How you phrase the question will depend on where globalization goes. How will we get there is keynote speaker, CK Pralahad’s, focus.
There is evidence that poverty leads to ecological damage. Conflict and poverty are related. Poverty is about dignity. 3 to 5 billion people are underserved by the organized sector. We need to be innovative and entrepreneurial. The public sector has made significant effort within the notion of “one solution”. Civil socieity looks for social justice. Philanthropy has its own role. Business is not going to do it alone where others have failed. Giving up our idealogical stances is what will bring all of these sectors together.
Everyone should have the benefits of the global economy: be able to enjoy world class (high standards of quality) products (example, McDonalds) and services, and create platforms of opportunity for every person as a consumer and as a producer to chose the products they want and have the finances to participate as a micro-producer.
He focuses on 4 industries to show how this will happen :
Connectivity – changes the asymmetry. 3-5 billion people will be connected by PCs or cell phones. See the pictures of a young man taking vegetable orders, another selling family crafts, a tire repairman who gets customer calls. This is the power of information.
Access to money – credit, savings, micro-insurance. At the bottom of the pyramind 20 – 50x. Coin-operated, direct distribtution commerce (shampoo, aspirin, etc.) is possible. becoming locally responsive and use global standards at the same time will lead us to researchable questions about democratizing commerce. Consumption at the bottom of the pyramid leads to livelihood enhancement.
Energy – becoming locally responsive
Good health care – The delivery system in India is an example he uses since there are problems which we all understand. First, the market is large – enormous numbers of diabetes patients. Travel is needed to get medical attention so the cost of care is time and money intensive. The motivation for innovation is large volume so solutions must be scalable. Distribution must allow for local access.
Price minus profit must address the challenge cost (what the consumer can afford). He asks the audience to chose a price point. In the US cataract surgery costs $3000. The target price for cell phones in India is the cheapest per minute in the world.
The innovation sandbox asks us to think about new pricing models. Looking at prosthetics, Jaipur Foot video shows the creation of a new limb for an Indian man at the cost of $25 as compared to $12,000 for a similar item in the US. The approach is different in India for marketing, patient acquisition, pricing. But the quality of the healthcare products and services are world class. There is a method for us to use to participate in this market.
Organizing people for economic benefit is shown through the example of a milk cooperative. 6.4 million kg per day is produced daily by these women. They are co-owners.
Additional examples highlight, the marketplace ecosystem at the micro-level and its relationships with regional and global capacity building. There are 630 thousand self-help groups organized at multiple levels (village and district). Purchasing power for equipment, negotiating services, collaboration at the level needed provides bottom-up decision making and the need for new value propositions from providers. This is a velcro model. It comes together as needed.
Our forgetting curve is larger than the learning curve of those in the emerging markets. Bringing together scholarship and research, passion, humility are the requirement.
How will we answer the question: “Do these children deserve our attention?”