3.  core business collaboration

§  corporate products (e.g. dairy products)  §  services (e.g. forming dairy cooperates for economic

development)  §  connecting the supply chain / distribution / sourcing network

of WV and the corporate in the same geographies  

4.  convergence on issues   §  cluster of various private and public sector stakeholders (NGOs, local business, multinationals, governments)  

§  converge around specific issue (e.g. health & nutrition)  §  convenor defines issue/scope, stakeholders, geographies,

structure and initiates collaboration  

tran

sac/on

al  

transforma/onal  

BoP  proposi/ons  source: team analysis / Arjen Joosse (2011)

OPPORTUNITIES

Areas of biggest opportunities for BoP collaboration

According  to  research  the  winners  of  collabora8on  and  innova8on  will  be  convening  stakeholders  across  various  eco-­‐systems  with  convergence  on  issues  

source: synthesis of frameworks by Accenture Development Partnerships (2011), Convergence Economy; and Booz & Company (2008), Megacommunities

Next game-changers will come through:

Collabora'on  

Convergence  Convening  

Game-changers & innovation

ShiB  to  New  

Innova/ve  Business  Models  

Successful companies must reinvent their processes Prahalad (University of Michigan): we need to focus on Business Process Architecture Change

• children  • parents  • sponsors  • donors  • staff  • partners  •  investors  

Focus  on  the  Individual  

• exis8ng  resources  • new  resources  •  reconfigured  resources  • knowledge  and  analy8cs  • networks  •  leveraged  owned  assets  •  leveraged  other  assets  

Focus  on  Resources  

Reinven/ng  Business  Processes  

Strategy  

*  Informa8on  &  Communica8on  Technology  

*  Supply  Chain  

Finance  &  Treasury  

People  &  Skills  

* according to author ICT and Supply Chain are predicted as most important areas for business process reinvention in the next decade source: C.K. Prahalad & M.S. Krishnan (2008), The New Age of Innovation (University of Michigan)

Shift from focus on transactions and interactions

Shift to focus on responsiveness

and events

Shift from pure aid with single

resources

Shift to co-creation with

mixed resources

Opportunities for companies to interact – For example

Recycling

Forestry

Waste management

Cleantec

Solar power

Wind power

High-tech solutions

ICT4D

Virtual learning

Pollution

Drinking water

Irrigation

World  Vision’s  value  proposi/on  

•  World-­‐class  grass-­‐root  knowledge  of  the  BOP  markets    

•  Access  to  more  than  millions  of  people  in  90+  countries  

•  Innova8ve  ways  of  delivering  the  services  to  under-­‐served  

segments  

•  Hands-­‐on  inclusive  co-­‐crea8on  with  the  local  communi8es  

•  Ethical,  sustainable  and  scalable  development    

What will a partnership look like? – Overview

Opportuni/es  for  companies  

•  Apply  their  core  competencies  –  innova8ve  approaches  

•  Contribute  to  reducing  poverty  and  social  development  

•  Engage  in  a  new  business  models  accessing  new  markets  

•  Enjoy  increased  longer-­‐term  outcomes  

•  Introduce  locally  applicable,  replicable  and  low-­‐cost  solu8ons  

•  Network  and  collaborate  

Industry   Sample  Partnerships  Agricultural  Inputs     •  Iden8fy  and  provide  products  and  services  that  improve  crop  quality  (e.g.,  irriga8on  equipment),  

specifically  for  small  scale  or  low-­‐income  farmers  or  for  environmentally  sustainable  farming  methods  • Provide  training  to  promote  beger  use  of  products  and  farming  prac8ces  

Banking,  Finance,  and  Insurance     • Banks  provide  savings  programs  or  micro  financing  • Banks  provide  small  business  or  entrepreneurial  training  •  Insurance  companies  provide  life,  health,  or  crop  insurance  geared  towards  low-­‐income  consumers  

Basic  Materials  (e.g.,  mining,  oil)     • Pay  for  social  services  (e.g.,  water,  educa8on,  health  posts)  in  areas  of  opera8ons  •  Implement  environmental  sustainability  projects  as  a  part  of  social  mandate  • Provide  skills  training  and  employment  programs  

Retail  &  Wholesale     •  Strengthen  social  services  (e.g.,  health,  educa8on)  in  communi8es  where  they  are  sourcing  to  make  sourcing  sustainable  in  the  long  term  

