Presented by Juliana Koh, Director, Consumer Faces and Manisha Dikshit, Managing Director, Consumer Faces at Qualitative360 Asia 2013 19-21 November 2013, Singapore This event is proudly organised by Merlien Institute Check out our upcoming events by visiting http://qual360.com/

1. November 20-21, 2013 | Singapore
Twitter Hashtag #QUAL360

2. Platinum Sponsor
Media Sponsors
Association Partners

3. Tapping into the informal economy to create
new opportunities for innovation
A case study in recycling and push cart aunties
Authors:
Manisha Dikshit (Consumer Faces Pte Ltd)
Juliana Koh (Consumer Faces Pte Ltd)
Roslind Yip (Rchitecture)

4. CONTENT PIRACY

5. STREET VENDORS

6. DIY

7. QUALITATIVE
RECRUITERS

9. Characteristics of the Informal Economy
No formal wage structure
‘Illegal’
No government regulation
Tax evasion Low barrier of entry
Social network driven
Seek autonomy and flexibility
Survival driven

10. Why is studying the informal economy
important?

11. 1. Fastest growing part of the global economy
If the informal economy were a country, it would have the
world's second largest GDP

12. Solar bottle bulbs
2. Many different types of innovation in the
informal economy
Grassroots/Jugaad/Frugal/Inclusive innovation

13. A case study of how we looked at informal
economy to uncover opportunities for
innovation

14. CONTEXT:
Building management (client) wanted
The services at low cost to tenants to consider how they can provide value
client
added
Recycling
?
X X
Food
services
Child care
services
?
X
X
X X X
Landscaping
Counseling
?
Current
VAS
Building
cleaning
services
Infrastructure
management
Entertainm
ent
?

15. Why consider leveraging informal service
provider and recycling as VAS?
• Better waste management service for tenants
• Enhanced corporate image as eco-friendly building
• It costs building management close to $0 to do recycling

16. Current office recycling eco system
Informal recycling areas
(pantry, cargo lifts, where
aunty sits
Outside office door
Common garbage area
Building
management
Common formalized
recycling areas
Garung Guni
Trucks
Garung Guni
Trucks
Sembawang corporation
INFORMAL SYSTEM
Tenant’s
disposal
Informal recycling system
Push cart aunties, cleaners

17. The client
INTENT STATEMENT
Objective: How can we provide value added services to tenants by making
the current informal disposal/recycling system more effective?
Audience: Tenants
New Value: For tenants – Engagement in recycling and informal
economy; For building management - building brand image and value
added service at low cost, For cleaners - broad level improvement of work
environment and value of goods
Opportunity: Create new recycling solutions that integrate into the daily
life of office workers and create an appreciation of it
Risk: Inability to change mindsets/apathy towards recycling and interaction
with informal sector

18. Participants in
this study
Client
Building
management
Informal service
provider
User
Facilities
manager
Tenants
Push cart aunty
and uncle +
Cleaning staff
Middle men
(Garang guni
business)
Informants
(Security
guards)

19. AUNTY:
FREE LANCE
CLEANER
Personal profile:
Lives with children,
works to keep busy
and earn some
money, self
motivated in search
for work
ROLE AND BEHAVIOUR
Recycling ‘bundled service’ with cleaning office
Does not influence recycling behaviour among
tenants
Keeps within building policy
Has an unofficial “office” for storing and sorting
the waste paper
High interest in
recycling
High cost
sensitivity
High ability to
influence
change in
behaviour
Low
Interest in
recycling
Low cost
sensitivity
Low ability to
influence
change in
behaviour
NEED STATE
High margin
Maximize resource of time and
capacity
Safety
Access and storage

20. Current office recycling service system
“Where can I
dispose carton
boxes?”
Dispose waste
paper whichever
way is the most
convenient
Formal Service
Provider
Dispose/Collect Waste Paper
“Bring it to
general disposal
bin.”
Random disposal
point
Provide general
disposal bin
(No recycling)
Pick up by waste
disposal service
Informal Service
Provider
Service User
Information
“Put it outside
office and I’ll
collect.”
Collects waste
wherever she
sees it
Pack & sort waste
paper
Transport to
collection point
“John”
Tenant
SERVICE
EFFICIENCY GAPS
“Annie”
Building Management
“Aunty
Cleaner/Waste
paper collector

