The INNOWE - INFOSYS Challenge SOCIAL INNOVATION
2011 VisionSpring
Submitted By:
Team Netrutva Janhavi Shah janhavisshah@gmail.com 9819769600 Dipti Raka diptiraka@gmail.com 9820559740 Mugdha Ghag mugdhaghag@yahoo.co.in 9930745412 PGDM Business Design II year Welingkar Institute of Mangement Development & Research, Matunga, Mumbai.
The Innowe Challenge 2011
VisionSpring Bringing high-quality, low-cost vision care to neglected communities across the developing world. We talk of great visionaries who dreamt to make real innovation happen, Steve Jobs, Eric Schmidt, Mark Zuckerberg, Ratan Tata. Here, we narrate to you the story about two people who dreamt, with their eyes wide open to provide to the less privileged, the power of clear vision. VisionSpring: A story on social enterprise, micro-franchising and business with the next billion.
During his first year in optometry school, Jordan Kassalow went on a trip to rural Mexico to provide eye care services to some 2,000 people who suffer from vision problems. He saw a seven-year old boy who couldn't see at all and was using Braille. "He suffered the burden of blindness: besides being unable to see, blind people are ostracized in society as they are considered 'bad luck,'" Kassalow recalls. Being a freshman, he asked his professor to review the boy's condition with him. As it turned out, the boy was not blind, just profoundly near-sighted. The team had brought with them eyeglasses of varying degrees and he was asked to get the one with the strongest lens for the boy. “As the boy aligned his eyes to the lenses, I saw his face light up as he experienced the joy of being able to see. That moment transformed both our lives," he says. "I wanted to be able to recreate moments like this. It got me on track." When Kassalow returned to Boston, he was startled to see that of the 2,000 people they saw over five days, 1,400 or 70% needed glasses. Of these;
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ONLY 30% was made-toorder
70% need simple magnifying-type lenses that came in 5 ready-made powers
He went on eight more training trips but was dissatisfied with the strategy. He wanted to find a sustainable model.
In any mission or cause, the most passionate radicals and influencers are the ones thirsting for a change. They are the ones dissatisfied with status quo and all they need is a mission, a cause to ignite them.
After working with Aravind, Kassalow had split his time between international public health work and an optometric practice in New York City. Scott, a businessman and senior executive of a large family business, was attracted by the idea of combining his interest in entrepreneurship with his passion for public service. On a visit to India in 1998, Kassalow and Scott saw first-hand the huge market for reading glasses for the poor. In 2001, they created Scojo Foundation to provide affordable reading glasses to people with presbyopia* living in low-income communities. During this time, Kassalow and Scott also formed Scojo Vision LLC, a for-profit company in the United States that targeted the “affordable luxury” niche of the reading glasses market. From the beginning, they designated that 5% of profits from the LLC would funnel into Scojo Foundation. Kassalow felt that he and Scott were a strong team whose skills and experiences complemented one another. Kassalow knew about eye care, public health, and fundraising. Scott knew about sales, marketing and business management.
*Presbyopia is a natural condition whereby the lens of the eye loses its flexibility, resulting in blurry up-close
vision
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The Innowe Challenge 2011 Although they were both integrally involved in designing and building the LLC and the Foundation, they agreed that Scott would take the lead in the LLC and Kassalow would run the Foundation.
Chronicling VisionSpring’s journey Scojo Foundation Created Launched in El Salvador
2001
2002
India Mexico & Bangladesh
Guatemala
2003
2004
2005
2006
Renamed as VisionSpring
2007
2008
George Soros’ Open Society Institute funded Scojo Foundation’s pilot program in India in 2001 and began operations in India in January, 2005. Scojo India’s revenue sources were from eye-glasses sales, grants and loans. In May of 2006, Scojo Foundation received a US$100,000 loan from Acumen Fund for its India operations. Acumen Fund is a global non-profit venture fund that invests in scalable and financially sustainable organizations delivering products and services to the poor. Acumen Fund tracks a combination of financial and social returns. Five years later, Scojo New York was sold and Scojo Foundation was renamed VisionSpring in 2008.
