notes taken mit 8 feb 2014
bottom-up multinationals -mixes extreme local service; no costly tv advertising (most bottom billion customers dont even have electricity); unite humanity in greatest sustainability purposes -and life saving community serviecs- ever marketed!
to build a radically affordable solar water pump for $2-a-day farmers that will transform small plot agriculture, create new water markets, and significantly increase incomes that will raise bottom-of-the-pyramid families out of poverty. Our target customers are small-plot farmers in India and Africa.
These farmers need a reliable, low-cost water pumping system so that they can grow cash crops to increase their incomes. They also need electric power to add value to their crops (grinding, processing, etc.) and for household use. Current pumping systems cost too much or are unreliable.
Solar pumping systems have been available for years, and they show great promise. But they haven’t been adopted at scale for a very simple reason. They cost too much!
The purchase price of solar PV systems is much too high to be competitive with diesel pumps, even though the fuel and repair costs of diesel pumps are astronomical.
If we could cut the cost of solar pumping systems by 80%, we could transform small farmer incomes, create tens of thousands of new jobs, and significantly lower carbon emissions.
- GREENCOAL non-carbon fuels from rural waste recycling
- SUCCESS INTERNATIONAL quality private education rural
- SPRING HEALTH drinking water
21 more life-critical community service apps and models looking for massive open partnering -references MIT dlab conference 2014 - polak book 2013
microfranchise pedigree treadle pumpsxBack in 1984, Norman Macrae's book (drawing together 10 years of debates at The Economist of The Entrepreneurial Revolution of the coming of the internet generation) proposed the 30000 microfranchise model need if millennium goals of ending poverty were to be collaboratively achieved by the net generation. This depends on public media not just being freely on your side but integral to replicating a best for the world inter-community franchise solution and helping stage reality tv competitions connecting ongoing internet search networks that find them. Polak and Warwick's new book proposes an opposite way massive corporations designed to serve at least 100 million of a billion poorest who are currently unserved. They advance 8 principles for designing such corporations. Oddly or not, at least 6 of these principles are common to microfranchising (and its main modellers originated in the first 42 years of bangladesh as a nation).
1 Listening - don't look at the poor as almseekers or passive bystanders to their own lives. They're your customers. Understand the specific contexts of their lives- their need, wants, fears aspirations
2 Ruthless affordability- design and implement technologies and supremely efficient business processes- this may require an order of magnitude (ie 90%) lower costs than first world processes (but it also requires better sustainability of those who work for you and of natural resources) -note we had to add the parenthesis! - see value exchange mapping models
3 Transform the market. Think like a Steve Jobs or an Akio Morita- I don't serve markets I create them. Your goals is to put a dent in the universe. You will judge success by whether you change economic behavior - create huge numbers of jobs and transform the character of villages around the globe
4 Scale , Anticipate from the outset designing - as a central focus of the enterprise - not just for thousands or millions of poor people but for hundreds of millions (note Polak envisions at least 25 frontier corporations -ie 25 cases of billions of unserved people - and it is being the leader of this service that ultimately makes this corporation profitable aggregating a cent profit per customer transaction if you will)
5 last mile distribution. Design radical decentralization that incorporates last mile (even last 500 feet) distribution, employing local people at fair local wages in a marketing, sales, distribution and service network that can reach even the most isolated rural people.
6 Jugaad Innovation. The Hindi term Jugaad denotes improvisation, working with what you have., and paying unflinching attention to continuous testing and development. Some simply call this ingenuity
7 here's one of the two controversial ones - aspirational branding - we agree but aspirational branding for the por in our opinion seldom pays for advertisning. Its needed both to differentiate safety -eg what makes clean water identifiable from dirty water; and because to the poor there is ever greater need for emotional empathy of their most trusted solution. -see eg the triple special issue pn brand real I edited in journal market management in 1999 on everything that was valueless of false branding in 20th century that needs to be designed in wherever a company commits to multiplying goodwill through purposeful win-win relationships of productivity and demand
8 And this is probably where the Polak Model departs from the Norman Macrae 30000 Franchise model. Design for a generous profit margin to attract private capital drawing from a pool of trillions not just millions typically available in philanthropy and government sponsored programs. Ultimately this depends on whether media and education are freely and socially on your side (and why wouldn't they be in Muhammad Yunus 1000% social business model) or costs you are going tp have to battle against chris macrae www.trilliondollaraudit.com email@example.com