Post on 22-Nov-2014
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Blue Innovation
Blue Innovation
Blue Innovation
What is Blue Innovation?
Our interpretation is:
Blue≒ Blue ocean strategy = Creating unknown market space
We propose brand-new ideas for innovation
Blue Innovation
What is Blue Innovation?
1. Create the products and services from scratch in order to satisfy the specific needs in developing country
2. Products and services introduced to other markets which includes developed countries
Reverse Innovation: Create Far from Home, Win Everywhere, Indra K. Nooyi
Blue Innovation
Example 1:Casas Bahia Brazilian retail business
Income of Hose hold(R$; Month)
Class Number(Million)
Number of Hose hold(Million)
Number per house hold
10,000 〜 A 7.3 (4%) 2.5 2.9
4,000 〜 10,000
B 21.6 (12%) 5.4 4.0
800 〜 4,000
C 48.9 (28%) 12.6 4.0
400 〜 800 D 44.2 (25%) 9.4 4.7
0 〜 400 E 54.3 (31%) 7.6 7.1※Population of Brazil =176 Million (2002)□ ・・・ Bottom of Pyramid(BOP)
84%
1R $ = 0.427 US $
Economic ladder of Brazil in 2002
198.7 Million (2012)
Marketing Strategy for BOP is important in Brazil retail market
BOP’s buying power is 41% of Total expenditure of Brazil
Blue Innovation
Blue Ocean
Red Ocean
1990 シアーズ 撤退2013 ウォルマート 50 店舗閉鎖
Ponto Frio
Mavelus LohasSaem
Retail business using installment plan
Retailers in Brazil marketGlobal RetailersBrazilian retailers
Large market share in Brazil
Casas is top share retailer (15%~20%)
Example 1:Casas Bahia Brazilian retail business
Blue Innovation
retail business using installment plan ・
3) Examination by Casas’s Credit Analyst
4) installment plan of a small amount ・ payment term is 1 〜 15month ・ monthly repayment at store ・ 90% of total sales number by this installment plan
1) Examination by Credit research organization2) assessment system(Income, Occupation, assumed
expenditure) OKN
G
OK
Example 1:Casas Bahia – Business Model
Blue Innovation
• Casas Bahia found out that their typical customers have no consistent income.
• People belong in the bottom of the pyramid are obviously neglected by business.
• However people having low income make Casas Bahia become the largest retail chain in brazil.
• Because Casas Bahia helps them to buy necessities through financing they pay this product by installment plan.
• As a result when Casas Bahia helps these people to buy their necessities by financing their customers and then Casas Bahia become a very successful business.
Example 1:Why they are Blue Innovation?
Blue Innovation
Government
supports
Business
Social needs
Strong mindset
Managementof NPO
Often not enough
Example 2:A supportive policy for novel social innovation?
Blue Innovation
Founder: Masahisa Kogure(Prior to President, worked for McKinsey“Asian Social Entrepreneur of the Year” (2011)Named One of the 48 “Heroes Of Philanthropy” by ForbesiPhone Wins Multiple Awards “Good Design Award” and “ 広告電通賞”
Example 2:A supportive policy for novel social innovation?
Blue Innovation
How it works… “Addressing obesity”Eat a healthy TFT meal to help
yourself and another less fortunate
“Tackling hunger”Your US$0.25 donation from the TFT meal will be used to provide one school meal to a child in East Africa, Southeast Asia, and your local community
Example 2:A supportive policy for novel social innovation?
Blue Innovation
Core competency is… Partnership
PartnersProfessiona
l Supporters
Ambassadors Advisors
Professor at Keio
Member of the House of
Councilors
Director at Goldman Sachs
Mikuni Group
Founders
Country manger for
SEO at Uniqlo
Member of the House of
Representatives
Example 2:A supportive policy for novel social innovation?
Blue Innovation
What’s so special is “No business model, No sustainable NPO”, which is highly depending on government supports
• Anyone can participate- Everyone eats lunch- Allows you to think and eat well while doing good for society• Win-Win- One does good for oneself and for another less fortunate• Easy to implement- CSR appeal without cost for participating companies
Example 2:A supportive policy for novel social innovation?
Blue Innovation
*Our Blue Innovation
New innovation structure of Japanese government
Blue Innovation
Three characteristic trend to 2025:• Decrease population and rapidly aging society • Progress of local society, information society and globalization• Increasing issues which jeopardize sustainability of earth
Realize the ideal future by innovation
2025 future Japan:Healthy, Safety, Diversity, Contribute to the world, Open to the world
Source: Home page of Cabinet office: http://www.cao.go.jp/minister/index.html
Innovation 25 – Today’s Policy
Blue Innovation
Cooperative Project among Industry Government and
Academia
Local Innovation
Cluster for Innovation
Role of Government METI• Clear the goal• Set target date and appropriate time schedule• Maintenance and prepare law and legal system• Standardization• Evaluation• Subsidize
Japanese
Company
ForeignCompan
y
Local Governme
nt
University
Industry Group
Research
Institute NPO
Establish Free access
Establish Free access
• Approach only for domestic problems and issues • Many developed countries have almost same
problems
Red Ocean
New innovation structure of Japanese government
Blue Innovation
Government ofForeign Country
Specific Problem in
Foreign Country
Japanese Government
Special Team
Ask support
Offer support
Companies
Academic Institutes
NPO
EmploymentEconomic Growth
Tax reduction
Human ResourceSubsidy
Human ResourceSubsidy
Human ResourceTechnologyExperienceKnowledge
Global human resourceNew TechnologyGlobal ExperienceSpecific needsPartnership
Solve
New innovation structure of Japanese government
Blue Innovation
Japanese government:
• Achieves economic growth and job creation• Get the trust from other countries• Enhance the presence in international world• Reduce the ODA expenditure
Companies, academic institute and NPO • Get financial support form government• Get international talented stuffs• Get new technologies• Specify the needs in international market• Create the connection
Values through new innovation structure of Japanese government