1. Disruptive Innovation for SocialChangeBy Christensen, Baumann, Ruggles, and Sadtler Presented by Group 8 with Indian IllustrationsHarshvardhanNikhil LilaniPGPM 2012-14Varun ChopraCSR Prateek DuttaDate: 14- Mar- 2013 Mayur KumarMDI, GurgaonSantosh Garbham

2. Is Money Everything? Indian firms collectively spend Rs. 8700 Crore onCSR initiatives every year Its projected to shoot up to Rs. 27000 Cr But are they effective? No. Reason: Targeted towards a narrow segment in societyand Not targeted towards the right segments ofsociety 3. Suggestion by Authors: Expanding support for organizations that areapproaching social-sector problems: 1. In a fundamentally new way 2. Scalable 3. Sustainable 4. System changing catalytic innovation 4. Catalytic Innovation A subset of Disruptive Innovation Unlike Disruptive Innovations, focus is on Social change SustainableDisruptive CatalyticAdditional FeaturesSimpler, moreconvenient solutionA subset of DisruptiveInnovation Better qualityLess expensiveBreakthrough ProductsSocial Change isDirected towards newPrimary Objective Directed towardsor less demandingexisting customerscustomers 5. Catalytic Thinking Problem for Incumbents : Status Quo 1. They create systemic social change through scaling and replication 2. They meet a need that is either overserved (because the existingsolution is more complex than many people) or may not be served atall 3. They offer products and services that are simpler and less costly thanexisting alternatives and may be perceived as having a lower level ofperformance, but users consider them to be good enough 4. They generate resources, such as donations, grants, volunteermanpower or intellectual capital, in ways that are initially unattractiveto incumbent competitors 5. They are often ignored, disparaged or even encouraged by existingplayers for whom the business model is unprofitable or otherwiseunattractive and who therefore avoid or retreat from the market 6. Catalytic Innovation StrategyThe motive of this strategy is to prove as follows:Organizations spending is not good enoughfor an effective CSR, investing in catalytic innovations would make their initiative moremeaningful 7. Some Catalytic Innovations inIndia 8. Aakash the Worlds cheapest tabletDataWind, in association with IIT Rajasthan, haslaunched worlds cheapest 7 inch tabletThe tablet was officially launched asthe Aakash in New Delhi on 5 October 2011.The device was developed as part of thecountrys aim to link 25,000 colleges and 400universities in an e-learning programOriginally named SAKSHAT, the device aimsto bring Indias masses onto the informationhighway.Mainly known as Students Tablet with Extra Loaded Features aam admi ka ipad The Worlds Cheapest Tablet Aakash 9. Aakash the Worlds cheapest tabletSocial Changes through scaling and replication Computer is considered as one of the most efficient and usefuldevice when it comes to facilitating education to students from allsocial and economical strata of Indian subcontinent so is Internet With the use of internet and computer knowledge can be digitalizeand student can have access to unlimited notes and study materialat very less cost This can also help in learning new things, improving creativity andknowing about career options This will also help in reducing gap between poor and rich childrenand rural and urban students 10. Aakash the Worlds cheapest tabletUnserved needs of Society that were met Even the poor students dream of getting better learningopportunities through access to Internet Aakash brings those dreams to reality. After subsidy by GOI, thetablet costs Rs. 1130. That would allow even the offspring of maid servants and 4th gradestaffs can imagine buying a knowledge device like Aakash tablet forthemselves and that too by saving their pocket money These kind of needs CANNOT be met by incumbent players in themarket because they have see no incentive to pursue and they feelit would not be viable to serve these poor segments 11. Aakash the Worlds cheapest tabletSimpler and less costly than existing alternatives Though Aakash technical specifications are not on par with Apples ipad, many were willing to use it. Because for them it serves the purpose. Datawind became third largest tablet seller in India at one point in time Generation of funds Aakash project has support from GoI The prototype development was done by IIT, Rajasthan After the device was unveiled, OLPC chairman Nicholas Negroponte offered full access to OLPCtechnology at no cost to the Indian team 12. Aakash the Worlds cheapest tabletIgnorance by existing players A BBC report stated To develop its latest gadget, the ministry saidit had turned to the elite Indian Institute of Technology, and theIndian Institute of Science, after a lacklustre response from theprivate sector. 13. Aravind Eye HospitalUnserved segments served who are ignored by existing players The problem of avoidable blindness rapidly escalatingremained a major cause of concern in the Indian healthcarescenario In a developing country the government alone cannot meetthe health needs of all owing to a number of challenges-growing population inadequate infrastructure low per capita incomeThe hospital performs high-volume and high-quality eye surgeries inexpensively to address the needs ofthe 12 million blind people in India. 