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Serving the base of the Pyramid: A market for reading glasses in India
880 million
One
In India live on less than US$ 2 per day
eye care professional per 30,200 people
92.4 million
Rs.250-500
Indians suffer from presbyopia
spent on a pair of reading glasses by rural folk
This population was VisionSpring’s primary market which would benefit from reading glasses in terms of improved quality of life and increased productivity. Many people did not know that there was a simple and affordable solution to presbyopia, and therefore did not look for opportunities to buy reading glasses even if they were available. These glasses typically cost less than $10 in US drugstores. Kassalow felt that the problem was really a question of distribution. People in the villages just didn’t have access to the glasses. It struck him that the real problem was really a market failure for eyeglasses, and he came up with the idea of training local women, whom he saw as the keys to ending the poverty spiral that entrapped many of his patients. Kassalow came up with the concept of a “Business-in-a-Bag”, which is the micro franchise kit that VisionSpring has today. These kits, which contain different styles and strengths of glasses combined with the training needed to sell the glasses, empower thousands of micro entrepreneurs around the world today. This bag came at a below-cost deposit of Rs.500. Vision Entrepreneurs conduct educational outreach on vision care and offer screenings in their communities. To maximize their efforts, Vision Entrepreneurs partner with reputable local institutions such as schools and churches to host mobile vision campaigns.
. The Business-in-a-Bag has around 40 pairs of various styles, colors and powers of glasses, accessories, mirror, measuring wire, Eye Charts, Invoice Pad, Eye hospital referral pad, daily sales form, customer information sheet, certificate of Training completion
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Grassroots Innovation-The VisionSpring way VisionSpring reduces poverty and generates opportunity by educating and empowering “vision entrepreneurs” and equipping them with the tools needed to market and sell eyeglasses at affordable prices. VisionSpring has achieved significant impact – bringing dramatically improved vision to over 400,000 individuals at the base of the economic pyramid and leading to improvements in health, income, and productivity in the world's poorest communities. In sum, VisionSpring is an outstanding example of enterprising social innovation.
The continuing evolution of VisionSpring’s business model VisionSpring’s innovations blend methods from the worlds of business and philanthropy to create sustainable social value that has the potential for large-scale impact.
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Comprehensive Eye Care Refers for complex vision problems
Partners
The Business Model with a difference
VisionSpring literally has its eyes on the market. With strong customer feedback, it is able to stay ahead of competition.
Reaching the last mile: the Distribution Model
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If VisionSpring were to do this on its own, it would take years of planning and raising the necessary financial resources. It is the trust in the vision entrepreneurs that has made the innovation really touch the grassroots.
VisionSpring is a solid, illustrative example of the micro franchise model coupled with microconsignment while building entrepreneurship among village folk in India and also having a dramatic impact in four countries. Refers for complex vision problems VisionSpring
has built effective partnerships with Shakti Ammas of HUL, Drishtee, ITC e-choupals
sanchalaks and Byrraju Foundation and 23 others who receive training from VisionSpring trainers who would then receive the micro franchise kits and begin selling. As a result of this partnership, nearly 10,000 reading glasses have been sold through Community Health Workers who, in turn, earned generous profit. We School, Mumbai
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Developing the Social Innovation Niche What sets VisionSpring apart is that it has managed to spread the good work across several developing countries and it constantly focuses on self-sustenance and creating a social impact. The organization has the culture of a small business, driven to be innovative and deliver measurable results against bottom lines which trickles down to every vision entrepreneur. The value chain provides sufficient financial incentive and social impact potential to convince partners to open their networks, leverage their infrastructure and provide the resources to manage these programs. Partners can take a share of the large profit margins, and receive some of the widespread recognition for the double social impact provided by this innovative model. No other organization sells eyeglasses to villages. In fact, very few organizations have developed the infrastructure to reach villages with retail products, save large consumer products companies such as Coca-Cola, HUL or agricultural products companies. VisionSpring has taken advantage of its exclusive position in the villages by gathering market data on customer preferences and building its brand name.
We have been privileged to hear Mr. Maruti Ram, Vision Entrepreneur Channel Manager, India and were inspired to write this story.
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