December 10, 2014 SOCIAL ENTREPRENEURSHIP AND BUSINESS MODELS Brooke Partridge, CEO.

December 10, 2014

SOCIAL ENTREPRENEURSHIP AND BUSINESS MODELS

Brooke Partridge, CEO

2 © Vital Wave SM

Proprietary and Confidential: Do not copy or distribute.

WHAT IS A BUSINESS MODEL?Take a slingshot business…

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Tommy dreams of having his own slingshot business. He is an entrepreneur.

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EVALUATE POSSIBLE BUSINESS MODELS

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Business Model PossibilitiesFreemium modelBundles and add-onsRent-to-ownSubscription or leasingPay-as-you-goAdvertisingAffiliateLicensingSchool buys for kidsDirect sales

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He borrows $100 from his sister Mary at 10% interest to start his business….

…Mary is Tommy’s funder.


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$

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stickrubber band

leather rock

Raw inputs

Tommy texts his friends Zeke and Raoul who bring raw materials.…They are his suppliers.

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He taps his little sister Jules to assemble his slingshots for 25 cents per.

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Sal’s

Sal, the owner of a local store, decides to purchase 100 at $2.50 each.

He then sells them for $3.00.

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Tommy Mary Zeke & Raoul

Jules Sal’s Shop Sal’s Customers

Give Vision Partner

sourcing & mgmt.

Time and energy

Financial Analysis

$100 loan at 10% interest rate

Provision of raw materials for slingshots

Assembly of each slingshot

Slingshot distribution

Absorbs the risk of not selling slingshots

$3 per slingshot

Get $115 after the first order and paying his sister

$10 in interest

$1 per slingshot; $100 after the first order

$0.25 per slingshot; $25 after the first order

$0.50 per slingshot sold; $50 once they sell all 100 slingshots

Enjoyment

BUSINESS MODELSThe “Give” and “Get” Along the Solution Value Chain

?Sal’s

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EXERCISE (25 MINUTES)Situation Overview

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• ABC Communications has developed a SMS messaging service called Thrive

• The service provides 1-way messages customized to the health issues of widowed women.

• Start-up funding secured, and partnerships developed.

• Government is the economic buyer

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Give Venture funding

Model

Biz case

Partnerships

Health content

Data at favorable rate

• Network to transmit SMS messages

• Market intelligence

20 cents per message

Data on widowed women

Service usage

Get Repayment

Social returns

Achievement of social mission

8 cents per message

Improved outcomes

5 cents per message

5 cents per message

Revenues for incremental SMS transmission

2 cents per message

Reduction in public health care costs

Health tips and reminders

Improved health and quality of life

Additional Partnership Intelligence

Social enterprise determines it needs to earn 5 cents per message to break even

NGO has received a new grant from a large foundation for its work with women

Aggregator has offered even lower rates to its other clients

CSR team has new fund for health projects

Government has extra funding for health projects next year

Aggregator MNO

ABC - Social

Enterprise

EXERCISEOne-way Health Messaging for Widowed Women

FunderWomen’s

Health NGO

Gov’t Widowed women

Funders Project Implementers End User Economic Buyer Other contributors

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EXERCISE (25 MINUTES)One-way Health Messaging for Widowed Women

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1. Break into groups and review your teams value chain scenario

2. Keep the solution sustainable amidst the challenges

• One of your value chain members has a new requirement. (See handout.) Redistribute revenue flows for sustainability, holding the price to government constant.

Challenge 1

• The government’s budget is slashed. They can only provide $.05 per message. Brainstorm approaches for restructuring the business model or value chain for sustainability.

Challenge 2

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BUSINESS MODEL MANAGEMENT IS A CROSS-FUNCTIONAL ACTIVITY

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Strategy AccountingPartnership & Supply Chain Management

Negotiation

Performance Tracking

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SUMMARY BEST PRACTICES

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Localize the business model

Ensure value prop for all stakeholders involved

Plan for long-term Economic Buyer

Perform M&E

Keep it simple

THANK YOU

Beyond the Pilot: Front-line implementation perspectives

Global mHealth Forum[Innovation] Social Entrepreneurship and Business Models

December 10-11, 2014

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What is IPIHD?

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IPIHD is a nonprofit organization founded by Duke Medicine, McKinsey & Company, and the World Economic Forum and hosted at Duke.

IPIHD aims to improve health worldwide by supporting the scale and impact of promising innovations.

IPIHD is supported by and collaborates with a global and diverse group of organizations that are committed to strengthening and increasing the scale of health innovations.

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IPIHD Key ActivitiesIPIHD works toward its aims in four connected ways:

SourceIPIHD increases awareness of promising new strategies to address health challenges by curating a network of innovative models and offerings developed by organizations from around the world.

