aps1015h class 10 - design thinking 2

APS 1015H: Social Entrepreneurship

Class 10: Design Thinking – Part 2

Wednesday, November 23, 2011

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Instructors: Norm Tasevski ([email protected]) Karim Harji ([email protected])

© Norm Tasevski & Assaf Weisz

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Agenda

•  Unreasonable Institute •  Preparing for your Pitches •  Design Thinking – Part 2 •  Review of the course •  Next week

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Your Investment Pitches…

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Pitch guidelines

•  Due Dates –  Social Pitch: Midnight on Sunday, Nov 27 –  Angel Pitch: Midnight on Sunday, Dec 4

•  Format –  PowerPoint deck –  1 page Précis

•  Time Allotment –  12 min presentation (strict) – will give you 5 and 2 minute

warnings –  8 min Q&A

•  Grading –  To be done by Norm/Karim –  Judges will inform us, but not assign your grades

•  Feedback from Judges –  Norm/Karim will email our/judges feedback shortly after the

class to integrate into angel investor pitch 5


Timing

•  Arrive by 8:00!!

•  We will go in order – Group 1 goes first, Group 2 goes second, etc

•  At the end of the pitches, the judges will deliberate (for 10 minutes)

•  Judges will then provide feedback to the entire class (Karim and I will provide individual group feedback)

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Advice for your pitches

•  Focus on the key components of the business model, and highlight the key financial #s –  Can you clearly explain how your business works? How it

makes money? How it generates social/environmental change?

•  Comfortably stick to the time allotment –  In your practice, aim to deliver your presentation in 10-11

minutes

•  Anticipate the investor questions –  If you were investing your own money into the business,

what would you care to know about the business model?

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Social Investment Pitch…

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•  Overview and mission •  Management and

Advisors •  Problem

–  social issue being addressed

•  Size of the problem –  how big is the social issue

•  Solution –  Here’s how it works…

•  Value proposition –  Inc. social benefit

•  Business model •  Competitive advantage •  Collaboration/

partnerships •  Marketing and Sales •  Financial projections •  Financial requirements


Angel Investment Pitch…

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•  Overview and mission •  Management and

Advisors •  Customer problem •  Market opportunity/size •  Solution

–  Inc. social issue being addressed

•  Value Proposition •  Competitive advantage •  Where the solution fits

•  Business model •  Marketing and sales •  Financial projections •  Financing requirements


PowerPoint tips

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Design Thinking - Part 2


The Design Thinking Process

13 Source: IDEO (www.ideo.com)

Week 4 Today

Experimentation

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“Experimentation” – Create a Prototype


Step 1:

–  Build a storyboard – Diagram the “story”

–  Tips: •  Make simple sketches! •  Create a narrative (e.g.

“here’s how it works…”) •  Focus on the experience

of the user/customer




Step 2:

–  Build a prototype!! –  Tips:

•  Build a “good enough” prototype (both for products and services)

•  Give it to others to use/experience

•  Watch people use/experience it (don’t just talk to them about it)




Step 3:

–  Get feedback on the prototype

–  Tips: •  Figure out what features

you want to test •  ID the most important

questions you want answered

•  Figure out where and how you want it tested

Evolution

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“Evolution” – Build an Experience


Step 1:

–  Integrate feedback into new prototype versions

–  Tips: •  Evaluate the relevance of

feedback •  Build the next “good enough”

prototype •  Repeat until you have

something your users/customers are happy with


“Evolution” – Build an Experience


Step 2:

–  Design a final product/service

– Sell it!! –  Tips:

•  ID the resources you need (materials, funds, time and people)

•  Pitch! •  Build partnerships •  Plan next steps

Break

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Course Summary…

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Motivation

Innovation

Resourcefulness

Risk Taking

How is Social Entrepreneurship Different?


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What Motivates The Social/Environmental Entrepreneur?

“…it was an epiphanal experience…” Ray Anderson, Interface Carpets

“I heard the same story again and again. Someone had experienced an

intense kind of pain that branded them in some way. They said, ‘I had’ to do

this. There was nothing else I could do.”

Jody Jensen, Ashoka

“I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of

hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that

kind of situation.” Mohammed Yunus, Grameen Bank

“…that made a real impression on me…”

Jeff Skoll, eBay, Skoll Foundation, etc.


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-Coffee -Food -Merchandise

-Coffee shops

-Kiosks

-Personal (Baristas) -Online, print

ads -Adults that

want a place to

relax, work quietly, meet

friends, etc

-Locations -Coffee making

equipment -Baristas

-Coffee roasting/brewing

-Processing

orders

-Farmers -Suppliers

-Staff training

-Asset acquisition -Marketing

-In-store Purchases


Tip…

•  Be a Business Model “Alchemist” – You need to go through the business model process many times in order to figure out which model best fits

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Cost Drivers and Revenue Sources !

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-???!

-???!


Where does HR Fit?

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Where does Marketing Fit?

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Embedding “Social” across the Business Model

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For-Profit Corporation!

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Non-Profit Corporation!

Charity!Partnership!

Sole Proprietorship!

Co-Operative Corporation!


MORE DEBT-LIKE

36 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx

Financing Options – Over the Social Entrepreneurship “Life Cycle”

IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT

GRANTS

MORE EQUITY-LIKE

SOCIAL VENTURE CAPITAL FUNDS

ANGEL INVESTMENT VENTURE CAPITAL

PROGRAM-‐RELATED INVESTMENT/RECOVERABLE GRANTS

FORGIVABLE LOANS

SOCIALLY RESPONSIBLE INVESTMENT FUNDS

BELOW-‐MARKET DEBT

MARKET-‐RATE DEBT


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Aligning Supply and Demand

Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx


Lessons from the Road Trips

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Lessons from Guest Speakers

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Next Week

•  Be here for 8:00am!!

•  Deliverables –  Pitches due at Midnight

Sunday –  1 page Précis by

Midnight Sunday

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