Erica Elk Innovation Presentation

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    organisational

    box

    thinkingnout o f the

    Tellyouabitaboutusandwhatwedo

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    StartedinNovember2001

    In7thyear

    Missionisaconslidationof7yearsoflearning

    Section21 notforprofit

    Jointlyinitiated

    by

    DED&T

    and

    CPUT

    Govtidentifiedcraftasjobcreator/incomesupport

    CPUTidentifiedneedtochangedemographicsoflearners;andget graduates

    involvedindevelopment(notjustmainstreameconomy)

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    dynam ic, crea tive, confidentpeople producinginnovative world-class

    handmadeproducts reflec ting theWestern Cape a nd South Africa

    vision

    Some of you may not know our vision

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    best practice Institute

    developingpeopleto build profitable ente rprises

    with marketable productsfor glob al ma rkets in an ena bled environment

    mission

    And our Mission

    Whats important here is our emphasis on People and products. Without theconfident, creative and resourceful people there would be no product or atleast no product worth selling.

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    co re p rogrammes

    We have three core programmes:

    Developing businessesSupporting their access to markets and finding new marketsAnd facilitating the development of creative skills and innovative thinking

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    supp ort programme s

    These are supported by another three programmes

    - getting us out there- Documenting and developing mateirals that have wider application-- communicating, spreading information, networking and marketing the sectorto increase opportunities and the consumer base

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    9years

    Ive stopped saying were a new organisation weve been around the block afew times; have learnt lots of lessons which we keep learning. And we andthe sector are growing

    (also a hint that next year we turn 10 and were the answer to your post-MegaEvent blues)

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    what d oes a 9-yea r o ld look like?

    2 staff >25R250k/annum >R18m/annum

    63 prod uc ers>1353ave rag e turnover grow th o f 94%

    383 outlets (from 10) >ove r ha lf withover half WC p rod uc ts

    (from 5% in 1999)

    From 2 people in a little corner office at CPUT we are 20+ occupying 3 floorsof a small building in the East City. Our reach is much greater because ofservice providers.

    Producers have grown we started with a list of 63 and this now is 1353

    Retail has grown started with a list of 10 now 383. But more importantlyfrom 5% WC stock now over 50% have over 50% WC stock

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    who do we work with?

    Ma r

    08

    Craft Enterprisesa 965

    Retailersa 376Servic e Prov ide rsa 202

    Assoc iate Sta kehold ersa 818

    Ma r

    09

    Nov

    09

    Craft Enterprisesa 1,105 1,369

    Retailersa 377 383Servic e Provide rsa 218 315

    Assoc iate Stakehold ersa 837 1,037

    While the focus of our work is on producers we network and reach people allacorss the value chain and beyond and growing

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    what d o they look like?

    58% new businesses (2001) forma l | informa l

    skilled | unskilled surviva list | exp ort rea dy

    Bla ck (79.5%) | white young | o ld

    rura l | urban (72%) a ll med ia

    d iverse markets d iverse motiva tions

    They have nice legsNearly 60% of the businesses on our database have started in the last 8years. This makes them vulnerable

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    how ma ny peop le d o they supp ort?

    Year Jobs EnterprisesAverage

    jobs/e nterprise

    2004 2,855 396 7

    2005 4,437 609 7

    2006 5,344 830 6

    2007 5,913 995 62008 6,169 1,105 6

    2009 8,860 1,369 6.5

    A signifnicant number of people are getting an income from the sector

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    wha ts our imp ac t?

    21 c ase stud ies

    now emp loy 450 peop le

    average earnings R2,200-R4,100

    annua l turnover from R40k to R350k

    supp ly on average 18 outlets

    70% exporting (to 12 c ountries)

    Last year did some research for TIPS in the Presidency of 21 producers growth in jobsGrowing in turnover-growth in income-growth in turnover-growth in formalisation supplying to retail as opposed to friends and family-growth in export

    21 people who have been serious, motivated, committed theyve done thehard work. We just supported them.

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    Most important impact is were moving people from the margins to themainstream. No amount of number crunching can find a value for what thatmeans to the people whos lives we are changing

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    so whereis the innova tion

    in this?

