Supply Chain Innovations

Targeting Unaddressed

Needs

Introduction

The unaddressed INDIA:

Though India’s poverty has declined from 45 % in 1994 to 22 % in 2012, 56 % of the population still lacks the means to meet their essential needs.

By this measure, some 680 million Indians experience deprivation - more than 2.5 times the population of 270 million below the official poverty line. *(Source- MGI, business and economics research arm report)

Base of Pyramid(BoP)

$1.00 $1.25 $1.45 $2.00 $2.50 $10.00 0

1

2

3

4

5

6

7

0.8800000000000041.41.72000000000001

2.63.14

5.15

5.585.06 4.74

3.863.32

1.31

Population in the World at different Poverty Levels

Below the Poverty Line

Above the Poverty Line

Wor

ld P

opu

lati

on in

Bill

ion

s

Poverty Levels

Source: World Bank Development Indicators 2008

.

.

.

Traditional TOP – DOWN Innovation trend

Need of new DOWN -TOPInnovation trend

BoP mass consumer needs are triggering FRUGAL / CONSTRAINT base innovation from emerging market.

Redefining Requirements of Unaddressed

Food

Energy

Drinking

Sanitation

Healthcare

Education

Social

Security

Public

National

International

Private/

NGOs/CSR

Institution

InnovationOpportunities

Main Challenges

Inadequate infrastructure

What is often missing at the BoP is hard infrastructure: roads, electricity, running water, banking, modern transportation, logistics and communication technology.

Similarly, health, nutrition and sanitation CAN also be INCLUDED in this category.

Fragmentation distribution

Sophisticated distribution system to reach customers even in remote areas are still lacking at BoP.

Modernization of logistics system that enables customers to easily access as well as distribute products & services would required great deal of attention.

Main Challenges

Low and irregular income:

Consumers in BoP markets not only live off meagre incomes, they also rely on everyday wages with irregular cash flow and low access to credit.

This extremely price-sensitive population is thus prone to external shocks which in turn increase their income volatility.

Limited education

A large part of the BoP tends to be uneducated and unskilled, leading to particularly high information asymmetry.

As a result, these segments are not only excluded from the informed world but are also shut out of potential employment opportunities.

AN APPROACH

Inclusive Innovation: The Indian Model

Innovation paradigm to focus on inclusive innovation for/of & by the people at the BoP

Focus on ‘Frugal Innovation’ that produces products and services which are affordable by more people in the low levels group without compromising quality

Need innovation processes that are ‘Frugal’ in terms of the resources required & have a ‘Frugal’ impact on the earth’s resources

Transform from a knowledge – producing economy to a knowledge – sharing society that will have relevance to many parts of the world

Education– Present Scenario

“Education is the true alchemy that can bring India its next golden age.”

In India today, 4% of our children never start school. 58% don’t complete primary schools. 90% don’t complete school. Only 10% of our children go on to college, (Source :Teach for India 2012)

Lack of proper school facilities as well as the sheer inefficiency/shortage of teaching staff across the government run education sector. There is a shortage of classrooms to accommodate all the students.

No proper sanitation in most schools. The study of 188 government-run primary schools in central and northern India revealed that 59% of the schools had no drinking water facility and 89% no toilet.

Education

Correcting a Historical Injustice –

“ Right of Children to free and compulsory education (RTE) to be included as a Fundamental Right of our – Indian Constitution”

Electoral promises of allocation of six per cent of GDP to education have remained as pious wishes.

Once an unambiguous declaration of such a (justiciable) right is made, those responsible for it would have to find ways and means to give effect to it.

“The experience of war suggests that when a paramount necessity can be established, the money required to meet it can and will be found”.

Source: Article by Nalini Juneja , Professor at the NUEPA

Ele

mentary Educ

ation

STATE/NGOsBooks & StationaryFoodClothesInfrastructureStaffTransportation

High Scho

ol /

Training Centre

STATE/PUBLIC/PRIVATE/UNDPBooks ClothesSport FacilitiesComputer LabsProfessional StaffSkill development centreSponsorship for studentsAdvance coaching system Enrollment of girls/elders

Job opportu

nities

SewingComputerAgricultureTransportationManufacturingSelf employment schemesLocal employmentOther services

Education System

PDS – Public Distribution System

FOOD

Public Distribution System:

Public Distribution System (PDS) was institutionalized in the country in the 60s to achieve multiple objectives including ensuring stability of prices, rationing of essential commodities in case of deficit in supplies, ensuring availability of basic commodities to the poor and needy and to check the practice of hoarding and black marketing.

