Presented byGroup 10Section BInnovating for shared value-Article in HBR (Sep- 2013) by Mark Pfitzer, Valerie Bockstette & Mike Stamp ( FSG)

Framework for creating sustainable social enterpriseEmbedding a social purposeRigorously defining the social needMeasuring the social and business valueCreating the optimal innovation structureCo-creating with external stakeholders

Embedding a social purposeCreating shared value entails embedding a social mission in the corporate culture and channelling resources to the development of innovations that can help solve social problems.In some cases, this is a matter of reemphasizing a firms founding social missionTurning the pursuit of shared value opportunities into a regular activity requires defining a clear social purpose, publicizing it internally and externally, andembedding it in core processes such as strategic planning and budgetingThis establishes a culture that unleashes the best in employees and helps mobilize external partners that have similar goalsDanone Nutrition FoodDow Canola & Sun flower seedsBeckton Dickinson - Needleless Injection Systems

Defining the Social needTo recognise the importance of gaining insight into the needs to be addressed, understand the underlying social conditions and how best to change them. To conduct extensive research for developing a comprehensive view of the problemthe people affected and their numbersthe barriers to progressthe options for driving change andthe parties that can helpSuch knowledge provides the basis foranticipating resource requirements,developing the business case, andidentifying the necessary execution capabilities inside and outside the companyNestle Focus on Malnutrition in IndiaMars Cocoa Production in West Africa

Measuring the social and business valueEstimate the business and social valueanticipating how a degree of change in a social condition will drive profits, through either incremental sales or reduced costs, and linking those benefits to the resources needed to achieve themIt is an iterative process that considers how much social change is needed to unlock business value, strategies for achieving that change, and the possibility of getting others to invest in the initiativeEstablish intermediate measures and track progressAssess the shared value producedCoca Cola,Brazil - Coletivo initiative

Creating the optimal innovation structureIntegrate with a legacy businessKemira Chemicals- New Water treatment solutionsCreate a semiautonomous unitNovartis - Arogya ParivarObtain philanthropic or government supportVodafone M-pesa mobile banking servicesFinance external entrepreneursBoehringer Ingelheim Making More Health ProgramGE & Embrace Low Cost Incubator ( from $2000 to $200)

Co-Creating with External StakeholdersInvolving stakeholders in identifying all the dimensions of a problem and designing and implementing solutionsEnlist a wide range of stakeholdersClinton Health Access Initiative,MoH Kenya & HP Data Sharing to speedup diagnosis and treatment for HIV patinetsMars & World Agroforestry Center Improved Cocoa Farming in Ivory CoastLeverage others capabilitiesTapping partners for their delivery capabilitiesNestle & Drishtee Foundation Distribution SystemNovartis Arogya parivar Microfinancing for doctors and pharmacists

Dow ChemicalsRemoved 600 million tons of trans fats and saturated fats from the U.S. diet and created a major business with its Nexera sunflower and canola seedsHelped millions of malnourished families in India and other countries by providing inexpensive micronutrient-reinforced spices, which are a fast-growing, profitable businessNestle

NovartisProvided essential medicines and health services to 42 million people in 33,000 rural villages in India through a social business model that became profitable after 31 monthsMars Catalyzed a cross sector coalition to transform farms and surrounding communities in Ivory Coast with the aim of avoiding looming cocoa shortages

IntelTrained more than 10 million teachers in the use of technology to improve educational outcomes, turning education into a profitable business for the company

Becton DickinsonProtected millions of health workers by creating needleless injection systems,which are now a $2 billion business for BD, accounting for 25% of the companys revenue

VodafoneExtended mobile banking services to 14 million people in East Africa through M-Pesa, one of the companys most important offerings

How does this relates to AECS?Embedding a social purpose Rigorously defining the social needMeasuring the social and business valueCreating the optimal innovation structureCo-creating with external stakeholdersEliminating Needless blindnessPrevalence and Magnitude and Market ConditionsPeriodical review, Quality control, Annual reviewSystems and processes, Outreach, Vision Centre, IT InterventionWorking with community, INGOs, Corporates

SummaryThe problemSocial problems present daunting constraints to their operations and vast opportunities for growthMany are struggling to design and implement initiatives that deliver both social and business benefitsReasonsOften companies have not been guided by a social missionDont know how to research social problems at the level needed to drive changeleaders lack experience in measuring and linking social and business resultsand building networks of external stakeholders that include unfamiliar organizations can be challenging

Summary.SolutionFramework to create profitable social enterprisesembedding a social purpose,rigorously defining the social need,measuring the social and business value, creating the optimal innovation structure, and co-creating with external stakeholders

Discussion

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Arogya Parivar: In briefEstablished in 2007.Its 270 health educators cover 280 cells in 205 districts (28,000) villages in 11 states.About 4 million people receive health education every year.286 supervisors work with over 22,000 doctors and 18,000 pharmacies.Initially, 11 therapeutic applications were offered for rural conditions.Today, such chronic diseases as diabetes and epilepsy are treated.In total, 42 million people reached, their access to healthcare improved.