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 1CLIMATE CHANGE CONFLICBEYOND PROFIT DEPRESSION SUICIDE 7. Bina Nusantara 8. PART 2BUSINESS MODEL VSIMPACT 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 DESCRIBESTHERATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, SCALES, SUSTAINS AND MEASURES IMPACTBina Nusantara 14. NOTEPEOPLE , PLANET, PROFITBina Nusantara 15. People Planet ProfitBina Nusantara 16. Why does it matter? People do not trust business. They increasingly see companiesas irresponsible, greedy and inhuman. Climate change andeconomic downturn have accelerated new expectations. Businesses need to reengage people, to understand theirnew 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 thebest things but also to do the right thing and business leaders whowant 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 ifbusiness 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 couldnt 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. Itis aboutmoving the issues of sustainability from the fringes to theheart ofbusiness. It demands that business leaders rethink fundamental strategicquestions why we exist, where we should focus, howwe aredifferent, and why people will choose it, want to work for us, andinvest in our business.Bina Nusantara 21. BACK TO BUSINESS MODEL VSIMPACT MODELBina Nusantara 22. Iteration NumberIMPACT MODEL CANVASHeadline ideaDesigned byDate CollaboratorsActivitiesPropositionChannels 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 weand collaborators? capitalising on?Resources PurposeMarketing- What stuff, people, infrastructure does our- What is the reason the organisation exists?- What attitudes or behaviours do we need toProposition 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 CostsFinancial CostsRevenue StreamsPPP 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 CANVASGrameen Danone FoodsScale 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 ActionsValue PropositionChannels & MarketingUsers LocalHow do people have to behaveThrough which Channels areWhat Activities do our Value What value do we deliver to theThrough which Channels are For whom are we creating value?What is the local context?during business as usual to we going to reach and keepPropositions 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 ourrelieving? What problems are wevalues and behaviours?Resources & Partnerships? users? Which ones work best?Our Fundraising Strategy?or enjoyable? How is this differentusers? Which ones work best? helping to solve?What are existing behavioursHow does this connect withWhich ones are most Our Growth Strategy? from our competitors? What are Which ones are mostand cultural codes we canour values, vision and org intent?What ownership structures do youcost-efficient? How are weWhat do we have to do to keepthe mission-critical elements of the user experience?cost-efficient? How are wePoor often tap into or piggy-back on?need to ensure congruence andintegrating 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 productionGrameen Danone children Bangladeshis andFoods brings daily56% of Maximizing impactGrameen BankfacilitiesSales ladies distribute from Bangladesh Create broadhealthy nutrition toEntrepreneurialBangladeshi Danone Foods Production of low income the yoghurt door-to- children under theawarenessBangladeshproducts doordistributors age of 5 suffer fromfor social business nutritionally deprivedMicro farmersGovernment Product sales moderate to severe Ensure qualitypopulations inFactory workersmalnutrition Distributioncontrol Bangladesh. TheyResources Channels & MarketingDonorsGlobe Enterprise as a offer a communitypiece ofWhat Resources (stuff, people,infrastructure) does out Valuebased businessThrough which Channels arewe going to reach and keep Who are our most important donors and funders? What needsWhat is the global context withinwhich we are working?a worldwide moveProposition require?model toin communication with ourdonors and policy makers? are they focused on meeting? What impacts potential andcurrent donor beliefs, valuesOur Delivery Channels?ment for social Our Funding Channels?Our Fundraising Strategy?produce yoghurt Which ones work best?Which ones are mostand behaviours?businessOur Growth Strategy?enriched with crucial cost-efficient? How are weThere are approximatelyintegrating them with user habits?Our partnerships?nutrients at a price of How can we reach scale? 925 million malnourishedpeople in the world.Production sites6 BDT (= 0.06 Danone FoodEUR). The production Gramene Bank There is a need forMicro farmersis designed to give asSocial enterpriseemployment all over theCollaboration partners Private Investorsworld. There ismany people as networkspossible a job. Investor Networksincreasing need and callfor for biodegradablePPP Costs packaging. Financial CostsRevenue StreamsPPP 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 purchasedWorker salaries from micro-farmers. none Distribution to sales ladies Revenue from product sales Sales ladies distribute the yoghurtInternal and external communication door-to-door and receive a 10%Managementprovision. 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 BAGVIDEO 1VIDEO 2Bina Nusantara 39. TEST CASE 2 : Restore ProductsThe first: a brand of natural Restore cleaning products.The second is the Restore Refilling station: a patentedin-store kiosk that allows consumers to bring backempty product bottles and refill them. A machine readsa bar code, mixes the product, refills the bottle, andprints out a discount coupon. The kiosk system helps to reduce costs formanufacturers, retailers, and consumers while keepingplastic out of landfills and reducing water consumption.In 2002, Brown deployed kiosks in six stores. Todaythere are 35 stores around USA, and also 14 refillmachines in in eight states. Laurie Brown, Minneapolis, Minn.In 2002, revenue was just under $1 million.Today revenue more than $15 millionBina Nusantarahttp://www.restoreproducts.com/