1. Service innovation in the sanitation sector Heiko Gebauer & Caroline Saul Business Innovation Environmental Social Sciences (EAWAG), Zurich, Switzerland Center of Service Research, Karlstad University, Sweden International Research Symposium in Service Management 5

2. Sanitation remains a pressing millennium development goal Open defecation Unimproved pit latrine Improved sanitation Sources: globalpressjournal.com, www.flickriver.com, learn1.open.ac.uk, and Western standard 3. Organic growth How does sanitation business approach the scaling-up processes? Replication Isolated Integrated How does the sanitation business approach the sanitation chain? (3) Growing supplier of sanitation systems (1) Growing specialists for single sanitation activities (2) Multiple sanitation businesses replicate the success of the initial specialist (4) Multiple sanitation businesses replicate the success of the initial system suppliers 4. Sanitation chain Usage Transport Treatment Reuse / Disposal 5. Qualitative, theory-building research method has been applied Empirical setting Sanitation services Exploratory case study research Screening for case leads Evaluation of the case leads Building and analyzing the case studies In-depth case study research Primary data collection and analysis through the assistance of local partners (Ethnographic approach) Direct participation in workshop, meeting, interviews and discussions with consumers Data analysis Pattern matching logic Within and cross-case analysis 6. Integrated versus isolated businesses along the sanitation chain Isolated Integrated Organizations identify and exploit the service opportunities of single sanitation activities Incremental improvements due to more efficient services Organizations identify and explores the service opportunities along the whole sanitation chain Radical leap in the sanitation improvements to more efficient services Usage Transport Treatment Reuse / Disposal Usage Transport Treatment Reuse / Disposal Sanitation chainSanitation activities 7. Honeysuckers - Isolated sanitation services Honeysucker businesses in Bangalore Success through innovation Existence & survival Scale-up micro-network replication Penetration Septage sludge emptying Time Existence & survival Micro-honeysuckers start to emerge after setting-up pit latrines Success Innovating the vacuum truck, pumps, composite field, use of fertilizers, & special applications Scale-up Extending the number of micro-honeysucker businesses, instead of growing the individual businesses 8. Isolated sanitation services benefit from business eco-system Truck manufacturers Honeysuckers FarmersGovernment Commercial customers Vacuum pump manufacturers Toilet suppliers Households 9. x-runner integrated sanitation services x-runner provides sanitation services, operates treatment facilities, and sells composts Costs Time Existence & survival Start to explore new sanitation solutions Success Financial sustainability of one integrated sanitation system Scale-up Replication of integrated sanitation systems 10. Integrated sanitation services orchestrate the business eco-system Donors x-runner Compost customers Government Households Research institutes Suppliers NPOs Households 11. Summary Improvements in sanitation services are a key concern (millennium development goals, 2.8 billion people without access to improved sanitation, health concerns) Sanitation services can be either isolated or integrated Both rely heavily on the business eco-system to get innovations going (isolated benefits from the business eco-system, integrated orchestrated the business eco-system) Isolated sanitation services grow through the replication of micro-enterprises Integrated sanitation services grow through establishing a system and decreasing the costs throughout the system provisions 12. Thank you very much for your attention Doing well by doing good 13. Thank you very much for your attention Doing well by doing good