•  Incorporate  environmentally  sustainable  sourcing  methods  for  crops  being  sourced  • Provide  agricultural  extension  services  or  training  for  sourced  products  to  improve  crop  quan8ty  and  quality  

• Adopt  fair  trade  or  organic  cer8fica8ons  to  improve  environmental  impact  and  poten8ally  increase  profit  margins  

• Provide  access  to  informa8on  (e.g.,  pricing,  technical  advice)  for  farmers  so  that  they  can  improve  the  quality  of  their  crops  and    have  beger  nego8a8ng  power  with  middlemen  

Consumer  Goods  (e.g.,  food,  personal  products)  

• Any  projects  noted  in  Retail  &  Wholesale  (above)  when  company  is  sourcing  products  • Provide  foods  that  fight  malnutri8on  (e.g.,  micronutrient  biscuits  or  “sprinkles”)  • Promote  usage  of  health-­‐related  products  (e.g.,  soap,  condoms)  through  health  campaigns  with  government  or  NGOs  

(Accenture, 2012)

What can a partnership look like? – Overview

(Accenture, 2012)

Industry   Sample  Partnerships  Entertainment  &  Leisure  (e.g.,  hotels,  travel  companies,  restaurants)    

•  Source  food  locally  • Train  local  labor  force  in  hospitality  

Healthcare     • Build  health  care  plakorms  that  can  reach  hard-­‐to-­‐reach  rural  popula8ons  by  making  services  more  mobile  (e.g.,  telemedicine)  

• Create  innova8ve  healthcare  technologies  to  serve  low  income  consumers  with  quality  products  and  services  

• Pharmaceu8cal  companies  improve  supply  chains  to  reach  more  rural  markets  Industrial  Goods  (e.g.,  construc8on,  cement)    

•  Iden8fy  and  cater  to  needs  of  low-­‐income  customers  (e.g.,  lack  of  savings  or  financing)  in  order  to  serve  their  needs  and  increase  sales  

Manufacturing     • Provide  HIV/AIDS  tes8ng,  awareness,  and  educa8on  to  workers  or  informa8on  on  other  health  related  campaigns  

Media,  Adver8sing,  or  Public  Rela8ons  

• Provide  input  on  running  effec8ve    behavior  change  or  awareness  campaigns  (e.g.,  health,  HIV/AIDS)  • Provide  media  coverage  of  events  

Technology     •  Innovate  new  products  and  services  that  serve  the  needs  of  low  income  consumers  (e.g.,  solar  lamps)  • Promote  ability  to  make  social  services  more  mobile  or  virtual  (e.g.,  virtual  classrooms,  agriculture  and  health  data  via  cell  phones)  

•  Support  students’  technology  educa8on    Telecommunica8ons     • Provide  informa8on  on  pricing,  weather,  and  farming  techniques  via  a  paid  subscrip8on  service  over  

mobile  phones  • Provide  mobile  health  updates  via  text  message  

Transporta8on  (e.g.,  airlines,  car  companies)    

•  Innovate  new  products  that  serve  low  income  consumers  (e.g.,  Tata  Nano)  •  Innovate  ways  to  get  transporta8on  products  into  the  hands  of  low  income  consumers  (e.g.,  financing  of  motorbikes)  

Business  Services   • Tap  unemployed  youth  to  provide  Business  Process  Outsourcing  services  –  where  youth  work  at  computer  centers  on  simple  back-­‐office  data  tasks  for  larger  outsourcing  firms  

What will a partnership look like? – Overview

(Accenture, 2012)

• Philips  Ligh8ng  created  a  solar  lantern  that  provides  rural,  off-­‐the-­‐grid  communi8es  with  access  to  light  which  improves  the  ability  to  study,  provide  healthcare,  and  perform  livelihood  ac8vi8es  amer  dark  

• DGIS  (The  Dutch  government’s  interna8onal  development  agency)  provided  €24,000  (~$32K  USD)  to  pilot  the  project  in  rural  Ghana  in  conjunc8on  with  WV  Ghana  

• WV  Ghana  and  their  microfinance  arm,  APED,  worked  with  Philips  to  iden8fy  and  loan  funds  to  retailers/sales  agents  who  sold  the  products  to  buyers  in  local  communi8es  

A  nurse  aJends  to  a  pa/ent  with  a  Philips  lantern  

Students  near  Bolgatanga,  Ghana  learn  with  the  aid  of  a  Philips  lantern  

