Beruflich Dokumente
Kultur Dokumente
Module 2
Readings
2 HRS
O U R TA K E O N S O C I A L
ENTERPRISE MODELS
Acumen and the Global Social Benefit GSBI similarly serves social entrepreneurs
Institute® (GSBI) are excited to partner to around the world who are developing
bring you this course on business models for innovative solutions that provide a
social enterprises. sustainable path out of poverty. They
leverage the expertise of Silicon Valley
Acumen is an impact investing firm focused mentors to help social entrepreneurs
on changing the way the world tackles develop stronger business models and
poverty. Each year our portfolio team looks emerge ready to receive investment and
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O U R TA K E O N S O C I A L
ENTERPRISE MODELS
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CASE STUDY:
A R AV I N D
There are two patients lying on parallel If the idea of a hospital conjures up scenes
operating tables. A surgeon sits between of chaos or desperation, you haven’t been
them. Her operating microscope hovers to Aravind. Based in south India, Aravind
over the first patient. She makes a precise Eye Care Hospital was founded in 1976 by
incision in his eye and removes the clouded Dr. Venkataswamy, known more commonly
lens. Skillfully, she inserts a new acrylic as “Dr. V.” After a long career working at the
lens through the narrow slit.
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CASE STUDY:
A R AV I N D
Government Medical College, Dr. V. hit the The Early Days of Aravind
mandatory age for retirement. Rather than
hang up his surgical coat, he decided to It is the late 1970s. Dr. V has set up an
became one of the world’s pioneering social 11-bed hospital in his brother’s house. Five
entrepreneurs. The goal he set for himself beds are reserved for patients who will pay
was audacious: he wanted to end curable for their cataract operations. The remaining
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C A S E S T U D Y PA R T 2 :
T H E E A R LY D AY S O F A R AV I N D
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C A S E S T U D Y PA R T 2 :
T H E E A R LY D AY S O F A R AV I N D
Collecting data also allowed Aravind to get It costs Aravind about $10 to perform a
faster and more efficient. If you’re operating cataract operation, while it costs hospitals
in an environment of scarcity, you have to in the United States $1,650. By putting
get creative to figure out how every asset multiple patients in an operating room at a
and person can be used to their maximum time, using paraprofessionals to efficiently
efficiency. In fact, Dr. V. was obsessed with support the surgery, and standardizing all
process innovation. He traveled to the elements of the operation, Aravind has
United States and became obsessed with been able to dramatically cut costs and
McDonald’s—not because he loved their increase the number of patients who can
hamburgers, but because he admired how pass through its doors. As Dr. V. built a social
they could create the same standardized business, he was diligent about seeking out
product at scale. He would follow caterers people solving related problems in different
around at a hotel to see how they efficiently industries and learning from them. Now,
prepared food, or observe a janitor as he we think that he’s built an incredible model
cleaned toilets to see how he mastered a that other social entrepreneurs can learn
repetitive task efficiently. Compiling these from too.
insights, Dr. V. developed a standardized way
of performing cataract surgery that allowed
Aravind doctors to deliver quality outcomes,
with the same efficiency of a franchise
worker packaging Happy Meals.
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W H AT I S A
SOCIAL ENTERPRISE?
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W H AT I S A
BUSINESS MODEL?
“A business model describes This means that you need to think through
the whole “story” of your business—from
the rationale for how an
how you will first interact with a customer,
organization creates, to how you’ll design or manufacture
delivers and captures products or services, to how you will deliver
those products to their doorstep or corner
value.”
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THE THREE COMPONENTS
OF A BUSINESS MODEL
Here is a bit more detail on what we mean by creating value, delivering value and capturing
value. These themes will structure the next three modules in the course.
CREATE
CAPTURE DELIVER
VALUE VALUE
How does a company generate What systems and partnerships
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INTRODUCING THE
B U S I N E S S M O D E L C A N VA S
Below is a copy of the business model Note that the four boxes on the top right
canvas developed by Alex Osterwalder. The of the canvas relate to how your company
business model canvas is a tool that breaks will create value. The three boxes on the
an enterprise down into 9 building blocks lefthand side relate to how you will deliver
that describe how the company will create, value and the two boxes at the bottom
deliver, and capture value. Your canvas pertain to how you will capture value.
CAPTURE VALUE
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SOCIAL
Designed for: Designed by: Date: Version:
The Business Model Canvas ENTERPRISE
MISSION
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments S TAT E M E N T
A S S O C I AT E D
I M PA C T
METRIC
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2. Value proposition Describes the bundle of products and services that a company will
offer to create value for customers. A value proposition is the reason
why customers choose one company over another.
3. Channels The ways that value propositions are delivered to customers through
communication, distribution and sales.
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9 BUILDING BLOCKS OF
THE BUSINESS MODEL
5. Key partnerships The people or organizations you will work with to deliver your value
proposition. In all companies, some activities will be outsourced and
some resources acquired from 3rd parties.