StrengthenIPIHD increases the capacities of these innovative organizations by providing key resources and connections.Scale

IPIHD increases the scale of impact of these innovative models and offerings by facilitating their adoption in new contexts.

StudyIPIHD facilitates the development and dissemination of focused insights and new evidence about these innovations and their strategies to scale and replicate.

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1

3

2

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IPIHD Key ActivitiesIPIHD works toward its aims in four connected ways:

SourceIPIHD increases awareness of promising new strategies to address health challenges by curating a network of innovative models and offerings developed by organizations from around the world.

StrengthenIPIHD increases the capacities of these innovative organizations by providing key resources and connections.Scale

IPIHD increases the scale of impact of these innovative models and offerings by facilitating their adoption in new contexts.

StudyIPIHD facilitates the development and dissemination of focused insights and new evidence about these innovations and their strategies to scale and replicate.

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1

3

2

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Implementation Considerations

1. Designing health technologies and trying to get others to adopt them

2. Choosing and implementing someone else’s technology into an existing body of work

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Physician/Provider

• Willingness to adopt new processes/methodologies

• The role of behavior change

• Emerging technology versus gold standard

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Physician/Provider Appropriate design




• Considering your audience (Patient versus provider)

• Operating Realities-Health System-Regulatory Climate-Physical Realities (e.g. infrastructure, connectivity, etc.)

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Physician/Provider Stakeholder incentive landscape

Appropriate design




• Systematic mapping of stakeholder incentives

• How do stakeholder incentives interact?

• Considering your audience (Patient versus provider)

• Operating Realities-Health System-Political Climate-Physical Realities (e.g. infrastructure, connectivity, etc.)

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Implementing Healthcare Technologies

CONNOR LARKINBUSINESS DEVELOPMENT,

FORUS HEALTH

Ophthalmic technology company with a flagship product that makes

eye screening viable by general practitioners, primary care centers,

and specialty care providers.

TING SHIHCEO, CLICKMEDIX

Customizable connected health platform that allows for medical

consultation requests from anywhere without the physical

presence of a doctor.

LUKE DISNEYEXECUTIVE DIRECTOR, NORTH

STAR ALLIANCE

Network of clinics serving hard-to-reach mobile populations along

major transport corridors using a proprietary electronic health

records platform.

FRONT-LINE IMPLEMENTATION PERSPECTIVES

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Forus Health

Sold 550 devices in 20 countries with over 1 million patients served

▪ Ophthalmic technology company with a flagship product that makes eye screening viable by general practitioners, primary care centers, and specialty care providers.

▪ Patient record management solutions that provide the practitioner with cloud based database solutions to host and manage patient records and other allied data.

▪ Mobile connectivity allows for immediate remote diagnosis by specialists, enabling them to provide care in the remotest areas without leaving their offices.

▪ Device, record management solution, and mobile diagnosis create a ‘platform as a service’ model.

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ClickMedix

▪ Connected health platform accessed through mobile phones, tablets, or computers in collaboration with local and global implementation partners.

▪ Technology platform allows for medical consultation requests from anywhere without the physical presence of a doctor.

▪ Task-shift: Empowers community nurses and/or health workers to collect patient data using various devices.

▪ Evidence-based protocols ensure the right care is provided at the right time.

In 3 years, ClickMedix has been deployed in 15 countries, through 90 sites addressing different diseases

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32 locations in 12 countries throughout Africa

Served over 280,000 patients in 2013 and over 1 million since founding

North Star Alliance

▪ Chain of Roadside Wellness Centers set up along major transport corridors in Africa to provide hard-to-reach with education, counseling, treatment, and testing for common diseases such as HIV.

▪ Standardized health service package that caters to the needs of the target population.

▪ Task-Shifting: Nurses and behavior change specialists are sourced from local public facilities and trained to properly address the most common diseases affecting their target population.

▪ Proprietary electronic health record technology allows patients to receive successive care at any clinic in the North Star network, and identify hot spots for disease transmission in hard-to-reach populations.

© David Chidley

Beyond the Pilot: Front-line implementation perspectives

Global mHealth Forum[Innovation] Social Entrepreneurship and Business Models

December 10-11, 2014

|

Questions? CONNOR LARKIN

BUSINESS DEVELOPMENT, FORUS HEALTH

Ophthalmic technology company with a flagship product that makes

eye screening viable by general practitioners, primary care centers,

and specialty care providers.

TING SHIHCEO, CLICKMEDIX

Customizable connected health platform that allows for medical

consultation requests from anywhere without the physical

presence of a doctor.

LUKE DISNEYEXECUTIVE DIRECTOR, NORTH

STAR ALLIANCE

Network of clinics serving hard-to-reach mobile populations along

major transport corridors using a proprietary electronic health

records platform.

December 10, 2014 SOCIAL ENTREPRENEURSHIP AND BUSINESS MODELS Brooke Partridge, CEO.

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