1 I of IDE90: Product Incubation for the Base of the Pyramid (BOP) Ray Larsen Co-Chair CSI IEEE NPSS Fellow, PES Member
2 Outline 1. IDE90 Framework Defined 2. IEEE-CSI Goals & Product 3. Incubate Pilot Task Teams 4. Incubate Pilot Example CSI-Sirona 5. Shared Costs: CSI Prototypes, NGO Business Planning 6. Managing Role of Volunteers 7. CSI Incubate Next Steps
3 I. IDE90 Framework Defined Sustainable, Market Based, Entrepreneurial Incubate Demonstrate Educate Capacity building with Engineers Metrics: IEEE-wide involvement, support, project-ngo groups Products: Reliable electricity, medical, web interconnectivity, agricultural water, & storage, refrigeration Agents: CSI, IEEE, partners Professional Non-Profit, Pro Bono volunteers Capacity building with Local Entrepreneurs Metrics: Sales, profits, repeat customers, demonstrated sustainable Products: Sustainable, radically affordable technology services, economic impact on community, nationally Agents: NGOs, for-profit offspring, venture funds Non- & For-Profit NGO partners, local & national Capacity building with Community Leaders Metrics: Community men, women, children understand, engaged in process of change Products: Elementary Secondary, business advanced modules, technology, affordable degree track programs Agents: Universities, IEEE, EWB, CSI, Partners Non-Profit INGOs, Universities Courtesy D. Wessner
4 2. IEEE-CSI Goals & Product IEEE: Major impact on eliminating energy poverty through humanitarian seed funded programs, pro bono member efforts CSI: Each startup to serve 1 million base of pyramid (BOP) customers in 5 years; 10 new startups per year; 50M customers 10 years; $2B investment in community owned businesses globally Standard Model, Standard Operating Procedures, easily replicable, portable, design for affordability
5 IEEE-CSI Goals 2 SunBlazer Solar Generator & Battery, Light kits serve ~500 people; need 2,000 units, 400 per year @$20,000, ~$8M/year annual production costs, new lease sales; 10 year payback IEEE provides seed funding up to $200k; 10 SB-IIs In-Country Partner (ICP) develops in-country support staff, manufacturing for minimum labor costs, maximum jobs creation ICP franchise partner attracts capital investment to take production to scale
SunBlazer I 1.5kW Generator, PBK & HLK* 6 *Portable Battery Kit, Home Lighting Kit
SunBlazer I (SB-I) Floor Plan 7 Home Battery Packs On Charge (20) Home Battery Packs In Queue (20) NPS1000 Combiner Breaker Battery Panel Chargers (20) Station Batteries (4) Access Door MPPT Controller Xantrex
8 SB-I Charging Bay & Bank of 20 Chargers
SunBlazer II (SB-II) 9 Lower cost, more easily portable to remote sites Solar frame kit, chassis fit in back of standard pickup truck Wheels removable after chassis located on site Kit installs in 2-3 hours
10 3. Incubate Pilot Task Teams Business Planning Prototype Design & Build Product Manufacturing CSI Management Engineers Electrical Manufacturing Manager NGO Management CSI Implementation Advisory Team PES Oversight Manager Engineers Mechanical Technicians Electrical, Mechanical Drafting, Documentation Shop Supervisors Supply Chain Procurement Planner/ Manager Facilities Management IEEE Foundation Admin. Support Assemblers & Testers Business Development Non- Profit to For-Profit NGO Management For-Profit Business Developer For-Profit Field Manager In-Country Entrepreneurs For-Profit Tech Support Workers
11 Incubate Pilot Startup Tasks ~1-2yrs Technical Model - CSI Develop Concept, Evaluate NGOs Develop Conceptual Design Design Requirements & Specs Cost Analysis Technology R&D, Mfg. Design Prototype, Document Design Review, Marketing Flyer Business Model NGO Partner Evaluate Potential Partnership Formalize Partnership, Join SMUG New Business Plan Infrastructure Preliminary Market Analysis Community Product Review Market Surveys by Local Leaders Raise Funds, Fabricate #1, Raise funds implement #1 Field Test Unit 1 in-country Document Product, Operations Manual, Maintenance Manual Secure Train Local Entrepreneur Secure, train Support Technician