    So where is the innovation. Well it depends how you define it

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    innova tion a new wa y of do ing something or new stuff

    tha t is made useful

    inc remental and emergent or

    radica l and revolutiona ry c hanges

    in thinking, products, processes, ororganisations

    Invention an idea ma de m anifest

    innovation idea s ap plied in p rac tice

    [Wikipedia]

    The placement is consistent with the demographics of the province

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    The question we hate to but have to ask.

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    value c hain

    market de mand

    origination

    materials

    who lesale / retailproduction consumption

    service s | d istribution

    enab ling environment

    va lue c ha in

    In terms of our approach - we take a value chain approach - unique in the sector when we started whichwas dominated by supply side interventions- but has now become quite common practise

    While focus has been on producer - look at the producer in context of the market

    Value c hain/ ec onomic sec tor basedapproach

    Business and market-driven focus

    Ac t as a catalyst to ensure enab lingenvironment

    Develop Added Value servic es

    Build c apac ity o f entrepreneurs fo rIndependence

    Crea te a professional operating environment

    Build Partnerships to sp rea d benefit andincrease imp ac t (dont c omp ete)

    Promote the princ ip les of Fair Trade

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    CRAFTWHATISIT?

    What is Craft. In the 8/9 years I have been doing this job I spend a lot of my time

    trying to explain what craft is or what it could be if we can help it shed some of the

    baggage its accumulated over the last century or so

    and dispelling the pejorative myths of craft

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    CURIO

    as curio

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    ARTEFACTCULTURAL

    as cultural object that needs to be preserved and protected

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    JOB CREATION

    INCOMEGENERATION

    and as mediocre object that can easily be taught en mass to poor, marginalised people

    to generate sustainable livelihoods.

    Of course it is all of these things but theres more

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    CRAFT?art?design?

    andiledyalvane

    What about the huge school of ceramicists who turn and handbuild original, high

    quality objects

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    DESIGN?craft?art?

    haldanemartin

    the designers who make reference to local materials and skills in their products.

    Are they crafters? Artists? Designers? Producers? Makers? Artisans? Do they produce

    functional items or useless objects. What is the difference? Does it really matter?

    In my journeys I came across the writings of Paul Greenhalgh

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    My last word for tonight

    Buy local buy Handmade Cape

    Do your Christmas shopping at any one of the 383 shops in the Western Cape

    Buy your bulk gifts through our wholesale service

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    its not(only) abouttechnology

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    the myth of theepiphany

    themagicmoment;themuse;ideaasadiscreetthing.

    Insteadvaluehabits;thetimeputintoseekalternatives

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    Onecannotbeforeverinnovating.Iwanttocreateclassics.

    CocoChanel(FrenchFashiondesigner,18831971)

    Google20%rule(20%oftime gmail,adwordsetcstartedas20%projects)

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    b ig vision

    sma ll steps

    Big Vision Small steps

    Need to understand the problem and the change that is required foundationfor innovation

    "Innovationdistinguishesbetweenaleaderandafollower."SteveJobs

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    ba lanc ing la tera l thinking

    with due d iligenc e

    Lookingoutwards notinwards(seewhatisneeded) rigorousprocess;

    havingmanyideas,honingthemdown;understandingtheprobleminthefirst

    place;peopledontwantasixinchdrilltheywantasixinchhole

    Habits(andprocesses)ofinnovation

    Systematicwayyourunabusiness cantconstantlyiterateanddevelopnew

    ideas

    Needsleadership,communicationandcontrol(dealwithfearofchange)

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    lea rning by doing

    Mistakeswillbemade youwantthemtohappen(alongwithtakingrisks,seekingalternatives,Believeinanideaandfollowit..Pursuehunch failureisnecessary

    learnfromlessons

    Explorationandinnovation timelineis1015years

    Cultureof

    innovation

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    3rulesfromWilliamMcKnight(MinnesotaMining&Manufacture 3M).

    Trust

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    c rea ting hea lthy

    and limitless bound aries

    Moreaboutsociology;innovationmeanschange;mostpeoplefearchange

    Requiresinitiative(spacetodoso 15%timetoworkonnewideas) provemymanagerwrong(difficultthingforamanagertobeopento)

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    Some of the people and some of the activities

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    what wedo

    Welcome MEC, CCDI Board, Staff, Craft Producers, Service Providers, Partners,

    Funders, friends..

    I get to do the boring stuff while Reuben and the MEC can say the nice things thats

    a clue gentlemen. But Im going to try and distract you with pretty pictures.

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    thankyou|enkosi|dankie