What will a partnership look like? – Philips

• Dimagi,  a  US-­‐based  somware  company,  created  a  mobile  applica8on  that  allows  healthcare  workers  to  track  pa8ent  data  and  access  health  care  informa8on  

• USAID  funded  the  development  of  Dimagi’s  mobile  applica8on,  WV  provided  the  healthcare  content,  and  the  Government  of  India  healthcare  workers  used  the  phones  to  improve  quality  of  service  to  women  and  children  

• Current  plans  are  for  WV  India  and  the  Government  of  India  to  scale  this  project  to  new  areas  

(Accenture, 2012)

mHealth  applica/on  

Government  of  India  Asha  health  workers  

What will a partnership look like? – Dimagi

(Accenture, 2012)

•  IDE  Bangladesh  iden8fied  a  market  need  for  a  technology  to  improve  field  water  management  for  rice  cul8va8on  and  iden8fied  a  plas8c  pipe  technology  called  “alterna8ve  werng  and  drying”  (AWD),  developed  by  the  Interna8onal  Rice  Research  Ins8tute,  that  could  fill  that  need  

•  IDE  partnered  with  Ha8m  Industries  Limited,  a  plas8cs  pipe  company,  to  develop  the  pipes,  produce  them  at  scale  in  Bangladesh,  and  market  the  finished  product  

•  Ha8m  Industries  Limited  gained  a  new  product  and  revenue  stream  

 •  Farmers  have  seen  a  reduc8on  in  costs  due  to  a  20%  

reduc8on  in  water  required  as  well  as  5-­‐7%  increase  in  yield  due  to  more  effec8ve  management  of  available  nutrients  and  increased  8llers  

What will a partnership look like? – IDE & Hatim Ind.

(Accenture, 2012)

•  Coca-­‐Cola  worked  with  WV  India  to  run  several  water  programs  that  would  improve  access  to  water  in  villages  and  publicized  these  dona8ons  through  local  and  na8onal  media  outlets  

 •  Therefore  Coca-­‐Cola  along  with  its  boglers  Amrit  Boglers  Pvt.  Ltd.  and  Brindavan  Boglers  Pvt.Ltd  has  

partnered  with  World  Vision  India  in  the  construc8on  of  20  rainwater  harves8ng  tanks  in  the  villages  of  Nindura  Block,  Ugar  Pradesh.  This  interven8on  is  aimed  at  enhancing  the  irriga8on  facili8es  and  has  led  to  increase  in  the  water  table,  providing  easy  access  to  water  through  tube  wells,hand  pumps  and  wells.  

What will a partnership look like? – Coca Cola

CASES

Most prominent examples of World Vision’s involvement in BoP initiatives

Ini/a/ve   Partners   Impact  /  catchment  

Descrip/on  

§ Rural  Access  to  Clean  Water  

§ Zenon  Environmental  Inc.  (now  GE),  Eureka  Forbes,  WV  Canada,  WV  India  

§ Water  for  44.000  people  in  India  

§ Completed:  ini8ated  in  2006,  USD  230k  programme  to  increase  access  to  clean  drinking  water  for  rural  communi8es  while  crea8ng  income-­‐genera8ng  ac8vi8es  for  women  and  youth  

§ TopSector  Food  &  Agro  

§ FrieslandCampina,  World  Vision  Netherlands  

§ Food  for  people  in  Ethiopia,  Vietnam,  India  

§ Early  discussions:  collabora8on  on  issues  related  to  /  supply  of  child  nutri8on  in  emerging  markets  with  one  of  largest  global  dairy  coopera8ves  

§ Grow  Business  and  Improving  Women  &  Child  Health  

§ UN  Founda8on/EWEC,  World  Vision  through  PMNCH,  various  mul8-­‐na8onals/corporates  

§ Global,  focus  on  Africa,  Asia,  La8n  America  

§ Proposal:  proposal  “Growing  Business  and  Improving  Women’s  &  Children’s  Health”  for  every  woman  every  child  in  coopera8on  with  health  related  companies  and  other  stakeholders  

§ Made  In  Canada  Farmers  Ini8a8ve    

§ Canadian  Food  &  Agro  Sector,  WV  Canada,  various  WV  field  offices  

§ Livelihoods  &  food  security  in  various  countries  

§ Ini8a8ng:  assessment  on  how  to  connect  the  Canadian  agricultural  industry  to  BoP  farmer’s  value  chain  in  the  field  

§ Nutririce     § DSM,  ADB,  WVI  Health  &  Nutri8on,  various  SOs  (Canada,  Switzerland,  Taiwan,  Netherlands)  

