Blue innovation

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”


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


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

Twitter

SEO at Uniqlo

Member of the House of

Representatives


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


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


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


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

Blue innovation

Business

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