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Business model vs impact model

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1. BUSINESS MODEL VS IMPACT MODEL By Hendry Hartono SE. MM. 2. PART 1BEYOND BUSINESS MODEL Bina Nusantara 3. PART 1BEYOND PROFIT Bina Nusantara 4. PART 1BEYOND PROFIT…
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  • 1. BUSINESS MODEL VS IMPACT MODEL By Hendry Hartono SE. MM.
  • 2. PART 1BEYOND BUSINESS MODEL Bina Nusantara
  • 3. PART 1BEYOND PROFIT Bina Nusantara
  • 4. PART 1BEYOND PROFIT Bina Nusantara
  • 5. World changing: 250 years of population, economic and consumption growth,Bina Nusantara and the impacts on our environment (sources: WEF, WWF, New Scientist).
  • 6. CRISES OF... POVERTYPART 1 CLIMATE CHANGE CONFLICBEYOND PROFIT DEPRESSION SUICIDE
  • 7. Bina Nusantara
  • 8. PART 2 BUSINESS MODEL VS IMPACT MODELBina Nusantara
  • 9. WHAT IS A BUSINESS MODEL?Bina Nusantara
  • 10. PART 1BEYOND PROFITA BUSINESS MODEL DESCRIBES THERATIONALE OF HOW AN ORGANIZATIONCREATES, DELIVERS, AND CAPTURES VALUE Bina Nusantara
  • 11. BEYOND PROFIT Bina Nusantara
  • 12. WHATBEYONDAN IMPACT MODEL? IS PROFIT Bina Nusantara
  • 13. AN IMPACT MODEL DESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, SCALES, SUSTAINS AND MEASURES IMPACTBina Nusantara
  • 14. NOTE PEOPLE , PLANET, PROFITBina Nusantara
  • 15. People Planet ProfitBina Nusantara
  • 16. Why does it matter? • People do not trust business. They increasingly see companies as irresponsible, greedy and inhuman. Climate change and economic downturn have accelerated new expectations. • Businesses need to reengage people, to understand their new priorities, rethink their role and propositions, work in new ways, and enable people to do more themselves. • Resolving the many paradoxes faced by customers who want the best things but also to do “the right thing” and business leaders who want to grow but in more responsible waysBina Nusantara
  • 17. Social and environmental issues are more important thanever.For business, they represent some of the greatestopportunities to find new markets of profitable growth, morelasting and engaging sources of competitive advantage, andmore effective ways to reduce cost and risk.Consumers no longer feel conflicted by the issues, butcommitted to supporting change. Bina Nusantara
  • 18. People and planet and profit: Economic growth is only sustainable if business activities are integrated with social and environmental priorities (source: GeniusWorks).Bina Nusantara
  • 19. Ben Clarke from Kraft Foods says “Sustainability is now about profit ... it is the opportunity ofthe twenty-first century.” The business case for “people andplanet and profit” is based on both the profitable newopportunities of sustainable markets – embracing theseissues within existing markets, and investing in new marketspaces such as renewable energies - and also on thesignificant cost and risks likely to be incurred byunsustainable practices in future.” http://www.ceoforum.com.au/article-detail.cfm?cid=6063&t=/Ben- Clarke-Kraft/Crosscultural-management-Krafts- Bina Nusantara
  • 20. CSR (corporate social responsibility) strategies were typicallyperipheral compensation for the damages already done, relieving the guiltof companies that couldn’t see the light. They were the clean caring icingon the big dirty cake. They sought to protect superficial and increasinglyfragile reputations.“People and planet and profit” is much more than that. It is aboutmoving the issues of sustainability from the fringes to the heart ofbusiness. It demands that business leaders rethink fundamental strategicquestions – why we exist, where we should focus, how we aredifferent, and why people will choose it, want to work for us, andinvest in our business.Bina Nusantara
  • 21. BACK TO BUSINESS MODEL VS IMPACT MODELBina Nusantara
  • 22. Iteration NumberIMPACT MODEL CANVAS Headline idea Designed by Date Collaborators Activities Proposition Channels Target Users - Who are our key collaborators without which - What Activities does our Proposition require? - What value do we deliver to the user and how? - Through which Channels (media, delivery partners, - For whom are we creating value and why? we could not achieve our mission? - How is this different from the status quo? networks etc) are we going to reach our customers - What needs, trends and insights are we and collaborators? capitalising on? Resources Purpose Marketing - What stuff, people, infrastructure does our - What is the reason the organisation exists? - What attitudes or behaviours do we need to Proposition require? - How can we best serve? change to engage others fully with our proposition - What is our strategic intent? and how can we best communicate this? PPP Costs Financial Costs Revenue Streams PPP Impacts - What environmental and social costs are a direct or indirect outcome - What are the most important costs of our Activities and Resources? - What are our revenue streams? - What specific environmental and social outcomes do we want to deliver? of our Activities and Resources? - How much does each stream contribute to overall revenues? - How can we mitigate against this? Risks Assumptions - What are the most obvious risks associated with this model? - What core assumptions do we make about customers, - What could get in the way? collaborators, resources and channels which underpin this model?
