TOWARDS A CHANGEMAKER ECONOMY
Bangalore, May 26 2017
ASHOKA: CATALYST OF SOCIAL INNOVATION
IDENTIFY AND SUPPORT LEADING SOCIAL ENTREPRENEURS
SPOT NEW PATTERNS & PARADIGMES
ACCELERATE SOCIAL CHANGE THROUGH COCREATION WITH OTHER PLAYERS
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Everyone a Changemaker A world where solutions outnumber the societal problems. Where everyone has the confidence and freedom to take action.
WHAT IS A SOCIAL ENTREPRENEUR? Ashoka’s criteria for Fellows: The person: Entrepreneurship Creativity Ethical Fiber The model: Social impact System-change new idea
Impact - 10 years after their integration to the Ashoka network: 94% are still working on their original mission 93% have seen their idea replicated or copied 56% have influenced public policies in their country
SOLUTIONS AT SCALE ARE NEEDED TO ADDRESS LOCAL AND GLOBAL SOCIETAL CHALLENGES
Climate Change Financial Inclusion
Education Access to healthcare
Poverty
Social Inclusion Housing Nutrition
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NO SINGLE PLAYER ALONE CAN ADDRESS THESE SOLUTIONS
«The only thing more powerful than a new idea in the hand of a social entrepreneur is a group of entrepreneurs who collaborate». Bill Drayton
HOW TO TAP INTO THE MASSIVE POTENTIAL OF THE BUSINESS SECTOR?
INVESTMENT
OPERATIONS
BRAIN POWER
INFLUENCE
How can companies maximize their changemaking potential? Change in organizations and systems requires changes in mindsets
COMPLEMENTARY STRENGTHS OF SOCIAL ENTREPRENEURS
• IDEAS: innovative yet tested solutions and models
Vodafone
• NETWORKS and social capital • KNOW-HOW: expertise on societal issues (understanding of less served populations, social impact measure, hybrid models…) • APPROACH: bottom-up, frugal innovation, opportunity to de-risk new models • FINANCING: hybrid financing models
SAP
Postal Bank
HIGH-GROWTH MARKETS HAVE BEEN PIONEERED BY SOCIAL ENTREPRENEURS
Market
Triggering Description of social innovator social innovation
Market size USD 2.1 – 2.2 trn
Microfinan Microfinan ce ce
Micro credit institution lending to the poorest of the poor in Bangladesh
Sharing Sharing economy economy hotels hotels
Free network for exchange of overnight accommodation in other people’s apartments (shared hospitality)
USD 1 bn
Online Online education education
Free web-based, high quality educational lectures and materials open to everyone Tuition-free online learning with the possibility to earn degrees
USD 35.6 bn
From supplier/customer to everyone a value creator
Source: Ashoka study with the support of McKinsey Germany
Enabling markets for more than self
CO-CREATION: STILL AN UNTAPPED OPPORTUNITY
SOCIAL ENTREPRENEURS
Expand social impact by leveraging the assets of corporations Generate new sources of revenue to reinvest in social projects Develop new skills and knowledge
CORPORATIONS
New markets including vulnerable populations Innovation labs for business models Stronger CSR positioning and social footprint Employee engagement
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CORPORATE POLL ON CO-CREATION: INSIGHTS Can profit and positive impact on society be compatible for your company from its core business?
83 % Yes What are the main expected objectives of the social and environmental actions led by your company? Responding to customers’ expectations Responsible image Sustaining our business
Links to local stakeholders Growth opportunities/ competition Other No answer
20% 20% 10%
23% 21% 10% 24%
16% 0%0%
1% 0%0% 4% 1% 1% 0%0%
25% 25%
19% 0%0%
25%
14%0%0%
25%
14% 11% 10% 0%0% 9% 7%
15%0%0%
17% 0%0%
25% 25% 25% 25%
% In total
Engaging employees
22%
165 i n d i v i d u s
CORPORATE POLL ON CO-CREATION: INSIGHTS 62 i n d i v i d u s
Which elements were critical for your company to engage in Co-Creation?
Its values and its culture
97%
3% 0%0%
Commitment of the top leadership and/or shareholders
94%
6% 0%0%
Strong commitment of an employee or a team Internal scheme to facilitate project creation and risk taking External pressure (legal, customers or shareholders’ requests)
31%
55%
45%
48% 29%
Other15%
Yes
16% 0%0%
68%
Availability of a dedicated budget Financial interest scheme linked to social and environmental results
3%
81%
No
50% 71% 85%
No answer
1% 0%0% 0%0% 2% 0%0% 0%0% 0%0%
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WELCOME TO THE CHANGEMAKER ECONOMY! Social entrepreneurs Corporate leaders
Busines s Schools INCLUSIVE AND SUSTAINABLE ECONOMY
Foundations & Investors
Public decision makers
Employees and workers
Consumers Management consultants 12
TRENDS AT PLAY TOWARDS GREATER COLLABORATION • Technology is removing barriers to information and resources: an increasing number of citizens and consumers are empowered • Robots and artificial intelligence fundamentally shifting the value add of the human workforce, highlighting the critical role of soft skills • Bureaucratic and hierarchical models are increasingly challenged to innovate: emergence of agile, nimble and networked organizations • 89% of employees disengaged (Gallup) – 87% of youth think that the success of a company should be measured beyond financial metrics (Deloitte Millenium survey) • Greater visibility of social challenges through Sustainable Development Goals Getting ready for a world defined by accelerating change
HE CO-CREATION MINDSET •
It starts with acknowledging one’s own limits / potential in others
•
Establish a peer-to-peer relationship even though organization sizes differ
•
Take the time to build trust, understand what is at stake for the others and define common objective
•
Check that everyone is comfortable with the double objective of creating both social/ environmental and economic value
•
Openly talk about value creation and how it is shared
THE RIPPLING IMPACT OF CO-CREATION Framework change Systemchange Scaling direct impact Change in business practices
More people/ ecosystems
Change in public policies
Change in how people act and see
Thank you!