Professor Stuart Hart, Keynote June 2, 2011

Summary

The speaker discusses an ongoing transformation akin to the 19th-century industrial revolution, emphasizing the pivotal role of corporate philanthropy in driving change. They argue that traditional philanthropy alone cannot solve global issues, but strategically invested corporate funds can catalyze innovation. The speaker calls for a shift towards inclusive models, leveraging clean technology to lift the base of the pyramid and advocating for 'embedded innovation' that involves co-creation with marginalized communities for sustainable business development.

Takeaways

• 🌟 We are in the midst of a significant transformation that will change how we conduct business, similar to the shift to the industrial model in the 19th century.
• 🔍 This transformation has profound implications for the mission, vision, core strategies of companies, and the role of philanthropy.
• 💰 The scale of investment needed to effect change is in the trillions, not billions, indicating the magnitude of the challenge ahead.
• 🚢 The analogy of bailing out a boat with a teaspoon is used to illustrate the insufficiency of current philanthropic efforts to meet the scale of global challenges.
• 🔄 Despite the paradox, philanthropy is more important now than ever, but its effectiveness hinges on how funds are utilized and the role it plays.
• 🌱 There's an opportunity for corporate philanthropy to act as a catalyst for change, particularly in facilitating and protecting experimental spaces and pilot projects.
• 🌍 The human population's growth and its impact on the planet underscore the urgency for fundamental changes in environmental and social practices.
• 📈 The concept of 'base of the pyramid' suggests a shift towards more inclusive models, which is key for the future of clean technology and social upliftment.
• 💡 The idea of 'green leap' is introduced, which involves marrying clean technology with value-oriented strategies and starting with piloting in underprivileged areas.
• 🔄 The concept of 'reverse innovation' or 'frugal innovation' is highlighted as a potential path forward, emphasizing the need for new approaches to innovation.
• 🤝 The importance of co-creation is stressed, where companies engage with local communities to build trust and develop business concepts together, starting from the ground up.
• 🛠 The need for new skills in business development, particularly in engaging with marginalized groups and establishing deep dialogues for mutual learning and innovation.

Q & A

What is the transformation being discussed in the script?

The transformation discussed is a shift in the way business is conducted, akin to the move to the industrial model in the 19th century, with fundamental implications for company strategies and the role of philanthropy.

Why is the speaker suggesting that philanthropy is more important now than ever before?

The speaker argues that philanthropy is crucial today because of the unprecedented scale of global challenges that require more than just billions but trillions of dollars in investment.

What is the paradox the speaker refers to regarding philanthropy?

The paradox is that while philanthropy is extremely important, the scale of the world's problems is so vast that traditional philanthropic efforts alone cannot solve them.

What role does the speaker see for corporate philanthropy in this new era?

Corporate philanthropy is seen as a catalyst, facilitator, and enabler, particularly in supporting experimental spaces and pilot projects that can lead to transformative change.

What does the speaker mean by 'base of the pyramid'?

The 'base of the pyramid' refers to the large, low-income market segment that has been traditionally underserved and represents a significant opportunity for inclusive business models.

What is the 'green leap' concept mentioned in the script?

The 'green leap' concept is about combining clean technology with value-oriented production strategies to create new, environmentally friendly solutions, starting with the base of the pyramid and then scaling up.

What is the speaker's view on the current approach of Western companies to new markets?

The speaker criticizes Western companies for having a closed value proposition, where they market and sell predetermined products rather than co-creating solutions with the communities they aim to serve.

What is the term 'co-creation' in the context of the script?

Co-creation is the process of developing products or services collaboratively with the target community, leveraging the company's core competencies and the local knowledge and needs of the community.

What is the importance of 'embedded innovation' as discussed in the script?

Embedded innovation is important because it involves deep engagement with marginalized groups, building trust, and creating business concepts that can scale from the ground up, ensuring sustainability and relevance.

Why does the speaker emphasize the need for direct personal relationships in business development?

Direct personal relationships are essential for deep dialogue, two-way knowledge exchange, and the co-creation of business concepts that neither the company nor the community could have developed independently.

What challenges does the speaker identify in the current business development approach?

The speaker identifies the lack of imagination in commercialization strategies and the neglect of the needs of the two-thirds of humanity that have been left out, which represents a blind spot in the clean tech community.