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Nov 12, 2008 Copyright Neerja Raman
What is BOP andand Why You Should Care:Hitting the moving market with diffusion programs
The Secret Sauce of InnovationStanford University Continuing Studies Program, Wallenberg Hall
Fall Quarter, November 12, 2008
Neerja Ramanhttp://neerja.raman-net.com
blog: http://fromgoodtogold.blogspot.com/
Senior Research Fellow, Stanford University
(fmr.) Director, Strategic Planning and Imaging Systems Lab, HP Labs
Author:
The Practice and Philosophy of Decision Making: A Seven Step Spiritual Guide
Nov 12, 2008 Copyright Neerja Raman
What is BOP?
� Is it Market or Strategy?
� A Mirage at the bottom of the pyramid?
� Capitalism gone haywire?
� Socialism gone haywire?
� A case for philanthropy?
OR
� ITS NOT MY PROBLEM
� Not interesting?
� I can’t do anything about it?
Nov 12, 2008 Copyright Neerja Raman
The secret sauce?
� Next-bench
� Back-of-the-envelope
Nov 12, 2008 Copyright Neerja Raman
BOP is your “Next Bench”
Nov 12, 2008 Copyright Neerja Raman
VC investment in Innovation(1st 3 qtrs, 2006) Source: Dow Jones VentureOne
Bristol
Japan
India
$19.5B $1.18B
$0.35B
GDP Growth:China 9.9%
Vietnam 8.4%
India 7.6%
Where is market growth?
Nov 12, 2008 Copyright Neerja Raman
Social conditioning
Nov 12, 2008 Copyright Neerja Raman
Customer Understanding
Nov 12, 2008 Copyright Neerja Raman
Business context in 2000+
� Customer life concerns� The next billion
� Climate change
� e-Networks
� Multi-cultural environment� Stone Age human behavior
� Local adaptation
� e-person
BOP = < $4/day
Nov 12, 2008 Copyright Neerja Raman
Back of the envelope
� With a world population of 6+ billion
� 2+ billion have a lot and 3+ billion have a little
� That 3+ billion is unable to contribute to global economics
� The Blame Game?
� China perspective: obsolete technology factories (which could not be built in US by law) are beng built in China for products consumed in US – so China emissions should be counted in the US column
� OR Innovation to the rescue?
� Technology – have the 3+ billion skip Oil/Coal phase for their energy needs (mobile phone vs. Land line)
� Market development – value creation at economics affordable by the 3+ billion (e.g. LED and CFL vs. light bulbs)
Nov 12, 2008 Copyright Neerja Raman
Sola-ickaws Anyone?
Nov 12, 2008 Copyright Neerja Raman
Datacenter Redesign
� Dynamic Smart Cooling (DSC): Sensor-rich data center in Bangalore will save 7,500 megawatt-hours annually – equal to the power consumption of more than 750 U.S. homes – and reduce carbon dioxide emissions by approx. 7,500 tons annually.
� New Metric: Measure total environmental impact- from extraction to shipping, operation and recycling in Bangalore- researchers consolidated 14 separate data centers into a single, 70,000-square-foot facility.
� http://techworld.com/green-it/features/index.cfm?featureid=3790&pagtype=samecat
Nov 12, 2008 Copyright Neerja Raman
metric: Lifetime Exergy Advisor
Source: Chandrakant Patel, Hewlett Packard Sustainability Lab
Nov 12, 2008 Copyright Neerja Raman
Ineffective Spend
� Tuberculosis - $1B on 100yr old tech. $300M supplies
� “Industry has limited knowledge of market size, character, geographic dimension”
� Industry-Government partnerships can alleviate “burden of disease” but only through innovation
Nov 12, 2008 Copyright Neerja Raman
Remote Specialist
Web PortalMatch-making, Scheduling, Medical Records
In the field surveyor
http://www.telehttp://www.tele--healthcare.orghealthcare.org
Global ConcernGlobal Concern
http://www.handheldsforhealth.org/
field doctorRemote database
Nov 12, 2008 Copyright Neerja Raman
The India Market
Source: NCAER, Millions of
Households in 1999
Source: NCAER, Millions of
Households in 1999
Purchasing powerPurchasing power
DESTITUTEDESTITUTE
ASPIRANTS
“Two wheeler”
ASPIRANTS
“Two wheeler”
CLIMBER
“Refrigerator”
CLIMBER
“Refrigerator”
CONSUMING CLASS
“Car”
CONSUMING CLASS
“Car”
RICHRICH
Source
Rama Bijapurkar
42 M
38 M
62 M
27 M
2 M
Nov 12, 2008 Copyright Neerja Raman
A BOP strategy must address ALL
http://www.internetworldstats.com/
STIMULATE MARKET
CREATE AFFORDABILITY
SUSTAINABILITY
Nov 12, 2008 Copyright Neerja Raman
Its not easy: many stakeholders
Corporate Sector
Academia
NGO's
The Village or District
MediaGovtAgencies
IIT's, IIM's, IAS academySrishti
Tech companies (Satyam, TCS, Infosys)Mobile service companies (Reliance Agricultural companiesBiotech companies
Corporate Foundations
top 5 per sector (education, health..)Barefoot College
CIET, NCERTOthers in each sector
PrintBroadcastInternet
Nov 12, 2008 Copyright Neerja Raman
A cup of tea?
Nov 12, 2008 Copyright Neerja Raman
Thank You
Neerja Ramanhttp://neerja.raman-net.com
Senior Research Fellow, Stanford University
(fmr.) Director, Strategic Planning and Imaging Systems Lab,
HP Labs
Author:
The Practice and Philosophy of Decision Making: A Seven Step
Spiritual Guide
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