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<h2 class="hd hd-2 unit-title">Core Aspects of Strategy for Scale</h2>
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<p>The goal for scaling in the context of a social enterprise is to increase overall impact rather than to only seek out ways to increase profit. There are many ways to think about how you will scale your impact – not least because there are many different paths to extend the reach of your work. To develop your Strategy for Scale, you'll go beyond refining how you describe the specific issue you aim to address (Impact Opportunity) and how you depict the linkage between what you plan to do and what it will accomplish.</p>
<p>Instead, it's best to refine your thinking about your Strategy for Scale by starting with interrelated sets of questions about <strong>how</strong> <strong>you will keep your work going</strong>:</p>
<ol>
<li><strong>Target Reach:</strong> <em>How wide or deep you want your impact to be</em>. Will you aim to affect more people? More of the environment? Will you aim to impact additional aspects of the problem for your initial population? Some combination of the above?</li>
<li><strong></strong><strong>Revenue Model:</strong> <em>Your approach to bringing in money to cover expenses such as staff, raw materials, etc</em>. Will you sell a product or service? Will you charge the same amount to everyone? Will you pursue donations or grants? <strong> </strong></li>
<li><strong>Input Efficiency:</strong> <em>How you will produce more impact for the same amount of money or materials</em>. Will increased production decrease per-unit costs? Are you able to shift some aspects of your work to other people or organizations that can do it more effectively? Will better technology improve staff productivity?<strong> </strong></li>
<li>As always,<strong> evidence or statistics</strong> to support your choices in the previous three items. Often, this evidence includes your results to date as much as external sources.</li>
</ol>
<p>Just as you might approach the same Impact Opportunity with several different Theories of Change, you can implement the same Theory of Change with different approaches to a Strategy for Scale. Make the most of the ideas we share here to challenge your thinking about extending your reach and impact, knowing that describing your Strategy for Scale involves making choices about your business model. This means that your description can still have a lot of meaning while being relatively short.</p>
<p>Scaling can be categorized as being either <strong>vertical</strong> or <strong>horizontal</strong>.</p>
<ul>
<li><span style="font-size: 1em;">Vertical scaling focuses on deepening an offering for the same setting and for existing customers. For instance, if a social enterprise relating to healthcare access were to create a partnership with a local clinic, then they could increase the amount or kinds of support that they already provide to their customers. Organizations often strive to scale vertically when they target a specific context or impact.</span></li>
<li><span style="font-size: 1em;">Horizontal scaling seeks to bring an existing offering to new contexts and customers. For example, if a social enterprise that was started in Chile expanded their offering to customers in Argentina, then this would be a form of horizontal scaling. Social enterprises tend to scale in this manner so that they can apply their solution to many people in different settings.</span></li>
</ul>
<p>These two forms of scaling, vertical and horizontal, do not exclude one another, since many social enterprises use both methods to further their impact.</p>
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<h2 class="hd hd-2 unit-title">LifeBank</h2>
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<p><img src="/assets/courseware/v1/ce684c0376781a3940e53284b09f7843/asset-v1:MITx+0.SolveX+2T2021+type@asset+block/Lifebank_Logo.gif" alt="Lifebank Logo" style="float: right;" width="300" height="109" /></p>
<p>LifeBank is based in Nigeria and provides critical medical products such as blood. Their approach enables a secure and reliable supply chain and better medical outcomes. Let's have a look at their Strategy for scale:</p>
<p style="padding-left: 30px;">LifeBank is building the supply chain engine for Africa’s healthcare systems, starting with blood. Our current revenue model is to charge a small logistics fee of $8 for the discovery and delivery of blood. We will win the Lagos blood market, launch in another Nigerian city and begin moving other essential medical products within a year. We will scale our project using a hub and spoke model where hubs are created in strategic locations, and our dispatch bikes serve as spokes.</p>
