Fortune at the bottom of the pyramid

FORTUNE AT THE BOTTOM OF THE PYRAMID

C. K. Prahalad’s

CONTENT

Concept of BOP Market at BOP Products and Services for BOP Global Opportunity Ecosystem for Wealth Creation Reducing Corruption Developing Social Transformation

CONCEPT OF BOP

BOP: Bottom of Pyramid

Concern for BOP

Big Questions:• Why can’t we do something for BOP?• Why can’t we mobilize the investment capacity of

large firms with the knowledge and commitment of NGO’s and the communities that need help?

• Why can’t we co-create unique solutions for BOP?

Bigger Question:• What is the solution for all these questions?

MARKET AT THE BOP

•Poor are not victim or burden•There is a large market opportunity at BOP•How?

• MNCs biggest mistake• New growth opportunity for MNC• MNC must become an integral part

of the work at BOP•Dominant Logic

MARKET DEVELOPMENT IMPERITIVES

Create the capacity to consume 3 Basic Principles:

Affordability Access Availablility

Need for new goods and services Dignity and choice Trust

BENEFIT TO MNCS

4 to 5 billion underserved population

13 trillion PPP Large potential BUT…

Need for innovation

NATURE OF BOP

There is money at BOP

BOP accepts advanced technology ( ITC e-Chaupal)

BOP Market is connected (Grameen phones, Bangladesh)

Access to BOP (HLL, Shakti)

PRODUCTS AND SERVICES FOR BOP

Philosophy of developing Products and Services for BOP Twelve Principles of product innovation:

1. Price-Performance (Reliance Monsoon Hungama)2. Innovation: Hybrid (HLL Iodized Salt3. Scale of Operation (Serving 1.5 billion across the border)4. Identifying functionality (Jaipur Foot)5. Sustainable Development (Resource Utilization)6. Process Innovation (Arvind Eye Care)7. Deskilling of work (Peru, Cemex)8. Education of customers (HLL, Handwash)9. Designing of hostile infrastucture (ITC e-Chaupal)10. Interface (Creative interface Design)11. Distribution (ICICI e-banking, ATM, Rural Banking)12. Change in conventional wisdom in delivery of goods and

services

BOP: GLOBAL OPPORTUNITY Engaging BOP Local Growth Opportunities

(S curve & I curve) Local Innovation and

Global opportunity BOP Solutions for

developed markets Lessons for MNCs from

BOP Markets: Capital Intensity Sustainable Development Innovation

Costs of Managing Learning to Live in a

Network of Relationships

ECOSYSTEM FOR WEALTH CREATION Market Oriented Ecosystem:

Micro Enterprises Small and Medium

Enterprises Cooperatives Large Local MNC firms NGO

Ecosystem for Developing Countries (HLL)

Learning the Sanctity of Contracts ((HLL, Shakti Amma)

Reducing Inequalities in Contracts (ITC e-Chaupal)

Building Governance Capacity Among the poor (Bank of Madura, ICICI)

REDUCING CORRUPTION

Concept of TGC Building TGC ( Andhra Pradesh e-Governance

Story, e- Seva)

DEVELOPING SOCIAL TRANSFORMATION

Social transformation Breaking down communication barriers BOP consumers upgrade Gaining access to knowledge Identity for the individuals Women are critical for development Evolving checks and balances

CONCLUSION

The real test: From the Pyramid to the Diamond

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