waag - public session presentation
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@bart tunnissen - director projectdevelopment@waag.org
Lebanon - Oktober 2014
maandag 20 oktober 14
faq mission Creative technology for social innovation
organisation Founded in 1994; 50+ people: developers, designers, researchers
Amsterdam based.
Activities Researching culture, behavior & technology Developing prototypes and pilots Organizing interventions & events
Method Users as designers Open innovation Co-design Community driven
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dna - open innovation
neue kombinationen
users asdesigners
the hidden narrative
code =
culture
learning by making
critical design
if you can’t open it, you don’t own it
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invention - creation - innovation
Ideas Needs
Requirements Solutions
ArtScience
TechnologySociety
Que
stion
Pilot
Prototype
inventioncuriosity driven research
creationcontext driven research
innovationtransformation research
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////
Top down and systemic approaches European Innovation Partnerships, Smart Cities, FI-PPP; Cloud strategy; challenge.gov eHealth, eGovernment
Community Competition
Distributed
Central
network effect of the internet
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////
Bottom-up and grassroots (open source, open data, open hardware, open knowledge) P2P, e-democracyCAPS, Internet Science, DSI, web entrepreneurship
Top down and systemic approaches European Innovation Partnerships, Smart Cities, FI-PPP; Cloud strategy; challenge.gov eHealth, eGovernment
Community Competition
Distributed
Central
network effect of the internet
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relations - networks are globalPartners
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innovation starts local
Knowledge institutes
Developer hubs
Accelerators
Innovation labs
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collaboration
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waag labs
Creative Care Lab!Wet Lab!
Open Design Lab!
Future Internet Lab!
Creative Learning Lab!
Urban Reality Lab!
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if you can’t open it, you don’t own it
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dismantle a phone...
“we want 21st Century technology without 19th Century ethics” George Monbiot, The Guardian , 24 September 2013
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maandag 20 oktober 14
battery in smartphone
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battery in raw state
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found in...
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Africa
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strategy
B2C
Evangelist Lohas Drifters
concerned & readymajor action taken
aware & critical minor action taken
convenience & image
intent to take action
June 2013 2014-2015 2016
“I think it is easy for companies to do good”
“I want to live greener”
“I can make a difference”
“I cannot make a difference by myself” “I will do it
if you do it”
“I understand it is difficult”
B2B NGO's Government institutions Companies
Sales strategy long term
Product strategy licencing own development
Sales 10.000 phones 100.000 phones
Marketing message "buy fair" "buy trendy"
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clear deal
Each cube represents one euro of Fairphone’s
consumer price and is based on the production
of 25,000 phones. Figures are for 2013 and have
been rounded for ease of reading.
Visit fairphone.com/2013/09/12/costbreakdown
where you can download a Key for a detailed
explanation.
= €1
Consumer price €325
Average Value Added Tax - € 56.50
Levies/tax (private copying , WEEE) - € 6.75
Resellers’ margin - € 4.25
Average Sales Price € 257.50
.com
At Fairphone, we want to start a movement to change the way products are made. But just as importantly, we want to make a change through the way we do business. That means being open and transparent about what we do and where we expect our money (and yours) will go. So, here's what happens to the €325 for every Fairphone sold.
Cost %reakdown of
the First Fairphone
Interventions )DLUSKRQH�SXWV�VRFLDO�YDOXHV�UVW�LQ�RXU�GHFLVLRQ�PDNLQJ�process, which affects the entire production of this phone. We also actively seek ways to drive sustainable change in the supply chain and life cycle of our smartphone. We call these our “interventions”. Our LQWHUYHQWLRQV�IROORZ�WKH�DFWLRQ�DUHDV�RI�RXU�ORQJ�WHUP�URDG�PDS�WR�D�IDLUHU�HFRQRP\��IURP�VRXUFLQJ�FRQIOLFW�IUHH�PLQHUDOV�IURP�'5�&RQJR�WR�IDFLOLWDWLQJ�EHWWHU�H�ZDVWH�solutions.
