This project aimed at proposing two different social innovations strategies for Toms Shoes.

1. Siwa team memebers
FilippoCheli 876241
Silvia Conti 875410
Rossella De Santis 878012
Sara Frigerio 883736
Morteza Mahdavi Siuki 864388- Social innovation project -
Prof. Mario Calderini
Siwa Stands for Social Impact With All.
Actually Siwa is a desert oasis 300 miles from
the coast of the Mediterranean Sea.
Our motto is:
“Social impact is no longer a mirage”

2. AGENDA
1. WHAT IS TOMS’ SHOES
2. BUSINESS MODEL & STAKEHOLDERS ANALYSIS
3. FINANCIAL SPECTRUM
4. TOMS’ TOKENS: THE DYNAMICS
5. TOMS’ TOKENS: TOKENS & APP’S SECTIONS
6. TOMS AS INTERMIDIARY OF FUNDS: HOW IT WORKS
7. FINANCIAL COMPARISONS: TWO EXAMPLES
8. PROS AND CONS OF ALTERNATIVES + RISK ASSESSEMENT
9. BREAKDOWN OF PROS AND CONS
10. SELECTION: TOMS’ TOKEN

3. 1. Dual objective (social and financial)
2. Private ownership logic
3. Public or private funding Private
4. Public or private control Private
WHAT IS TOMS’ SHOES
Characteristics 3. and 4. lead to an efficiency centered configuration business
model (Fig. 2);
1. More subjection to market influence than public one;
2. High autonomy to manage internal sources;
3. Strong market legitimacy;
4. Orientation on value capture.
On the other hand:
1. Low public legitimacy.
According to the business model Clients ≠ Beneficiaries and the social impact is
automatic with the product purchase (Fig. 3).
Fig. 2
Fig. 3
TOMS is an hybrid organization (Fig. 1), more precisely an enacted one because
it was designed since the beginning as SE. TOMS is a good example of social
venture.:
Fig. 1

4. TOMS’ portfolio
BUSINESS MODEL & STAKEHOLDERS ANALYSIS
The reason of TOMS’ success is its innovative “one for one” business model.
“For every pair of TOMS shoes purchased online or at retail, the
company will provide a pair to a child in need”.
Internal
External
Firm Supply chain*
Primary
1. Employees
2. Managers
1. Suppliers
2. Commercial partners
3. Local partners
1. Customers
2. Beneficiaries
3. Supported companies
Secondary
1. Competitors
2. Local communities
3. Audit company
4. Governments
* We consider the supply chain’s actors as internal ones.
The ecosystem around TOMS is crowded of many stakeholders.
Projects, to generate social impact, are strongly blended to the type of product you buy.

5. FINANCIAL SPECTRUM
TOMS has an impact driven approach since:
1. The firm, financially speaking, does not accept a below-market return.
2. The company achieves financial sustainability through sales funding sources coming from its commercial
activities.
3. Social impacts generated are strongly addressed to underserved people of the planet. Today TOMS is trying
to tackle social issues affecting specific disadvantaged communities: barefooted children, communities in
need with access to eye care and to safe water systems, safe birth and prevention of bullying.

6. Customer
x
Double
Tokens?
No
X2
Yes
+
Support an
Additional
project
Cash
Tokens
Today the social impact generated through the purchase is univocally
blended to a specific project as shown before in the business model
explanation. Siwa thinks that customers should be also allowed to
direct, at least a part of their impact, to the project they prefer. This
reasoning led us to the first proposal.
TOMS’ TOKENS: THE DYNAMICS
The first proposal regards the introduction of a digital currency (TOMS
tokens) within a network designed for loyal customers. The design of
this solution takes, in part, inspiration from well-know business
models: Kickstarter, Cash-Back World and token-based business
models.
1. The customer downloads the App, subscribing a fidelity program;
2. For each purchase he accumulates tokens proportionally to the
expenditure amount;
3. Each purchase gives the possibility to double his tokens paying a
fee. The amount of the fee can be destined to the TOMS’ projects
that the customer prefers;
4. The costumer later on can use his tokens to get exclusive
promotions or discounts; these benefits grow proportionally to
the status reached by the customer within the gamification
process;
TOMS’ TOKENS
for fidelity network

