RDVP Seminar: Jim Koch (11/3/2004)

Jim Koch, from Santa Clara University, spoke about the Global Social Benefit Incubator. Similar in goals to the RDVP, it uses a slightly different method. It focuses on projects that have already been proven effective in one instance, then helps the visionary scale it up. The primary vehicle is an intensive 2-week training program, with mentorship and an ongoing community of social entrepreneurs. During the "boot camp" they write a business plan.

The participants are selected from among the recipients of the Tech Museum Laureates (a prize co-founded by Santa Clara U's Center for Science, Technology, and Society) and two other similar competitions (one in Europe). Most of the winners (80%+) come from NGO's, philanthropic foundations, and social entrepreneurs. Very few come from multi-national companies.

Jim showed some brief video clips of past award winners:

• Equal Access: for rural learning, provided digital satellite radios and local content
  
• Eatset: A filter for transfusing blood back into the patient that lost it
  
• Technology for Sustainable Businesses in Rural Villages: Kilns to make bricks
  

Then he focused on some of the striking trends and statistics. One was the per capita GDP of Europe from 1 A.D. to 2000 AD. It bumped along doubling from about $1,000/person to $2,000 from 1AD to 1850 AD, then shot up by another factor of 15 from 1850 to 2000. He attributed the inflection point to the introduction of technology for aggregating resources, and wondered how we could make that technology deployable world wide. Until we do, half the world lives on $2/day; 1/3 has no reliable electricity, 1/6 of the world has 80% of the resources and 15% of the wealthy nations own effectively 100% of the intellectual property. The next 50(?) years will see a population growth of some 2B people, but only 50M of that will come in the "developed" world (Dipak pointed out that stat changes radically if China and India achieve developed status). The world is working toward the UN millennium Goals, but still has a long ways to go.

He noted the following recurring themes from Tech Award winners:

1. Market Failures: Companies are not seeing the market at the BoP and the poor are paying too much for their goods
   
2. Creating Value: Services like Education, Health, Farming information, E-Business, E-Government and Entertainment drive adoption of ICT
   
3. Social Benefit Entrepreneurs: Have empathy for the social context, and see pockets of innovation
   
4. Rethinking technology: emerging technologies like wireless, low cost devices, community access, LED's, etc.
   

Leadership in these endeavors is split among business, government, NGO's, and universities. The new markets demand investment, and new models of capital efficiency--both for the buyers, such as shared access) and the sellers (high quality goods produced at low cost sold in high volumes). Innovation is not purely (technical) invention. It typically requires a systems view, incorporating people and money.

Jim is working on a web-platform for sharing information and figuring out how to develop community norms like reciprocity and trust. He mentioned the challenge of dealing with the World Bank--a huge labyrinthine organization. The HP e-Inclusion effort is one of the most progressive, but even it is feeling the pressure to show a viable model. The Corporate Philanthropy or Social Responsibility groups are limited, to really succeed and scale, you need the buy-in from the business units, too. Dipak mentioned that IBM has invested quite a bit in disaster relief software, both products and software development effort.

Parting shot: Jim mentioned that one of the GSBI participants from India who had to walk 10 miles to check his email pointed out the absurdity of an elevator pitch in his culture.

We don't have elevators, but we have plenty of time to talk about ideas.