§ Food  in  several  countries,  including  China  and  DPRK  

§ In  progress:  collabora8on  with  global  supplier  on  how  to  make  available  for8fied  rice  to  people  in  areas  of  need  to  receive  food  aid  

source: WV internal info collection, team analysis

CASES

Most prominent examples of World Vision’s involvement in BoP initiatives

Conclusion  

Ini/a/ve   Partners   Impact  /  catchment  

Descrip/on  

§ India  Road  Safety  

§ FleetForum,  Coca  Cola,  Vodafone,  Shell,  WVIndia  

§ Pan-­‐India  road  safety  messaging  

§ Launched  at  F1O  2011,  programme  to  raise  awareness  and  preven8on  for  children  and  families  related  to  road  safety  as  one  of  the  top  killers  in  India  

§ PUR  Water  Ini8a8ve  

§ Procter  &  Gamble,  several  NGOs  incl.  WVUS  

§ 3.000.000.000  liters  of  clean  water  thus  far  

§ In  progress:  WVUS  collaborates  with  P&G’s  PUR  ini8a8ve  around  the  world,  providing  more  than  2  billion  liters  of  clean  water  annually,  see  www.youtube.com/watch?v=sCEuQt8nyfo  

§ SUSTAIN  Global  Partnership  

§ UPS,  TNT,  Accenture,  Booz,  World  Vision,  CARE  

§ Improve  last  mile  supply  of  relief  and  other  goods  

§ Ini8a8ng:  World  Vision  ini8ated  coopera8on  with  CARE,  UPS,  TNT,  Accenture,  Booz  &  Company  and  academia  to  stand-­‐up  collabora8on  for  beger  supply  chain  solu8ons  at  the  last  mile  

§ Bogom  Billion  Big  Data  

§ World  Vision,  LMMS,  various  other  NGO  and  corporate  partners  

§ Enabling  access  to  bogom  billion  as  target  market  

§ Early:  business  planning  and  feasibility  study  on  mul8-­‐party  big  data  ini8a8ve  as  service  provider  to  NGOs  and  corporates  for  bogom-­‐billion  with  coopera8ve  structure  /  shared  ownership  

§ Value  Chain  Approach  to  Food  Security  

§ Shortlist  of  various  companies  in  Food,  Credit,  Chemicals,  Tools  

§ Food  security,  pilot  in  HoA  and  Tanzania  

§ Assessment/ini8a8on:  value  chain  analysis  of  stakeholders  and  private  sector  collabora8on  related  to  BoP  food  security  programming  

source: WV internal info collection, team analysis

The information collected from World Vision entities shows that there are a couple of prominent examples of World Vision’s involvement in BoP initiatives, all in various stages of development

PURE WATER INITIATIVE

Examples of World Vision’s involvement in BoP initiatives

Proposal  is  being  developed  for  mul8-­‐party  big  data  ini8a8ve  as  service  provider  to  NGOs  and  corporates  for  bogom-­‐billion  with  coopera8ve  structure  /  shared  ownership  

SUSTAIN GLOBAL PARTNERSHIPS

Examples of World Vision’s involvement in BoP initiatives

World  Vision  ini8ated  coopera8on  with  CARE,  UPS,  TNT,  Accenture,  Booz  &  Company  and  academia  to  stand-­‐up  collabora8on  for  beger  supply  chain  solu8ons  at  the  last  mile  

SUSTAIN GLOBAL PARTNERSHIPS

Examples of World Vision’s involvement in BoP initiatives

Proposal  is  being  developed  for  mul8-­‐party  big  data  ini8a8ve  as  service  provider  to  NGOs  and  corporates  for  bogom-­‐billion  with  coopera8ve  structure  /  shared  ownership  

SUMMARY

World Vision’s proposition for private sector BoP

Conclusion  

World Vision is uniquely positioned to partner and add value to BoP

§  assessing needs, gaps and situation of the population

§  providing last mile access to communities and aggregated information at

grassroot level

§  convening BoP communities, global private sector, local businesses, CBOs, local

and national government

§  working with communities to enhance capacity, governance, financial

management, information & knowledge management���

The  proposi8on  of  NGOs  like  World  Vision  is  pivotal  for  the  success  of  private  sector  to  effec8vely  and  efficiently  serve  the  BoP  as  a  target  market  so  collabora8on  is  highly  beneficial  for  both  sectors  

source: team analysis

Think convergence!

Thank you!