Ted Ladd
Net Impact Annual Conference
slides at pubs.tedladd.com
Logos for Hult, CBS, Case, CTO
Business Models
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1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Business Model Canvas
Exercise: Solar lanterns with micro-finance
Exercise: Solar lanterns with pay-as-you-go
Exercise: Community solar for health clinics
Exercise (if time allows): Micro-enterprises
Conclusion
Business Models
1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Osterwalder and Pigneur, www.businessmodelgeneration.com (2010)
Business Models
1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Maurya, A. Running Lean. (2012)
Business Models
1: Micro-finance
2: Pay-as-you-go
Problem
Solution
Customer
Segments
Constellation
Metrics
(Prioritized by early
adopters, total market
segment, and margin)
Existing alternatives
3: Community solar
Value
Proposition
Conclusion
Unfair
Govt
Competitive Regulations
Advantage
Channels
Partners
- Marketing
- Distribution
Social Networks
Harm
Benefit
- before and after
- before and after
Pricing
Revenue
Streams
Cost
structure
Resources
and
Investment
Ladd, T. “Business Models at the Bottom of the Pyramid: Leveraging Context in Undeveloped Markets”, AOM Proceedings (2014)
Business Models
1: Micro-finance
2: Pay-as-you-go
3: Community solar
Base of the Pyramid
4B @ <$2/day
1.6B
w/out
electricity
Conclusion
Business Models
1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Business Models

1: Micro-finance
Reaching the customer
 Marketing
 Distribution

Reverse route
 Returns
 Feedback

2: Pay-as-you-go
Affordability
3: Community solar
Conclusion
Business Models
1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Business Models




1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
In teams of 4-5
Sketch a Lean Canvas for ESAF
10 minutes in team
10 minutes reporting surprises, challenges,
and mitigation strategies
Business Models

1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Self Help Groups of peers
 Critical mass
 Solicit product and service providers and lenders
 Group loans, individuals use and repay
 Peer pressure to repay
Distribution
 Feedback
 Repayment
? Affordability

Business Models



1: Micro-finance
2: Pay-as-you-go
3: Community solar
Indebtedness
Customer cash flow
Continuing customer relationship
Conclusion
Business Models


1: Micro-finance
2: Pay-as-you-go
3: Community solar
Connection from phone to lantern
“Light” minutes
Conclusion
Business Models



1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Pay-as-you-go model in Lean Canvas
5 minutes in team
10 minutes reporting surprises, challenges,
and mitigation strategies


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Overlapping failure points
Distribution
Repeat customer usage
Fixed cost of IT infrastructure
Unstable cash flow for company
Business Models


1: Micro-finance
2: Pay-as-you-go
3: Community solar
More efficient in larger installations
Health clinics as critical infrastructure
Conclusion
Business Models



1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Lean Canvas for venture selling solar power
AS A SERVICE to health clinics
10 minutes for team work
10 minutes to report surprises, challenges,
and mitigation strategies
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Chicanery -> stranded or appropriated assets
Complex international loan arrangements
Lumpy capital
Independent projects undermines scalability?
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Lean Canvas for micro-enterprise models
5 minutes for team work
10 minutes to report surprises, challenges,
and mitigation strategies

Scale
 Hiring, training and distribution
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Incentives for local culture
Local market saturation
Focus for category reputation
Business Models

1: Micro-finance
2: Pay-as-you-go
3: Community solar
Conclusion
Power of business modeling
 Focus on key elements
 Ripples across elements
 Testable hypotheses for customer interactions
 Control>prediction (effectuation)

Limitations of typical business modeling
 Ignores context, culture, competition, networks
 Neglects scenario planning

Private solutions for core needs
Ted Ladd
Ted@TedLadd.com
www.LinkedIn.com/in/tedladd
slides at pubs.tedladd.com
Logos for Hult, CBS, Case, CTO
Conceptua
lized, not
launched
10%
Failed
17%
Biogas
17%
Hydro
6%
Launched,
not
profitable
23%
Profitable
50%
Solar PV
50%
Solar
lantern
27%