According to the World Bank, 70% of all sub-Saharan Africa works in agriculture. Most of these people are young and poor, extremely poor. But, by using innovative business models and technology, a number of young enterprises in Africa could succeed in fundamentally changing life in rural areas and helping young people escape from poverty. During a recent journey to East Africa I had the opportunity to meet some of their leaders.
Apart from their business objectives, these three companies have other things in common: Their business models all build on new technologies. They also all put the focus on their customers and they all designed their products and services based on customer needs.
Design thinking – driving innovation and transforming culture
Originally developed as an innovation method for products and services in Stanford, design thinking has the power to “enable new and surprising forms of working together creatively”– according to the Hasso Plattner Institute (HPI). “We-intelligence is the new catchword and collaboration is the cornerstone of a new awareness of work.”
Taita Ngetich got to know design thinking when he participated in the Global Entrepreneur Summer School. “When I arrived home, I examined the customer-friendliness of our greenhouses again and postponed the launch to make significant improvements. I’m sure that this will prove itself in the long term and, in particular, that it will boost our customers’ confidence in us.” Willem Nolens and John Waibochi discovered and tested design thinking as part of the SAP Social Entrepreneur Fellowship program. Afterwards, SolarNow completely reorganized its sales concept and replaced the previous franchise system with its own branches. Furthermore, the company’s culture and values were discussed with all employees, with the goal of improving service quality and customer retention. Virtual City, meanwhile, reassessed and improved the market presence for its new product.
Design thinking changes behavior within companies, too. “At management level, we now work much more as a team. Everyone has taken on considerably more responsibility for his or her area and set much higher targets. That changed my management style. I can now take care of what a CEO really should be taking care of, namely our customers,” says John Waibochi.
The effect these three companies have on their customers, employees, suppliers, and competitors is massive: Imagine you are a farmer who is a customer of all three companies. Wouldn’t your life change fundamentally as a result? Now imagine that this doesn’t happen to just one farmer, but to an entire cooperative. And how many companies wouldn’t follow suit and develop similar business models, even it was just to keep up with the newly set standards?
These business models have huge potential. With them, the companies also bring new values to rural areas and their own organizations, thereby creating a whole new future.
Within the framework of corporate social responsibility, SAP fosters social entrepreneurship both through its own programs, such as the SAP Social Entrepreneur Fellowship in partnership with Acumen, and by supporting initiatives like the Global Entrepreneur Summer School.