Harvard Business Review Blog: Indian Tales of Inclusive Business Models

Inclusive business models has become theeconomic development mantra for both Indian politicians and CEOs. The authors  traveled across India to understand pioneering businessmodels being developed by the private sector.

Traditional non-profit philanthropic activitiesor CSR (corporate social responsibility) had modest societal impact and weredevoid of financial motivation - so essential to scale them up. Today, however,that old model is being retired. Many Indian firms as well Indian subsidiariesof MNCs are now adopting new business models that can deliver more value at lesscost for more citizens- be it in agriculture, affordable housing,healthcare, energy, education, and financial services to those living in themiddle and bottom of the pyramid.

The article talks about the efforts madeby:

• PM Manmohan Singh.
• Ellen Kullman, CEO of DuPont.
• Geetu Verma, Exec Director of Innovation at PepsiCo India.
• Sandhya Shekar, CEO, IIT Madras Research Park.

Successful business models mentioned:

• PepsiCo experience with DSR -
  PepsiCo India and the Punjab Agricultural University have co-developed atractor-driven machine to systematically implement direct seedingof rice (DSR), an eco-friendly technique that can reduce water use in ricepaddies by 30% and cut carbon emissions by 70%. DSR is a boon for Indianfarmers who are reeling under the effects of water scarcity. DSR's initialsuccess has led PepsiCo to team up with the IndianAgricultural Research Institute to deploy DSR nationwide. Verma pointed outthat PepsiCo's partnershipswith research institutions, state governments, NGOs, and local communitieshelp make the company's inclusive business models both scalable and sustainable.
• MASARD  - sanitary napkins production by/for poor women
• Akshaya Kalpa  - integrated organic dairy venture
• Aakar Asha - center for enabling physically disabled
• Successful profitable social enterprises such as DesiCrew, which employs many rural women as Business Process Outsourcing (BPO) workers

Authors:
- Navi Radjou is ED, Centre for India & Global Business (CIGB) at Judge Business School, University of Cambridge (UoC)
- Dr. Jaideep Prabhu - Jawaharlal Nehru Professor of Indian Business and Enterprise, Judge Business School, UoC
- Dr. Prasad Kaipa - CEO Coach in Silicon Valley and a senior research fellow at the Centre for Leadership, Innovation, and Change at the Indian School of Business, Hyderabad
- Dr. Simone Ahuja - CEO and founder of Blood Orange Media

Posted on Jan5, 2011 at http://blogs.hbr.org (To read, please clickhere)