Impact Meetup: How to structure an impact enterprise using the Social Business Model Canvas
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Interested in learning more about how to structure an impact enterprise? Getting more familiar with the Social Business Model Canvas and how to apply it to your organization or idea? Check out the slides from our first meetup at Helsinki Think Company. The Social Business Model Canvas was introduced through the example of Aravind Eye Care System.
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Impact Meetup: How to structure an impact enterprise using the Social Business Model Canvas
- 3. Impact Meetup series spring 2016 26.1. 5-7 pm: How to structure an impact enterprise using the SBMC 24.2. 5-7 pm: Today's cooperativism & financing cooperatives 23.3. 5-7 pm: Modelling, measuring and reporting on your impact 3.5. 5-7 pm: Crowdfunding for impact enterprises FOR WHOM? All impact-minded individuals:) WHERE? Helsinki Think Company, Vuorikatu 5
- 4. SCHEDULE What is Impactor and who are we? Who are you? Intro to business models The Social Business Model Canvas Wrap-up & upcoming workshop 17.2. Mingling & sharing stories:)
- 5. Cooperative with a purpose of helping change agents and impact organizations to find financial resources and to transform the economy.
- 6. Membership Join the impact ecosystem Build your network Share your knowledge Bring your challenge to our coaching clinic Become an impact investor Membership fee: 50 euros
- 7. WHO ARE WE?
- 8. “THE-WHAT- ORGANIZATION?” Social enterprise Mission-driven organization Impact(-driven) organization For-benefit organization 4th sector
- 10. Impact-driven: making saving the world your business (i.e. you have a social / environmental mission) Why financial sustainability? Measure &maximise your impact - often toughest “criteria” Ourguidelines
- 11. Examples:
- 12. “A business model describes the rationale of how an organization creates, delivers and captures value” - Osterwalder & Pigneur Blueprint on how to implement your strategy Business model vs. business plan Current reality vs. ideal situation What is a business model?
- 13. Examples of business models Fee-for-service - e.g. solar energy Cross-compensation - e.g. Aravind Eye Care Market intermediary - e.g. Fair Trade Freemium
- 14. Business Model Canvas = visual communication tool
- 15. Photo: http://www.optometrystudents.com/event/infinite-vision-one-doctor-india-changed-future-eye-care/ Aravind Eye Care System “quality at prices that everyone can afford” combination of high quality and high volume --> “The McDonald's of Health Organisations”
- 16. Photo: https://www.flickr.com/photos/62532814@N03/5737237128 2 646 129 → 2/3 315 483 → 3/4
- 17. Photo: https://www.flickr.com/photos/62532814@N03/5737237128 2 646 129 → 2/3 315 483 → 3/4 Apr 2010 - Mar 2011 outpatient visits: surgeries: fraction of services to the poor either free or at a steeply subsidized rate
- 19. color code your customer segments and the according value propositions - easier to follow make separate canvases for separate products or services, if they differ much in existing organizations: make separate canvases for current situation & ideal situation most important: how does everything align Tips for filling out the canvas
- 20. VALUE PROPOSITION why do your customers come to you? new? better? tailored? how do you solve customer problems and satisfy customer needs? social value proposition customer value proposition impact measures describe how value is created don’t do everything - focus on few things & do them well
- 21. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care Aravind Eye Care System
- 22. BENEFICIARY & CUSTOMER SEGMENTS “the different groups of people or organizations an enterprise aims to reach and serve” -Osterwalder & Pigneur heart of any business model beneficiary (edunsaaja): is served by the organization, but does not necessarily pay for products / services different needs different ability to pay require different relationships
- 23. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor Aravind Eye Care System
- 24. INTERVENTION describe your product or service
- 25. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized Aravind Eye Care System
- 26. CHANNELS Value propositions are delivered to customers through communication, distribution & sales channels Interface with customers & beneficiaries Direct / indirect channels Own / partner channels
- 27. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics Aravind Eye Care System
- 28. REVENUE STREAMS for what value is each customer segment willing to pay? sales, usage fees, subscription fees, lending/renting/leasing, licensing, commission advertising each revenue stream may have different pricing mechanisms (fixed / dynamic pricing)
- 29. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do Aravind Eye Care System
- 30. KEY ACTIVITIES what do you do to make the aspects of your business model come to life? what do you need to be able to do yourself? e.g. sales, marketing, R&D, production, customer service
- 31. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D Aravind Eye Care System
- 32. KEY RESOURCES what do you need to carry out your activities? the most important assets to make your business model work physical, financial, intellectual, human owned / acquired from partners
- 33. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff Aravind Eye Care System
- 34. KEY PARTNERS & STAKEHOLDERS who do you need to make the business model work who do you need to involve to deliver your value proposition to your customer and beneficiaries? e.g. suppliers, funders, regulatory bodies, government funders can be identified either as partners or customers
- 35. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff • NGOs & major foundations • WHO • research collaborators Aravind Eye Care System
- 36. COST STRUCTURE What costs are incurred to operate your business model? How do your costs change as you scale up your organization? Fixed costs: salaries, rents etc. whatever incurs even when production 0 Variable costs: whatever varies depending on production level Economies of scale: cost per unit decreases when production increases Economies of scope: cost per unit decreases when scope of operations increases, i.e. marketing efforts may support several products
- 37. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff • NGOs & major foundations • WHO • research collaborators • equipment & materials • salaries • R&D • accommodation, nutrition & travel of patients Aravind Eye Care System
- 38. SURPLUS How will you invest your profit?
- 39. SOCIAL VALUE PROPOSITION: eradicating blindness --> economic productivity IMPACT MEASURES: • n:o of low-income patients treated • n:o reached via screening camps • n:o of health workers trained --> reduction in unemployment & illiteracy CUSTOMER VALUE PROPOSITION • free / low-cost eye care services incl. transport to hospital • quality & humane care the affluent the poor • low-cost eye care • “McDonald’s model”: highly replicable & standardized eye camps in rural areas, base hospitals, clinics “pay according to your abilities”: the poor do not pay (2/3 of customers), the affluent do • scouting out patients • education & training • surgery • R&D • hospital equipment • doctors & support staff • NGOs & major foundations • WHO • research collaborators • equipment & materials • salaries • R&D • accommodation, nutrition & travel of patients • generated from affluent customer’s fees • goes towards developing & growing Aravind Aravind Eye Care System
- 40. SOURCES: Osterwalder & Pigneur (2010): Business Model Generation http://www.socialbusinessmodelcanvas. com/ http://socialleancanvas.com/
- 42. normally 189 € (incl. VAT 24 €) 94,50 €
- 43. Impact Meetup series spring 2016 26.1. 5-7 pm: How to structure an impact enterprise using the SBMC 24.2. 5-7 pm: Today's cooperativism & financing cooperatives 23.3. 5-7 pm: Modelling, measuring and reporting on your impact 3.5. 5-7 pm: Crowdfunding for impact enterprises FOR WHOM? All impact-minded individuals:) WHERE? Helsinki Think Company, Vuorikatu 5
- 44. Where can you find us? jenni.selosmaa@impactor.fi kristiina.ullgren@impactor.fi saila.kokkonen@impactor.fi Impactor www.impactor.fi @impactor_fi
- 45. THANK YOU SO MUCH FOR COMING!