Preparing for Finals and Summer Institute

Business or Charity Alone Isn’t Enough to Solve Wicked Problems

Combine the Best of Both

How Do We Create These Leaders?

Passionate Student Effective Leader

Acara’s Mission

Acara’s mission:

to develop practical business solutions that address global societal challenges.

• • This mission has two components: Acara education goals – – – Help educate and inspire the next generation of leaders Bring the classroom into real global challenges; these situations require academic skills, teamwork, customer research, multi-cultural understanding, and real world deliverables Partner with universities Acara impact goals – – Implement the best ideas Partner with funders, NGOs, incubators, investors

ACARA CHALLENGE PROGRAM OVERVIEW

Theme: Environmental Sustainability

• • Focus : Food Security If community need is greater in another environmental area other than Food Security, that is an acceptable solution. Examples include, but are not limited to: – Energy – Transportation – Carbon emissions – Water – Public Health

2011 – Food Security

• • • Food security is a vital issue for global peace and security.

According to the 1996 World Food Summit of United Nations: – "Food security exists when all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. “ The Challenge would be to address a problem related to food, and could be related, but not limited, to the production, transport, marketing/selling, processing, storage, treatment or consumption of food and/or water.

US Universities, Fall 2011

• • • • • Cornell University Michigan Tech University of Cincinnati University of Hartford University of Minnesota

India Universities, 2011

• • • • • • • India Institute of Technology – Roorkee KJ Somaiya Institute of Management, Mumbai Kalinga School of Rural Management (@ KIIT), Bhubaneswar TERI University, New Delhi Tata Institute of Social Sciences, Mumbai Xavier Institute of Management, Bhubaneswar Vellore Institute of Technology (VIT), Vellore

Focus on Basic, Practical Questions

Validate and move on What’s the problem?

These seem simple, but answering them well is hard. By forcing the students out of their comfort zone, they are forced to work hard to understand these issues, hence learning the skills.

How do you make money?

• •

Economic Value Proposition Social Value Proposition

Why will people buy it?

customer?

What’s your solution?

Who is your

A Business Model Template

Key Activities Key Partners Key Resources Customer Relationships Customer Segments Value Proposition Channels Cost Structure Revenue Streams Efficiency Value Together, the nine building blocks make up a “canvas” to help you plot out your business model. Acara Challenge focuses students on the four in the top right.. Source: Business Model Generation, written by Alexander Osterwalder, Yves Pigneur et. al

DELIVERABLES AND JUDGING

Judging process

• • • Midterm presentation – to Acara for feedback, NOT part of competitive results First round presentation – each team will present to a panel of judges (online) during the week of

Dec 5 - 16

– Written business venture plans are due on

Dec 2

, 8 pm Central Standard Time – Presentation is 20 minutes plus 10 minutes Q&A Second round presentation – Selected finalists teams (up to 8 teams) will present at the final presentations

Feb 3

, at University of Minnesota, St. Paul.

– Revised written business plans are due on Jan 27 – Teams will send one team member (US student representative)

Business/Venture Plan

• Due 8 pm Central Daylight Time, Friday, 2 December. Electronic delivery to Dropbox folder. Late delivery severely penalized.

• • Size limit: Max 10 pages of main text. Including appendices beyond the 10 pages is ok. File size less than 5 MB.

• Plan needs to list entire team (India and US members) and acknowledge their mentor(s) Acara website has many examples from previous years. Look at them!

Plan Contents

• • • • • • • Executive Summary: Clearly summarize the problem, your solution, your objectives. Personalize it.

Introduction and Background Proposed Venture: Describe the value proposition, how it will work, what is compelling, what is the competition, etc.

Social value proposition Assumptions and risks. Very important. What are the primary assumptions you need to validate.

Financial projections.

Funding request and next steps

Common Failings

• Is this a business that works outside the single community you are currently working in? • No feedback from potential customers on your proposed solution.

– Else can you find a similar business model?

• • Are you solving a problem people care about? Enough to spend money on?

The document doesn’t clearly communicate your plan, and background knowledge.

• Appendix should have some details.

First Round Presentations

• • • • Presentation times will be scheduled.

Presentations will be made from US universities and webcast using UMConnect.

• 3-5 judges online. Judges are a mix of business, NGO and academic, from multiple countries.

Judges will receive the plans on Dec 10.

Presentation time per team 30 minutes. Devote 15-20 minutes to your oral presentation, and the remaining 10 - 15 minutes for Q&A.

First Round Judging Groups

• • • • • • • • • UMN - TERI - 3 teams Cincinnati - Roorkee - 3 teams Cornell - Somaiya - 4 teams Hartford - XIMB - 1 joint team, 3 XIMB teams KIIT - 3 teams TISS – 4 teams Michigan Tech – 1 team Advance best teams from First Round Post first round, calls with teams to give them feedback on their plans/presentations.

Judging Criteria

• • What is the problem? (1-10 points) What is your solution? (1-10 points) – What is your value proposition?

– Evidence: why do you think this solution will work?

