The Power of Ma rket-Crea ting Innova tion

Ideas from The Prosperity Paradox

@ Globa lCCI @ GlobalCCI
Ideas from The Prosperity Paradox

1. The consumption and nonconsumption economies

2. Not all innovations are created equal

3. Push versus Pull

4. The Market-Creating Innovation Lab

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Consumption and Nonconsumption
$$$$$$

$$$

Lots of
$ nonconsumers

@EfosaOjomo
 Barriers to consumption

Access Time Money Skill

Ideas from The Prosperity Paradox

1. The consumption and nonconsumption economies

2. Not all innovations are created equal

3. Push versus Pull strategies

4. The Market-Creating Innovation Lab

5
 Sustaining innovations
make good products better
• Improve margins & market share
•
Time

Creates little net growth

• Example: new camera on phone,
new student center on campus

Market-Creating Innovations
make products affordable and Efficiency Innovations
accessible make good products cheaper
• Creates growth Three types of • Eliminates jobs
• Creates jobs • Increases free cash flow
• Needs capital
innovation
• Example: outsourcing,
resource extraction
Mainframe industries
computers
Personal
computers
Smart
phones

6
Resources reinforce efficiency innovations

Mexico
Nigeria
Rus s ia
S outh Africa
UAE
Venezuela
 Characteristics of Innovation
Market-creating* Sustaining Efficiency*

• Requires capital • Requires less capital • Requires much less capital

• Longer payback • Medium payback period • Shorter payback period
• Market doesn’t exist • Market exists • Market exists
• Internal process • Internal process • Internal process alignment
misalignment alignment

*Can be disruptive
Which country is this ?
70% 195/1000 20%

52% 10% 45
Isaac Singer’s sewing machine
Henry Ford’s Model T
Ideas from The Prosperity Paradox

1. The consumption and nonconsumption economies

2. Not all innovations are created equal

3. Push versus Pull strategies

4. The Market-Creating Innovation Lab

12
Pushing well-intentioned solutions rarely works

Lack of water Wells

Lack of education “Free” Schools
Lack of infrastructure Roads and bridges
Lack of healthcare “Free” Hospitals and Clinics 13
How innovations create prosperity. By pulling
Building $1.5B 16 players $350M in
deep sea port in market investments

Millions of
$1 billion dollars in
revenues taxes

Honesty Distribution
Education Agriculture

42,850 jobs 13 factories 8,500 Electricity &

in supply chain direct jobs Water treatment 14
The Power of Market-Creating Innovations
Transparency and One billion
>100 players
governance subscriptions
in market

Mobile Billions of dollars

health in investment

Agriculture $20 billion in taxes

Education Infrastructure

Financial
4 million jobs $200 billion
services
economic value 15
Source: GSMA
The Market-Creating Innovation Lab
Find Build Scale

The highest use of capital is not to make more money, but to

make money do more for the betterment of life.
- Henry Ford 16
The MCI Lab Agenda

1. MCI Playbook
2. Developing a Policy Framework for MCIs
3. MCI Workshop
4. Nonconsumption & MCI Report
5. Principles of MCI
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