Interested in learning more about how to structure an impact enterprise? Getting more familiar with the Social Business Model Canvas and how to apply it to your organization or idea? Check out the slides from our first meetup at Helsinki Think Company. The Social Business Model Canvas was introduced through the example of Aravind Eye Care System.
3. Impact Meetup
series spring 2016
26.1. 5-7 pm: How to structure an impact enterprise
using the SBMC
24.2. 5-7 pm: Today's cooperativism & financing
cooperatives
23.3. 5-7 pm: Modelling, measuring and reporting on
your impact
3.5. 5-7 pm: Crowdfunding for impact enterprises
FOR WHOM? All impact-minded individuals:)
WHERE? Helsinki Think Company, Vuorikatu 5
4. SCHEDULE
What is Impactor and who are we?
Who are you?
Intro to business models
The Social Business Model Canvas
Wrap-up & upcoming workshop 17.2.
Mingling & sharing stories:)
5. Cooperative with a purpose of
helping change agents and impact
organizations
to find financial resources
and to transform the economy.
6. Membership Join the impact
ecosystem
Build your network
Share your knowledge
Bring your challenge to our
coaching clinic
Become an impact investor
Membership fee: 50 euros
10. Impact-driven: making saving the
world your business
(i.e. you have a social /
environmental mission)
Why financial sustainability?
Measure &maximise your impact -
often toughest “criteria”
Ourguidelines
12. “A business model describes the rationale of how an organization
creates, delivers and captures value” - Osterwalder & Pigneur
Blueprint on how to implement your strategy
Business model vs. business plan
Current reality vs. ideal situation
What is a business model?
13. Examples of business models
Fee-for-service - e.g. solar energy
Cross-compensation - e.g. Aravind Eye Care
Market intermediary - e.g. Fair Trade
Freemium
19. color code your customer segments and the
according value propositions - easier to follow
make separate canvases for separate products or
services, if they differ much
in existing organizations: make separate canvases
for current situation & ideal situation
most important: how does everything align
Tips for filling out the canvas
20. VALUE PROPOSITION
why do your customers come to you?
new? better? tailored?
how do you solve customer problems and satisfy
customer needs?
social value proposition
customer value proposition
impact measures
describe how value is created
don’t do everything - focus on few things & do them well
21. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
Aravind Eye Care System
22. BENEFICIARY &
CUSTOMER SEGMENTS
“the different groups of people or organizations an
enterprise aims to reach and serve” -Osterwalder &
Pigneur
heart of any business model
beneficiary (edunsaaja): is served by the organization,
but does not necessarily pay for products / services
different needs
different ability to pay
require different relationships
23. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
Aravind Eye Care System
25. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
Aravind Eye Care System
26. CHANNELS
Value propositions are delivered
to customers through communication,
distribution & sales channels
Interface with customers & beneficiaries
Direct / indirect channels
Own / partner channels
27. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
Aravind Eye Care System
28. REVENUE STREAMS
for what value is each customer segment willing to
pay?
sales, usage fees, subscription
fees, lending/renting/leasing, licensing, commission
advertising
each revenue stream may have different pricing
mechanisms (fixed / dynamic pricing)
29. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
“pay according to your
abilities”: the poor do not
pay (2/3 of customers),
the affluent do
Aravind Eye Care System
30. KEY ACTIVITIES
what do you do to make the aspects of your business
model come to life?
what do you need to be able to do yourself?
e.g. sales, marketing, R&D, production, customer
service
31. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
“pay according to your
abilities”: the poor do not
pay (2/3 of customers),
the affluent do
• scouting out patients
• education & training
• surgery
• R&D
Aravind Eye Care System
32. KEY RESOURCES
what do you need to carry out your activities?
the most important assets to make your business
model work
physical, financial, intellectual, human
owned / acquired from partners
33. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
“pay according to your
abilities”: the poor do not
pay (2/3 of customers),
the affluent do
• scouting out patients
• education & training
• surgery
• R&D
• hospital equipment
• doctors & support
staff
Aravind Eye Care System
34. KEY PARTNERS &
STAKEHOLDERS
who do you need to make the business model work
who do you need to involve to deliver your value
proposition to your customer and beneficiaries?
e.g. suppliers, funders, regulatory bodies,
government
funders can be identified either as partners or
customers
35. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
“pay according to your
abilities”: the poor do not
pay (2/3 of customers),
the affluent do
• scouting out patients
• education & training
• surgery
• R&D
• hospital equipment
• doctors & support
staff
• NGOs & major
foundations
• WHO
• research collaborators
Aravind Eye Care System
36. COST STRUCTURE
What costs are incurred to operate your business model?
How do your costs change as you scale up your organization?
Fixed costs: salaries, rents etc. whatever incurs even when
production 0
Variable costs: whatever varies depending on production level
Economies of scale: cost per unit decreases when production
increases
Economies of scope: cost per unit decreases when scope of
operations increases, i.e. marketing efforts may support several
products
37. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
“pay according to your
abilities”: the poor do not
pay (2/3 of customers),
the affluent do
• scouting out patients
• education & training
• surgery
• R&D
• hospital equipment
• doctors & support
staff
• NGOs & major
foundations
• WHO
• research collaborators
• equipment & materials
• salaries
• R&D
• accommodation, nutrition &
travel of patients
Aravind Eye Care System
39. SOCIAL VALUE
PROPOSITION:
eradicating blindness -->
economic productivity
IMPACT MEASURES:
• n:o of low-income patients treated
• n:o reached via screening camps
• n:o of health workers trained
--> reduction in unemployment &
illiteracy
CUSTOMER VALUE
PROPOSITION
• free / low-cost eye care
services incl. transport to
hospital
• quality & humane care
the affluent
the poor
• low-cost eye care
• “McDonald’s model”:
highly replicable &
standardized
eye camps in rural
areas, base
hospitals, clinics
“pay according to your
abilities”: the poor do not
pay (2/3 of customers),
the affluent do
• scouting out patients
• education & training
• surgery
• R&D
• hospital equipment
• doctors & support
staff
• NGOs & major
foundations
• WHO
• research collaborators
• equipment & materials
• salaries
• R&D
• accommodation, nutrition &
travel of patients
• generated from affluent
customer’s fees
• goes towards developing
& growing Aravind
Aravind Eye Care System
40. SOURCES:
Osterwalder & Pigneur (2010):
Business Model Generation
http://www.socialbusinessmodelcanvas.
com/
http://socialleancanvas.com/
43. Impact Meetup
series spring 2016
26.1. 5-7 pm: How to structure an impact
enterprise using the SBMC
24.2. 5-7 pm: Today's cooperativism & financing
cooperatives
23.3. 5-7 pm: Modelling, measuring and reporting
on your impact
3.5. 5-7 pm: Crowdfunding for impact enterprises
FOR WHOM? All impact-minded individuals:)
WHERE? Helsinki Think Company, Vuorikatu 5
44. Where can
you find us?
jenni.selosmaa@impactor.fi
kristiina.ullgren@impactor.fi
saila.kokkonen@impactor.fi
Impactor
www.impactor.fi
@impactor_fi