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Inclusive business model - 19639 Importance

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Inclusive business models aim to include poor communities in company supply chains and develop affordable goods and services for them. This benefits companies through building new markets and strengthening supply chains, while also generating income and improving lives for people at the bottom of the pyramid. The document discusses types of inclusive business models involving the poor as suppliers, consumers, or entrepreneurs. It also outlines steps to identify opportunities, develop business models, implement them, and analyze their impact on achieving both economic and human development through inclusive markets.

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Inclusive business model - 19639 Importance
For the Bottom of The Pyramid! 19639
Inclusive business model - 19639 Importance
Inclusive business models include the poor into a companys supply chains as employees, producers and business owners or develop affordable goods and services needed by the poor.
Inclusive Business Model? Types of Inclusive Business Models The Role of Inclusive Business for Development Work Levels of Inclusive Market Development Environmental Sustainability Tools to support companies for inclusive business models Developing inclusive business models Implementing inclusive business models Developing a project
Inclusive business model - 19639 Importance
Benefits Builds new markets Strengthens supply chains Generates income for BoP Improves reputation Drives innovations Retains employees Satisfies basic needs Increases productivity Empowers the Rural!
Types of Inclusive Business Models Poor as Company Benefits Benefits of the poor Example SUPPLIER Strengthening supply chains Reducing cost Improving the product Increasing incomes Building skills Empowering communities Bionexx, Malaria medicine production in Madagascar CONSUMER Building new markets Increasing revenues Improved productivity and quality of life Cost savings Choice and voice M-Pesa, Mobile Banking by Safaricom in Kenya ENTREPRENEUR Scaling up and g fast growth Deepening market penetration and increasing sales Income opportunities Skills Empowerment Honeycare: Brokering Sustainable honey production by smallholder farmers, Kenya
Economic Development as well as Human Development. Inclusive markets are markets that include the poor and other marginalised groups(e.g. women, youth and indigenous people) on the demand side as clients and customers and on the supply side as employees, producers and business owners at various points along value chains. Market System Development Drives: Innovation Incentives Information
Inclusive business model - 19639 Importance
Identifying opportunities Developing the business model Implementing the model Analysing its impact
Leverage Innovation What are More Efficient ways of production and consumption? Meet Needs Where do opportunities exist to improve well being? Use Resources What resources exist to respond to needs and improve well being? Eliminate Inefficiencies Where are resources wasted in the life cycle?
5 market Constraints Market information Regulatory environment Physical infrastructure Knowledge and skills Access to financial services 5 General Strategies Adapt products and processes Invest in removing constraints Leverage the strengths of the poor Combine re-sources and capabilities Engage in policy dialogue with governments
Inclusive business model - 19639 Importance
1. BUSINESS MODEL What is the value proposition of the company? What goods or services does it provide? Who are the customers? What activities does the company perform? How does it interface with other players in the life cycle (suppliers, distributors etc.)? Who are the employees of the company? Why do they work for the company? What resources (land, buildings, machinery, knowhow, finance, relationships, political influence etc.) have the company at its disposal? What are their competencies?
2. ORGANISATION: How is the company organized (headquarters, subsidiaries etc.)? What are its strategic goals for the near and long-term future? What is the history of the company? How long has it been in this market/country? What is the size of company (branches / countries / employees / turnover)? How is the company embedded into the broader socio-cultural, political an economic context?
Acquiring funding Funding needs Sources of funding Finding technical expertise Finding technical expertise Selecting a project Organizing the project Implementation of the project
CSR wing of a company Communications department or sustainability department manager HR department manager Marketing and business development Company leader Development organizations Communities Attracting company partners: Own events Business plan competition or prize Virtual Networks Other relevant events Experts Funding Multi-actor
Inclusive business model - 19639 Importance
Inclusive business model - 19639 Importance
Use Inclusive Business Models for achieving Sustainable Development Goals!
Inclusive business model - 19639 Importance
Inclusive business model - 19639 Importance
Inclusive business model - 19639 Importance

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Inclusive business model - 19639 Importance

  • 2. For the Bottom of The Pyramid! 19639
  • 4. Inclusive business models include the poor into a companys supply chains as employees, producers and business owners or develop affordable goods and services needed by the poor.
  • 5. Inclusive Business Model? Types of Inclusive Business Models The Role of Inclusive Business for Development Work Levels of Inclusive Market Development Environmental Sustainability Tools to support companies for inclusive business models Developing inclusive business models Implementing inclusive business models Developing a project
  • 7. Benefits Builds new markets Strengthens supply chains Generates income for BoP Improves reputation Drives innovations Retains employees Satisfies basic needs Increases productivity Empowers the Rural!
  • 8. Types of Inclusive Business Models Poor as Company Benefits Benefits of the poor Example SUPPLIER Strengthening supply chains Reducing cost Improving the product Increasing incomes Building skills Empowering communities Bionexx, Malaria medicine production in Madagascar CONSUMER Building new markets Increasing revenues Improved productivity and quality of life Cost savings Choice and voice M-Pesa, Mobile Banking by Safaricom in Kenya ENTREPRENEUR Scaling up and g fast growth Deepening market penetration and increasing sales Income opportunities Skills Empowerment Honeycare: Brokering Sustainable honey production by smallholder farmers, Kenya
  • 9. Economic Development as well as Human Development. Inclusive markets are markets that include the poor and other marginalised groups(e.g. women, youth and indigenous people) on the demand side as clients and customers and on the supply side as employees, producers and business owners at various points along value chains. Market System Development Drives: Innovation Incentives Information
  • 12. Leverage Innovation What are More Efficient ways of production and consumption? Meet Needs Where do opportunities exist to improve well being? Use Resources What resources exist to respond to needs and improve well being? Eliminate Inefficiencies Where are resources wasted in the life cycle?
  • 13. 5 market Constraints Market information Regulatory environment Physical infrastructure Knowledge and skills Access to financial services 5 General Strategies Adapt products and processes Invest in removing constraints Leverage the strengths of the poor Combine re-sources and capabilities Engage in policy dialogue with governments
  • 15. 1. BUSINESS MODEL What is the value proposition of the company? What goods or services does it provide? Who are the customers? What activities does the company perform? How does it interface with other players in the life cycle (suppliers, distributors etc.)? Who are the employees of the company? Why do they work for the company? What resources (land, buildings, machinery, knowhow, finance, relationships, political influence etc.) have the company at its disposal? What are their competencies?
  • 16. 2. ORGANISATION: How is the company organized (headquarters, subsidiaries etc.)? What are its strategic goals for the near and long-term future? What is the history of the company? How long has it been in this market/country? What is the size of company (branches / countries / employees / turnover)? How is the company embedded into the broader socio-cultural, political an economic context?
  • 17. Acquiring funding Funding needs Sources of funding Finding technical expertise Finding technical expertise Selecting a project Organizing the project Implementation of the project
  • 18. CSR wing of a company Communications department or sustainability department manager HR department manager Marketing and business development Company leader Development organizations Communities Attracting company partners: Own events Business plan competition or prize Virtual Networks Other relevant events Experts Funding Multi-actor

Editor's Notes

  • #17: Answering these questions helps to see the various points where business interests of the company may intersect with development interests. Gaining low-income consumers as customers is just one option. Improving employee morale and reducing turnover may also be of strategic relevance, and so may be strengthening the supply chain or improving public reputation and relationships with public authorities.