innovation

Green not working? Try chocolate...
source:cafepress

At a loss for how to explain what I do for a living, my sister once described my work as “something to do with pyramid schemes and poor people.” I can laugh at it now (the base of the pyramid is an awful phrase for a number of reasons), but the incident highlights how contradictory most people find the combination of capitalism and doing good for the world.

Even when familiar with enterprises that use “capitalism for good”, most people generally call to mind a class of companies that fill a small, though often profitable, niche of eco- or socially-conscious consumers. By in large, growth in those markets is defined by how much you can make people care (about the planet, about people, about pandas).

There’s another class of companies, however, who may use green means, but who don’t rely on consumer sentiment about society or the environment to sell their stuff. Among these are many of the companies I have worked with in recent years, where the name of the game has been catalyzing massive new markets, primarily in the so-called base of the economic pyramid. While they used inclusive means to serve poor communities, these companies’ goals were those of growth-seeking, profit-oriented enterprises.

After five months of intense work in communities in Kenya and Brazil we've got a long backlog of stories to share. Now that we've got a short breather we thought we'd post a few. This one from Kenya came up recently when we were asked via our colleague & mentor Stuart Hart, "Have you heard of these XAccess guys?"

Actually, yes we have!

In June the BoP Protocol team headed out to the shores of Lake Victoria in Kisumu, Kenya to visit with the XAccess and KickStart folks who were modifying an innovative bicycle for the local market. XAccess is the non-profit sister of XtraCycle, maker of the world's first Sport Utility Bicycle, and KickStart, the NGO formerly known as ApproTEC, is a long time provider of enterprise enabling technologies to low-income communities. KickStart is helping XAccess to commercialize its bicycle in Kenya as the "Bigga Boda", an upgrade to the existing "Boda Boda" bicycle taxis, so named from their early days on the border of Kenya and Uganda where the taxi riders cries of "Border! Border!" eventually morphed into the "Boda Boda" of today.

"I could use a hundred people who don't know there is such a word as impossible"
- Henry Ford, Sr.

We admit having a bit of a fascination with Henry Ford, a man, who in our minds, was one of the world's greatest social entrepreneurs and enablers of the common man, who also happened to become insanely wealthy to boot. How could you not be fascinated with him? When people tell us we're nuts trying to make money working with today's version of the comman man, the 4+ billion "poor" living in the Base of the Pyramid, we point at Henry Ford and say, "He was nuts too,"and then a moment later add, "and I'm with stupid."

However, it was Ford's notorious dislike for "experts" that we find the most compelling:

For those that have followed our work here at BRINQ, our efforts with the toy industry, and our focus on discovering "Innovation in Utility", the Boston Globe has an article which has gotten us really EXCITED!!! It even starts with an example from the toy industry!

Here's a quick quote, you can find a link to the rest of the article below:

Ultimately, user-centered innovation may transform not only companies' product development processes but also business models, turning them into the providers of innovation toolkits to users and the marketers of their innovations, [MIT's] von Hippel suggests.

Innovation toolkits!! We definitely need to talk to this guy!

The other day, my foster brother Seth and I were speaking about being innovative. Seth is a lead test engineer on a certain eXcellent gaming console in Redmond, WA.

"I don't think I have it in me," Seth commented, "I can almost always figure out how things work, like noise canceling headsets for example, but I don't know how people come up with those ideas in the first place."

"Maybe that's true," I responded, "but I bet that you could be trained."

I like to tell people that creating something innovative and new is like pulling on threads until it leads you to a sweater, or even better yet, it's like gathering threads into your hands until you finally realize that you're already holding a sweater. In non-knitting terms, innovation is an organic process, involving questions and observations, and a lot of looking at the world differently. And one of my favorite guides for looking at the world differently is Barry Nalebuff's and Ian Ayres' "Why Not? How to Use Everyday Ingenuity to Solve Problems Big and Small"

In twenty years and countless adventures in growing our business, our only progress and for that matter our only interesting breakthroughs have resulted from someone asking Why not? Nalebuff and Ayres have crafted an inspiring, imaginative, informative and best of all, fun treatise that will arouse the entrepreneur in all of us. You will fly through this book, and you will never look at a problem the same way again.

—Gary Hirshberg, President and CEO,Stonyfield Farm Yogurt, Inc.