Social Entrepreneurship 2011 Clara Navarro Colomer

SOCIAL ENTREPRENEURSHIP 2011 CONSULTING PROJECT

Professor: Clara Navarro Colomer, clara.navarro@esade.eduhttp://www.esade.edu/faculty/ clara.navarro This course is actively supported by Professor Alfred Vernis, alfred.vernis@esade.edu http://www.esade.edu/faculty/ alfred.vernis

Business Policy Depart. Assistant: Mari Angels Auge, auge@esade.eduBuilding I (Av. Pedralbes 60-62, second floor), Ext.2300

SUPPORTING CDI DEFINE ITS STRATEGY FOR SPAIN

SUPPORTING CDI DEFINE ITS STRATEGY FOR SPAIN

1 BACKGROUND ON CDI

..1.1 History

Founded in 1995, pioneer of the digital inclusion movement in Latin America, CDI (Center

for Digital Inclusion) is one of the leading social enterprises in the world with a unique

socio-educational approach. CDI Founder and Ashoka Fellow Rodrigo Baggio and CDI's

work have been recognized with more than 60 international awards. Today, CDI is a

network of 816 self-managed and self-sustaining CDI Community Centers throughout

Brazil, Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, and Uruguay

– monitored and coordinated by 32 regional offices.

In addition to low-income communities, CDI schools are also present in indigenous

communities, psychiatric clinics, hospitals for the mentally and physically disabled, as well

as youth & adult detention facilities. CDI is an international NGO with US 501c3 status,

headquartered in Rio de Janeiro. CDI has operations in the USA, UK, and Latin America.

With the support of James Wolfensohn, former President of the World Bank and the

Wolfensohn Institute, CDI is in the process of expanding to the Middle East and North

Africa (MENA) region, to be followed by India and other parts of Africa. Spain is also a high

priority since Rodrigo Baggio recognized immense opportunity as he visited the country in

November 2010.

..1.2 Mission

CDI's mission is to transform lives and strengthen low-income communities by

empowering people with information and communication technology. CDI uses technology

as a medium to fight poverty, stimulate entrepreneurship and create a new generation of

changemakers.

..1.3 Key Success Factors

Scale — 1.3 million people in 15 years.

CDI has developed a pioneer model that has overcome what is known as the ‘classic pilot

syndrome’, i.e. the difficulty of scaling up and replicating a project that is successful on a

grassroots level to a global level. The structure of the CDI Network creates a positive

ripple effect that leverages CDI’s impact transnationally, which means that supporting a

school in Chile can affect other schools in places as far as the Amazon Forest.

Methodology — graduating changemakers

CDI’s greatest strength is its educational methodology—a combination of civic and digital

education that seeks to help people help themselves by empowering poor youth and

adults to understand the challenges that face their communities and work together to solve

them.

Local ownership & content — flexible and relevant in any context

CDI believes that underprivileged communities themselves are better positioned than

governments or companies to decide how to solve the problems that affect them locally.

This is why the CDI model places a premium on shared responsibility and local ownership,

entrusting community members to manage and coordinate their own schools.

Credibility — more than 60 international awards

CDI’s work has been independently reviewed and recognized by companies, multilateral

organizations, and news media around the world. CDI has become one of Latin America´s

most distinguished non-profit organizations, but its greatest achievements however are the

results that they have seen in the communities. CDI is the first social enterprise to be

recognized with fellowships and awards from Ashoka, Avina, Schwab and Skoll

Foundations. The World Economic Forum has awarded CDI four different distinctions, and

CDI is also supported by IDB, Tech Museum, Unicef, and Unesco. Other awards include

the World Bank Citizen Award, the Humanitarian of the World Award and the World

Technology Award in the Social Entrepreneur category.

