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Prabhu Kandachar Professor Sustainable and Inclusive Innovations Challenges and Opportunities Delft University of Technology Helsinki, 17 Jan. 2011

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Page 1: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Prabhu Kandachar Professor

Sustainable and

Inclusive Innovations

-‐ Challenges and Opportunities

Delft University of Technology

Helsinki, 17 Jan. 2011

Page 2: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Contents1. Introduction2. About our work3. The State of Our World4. The Resilient BoP5. Secrets of BoP6. What Next?7. Implications8. Summary

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What  are  Sustainable  and  Inclusive  Innovations  ?*

Innovations  that

*  Add  value  to  the  life  of  the  people  much  beyond  the  immediate  use  of  the  product  or  service

*  Create  products/services  at  high  quality  at  an  affordable  price

*  Address  the  challenge  of  resource  use  efficiency  

*  Are  scalable  and  replicable  to  suit  local  requirements

*Source:  CII-­‐ITC  Centre  of  Excellence  for  Sustainable  Development,  New  Delhi,  2010

Page 4: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

To  tackle  2  major  challenges  of  the  21st  century:  Poverty  and  Resource  Strain.

Source:  Chetan  Shivarama Source:  scope-­‐mag.com

Why  are  they  needed?  

Urbanization

Page 5: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Industrial Design Engineering Delft, The Netherlands

Focus:Products for Daily Use

1969 -­ Largest University-­based Design Course Worldwide>2000 Students -­ 300 Scientific Staff

Page 6: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

6

Global Balancing Act Social, Ecological & Economical

Page 7: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 8: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Luring  Market  at  Base-­‐of-­‐the-­‐Pyramid

Page 9: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Challenges  of  the  21st Century:  POVERTY

Page 10: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 11: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Some  Examples  (Running)

ResearchSouth  Africa/India

Solar  Cooking Cheap  Housing   -­‐ Sudan

BB-CONNetherlands

Menstrual  Hygiene

ResearchSouth  Africa

Page 12: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Some  Recent  Examples  in  Africa     Supported  by  TUDelft

Windmill + desalination pump60.000 litres/daywww.thewinddrinker.com

Clean  Drinking  WaterSomalia

Adjustable  Eye  Glasses  Ghana

Production costs: 1 EuroLocal Optometristswww.focus-­‐on-­‐vision.org

Slippers  (Recycled  Tires)  South  Africa

Local resources/productionSales  in  NLwww.plakkies.co.za

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Some  Product  Design  Examples  (Completed)

Vestergaard FrandsenDenmarkAug  2006

Safe  Drinking  Water-­‐ Ghana

Insect  Repellant  Lamp  -­‐ India

PHILIPSNetherlandsDec  2008

Solar  Lamp  -­‐Combodia

KAMWORKSCombodiaOct  2005

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How  we  do  it?   Example  Lighting  for  Combodia

RESEARCH  &  DESIGN                                        BUILD                                                                                                                IMPLEMENTLocal  Production

Packaging

Distribution

Page 15: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 16: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Publications, Keynotes, Courses, etc

Page 17: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Poverty  Numbers  living  under  $1.25  a  day

India  456  Million

China  208  Million

Nigeria  88  Million

Poverty  Numbers  of  malnourished  children  under  five  years  old

7  Million52  Million

6  Million

Source:  On-­‐line  atlas  of  millennium  development  goals,  World  Bank  2009.

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Emerging  Markets   BRICs  (Brazil,  Russia,  India,  China,  etc)

Page 19: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 20: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 21: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Poverty  in  Emerging  Markets:  China,  India  and  Brazil  

Substantial  but  uneven  progress

Growth  with  disappointing  outcomes  for  the  poor

Poverty  reduction  with  little  economic  growth

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Progress in EducationTertiary EducationEnrolment Ratio2000-2007

Source:Trends in Global Higher Education UNESCO 2009

Page 23: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Improved Economy -­ -­ -­

ReducedChildMalnutrition

Source:  World  Health  Organisation   Healthcare  Statistics

Page 24: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

The Expanding World Middle Class

two most populous countries

Rising incomes ..great impact on global demand

Expanding middle class..changing spending patterns ...Competition for resources...and energy

