NETWORK BASED BUSINESS MODEL INNOVATION TARGETING THE BOP MARKET

Jacob Ravn, Martin Kroghstrup Nielsen, Peter Lindgren

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

Abstract

Through innovation of products, process and business models targeting the needs of 4 billion poor

people living at "the base of pyramid" (BoP) (Prahalad & Hart 2002) in developing countries the

private sector can actively support poverty alleviation and at the same time reach new untouched

market. - A market is estimated a value of 5.3 trillion US$ (Hammond, Kramer, Tran, Kratz 2007).

A number of researchers has dealt with the BoP - market potential and not least tried to understand

how to penetrate this apparent blue ocean. Two distinct lines of thought when targeting BoP markets

in developing countries seems to show up in the literature:

The technological line - exemplified by the - exemplified by the Life Straw business model - a high tech

"straw" consisting of 12 chemical filters to purify water - an example of technology driven

innovation to meet the BoP demands for clean water (Kandachar & Halme 2008).

The market and customer line - exemplified by soap producers trying to penetrate the BoPline - exemplified by soap producers trying to penetrate the BoP

market through product adaptation selling soap in smaller packages (Hart & Christensen

2002, Prahalad 2006).

Based on the case study on access2innovation (www.access2innovation.com) this paper discuss a

upcoming new strategy within the BoP paradigm that lies within a bottom-up driven public-privatecivil-

society BoP approach - as network based BoP innovation potentially could open new

- as network based BoP innovation potentially could open new

possibilities to product and service development to the BoP market.

Original languageEnglish
Title of host publicationProceedings of the 10th International CINet Conference : Enhancing the Innovation Environment
VolumeCD-rom
PublisherContinuous Innovation Network
Publication date2009
Pages838-850
ISBN (Electronic)978-90-77360-12-5
Publication statusPublished - 2009
Event10th International CINet Conference - Enhancing the Innovation Environment - Brisbane, Australia
Duration: 6 Sep 20098 Sep 2009
Conference number: 10

Conference

Conference10th International CINet Conference - Enhancing the Innovation Environment
Number10
Country/TerritoryAustralia
CityBrisbane
Period06/09/200908/09/2009

Keywords

  • Business model innovation
  • network
  • BoP Market

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