12 4. Incubate Pilot Example CSI-Sirona IEEE-UN Plans for HTC Goals HTC Forms Concept Groups CSI Product ideas, secure NGO Start weekly meetings Webex Prototype designs, Business Plan Select in-country entrepreneurs Entrepreneur market surveys Present plan to Haitian Gov t Begin Offer Plan to Investors Field Test Prototypes 1-6 in Haiti 2008 2009 2010 2011 2012 2013 IEEE CSI Sirona CSI+Sirona
13 5. Shared Costs: CSI Prototypes, NGO Business Planning CSI Responsibilities Secure all resources, pro-bono and paid where necessary, to execute all phases of prototype R&D, construction Test, guarantee products to perform Raise necessary funding for design, construction, test, shipping, duties & taxes Document all designs IEEE open-source for new initiatives Proposed future limit: $200,000 per startup (10 SB-IIs) Additional: Fund volunteer travel expenses to help with training, deployment; ongoing volunteer support team
14 5. Shared Costs 2 NGO Responsibilities Develop sustainable business plan with CSI support Fund extra in-country expenses, primarily travel & meetings, for new electricity business without negatively impacting current NGO commitments Evaluate in-country product performance, keep records, help identify technical problems in Pilot phase Secure, fund in-country field manager, maintenance technicians, work space for service personnel, admins Select, train competent operators who are not technically trained; train in responsibilities
15 6. Managing Role of Volunteers Observations: Since January 2010, 8-16 CSI volunteers meet weekly by Webex to coordinate range of activities all phases of IDE ~150 emails/week on all aspects Industry partner pro-bono contributions critical to Incubate phase success NGO partner contributions critical to Incubate & Demonstrate phases success University, sustainable development NGO community will be critical to Educate phase success. IEEE PES, NPSS, Foundation, others critical to Funding success to date SMUG NGO collaboration meets weekly since August 2012 CSI would not exist without extraordinary efforts of volunteers dedicated to vision of Major Impact.
16 6. Managing Volunteers 2 Issues Going Forward CSI incubating new businesses; obliged to provide pro bono support teams through initial critical steps of Incubate, Demonstrate and Educate CSI must guarantee NGOs technical assistance until achieve fully self-supporting including new development, as requested Through IAC Committee CSI members may serve on Boards of startups SMUG organization, collaboration critical to attracting venture capital funding or loans to take businesses to scale Ultimately funding success will require very strong NGO/For- Profit management teams, Pilot results and committed CSI technical backing CSI must organize to continue extraordinary volunteer efforts, inspire commitment needed for success
17 7. CSI Incubate Next Steps CSI Program Priorities 2013: Continue IAC, financial, retrofit support to make Haiti succeed in first round venture funding and/or loans 2013: Complete, field test prototype SunBlazer II 2014-16: Launch Major Foundation fundraising to ramp seed funding to $3.5M/year for 10 new startups per year (4 underway Haiti, Cameroon, Nigeria, South Sudan) 2014-15: Develop CSI volunteer management teams to help formulate, seed, monitor new initiatives ~ 20 teams steady state 2014-16: CSI Education Committee develops Pilot Community Education outreach programs in Haiti, Africa
The New Sirona Haiti Community Entrepreneurs 18 Classes of June 2011 & August 2012 Class of June 2011 with Staff &Trainers, Grand Goave Class of August 2012 with Staff, St. Marc Sirona Techs, Lacourcieres & Lex Edmé, Host
Orphans in Jérèmie celebrate SunBlazer 6, July4, 2011 19
20 Acknowledgment CSI gratefully acknowledges all the organizations whose logos appear on the following slide as well as the following CSI team members & supporters: Robin Podmore Al Rotz Michelle Lacourciere Peter Dauenhauer Noel Schulz Paul Lacourciere Dan Wessner Pat Ryan Derek Welbourn Mike Wilson Sissie Lin Wayne Gutschow Terry Brady Wanda Reder Paul Savage Patrick Lee Mary Ward Callan The G-Team Peter Staecker Henry Louie John Lorts Janet Barth Russ Lefevre Doug Shoaf NPSS AdCom & Advisory Committee PES Board of Governors Rich Baseil
21 IEEE Region 9 Humanitarian Initiatives Committee SunBlazer Trailer Logo with Donor Logos; Community Logo; Home Pack Operating Instructions