Environmental pressures may become even more acute

Consequences

Page 25: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 26: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Innovations in China & India -­ Mobility

Boom in car sales -Traffic mayhem

Concept : Cheaper than a subwayPartly solar-powered Spans two lanes Carriage raised 2 m. above roadsAllows cars to pass, or be passed

Company:Shenzhen Huashi Future Parking Equipment

Page 27: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Philanthropreneurship: Aravind Eye Care System, India(Philanthropy + Entrepreneurship)

Technology: Own Intraocular Lens (IOL) (4-5$)300,000 eye cataract surgeries/year - Instant diagnosis with broadband connections 20-minute surgery - High volume at low cost. Cost per surgery: $35 (2007-08)Charges 1/3 of clients & free care to 2/3 of rest Has treated over 2.4 million.

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Cinema  for  Everyone  in  Mexico

Source:  www.cinepop.com.mx/

Business  Model:  Cinema  as  a  Market  Place

Page 29: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 30: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 31: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy
Page 32: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Companies,  Markets,  Industries,  Geographies,  Intellectual  disciplines,  and  Generations.

Edge  or  Periphery People:

AgedDisabledUnderservedPoor

Approach:Out-­‐of-­‐the-­‐BoxDesign-­‐for-­‐AllUniversal  DesignInclusive  Design

Adapted  from:  Hagel  &  Brown:  Businessweek.com  (nov2007)

Page 33: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Innovation:  Development  of  new  products  or  processesCommercialisationKnow-­‐why  and  how

Adapted to or developed for local needs, produced & used locally

Page 34: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Learning from failures

Poverty Still nagging (from1.9 in 1981 to 1.4 billion poor -$1.25 a day - in 2005)

Need inexpensive offerings on shoestring budgets for 2 to 3 billion new middle class consumers in the next decade

Half of the world now lives in urban settlements. Next 30 years, growth mainly in urban part of the developing world

Next set of driving forces for innovation: Affordability and Sustainability

Page 35: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Learning  from  Failures  ...Good  intentions....good  results???...

It  is  great  that  folks  are  designing  products  for  the  developing  world,  but  what  makes  designers  and  other  people  think  that  the  developed  world  knows  more  about  what  people  in  developing  countries  need?......some  one  from  a  developing  country  (August  2010)

Page 36: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Good  intentions....good  results???... Case:  PlayPump  in  Southern  Africa

Idea  (1990s):

Children  spin  on  a  merry-­‐go-­‐round    -­‐Connected  to  a  water  pump  -­‐Generate  clean  water  without  hard  work  of  traditional  hand  pumps.

Page 37: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Good  intentions....good  results???... Case:  PlayPump  in  Southern  Africa

2006:  Funds  worth  $60  million  raised  in  US  to  install  4,000  pumps  in  Africa  by  2010...to  benefit  up  to  10  million  people  of  clean  drinking  water

Somewhere  along  the  way,  PlayPumps  stopped  being  a  smart  home  grown  idea

Why???

Page 38: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Good  intentions....good  results???... Case:  PlayPump  in  Southern  Africa

CRITICISMS

-­‐ Donor-­‐pleasing,  top-­‐down  solution.  -­‐ Does  not  fit  many  of  the  target  communities-­‐ Too  expensive  ($14,000  each,  4x  traditional        pump  systems)-­‐ Requires  specialized  skills  to  repair-­‐ Spare  parts  are  hard  to  find/expensive  to  replace-­‐150,000  of  375,000  hand  pumps  in  Africa  are  not  in  use  (poor  maintenance  or  construction)

Source:  Guardian,  24  Nov.  2009

Page 39: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Source:  growthcommission.org

inclusive. For sustainable & inclusive growth, invest in people & infrastructure (especially in urban environments)

Recommendations  from  Administrators,  Banks,  Ministers,  World  Bank,  etc  (2008)

Page 40: Sustainable and Inclusive Innovations - innoplexus.pbworks.cominnoplexus.pbworks.com/f/Presentation+Prabhu+Kanda... · Philanthropreneurship: Aravind Eye Care System, India (Philanthropy

Five  Engineering  Development  Goals

1. Energy:  Use  existing  sustainable  energy  technologies  and  reduce  energy  waste.

2. Water:  Replenish  groundwater  sources,  improve  storage  of  excess  water  and  increase  energy  efficiencies  of  desalination.

