rr ————————————
111 Rosa Povede at “Mutuaiton y Mutuaitas”
forgave oben fim
121 Naw imation cycle ater the tsunami
122 The daub leap for climate change et
120 The tee perspectives for new business
stom te Trpla Leap
‘abies
1s Whats our ambiton and capably forthe BoP apace?
281 Selected participator methods
441 Deseription of gras-ontsinovaton networks
42 Diferences between closed anc open inmovation princes
43 Relovart novation generating ieact hough
‘al-chan phases
5.1 Overview of enterprise nance need the
8:1 Basie commodities pce comaarsen between
and county of eran
213 Types of actors used various partner oles
121 Selected project rom a new METI fessbity study
suppot polcy fr te aoceleraton of asapation solitons
12.2 Banas and challenges for companies and
cxaniztons making the Fo Leap
Boxes
1 About ow ease stucs
532 Thehistry ef parlpatory approaches
5.1 About our BoPine case stiles
52 Food and natrtion sctorin ies!
53 The plenoer gan
54 Someide Blactre BlpBop
55 ickive Business Fund
1011 Extract ram the OCA conoeat note on ICT soktons
112 Turing a dumpsta no anargene garden:
the case of "Motualtony Metals itv in Bogots
196
Prologue
Defining the path towards
a BoP 3.0
‘tua L Hort
Since ie original publation of my ale with CK Praalad, “The Fortune a
the Bottom ofthe Pram’ in 2008 the tory and practice of atom (base) of
the pyramid BoP) busines as ake lf. Thousands of new coxporatentnves,
Startup seaturs development instiion programmes ana Innovative inves
trent finds focured on sacl apa have eplosed oat the scene A Woe new
Tenicon has emerged to describe tis phenomenon incuting new barzords and
fetch phrases sth a insve busines, "opporinis fo he mao Ss
tunable velioode’ "pro-poor basses” and "soll busines The number o
Conferences and summit deleted to the premise that business and enrepre
eurshi ert ust land peilaropy ean be brought bear aievate
poverty has skyrocketed. Ander thourans ofooks ates, newsetes and
bogs adresing this topic ave appeared on the scene
‘et despite al his aety and atten, cere stl the nagging sense that we
have not yet crashed the code when i comes to BoP business. The unfortunate
truth ethat oat BoP ventures an corporate ates over the pa decade ave
her ined outight or achieved ony modest nieces pea cost. Asa conse
{quence a growing numberof copes noe simply ag ths activ o thelr
‘Sorprate sci esponstiy department or corporate foundation.
‘Soc lick of action can Been explained in part by she incesientlapproch
taken by many BP venues and corporate natives deed {and several of
Caleagues hve drawn dtincton between "BoP 1.0 anid"BoP 20° The forme,
hasbeen the dominant approach to dae, ocoes on adaplng exstngproducts, reducing price points and extending dsirbution o previously unde
Served or unsere ustomers often with non-governmental ngnizaon (NGO)
parsers to compensate forthe ack ror experience And whe such "bosines
‘ode innovation necessary thas proves estan sulin, sine most such
“outside kates have been commer fale. len BoP 1. othe po
‘veil "hld ith a ammer”—gve aed hammer and everthing loos ike
tml Corporation ow ho sng tei exiting hanna owe income
“eonsure lok ke sot fnew abe smlr| nas Some have even aagested
that this approach natng more than he ate form of corporate perils,
‘Over the pst decade, BoP 20 hasbeen advanced ae way to overcame many of
the probleme of simply sling othe per™-The 20 approach estes the inpor-
tuner ofce-reting products andcmpeling se propstons wthunderseved
‘stile technology. and eeating » deemed set of metic snd timeline
‘hited the unique fetes of te ner sere space Ifthe BoP 1.0 ml can
be summarized a “nding a forune a the Bo?” premised onthe loge of
Ping nto exiting abet undersered, marke) then BoP 20 canbe character
‘wakes Indeed my enler book with Ted london (Next Generation nse
‘Sas for he Base ofthe Pri. 2010) makes exact ths oi
“The BoP Global Network as been dedicated to bulding he teary and acceler
sing the practice of BoP businesenterpise thats inclsie, elt embed
feds environmental sustainable sd profitable Members af the network have
onsen significant ways over the past wera yets to mein twas
oP 20, And whilewearevilin thers of developing the new sls capes
‘tnd organlzvona routines necessary to execte Bo? 2.0, additonal challenges,
emplextios and opportunities ae boing reve Indeed, ony by taking action
lows one uncine the shortcoming Inthe aproach taken As expected, BOP 20,
Bopa
“This book contains contrbiton fom members ofthe BP Global Neoworkthat
halp stretch ou thinking and pot us towards BoP 3.0, How dos BoP 3.0 dite
from 207 In tis book, you wl find the folowing terbes andrei cas
+ rom protected space o purpose and mind-set 80P2.0srssd the npr
tance of reatng protect organizational "white spac” in copasies oie
nee BoP intaes the me and spare fo reat ca-reaton and embed
ding Whe importan:, crating protected organizational space i neces
‘ary but probaly not sullen ooking esd it wl become Ineeasngy
important o consider BaP vente nthe content the lage corporation,
Diels core purpose and smbiton, a revealed by pst behaviour
Xorallcompaniesreequaly sted opusutofthe BP and egies and
ffecvenes) wl vary depending onthe companys toe purpose, ind
tnd level ambition, Part of this book addresses these new challenges.