CDI Founder, Rodrigo Baggio, was named by the World Economic Forum as one of “100

Global Leaders for Tomorrow”, by Time Magazine as one of the 50 leaders in Latin

America that will make a difference in the third millennium, by CNN, Time and Fortune’s as

one of the world’s ten “Principal Voices in Economic Development”, and more recently was

invited to join the Strategy Council of the UN’s new Global Alliance for ICT and

Development and the Clinton Global initiative. Rodrigo is was also named Honory PhD

Doctor of Human Sciences; Certificate of quality for experiences with at-risk youth; 1 of 20

principal leaders in Latin America; Young Global Leader, Outstanding Social Entrepreneur

and 2 more recognitions from the World Economic Forum.

No handout approach — sustainable approach

CDI believes that handouts create dependency and fail to address the root of the problem.

They seek to empower changemakers and enable poor youth and adults to become self-

sufficient by fostering the concepts of exchange and collaboration—everyone pitching in to

achieve a common goal.

Partners

CDI’s current partners include the WWW Foundation, Microsoft, Dell, Motorola, ABN-Amro

Bank, Skoll Foundation, Vale Foundation, Accenture, Skoll Foundation, Avina, W.K.

Kellogg Foundation, Deloitte, IBM, Cisco Systems, Unilever, the Esmee Fairbairn

Foundation, Vivendi and the Carrefour Foundation and more.

Other in-kind supporters include Unesco, Globo (Brazilan media conglomerate), Unicef,

Giovanni + Draft FCB, Deloitte Touche Tohmatsu, Ashoka, Barbosa Mussnich & Aragão,

Schwab Foundation, Terra, Domingues e Pinho Contadores, and Sucesu.

..1.4 The Probem: the digital divide

The ‘Digital Revolution’ has led to dramatic expansion of the global economy, transformed

the way we live and generated tremendous wealth—but only for some parts of the world.

79% of the world remains digitally excluded and every single day the importance of

technology in creating a sustainable social impact becomes ever more urgent.

Of the world’s 6 billion people, for example, just 1 billion have access to the internet.

Speaking of this gap, James Wolfensohn, former President of the World Bank, has called

the digital divide “one of the greatest impediments to development today”.

In Latin America, this exclusion has deepened existing social gaps and created castes of

marginalized populations that are unable to participate in society as self-governing, active

citizens. As soldiers on the frontlines of the growing drug wars, underprivileged Latin youth

have become the protagonists of issues of global concern such as the drug industry,

immigration, and violence.

• Today nearly 40% of Latin Americans live below the poverty line.

• Quality education and healthcare are scarce; unemployment borders 20%.

• While estimates show that workers in the Knowledge Economy require 12 years of

formal education, Latin Americans have only 6.

• Only 17% of the population in Latin America and the Caribbean have access to the

internet (compared to 70% in the United States and Canada).

• In Brazil, the first Map of Digital Exclusion (published in 2002 by USAID, Sun

Microsystems and business school Fundação Getúlio Vargas), revealed that just

12% of Brazilians owned computers and only 8% accessed the internet from home.

• Recent studies show that 79% of the Brazil’s 180 million people still have never

accessed the internet and 54% have never used a computer.

..1.5 The Solution: digital inclusion

CDI uses knowledge to stimulate local economic development and job creation.

Technology is one of the most powerful catalysts of change at hand today. But technology,

in itself, is just a tool. The true challenge is making technology relevant and useful in the

context of marginalized populations. For 14 years CDI has empowered disadvantaged

groups to use Information & Communication Technologies (ICTs) as tools to exercise

their full capacities as citizens and tackle the issues that affect their communities.

CDI Community Centers are technology and learning centers in impoverished

communities. Each CDI Community Center is a partnership with an existing leading

grassroots organization. The community based organizations provide the infrastructure

and CDI provides free computers and software, implements educational methods, trains

instructors and monitors the schools.

CDI Schools are rooted in Latin America´s most vulnerable regions – from the sprawling

urban slums of Rio to the refugee camps in Bogota, as well as in indigenous communities,

prisons, juvenile delinquency centers, psychiatric institutions and hospitals for the

physically disabled.

