tapping into the informal economy to create new opportunities for innovation - consumer faces
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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
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November 20-21, 2013 | Singapore
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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)
STREET VENDORS
QUALITATIVE
RECRUITERS
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
Why is studying the informal economy
important?
1. Fastest growing part of the global economy If the informal economy were a country, it would have the
world's second largest GDP
2. Many different types of innovation in the
informal economy
Grassroots/Jugaad/Frugal/Inclusive innovation
Solar bottle bulbs
A case study of how we looked at informal
economy to uncover opportunities for
innovation
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
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
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
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
Participants in this study
Client
Building management
Facilities manager
User
Tenants
Informal service provider
Push cart aunty and uncle +
Cleaning staff
Middle men (Garang guni
business)
Informants (Security guards)
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
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
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
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?
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
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
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
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?
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
1. Does the informal
economy exist in
my category and
how do I go about
identifying it?
Map out inefficiencies in
the market and identify
who may be servicing
them
2. What should I be
looking out for
when I am
observing the
informal system?
Activity flow, hidden
touch points and where
value is being created
Which areas can I
service or collaborate
with in the informal
economy?
3. How can I benefit
from looking at the
informal economy?
Consider how services
can be enhanced
Possible new revenue
streams
Uncover new needs
www.consumerfaces.com
www.bareinsights.wordpress.com
Thank You
In praise of shadows ….
Platinum Sponsor
Association Partners
Media Sponsors
Twitter Hashtag #QUAL360
November 20-21, 2013 | Singapore