• How do you make money? (1-10 points) – Who is your customer?

– Why will they buy your solution?

• • • What is the social impact? (1-10 points) – What is your social value proposition?

How well did you communicate your ideas? (1-5 points) Total points possible : 5- 45 points.

Presentations

• • Same items as plan The presentation is your chance to sell yourself, your team and your plan.

• • Focus on the key points, the details are in your plan.

• Judges/investors base much of their assessment on you (are you believable, do they believe you can do it, do they believe you understand the problem).

• For the Final Presentations, your plan for going ahead is very important Have one or two people give the presentation, not everyone

Criteria Questions

• • • • What is the Problem?

– Is it based on field study? Does the community agree it is a problem? Is it widespread or only in that community? How many people does it impact?

What is your Solution?

– Is it feasible? Why hasn’t it been done before? What is the next best alternative to your solution and why will people choose your solution?

How will you make money?

– Do potential customers accept this? How do you sustain financially? What is it you are actually selling and who is the customer?

What is the social value proposition?

– What is the social benefit? Who does it impact?

After the Challenge

• • Awards Participation in the Acara Summer Institute – India in June 2012 – Some classroom time, some time in the field, working on business plan.

• • Introductions to potential funders.

ALL teams may apply to attend the Summer Institute (winning teams will receive some scholarship support but other teams must entirely fund themselves). • SI is also open to non-Acara teams.

Awards

• • • • Team awards are a mixture of – – – In-kind Scholarship (Tuition and Room/Board) to the Summer Institute Value of tuition is ~$1800 per student Room and board value is $500 per student Cash Award – Cash scholarship from Acara Matching Award – Acara will additionally match cash raised to a specified limit. For ex., a $1500 match means for every dollar the team raises, we will match it, up to $1500.

We are spreading awards across more teams.

Awards

Prize In Kind Prize - Scholarships

Team 1, 2 Team 3, 4 Team 5, 6, 7, 8 2 (Tuition & R+B) 2 (Tuition & R+B) 2 (only Tuition)

Cash Prize

$1,500 + $1,500* $1,500* $1,000* • • * = matching For example – Teams ranked 1 and 2 in Finals: – Tuition x 2 = $3,600 – – – – Room/Board x 2 = $1,000 Cash prize = $1,500 Potential matching up to another $1,500 Total award up to $7,600

SUMMER INSTITUTE

UMN- Acara Summer Institute

Goal to transition best business plans from school project to a proto-business ready to fund. Inputs Business plans

I

committed team members

I

framework

I

mentor network

I

exposure to industry experts and venture capital

I

angel investors Outcome the anticipated outcome is a “fundable” plan and a team ready to launch.

Post Classroom: Acara Summer Institute 2012

Challenge Final, Feb 3 Pre trip Assessment • • • • Pre-trip Assessment, approx. 1 week after Challenge Finals (discuss with team what their plans might be) By March 1, let us know if you are considering attending SI. In March, review team plans for SI.

March 30: deadline for teams to decide if they will attend the SI Field Work I Classroom June Immersion June • • • • On the ground in India Mix classroom and field work Classroom in Bangalore Before SI: minimum 1 week field work

Pre Trip Review Teleconference

• • • • • • Cultural, travel issues Who is going to India/Bangalore and when Host plan in India – the plan at the university, includes lodging, transportation, food, how to visit community Business plan objectives – – – Assumptions and risks to validate What to determine before the SI classroom portion.

Identify weakness so we can recruit right mentors/advice for them and determine social ventures to visit.

– Validate the major points- the problem statement, solution tested, customer validation of offering.

Plan needs approval from mentor and professor, on both sides, then by Acara, prior to receiving the award.

Need to spend at least 7 days in their community of study prior to the classroom portion of SI.

Summer Institute

• What do you learn in the field?

– Spend more time on voice of the customer – Validate business plan assumptions and risks – Team building • What do you learn in the classroom?

– Assess field learning and implications – – Focused work on business plan Guest speakers and instructors • Goal: to move from a class project to a proto-business.

SI Agenda 2011

• • • • • • • Two day design thinking workshop by Quicksand.

Half day workshop on community relationships by Sridhar Pabbisetty, CHF International.

Three to four days onsite with CCD - Madurai or Samuha - Bangalore to observe in depth a successful social venture.

Regular interactions with technical and marketing experts from Honeywell India.

Interactions with venture experts from the University of Minnesota, including post the SI.

Other speakers and guests from social ventures in India (Ashoka, Arghyam, etc.) Review in front of potential investors.

Post Summer Institute

• What do you need to cross the chasm?

– – – – Time to refine plans and assumptions Some financial support Mentoring Seed funding Beginning of class End of class Summer Institute Post Institute, working to launch

SUMMARY

How Do

YOU

Do This?

How Do

YOU

Do This?

•

“Be the change that you want to see in the world”

– Mohandas Gandhi •

"We all have dreams. But in order to make dreams come into reality, it takes an awful lot of determination, dedication, self-discipline, and effort.”

– Jesse Owens