tapping into the informal economy to create new opportunities for innovation - consumer faces

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Twitter Hashtag #QUAL360 November 20-21, 2013 | Singapore

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Presented by Juliana Koh, Director, Consumer Faces and Manisha Dikshit, Managing Director, Consumer Faces at Qualitative360 Asia 2013 19-21 November 2013, Singapore This event is proudly organised by Merlien Institute Check out our upcoming events by visiting http://qual360.com/

TRANSCRIPT

Page 1: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Twitter Hashtag #QUAL360

November 20-21, 2013 | Singapore

Page 2: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Platinum Sponsor

Association Partners

Media Sponsors

Page 3: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Tapping into the informal economy to create

new opportunities for innovation

A case study in recycling and push cart aunties

Authors:

Manisha Dikshit (Consumer Faces Pte Ltd)

Juliana Koh (Consumer Faces Pte Ltd)

Roslind Yip (Rchitecture)

Page 5: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

STREET VENDORS

Page 8: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces
Page 9: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Characteristics of the Informal Economy

No formal wage structure ‘Illegal’ No government regulation

Tax evasion Low barrier of entry Social network driven

Seek autonomy and flexibility Survival driven

Page 10: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Why is studying the informal economy

important?

Page 11: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

1. Fastest growing part of the global economy If the informal economy were a country, it would have the

world's second largest GDP

Page 12: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

2. Many different types of innovation in the

informal economy

Grassroots/Jugaad/Frugal/Inclusive innovation

Solar bottle bulbs

Page 13: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

A case study of how we looked at informal

economy to uncover opportunities for

innovation

Page 14: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

The client CONTEXT:

Building management (client) wanted to consider how they can provide value

added services at low cost to tenants

Current VAS

Food services

Infrastructure management

Building cleaning services

Landscaping

X

X X

X

Recycling

?

Child care services

?

Entertainment

?

Counseling ? X X

X

Page 15: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Why consider leveraging informal service

provider and recycling as VAS?

• Better waste management service for tenants

• Enhanced corporate image as eco-friendly building

• It costs building management close to $0 to do recycling

Page 16: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Current office recycling eco system

Informal recycling system Push cart aunties, cleaners

Tenant’s disposal

Outside office door

Common garbage area

Common formalized recycling areas

Informal recycling areas (pantry, cargo lifts, where

aunty sits

Garung Guni Trucks

Sembawang corporation

INF

OR

MA

L S

YS

TE

M

Building management

Garung Guni Trucks

Page 17: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

The client

INTENT STATEMENT

Objective: How can we provide value added services to tenants by making

the current informal disposal/recycling system more effective?

Audience: Tenants

New Value: For tenants – Engagement in recycling and informal

economy; For building management - building brand image and value

added service at low cost, For cleaners - broad level improvement of work

environment and value of goods

Opportunity: Create new recycling solutions that integrate into the daily

life of office workers and create an appreciation of it

Risk: Inability to change mindsets/apathy towards recycling and interaction

with informal sector

Page 19: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Personal profile: Lives with children, works to keep busy and earn some money, self motivated in search for work

ROLE AND BEHAVIOUR

Recycling ‘bundled service’ with cleaning office

Does not influence recycling behaviour among

tenants

Keeps within building policy

Has an unofficial “office” for storing and sorting

the waste paper

NEED STATE High margin

Maximize resource of time and

capacity

Safety

Access and storage

AUNTY: FREE LANCE CLEANER

High ability to

influence

change in

behaviour

High interest in

recycling

High cost

sensitivity

Low cost

sensitivity

Low

Interest in

recycling

Low ability to

influence

change in

behaviour

Page 20: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Current office recycling service system

Dispose waste

paper whichever

way is the most

convenient

Collects waste

wherever she

sees it

Pack & sort waste

paper

Provide general

disposal bin

(No recycling)

“Where can I dispose carton

boxes?”

“Bring it to general disposal

bin.”

“Put it outside office and I’ll

collect.”

