BOP Practices RAMI BOP Pratices Final Report Revaluation

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BOP Practices RAMI BOP Pratices Final Report  Revaluation Powered By Docstoc


   Project:            Packaging, mass communication and primary
                       education practices at the Base of the Pyramid
                       (BOP) in India, Russia, Tanzania and Brazil
   Aalto Team:         Minna Halme, Arno Kourula, Galina Kallio,
                       Angelina Korsunova, Sara Lindeman, Maria Lima
                       Toivanen & Tapio Peltonen

PROJECT: Introduction
          Team                              Objectives                              Working method
Aalto University                    •    Examine consumer                    •      Ethnographic
School of Economics                      practices in Base of the                   research in:
                                         Pyramid (BOP)                                • India
• Prof. Minna Halme                      markets (disposable                          • Russia
• Arno Kourula (proj. mng.)              income under 5€/day)                         • Tanzania
• Galina Kallio                          related to:                                  • Brazil
                                         1. Packaging                        •      BOP business model
• Angelina Korsunova                     2. Mass                                    and trend analysis
• Maria Lima Toivanen                         communication
• Sara Lindeman                          3. Primary education
• Tapio Peltonen                    •    Identify and describe
                                         best practice BOP
• Industry expert:                       business models
Niilo Pöyhönen, Stora Enso          •    Describe BOP markets
• Technology expert:                     and their trends
Anu Seisto, VTT                     •    Identify opportunity
                                         spaces for forest

                       RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010                        2
PROJECT: Work packages as input for
innovation work

                                                                         3. Background
  1. Observed                                                                trends
                                       2. BOP
   practices                      business models
   at the BOP                         analysis

    4. Opportunity spaces for the forest cluster

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PRACTICES: Themes in observed practices
Primary focus areas of practices and observations:
1.   Packaging: Including cost, design, materials, practices, recycling and reuse.
2.   Mass communication: Including media type, content, practices and value.
3.   Primary education: Including content, curriculum, provider, system, education
     level, literacy, study and teaching practices, school supplies, facilities, food, pre- and
     extra-curricular activities, school travel and value of education.

Secondary focus areas of practices and observations:
• Numerous interesting/important themes were identified prior, during and after data
     gathering including poverty, daily life, household financial management, aspirations,
     dreams and worries, business, infrastructure, space and time, technology and
     adverse practices.

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PRACTICES: Example of sharing books in
•   In Tanzania, children often study
    together in voluntary groups
•   This is partially due to lack of
    personal school materials and
    partially due to solidarity
•   Studying together also compensates
    the lack of teachers
•   Sharing is common practice in many
    areas of life in Tanzania
•   Questions:
      – What implications does this
         practice have from the perspective
         of designing study materials?
      – What other implications does this
         practice have?

                       RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010   5
PRACTICES: Asmare waste recycling
cooperative (1/2)
                                     • Originally established by homeless
                                          people and now a successful
                                          cooperative enterprise in Belo
                                          Horizonte, Brazil.
                                     • Goals and activities of Asmare:
                                            – Collection and sorting of
                                                 recyclable trash from homes and
                                                 off the streets.
                                            – Providing structure to odd jobs of
                                                 many homeless ragpickers and
                                                 defending rights.
                                            – Providing recyclable trash as
                                                 materials to handicraft and
                                                 furniture workshops.

          RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010            6
PRACTICES: Asmare waste recycling
cooperative (2/2)
• Asmare collects nearly 90%
   of recyclable waste in Belo
   Horizonte, Brazil.
• Asmare transports most of
   sorted waste to São Paulo,
   since there are no local
   facilities for recycling of
 Sorted recycled fibre
 Lack of local smaller scale
   processing facilities

                   RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010   7
        Types of innovation needed for BOP business models
Product              Delivery              Adaptation to            Relationship       Partnership
innovation           innovation            Infrastructure           and labor          and network
                                                                    innovation         innovation
Affordability and   Efficient            Design for              Deskilling work   Untypical
 quality              delivery              hostile                  processes          business
Different            process               environment             Local actor        partners
 functionality       Group credit          (e.g. erratic            involvement       Multi-
Commercial           schemes               electricity, dirt       Trust-based        stakeholder
 scale               Effective             roads)                   relationships      relationships
Resource             distribution         Hybrids: new            Mutual benefit    Common goals
 efficiency           systems               technology in                              Utilization of
                                            deficient               Capabilities
                     Usable                                         development        complimentary
                      interfaces            infrastructure                              resources
                     Last mile by                                                     Network
                      local                                                             assembling and
                      subsistence                                                       coordination

                         RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010                      8
BUSINESS MODELS: Analyzed 14 cases
      Building a house one room                                 Annapurna salt and decreasing
      at a time from cement                                     mental disturbances

      State school feeding                                      Investments in renewable energy

                                                                Improving city water efficiency
      ITC procurement
      hubs for farmers

                                                                Electricity, water and sanitation
      M-PESA - Mobile banking                                   to slums

      Nokia Money - Mobile banking
                                                                Product for safe drinking water

      Microfinance banking services                             Primary education for
      over the internet                                         children in slums

      Tsinghua Tongfang and                                     Forest plantation with community
      developing IT skills in China                             involvement

               RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010                           9
TRENDS: BOP as an opportunity and
challenge for forest cluster
•   We are experiencing many
    intertwined global trends and
    developments simoultaneously.                                   Urbanization
Challenge:                                               Connectedness
•   While Base of the Pyramid (BOP)
    markets (< €5 / day) represent a                   Ecological
    very large market potential, at the               sustainability
    same time humanity’s ecological                                         development
    footprint has grown rapidly and                    Consumption
    exceeded the world’s biocapacity.
                                                              Population Corruption
Question:                                                            growth
•   How can these trends be addressed
    at the same time in an innovative,
    efficient and effective way?

                      RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010          10
          OPPORTUNITY SPACES: Approach to looking at business opportunities

                                                        Poverty          Lack of Infrastructure

                                                                    Ecological sustainability
                                           Lack of Space     Urbanization & slums
                                                                          Systemic mistrust
Opportunity space

                                                RE - reuse, recycle…       Population growth
                                 Overcoming fakes
                                                           Revaluation of Forests

                      Newspapers for Re-Ikea for BoP               Aesthetics
                      the semi-literate
                                                       School sanitation
                        Protective Covers

                                                Hybrid paper-mobile
                      Decorative papers           book solutions
                               Building materials
                    Cold Bag
                                                         Time needed to develop or address
OPPORTUNITY SPACES: List of identified
themes, opportunity spaces and ideas
       THEMES               OPPORTUNITY SPACES                           EXAMPLES OF IDEAS
                           1.  Lack of Space                        1.    Cold bag
1. Poverty                                                          2.    Building materials
2. Lack of                 2.  ‘RE’ - recycle, reuse…               3.    Decorative papers

   infrastructure          3.  Re-Ikea for BoP                      4.    Protective covers
                           4.  Overcoming fakes                     5.    Hybrid paper-mobile book
3. Urbanization &                                                         solutions
                           5.  Learning                             6.    Teaching materials for shared
   Urban slums growth                                                     use
                           6.  Schools as community
                                                                    7.    Simplified news for semi-literate
4. Population growth           hubs                                 8.    Opportunities for children and
5. Environmental           7. School sanitation                           youth
                                                                    9.    Reliable branded products for the
   sustainability          8. Forest revaluation                          poor
6. Systemic mistrust       9. Aesthetic solutions                   10.   Small forest plantations and
                                                                          urban plantations
                           10. Infrastructure
                                                                    11.   Local/distributed production (e.g.
                           11. Giving voice to the poor                   printing at schools)
                                                                    12.   Landfill and waste management

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