<p style="padding-left: 30px;">In addition to our core business of discovering and delivering essential medical products, we also plan to sell and license our technology products. For example, SmartBag, our blockchain powered essential medical product integrity solution, that records and preserves the integrity of information about the processes involved in blood supply, will be sold to blood banks and government health ministries. We also plan to offer consulting services to government health ministries that need assistance digitizing blood donor records and upgrading the technology used in their blood transfusion agencies.</p>
<p style="padding-left: 30px;">We are positioned for long-term sustainability because the $541M essential medical product African market remains under explored and LifeBank is currently one of the few players in the space.</p>
<p><strong>Additional Reading:</strong></p>
<ul>
<li><a href="https://lifebankcares.com" target="[object Object]">LifeBank's Website</a></li>
<li><a href="https://solve.mit.edu/challenges/frontlines-of-health/solutions/4898" target="_blank">LifeBank's Application to Solve</a></li>
</ul>
<p><em>Logo (c) 2020 LifeBank. All Rights Reserved.</em></p>
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Plan to Scale
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<legend id="f8219da63e02439e8cf661611ccbc453_2_1-legend" class="response-fieldset-legend field-group-hd">How does LifeBank plan to scale?</legend>
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<input type="radio" name="input_f8219da63e02439e8cf661611ccbc453_2_1" id="input_f8219da63e02439e8cf661611ccbc453_2_1_choice_0" class="field-input input-radio" value="choice_0"/><label id="f8219da63e02439e8cf661611ccbc453_2_1-choice_0-label" for="input_f8219da63e02439e8cf661611ccbc453_2_1_choice_0" class="response-label field-label label-inline" aria-describedby="status_f8219da63e02439e8cf661611ccbc453_2_1"> They plan to scale vertically by adding additional data tracking features to their core blood supply chain.
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<input type="radio" name="input_f8219da63e02439e8cf661611ccbc453_2_1" id="input_f8219da63e02439e8cf661611ccbc453_2_1_choice_1" class="field-input input-radio" value="choice_1"/><label id="f8219da63e02439e8cf661611ccbc453_2_1-choice_1-label" for="input_f8219da63e02439e8cf661611ccbc453_2_1_choice_1" class="response-label field-label label-inline" aria-describedby="status_f8219da63e02439e8cf661611ccbc453_2_1"> They plan to scale horizontally by adding additional products and services in addition to blood, and adding new markets.
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<input type="radio" name="input_f8219da63e02439e8cf661611ccbc453_2_1" id="input_f8219da63e02439e8cf661611ccbc453_2_1_choice_2" class="field-input input-radio" value="choice_2"/><label id="f8219da63e02439e8cf661611ccbc453_2_1-choice_2-label" for="input_f8219da63e02439e8cf661611ccbc453_2_1_choice_2" class="response-label field-label label-inline" aria-describedby="status_f8219da63e02439e8cf661611ccbc453_2_1"> They plan to transfer ownership of the program to hospitals, empowering local institutions.
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<legend id="f8219da63e02439e8cf661611ccbc453_3_1-legend" class="response-fieldset-legend field-group-hd">What is LifeBank's revenue model?</legend>
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<input type="radio" name="input_f8219da63e02439e8cf661611ccbc453_3_1" id="input_f8219da63e02439e8cf661611ccbc453_3_1_choice_0" class="field-input input-radio" value="choice_0"/><label id="f8219da63e02439e8cf661611ccbc453_3_1-choice_0-label" for="input_f8219da63e02439e8cf661611ccbc453_3_1_choice_0" class="response-label field-label label-inline" aria-describedby="status_f8219da63e02439e8cf661611ccbc453_3_1"> They share profits from training fees with local organizations and bakeries.
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<input type="radio" name="input_f8219da63e02439e8cf661611ccbc453_3_1" id="input_f8219da63e02439e8cf661611ccbc453_3_1_choice_1" class="field-input input-radio" value="choice_1"/><label id="f8219da63e02439e8cf661611ccbc453_3_1-choice_1-label" for="input_f8219da63e02439e8cf661611ccbc453_3_1_choice_1" class="response-label field-label label-inline" aria-describedby="status_f8219da63e02439e8cf661611ccbc453_3_1"> They are reliant on donations.