..1.6 CDI's methodology

Offer relevant tools to affect true change =

Digital Literacy + Civic Education + Entrepreneurship

CDI Community Centers are based on three principal objectives – that they are self-

managed, that they are self-sustainable, and that they implement the CDI pedagogy.

This unique pedagogy requires that by the end of each 4 month course, students will

have used technology as the main tool to initiate, plan, implement and complete a

“social advocacy project” aimed at changing an aspect of their realities. Students

collectively identify a common challenge facing their community and prepare an action

plan to overcome it. Issues can range from sexual abuse, pollution, violence, crime, and

drugs, to the lack of healthcare or schools. Students then use the technical skills they’ve

learned in class to tackle the problem, mobilize their communities, engage in advocacy

and awareness campaigns, and work together to solve that specific problem. The CDI

methodology enables people to become active and informed citizens, capable of

organizing their communities, making their voices heard, and affecting true change.

A: A 5-step methodology for learning to solve social problems

B: Partner Channels

Innovating CDI

In its quest to continually increase the breadth and the depth of its impact, CDI mobilized 5

internal working groups from different disciplines to innovate new solutions for efficient

growth. The result was the creation of a new multimedia learning environment, new

courses, new services with business plans, revised performance indicators, a new

monitoring process, and an online platform for communication and collaboration. In

addition to making its existing operations more dynamic, CDI is also expanding to new

markets.

..1.7 CDI's Programs

CDI Community Centers

Each CDI Community Center is a partnership with an existing leading grassroots

organization. The community based organizations provide the infrastructure and CDI

provides free computers and software, implements educational methods, trains instructors

and monitors the schools.

Today our CDI Community Centers are better equipped than ever to continue the fight

against exclusion. CDI's programs are delivering education to individuals, as well as

providing an expanded portfolio of technology services to communities, that lead to real

skills for work in the modern labor market, increase community development and provoke

active citizenship, community mobilization, autonomy, ownership and entrepreneurial

behaviors.

In addition to their traditional course offerings such as competency in basic office

programs, computer maintenance and networking, CDI has formalized and introduced 11

new courses (including video and audio editing, blogging, website development), and

business plans for 30 services such as internet access (with or without assistance),

resume building, e-gov, graphic design & services, scholarly research, e-health, e-learning,

and job hunting. Through the implementation of these services, CDI Community Centers

are on a clear path to becoming completely self-sustaining micro-enterprises.

CDI LAN: Expanding CDI's reach through the private sector

There are more than 100,000 internet café small businesses in Brazil that serve as the

main point of access to technology for low-income communities. Almost half of all

Brazilians that access the Internet do so through these “LAN Houses.” That´s 40 million

people. A large portion of these businesses however, are illegal, have a short life-

span and are unhealthy environments for young people because of uncontrolled

access to pornography and violent video games. CDI LAN is a new division of CDI that

affiliates legal LAN House that sign a code of ethical conduct thereby agreeing to be triple

bottom-line businesses at the Base of the Pyramid (BOP).

Conexão

Projeto Conexão is a social joint venture between CDI and Rede Cidadã, another highly

acclaimed citizen sector organization based in Minas Gerais, Brazil. Conexão believes that

employment is a means by which young people and low-income entrepreneurs can

develop into active citizens, engaged in transforming their own realities. By providing

professional training and mentorship, as well as guidance in navigating the labor market,

young people are equipped to become agents of change in their own lives. Similarly,

through Conexão, private sector businesses offer pro-bono consulting services to

micorentrepreneurs to strengthen their enterprises, and by extension, their surrounding

communities. Conexão’s success in the three Regional Offices in which it works - Rio de

Janeiro, São Paulo, and Belo Horizonte—have led to the systematization of strategies that

encourage civic empowerment through income generation.

The project is currently underway in the following communities: Cidade de Deús, Moneró,

Tribobó, Costa Barros, Vila Kennedy, Pavuna, Vila Pauline, Santa Rita, Campinho, Morro

dos Macacos, Bangu, Maré, Babilônia, Rocinha and Realengo.

