Disruptive Innovation for

Social Change

Submitted by :-
Group 8
Ankush Singla - 12P129
Gaurav Gaba - 12P136
Ladlee Rathore - 12P144
Ravi Kant Singla - 12P162
Varun Gupta - 12P175
Amrita Sandhu FPM74

By Christensen, Baumann, Ruggles, Sadtler

Innovation
Innovation is the development of new values through solutions that meet new
requirements, inarticulate needs, or old customer and market needs in value
adding new ways.
Two Categories :- 1) Sustaining 2) Disruptive

Sustaining Vs. Disruptive
Sustaining
They provide better quality or
additional functionality for an
organizations most demanding
customers
E.g :- most product and service
innovations

Disruptive
An innovation that creates a new
market by applying a different sets of
values which eventually goes onto
disrupt an existing market
Eg :- low cost air tickets; personal
computers vs. the existing
mainframes

Catalytic Innovation
Subset of disruptive innovations
Form of innovation that challenges organizational incumbents by offering simpler,
good-enough solutions aimed at underserved groups
Unlike disruptive innovations, though, catalytic innovations are focused on
creating social change
People often equate an organizations tax structure with its ability to generate
positive social change but organization can create catalytic innovations regardless
of their ownership structure

Qualities of Catalytic Innovators
1
Create systemic social change through scaling and replication
2
Meet the need which is over-served or not served at all
3
Products and services are simpler and less costly than existing
alternatives
4
Generate resources which in ways are initially unattractive to
incumbent competitors
5
Ignored, disparaged or even encouraged by the existing players for
whom the model is unprofitable or unattractive
While incumbent organizations may do a
good job serving a particular group, they
are unlikely ever to reach the far broader
populations that would be satisfied by
simpler offerings
Investing In Health Care
SUSTAINING INNOVATIONS - treat their challenging patients with most advanced
technologies and therapies
CATALYTIC INNOVATIONS-Yield simpler products and services that are affordable to
a broader population e.g.-affordable insurance and primary health care
Minute Clinics :- Offer lesser health services than a doctors office
Good enough service attractive to a large underserved population
99% patients found to be satisfied in a survey by the service
Other Examples :-RedClinics, Take Care Health Systems and Wal-marts in-store clinics
Freelancers Union:- Provide low-cost health insurance and other services to
independently employed contractors, consultants, part-timers
Investing In Education
SUSTAINING INNOVATIONS - advanced state of the art courses at universities
CATALYTIC INNOVATIONS - broader range of good affordable courses available to
people who otherwise have little or no acess to education e.g.-online learning and
community college
Fortune profit Apex learning ,non-profits Virtual High School and Florida Virtual
offered specialize courses to thousands of students through online learning curricula

In absence of alternatives online courses remain is adequate option for underserved
Community Colleges: - Offer a lower-cost alternative to four year universities
Measure quality by factors such as job placement rates,
convenience of access to classes
Investing In Economic Development
SUSTAINING INNOVATIONS funding large scale programs by IMF and WORLD BANK in
developing countries
CATALYTIC INNOVATIONS- Microfinance organizations making small loans available to
latent entrepreneurs who otherwise have little or no access to capital
Grameen Bank - 5.6 million borrowers at the end of 2005
Lent more than $5.2 billion with a recovery rate of >98%
80 million people receiving credit through this approach
Kenyan Healthcare System- Residents turned clinic owners
Offers essential drugs, health products and basic health
care at affordable price
Less cost per person visits(50 cents)
Many mainstream organizations could use
additional resources to revitalize their
current offerings. But when the objective
is to get a system unstuck, it is time to go
in search of catalytic innovation
Dynamics to watch for catalytic
innovation
1
A relatively new entrant is providing a lower-cost, less functional
alternative to a customer segment that is over served or not served by
the dominant provider
2
The dominant player is moving away from the new entrants offerings
and toward a more profitable segment of the market
3
The new entrant is continuing to improve its offering, expanding its
market reach as the dominant player retreats, while others copying its
model are beginning to emerge
Example in Various Sectors
(Indian Context)
Health Care
Sustaining
Apollo Hospitals
Fortis Hospitals
Max Hospital
Catalytic
Arvind Eye Care
Narayana Hrudayalaya
Lepra Society
Education
Sustaining
Doon School
Delhi Public School
Other Private Schools
Catalytic
Teach For India
Super 30
Pratham
Super 30
Economic Development
Sustaining
Raymonds
ICICI Bank
First Flight Couriers
Catalytic
Shri Mahila Griha Udyog Lijjat Papad
Jaipur Rugs Foundation
Mirakle Couriers
Jaipur Rugs Foundation