City of Pearls

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The City of Pearls Tuesday, November 19, 13

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Social Entrepreneurship – Why it is needed in India and why you can make money out of it. Plus how the Internet can help;-) Presentation for Master students at IBS in Hyderabad

Transcript of City of Pearls

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The City of Pearls

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1. What makes an excellent entrepreneur ?2. How can the Internet help ?

3. Why social ?4. Social enterprises in India

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You ?

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What makes an excellent entrepreneur ?

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Passion.

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Vision.

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Culture.

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Courage.

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Network.

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How can the Internet help ?

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Non-linear

Connectivity

Web 1.0

Web 1.0

Web 2.0

Complexity

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1. Many participants (hubs) + 2. High spontaneous activity rate +3. Increasing connectivity >>>increases the possibilities of hypes !

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Linear Systems >>> Non-Linear Systems

effect=cause Tiny cause, huge effect

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117.000 tweets in the first hour after the iPad announcement

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TextText

Results Google Insights for “WhatsApp”

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>>> HUGE effect on mobile carriers !!!

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Android phones: 85% market penetration within 9 month !

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KPN (Dutch carrier) SMS sales dropped 11 %= 49 million Euros !!!

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Twitter (August 16 and 17)

with 8000 tweets #isupportannahazare became most discussed topic on August 17

More than 9000 tweets #Janlokpal15,000 tweets with the mention of Anna Hazare

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Facebook

More than 150 Facebook related pages 13.000 people joined daily

over 71,000 'likes' and 13,000 comments in August 2011

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#DelhiGangrape

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January 2011

Today complexity is the biggest challenge.

Longterm forecasts are hardly possible !

Decision makers are forced to act short-dated

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The best time for the car industry is still ahead of us !

We don’t sell cars but mobility !

The car industry is in upheaval !

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Ferdinand Dudenhöffer, leading car industry expert:PS will no longer be the decisive argument for car buyers!

3 month later:Germans love PS strong cars, no matter how much petrol willcost.

3 month later:

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3 month later:

T

Cars will get cheaper!

Cars will get cheaper!

Cars will get more expensive !

Cars will get more expensive !

Germany: Drop in prices: 1.9 %

Hardly any discounts because of booming sales!

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1. If connectivity and non-linearity increase, complexity increases above average and the capability of forecast decreases below average !

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>>> consequences for entrepreneur:

The understanding and reflexion of context becomes much more important than defining goals and planning strategies!

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Linear Systems >>> Non-Linear Systems

Which strategies are the Which parameters are the most effective and efficient ones ? most meaningful and important ones

within the framework ?

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the intelligence of one >>> the intelligence of many

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Ashby‘s Law of Requisite Variety

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The larger the variety of actions available to a control system, the larger the variety of perturbations it is able to compensate.

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>>> Network building !

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2. To build Networks is problem AND solution – All in one !

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>>> consequences for entrepreneur:

He/she has to become part of the network !

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In networks it’s not the supplier who is deciding,

it is the consumer !

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>>> consequences for entrepreneur:

The shift in power and decision making !

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The End of business as usual!Markets are conversations !

Consumers, employers, citizens become creators !>>> democratization

1999

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And people want to participate and create !

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Resistence 2.0 India against corruption

Delhi rape....

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Participation 2.0 AAP

Right to Information Act....

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Linear Systems >>> Non-Linear Systems

Hierarchy AutonomyWhere does the system/company go ? Where does the system emerge to?

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3. In Networks key to success is resonance!

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4. In Networks key to success is cooperation !

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Competitors cooperate !

>>> Coopetition

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>>> consequences for entrepreneur:

The borders of the company become permeable ! Established values within the borders lose significance – MELTDOWN!

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Linear Systems >>> Non-Linear Systems

Loyality AttractivenessWhat fosters longterm relationships ? What makes cooperation attractive?

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1. complexity

2. Shift in power

3. Meltdown

Creating networks within and outside the company as an answer of increasing complexitity

Loss of loyality within existing systems as a consequence of connectivity

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1. complexity

2. Shift in power

3. Meltdown

Longterm planning and strategies become less important in daily business !