Employability:

• Training in basic employment skills

• Mapping productive capacity

• Specialization

• Mock interviews

• Talent bank

• Circulating job openings and contracts

• Ongoing training

• Entrepreneurship

• Selection of entrepreneurs

• Matching with volunteer consultants

• Business management consulting

CDI Consulting: Sharing CDI's expertise and best practices

CDI Consulting is a new division of CDI that finds its roots in CDI’s experience and

expertise in Digital Inclusion and in working with the Base of the Pyramid (BOP). With 14

years of success, innovation and continually setting industry standards, CDI is now well

positioned to offer expert advice, strategic consultancy as well as operational services to

an ever expanding number of clients. CDI Consulting works with clients including

multinational and medium businesses, state and federal governments as well as NGOs

and social enterprises, to find the best way to reach their potential while maximizing impact

and adding value. CDI Consulting does this by -

• Studying and understanding our clients’ industry, model, mission, requirements and

potential

• Strategically aligning our clients needs and the CDI know-how into an innovative

tailor-made action plan

• Implementing the action plan either on a turn-key basis, as a partnership or by

indicating the best way to implement the project

Apps for Good – powered by CDI

Millions of people have smartphones today, and the demand for apps is expanding fast. If

the uptake of apps in any way mimics that of web 2.0 and mobile use, the market is set to

explode. The opportunity for creating great apps that are really useful and make a real

difference to peoples’ lives is huge. With Apps for Good, youngsters from disadvantages

backgrounds can grab this opportunity, improve their prospects and at the same time

make a positive difference to the world. Apps for Good help them equip themselves for a

career in the design, tech and mobile industry and find out if they’ve got what it takes to be

an app entrepreneur and agent of change.

Apps for Good is the brainchild of CDI Europe, (now operating in the UK only) in

partnership with technology giant Dell, and supported by people and businesses in the

tech and creative world including Orange, Talk Talk and Ogilvy.

During April- June 2010, CDI Europe successfully ran the first pilot open course with 9

young people aged between 16-25 years at High Trees Development Trust in South

London. Now, in addition to running open courses for 16 to 25 year olds not in full-time

education, jobs or training, they also run programmes for 13/14 to 18 year olds in full-time

education at schools.

Apps for Good aims to:

• Ignite a passion for technology and social enterprise in young people in the UK

• Encourage young people to use technology to tackle problems for social good

• Increase the entrepreneurial skills and confidence of young people

• Bridge the gap between young people and the business networks and knowledge

that can help them

• Tackle youth unemployment by encouraging social enterprise with mobile

technology, and opening doors into exciting, growing industries

• Build a connected world of young people, business volunteers and educators,

inspiring each other to solve problems and succeed through the wonders of mobile

technology

During the Apps for Good course, students go through a kind of entrepreneurial process

whereby they identify what is wrong with their world before designing a way of fixing it with

a mobile app. Apps for Good combines a broad range of areas in the course, giving young

people a foundation in entrepreneurship, community involvement, problem-solving and

team work, as well as design and some technical skills.

Apps for Good develops talented and employable young people in an industry with plenty

of room for creativity, prosperity and employment.

What makes Apps for Good different:

• They do not set agendas or themes but use radical bottom-up innovation processes

to allow young people to come up with the issues they worry about in their lives and

in their communities.

• The Apps for Good approach goes beyond simple, basic training, and no journey

through Apps for Good is the same for any individual. Student ownership of both

issue and solution is what makes a lasting difference.

• The course style and structure follows a peer-to-peer, problem-centred learning

model inspired by the work of the influential Brazilian educator Paulo Freire. This

learning model is at the heart of all CDI programmes across the network. You can

learn more about CDI’s model and its global network on the CDI Europe website.

To learn more about Apps for Good visit http://appsforgood.org

2 CDI IN SPAIN

As Rodrigo Baggio visited Spain in November 2010, he saw a reality that he did not like.