  • 23. IMPACT MODEL CANVAS Grameen Danone Foods Scale Strategy Brand StrategyWhat systems do we need to have in place to reach maximum scale? What over-arching and engaging story are we going to tell to engage people?What people structures do we need to service this delivery model? How do we appeal to head, heart and hand in a distinctive and authentic way?How can we deploy these over time to achieve our goals? How are we going to start and maintain conversations? Grameen Danone Foods has created a financially sustainable business model Grameen Danone Foods brings a story two powerful organizations coming that creates a myriad of positive externalities. They scale through providing a together under the banner of a common cause to fight nutritionally deprived viable and socially attractive investment opportunity in yogurt production facilities, populations in Bangladesh.They are focused on branding social enterprises as a the business model covers all other costs. movement. They would like to be part of the evolution of capitalism, bringing purpose front and center for the next generation. Culture & Character Collaboration Actions Value Proposition Channels & Marketing Users LocalHow do people have to behave Through which Channels are What Activities do our Value What value do we deliver to the Through which Channels are For whom are we creating value? What is the local context?during ‘business as usual’ to we going to reach and keep Propositions require? user? What benefits are we we going to reach and keep What needs are we focused on What impacts user beliefs,deliver on the Activities, in communication with our Our Delivery Channels? making more accessible, usable in communication with our relieving? What problems are we values and behaviours?Resources & Partnerships? users? Which ones work best? Our Fundraising Strategy? or enjoyable? How is this different users? Which ones work best? helping to solve? What are existing behavioursHow does this connect with Which ones are most Our Growth Strategy? from our ‘competitors’? What are Which ones are most and cultural codes we canour values, vision and org intent?What ownership structures do you cost-efficient? How are we What do we have to do to keep the mission-critical elements of the user experience? cost-efficient? How are we • Poor often tap into or piggy-back on?need to ensure congruence and integrating them with user habits? How can we reach scale? our collaboration and networks intact? Our culture healthy? integrating them with user habits? How can we reach scale? malnourished • 30% of allmaximise imaoct? • Building production Grameen Danone children Bangladeshis and Foods brings daily 56% of• Maximizing impact • Grameen Bank facilities • Sales ladies distribute from Bangladesh• Create broad healthy nutrition to • Entrepreneurial Bangladeshi • Danone Foods • Production of low income the yoghurt door-to- children under the awareness • Bangladesh products door distributors age of 5 suffer from for social business nutritionally deprived • Micro farmers Government • Product sales moderate to severe• Ensure quality populations in • Factory workers malnutrition • Distribution control Bangladesh. They Resources Channels & Marketing Donors Globe• Enterprise as a offer a community piece of What Resources (stuff, people, infrastructure) does out Value based business Through which Channels are we going to reach and keep Who are our most important donors and funders? What needs What is the global context within which we are working? a worldwide move Proposition require? model to in communication with our donors and policy makers? are they focused on meeting? What impacts potential and current donor beliefs, values Our Delivery Channels? ment for social Our Funding Channels? Our Fundraising Strategy? produce yoghurt Which ones work best? Which ones are most and behaviours? business Our Growth Strategy? enriched with crucial cost-efficient? How are we There are approximately integrating them with user habits? Our partnerships? nutrients at a price of How can we reach scale? 925 million malnourished people in the world. • Production sites 6 BDT (= 0.06 • Danone Food EUR). The production • Gramene Bank There is a need for • Micro farmers is designed to give as • Social enterprise employment all over the • Collaboration partners • Private Investors world. There is many people as networks possible a job. • Investor Networks increasing need and call for for biodegradable PPP Costs packaging. Financial Costs Revenue Streams PPP ImpactsWhat social and environmental costs are a direct or indirect outcome What are the most important costs inherent in our delivery model? What are our revenue streams? What prices are we charging? What outcomes do we value most for our target users?of our Key Activities and Key Resources? How can we mitigate against this? Which