1. 6/11/2012
Inclusive innovation for low-income
emerging markets
Professor Minna Halme, Aalto University School
of Economics, June 8, 2012
Minna Halme
Objectives of the training – this session
Minna Halme
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2. 6/11/2012
Low-income emerging markets
(or the Base of the Pyramid)
4 billion people
live with less
than 5€ (PPP) per
day
Minna Halme
Paradoxes
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3. 6/11/2012
Inclusive innovation at the BOP
Making it
real Minna Halme
Victims, resilient entrepreneurs or…?
Making it
real
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Minna Halme
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4. 6/11/2012
What solutions work?
Making it
real
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Minna Halme
Making it
real
Initiators range from multinational companies to SMEs, social enterprises
and non-governmental organizations.
Real examples
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5. 6/11/2012
Microfinance over the internet
PROBLEM: Subsistence entrepreneurs have too little
money or can’t get bank loans.
SOLUTION: MyC4 is a microfinance bank operating
through the internet since 2007.
• MyC4 grants loans to small enterprises in African countries
• Investors are individuals and organizations in developed
countries. Making it
• Each investor can choose the loan recipient, follow real
how the enterprise succeeds and can also give advice.
• Local ”providers” in Africa screen prominent
entrepreneurs.
REVENUE MODEL: MyC4 charges a 6% interest fee
on the loans when they are repaid.
OUTCOME: Over 19,000 investors from 115
countries have invested over €15 million through
the MyC4 website. Over 8,000 businesses in
seven African countries have been funded.
ITC eChoupal procurement hubs for farmers in India
Problem of subsistence farmers: Did
not used to get a fair price of their
produce in mandis (agricultural
marketing centres) due to unfair
Making it practices of middlemen
real Problem of ITC: Did not get good
quality commodities
The e-Choupal programme links
rural farmers via the Internet with
buyers of agricultural products like
soybeans, wheat and coffee.
Effects
Around 4 million farmers have been
Let’s see ourselves: empowered in 10 states of India where
40,000 villages have 6,500 eChoupals
http://www.youtube.com/watch?v=
Fx4gukMYTGA
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5

6. 6/11/2012
Grundfos Lifelink
PROBLEM: Lack of safe drinking water
SOLUTION: Water systems for rural communities, schools
and hospitals Making
it real
It is crucial to develop community ownership
Users pay with mobile phone & pre-paid key fob (RFID
Technology).
Local banks participate in financing
Solar panel is power source
Maintenance and repair costs are included in the water
price
On-line remote monitoring with GSM/GPRS
Quick repair in case of faults
Locals have been trained as repair mechanics
Minna Halme
Largest eye care facility in India
Mission is to remove needless blindness
Many eye care services, with the cataract lense
surgeries and provision of affordable ophthalmic
products worldwide
Let’s see ourselves:
http://www.youtube.com/watch?v=3cjnNPua7Ag
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7. 6/11/2012
BOP innovation: What lessons to learn?
Making it
real
Halme Jan 18, 2012
Making it real:What can governments and IGOs
do?
Making it
real
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8. 6/11/2012
Thank you!
Professor Minna Halme
For information:
http://management.aalto.fi/en/research/groups/bop/
& www.aaltoglobalimpact.org/
Minna Halme
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