Posts Tagged ‘social innovation’

A Precursor for Systems Design and Social Change from Finland

Sitra, the Finnish innovation fund, has released an excellent analysis and work plan for systemic change at scale – how to change the national mindset to become a society focused on sustainability and wellbeing.

I remember noting Finland’s leadership in systems design and strategic planning back in 2007 during our Cox Europe Mission to observe multidisciplinary creativity in business and higher education. One of the reasons, I still believe, why Helsinki became a World Design Capital.

This report considers the circular economy (or, REculture as I’ve often called it). While the whole document is entirely the work of Sitra, one cannot help but recognize the contributions made by Doblin, the pioneer of design planning back in Chicago. After all, all of us who were taught by Larry Keeley were introduced to the 10 types of innovation  page 44).

This gives me hope, as my team and I start exploring the method for triggering systemic change for an entirely different kind of complex, adaptive system – that common in the developing world context. This means that we can draw upon the lessons we learnt back in school and then seek to evolve them for the disparities in the operating environment.

Unlike Finland, where there is high trust in the system, and things run rather smoothly, even after the worst blizzard, the average rural market town in East Africa has unreliable and inadequate infrastructure, higher mistrust in systems, and almost no credible sources of historic data for any kind of trends analysis much less an easy and affordable way to monitor and evaluate anything less than highly visible (mobile phones) gross changes in the ecosystem.
sitraThus, while we can be inspired by this straightforward roadmap for the Finnish context, I already know that our progress will not be as simple or linear. Most likely we will have a lot more exploration and discovery, such as mapping the landscape, as well as needing to adapt our approach in conditions of greater uncertainty where planning is a challenge, and preparation means survival.

As a Finnish entrepreneur, I’m grateful for this contextual opportunity to be inspired by this living example even as I proceed further with my own work.

People, Pesa & Place:New lenses for design’s perspective on social & economic development

ideo model

This original Venn diagram visualizing the sweet spot of innovation success is a familiar one, with as many variations as there are practitioners. One of the most common is the one below, where business, people (or, as often, design) and technology replace the human centered qualities of viable, desirable and feasible.

csm_HPI_School_of_Design_Thinking_-_Innovation_en_a0f1b067ef

I’ve used them both for years, particularly the latter, evolving it incrementally in the project for the Dutch govt where we looked at barriers to adoption of new agricultural techniques (technology) introduced in international development programmes.

Picture1

Yet, I still struggled with this framing when actually considering solutions for programme design and development, or rather, any  products and services meant for the poor in the developing world.

Innovation, this Venn Diagram said, happens at the intersection of the attributes of viable, desirable and feasible. A solution that met these criteria would have greater chances of success. This made sense and it still does.

However, when it came to solutions meant for the lower income demographic, particularly where the majority were managing on irregular, often unpredictable, income streams, from such activities as informal trade and subsistence farming, there were additional issues to be considered. These were often critical to the success or failure of the newly introduced innovation.

For instance, inadequate infrastructure is a fact of life. Whether is variability in electricity supply in the urban context or lack of it in the rural. Things we take for granted in the operating environment in which these lenses were first framed – pipes full of running water, stable and reliable power, affordable, clean fuel for cooking, credit cards and bank accounts – are either scarce, inadequate or unreliable for the most part.

Feasibility, thus, takes on an entirely different meaning in this context. Each location or region (place) may have different facilities. Launching a service in Kenya or Tanzania, even for the most rural and economically challenged, means we can think of using mobile money solutions in the business model, while a similar service in India would have to be designed to adapt to the local context. On the other hand, India has an extensive postal system as well home addresses, while this is still a barrier to delivery in many African locations.

Similarly, the viability of a concept, in this context, must look beyond just the conventional definitions of business, business model or marketing. The embedded assumption here is that a marketplace already exists, with all the support services, information flows and distribution networks.

Further, the current version of this framework, does not offer cues to the research and design team to look for, and take into consideration, elements such as cash transactions, cash flow, lack of formal financial instruments, seasonality, and a myriad other underlying reasons that drive preference for payment plans such as pay-as-you-go or credit based on future harvests.

And as we all tend to promote these diagrams as a means to anchor our explorations and discovery process towards identifying the design drivers for innovative solutions, it seemed to me that we needed more obvious cues to signal that these issues not only exist, disparate from what we may be accustomed to, but also need to be clearly and realistically described. There is far too much tacit knowledge and too many critical assumptions embedded in the current process.

LensUCSD_EFL_26May2015

This diagram is my prototype of the next generation of the original Venn Diagram, where the attributes of the lenses have been interpreted in the context of the difference in operating environment. While it has emerged from a focus on the erstwhile Bottom or Base of the Pyramid or the poor – both of these terms are anathema to me when referring to people – I believe that it might very well make sense to use it for a wider range of incomes and consumer segments, particularly in the African marketplace.

People, of course, does not change from the original, and desirability – that is, creating something that will resonate with them – permits us to lower as many barriers to adoption and minimize the dropout rate. This element came to fore in the Dutch project where the question posed was related to the sustainability of donor funded programmes to effect positive change after the funding ends.

Place replaces Technology, as a lens through which to consider the feasibility of a solution. Furthermore, the benefit of this is that it opens up the framing of the solution space, away from technology per se, and lets us consider a broader range of interventions. Technological solutions may be only one factor, and not a given, as the current framing assumes from the outset.

Pesa is the word I’ve chosen to designate viability. It means money in more than one language across the developing world and thus implies more than just the marketplace which may or may not exist in the formal sense assumed in the first generation diagram. In the context of new products and services, it can cover all aspect of the business model including revenue generation, payment plans, pricing and timing of introduction. And in the context of programmes, it brings to the fore the need to look at means for economic impact, and, uncover a way to measure this impact. Irregular income streams tend to make it difficult for people to know what their monthly income may be or whether, this week, they’ll have that mythical $1.25 or $2 or $5 to spend today.

I look forward to your feedback on this and will be writing more on the diagram separately pertaining to both innovative products and services for the emerging African consumer market as well as a framework for social design innovation for the economically challenged.