Key Resources are most expensive? Which Key Activities are What value are our funders / donors / users really willing to pay? What behaviours and beliefs do we want to change? most expensive? What do we need to invest in to ensure our How much does each Revenue Stream contribute to overall revenues? How can we measure these accurately and cost-effectively? purpose is achieved? What is break-even target? Is there a way to include measurement within the user experience? • Production facilities • The milk for the yoghurt is purchased • Worker salaries from micro-farmers. • none • Distribution to sales ladies • Revenue from product sales • Sales ladies distribute the yoghurt • Internal and external communication door-to-door and receive a 10% • Management provision. • 50 production plants during the ten years between 2006 and 2016 • Grameen Danone Foods is responsible for the creation of about 1,600 jobs within a 30km radius around the plant. • Solar energy is used for heating up the water • Packaging of the yoghurt is fully biodegradable
  • 24. PURPOSE - What is the reason the organisation exists? - How can we best serve? - What is our strategic intent?Greatest challenge: Process innovation and partial ‘automation’ of impact Bina Nusantara
  • 25. PROPOSITION- What value do we deliver to the user?- What benefits are we making more accessible, usable orenjoyable?- How is this different from the status quo?- What are the mission-critical elements of the user experience? Bina Nusantara
  • 26. CHANNELS /MARKETING- Through which Channels (media, touchpoints, delivery partners,networks etc) are we going to reach our users and deliver value?- Which ones are most efficient? Effective?- How are we integrating them with user habits?- How can we reach scale by using peer- and self-managedChannels?- What emotions, mindsets and behaviours do we need tochange and how can we best communicate this? Bina Nusantara
  • 27. USERS- Whose needs are we focused on relieving?- What exact problems are we helping to solve?- What trends and insights are we capitalising on?Bina Nusantara
  • 28. ACTIVITIES- What Activities does our Value Proposition require?- Our Delivery Channels?- Our Marketing?- What do we have to do to keep our collaborationand networks intact?Bina Nusantara
  • 29. RESOURCES - What Resources does our Value Proposition require? - Our Delivery Channels? - Our Marketing? - Our Collaborations?Bina Nusantara
  • 30. COLLABORATIONS - Who are our key collaborators without which we could not achieve our strategy? - What power players can we bring on board to deliver change at scale? - Which Resources and Activities do they bring? - What are their motivations for collabortion? - What could get in the way?Bina Nusantara
  • 31. COSTS - What are the most important costs inherent in our delivery model? - Which Key Resources are most expensive? - Which Key Activities are most expensive? - What do we need to invest in to ensure our Purpose is achieved?Bina Nusantara
  • 32. PPP COSTS - What social, environmental and wellbeing costs are a direct or indirect outcome of our Key Activities and Key Resources?- How can we mitigate against this?Bina Nusantara
  • 33. REVENUES - What are our revenue streams? - Who are we charging and what price? - What value are our funders / donors / users really willing to pay? - How much does each Revenue Stream contribute to overall revenues? - What is break-even target?Bina Nusantara
  • 34. PPP IMPACTS- What outcomes do we value most in alignment with ourPurpose?- How can we measure these accurately and cost-effectively?- Is there a way to include measurement within the userexperience?Bina Nusantara
  • 35. RISKS- What are the most obvious risks associated with this model?- What could get in the way?Bina Nusantara
  • 36. ASSUMPTIONS - What core assumptions do we make about users, collaborators, resources, channels and the world which underpin this model?Bina Nusantara
  • 37. Bina Nusantara
  • 38. TEST CASE 1: PEE POO BAG VIDEO 1 VIDEO 2Bina Nusantara
  • 39. TEST CASE 2 : Restore Products The first: a brand of natural Restore cleaning products. The second is the Restore Refilling station: a patented in-store kiosk that allows consumers to bring back empty product bottles and refill them. A machine reads a bar code, mixes the product, refills the bottle, and prints out a discount coupon. The kiosk system helps to reduce costs for manufacturers, retailers, and consumers while keeping plastic out of landfills and reducing water consumption. In 2002, Brown deployed kiosks in six stores. Today there are 35 stores around USA, and also 14 refill machines in in eight states. Laurie Brown, Minneapolis, Minn. In 2002, revenue was just under $1 million. Today revenue more than $15 millionBina Nusantara http://www.restoreproducts.com/
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