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understanding social innovation

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Daniel Metcalfe

on 3 May 2011

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Transcript of understanding social innovation

clear positive vision future? “We are limited, not by our abilities, but by our vision.” lack of a vision can lead to policies based on fear Why is it important to have a of the bottom up top down Technological social/cultural “Our strengths in design and creativity must be better exploited. We must champion social innovation. We must develop a better understanding of public sector innovation, identify and give visibility to successful initiatives, and benchmark progress.” Michelle Obama on the new social innovation fund "The idea is simple: to find the most effective programs out there and then provide the capital needed to replicate their success in communities around the country that are facing similar challenges. By focusing on high-impact, result-oriented non-profits, we will ensure that government dollars are spent in a way that is effective, accountable and worthy of the public trust." European commission;
Europe 2020 Flagship Initiative Innovation Union So... What is social innovation? "Social innovation is a process of change where new ideas emerge from a variety of actors directly involved in the problem to be solved: final users, grass roots technicians and entrepreneurs, local institutions and civil society organizations. The main way in which it differs from traditional “garage” innovation is that here the “inventors” are groups of people (the “creative communities”) and the results are forms of organization (the “collaborative services”)." There are many different definition: Social origins Ezio Manzini "Social innovation is not unique to the non-profit sector. It can be driven by politics and government, markets movements , and academia, as well as by social enterprises. Many of the most successful innovators have learned to operate across boundaries between these sectors and innovation thrives best when there are effective alliances between small organisations and entrepreneurs (the ‘bees’ who are mobile, fast, and cross-pollinate) and big organisations (the ‘trees’ with roots, resilience and size) which can grow ideas to scale." The Young foundation Understanding Social Innovation Distributed
networks Society Crowd
sourcing Collaborative
networks Microcredit Innovation
hubs Wikies Open source
software Prezi P2P
File sharing Web Business Time bank Car pooling Feed-in
tarifs Exchange
networks Farmers
market CSA Purchase
groups Organic
delivery box Edible
schoolyard Food Fair trade Cooperatives Social
networks Community energy Microcredit Magazines for
the homeless Car sharing Couch surfing Husk power
system, India Renewable energy Eat with me What is it? History Benefits European
model Source:
http://en.wikipedia.org/wiki/Wind_power_in_Denmark Community energy can refer to any energy project where:
primarily local people have a financial stake.
projects have little or no commercial interests.
community buildings, sites and people are involved. Typically, community energy projects have significant community involvement in the development process, and provide significant community benefits once they're up and running.
Most importantly, they all have economic, environmental and social benefits for the local community that commercial renewable energy developments don't offer. In particular, there is often strong community support for them — they are more than a simple investment of time and money for those involved. 1844 100,000 families belonged to wind turbine cooperatives, which had installed 86% of all the wind turbines in Denmark. 1970 1988 2001 2004 150,000 were either members or owned turbines, and about 5,500 turbines had been installed, although with greater private sector involvement the proportion owned by cooperatives had fallen to 75% Of community energy in Denmark Community energy has its structural and inspirational origins in the co-operative movement of the 19th century. A “best practice” involving a strong grass-root movement and good government policy Danish Government passes a law forbidding nuclear power. 1978 The Danish Wind Turbine Owners Association was formed and was critical to the success of community energy and the wind industry as a whole. The Danish Government introduced a significant subsidy (between 20 and 30%) to go towards establishing new renewable energy projects. 1979 As the technology developed into larger scale turbines, townspeople started to pool their money and buy turbines together. These partnerships were the beginning of community energy and had since become the most common form of wind ownership in Denmark. Opposition to nuclear energy and the 1973 oil crisis drove grass-root movements and independent scientists to look for alternative energy technologies. Denmark has the most community-owned renewable energy in the world, and is also the world leader in wind turbine manufacturing. Without a committed and passionate ground-swell of people, this large and successful industry may never have happened. “Danish law encouraged mutual ownership of wind turbines... by exempting owners from taxes on the portion of the wind generation that offset a household's domestic electricity consumption”
Paul Gipe The benefits of renewable energy are clear... when the community gets involved in renewable energy, the advantages are even greater: Public acceptance The financial benefits stay in the community Community empowerment Educational benefits As the private wind energy market started developing the same scientists and grass-root movements that initiated the development of wind energy served as monitors and quality filters for the whole market. Co-ownership of wind energy projects has been shown to increases public acceptance and trust. For example the Hepburn Wind project, in Victoria. generates $15,000 per turbine per year, compared with a typical commercial wind farm, that might give back $500 to the community per turbine, per year. Community energy projects offer people the chance to make a significant, collective contribution to reducing climate change in addition to creating local jobs. These projects help fight misconceptions about wind farms and other renewable technologies by allowing local people to see for themselves how they work and the benefits they offer. Bridging the gap between individual
and utility-scale responses Community energy projects introduce an important step between centralized large scale power plants and micro-technologies, household energy projects (of up to 1kW range). Community energy in Europe usually takes the following form:

