[SOUND] [MUSIC] [MUSIC] Let's go over the project details one more time. You need to cover the problem, the opportunity, the solution, the enterprise plan and the sustainable outcomes. We earlier discussed how, at a product level, there is lack of affordability, there's the immediacy of basic needs and there's the decision to make, buy or forego. So to reiterate. Products are about betterment of life circumstances. What does that mean for you as an enterprise? It is critical to understand those life circumstances and it is critical to develop multi-faceted product offerings to improve the welfare of the individual and the community. This means you just can't think about the product alone, you have to think about things like how to educate about the product and educate about the need and so on. The customer is not just deprived on that particular need but also about education regarding that need. The context is one where there is lack of education and there is lack of educational opportunities, there is lack of access to knowledge and so on. In terms of relationships, there are resource constraints and interdependence among individuals. There is a one-on-one interactional world with strong word of mouth. And there is development of consumer skills. This is critical in that fairness and trustworthiness and human aspects of the relationship are very important. Therefore, as an enterprise, there has to be an emphasis on individual and community welfare. The key questions I ask you, if you are an enterprise trying to provide me with a solution is, can I trust you? Will you be around? Will you be fair to me? I'm going to look at you at a human level. A lot of enterprises have come and gone. Are you going to be around? Why should I trust you? In terms of the market, there are resource constraints and lack of mobility and a lot of dependence on groups, and there are a number of different fragmented small markets that are geographically diverse. There are varied group influences as well. You cannot separate the social milieu from the marketplace. That means enterprises have to work with diverse groups, and one way to think about linking all these groups is to think about social good as the common denominator. So to summarize, products are about betterment of life circumstances, relationships are about the human dimension, markets are about the social milieu. For the enterprise, there are a number of ways to do well, meaning to be profitable, to be successful, and there are a number of ways to do good. Many companies do well, and they do good as well through their products. But when it comes to subsistence market places, it is very difficult to separate the two. It may be essential to do good as it relates to your product in order to do well. That does not mean that a business has to be a charitable organization. What it means is, it's very important to understand your product as it relates to individual and community welfare. It's very important to understand that individual and community welfare are essential in order for you to do well. So you have to think about how your product impacts the community and how you can incorporate doing good for the community as it relates to your product. This is because of our analysis of looking at the individual or household and product level. Looking at the relationship level and looking at the market level. So to summarize, products and betterment of life circumstances are blurred. Relationships and the human dimension are blurred. And markets and the social milieu are blurred. The doing good is blurred with the product offering. The economic is blurred with the human. So your challenge as an enterprise is, how you merge doing good for the community with your product offering. So my argument is that it's essential for you to do good in order to do well. Let's take a look at Sun Oven company and how they go about designing their products. They have two products. Villager sun over which is for the entire village and can cook for large numbers of people in a community. And the global sun oven which can be used by a household. The need they focus on is energy for cooking. This is huge issue in a number of countries with a very high cost of energy for cooking fuel. The drivers are the cost of cooking fuel and lung ailments due to indoor smoke from using other methods of cooking. A key context element is deforestation due to the use of firewood. In terms of the cultural challenges, one of the issues is in cooking the evening meal. The sun is out during the day when the women cook and by the time the husbands come home in the evening the food is cold. And so this is certainly a cultural challenge in terms of the time in which the meal is made. Another challenge is taste. Food is such a culturally intensive aspect of life, and when you take somebody living in subsistence, for whom the central consumption event maybe the evening meal, it's hard to give up on the taste. So the taste is a very important issue in cooking with a solar oven. Moreover, cooking habits are hard to change. They are very intuitive. People who are low literate, or people living in subsistence don't necessarily go through a recipe in the rule book. They cook things in a very intuitive way, and having a new method of cooking is a big change to ask for. It's also not easy to recognize the savings that are gained from using a solar oven. And so that has to be spelt out in the value preposition as well. Moreover, people may value money and not value time as much as they should and end up spending a lot of time going out and getting firewood. In terms of customers, sun oven uses a monthly installment plan and a revolving loan fund. As loans are paid off, the money is lent to others for purchase of additional ovens. They finance women who have completed a solar cooking course. In terms of their business strategy, they work with local entrepreneurs to create efficient business processes, and they work with NGOs to gain access to communities. They license a private sector entrepreneur to make and market the ovens. They establish an assembly plant and provide specifications to allow local manufacture with the exception of one gasket that is sold for a small royalty. To summarize, sun oven has taken a problem, which is the need for fuel for cooking, and created an opportunity in a number of geographies. With their end user being the home maker who is involved in the cooking. They have created a solution, which is a solar oven. And they have augmented it through education and through developing an ecosystem of women who are learning from each other. In terms of alternatives, they are cheaper and they are much cleaner than the alternatives. In terms of their enterprise plan, they spell out their value proposition to the customers in terms of the savings gained and in terms of reducing ailments due to indoor smoke, they communicate the value proposition in a number of different ways and they deliver it through their local partners. Indeed, their sustainable outcomes are beneficial socially, environmentally and economically.
