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Introduction

Acara: Introduction

Acara was created to tackle some of the largest challenges facing the globe, by connecting individuals and organizations with an interest in creating practical business solutions.

Goals: • Social Change – Focus on the Big Issues

– Water– Food– Health (medicine, nutrition, hygiene)– Energy– Education

• Business Solutions – Lessons/Best Practices learned from Industry

– Self-sustaining (support through profitability)– Self-growing (single business, franchise, copies, etc)

Acara is part of IonE/Minnesota

Acara’s Mission

• Acara’s mission is to develop practical business solutions that address global societal challenges.

• This mission has two components• Acara education goals

– Educate and inspire the next generation of leaders– Bringing the classroom into real global challenges, that require all their

academic skills plus teamwork, customer research, multi-cultural understanding and real world deliverables.

– Partner with universities and university funders

• Acara impact goals– Implement the best ideas– Partner with funders, NGOs, incubators, investors.

Programs

Acara Challenge (AC)• Develop practical social business models

Sales for Social Impact (SSI)• Develop sales plans for existing social business

products or services

Summer Institute / Proto-businesses• Incubate the best

Acara Corps Fellowships/Interns• Give Acara alumni an opportunity to continue

to contribute

Online Presence • Build a community

ACARA CHALLENGEPROGRAM OVERVIEW

The Acara Challenge

Goal to create viable businesses while providing

participating student teams with real-world commercialization opportunities.

Inputsan initial problem space I background and resources I

framework I mentor network I exposure to industry and to venture capital.

Outcomethe anticipated outcome is a range of business

concepts that are ready to be brought to “realization” by the students on the teams or by other interested parties.

2011 – Food and Water Security

• Food and water security are vital issues for global peace and security.• According to the 1996 World Food Summit of United Nations:

– "Food security exists when all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. “

• Water security is an analogous situation, namely that people should have at all times, access to safe and clean water. According to the UN, 900 million people globally do not have access to clean water.

• The Challenge would be to address a problem related to food and/or water, and could be related, but not limited, to the production, transport, marketing/selling, processing, storage, treatment or consumption of food and/or water.

2011 – Food and Water Security

• Production: Irrigation, seeds, pest control, fertilizer, harvesting• Transport: getting crop to market or water to consumer• Marketing/selling: how is it sold, to whom, where, middle men• Processing: how is raw harvested crop converted to something else, or how

is water treated.• Storage: Storage of food or water by end consumer or someone else in the

value chain.• Consumption: How do consumers buy it, prepare it.

• Poor nutrition, lack of enough food or water, wasteful practices, poor infrastructure, and poor market information, all contribute to lack of food or water security.

US Universities, 2011

• Arizona State University• Cornell • Duke • Roosevelt University, Chicago• University of Hartford• University of Minnesota

International Universities, 2011

• India Institute of Technology – Roorkee • KJ Somaiya Institute of Management, Mumbai• Kalinga Institute of Industrial Technology (KIIT), Bhubaneswar • TERI University, New Delhi• Vellore Institute of Technology (VIT), Vellore

• Tecnológico de Monterrey, Mexico

What do Teams do?

• The deliverable is a business model and plan• Teams are comprised of students from two

universities (one US, one international)• Research a community, close to the international

university, with respect to the Challenge topic• Identify a problem• Create a solution, one that you can create a financially

sustainable business model around• Best teams will receive funding and invitation to

Summer Institute in India

Acara Challenge Emphasis

• Acara focuses students on some basic, practical questions:– What is the problem?– What is your solution to the problem?– Who is your customer?– Why will they buy it?

• These seem simple, but answering them well is hard.

A Business Model Template

Key Activities

Key Partners

Key Resources

Cost Structure

Customer Relationships

Customer Segments

Value Proposition

Revenue Streams

Channels

Together, the nine building blocks make up a “canvas” to help you plot out your business model. Acara focuses students on the four in the top right.. Source: Business Model Generation, written by Alexander Osterwalder, Yves Pigneur et. al

Efficiency Value

Judging process

• Midterm presentation – to Acara to get feedback, NOT part of competitive results.

• First round presentation – each team will present to a panel of judges (online) during the week of May 2.

– Written business plans are due on April 29.– Presentation is 20-25 minutes.

• Second round presentation – Selected finalists teams (up to 8 teams) will present at the final presentations May 16, at University of Minnesota, St. Paul.

– Revised written business plans are due on May 13.– Teams will send one team member.– The judges provide feedback and eventually decide which teams move

on to the Summer Institute

Judging Criteria

• What’s the Problem?• What is your solution?

– What is your value proposition?

• How do you make money?– Who is your customer?

• What is the social impact?– What is your social value proposition?

• How well did you communicate your ideas?

After the Challenge

• The four top teams will be awarded a grant of USD $5000 each and an opportunity to participate in the University of Minnesota Acara Summer Institute.