A group of people form a legal structure (a co-operative, partnership or company).
They pool enough money to pay for all or most costs.
They establish the project.
They sell the electricity they produce to the local energy utility at a profit.
These funds are then distributed back to the share holders according to their level of investment. Social innovation was the driver of technological innovation in the case of wind turbines.
Non profit and grass-root movements served as monitors for private manufacturers driving up the quality of Danish turbine technology.
Co-ownership of turbines has contributed to the wide public acceptance of wind power in Denmark (and reduced the NIMBY effect)
With the right kind of government support local small scale social innovation can be scaled to the whole country and the world.
Community energy is sustainable environmentally, financially and socially.
In general a decentralized model of energy production is more flexible and resilient then a centralized one.
Conclusions: 1844 1970 1978 1979 1970 1988 2001 2004 how to bring electricity to 5 million villagers in India? sources:
http://www.huskpowersystems.com Husk power Systems Husk power systems is a for profit social enterprise created by 3 friends with the objective of bringing electricity to rural India. “A Social enterprise is any for-profit or non-profit organization that applies capitalistic strategies to achieving philanthropic goals. Social enterprises do not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realise their philanthropic goals.
Many entrepreneurs, running a profit focused enterprise that they own, will make genuinely charitable gestures through the enterprise, expecting to make a loss in the process. While noble, this is not considered to be social enterprise. The term is more specific, meaning 'doing charity by doing trade', rather than 'doing charity while doing trade”.
Wikipedia The markets alone cannot solve the problems of poverty; nor are charity and aid enough to tackle the challenges faced by over two-thirds of the world’s population living in poverty. Patient capital is a third way that seeks to bridge the gap between the efficiency and scale of market-based approaches and the social impact of pure philanthropy. in our case: Long time horizons for the investment
A goal of maximizing social, rather than financial, returns
Providing management support to help new business models thrive
The flexibility to seek partnerships with governments and corporations through subsidy and co-investment when doing so may be beneficial to low-income customers. Our design philosophy is simplifying the system so much that even a high school educated villager could be trained and run our power plants.

We originally thought that some super high-tech solution would fix the problem. We were proven wrong... a solar panel would cost $1500 per kilowatt installed. we settled on rice husks at half that cost and now our plants each power 400-500 households for 7-8 hours per day " " There is no “one size fit all solution”, different areas of the world call for different strategies.
The most advance technologies are not always the most appropriate ones.
Social enterprises call for alternative funding methods
Innovation can spread also without the help of government. Conclusions: Didtributed and diverse Social media communication Why? How? 1.Social media has a two way flow 3.People trust their peers more then they trust corporations 4.Social media has a ripple effect when it goes viral. 2.Social media campaigns are much cheaper then traditional ones In 2009, only 6 percent of consumers surveyed said they believed marketers' ad claims. Another survey conducted in 2009, showed that 90 percent of consumers trust product recommendations from personal acquaintances–making such recommendations the most trusted form of advertising.