7. TOMS’ TOKENS: TOKENS & APP’S SECTIONS
Download the
App and get
involved in
TOMS’ fidelity
network!
Digital Fidelity card
 Collection of customer
data: history of purchases,
engagement with project, ...
Wallet
 Possibility to check
your amount of TOMS’
Tokens;
 Basics analytics about
your tokens’ trend;
Catalogues and offerings
 Decide how to spend your
token on limited offerings and
exclusive catalogues:
1. Discount;
2. Customization of
products;
3. Special collection;
Maps
 Track your giving: localize
where your social impact
goes!
Get info about what TOMS
made with your purchase.
Gamification
 From basic client to
ambassador (benefits will be
proportional to the status).

8. TOMS AS INTERMIDIARY OF FUNDS: HOW IT WORKS
The Process
1. TOMS has an idea of project to tackle a social problem, which is even related to
monetary costs (fight inefficiency in communities in need).
2. TOMS proposes to a pool of private investors a contract based on Pay-by-result
method in which a minimum threshold is fixed.
3. The project is supported by the amount of funds collected from by private investors.
It is practically delivered by an external entity, the “service provider”.
4. After a fixed period, the results are measured by an external authority (audit).
5.1. If the improvements obtained are compliant with the objectives, the Government
getting the costs savings’ benefit pays the investors back the capital invested and an
interest proportional to the impact generated by the project. The payback passes
through TOMS that earns from this step an interest on the transaction.
5.2. In the case in which the project doesn’t reach the goal set, investors are not payed
back.
For the second proposal, Siwa thought TOMS as an hub for private investors’ funds to
tackle social problems. A new business unit inside TOMS would play the role of
intermediary:
The new logo of TOMS business
unit dedicated to this issue

9. FINANCIAL COMPARISONS: TWO EXAMPLES
Problem to be tackled: in Africa the “Rotavirus” provokes 2 million deaths
every year and 5 billion sick people, especially among children (<5 years) in
developing countries, bringing viral gastrointestinal. We want to address it with
the distribution of vaccines. Associated to the pain of the child, there are even
high hospital costs due to the cure that the Government pays. We opted for
this project since “Rotavirus” is mainly taken through the consumption of dirty
water, issue which TOMS cares particularly of.
Customers 10000
Note 1 Percent of customers who join the fidelity network 74%
Customers with fidelity card 7400
Note 2 Percent of active customer into the fidelity program activities 10,7%
Customers who double tokens 792
Average number of purchase per customer (yearly) 2
Average cost per single purchase $ 65,00
Fee to double tokens $ 5,00
Revenues from tokens doubled $ 7.918,00
Note 3 Percent of repurchase due to fidelity program activities 55%
Repurchases 4070
Revenues from tokens doubled $ 2.177,45
Revenues from repurchase $ 264.550,00
Total revenues for tokens doubled $ 10.095,45
Sample of African people 10000
Note A Percentage of people with access to hospitals 38%
People go to the hospital 3800
Note B Average cost for a day in hospital in Africa $ 71,00
Number of days to cure viral gastrointestinal 5
Expense for sick person $355,00
Total health care costs $ 1.349.000,00
Note C Cost of a vaccine (rotavirus) $ 8,00
Note D Other costs (transportations, stock, administrative costs, authorizations) $ 85,00
Total cost per person $ 93,00
Total cost to vaccine 10000 African people $ 930.000,00
Note E Probability of success of vaccine 70%
People go to the hospital among the ones vaccinated 1140
Cost for people go to the hospital among the ones vaccinated $ 404.700,00
Total program cost $ 1.334.700,00
Net vaccine revenues = Total program cost - total health care costs avoided $ 14.300,00
Percent return on investment 1,1%
Note A:
- https://www.google.it/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwiNlpjoxvXXAhXE
- https://data.worldbank.org/indicator/SH.MED.BEDS.ZS
- https://data.worldbank.org/indicator/SH.STA.ACSN?end=2015&start=2014
Note B: https://www.ncbi.nlm.nih.gov/pubmed/17304394
Note C: https://en.wikipedia.org/wiki/Rotavirus_vaccine
Note D:
- https://openknowledge.worldbank.org/bitstream/handle/10986/6610/461810PUB0Box3101OFFICIAL0USE0ONLY1.pdf?sequence=1&isAllowed=y
- https://openknowledge.worldbank.org/bitstream/handle/10986/13585/658300WP0Vacci00box365730B00PUBLIC0.pdf?sequence=1&isAllowed=y
Note E: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3303647/
Note 1: http://www.nielsen.com/it/it/press-room/2016/retailer-royaly.html
Note 2: http://dati.istat.it/Index.aspx?DataSetCode=DCCV_AVQ_PERSONE1&Lang
Note 3: http://www.nielsen.com/it/it/press-room/2016/retailer-royaly.html
Opportunity: in Italy the 74% of people join a fidelity network with the
purpose to have products at discounted prices, a partial reimbursement of
expenditure or discount coupons. Often, the loyalty program represents the
reason to continue to attend the store and customers spend more and
increase the frequency of purchase in presence of these kind of initiatives. The
creation of TOMS fidelity network can allow the company to better exploit this
new market opportunity.