The unpredictable momentums within networks force democratization !

Identification with a single system become less and less important for an individual !

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RETHINK BUSINESS AS USUAL !

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Why social ?

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Textt

Text

T

No money

Social

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25% of #India’s population livesunder the poverty line (1.25 USD/day) !

Times of India, August 29, 2013

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An additional 40-50%is just above poverty line !

World Bank, June 2013

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22 of #India’s 32 big citiesface water crises !

Times of India, September 9, 2013

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#Hyderabadwater supply fails to meet almost

30% of demand !

Times of India, September 9, 2013

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#DelhiThe city generates nearly 10,000 tons of garbage — equal to the

US average weight of about 5,000 cars — every day.

Globalpost, June 6, 2013

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#DelhiThat volume is expected to double over the next decade.

Globalpost, June 6, 2013

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#DelhiAnd while experts estimate the city will need some 500 acres of new landfills to process the city's mounting waste, only 100-odd

acres have been targeted for waste-management projects ...

Globalpost, June 6, 2013

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Air Pollutionis the biggest KILLER in India !

An increase of 600% in the last decade!

Hindustantimes October 22, 2013

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Air Pollution... levels in Lanzhou, China’s most-polluted city,

are lower than all of India’s top five. (Delhi, Ludhiana, Kanpur, Lucknow and Indore)

Hindustantimes October 22, 2013

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Air Pollution... costs India about 30 billion USD or 3% of GDP.

World Bank 2013

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Education80% literacy by 2015

Times of India July 18, 2013

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80% literacy by 2015, BUT:15% of Indian students reach high school, and only 7%,

of these 15% who make it to high school, graduate. Girls are alarmingly under represented!

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Why is this so?– not enough schools

– badly equipped – lack of teachers in numbers and

– in qualification– social issues (girls)

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GenderEvery 12 seconds a female fetusis selectively aborted in India !

Fair Observer September 9, 2013

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All these issues OFFER HUGE business opportunities !

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TAKE YOUR CHANCE !

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The markets are waiting for you !

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Social Enterprises – India

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When doing business in #India,live here !

Anu Sridharan

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When doing social business in #India,live where the problem occurs !

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problem: not enough waterstatus: cell phone available

solution: text >>> water smart grid lite data system

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A mobile phone system which connects valvemen to engineers and customers and

builds up a data-pool.

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A simple text can change lives.

20-40 hours/month waiting for water. Sometimes, people may take a whole day

off work to collect water.

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user: 10 INR / monthHubli: 25.000 users

Bangalore next

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Market volume in India: 150 million USD90% of South-East Asia has same problem!

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Why join the navy if you can be a pirate?Deepak, Hisam, Abhinav and Ashwin,

four dropouts from LBS Engineering College in KasargodTuesday, November 19, 13

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problem: no internet accessstatus: cell phone availablesolution: text >>> smart

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55444SMS Gyam and airtel

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user: 1 INR / query30 INR / month

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service provider: 70%innoz: 30%

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first 18 month: 18 million queriesfebruary 2013: 120 million active users

adding 2 million every month

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open platformapp-store

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problem: 160 million India households cook in

rudimentary mud stoves or open fires.This is dangerous and emitting toxic smoke.

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This toxic smoke causes 4 million premature death each year globally.

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solution: efficient home energy devices tailored to rural consumers.

Great in design, cheap in price.

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Impact – reduction of smoke emission up to 80%

– no behaviour change for consumers >>> people use it!

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No program from top-down.Solutions from bottom-up.

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ManifestosSolution-driven !

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government = platform on which social

enterprises can flourish

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Structure = Network-structure with

various hubs where needed

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learning over education

PULL over PUSH

systems over objects

resilience over strength

compasses over maps

risk over safety

practice over theory

disobedience over compliance

emergence over authorities

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practice over theory

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disobedience over compliance

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systems over objects

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emergence over authorities

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Be the change YOU want to see !

Mahatma Gandhi

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Thank you!twitter: @[email protected]

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