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Winning Strategies for the Solution Economy
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In a recent survey of millennials in which Deloitte asked about the primary purpose of business, the most frequent response was “to improve society.” For any business enterprise, taking on social troubles comes with risks, but potential payoffs are huge. This article looks at how the solution economy is eroding the border between public and private sectors and discusses how businesses can best find opportunities in social challenges. It examines projects such as Unilever’s Project Shakti in India, which addresses sanitation needs while lifting women and families out of poverty, and Coca-Cola’s installation of the Slingshot, a water purification unit, in many rural parts of the world.<br><br>The authors identify six key features of successful, multi-rational business strategies. <ol><li>When entering the solution economy, everyone should use a wide lens to assess the target markets and what they offer in terms of problem solving.</li><li>Disruptive technologies are key to success.</li><li>Keep the door open to new business models (e.g. franchising tailored specifically to underserved markets through partnerships with local entrepreneurs and community groups). </li><li>Reputation, public data and citizen ingenuity can offer non-financial but tangible ways of fueling innovation. </li><li>Think about creating platforms that exchange public value. </li><li>Multi-rational strategies require multi-lateral relationships.</li></ol>