going to scale in developing economies · success factors in getting development ventures to scale?...

Development through Dialogue, Design & DisseminationVentureWell 2015

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Can the “ten types of innovation” help us understand success factors in getting development ventures to scale?

Going to Scale in Developing Economies

Kate Bergeron, Elizabeth Hoffecker Moreno, Harald Quintus-Bosz, Eric Reynolds

profit model network structure process product

performanceproduct system service channel brand customer

engagement

O F F E R I N G E X P E R I E N C EC O N F I G U R A T I O N


by Keeley, et al. - Doblin Group

“The Ten Types of Innovation”

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profit model network structure process product

performanceproduct system service channel brand customer

engagement


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Ten Types of Innovation, Keeley, L., Pikkel, R., and Walters, H.. 2013 Deloitte Development LLC.


research question

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Can the Ten Types of Innovation framework yield insight into what contributes to the ability of development ventures to succeed and achieve their desired degree of scale?

‣Are there consistent patterns in terms of a specific set or combination of types of innovation that distinguish development ventures that are achieving scale from those that are not?

‣Do these patterns differ from those that have been documented in the developed-economy context in which the framework was first deployed?

hypothesisDevelopment ventures that are scaling successfully will define a consistent and observable pattern in terms of the number and combination of types of innovation where they show excellence and competence.


• 5-7 initial cases (in process) • data from published reports and in-

depth interviews with key informants • developing method of applying “ten

types of innovation” framework to case data

case studies of development ventures in the solar lighting sector

approach

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• high-quality, durable, multi-function products (solar lantern + usb charger), sold for $20-40.

• operating in more than ten countries • extensive, robust distribution network and on-

the ground relationships • combining innovative payment options (mobile,

pay-per-use) with product design

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greenlightplanet.comchannel

product performance

“Thousands of agents sell Sun King™ in rural homes every day!”

product information product attributes

featuresmake/model overall

scorecost (usd)

type(handheld/desktop)

runtime on high setting charge time brightness task

lightingambient lighting

luminous range

water resistance

hours score hours score score

SunKing Pro 88 $39.95 H/D 13.1 8.7

WakaWaka Power 85 $79.99 H/D 21.2 17.7

d.light S300 77 $49.95 H 6.1 13.3

SunKing Solo 67 $29.95 H/D 22.1 13.4

WakaWaka Light 59 $39.99 H/D 18.1 19.6

Firefly Mobile Lamp 58 $36.99 D 7.5 6.7

SunKing Eco 50 $19.95 H/D 19.1 8.2

ASE Solar 50 $60.00 H 12.5 19.0

d.light S2 43 $14.17 D 12.0 13.7

d.light S20 42 $17.55 H/D 11.8 9.8

UniteToLight 29 $20.00 D 10.4 17.9

1. The “Overall Score” shown in this ratings is applicable for Uganda, Africa. For use in other countries, it is suggested that individual attribute scores be a guide to decision making.

2. This evaluation may not include all the portable solar lighting devices available in Uganda. Rather, the ratings show a representative sample of products available on the market during the summer of 2013, along with several other models designed for use in the developing world that may be applicable in Uganda.

OUTSTAND-ING

BATTERY CHARGE INDICA-TOR

VERY GOOD END OF CHARGE INDICA-TOR

AVERAGE DEVICE CHARGES FROM AC

MARGINAL MOBILE PHONE CHARGER

POOR

legend

notes

Figure 2-1: Solar Lantern Comparative Rating Chart CITE SOLAR LANTERN EVALUATION: SUITABILITY

run time on high setting Length of time which a fully charged device can emit usable light when switched on to its highest setting.

charge time Time to fully charge a completely discharged device using ambient sunlight.

brightness Light intensity from a standard distance, in lux.

task lighting Ability of the device to illuminate a tabletop workspace at or above a reference lighting standard.

ambient lighting A light’s capacity to illuminate a room.

luminous range The ratio of a device’s brightness on its lowest setting to its brightness on its highest setting.

water resistance The ability of a device to resist damage from water.

battery charge indicator Device notifies user that the battery is receiving a charge.

end of charge indicator Device notifies user that the battery has completed charging.

device charges from ac Device not only charges from the sun but also from AC power.

mobile phone charger Device includes the ability to charge mobile phones.

attribute definitions

features

greenlightplanet.com

MIT CITE Solar Lantern Evaluation Report cite.mit.edu

greenlight planetSun King™ product line

http://greenlightplanet.com






http://cite.mit.edu


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High Focus

Some Focus

No/Little Focus

product performance brand product system

channel profit model customer engagement

service structure

network process

other relevant success factors: • sufficient competence across a range of core business

functions • commitment to organizational learning and

improvement (risk analysis, focused experimentation, feedback loops)

• company values and culture: humility, cooperation, openness to critique

• consumer insights through on-the-ground presence

greenlight planetSun King™ product line


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credit: Harald Quintus-Bosz

• high-end engineering and design combined with aspirational brand focused on global connectedness

• the same product sold in rural Ethiopia for $12, the MoMA museum shop for $30

• operating in 9 countries • scale goal: “as many lamps as possible in the hands

of people without electricity.”

brand

littlesun.com

“You have to trust that what you are playing a lot of money for will deliver, and that’s where brand recognition is quite important. There’s a general fatigue with people all over the place of crappy, second-rate products…

The (Little Sun) airflow system and compartment are not just designed to look cute, but also an internal technical design that is relevant, so we look cute and funny, but it’s a robust product made with really high-quality components.” -Felix, CEO, Little Sun

little sunsolar lamp

http://littlesun.org








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other important factors: • shared purpose: strong alignment of staff and partners to

mission • use existing distribution channels • flexible structure: adopt to what works well locally • unique expertise in both technology and design

components

High Focus

Some Focus

No/Little Focus

product performance channel product system

brand service structure

network customer engagement process

profit model

little sunsolar lamp


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K. Kornbluth et al. / Renewable and Sustainable Energy Reviews 16 (2012) 6737–6745

• started as a UC Davis project and received a World Bank grant in 2008 for development of the product.

• manufactured in 2010 and was considered a high quality product at its release.

• incorporate and initially launched in Zambia and sold via both B2B and B2C networks.

• goal was to sell in Bangladesh, but stopped by import and tax hurdles.

• partnered with “Disacare” for sales in Zambia.

profit model

lighting the waysmart light


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High Focus

Some Focus

No/Little Focus

product performance service product system

profit model brand channel

network customer engagement

profit model

structure

lighting the waysmart lightother important factors : • initial production batch of 1,500 units. • sold about 500-1,000 of the total units produced. • sold for $12 to consumer. • product is a very cost efficient distributor of light. • focus on high quality product and engineering. • customers were very interested in having a warranty

as a perceived notion of support or quality


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data summary

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• quality and reliability of the product is very important to customers spending their hard earned money on a lighting solution.

• significant focus on distribution channel, service, brand and customer engagement - in addition to product performance.

• local partners can be critical for distribution, sales, and service. • consideration of useful life of the product and overall supply chain

design can make or break a venture. • entry product cost of approximately $10 (from the manufacturer)

appears to be a viable economic model for future products, in some markets.

preliminary observationssummary


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• continued interviews with other solar ventures, then branching out

• further analysis in distribution channels, product usage, etc. (from MIT CITE study, etc.)

• additional study into the multiple markets within the “bottom of the pyramid”

• more in depth study on company/organization models with an eye toward innovation in “experience”

next steps


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comments & questions

going to scale in developing economies · success factors in getting development ventures to scale?...

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