+ from co-reation to open fasovation. BoP 2.0 reveled the importance
‘it c-ceating soltons rom the bottom up in partnership wih the poor,
father than simply marketing lowcost products rom the top down, We
esi inthe early sage of suing the skis necessary fr eft co
‘reation and wuts value cretion, Looking aed, however, open innova
‘lon may represent a whle new ana for BoP novation. desing onthe
wisdom ofthe cow to spawn previously unimagined solutions Inded,
patcpatry, grassroots ovations nay tke BoP Dunes ta whole new
level in the ens ead, Per I of tis Book pols us towares hese new
‘+ from stand alone to innovation ecosystem, BoP 2.0 cles recognized he
Importance of engagemens, particulary with thosn he underserved con
unity sl Homever, BoP 2.0 stl ended:o ew the busines a mand
tt saith successor failure even by the ventures sates. price
pwn, busines adel or rae proposto. Looking dead Is Becoming
Frceasingly car tat fr BoP ventures and ites to succeed, they wil
red to be embedded ins larger norton napster, nud potential
Technology prone, anders, eapacy-bulders on the ground pares
tha supp-ai laers Too ten, gad des have otdered because o
sing pul ple ofthe a? navn scoop, Pr of hi book
rom extended dltribution to inovtion forthe lat mile. oP 2.0 under
ond the challenge of ining eflecive dlstbution tn dangerous sums or
nore sparsely populated rural wea, incudng the high ens associated with
{nated dennateam chaos singe productscr nro vale propos
tlonsIndced the las! decade I tered wth he fae remains of BOP we:
‘re wt cox structures that sin could not produce competitive retus.
ooking thend, ore collaborative and eae approsehes may be nec
‘conto crack the cade on dition, inlulng wider bandwidth value
Propositions an sharing channels wih other complementary partners and
plajers, artIV ofthis book explores this new orzo,
From NGO engagementtocros-secorparnership networks BoP 2.0 pid
fomidenteentonto tbe mporancof parton wid NGOs adobe
{ey the gou players epecaly In groupies wre the company
tea may hve ned exerci fat any DOP venues have ef
thet outsourced el cise acing tncons tO NGO partners embed
‘ane sre pe tng hen opine
flex partrcp newode acug NGOv gnenments and aealemic
Fersers may Uke BoP snes scene Pa Vo his Dok ons a
fd fr ech mse pastes
From poverty aleviton to sustainable development. he oii mot
tin for BoP business wasting the power f enterprise o seve the poo,create lvelhoods and leit pore
integrating both enionmental soa
ton) perspec note BoP 5
‘ent Lo use Bo busines loge to incubate net mols to beter sre a
Fecude the under saved populations ia the developed word Pa Vo his
\Wehope you find the contbitions onthe pages tht flow usful net spon
tnseoatinalng questo crete oppor fra we snultanosyconsersng
and taining natural capital. and make money dln
References
pad SL. Ha (200) Nat Gents Bns Senge fort
Introduction —
Lessons learned:
Moving the inclusive business
agenda forward
Femando Casado Careque
The base (ott) of te pyramid (oP) i demographic that covers appa
hac fourand aba ilion people who lve ones tan USS per day atthe base
ff the global economic pyramid. These low-income communis endure heavy
threo gin acess to base series anon ack tbe opportunites rogue
to faite tee empowerment and se Such deeumstances offen
translate ino powesy pel, which mean they overpay for goods and series
cull spe.
Income: Inthisconertwwallymplesackng
eduction sfering rom il heh anv low
ie-xpectancy rae anda high moral ate
‘Since pofeton CX Pabalad and Star [Har ft defined the BoP concep
eat progress hasbeen achieved in how ongiatons and companies ae ln
orang ine concept and proposing solutions int their inseam strategies
Today govetaments, international ogizaons, cl sci oguizations and,
in parte, compaaies om al oer he worl have adopted the concept. They
a endeavouring to develo famewore and management systems tht Dang
them coset the el needs of BP communes 0 tat thy eas work alongside
them as partnersto rest soil aeoweer: he appleton of dupe inovon andthe eet of more
lncaste snes ml can gener new naravecommecaloneenn,
wihuemendous poten bahar an ele rote ion
By developing ice sess owen Smmuniesan paca gak
‘nth nace that ca Doo the conpetivenescasopac foro
Nonetees despite the inteing potent! ef Bot innate es
model, ensring ices inthe implenenaton ts proven tote seas
Thera ill many methodol nd management detec anes
be dress, suchas devoping popes co-nnvaion pene i babe
munis undentadingand enunaing te al potent gene cot