• Despite being a developed country, there are many groups of society in Spain that

are excluded and vulnerable: disadvantaged youngsters, lonely elderly, excluded

immigrants....

• Rodrigo observed that efforts made for digital inclusion in Spain are mostly

focussing on expanding the number of people who have access to technology

(quantity) but they are not focussing much on the quality of such access

• Rodrigo also saw that many “locutorios” (internet and phone centers mostly used by

low-income immigrants) were mostly uncoordinated, often illegal, and lacked a

social mission, as it used to be in Brazil before CDI set up CDI LAN Houses.

Given this, CDI sees many opportunities to adapt its model and programmes in Spain.

Several ideas need to be researched. Your task will be to help CDI do the market research

to test these hypothesis and advice them on their entry strategy in Spain and how to best

adapt the CDI model for this country.

Different teams will have a slightly different focus in terms of project, target group and

geographical area, as defined below.

..2.1 Adapting CDI's model: financial inclusion for immigrants and elderly

CDI's methodology, as explained above, is based on coupling digital inclusion with courses

that help people help themselves. In tis sense, to adapt CDI's model to Spain, CDI needs

to find what would be the relevant things to teach to the relevant target groups through

digital inclusion. In this sense, CDI has a hypothesis that two of the most digitally excluses

groups in Spain may be immigrants – especially the porrest ones and illegal ones – and

the elderly. CDI also suspects that these two target groups have a low level of financial

inclusion, with limited access to banking products and services. Indeed banks are

struggling to access certain kinds of populations such as illegal immigrants, who do not

trust them and/or do not know how to make use of them in their own interest.

Hence, CDI thinks there may be an opportunity to couple digital inclusion with financial

inclusion for vulnerable target groups such as migrants and elderly in Spain. Coupling

these two needs would allow to:

• Adapt CDI's methodology to Spain by teaching financial inclusion as a tool for target

groups to improve their situation and at the same time benefit from digital inclusion

• Bring about the benefits of financial inclusion through finance litteracy to vulnerable

populations that right now do not benefit optimize the use of financial services

• Build on current efforts for digital inclusion in Spain, extending their reach and

upgrading their impact

Groups researching this opportunity will focus either on migrants or elderly.

Key questions that you should try to answer are:

• Characterizing the target group:

• How big is the target group you are studying in the geographic area you

considered?

• What are their socio economic and cultural characteristics?

• What is the level of digital inclusion in your target group?

• What is the level of financial inclusion in your target group?

• Is there any particular sub-group that would most benefit from CDI support,

and in which areas?

• Defining the product:

• What are the main financial needs in your target group?

• Have you identified any other need that may be relevant for CDI to develop

its project and attend this target group?

• What could be the potential benefits of digital and financial inclusion courses

for your target group?

• What kind of content would be most relevant regarding financial and digital

inclusion for your target group?

• What considerations should be taken into account when designing learning

products for your target group?

• Identifying partners:

• What possible partners have you identified on the ground with yur target

group?

• Are there any organizations already working with on digital or financial

inclusion with your target group?

• What opportunities could there be to finance this programme? Which

companies could be interested in partnering with CDI to bring about finance

and expertise?

• Other questions that you may find relevant

Based on your findings, what would you recommend CDI do in relation to your target

group? Should they pursue this opportunity?

Additionally, in the case of immigrants you may want to look into the possibility of

leveraging the current “locutorios” (phone and LAN houses). As explained above, CDI LAN

Houses has allowed to structure, coordinate, legalize and upgrade phone and LAN houses

in Brazil and turn them into centers with a social mission. CDI thinks there may be an

opportunity to replicate this in Spain and build a social business inspired in the model of

CDI LAN houses around the current “locutorios” to turn them into centers that not only are

profitable but also bring about social value for immigrants in a legal, coordinated and

responsible way. The “locutorios” could become learning centers for their users, mostly

immigrants, with a common brand and adherence to a common code of conduct.

