Fortune at the bottom of the pyramid
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Transcript of Fortune at the bottom of the pyramid
FORTUNE AT THE BOTTOM OF THE PYRAMID
C. K. Prahalad’s
CONTENT
Concept of BOP Market at BOP Products and Services for BOP Global Opportunity Ecosystem for Wealth Creation Reducing Corruption Developing Social Transformation
CONCEPT OF BOP
BOP: Bottom of Pyramid
Concern for BOP
Big Questions:• Why can’t we do something for BOP?• Why can’t we mobilize the investment capacity of
large firms with the knowledge and commitment of NGO’s and the communities that need help?
• Why can’t we co-create unique solutions for BOP?
Bigger Question:• What is the solution for all these questions?
MARKET AT THE BOP
•Poor are not victim or burden•There is a large market opportunity at BOP•How?
• MNCs biggest mistake• New growth opportunity for MNC• MNC must become an integral part
of the work at BOP•Dominant Logic
MARKET DEVELOPMENT IMPERITIVES
Create the capacity to consume 3 Basic Principles:
Affordability Access Availablility
Need for new goods and services Dignity and choice Trust
BENEFIT TO MNCS
4 to 5 billion underserved population
13 trillion PPP Large potential BUT…
Need for innovation
NATURE OF BOP
There is money at BOP
BOP accepts advanced technology ( ITC e-Chaupal)
BOP Market is connected (Grameen phones, Bangladesh)
Access to BOP (HLL, Shakti)
PRODUCTS AND SERVICES FOR BOP
Philosophy of developing Products and Services for BOP Twelve Principles of product innovation:
1. Price-Performance (Reliance Monsoon Hungama)2. Innovation: Hybrid (HLL Iodized Salt3. Scale of Operation (Serving 1.5 billion across the border)4. Identifying functionality (Jaipur Foot)5. Sustainable Development (Resource Utilization)6. Process Innovation (Arvind Eye Care)7. Deskilling of work (Peru, Cemex)8. Education of customers (HLL, Handwash)9. Designing of hostile infrastucture (ITC e-Chaupal)10. Interface (Creative interface Design)11. Distribution (ICICI e-banking, ATM, Rural Banking)12. Change in conventional wisdom in delivery of goods and
services
BOP: GLOBAL OPPORTUNITY Engaging BOP Local Growth Opportunities
(S curve & I curve) Local Innovation and
Global opportunity BOP Solutions for
developed markets Lessons for MNCs from
BOP Markets: Capital Intensity Sustainable Development Innovation
Costs of Managing Learning to Live in a
Network of Relationships
ECOSYSTEM FOR WEALTH CREATION Market Oriented Ecosystem:
Micro Enterprises Small and Medium
Enterprises Cooperatives Large Local MNC firms NGO
Ecosystem for Developing Countries (HLL)
Learning the Sanctity of Contracts ((HLL, Shakti Amma)
Reducing Inequalities in Contracts (ITC e-Chaupal)
Building Governance Capacity Among the poor (Bank of Madura, ICICI)
REDUCING CORRUPTION
Concept of TGC Building TGC ( Andhra Pradesh e-Governance
Story, e- Seva)
DEVELOPING SOCIAL TRANSFORMATION
Social transformation Breaking down communication barriers BOP consumers upgrade Gaining access to knowledge Identity for the individuals Women are critical for development Evolving checks and balances
CONCLUSION
The real test: From the Pyramid to the Diamond
THANK YOU