6. Key activities The key things that a business will have to do in order to deliver its
value proposition to customers. These are things like production,
problem-solving, and platform management.
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9 BUILDING BLOCKS OF
THE BUSINESS MODEL
7. Key resources Assets required to offer and deliver the value proposition to
customers.
8. Revenue streams The money a company gets from doing business with each
customer segment.
9. Cost structure The elements of your business model come together to become your
cost structure. Your cost structure can be cost-driven (meaning that
you focus on keeping things as low-cost as possible) or value-driven
(meaning that your prioritize value or quality).
Social enterprises should take into account that costs can be covered
by a mix of philanthropic and market capital, depending on how they
are structured.
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I N T E G R AT I N G Y O U R I M PA C T
AND BUSINESS MODEL
Embedded social enterprises are ones core assets such as technical expertise,
where the social impact activities directly reputation, relationships, and machinery/
create revenue for the business. For infrastructure to serve multiple customer
embedded social enterprise model. BURN some and creating social impact for others.
creates low-cost, highly energy-efficient Keeping the business and impact models
cookstoves for Kenya’s urban poor. With tied together helps them maintain a core
each cookstove sold, they help improve focus, rather than diverting crucial resources
the lives of the poor by reducing smoke and attention to side revenue streams.
Credit: http://www.4lenses.org/setypology/integration
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I N T E G R AT I N G Y O U R I M PA C T
AND BUSINESS MODEL
Credit: http://www.4lenses.org/setypology/integration
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4 TYPES OF your
company
money
other services
companies
Product companies
These are companies that capture value from a
product. They may be involved in just one stage of
B2C
the value chain, such as manufacturing or sale of the
product, or they could be involved in all stages. Product
companies will always involve two parties: a seller
B2B
Service companies
These are companies that deliver services, like as
schools, hospitals, or microfinanciers. The services
B2C
they offer should be customized for each client. Service
companies will always involve two parties: a company
and a customer. Again, the customer could be an
B2B
individual end user, or another company/organization.
Platform companies
These are companies where the product or service
is offered to a customer for free, and the transaction
is ultimately paid for by a third party. Platform
companies will always involve at least 3 parties. The
most famous current example is Google, which offers
its search engine free to users, and collects revenue
from advertisers.
Market companies
These are companies that match a buyer and a seller,
and take a slice of the transaction. Market companies
will always involve at least three parties. Current
examples are Etsy, Airbnb, Kiva, or Uber.
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A NOTE ON BUSINESS
M O D E L I N N O VAT I O N
We are often asked, “What are the most basic infrastructure is under-developed,
innovative business models that Acumen governments and regulatory environments
or GSBI sees?” We’ve found that “Business are unstable, and things, in general, just
Model Innovation” is phrase that’s often don’t work the way you’d expect/want them
thrown around, but that no one really too. Thus, the “innovation” may come in
understands. The word “innovation” often looking at all the different pieces of the
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I N N O VAT I O N S I N S O C I A L
ENTERPRISE MODELS
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THE NEED FOR A
LEAN APPROACH
This course will focus on providing an overview of the concepts that should inform your
business model. However, keep in mind that we see development of a business model as fitting
into the Lean Startup approach. That is, once you document initial hypotheses, you should
continuously “get out of the building,” as Steve Blank says, and test those hypotheses with real
customers. Below is a quick overview of the Build-Measure-Learn loop, which forms the core
of the Lean Startup approach. You can learn more about how to apply this methodology to the
social sector in our +Acumen Lean Startup Principles for Social Impact course.
BUILD,
model or “pivot” to a new one.
MEASURE,
LEARN,
5. Conduct rapid experiments &
MEASURE the results
LOOP 3. Formulate a value proposition
+ Based on what you know about your
+ Design tests to conduct with your customers customers, what product or service could
to see if your hypotheses are accurate. you create that would alleviate their pains
or create valuable gains for them?
+ Define clear metrics to see if your
hypotheses hold true.
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BONUS: WHERE SOCIAL
ENTREPRENEURS GO WRONG
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BONUS: WHERE SOCIAL
ENTREPRENEURS GO WRONG
offices or schools, you can aggregate some because new video streaming products and
functions of a business like accounting and services emerged. This is why companies
HR to a central office. But these central need to invest in research & development
offices still cost money to operate, and (and self-reflection!) at all stages of growth.
some social enterprises forget to account
for these expenses as they build their 5. Social entrepreneurs underestimate
business model. They can create businesses capital requirements for starting a
that are profitable at the unit level (i.e. business.
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FINAL
NOTES
We’ve covered a lot in this first reading. You + A company can have multiple
should now understand: business models within it (we’ll
+ how we define a “business model” talk more about this in Module 3
on Value Chains)
+ the 9 essential building blocks of
a business model, and how we + You should keep assessing other
define them for social enterprises business models that other social
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