Targeted PDS has failed to address the BoP.

FOOD – FRUGAL APPROACH

BOP citizens can be issued a SMART- CARD on basis of his authorised monthly requirement and the subsidy can be paid to the company directly by the Govt and responsibilities of distribution to Kendriya Bhandar or like Big Bazars etc

Geographical centralised system of production /consumption for BOPs

Food Supply Chain

Local Producer / farmer

Govt. Approved Retailer – Kendriya Bhandar

Local Consumer

Shorter the Supply chain cheaper the Product

Face to Face relationship

Renewable Energy

Hydro Energy

Bio Energy

Solar Energy Wind Energy

Power – The Frugal Idea

Keeping in mind the concept & vision of self-sustainable model of Indian villages, small scale RES project can very effectively contribute to attain this milestone.

Each and every region are enrich with its own geographical uniqueness/advantages which provides the regions with opportunities to use any of the RES like hydropower, wind-power, solar-power etc.

Small scale (micro) – RES project can be the most frugal innovation to cater the power requirement of our major untouched villages.

These projects by nature are very simple in engineering, construction and operation & maintenance which shall be run by local people themselves.

Micro Hydro Electric ProjectSadbhawana Projects in J&K Micro - Hydro Electric Project (MHP) established by the Army in remote villages , providing one/two points to each house , three/four points to schools/community hall and a chaki to grind wheat . After completion, hand over to village committee for management. Two individual trained as electricians and their wages paid by village committee management with nominal collection from each house

SECMOL is an organisation founded in 1988 aimed at reforming the educational system of Ladakh, by a group of young Ladakhis.

SECMOL Campus is located near the village of PHEY in the Indus valley 18 km from Leh. It was developed between 1994 and 1999 and was inaugurated in 1998 by His Holiness the Dalai Lama.

Built using simple, low-cost traditional techniques, the campus now comprises three residential houses, 20 small "cell rooms" and a large school building, all solar – powered and heated.

The campus is home to about 40 students and a few staff and volunteers, who live, work and study there. The campus is maintained, and to a large degree run, by the students themselves on a democratic basis.

SECMOL - The Students' Educational and Cultural Movement of Ladakh

SECMOL: Frugal Innovation

SECMOL - The Students' Educational and Cultural Movement of Ladakh

The main building at the campus – Completely Solar Power and Heated

The solar heated bathing block is covered with a plastic greenhouse in winter.

The vegetable garden produces vegetables even in winter.

SECMOL - The Students' Educational and Cultural Movement of Ladakh

The main building at the campus – Completely Solar Power and Heated

The solar heated bathing block is covered with a plastic greenhouse in winter.

The vegetable garden produces vegetables even in winter.

A Living Inspiration of Frugal Innovation

Sanjit “Bunker” Roy is the founder of Barefoot College, which helps rural communities becomes self-sufficient.

Web Source: https://www.ted.com/talks/bunker_roy

32, 85, 730 Total views

A WORKING MODEL

Collaborations, R&D, Networking, Sharing

Expand Role - Industry Associations

Self – Sustaining Responsibilities

Innovation Clusters: The vision

Vision

Coordination

committee (CSR/

NGOs/State

issues related

committee

Sectoral

experts

Government

Agencies

Finance

A Working Model

Project Implementation(STATE/CENTRAL

FUNDING allocated for

regional development)

Village Level

Committee

Centre/state/CII

CII to co-ordinate training to village representatives on each Frugal Innovation for implementationof same in their respective areas.

• Implementation of these•Projects under supervision

• of Village Head.

1. CII to play active role .

2. Co-ordination with Centre/State /industry for funds

3. Gram Panchayat shall form village level committees.

A Working Model

Project Operation & Maintenance

& Training

Monitoring &

Facilitating Body

1. Link between various stakeholders like CII, Centre & State Govts. and Village member a Monitoring & Facilitating Body

2. The operation & maintenance responsibilities of these project shall be given entirely to Village committee

3. Training representative shall along with village committee shall be responsible for future sustainability.

Conclusion

Frugal Innovations

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Ideas exists, requirement to swift and implement considering the Geographical properties and limitations.

Individual approach should convert to Collective approach

Democratization – by the people,

for the people, and with the people.

Conclusion

Frugal Innovations

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Can take various forms for the benefits of the poor; these may be driven by theNation, State, by MNCs, Social businesses/CSR, NGOs or grassroots entrepreneurs.

By integrating the previously excluded into formal markets: frugal innovationprovides solutions for the most urgents