Business Modeling for the Sustainability of Humanitarian Projects
Business Modeling for the Sustainability of Humanitarian Projects
Darshan Suresh Rathi and Ali M.S. Zalzala
Background
An RFID Individual Tracking and Records Management Solution (RFID-ITRM)
has already been implemented in 2011 in the slums of Ahmedabad, India, at a very
low cost and is proving to be very effective among the poor people (Chia
et al. 2013).
The system has highly scalable properties and may create a great impact on the
communities if used at large scale. However, larger-scale deployment and everlasting
impact on the community need the solution to be self-sustainable on the long
run. The initial costs of the project may be borne by public or private donations, but
running over a longer period a sustainable business model is needed.
Field Location
Ramapir No Tekro, also known as the Tekro, is the largest slum area in
Ahmedabad, located across the street from the Gandhi Ashram, and managed by
the NGO Manav Sadhna. Home to approximately 150,000 residents, the slum
consists mainly of people falling under the classification of scheduled caste who
are originally from villages around Gujarat or potter families from Rajasthan. The
entire development is considered an encroachment because the land is owned by the
government and is therefore temporary, although people have been living in the
Tekro for over 50 years. Today, through government attention, most of this slum
area has electricity, water, sidewalks, and a gutter system. However, due to problems
with addiction, health issues, superstitions, high-interest loans, and illiteracy,
many slum dwellers continue to live in the same cycle of despair and poverty. They
earn their incomes by driving rickshaws, rag picking, cleaning homes, shining
shoes, and working as potters or day laborers.
After analysis during the initial stages of administering the education project
with the community members, Manav Sadhna came to know about a need for
quality and cost-effective healthcare facilities for the members. And thus, with the
help of the local community, a medical clinic was set up in certain parts of a local
temple near the community center.
The Business Model
A business model describes the rationale of how an organization creates, delivers,
and captures value. It is composed of nine different building blocks which describe
the way value is created along the different processes of a system: customer
segments, value propositions, channels, customer relationships, revenue streams,
key activities, key resources, key partnerships, and cost structure (Figs. 13.1, 13.2,
and 13.3).
Customer Segments
Different customer groups can be segmented depending on the severity of their
illness: the greater the severity of the illness, the more follow-up costs and additional
care are required for that customer. Different patients are broadly categorized
into five customer segments.
Normal Illness (clinic): People having normal illness may visit the clinic
directly. They may directly get treated and would at the most visit twice or thrice.
They would not have any association with the community health care worker
(Raman) unless they show symptoms of some major illness and have to be referred
to some hospital for further treatment. This is the most profitable segment in
monetary terms, and if proper diagnosis and treatment is done at this segment, it
prevents patients in this segment from entering the other segment (however, there is
a 10 % probability of patients in this segment entering the other two segments). The
monthly average of patients with normal illness is around 250 (source: clinic
helper).
Severe Illness: People who are diagnosed with certain noncommunicable
chronic diseases like malaria, diarrhea, jaundice, etc. These diseases require adhering
to the treatment schedule strictly and hence also need regular follow-up by the
community health care worker. People usually don’t complete the entire course of
their medication; once they feel better by taking initial treatment, they stop taking
medicines and necessary precautions. Thus, regular follow-up over the entire
treatment period is required by the community health care worker. Also such
patients may need additional help with regard to some tests which need to be
conducted like blood sample, urine tests, etc. which are needed to further diagnose
the disease. Such patients need to be referred to external nursing homes and
pathology labs, either government owned or privately funded. Hence, a direct
referral system is being executed for the same. These patients need to carry a
referral letter from the community health care worker or the doctor at the clinic,
and most of the time, their treatment at the external institute is done free of cost.
Treatment cycle lasts for around 3 weeks. The average number of patients covered
under this segment by the community health care worker are as follows:
follow their medication regime: 2 per month (Fig. 13.4)
Extremely Severe Diseases: Patients who are diagnosed with extremely severe
chronic diseases like cancer, HIV, tuberculosis, etc. who need extreme care and
regular follow-up by the community health care worker for their treatment. Such
patients usually don’t continue their treatment after specific period; hence, regular
follow-up by the community health care worker is required. They also need to visit
the hospital for treatment on a regular basis, the community health care worker
usually accompanies them on their visits and helps them with their queries if any
regarding the treatment; if the treatment costs are too high and the patients can’t
afford it, he tries to convince the authorities over there to give some concession and
thus tries to reduce the treatment costs. In certain cases, if the need arises, Manav
Sadhna arranges for the funds from its account. Number of patients in this segment
covered by the community health care worker are as follows:
visits the various Anganwadis on a monthly basis and checks for malnourished
kids and follows up with their parents to find out the cause for the same. He also
advises the parents on different aspects in which they can provide nourishment to
their kids and what the ill effects of malnourishment are and how it affects the
health of the child. He advises them on the different cost-effective ways in which
they can provide healthy foodstuff to their kids.
Darshan Suresh Rathi and Ali M.S. Zalzala
 |
| Business Modeling for the Sustainability of Humanitarian Projects |
Background
An RFID Individual Tracking and Records Management Solution (RFID-ITRM)
has already been implemented in 2011 in the slums of Ahmedabad, India, at a very
low cost and is proving to be very effective among the poor people (Chia
et al. 2013).
