Danger:

Entrepreneur

Unrepentant Optimist

Educational Arsonist

Infectious Agent

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00 What happened?

•10 million Skyping

•60 iPods

•5,000 tons CO2

•50 businesses

•Made in USA

…and two people died prematurely, due to air pollution.

What is this?

60,000 plastic bags; the

number used in the US

every five seconds.

If waste is so easy, why is

value creation so hard?

© Chris Jordan

www.chrisjordan.com

New Math for 2008-2020

1 Billion = 1.8 Billion

DESIGN FOR THE OTHER 90%

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BASE OF PYRAMID

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“An ounce of prevention is worth

a pound of cure.”

Ben Franklin

IF “an ounce of prevention is

worth a pound of cure…”

Why are so many businesses focused on

cures?

What are some business models focused

on prevention?

My 4 GoalsEighteen minutes from now, you will:

1) Know more about the importance of business model

innovations for approaching global health challenges.

2) Have examples of prevention based business models.

3) Be aware of tool(s) to help you design and prototype

business models for new ventures.

4) Have more confidence that YOU can DO something

about the global health challenges by designing (and

then building) prevention based business models.

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Big Global Challenges…

How will society face them?

Proactively identify and plan/prevent

Some planning, then wait and respond when

they happen

Let them happen, then figure out what to do

What will you do?

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Chronic

Crisis

BOP TOP

Oxfam, Doctors without

Borders

Aravind, Envirofit,

Red Cross, CDC &

FEMA

Merck, Toyota

Business Models for Environmental

& Public Health Ventures

Innovation

How an idea or invention becomes a good or service for

which someone will pay.

Historically, focus has been placed on technology

innovation… and process innovation.

Emerging focus on business model innovation and

entrepreneurship for tackling global challenges.

Q: What is a business model?

A: How an enterprise creates

and shares value.

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Q: How do I get a “good”

business model?

A. Business Model Design

It is more about designing

the network

…than designing the product

Telegraph

Technology +

suppliers

JP Morgan

& friends

Franchise

Model

Local

Investors

Generator

Companies

Competing

Light Mfrs

Utility

Business

Models

From Andy Hargadon, UC Davis

WHAT WOULD APPLE DO?

Pixo

Design

Linear

Tech

Sony

Sharp

Apple

Industrial

Design

Wolfson

Micro

Portal

Player

ARM

MP3

Toshiba

FIIC

From Andy Hargadon, UC Davis

From Andy Hargadon, UC Davis

?

From Andy Hargadon, UC Davis

BOP Business Model Design

S S S

“Goods & Services”

Scale

Craft solutions

with the BoP

Orchestrate effective

experimentsManage

failures

Transfer social

embeddedness

Generate co-mingled

competitive advantage

Pilot

Design

Create market

opportunities

Enhance

mutual value

BOP Venture Development Principles

London. 2011. “Building Better Ventures with the

BoP” in Next Generation Business Strategies for the

Base of the Pyramid.

H.E.R.O.’ic Design-Produce cleaner air, cleaner water, health,

justice

-Find value in waste

-Prevent pollution, disease

-Restore/regenerate ecosystems and

communities

Examples

Inviragen

“Better vaccines for a better world”

-what sucked?

- dengue, hfmd, je vaccines

-3 markets

-high r&d costs

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Envirofit

“Making the world

fit for humanity.”

-sophisticated

technology

-inexpensive

products

-mfrg and logistics

-carbon and micro

finance

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Emerging

AYZH

-designing healthy products for BOP women

Design That Matters

-low cost medical devices for rural health

X out TB

-TB treatment compliance

Product and business model innovation aimed at BOP health.

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Business Model Design Tools

Business Model DesignIntegrating values and value creation

BHAWG, 2 Q’s and 3 S’s

Search process

Prototypes and iterations: BMGEN Canvas

Testing hypotheses

Customer development and pivots

Minimum Viable Product

First Tool:

Venture 100 + The Matrix

-100 words on WHAT venture does and WHY it’s

important.

-Three important goals to measure what your venture

will accomplish over 5 years.

2010 2011 2012 2013 2014

Metric 1

Metric 2

Metric 3

One approach…

Better Approach:

Business Model Canvas

Example: iPod

Create many designs

1-2-3… Testing… TestingEach block of Canvas has “guesses”

Process of testing: Customer Development

“Get out of the building”

“Most people look at a company like Apple

and think, how could I ever make such a

thing? Apple is an institution, and I'm just

a person. But every institution was at one

point just a handful of people in a room

deciding to start something. Institutions

are made up, and made up by people no

different from you.”

Paul Graham, A Student’s Guide to Start Ups 2006

Eighteen minutes are up… DO YOU:

1) Understand the importance of business model

innovations for global health challenges?

2) Have examples of prevention based business models?

3) Know some tool(s) to help you design and prototype

business models for new ventures?

4) Have more confidence that YOU can DO something

about the global health challenges by designing (and

then building) prevention based business models?

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Want more?

The OFFER

www.bopreneur.blogspot.com

Twitter: @BOPreneur

OTHER: RESOURCES:

inviragen.com steveblank.com

envirofit.org businessmodelalchemist.com

csugsse.org andrewhargadon.com

iddsummit.org nextbillion.net

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