The lack of clean water remains a critical public health challenge throughout the developing world, and developing viable, sustainable programs is part of this challenge. This presentation describes a business model that was developed in partnership with a Dominican Republic NGO through a NCIIA Sustainable Vision grant. The program incorporates elements of health promotion, social marketing, microfinance and local entrepreneurship to help the rural poor purchase point-of-use water filters. The presenters will share their experiences and lessons learned.

1. Chris
King
&
Jason
Kennedy
Saint
Louis
University

2. Project
Goals
 Develop
a
Sustainable
Entrepreneurial
Model
for
the
Sale
of
POU
Filters
 Develop
the
Capacity
of
an
NGO,
ILAC,
to
implement
this
model
 Improve
quality
of
life
in
the
rural
DR
by
increasing
economic
opportunity
and
reduce
disease

3. Ins/tute
for
La/n
American
Concerns,
San/ago,
DR
40
years
of
service
to
North
Central
DR
Provide
a
variety
of
Services
 Health
Education
 Medical
 Agricultural
Extension
 Microfinance
 Drinking
Water

4. Cooperadoras
 Key
to
ILAC’s
Success
 Elected
by
community
 Volunteer
Position
 Certified
after
one
year
 Continued
Education

5. Established
Program

7. NCIIA
Sustainable
Vision
Grant
 Hire
a
full
time
coordinator
 Establish
a
Supply
Chain
 Establish
network
of
entrepreneurs
 Finance
cost
1
year
(US
$33)
 Funds
Revolve

8. Cost
Structure
Item
Cost
Percent
Components
$18.00
0.55
Salary
$7.25
0.23
Incentive
$1.50
0.05
Bad
Debt
$2.75
0.08
Administrative
$3.50
0.11
Totals
$33.00
1.00
Cost Recovery at Sale of 440 Units

10. Lessons Learned

11. Only
a
business
model
that
is
culturally
submerged
can
achieve
scalable
and
sustainable
success.

12. Thanks
to
our
Program
Partners
and
Par/cipants
Creighton
University
ILAC
Center
Participants:
Dr.
Gary
Michels,
CU
Dr.
Roger
Lewis,
SLU
Dana
Hage,
MPH
Our
thanks
to
NCIIA
for
their
generous
support
this
program

14. Presenta/on
Overview
 Introduction
 OUR
GOAL:
TELL
YOU
OUR
STORY;
STORY
IS
ABOUT
PEOPLE
WE
WORK
WITH;
THINK
OF
OUR
PRESENTATION
AS
THE
PICTURE
BOOK
TO
HELP
INTRODUCE
YOU
TO
OUR
PARTNERS
(NOT
T YPICAL
POWERPOINT
PRESENTATION)
 Background/History
of
Program
 Pre-­‐NCIIA
Program,
ILAC,
Mission
of
ILAC,
etc.
(Larger
picture
&
how
project
fits
in;
3-­‐4
minutes)
 NCIIA
grant
starting
2
years
ago
(4-­‐5
minutes)
 Goals
of
NCIIA
grant;
Project
design
 Story
of
what
has
happened
with
NCIIA
project
(successes
&
failures)
 Based
on
existing
program
&
network
 Explanation
of
what
went
well,
what
problems
we
hit,
where
project
is
now
 End
Points;
Evaluation
(Important
Point;
tough
for
a
project
like
ours,
but
do-­‐able),
Future
of
Project
 Transition
to
discuss
how
we
made
some
key
choices
 Our
Key
Choices
(4-­‐5
minutes)
 Easy
Choice:
Technology
(Filter)
 Maybe
easiest/least
important
decision
 Think
practical
&
about
consumer
 First
Instinct:
My
Design
Considerations
 High
Removal
%,
High
Flow
Rate,
High
Storage
Capacity
 Alternative:
Think
practical;
think
local;
talk
to
people
 Doesn’t
break,
easy
to
transport,
low
cost
 Our
choice:
there
are
hundreds
of
filter
programs
purifying
water
through
a
dozen
different
mechanisms;
YOUR
JOB
IS
TO
KNOW
THE
OPTIONS
BEHIND
YOUR
PROJECT
&
TO
CHOOSE
THE
MOST
APPROPRIATE
–
BASED
ON
A
VARIETY
OF
FACTORS,
INCLUDING
AVAILABILITY,
RELIABILITY,
COST,
AND
YOUR
SPECIFIC
DESIGN
REQUIREMENTS
 Tougher
Choice:
Business
Model
(Cost
Breakdown),
Distribution
Network,
Business
Model
(Filter
Model)
 Key
Message:
Know
your
choices;
even
if
one
choice
is
obvious,
know
alternatives
&
have
backup
plans;
Don’t
be
afraid
to
make
changes
as
you
go
 Business
Model:
Components
&
Decisions
 Cost
Breakdown:
Know
Your
Distribution
Network
(everyone
needs
to
be
compensated
in
some
fashion
 Look
at
entire
path
of
product
from
design
to
end
user
 Think
through
fair
compensation
 You
must
have
a
knowledge
of
motivations
of
people
in
country
&
along
your
supply
line
 Motivation/compensation
may
not
always
be
intuitive
&
may
be
lower
cost
alternatives
to
your
initial
ideas
 OUR
COST
MODEL
 ALTERNATIVES:
GOVERNMENT,
USAID,
DIRECT
COST
APPROACH,
LOCAL
SUPPLIERS
(COLMADOS)
 Distribution
Network
 Access
to
end
user
is
key
&
will
vary
widely
depending
on
desired
end
user
of
product
(Think
American
living
in
NYC
versus
farmer
living
20
miles
from
town
vs.
Dominican
with
no
mode
of
transportation
vs.
remote
village
with
even
more
limited
access
 USE
EXISTING
NETWORKS
AS
MUCH
AS
POSSIBLE;
DON’T
RECREATE
THE
WHEEL
 OUR
CHOICE
–
EASY
INITIAL
NETWORK;
LOOKING
FOR
NEW
NETWORKS
(SANTO
DOMINGO,
PERU,
GUYANA;
LOOKING
FOR
EXISTING
NETWORKS
IN
ALL
OF
THESE
PLACES)
 Use
existing
network
&
partnership;
minimize
creation
of
new
networks
and
maximize
usage
of
product
in
existing
network
 ALTERNATIVES:
SIMILAR
TO
THOSE
FOR
COST
BREAKDOWN;
STORES,
COMMERCIAL
SELLERS
–
DISSADVANTAGE
IS
LACK
OF
OVERSIGHT
ON
PROGRAM
&
ABILITY
TO
PROVIDE
TRAINING/ENSURE
USAGE
(WE
REACH
FEWER
PEOPLE,
BUT
ARE
MORE
EFFECTIVE
WITH
THOSE
CONTACTS
–
FITS
ILAC
MISSION)
 BUSINESS
MODEL
–
DESIGN
CONSIDERATIONS
 DESIGN
NEEDS
TO
BE
APPROPRIATE
FOR
BUSINESS
 WE
DISTRIBUTE
TO
A
WIDE
AREA
FROM
SINGLE
CENTRAL
LOCATION;
THEREFORE
SIZE,
WEIGHT
WERE
KEY
 Conclusion
–
You
are
going
to
have
problems
you
can’t
anticipate,
but
making
conscious
choices
will
help
keep
you
in
the
right
direction
 Be
wiling
to
make
changes
in
the
end,
work
quickly,
but
be
mindful
of
effects
of
changes
to
whole
downstream