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Market-‐Linkage EntrepreneurshipCase studies, reflections, and tricks of the trade
By Ahmed Huzayyin -‐ Cleantech Arabia
Sustainable Business Circles
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Cleantech Arabia Approach
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Sustainable Production and Entrepreneurs
• While there is NEED it is not translated into demand
• Shortage of raw material, energy, and water is not translated into more sustainable efficient utilization of resources
• In Egypt the market is pivoted on client initiated projects
• In existing dynamics the new is at a disadvantage
Client
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Roots of the Problem
• Sustainability services and products are still largely seen as complimentary to industrial activities and motivated by
ü Policies (regulations or incentives)
ü Environmental and CSR
• It is the responsibility of innovators in this field to demonstrate that there is money to make in being more sustainable
ü Resource efficiency
ü Renewable energy
ü Waste management
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Why to Support Startups, A market perspective
• Startups have higher capacity to bring innovation and much needed solutions
• The more the merrier
• Startups forces existing entities to innovate and provide better service to clients
• Developing the supply is as critical as developing demand for a developing market
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
What Needs to be Changed
• Startups face extra challenges in efforts related to changing need into demand
• Client faces challenges in attempting new products and services with a new player
• Regular bidding and procurements rules does not favor startups
• On the small scale of startup operations the consultant is likely absent
• In sustainability services/products clients capacity to distinguish good startups from not so good ones is limited
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Client aware of Needs and demands
Client capable of scanning the market including startups
Client relies has restricted choices to major players
Client not aware of needs nor demand Everybody losses
Everybody wins
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Whatever it is What We Do
• Non-‐profit activities of Cleantech Arabia are powered by volunteers from consultancy background in sustainability service
• Connections with clients already exist or not
• A Volunteer package of free consultancy is offered to client to develop a project improving sustainability and generating profits
• In exchange the client is asked to contract a startup
• Startups are identified and provided with capacity building
• The project is implemented under supervision of volunteer consultant/expert
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
City Center Mall –Ein Elbiaa – Organic Waste to Compost
• Mall operations scanned
• Saving opportunity was identified on changing organic waste into compost
• Business case developed
• Startup received support in technical aspects and managerial aspects (developing contracts/financial and technical proposal)
• Support in contract negotiations and supervision of kick start of operations
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Dream Park – Tadweer – PET Recycling
• Bahgat Group already a client for energy efficiency and renewable energy solutions
• Opportunity for dream park to earn money on selling PET (Plastic bottles) waste
• Tadweer works in PET recycling
• Tadweer is to provide PET collection services and purchase PET from dream park securing raw material at reduced price
• Pricing negotiated based on consultant experience
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
IRSC – Dayra – Waste to Energy
• IRSC is a client for waste recycling contracts a major multinational chemical industry to transport and safely disposes its waste
• Cleantech Arabia identifies the possibility of transforming waste into energy source to energy intensive industries
• Proper documentation of safe waste disposal is of value multinational client KPIs
• Dayra startup partners with IRSC to ensure waste ends as energy source to energy intensive industries that has been an existing client of Dayra
• Support in contract terms
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
IRSC – Dayra – Waste to Energy
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Partnership with PWC – Towards a methodology
• Can we approach someone outside our network?
• Can we go deeper into the operations of Industries?
• Can we involve students?
• Can we help people change through technology?
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
PWC – Gaia PV System
• Opportunities scanned, green rough and PV short listed
• PV System recommended for inner court
• Facility management involved and convinced
• System specs are indicated by Cleantech Arabia
• Gaia receives capacity building in developing proposal
• System implemented
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Savola – In progress
• Savola CSR approached to develop and identify opportunities in Sokhna plant and Amrya Plant
• PWC-‐Cleantech Arabia team did site surveying for plants to assess material, water, and energy performance
• Resource efficiency auditing, good type of auditing J
• Energy, water, and material indicators and potential saving on energy efficiency and resource efficiency are identified
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Savola – In progress
Percen
tage
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Savola – In progress
• Typical output
ü Percentage EGP saving per ton of product on energy, water, and material
ü Comparison to international average and best practices
ü Highest saving potential identified in material efficiency
• Potential money making sustainability options are offered to operation and engineering team
• Sugar mud to organic fertilizers opportunity identified
• Program to be launched for students soon
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Winning Aspects
• Solution must be presented in terms of technical, financial, and environmental impact
• Start with small opportunities that are less deep in operation and makes money even if sustainability impact is not the highest
• Spotting opportunities must be done in terms of what is suitable for startups
• An existing relation with the startup helps
• Leverage consultancy experience and previous projects
• Be fair to the client
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Challenges
• Some startups are not developed enough to address client needs
• Involvement of consultant might need to be extended to assure the client
• Startups in the field are not diverse enough to cover the wide spectrum of opportunity
• Procurement and bidding rules put an upper limit on the size of the project developed
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Lessons Learnt
• Never go with a pre-‐set idea, you will never know what pays off
• Develop business case to empower operational teams and CSR in addressing upper management
• Startups must be well screened and might need capacity building
• The role of the honest broker is crucial to success of such project
• Protect the client, offer options, and understand their way of work
Never give up J
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Win -‐ Win
• Material use and energy use improved for all clients
• Jobs created (startup) and upgraded (Client)
• About 250,000 EGP saved for clients and profit to startups
• Clients become more open to looking for sustainability measures and hire startups (1 clients ended up investing in the startup)
• Startups capacity raised
• Startups managed to further promote their activities based having a big client in their previous projects list
GIZ – RIBH MENA -‐ Sustainable Business Circles Oct 27th, 2015
Market Dynamics – Leveling the Play Field – Case Studies –Tricks of the Trade – Challenges and Lessons Learnt – Impact
Thank you
very much