€ 22
LASTING VALUE��� ,QLWLDWLYHV�WR�UHF\FOH�H[LVWLQJ�H�ZDVWH��� &RRUGLQDWLRQ�IRU�)DLUSKRQH�H�ZDVWH
PRECIOUS MATERIALS€ 3.75 Stakeholder meetings, participation � &RQIOLFW�)UHH�7LQ�,QLWLDWLYH��&)7,��DQG�� Solutions for Hope, and monitoring initiatives for responsible sourcing
SMART DESIGN€ 4 Open source development, community support, Fairphone operating system
MADE WITH CARE€ 7.50 Made with Care Program€ 1.93 Worker welfare fund ($2.50)
€ 5 Reserve (for unexpected stuff), investments and� QDQFLQJ�FRVWV
Initial Operating Result € 5
€ 4.75 Project development, prototyping
�������3HUVRQQHO�FRVWV��RIFH�VSDFH��,7��WUDYHO
€ 11.25 Legal, accounting, other outside service providers
€ 6 Events, communications and public engagement
€ 5.25 Webshop hosting, payment facilities, customer support
Operations € 45
€ 185
€ 129.75 Design, engineering, components, manufacturing and assembly costs
��� &HUWLFDWLRQV��HJ��&(��*&)��5R+6��)&&��5($&+�� and testing
€ 1 Packaging and (repair) manuals
€ 2 Inbound logistics
€ 25 Royalties to patent holders, IP licenses
€ 18.25 Estimated warranty costs (including spare parts, labor and transport)
Product
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towards a fair market
Fairer
Conflict free coltan and tungstenOpen source phone Community Living wages 2nd tier Co-op in mining
Fair Trade Cobalt Transparent ChainFair Trade Gold
Worldwide market Massive social impact
conflict free tinLiving wages 1st tier End-of-chain closed loop
FairPhone hits the market
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Social entrepeneurship
Page 2Updated October 2014 www.fairphone.com
What are Fairphone’s main areas in creating social impact?
Fairphone at a glance
Started as a campaign within Waag Society in 2010;
registered as an independent social enterprise in 2013
Using a smartphone as a storytelling device to reconnect
consumers to their products and uncover how things are made
50,000 Fairphones sold (and counting)
31 employees with 14 different nationalities and
10 languages spoken
100% independently ƒPCPEGF�PQ�FQPCVKQPU�QT�
venture capital) to preserve our social values
Surrounded by an enthusiastic community of Fairphone owners, almost 70,000 Facebook fans, 14,000 Twitter
followers and 42,000 newsletter subscribers
Based in Amsterdam, the Netherlands
Fairphone at a glance
Started as a campaign within Waag Society in 2010;
registered as an independent social enterprise in 2013
Using a smartphone as a storytelling device to reconnect
consumers to their products and uncover how things are made
50,000 Fairphones sold (and counting)
31 employees with 14 different nationalities and
10 languages spoken
100% independently ƒPCPEGF�PQ�FQPCVKQPU�QT�
venture capital) to preserve our social values
Surrounded by an enthusiastic community of Fairphone owners,
almost 70,000 Facebook fans, 14,000 Twitter followers and
42,000 newsletter subscribers
Based in Amsterdam, the Netherlands
How did you get funding? Who were your investors?(CKTRJQPG�KU�EQORNGVGN[�KPFGRGPFGPVN[�ƒPCPEGF��9G�UVCTVGF�as a project within Waag Society, a research institute that invests in creative technology projects for social development. At that time, Fairphone received funding from Waag, Stichting Doen and the NCDO (about 300,000 euros over two and a half years). We also received 10,000 euros as winner of the ASN Bank World Prize. After becoming a social enterprise and working to produce the phone, we received 18,000 euros from Bethnal Green Ventures to participate in a startup boot camp in London and develop our business proposition, plus 400,000 euros in private funding to cover operational costs until the start of pre-orders in May 2013. Since that point in time, our operations have been funded by the sales of our phone. #UKFG� HTQO�ƒPCPEKCN� EQPVTKDWVKQPU�� (CKTRJQPG� JCU� TGEGKXGF�support (in time and commitment) from a number of partners, including Schrijf-Schrijf, ActionAid, Stichting Doen, Vodafone, KPN, Rabo Mobiel, GSM RetourPlan, GSM Loket and many other individuals and organizations.
Fairphone is working to achieve our ambitions step by step, HQEWUKPI� QP� CEVKXKVKGU� CPF� KPVGTXGPVKQPU� YKVJKP� ƒXG� EQTG�action areas:
Mining
We want to source materials that support local economies, not armed militias. We’re starting with conflict-free minerals from the DR Congo.
Design
We’re focusing on longevity and repairability to extend the phone’s usable life and give buyers more control over their products.
Manufacturing
Factory workers deserve safe conditions, fair wages and worker representation. We’re working closely with manufacturers that want to invest in employee wellbeing.
Life Cycle
We’re addressing the full lifespan of mobile phones, including use, reuse and safe recycling.
Social Entrepreneurship
We’re working to create a new economy with a focus on social values. By operating transparently and sharing the Fairphone story, we’re helping consumers make informed decisions about what they buy.
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maandag 20 oktober 14
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