• The UMN-Acara Summer Institute will be held in TERI University, India in June-July 2011.

– Some classroom time, most time in the field, working on business plan.

• Introductions to potential funders

UMN- Acara Summer Institute

Goal to transition best business plans from school

project to a proto-business ready to fund.

InputsBusiness plans I committed team members I

framework I mentor network I exposure to industry experts and venture capital I angel investors

Outcomethe anticipated outcome is a “fundable” plan and

a team ready to launch.

“WHAT DO WE ACTUALLY DO?”

What do Teams do?

• The deliverable is a business model and plan• Teams are comprised of students from two

universities (one US, one international)• Research a community, close to the international

university, with respect to the Challenge topic• Identify a problem• Create a solution, one that you can create a financially

sustainable business model around• Best teams will receive funding and invitation to

Summer Institute in India

International Partners

Research: Identifying the Problem• Research one of the themes• Understand the environment: culture, economy,

climate…• Obtain insights from real people through field visits:

observing their behavior, talking to them– This will be conducted by the teams in India & Mexico

• Obtain general and statistical information through secondary research (online, libraries)

• You will need to understand the technical aspects of the problem as well as how people perceive it

Brainstorming & Ideation

• Working with your teammates, you will come up with many possible solutions to the problem you have researched.

• You will refine your solutions into what you see as a viable business idea.

• Keep your team mentor involved.

Business model and plan

• What is the problem you are addressing?• What is the value to the customer, value proposition?• How will you make money?• What is the expected social impact or social return on

investment?

Past Project Example - myRain• Drip Irrigation is gravity fed and delivers

directly to the root system. This technology ensures lower strain on the water table, less money spent on irrigation and higher yield. This team from IIT Roorkee and University of Minnesota, plans to partner with IDEI (International Development Enterprises, India) for manufacturing and distribution and handle Sales and Marketing by themselves.

• Status: Had a US team member in India, set up eight farmers with training and drip irrigation kits. Working on hiring an India operations manager. Acara angel investors have committed $10K USD to get team to next step.

All previous business plans on the Acara Institute web site.

SOCIAL VALUE IN YOUR BUSINESS PLANS

Social Ventures

• A Social Venture or Social Entrepreneurship seeks to use business skills to solve social problems

• They seek to be sustainable but measure success not [only] in monetary but in social terms

• Can be for-profit, non-profit [501(c)3 in the US] or co-operative business venture

Outputs

• Outputs are the direct measurable output of the social business; for example, the number of products sold

Source: Catalog of Approaches to Impact Measurement. Assessing social impact in private ventures Version 1.1. Rockefeller Foundation, 2008.

Outcomes

• Outcomes are the ultimate changes one is trying to make in the world, as well as the intended and unintended side effects of the business. For instance, improved nutrition or decreased incidence of water-borne diseases.

Source: Catalog of Approaches to Impact Measurement. Assessing social impact in private ventures Version 1.1. Rockefeller Foundation, 2008.

Social Value

• Social Value or Social Impact refers to the portion of the total outcome that happened as a result of the company’s activity, above and beyond what would have happened anyway. The impact may not always be positive.

3 Broad Categories of Impact / Outcomes

• Economic: Financial impacts on parties other than the owners or investors of the enterprise, and other than the financial performance of the business itself,

– Changes in the income or financial stability of employees or community members

– Changes in public expenditures– Providing local jobs

3 Broad Categories of Impact / Outcomes

• Social: Impacts other than economic or environmental experienced by stakeholders of the enterprise

– Changes in physical and mental health– Changes in quality of life – Changes in attitudes or behaviors.

3 Broad Categories of Impact / Outcomes

• Environmental: Impacts having to do with the status of natural resources and ecosystems, such as

– Changes in carbon emissions related to climate change– Changes in water quality – Changes in biodiversity

RESOURCES PROVIDED

Outside Help For Each Team

• Each team will have access to several types of outside advisors who are eager to help with various aspects of Business Plans

• It is YOUR responsibility to engage them when you feel that it is necessary

• They have signed up because they want to help, so do not hesitate to ask!

• The Student Handbook has more guidelines on working with advisors

Team Mentors

• Each team will be assigned its own mentor. Mentors are experienced business people who can provide valuable outside perspective at all stages of your plan

• Mentors will provide general guidance on your approach, Sales Plan, etc.

• Contact can be in person or via phone or e-mail• Teams should check in regularly (weekly is

recommended) with your mentor; it is YOUR responsibility to contact them

Subject Matter Experts (SMEs)

• SMEs are specialists in one (or more) particular field(s)

• They will be available on an as-needed basis, based on their area of expertise

• They are a shared resource available to all teams

Student Handbook

Other Student Resources

• Online Curriculum • Program Managers • Lecture Series – Thursdays, 9:30 Central time• Strongly recommend this book.