21. Service efficiency gap
Ignorance / Indifference towards recycling
among tenants
Out of sight, out of mind: Recycled materials are
perceived to be part of garbage and kept away
from public sight and hidden
Building management information gap
Inconsistent & insufficient information on right
way to dispose waste paper
No clear designated disposal points

22. Designing solutions for Service efficiency gap
CHALLENGE
<FORMALIZED COMMUNICATION>
How do we inform & encourage service users of right disposal habits to optimize recycling?
Green Ambassador go-to person for right disposal/recycling info
“Did you know?” stickers to educate office on right waste paper recycling
and disposal points
Boot camp for tenants to create useful outcome of recycled materials
Periodic eco-related events and activities at compound (e.g. contest, quiz,
workshop, giveaway)

23. Service Packages
Building on
current system
Service Package
Inclusive
New business opportunity
integrating with informal economy
Basic
Regular
Plus
Services
Via Aunty
Ad-hoc/Self-drop
recycling service
Vacuuming, dusting, washing cups,
cleaning windows, clearing bins,
watering plants, taking away carton
boxes
+ Via Building
management
On-demand
recycling service
Mopping, wiping of tables
On-demand on call service, In-office
recycling bins
Frequency/Week
(Month)
n.a
1 (4)
3 (12)
5 (20)
F.O.C.
$xxx
$yyy
$zzz
Pricing

24. Current office recycling service system
“Where can I
dispose carton
boxes?”
Dispose waste
paper whichever
way is the most
convenient
Formal Service
Provider
Dispose/Collect Waste Paper
“Bring it to
general disposal
bin.”
Random disposal
point
Provide general
disposal bin
(No recycling)
Informal Service
Provider
Service User
Information
“Put it outside
office and I’ll
collect.”
Collects waste
wherever she
sees it
Pack & sort waste
paper
“John”
Tenant
Pick up by waste
disposal service
“Annie”
Building Management
“Aunty
Cleaner/Waste
paper collector
SOCIAL WELFARE
GAPS
Transport to
collection point

25. Push cart aunty’s work flow and pain points
COLLECTION
PAINPOINTS
CLEAN
PICK UP
• Not much is collected as not
everybody knows where to
dispose
• Only have access to things
disposed downstairs
• Turf fights amongst cleaners
and push cart aunties
PACK & STORE
STORE
SORT
• Lack of formal storage space leads to fire
hazards and friction with building
management
• Things are left on the street, or in rubbish
collection area which decreases value of
product
• Lack of pre sorting by users lead to push
cart aunties having to sort them out
manually
TRANSPORT
SELL
ASSEMBLY &
DISPOSAL
CARRY
SELL
REMOVAL
• Carts are heavy and
packed up to 70 – 100
Kg at one time
• Pushing on the road is
dangerous
• Weather dependent
• Garung Guni trucks
collection points only
happen at fixed hours
and one cannot miss it

26. Designing solutions for Social Welfare gap
CHALLENGE
<ENABLING PROVIDERS>
How to improve welfare and without convenience or productivity trade off?
Informal recycling push cart innovation with safety and productivity
features
Safety education for
Push Cart Aunties in collaboration with NEA and MCYS
via Semb Corp/Garang guni truck
Aunty Hub: Designated storage place
for such waste paper collection within
building
Tenant education on sorting to aid in increase value creation of recycled
collection

27. Benefit to overall system
Building management
Push cart aunties and cleaners
VAS at low cost
Brand image as green campus
Work safety
Maximize value
Better working relationship
Government
Support marginalized
workers
Office recycling system
FORMAL
INFORMAL
Tenant
Garang Guni truck
Convenience
CSR
Bigger collection for more
sales

28. 1. Does the informal
economy exist in
my category and
how do I go about
identifying it?
 Map out inefficiencies in
the market and identify
who may be servicing
them

29. 2. What should I be
looking out for
when I am
observing the
informal system?
 Activity flow, hidden
touch points and where
value is being created
 Which areas can I
service or collaborate
with in the informal
economy?

30. 3. How can I benefit
from looking at the
informal economy?
 Consider how services
can be enhanced
 Possible new revenue
streams
 Uncover new needs

31. In praise of shadows ….
www.consumerfaces.com
www.bareinsights.wordpress.com
manisha.dikshit@consumerfaces.com
Thank You

32. Platinum Sponsor
Media Sponsors
Association Partners

33. November 20-21, 2013 | Singapore
Twitter Hashtag #QUAL360