Purpose Innovation driven “purpose bundles”, are products and services from variety of related and unrelated industry providers that are bundled together by a powerful "purpose causal chain (PCC)", for a value (price), in proportion to consumers’ PURPOSE SCORES. An example of PCC being – H&W/Green consumers, getting a better value when they purchase a PCC bundle of “health insurance with a set of H&W based durable and non durable P&S’s along with a workout service” in a price that is in proportion to their purpose scores. The rationale here is that- those consumers, who eat healthy, apply natural body treatments and exercise well, in general, will also lead a healthy life - and hence deserve a better insurance premium and so on and so forth.
Similarly, one can, also come up with lot more combinations of such PCC bundles (spanning across H&W, energy, micro financing, insurance, commodity/option/derivative trading etc) – to motivate both consumers and providers, to come together to create a powerful "purpose value chain driven, collaborative, purpose market place", for the larger benefit of the society, as explained later within the solution section. The fact that purpose bundles are tied together by this powerful “purpose causal chain based purpose scores”, it will motivate both consumers and providers alike, to actively promote this type of a market place with a vested interest of increasing their purpose scores and market shares respectively– thus, creating a win: win value proposition for all parties involved.
To cap it all, Purpose Innovation has a huge opportunity to revolutionize healthcare reform as well, especially within US and other developed economies, given the fact systemic problems like healthcare reform, in our humble opinion, need a systemic solution like Purpose Innovation.
Although there is so much talk on the topic of purpose, including the green and social responsibility agendas, still they have not become RELEVANT and PRACTICAL for large corporations (and consumers), especially when it comes to their day to day business and life. In other words, purpose agendas, are still being treated as a decorated corporate PR activity for large corporations, and so, the need of the hour, is a compelling innovative approach, to motivate both corporations and consumers alike, to implement purpose principles, in their day to day life and make purpose, an everyday activity like consuming air and water!
One such compelling innovative approach, we are proposing is Purpose Innovation (with Purpose models, Purpose bundles and Purpose platforms), to motivate corporations and consumers alike, to be part of a purpose value chain, so that they can experience better value in their day to day purchase/consumption life cycle of H&W/Green products and services, in proportion to their PURPOSE SCORES.
- Boundryless purpose models - A stirred up view of edge opportunities, in the form of a “pull value chain” disrupting the traditional boundaries of related and unrelated industry verticals (CPG, Retail, Telecom/Hi-Tech, health care, Pharma, Insurance, Banking etc.) – who are knitted together by a causal purpose value chain such as Health &Wellness/Taste & Beauty, Sustainability/Maintainability, Mass Market/Personalized, Shareholder value/Community value and Externality/Internality - to name just a few.
- Boundryless Purpose bundles - A “causal chain” based dynamic bundle of products and services with a set of positive value incentives that are shared among all the players of the purpose value chain (consumers and participants alike) who helped to create them- as incentives help catalyze collaborative action.
- Boundryless Purpose platforms* - A flexible foundational platform design that help to change the characteristics of the underlying product and services without changing the platform design significantly using the emerging technology and manufacturing/supply chain best practices - a huge capital cost saver.
While open innovation focuses on leveraging third party resources to support organizations’ product and/or business model innovations, institutional innovation, in some cases, also expands the scope to include the core operating processes of partner’s value chain – but, still within a single or related industry verticals. On the other hand, purpose innovation goes few steps further – by creating a “pull value chain” across both related and unrelated industry vertical boundaries in the form of purpose models, purpose bundles and purpose platforms – that are knitted together with a powerful “purpose causal chains driven purpose scores”.
Pull driven Purpose Value Chain Market Places
This "pull driven purpose value chain market places", unlike the push model encourages decentralized, yet loosely coupled interactions among its players from both related and unrelated industry verticals facilitating much broader type of collaborative innovation, in proportion to their purpose scores. This purpose score based model in turn inherently makes the participants to come together with a purpose causal chain relationship, thus making them highly scalable with diverse, yet complimentary set of players.
Pull driven Purpose value chain, in addition also pulls consumers in to the purpose value chain by providing valuable incentives in the form of purpose bundles. In other words, pull value chain makes consumers as passive virtual business partners within the purpose value chain market place, thus making consumers as their lifelong partners creating a different kind of consumer loyalty -called “composite brand loyalty”.
The 3P’s (Purpose Models, Purpose bundles and Purpose platforms) Explained
Purpose models are the revolutionary game changing business models that not only just reinvent the firm from product/business model innovation standpoint, but also, mutate the DNA of the brand at the nucleus level and make them to be a part of a “pull value chain” composite brand. In other words, business models usually shuffle the value chain activities of the firm within the four walls of the firm (or at the maximum within the industry or related industry verticals) whereas, purpose models go few more steps further - shuffle the value chain activities of both related and unrelated vertical boundaries– and, then re-purposes the vision/mission of those brands (as both standalone and composite brands), with a causal chain based purpose bundles- that are knitted together by the “forces of attraction” resulting from balancing the “purpose value opposites”.
Similarly, Purpose bundles are the causal chain based “consumer consumption” driven “day in the life” type dynamic bundles of products and services from variety of related and unrelated industry vertical providers that are bundled together by the “forces of attraction” from the “value opposites” – thus, providing a better value for the purpose minded consumers who are committed to a leading a purpose life style. For example, under this model, a Health and Wellness/Green minded consumer (who is also a passive partner of the pull value chain), will get a better value when they purchase a dynamic purpose bundle of “health insurance along with a variety of H&W based durables and non durable P&S and workout services” in a price that is in proportion to their purpose scores. The causal chain relationship rationale here is that- those consumers, who eat healthy organic food, apply natural beauty treatments to their bodies and exercise well will have a healthy life - and hence they deserve a better health insurance premium and so on and so forth. Extending the context of the this causal chain rationale, one can also say- that the more products and services consumers add to their causal chain - the more their purpose scores - and hence, better the value.
Likewise, Purpose Platforms are the foundational infrastructure enablers of the purpose models (and purpose bundles) providing the flexible platform design (with principles like JIT, lean manufacturing, tapered integration etc.) to help change the “relevance, access and value” characteristics of the underlying products and services - without significantly changing the platform design. This is a great value-add feature – that these purpose platforms are designed with a flexible design using emerging cloud based miniaturized manufacturing technologies (& nano- technologies) - as they help to change the characteristics of product and services without changing the underlying platform design – which is huge capital cost saver for the "pull value chain" participants.
- Purpose agenda gets blended in to the day to day business of corporations and consumers, given the fact, consumers are motivated to purchase H&W/Green P&S’s in proportion to their purpose scores – because higher their purpose scores, better the value from variety of products and services from multiple providers.
- Purpose innovation has a huge opportunity to revolutionize healthcare reform, especially within US and other developed economies.
- Purpose agenda moves from a decorated PR activity into the day to day business activity and gets blended into the part and parcel of corporation’s business model.
- With more people consuming H&W/Green brands, it is good for the environment.
- More money gets allocated for Green research and clean energy.
- Externality gets incorporated as part of P&S price.
- Brings down the cost of H&W/Green brands and so bottom of the pyramid can also afford them, thus improving the social responsibility agenda.
- Take baby steps and try to create purpose bundles that are made up of P&S from single firm (or four walls) in proportion to company managed purpose scores.
- Extend that bundle with close business partners within related vertical providers.
- Slowly build the momentum for boundaryless purpose causal chain based bundles.
- Influence Washington and see if the concept can help revolutionize healthcare reform.
- Take the concept global.