3. Food:  Reduce  food  waste  and  resolve  the  politics  of  hunger.

4. Urbanisation:  Meet  the  challenge  of  slums  and  defending  against  sea-­‐level  rises.

5. Finance:  Empower  communities  and  enable  implementation.

Instt.  of  Mech.  Engineers,  UK,  Jan  2011

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Source:  Harvard  Business  Review  July August  2010

Mobility:  Nano

30  open  heart  surgeries    &  28  catheterisation  procedures/day  [8x  average  at  other  Indian  hospitals]

Assembly  line  heart  surgery,  reduces  cost,  aiming  at  zero  mortality.

Healthcare

EnergySELCO:  Solar  energy  company  business  with  a  social  purpose  -­‐ Heavy  reliance  on  innovative  &  customised  design  Decentralised  energy  delivery  

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Additional  Insights  -­‐EasterlyHow  come  $2.3  trillion  of  Western  aid  has  been  spent  in  the  last  50  years  mostly  in  Africa,  and  yet  millions  of  children  still  die  of  preventable  diseases  like  dysentery,  cholera  and  malaria?  

Success  cannot  be  planned  top-­‐down.  As  has  happened  in  Japan,  Thailand,  Singapore,  Malaysia,  China  and  India,  it  must  be  home  grown.  

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New  Innovations    Developing   Several  Opportunities- Local ... Local innovation refers to the Indigenous Knowledge within a social group, incorporating learning from own experience over generations but also knowledge gained from other sources and fully internalised within local ways of thinking and doing.- Grassroots ... Users with limited material resources driving knowledge-intensive, informal innovation. - Inclusive... incorporating small businesses & farmers (for instance) to transform the market chain to increase value in one or more of the links and for the chain as a whole. - Frugal or Reverse or Constraint-based... Start with the needs of poor consumers, striping products down to bare essentials, affordable, context resistant and easy to use. - Open source, Crowd sourcing, Distributed Innovation, etc... Users (external ideas) generate functionally novel innovations as they experience novel needs well ahead of manufacturers. Using external ideas as well as internal ideas, and internal and external paths to market, to advance firm's technology

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Chronic diseases, Environmental degradation, Racism, Traffic, Poverty, Growing gap between haves and have-nots, etc.

Persistent Challenges

Defy quick fixes, Build and dissipate slowly over time,

organization, but .....

Affect all, and their components are tightly coupled.

Characteristics

Why Environmental Problems Are So Hard to Solve .. Read Mason, R., and I. Mitroff. 1981. Challenging strategic planning assumptions. John Wiley & Sons, New York, 324 pp.

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Challenging Design Discipline

Simple problems : Both the problem and the solution are known. Example: A leak under your kitchen sink. Problem is obvious and two plumbers will likely agree on the solution.

Complex problems : Problem is known but not the solution.Example: Design a higher capacity disk drive. The problem is clear, but understanding how to solve is not clear.

" Wicked problems " go far beyond these in terms of difficulty. Examples: AIDS epidemic, poverty, sustainability, etc

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Context

Design for the Periphery (Edge) Innovation Source

Rapid change, multiple parameters, lots of constraintsComplex

Technical systems vs. Socio-technical systems

Characteristics

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Science of Complexity

Systemic Thinking/Design Thinking

Designing Complex Adaptive and Flexible Systems, also for Sustainable Innovations

Tools Exploiting Opportunities

Innovations (Radical)

- Local- Grassroots- Inclusive- Frugal- Open source- Reverse- Crowd sourcing, etc

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Increasing Complexity

Problem Framing/Solving

Sustainable and Inclusive Innovations

Approach

Requires Tools

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Thank [email protected]