“John”

Tenant

“Annie”

Building Management

“Aunty

Cleaner/Waste

paper collector

Random disposal

point

Transport to

collection point

Pick up by waste

disposal service

Fo

rma

l S

erv

ice

Pro

vid

er

Se

rvic

e U

se

r In

form

al S

erv

ice

Pro

vid

er

Information Dispose/Collect Waste Paper

SERVICE EFFICIENCY GAPS

Page 21: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Service efficiency gap

Ignorance / Indifference towards recycling

among tenants

Out of sight, out of mind: Recycled materials are

perceived to be part of garbage and kept away

from public sight and hidden

Building management information gap

Inconsistent & insufficient information on right

way to dispose waste paper

No clear designated disposal points

Page 22: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Designing solutions for Service efficiency gap

Green Ambassador go-to person for right disposal/recycling info

“Did you know?” stickers to educate office on right waste paper recycling

and disposal points

Boot camp for tenants to create useful outcome of recycled materials

Periodic eco-related events and activities at compound (e.g. contest, quiz,

workshop, giveaway)

CHALLENGE

<FORMALIZED COMMUNICATION>

How do we inform & encourage service users of right disposal habits to optimize recycling?

Page 23: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Service Packages

Building on current system

New business opportunity integrating with informal economy

Service Package Inclusive Basic Regular Plus

Services

Via Aunty Ad-hoc/Self-drop recycling service

Vacuuming, dusting, washing cups, cleaning windows, clearing bins,

watering plants, taking away carton boxes

+ Via Building management

On-demand recycling service

Mopping, wiping of tables On-demand on call service, In-office

recycling bins

Frequency/Week (Month)

n.a 1 (4) 3 (12) 5 (20)

Pricing F.O.C. $xxx $yyy $zzz

Page 24: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Current office recycling service system

Dispose waste

paper whichever

way is the most

convenient

Collects waste

wherever she

sees it

Pack & sort waste

paper

Provide general

disposal bin

(No recycling)

“Where can I dispose carton

boxes?”

“Bring it to general disposal

bin.”

“Put it outside office and I’ll

collect.”

“John”

Tenant

“Annie”

Building Management

“Aunty

Cleaner/Waste

paper collector

Random disposal

point

Transport to

collection point

Pick up by waste

disposal service

Fo

rma

l S

erv

ice

Pro

vid

er

Se

rvic

e U

se

r In

form

al S

erv

ice

Pro

vid

er

Information Dispose/Collect Waste Paper

SOCIAL WELFARE GAPS

Page 25: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Push cart aunty’s work flow and pain points

CLEAN PICK UP STORE CARRY SELL REMOVAL SORT

COLLECTION TRANSPORT SELL ASSEMBLY &

DISPOSAL PACK & STORE

• Not much is collected as not

everybody knows where to

dispose

• Only have access to things

disposed downstairs

• Turf fights amongst cleaners

and push cart aunties

• Lack of formal storage space leads to fire

hazards and friction with building

management

• Things are left on the street, or in rubbish

collection area which decreases value of

product

• Lack of pre sorting by users lead to push

cart aunties having to sort them out

manually

• Carts are heavy and

packed up to 70 – 100

Kg at one time

• Pushing on the road is

dangerous

• Weather dependent

• Garung Guni trucks

collection points only

happen at fixed hours

and one cannot miss it

PA

INP

OIN

TS

Page 26: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Designing solutions for Social Welfare gap

Informal recycling push cart innovation with safety and productivity

features

Safety education for Push Cart Aunties in collaboration with NEA and MCYS

via Semb Corp/Garang guni truck

Aunty Hub: Designated storage place for such waste paper collection within

building

Tenant education on sorting to aid in increase value creation of recycled

collection

CHALLENGE

<ENABLING PROVIDERS>

How to improve welfare and without convenience or productivity trade off?

Page 27: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Benefit to overall system

Building management

VAS at low cost

Brand image as green campus

Government

Support marginalized

workers

Office recycling system

Tenant

Convenience

CSR

Push cart aunties and cleaners

Work safety

Maximize value

Better working relationship

Garang Guni truck

Bigger collection for more

sales

FORMAL INFORMAL

Page 31: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

www.consumerfaces.com

www.bareinsights.wordpress.com

[email protected]

Thank You

In praise of shadows ….

Page 32: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Platinum Sponsor

Association Partners

Media Sponsors

Page 33: Tapping into the informal economy to create new opportunities for innovation - Consumer Faces

Twitter Hashtag #QUAL360

November 20-21, 2013 | Singapore