Researching this may be a challenging task due to the lack of transparency in this market.

Hence, it is just an optional idea for groups focussing on migrants.

..2.2 Adapting Apps for Good in Spain

Given the success of CDI's Apps for Good in the UK, CDI thinks this could be an attractive

programme to enter the Spanish market too. CDI wants to know if Apps for Good could be

adapted to work in Spain and how. This could involve setting up training programmes for

disadvantaged youngsters in Spain to teach them how to develop smartphone apps that

help solve problems in their own reality.

Your research should bring some light to questions such as the following:

• Characterizing the target group:

• Who are they? E.g. youngsters in disadvantaged communities who do not

have access to IT resources, smartphones etc? What kind of social problems

do they have?

• How many of them tend to have IT knowledge or are digitally included versus

excluded?

• What type of application may be useful for this kind of target group

• Characterizing the apps market:

• what companies may be interested in developing this sort of Apps? Where do

they get their programmers from, how much do they pay, how easy is it to

find rogrammers...?

• Who is developping apps at the moment, how much does it cost to develop

an app?

• What type of technical platform is developing what applications: android,

Java....

• Defining the product:

• What kind of training would be necessary for the target group to be able to

create apps?

• How would the collaboration model be (between the younsters and the

companies)?

• Identifying partners: who coud be potential partners already working with

youngsters to introduce this programme? What target age, geographic rea etc

would you recommend is best to start with?

• Other questions that you may find relevant

..2.3 Task requirements

As you see, CDI requires help to decide their entry strategy in Spain. They are talking to

potential funders to explore what ideas may be most attractive to them and who could help

them from the corporate world. Your market research will be very important to:

• Provide insights about the target groups, their needs and potential. For this you will

need to explore secondary sorces, get in touch with organizations that support this

target group and, if you can, interview members of the target group themselves.

• Provide insghts on possible partners to support these groups, based on the

organizations that you meet and the references you get.

Additionally, CDI will welcome all your innovative ideas and recommendations regarding:

• what projects/services they can offer to these target groups. These canbe

adaptations of existing CDI rojects, or completely new ideas that you come up with.

Your only restriction should be to bear in mind CDI's philosophy (based on Paulo

Freire's methodology) that digital inclusion is only a tool to help people solve their

own social problems, it is not the end goal.

• How could they finance the projects aside from philanthropy? What market-based

mechanisms could there be? Which types of companies could be interested in

sponsoring CDI and why? What could CDI offer them?

By the end of the course each group will submit:

• One report per group, including the main findings in your research and a

recomendation for CDI based on your research. The report will be maximum 12

pages long with a readable font size and 1.5 spacing. You can include appendices

but note that these will not be taken into account for the mark, so the important

content should be included in the 12 pages. Still, appendices with details, interview

transcriptions, studies or other data that you used may prove useful to CDI.

• One presentation per group. The presentation will be delivered on the last

session of the course, on Wednesday April 27th. This should include a summary of

key findings and a recommendation – please avoid methodological and other

details which should be all in the report. The presentation will be maximum 10

minutes long, followed by some questions.

..2.4 Support and resources

Session 3 will be your chance to ask questions about the work to the course professor.

After that, it is suggested that you start by looking for information about your target group

in Catalonia through secondary sources such as websites and reports.

On Session 4, each group will be assigned a reference organization working with your

target group in Catalonia (disadvantages youngsters, immigrants or elderly). They can be

a starting point for your research as they know well your target group and their needs, and

can provide further contacts and ideas for research. They could also be potential partners

for CDI. All the organizations will have been previously contacted and will expect you to

contact them.

On session 6, you should have done a preliminary research based on secondary sources

and at least a first interview with your contact organization. Try to synthesize your

preliminary results and be prepared to share them with another team as well as to come

with questions or doubts. We will use part of session 6 to provide feedback between

groups and help each other. This will also be your chance to ask further questions and

reorient your work if needed.