Shared Value and Health in Africa

Transcription

1 Shared Value and Health in Africa AFRICA HEALTH BUSINESS SYMPOSIUM NOVEMBER 7,

2 For 17 years FSG has supported companies to make their engagement with society more effective Consulting firm and thought leader, founded in 2000 Founded by Harvard Business School Professor Michael Porter and Mark Kramer Specializing in strategy, evaluation, and research in the social sector Over 150 employees in six offices with ~100 consulting projects globally per year Representative Corporate Clients Shared Value Initiative 2

3 Corporations are critical to achieving the UN Sustainable Development Goals by 2030 Governments must take the lead in living up to their SDG pledges. I am counting on the private sector to drive their success. ~ UN Secretary- General Ban Ki-moon 3

4 Despite the hype, big questions remain: What business models are truly effective in serving the poor? How do we scale these to make a significant impact on the need? 4

5 Shared value creates self-sustaining and scalable solutions to societal problems CSR / Philanthropy Creating Shared Value Redistribution of value to meet societal needs Impact dependent on scale of finite resources Creating opportunities for the business by meeting societal needs Impact scalable because shared value is self-sustaining 5

6 Shared value approaches generate both business and social value Shared value business models increase profits, reduce costs, and enhance competitiveness by solving social problems. 6

7 Companies can create shared value in health on three levels RECONCEIVING PRODUCTS & MARKETS REDEFINING PRODUCTIVITY IN THE VALUE CHAIN ENABLING LOCAL CLUSTER DEVELOPMENT 7

8 Novo Nordisk has created shared value on all three levels to build its Chinese insulin business Reconceived Products and Markets Developed insulin products adapted for Chinese patients Strong Competitive Context Funded the creation of the World Diabetes Foundation to increase diabetes awareness Worked with Chinese government to develop national standard treatment guidelines Provided training and information on diabetes to physicians Redefined Productivity in the Value Chain Opened local production facility in Tianjin, allowing Novo to gain production efficiencies and quicker response to market demand Established an R&D center in China

9 BD has innovated on all three levels with its Uniject product 1 Product 2 Value Chain 3 Cluster Industry s broadest array of safetyengineered devices, incl. needleless systems and syringes that block after onetime use/ have a preattached safety shield Low price for broad adoption Optimized use of materials: up to 30% less weight than other syringes Leverage of worldwide manufacturing network for reduced fuel and transport costs Partnerships, patient advocacy and TV ads to raise awareness Influence on national policies (in developed countries) Hospital worker training Grants for tracking and analysis of needle-stick injuries BD's safety device revenue growth: 1998: $5M 2013: $2.1B (CAGR 65%)

10 The shared value dilemma: the biggest gains are the hardest to unlock Products Company value chain Supply services Beyond companies operations Delivery services Input provider norms & behaviors Policies & Informal rules Operating environment Consumer norms & behaviors 10

11 Digital health can drive health improvements by improving information flow and connectivity GLOBAL BI- AND MULTILATERALS, FUNDERS, INGOS PUBLIC PRIVATE NATIONAL MINISTRIES OF HEALTH (MOH) PHARMA & DEVICE COMPANIES + TECH COMPANIES SUB- NATIONAL HEALTH FACILITIES & HEALTH WORKERS SOCIAL ENTERPRISES, NGOS END USER 11

12 Laura Herman, Managing Director 12