14. Aravind Eye HospitalSocial Changes Created: It is a social organisation committed to the goal of elimination of needlessblindness through comprehensive eye care services It is also an international training centre for ophthalmic professionals andtrainees who come from within India and around the world It is an institute for research that contributes to the development of eyecare and to train health-related and managerial personnel in thedevelopment and implementation of efficient and sustainable eye careprogrammes Aravind also is a manufacturer of world class ophthalmic products availableat affordable costs through the Aurolab 15. Aravind Eye HospitalSimple Infrastructure and Low cost Solution No extravagant expenditure with aesthetic ambience Aravind keeps its surgical equipment in operation 24 hours a day,which reduces the cost-per-surgery Doctors time is utilized with highest effectiveness. So, doctors focusonly on performing surgery, and nurses handle pre-op and post-opcare, which increases doctor productivityThese actions allow the company to give away freesurgeries to the poor while still earning a profit 16. SELCOIntroduction SELCO India was founded in 1995 by Dr.Harish Hande with INR 15,000 funding from its co-founder Mr. Neville Williams.Social Changes Created Solar Electric Light Company, India or SELCO India has played an instrumental role in improving living standards of poor households in rural India especially in the state of Karnataka through solar energy based interventions and low smoke cook stovesUnserved Segments that were served When Hande established SELCO-India in Bangalore, he was looking to dispel three myths: Poor people cannot afford sustainable technologies Poor people cannot maintain sustainable technologies Social ventures cannot be run as commercial entities 17. SELCOGenerated resources from other sources- Financial backing was received in December 1996 from Winrock International which released a conditional loan of $150,000 under the USAID Renewable Energy Commercialization project. This was however on a condition that SELCO INDIA created couple of solar service centers and install a minimum number of systems.Simpler low cost solution: SELCO started with a financial model in which each customer would pay 25% of the cost upfront as down payment and will further pay a monthly installment which is affordable and within the average monthly budget of a family in the region. Along with this, the SELCO INDIA also provided a years guarantee to the warranty of the manufacturer along with free service for a year and a 90-day money back guarantee. The loan to Winrock was paid back by 2000. SELCO INDIA got good backing with E+Co initially investing US $107,500 to become SELCO Indias first investor. 18. SELCOAchievements: SELCO has so far installed solar systems in more than 125,000homes. This is in spite of two-thirds of its customers surviving onless than $34 per day. Some of Selcos customers include poor daily-wage labor andinstitutions like schools and seminaries. Everyone is charged thesame rate for the solar panel; about $450 for a 40-watt systemthat can light many 7-watt bulbs for 4 hours between charges. Fewer than 10 percent of the companys customers default intheir payment and about $20 million has been made available bylenders to finance this venture. 19. SELCOSome Ripple Effects of Social Changes brought by thisinnovation SELCO has also created other small entrepreneurs who use the solar panels to charge numerous small batteries which they then lend to street vendors for a nominal daily price. This has boosted their monthly incomes from Rs. 4500 to Rs. 13000 Other people who have benefited from SELCOs venture are the rose pickers in a village in Bangalore who earlier used to hold a lamp in one of their hands and pick roses from the other as part of their daily pre-dawn routine. SELCO has helped them in acquiring solar powered headlamps which the workers can now wear. With both hands now being free, the productivity of the workers has doubled resulting in a direct improvement in their income. 20. Latest Disruptive innovations inServices 21. Examples -LifeSpring Hospitals Pvt. Ltd 52% of baby delivery market or 1300 deliveries in karnataka -Mirakle Couriers -employs 63 deaf people and 2 managers Village Laundry Service Pvt. Ltd 22. Learning:Catalytic Innovations make CSR initiatives to: Effectively address the social cause by serving a hugesegment that generally stays out of focus from regular CSR Have ripple effect in the economy by the fundamental socialchanges it brings aboutIts high time for organizations and social investorsto invest in Catalytic Innovations by identifyingthem 23. Identifying Catalytic Innovations After choosing a particular social challenge, look forpreexisting catalytic innovators It is difficult to find them in mainstream business, sofollowing steps that reflect catalytic innovation wouldhelp: A new entrant providing low cost solution to analternative segment that is either over server orunderserved by market Dominant player moving away from new entrantsofferings towards a more profitable segment New entrant and his imitators emerge rapidly Not all sectors grow rapidly. Sectors regulated heavilyby Government or influenced by politics may havereduced effect of innovation 24. Identifying Catalytic Innovations Evaluate the innovation: Whether it is aligned with those 5 steps Implementation of the innovation: Is it scalable and sustainable Can it be shifted to another location Tax benefit is not an indicator i.e. for profit vs non-profitRecommendation of the Article Seek out and Support Catalytic innovation because they not only have Immediate Social Impact but also inspire social entrepreneurs to think catalytically Catalytic thinking addresses of social problems in a more fundamental manner by creating a social change 25. Few words from a Catalytic innovator 26. ConclusionThe huge funding available for Social causes in this country if directed towards CatalyticInnovations, India would see a better tomorrowvery soon 27. Thank You