Disruptive Innovation for Social Change

Submitted by :-

Group 8 Ankush Singla - 12P129 Gaurav Gaba - 12P136 Ladlee Rathore - 12P144 Ravi Kant Singla - 12P162 Varun Gupta - 12P175 Amrita Sandhu FPM74

By Christensen, Baumann, Ruggles, Sadtler

InnovationInnovation is the development of new values through solutions that meet new requirements, inarticulate needs, or old customer and market needs in value adding new ways.Two Categories :- 1) Sustaining 2) Disruptive

Sustaining Vs. Disruptive

Sustaining

• They provide better quality or

additional functionality for an

organization’s most demanding

customers• E.g :- most product and service

innovations

Disruptive

• An innovation that creates a new

market by applying a different sets

of values which eventually goes

onto disrupt an existing market • Eg :- low cost air tickets; personal

computers vs. the existing

mainframes

Catalytic Innovation

• Subset of disruptive innovations

• Form of innovation that challenges organizational incumbents by offering simpler,

good-enough solutions aimed at underserved groups

• Unlike disruptive innovations, though, catalytic innovations are focused on creating

social change

• People often equate an organization’s tax structure with its ability to generate

positive social change but organization can create catalytic innovations regardless

of their ownership structure

Qualities of Catalytic Innovators

1 •Create systemic social change through scaling and replication

2 •Meet the need which is over-served or not served at all

3 •Products and services are simpler and less costly than existing alternatives

4 •Generate resources which in ways are initially unattractive to incumbent competitors

5 •Ignored, disparaged or even encouraged by the existing players for whom the model is unprofitable or unattractive

While incumbent organizations may do a good job serving a particular group, they are unlikely ever to reach the far broader populations that would be satisfied by simpler offerings

Investing In Health CareSUSTAINING INNOVATIONS - treat their challenging patients with most advanced technologies and therapies

CATALYTIC INNOVATIONS-Yield simpler products and services that are affordable to a broader population e.g.-affordable insurance and primary health care

Minute Clinics :- Offer “lesser” health services than a doctor’s office Good enough service attractive to a large underserved population 99% patients found to be satisfied in a survey by the serviceOther Examples :-RedClinics, Take Care Health Systems and Wal-mart’s in-store clinics

Freelancers Union:- Provide low-cost health insurance and other services to independently employed contractors, consultants, part-timers

Investing In EducationSUSTAINING INNOVATIONS - advanced state of the art courses at universities

CATALYTIC INNOVATIONS - broader range of good affordable courses available to people who otherwise have little or no acess to education e.g.-online learning and community college

Fortune profit Apex learning ,non-profits Virtual High School and Florida Virtual offered specialize courses to thousands of students through online learning curricula In absence of alternatives online courses remain is adequate option for underserved

Community Colleges: - Offer a lower-cost alternative to four year universities Measure quality by factors such as job placement rates,

convenience of access to classes

Investing In Economic Development

SUSTAINING INNOVATIONS – funding large scale programs by IMF and WORLD BANK in developing countries

CATALYTIC INNOVATIONS- Microfinance organizations making small loans available to latent entrepreneurs who otherwise have little or no access to capital

Grameen Bank - 5.6 million borrowers at the end of 2005 Lent more than $5.2 billion with a recovery rate of >98% 80 million people receiving credit through this approach

Kenyan Healthcare System- Residents turned clinic owners Offers essential drugs, health products and basic health care at affordable price Less cost per person visits(50 cents)

Many mainstream organizations could use additional resources to revitalize their current offerings. But when the objective is to get a system unstuck, it is time to go in search of catalytic innovation

Dynamics to watch for catalytic innovation

1• A relatively new entrant is providing a lower-

cost, less functional alternative to a customer segment that is over served or not served by the dominant provider

2 • The dominant player is moving away from the new entrant’s offerings and toward a more profitable segment of the market

3• The new entrant is continuing to improve its

offering, expanding its market reach as the dominant player retreats, while others copying its model are beginning to emerge

Example in Various Sectors(Indian Context)

Health Care

Sustaining• Apollo Hospitals• Fortis Hospitals• Max Hospital

Catalytic• Arvind Eye Care• Narayana Hrudayalaya• Lepra Society

Education

Sustaining• Doon School• Delhi Public School• Other Private Schools

Catalytic• Teach For India• Super 30 • Pratham

Super 30

Economic Development

Sustaining• Raymonds• ICICI Bank• First Flight Couriers

Catalytic• Shri Mahila Griha Udyog Lijjat

Papad• Jaipur Rugs Foundation• Mirakle Couriers

Jaipur Rugs Foundation