10. PROS AND CONS OF ALTERNATIVES
PROS CONS
1. Complex and expensive projects
in terms of number and diversity
of involved organizations and
legal arrangements
2. Potential difficulties in finding
investors
1. Possibility to run project oriented
to tackle social issues
independently from the one for
one business model
2. Gives to TOMS the possibility to
boost prevention and innovation
3. The risk is on the behalf of the
investors
1. High relevance to the peer to
peer approach
2. Direct tracking of the social
impact
3. No threshold to start the project
4. New technologies introduction
5. Possibility to collect data on
customers to profile them
6. Network effect exploiting
1. Risk to not reach the critical mass
of user
2. Risk of the investment is on the
behalf of the TOMS
3. Customers might be not familiar
with the platform technologies
RISK ASSESSMENT
The major risk about the TOMS Tokens’ proposal is
to not reach the critical mass (number of active
users) to make the network work. A consistent
number of registrations and downloads is required
to justify the investments in the new platform made
totally by TOMS and to make the circuit of tokens
efficient and interesting. The dimension of the
network represents also a good proxy of the social
impact generated. Siwa team thinks that the
introduction of digital tokens doesn’t represent a
risk itself because market is enough mature to
accept this concept. On the other hand the platform
must be user-friendly in order to not disincentive its
usage.
For “TOMS as an intermediary of funds” the main
risk is represented by the necessity to have a great
rate of success in projects in order to maintain
current investors and to catch new ones. This
option might imply specific competences and
managerial skills that nowadays are not so close to
TOMS’ core business. Differently from the first
proposal, in this approach TOMS doesn’t make
personally investments (money invested come
from private investors) and this means having no
risk in terms of cashflow and liquidity.

11. Funds collected magnitude (monthly) 10k€ k€
Public legitimacy Low High
Potential social impact
Time to see the results Long Short
TOMS’ decisional autonomy
Duration of projects Fixed Flexible
Most powerful stakeholder Private Investors Customers
Customer engagement  
Customer intimacy  
Peer to peer approach to social impact -
Impact measurement complexity Low Medium
Alignment with the current core business Low High
BREAKDOWN OF PROS AND CONS

12. What about the future of TOMS’ tokens?
Open the platform to other social enterprises and connecting customers inside would
create both a “real” social network and a platform for social digital tokens.
In this environment, users invest their tokens to:
1. Buy products;
2. Support projects;
3. Vote for initiatives in a P2P ecosystem.
Users earn social tokens in two ways:
1. Exchange for money;
2. As a percentage of the purchase.
SELECTION: TOMS’ TOKENS
Building up a fidelity network, with the possibility of tracking
customer’ social impact generated, the most critical point within today
TOMS’ business model will be faced: public legitimacy.
In fact, in addition to the collection of funds, implementing this idea
means to:
1. Boost the intimacy with customers, which nowadays represents
the key for a successful social business ;
2. Create higher awareness around the social impact carried out by
TOMS’ projects;
3. Make customers active players in TOMS’s ecosystem;
4. Allow to profile customers, opening interesting new possibilities
for the company.
Since the very beginning,
customers have been the real
engine of TOMS.
This relationship has to be
kept as strongest as possible.
Due to that, Siwa team
considers the TOMS’ token
project the most interesting.