The system has highly scalable properties and may create a great impact on the
communities if used at large scale. However, larger-scale deployment and everlasting
impact on the community need the solution to be self-sustainable on the long
run. The initial costs of the project may be borne by public or private donations, but
running over a longer period a sustainable business model is needed.
Field Location
Ramapir No Tekro, also known as the Tekro, is the largest slum area in
Ahmedabad, located across the street from the Gandhi Ashram, and managed by
the NGO Manav Sadhna. Home to approximately 150,000 residents, the slum
consists mainly of people falling under the classification of scheduled caste who
are originally from villages around Gujarat or potter families from Rajasthan. The
entire development is considered an encroachment because the land is owned by the
government and is therefore temporary, although people have been living in the
Tekro for over 50 years. Today, through government attention, most of this slum
area has electricity, water, sidewalks, and a gutter system. However, due to problems
with addiction, health issues, superstitions, high-interest loans, and illiteracy,
many slum dwellers continue to live in the same cycle of despair and poverty. They
earn their incomes by driving rickshaws, rag picking, cleaning homes, shining
shoes, and working as potters or day laborers.
After analysis during the initial stages of administering the education project
with the community members, Manav Sadhna came to know about a need for
quality and cost-effective healthcare facilities for the members. And thus, with the
help of the local community, a medical clinic was set up in certain parts of a local
temple near the community center.
The Business Model
A business model describes the rationale of how an organization creates, delivers,
and captures value. It is composed of nine different building blocks which describe
the way value is created along the different processes of a system: customer
segments, value propositions, channels, customer relationships, revenue streams,
key activities, key resources, key partnerships, and cost structure (Figs. 13.1, 13.2,
and 13.3).
Customer Segments
Different customer groups can be segmented depending on the severity of their
illness: the greater the severity of the illness, the more follow-up costs and additional
care are required for that customer. Different patients are broadly categorized
into five customer segments.
Normal Illness (clinic): People having normal illness may visit the clinic
directly. They may directly get treated and would at the most visit twice or thrice.
They would not have any association with the community health care worker
(Raman) unless they show symptoms of some major illness and have to be referred
to some hospital for further treatment. This is the most profitable segment in
monetary terms, and if proper diagnosis and treatment is done at this segment, it
prevents patients in this segment from entering the other segment (however, there is
a 10 % probability of patients in this segment entering the other two segments). The
monthly average of patients with normal illness is around 250 (source: clinic
helper).
Severe Illness: People who are diagnosed with certain noncommunicable
chronic diseases like malaria, diarrhea, jaundice, etc. These diseases require adhering
to the treatment schedule strictly and hence also need regular follow-up by the
community health care worker. People usually don’t complete the entire course of
their medication; once they feel better by taking initial treatment, they stop taking
medicines and necessary precautions. Thus, regular follow-up over the entire
treatment period is required by the community health care worker. Also such
patients may need additional help with regard to some tests which need to be
conducted like blood sample, urine tests, etc. which are needed to further diagnose
the disease. Such patients need to be referred to external nursing homes and
pathology labs, either government owned or privately funded. Hence, a direct
referral system is being executed for the same. These patients need to carry a
referral letter from the community health care worker or the doctor at the clinic,
and most of the time, their treatment at the external institute is done free of cost.
Treatment cycle lasts for around 3 weeks. The average number of patients covered
under this segment by the community health care worker are as follows:
- Direct referral: 25 per month
- Follow-up: 15 per month
- Number of patients who don’t adhere to their medication cycle: 5 per month
- Patients who usually enter the extremely severe disease segment as they don’t
follow their medication regime: 2 per month (Fig. 13.4)
Extremely Severe Diseases: Patients who are diagnosed with extremely severe
chronic diseases like cancer, HIV, tuberculosis, etc. who need extreme care and
regular follow-up by the community health care worker for their treatment. Such
patients usually don’t continue their treatment after specific period; hence, regular
follow-up by the community health care worker is required. They also need to visit
the hospital for treatment on a regular basis, the community health care worker
usually accompanies them on their visits and helps them with their queries if any
regarding the treatment; if the treatment costs are too high and the patients can’t
afford it, he tries to convince the authorities over there to give some concession and
thus tries to reduce the treatment costs. In certain cases, if the need arises, Manav
Sadhna arranges for the funds from its account. Number of patients in this segment
covered by the community health care worker are as follows:
- Patients who need regular follow-up: 15 per month
- Number of visits to the hospital by the community health care worker: 24 per month
- Patients who need special concession for their treatment expenses: 30 per annum
- Number of patients for whom funds are arranged by Manav Sadhna: amount more than Rs. 10,000, 2 per year, and amount less than Rs. 10,000, 12 per year
visits the various Anganwadis on a monthly basis and checks for malnourished
kids and follows up with their parents to find out the cause for the same. He also
advises the parents on different aspects in which they can provide nourishment to
their kids and what the ill effects of malnourishment are and how it affects the
health of the child. He advises them on the different cost-effective ways in which
they can provide healthy foodstuff to their kids.
- Number of Anganwadis covered under this scheme: 6 per week, 25 per month
- Number of kids who are malnourished and need follow-up with their parents: 10 per month
- Number of kids in these 25 Anganwadis: 750
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