source: http://www.dragonflyeffect.com Some trends Why did we watch this video? 5 years old + no budget= 40,437,985 views how can we harness the power of social media to promote social change? Jennifer Aaker and Andy Smith of Stanford University’s Graduate School of Business have created a model based on case studies they explored called the: source: http://www.dragonflyeffect.com http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2581 Wikies and open source Micro volunteering and micro donations Cause Marketing Hero stories Action pledges and Crowdsourcing Simplified fact stories http://www.storyofstuff.com/ http://www.flickr.com/photos/350org/sets/72157622455212282/
http://www.bbc.co.uk/bloom/ http://www.sparked.com/ Parent
schooling Transportation Pacient
capital P2P
lending micro
volunteering >Examples >Definitions "Social Innovation refers to new ideas that resolve existing social, cultural, economic and environmental challenges for the benefit of people and planet. A true social innovation is systems-changing – it permanently alters the perceptions, behaviours and structures that previously gave rise to these challenges." The centre for social innovation Social objectives social innovation is "a novel solution to a social problem that is more effective, efficient, sustainable, or just than existing solutions and for which the value created accrues primarily to society as a whole rather than privat individuals" Phills, J.A., Deiglmeier, K. and Miller, D.T., 2008 Innovation that addresses social problems (puts people before profit)
Can be non-profit or for-profit.
It can come from the private, public or third sector or from the spaces between these sectors. Summery Innovation matrix >Vision >Technology >Design >Institutions What new possibilities arise with the spreading of Information and Communications Technologies(ICT)?
What is their role in the spreading of social innovation? 1. Many to Many communication 2. Organization without organization The cost of all kind of group activity-sharing, cooperation, and collective action- have fallen so far so fast that activities previously hidden beneath that floor are now coming to light. We didn't notice how many things were under that floor because, prior to the current era, the alternative to institutional action was usually no action. social tools provide a third alternative: action by loosely structured groups, operating without managerial direction and outside the profit motive.
Clay Shirky Search http://www.flickr.com for ________
Image by: YankeeInCanada 3. Decentralization 4. Diversification People Photos 20% 80% 80% 20% Amazon book sales 20% of users account for about 80% of the photos.
In his 2007 best-seller, The 4-Hour Workweek, Tim Ferriss recommends focusing one’s attention on those 20% that contribute to 80% of the income. More notably, he also recommends firing those 20% of customers who take up the majority of one’s time and cause the most trouble. “We sold more books today that didn’t sell at all yesterday than we sold today of all the books that did sell yesterday.”
Amazon employee 5. Leap frog innovation innovation The cost of making mistakes is very low
More people experimenting - more rasdical innovation
Social innovation can tolerate a much higher degree of indecency Who invented the mountain bike? “Big corporations have an inbuilt tendency to reinforce past success”
Charles Leabeater watch: http://www.ted.com/talks/charles_leadbeater_on_innovation.html What is the innovation that makes it possible for you to find photos on flickr? 6. Resilience 7. Other Community-based monitoring (flag, report inappropriate...)
Reputation systems (ebay)
Quick to respond in times of crisis
Revolutions... >Conclusions >Ted Social innovation doesn't have a single form, it is rather an aggregation of different models and solutions that fill in the gaps created by our current market system. 1 2 A model of sustainable development based on social innovation is formed on the meeting point between new ICT technologies and people's will for alternative forms of socialization, production and consumption. A wide scale diffusion of social innovation depends on a mixture of bottom-up and top-down strategies. 3 “We have lived in this world where little things are done for love and big things for money. Now... Suddenly big things can be done for love”.
Clay Shirky Read: http://www.amazon.com/Here-Comes-Everybody-Organizing-Organizations/dp/1594201536 Public industries
Private industries Social administration (government)
Social enterprises (private)
NGO’s Cooperatives
Community projects User innovation
Commons based peer production (social production, P2P...) "special people in special places think of special ideas and push them down the pipe line to consumers"
Charles Leadbeater If innovation can come from anyone and from anywhere what does this mean for designers? >Essay ? ? Will open source design become for designers what... Skype is for phone companies

Blogs are for journalists

Open source software is for Microsoft

File sharing is for the music industry

Wikipedia is for encyclopedias

... Could this work in rural india? Essay 1
Define the role of Design in a future model based on Social innovation generated by diffused creative processes. The work should focus on design for social change. Provide theories, case studies and personal opinions. You are asked to work in groups of 4.

Essay 2
Define the role of Design in a future model based on Social innovation generated by diffused creativity where product's and services' users are crucial in the innovation process. The work should focus on design for the market with a business perspective. Provide theories, case studies and personal opinions. You are asked to work in groups of 4.
how is ebay dealing with the prisoners dilemma?
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