IXL Social Enterprise Case Studies Energy January 2012 | Page 14

Revolutionizing the way to make energy affordable for everyone lamp is not just a functional appliance—it is a major investment and a sign of household wealth. Changing the product design so that the lamp evokes other aspirational products, such as a luxury car or a sleek smartphone, could help increase its appeal. There are a variety of other ways that SunnyMoney could increase the appeal of a solar lamp—at least for some customers—by making changes to the product. Making a lamp modular by selling batteries, light and panels that can operate independently and interchangeably would encourage customers to adapt and integrate product elements for their own unique needs and in connection with locally appropriate technologies. SunnyMoney can support and learn from these adaptations to identify new growth opportunities. SunnyMoney could also bundle its lamps with other products and services, such as basic cell phones or popular reading material, in order to capture the attention of more potential customers, or change the of nature what it sells, for example by selling access as a service rather than as a product. Can SunnyMoney learn from the launch of the Microsoft Kinect and Ecotact toilets? Kinect is a motion sensing input device produced by Microsoft for its Xbox 360 video game console. Users can use it to control and interact with the Xbox 360 without the need to touch a game controller, through a natural user interface using gestures and spoken commands. Because Microsoft decided to leave the communication output from Kinect unencrypted, amateur and professional engineers have been able to gain access to the device for applications that go beyond the system’s intended purpose of playing games. One project, for example, combined Kinect with a small domestic robot to map a room in 3D and have the robot respond to human gestures. By empowering users to adapt the tool for their own purposes, Microsoft expanded the pool of customers beyond video games, and gained a valuable toehold in adjacent opportunities for the Kinect platform. Ecotact has redefined personal sanitation, replacing unsanitary, unsafe toilets with brightly colored ones that can be used for a small fee and are located near shoeshine and snack locations in Nairobi. The company hires staff to operate and clean the units after each use, and offers other revenue-generating services and products such as advertising, shoe shining, soft drinks and newspapers. In this way, personal sanitation is becoming trendy and aspirational. Are there new ways to produce SunnyMoney’s solutions? SunnyMoney is currently planning to continue sourcing its products from suppliers working in China. Chinese industry produces a huge variety of batteries and silicon panels for a range of applications, while in Africa those industries currently have only a very small presence. The vast difference in scale between the Chinese and African producers is one of the reasons Chinese manufacturers can currently offer the best price for solar lamps. SunnyMoney anticipates that the price advantage will continue to outweigh costs and challenges of managing a long supply chain for the foreseeable future. Can SunnyMoney learn from “Toyota Way” of local manufacturing? Toyota has always been a leader in the automotive industry, notwithstanding the recent issues with vehicle recalls and the earthquake in Japan. Everyone who works for Toyota or for a major Toyota supplier is trained in the firm’s production and management techniques called “Toyota Way.” This helps the company ensure that vehicles are made with the same level of quality regardless of where they were manufactured. Toyota only uses one label, “Made by Toyota,” not “Made in the USA” or “Made in Japan.” SunnyMoney could move production in-house, or develop closer relationships with its suppliers, to ensure that quality and delivery of their offering remains consistent and timely. SunnyMoney could also consider developing production sources in Africa in order to enhance local buy-in. Are there new business models? A promising option for SunnyMoney is a technology that allows a solar lamp to be deactivated remotely through the cellular network. This technology could enable SunnyMoney to rent lights or sell them on credit and disable them as needed. Can SunnyMoney learn from Simpa and Osram? Some companies are providing lighting through small-unit pay-as-you-go pricing. The German light bulb manufacturer Osram leases solar lamps and allows customers to charge them at a centrally located O-HubTM for a fee. Simpa Networks, an energy provider in India, has introduced “Progressive Purchase” pricing for household energy systems, as well. Users prepay based on actual usage and each payment goes towards the total purchase price of the solar home system. Consumers can send payments using a mobile phone. Once fully paid, the solar home system unlocks and delivers free electricity for the expected 10-year life of the product. Energy expenditure is turned into an asset purchase as consumers are offered the opportunity for ownership of their energy r