Last month we attended the Sustainable Brands conference in Monterey, CA and there was a lot of talk about innovation and what it means to organizations today. A whole new realm of innovation is about creating products that not only provide value to the consumer but also have a social impact that goes beyond meeting the consumers’ immediate needs. This concept focuses on the development of products that address and/or cause social change. In other words, we have seen a turn in the thought process of how and why companies innovate products. These days it has become common for companies to develop and innovate products that address major social issues.
Hunger, poverty, and the deterioration of the environment are common social issues ailing the world we live in. Given these common issues, the thought process behind innovating a product that is ethical, sustainably sound and addresses worldly issues are products that provide value and purpose. Before we dive a little bit deeper into this concept, it is important to specify exactly what kind of products we are talking about. For example, in practically every store we visit there are products that give a certain percentage of the sale price to a charity or to a good cause but in this case we are not talking about donations nor philanthropy we are talking about product development that meets a need and addresses larger social concerns.
Take a look at TOMS Shoes, a company that donates a pair of new shoes to a child in need when you…buy a pair of shoes. What does this mean? It means that a child in a developing country will get a pair of shoes for free and not be in danger of passing or getting a transmitted disease through the soles of their feet. This business model is simple but what’s interesting is how the CEO and Founder, Blake Mycoskie has developed a for profit business that is sustainable and supports a cause. Shoes are common but the business model and the thought process behind the shoes is what is innovative.
Another great example is ApproTEC, a company that develops low-cost tools and sells them directly to the poor. The twist is that ApproTEC is innovating and developing products not for the wealthy but for the poorest of the poor. Through product innovation and accessibility their approach is meant to empower the poor by giving them the tools necessary to generate income, thereby lifting themselves out of poverty. Through innovation and product development, ApproTEC’s products are generating a cycle of wealth creation. One of the most popular tools they have invented is the Super MoneyMaker (SMM). SMM is a manually operated irrigation pump that allows farmers to irrigate their crops. Farmers who buy the SMM pump recoup their investment and manage to make yearly profits. ApproTec’s business model focuses on designing low-cost capital equipment that greatly enhances productivity. The tools are manufactured, marketed, and distributed through private sector businesses in order to ensure the product is delivered in an economically sustainable way. Even more intriguing is that they are constantly innovating new products that are designed to fit the needs of the poor within various countries.
TOMS shoes and ApproTEC are only two of the many examples that really ingrain the idea that innovation is about creating products that provide value and support social change. In other words, businesses have taken on a certain level of responsibility that goes beyond the everyday business practices. Innovation couples with a sense of social consciousness has become a part of many company’s mission and ethos.
Why is it that product development is not only focusing on value and performance but on creating social change? Well, businesses have taken on this responsibility because consumers, whether rich or poor, have demanded it. Consumers, especially those in the developed world, have the resources and access to information to learn that threats such as energy shortages, pollution, and water shortages are problems that transcend across any boundary. The idea of living in a bubble or in isolation is an idea of the past. Consumers of all socio economic levels want to contribute to society, whether it is to their own benefit or for someone else. As citizens become more proactive and socially aware, they will continue to demand that products not only meet an intended purpose but also create a social impact.
To learn more about TOMS shoes and/or to contribute to the mission click here. You can also read more about ApproTEC by reading this article. How can your organization apply these concepts of innovation within the building materials industry?
