AALTO UNIVERSITY SCHOOL OF ECONOMICS BOP PRACTICES PROJECT

1. AALTO UNIVERSITY SCHOOL OF ECONOMICSBOP PRACTICES PROJECT Project: Packaging, mass communication and primary education practices at the Base of the Pyramid (BOP) in India, Russia, Tanzania and Brazil Aalto Team: Minna Halme, Arno Kourula, Galina Kallio, Angelina Korsunova, Sara Lindeman, Maria Lima Toivanen & Tapio Peltonen RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 1

2. Team Objectives Working method • Aalto University School of Economics • Prof. Minna Halme • Arno Kourula (proj. mng.) • Galina Kallio • Angelina Korsunova • Maria Lima Toivanen • Sara Lindeman • Tapio Peltonen • Industry expert:Niilo Pöyhönen, Stora Enso • Technology expert:Anu Seisto, VTT • Examine consumer practices in Base of the Pyramid (BOP) markets (disposable income under 5€/day) related to: • Packaging • Mass communication • Primaryeducation • Identify and describe best practice BOP business models • Describe BOP markets and their trends • Identify opportunity spaces for forest cluster • Ethnographic research in: • India • Russia • Tanzania • Brazil • BOP business model and trend analysis PROJECT: Introduction RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 2

3. PROJECT: Work packages as input for innovation work 1. Observed practices at the BOP 3. Background trends 2. BOP business models analysis 4. Opportunity spaces for the forest cluster RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 3

4. PRACTICES: Themes in observed practices Primary focus areas of practices and observations: • Packaging:Including cost, design, materials, practices, recycling and reuse. • Mass communication:Including media type, content, practices and value. • Primary education: Including content, curriculum, provider, system, education level, literacy, study and teaching practices, school supplies, facilities, food, pre- and extra-curricular activities, school travel and value of education. Secondary focus areas of practices and observations: • Numerous interesting/important themes were identified prior, during and after data gathering including poverty, daily life, household financial management, aspirations, dreams and worries, business, infrastructure, space and time, technology and adverse practices. RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 4

5. PRACTICES: Example of sharing books in schools • In Tanzania, children often study together in voluntary groups • This is partially due to lack of personal school materials and partially due to solidarity • Studying together also compensates the lack of teachers • Sharing is common practice in many areas of life in Tanzania • Questions: • What implications does this practice have from the perspective of designing study materials? • What other implications does this practice have? RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 5

6. PRACTICES: Asmare waste recycling cooperative (1/2) RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 6 • Originally established by homeless people and now a successful cooperative enterprise in Belo Horizonte, Brazil. • Goals and activities of Asmare: • Collection and sorting of recyclable trash from homes and off the streets. • Providing structure to odd jobs of many homeless ragpickers and defending rights. • Providing recyclable trash as materials to handicraft and furniture workshops.

7. PRACTICES: Asmare waste recycling cooperative (2/2) RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 7 • Asmare collects nearly 90% of recyclable waste in Belo Horizonte, Brazil. • Asmare transports most of sorted waste to São Paulo, since there are no local facilities for recycling of waste. • Sorted recycled fibre available • Lack of local smaller scale processing facilities

8. BUSINESS MODELS: Checklists RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 8

9. BUSINESS MODELS: Analyzed 14 cases Building a house one room at a time from cement State school feeding program ITC procurement hubs for farmers M-PESA - Mobile banking Nokia Money - Mobile banking Microfinance banking services over the internet Tsinghua Tongfang and developing IT skills in China Annapurna salt and decreasing mental disturbances Investments in renewable energy Improving city water efficiency Electricity, water and sanitation to slums Product for safe drinking water Primary education for children in slums Forest plantation with community involvement RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 9

10. TRENDS: BOP as an opportunity and challenge for forest cluster Trends: • We are experiencing many intertwined global trends and developments simoultaneously. Challenge: • While Base of the Pyramid (BOP) markets (< €5 / day) represent a very large market potential, at the same time humanity’s ecological footprint has grown rapidly and exceeded the world’s biocapacity. Question: • How can these trends be addressed at the same time in an innovative, efficient and effective way? Urbanization Connectedness Poverty Ecological sustainability Corruption Human development Consumption Population growth RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 10

11. OPPORTUNITY SPACES: Approach to looking at business opportunities Lack of Infrastructure Poverty Ecological sustainability Theme Lack of Space Urbanization & slums Systemic mistrust Infrastructure RE - reuse, recycle… Population growth Overcoming fakes Revaluation of Forests Opportunity space Re-Ikea for BoP Newspapers for the semi-literate Aesthetics School sanitation Protective Covers Hybrid paper-mobile book solutions Decorative papers Ideas Building materials Cold Bag Time needed to develop or address

12. OPPORTUNITY SPACES: List of identified themes, opportunity spaces and ideas RAMI BOP PRACTICES – RAMI SEMINAR PRESENTATION – 19.5.2010 12