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<h2 class="hd hd-2 unit-title">Mycotech</h2>
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<p><img style="float: right;" src="/assets/courseware/v1/83a19da15c22c10765d35923bb389172/asset-v1:MITx+0.SolveX+2T2021+type@asset+block/MYCOTECH.png" alt="Mycotech Logo" width="350" height="107" /> Mylea is an eco-friendly leather engineered by Mycotech (a 2019 Solver Team) from mushroom roots grown in fibrous agricultural waste like sawdust, sugarcane, and palm oil, to mimic its feel, look, and tensile strength. Mylea aims to disrupt animal and petroleum-based leather production by producing leather without harming any animal, using any nasty chemical treatment and through a fast-growing process - while cows take 3-4 years to raise, mushrooms can grow in 7 days.</p>
<p style="padding-left: 30px;">The vegan leather market is skyrocketing as designers create animal-friendly fashion. Mycotech currently partners with small brands and local artisans to find new uses for its mushroom leather. Our focus is to produce this material at a larger scale and shift many brands and designers toward eco-conscious fashion by using our material. We are using a co-creating scheme by splitting the profit sharing. The profit-sharing between Mycotech and brands may vary from 30:50 to 50:50. We currently partner with 25 small and mid-size businesses, which buy Mycotech’s products, but are building relationships with more global brands to enable larger sales orders. While gathering additional feedstock simply entails working with additional farmers, as we grow production of Mylea the cost per square foot will decrease due to efficiencies of scale, providing either higher profit margins and/or a more cost-competitive product for additional market share.<em> <br /></em></p>
<p><strong>Additional Reading:</strong></p>
<ul>
<li><a href="https://mycl.bio/" target="[object Object]">Mycotech's Website</a></li>
<li><a href="https://solve.mit.edu/challenges/circular-economy/solutions/6479/application#solution-subnav-offset" target="_blank">Mycotech's Application to Solve</a></li>
</ul>
<p><em>Logo (c) Mycotech 2020. All rights reserved.</em></p>
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Plan to Scale
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<div class="wrapper-problem-response" tabindex="-1" aria-label="Question 1" role="group"><div class="choicegroup capa_inputtype" id="inputtype_806169bfb0d14f74a77d9ef39accae1f_2_1">
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<legend id="806169bfb0d14f74a77d9ef39accae1f_2_1-legend" class="response-fieldset-legend field-group-hd">How does Mycotech plan to scale?</legend>
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<input type="radio" name="input_806169bfb0d14f74a77d9ef39accae1f_2_1" id="input_806169bfb0d14f74a77d9ef39accae1f_2_1_choice_0" class="field-input input-radio" value="choice_0"/><label id="806169bfb0d14f74a77d9ef39accae1f_2_1-choice_0-label" for="input_806169bfb0d14f74a77d9ef39accae1f_2_1_choice_0" class="response-label field-label label-inline" aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_2_1"> They plan to scale vertically by improving their product for small designers before targeting larger designers.
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<input type="radio" name="input_806169bfb0d14f74a77d9ef39accae1f_2_1" id="input_806169bfb0d14f74a77d9ef39accae1f_2_1_choice_1" class="field-input input-radio" value="choice_1"/><label id="806169bfb0d14f74a77d9ef39accae1f_2_1-choice_1-label" for="input_806169bfb0d14f74a77d9ef39accae1f_2_1_choice_1" class="response-label field-label label-inline" aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_2_1"> By increasing their profit-sharing with businesses from a 30:50 split to a 50:50 split.
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<input type="radio" name="input_806169bfb0d14f74a77d9ef39accae1f_2_1" id="input_806169bfb0d14f74a77d9ef39accae1f_2_1_choice_2" class="field-input input-radio" value="choice_2"/><label id="806169bfb0d14f74a77d9ef39accae1f_2_1-choice_2-label" for="input_806169bfb0d14f74a77d9ef39accae1f_2_1_choice_2" class="response-label field-label label-inline" aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_2_1"> They plan to scale horizontally by partnering with as many designers as they can.
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<fieldset aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_3_1">
<legend id="806169bfb0d14f74a77d9ef39accae1f_3_1-legend" class="response-fieldset-legend field-group-hd">How will Mycotech become more efficient in their use of inputs?</legend>
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<input type="radio" name="input_806169bfb0d14f74a77d9ef39accae1f_3_1" id="input_806169bfb0d14f74a77d9ef39accae1f_3_1_choice_0" class="field-input input-radio" value="choice_0"/><label id="806169bfb0d14f74a77d9ef39accae1f_3_1-choice_0-label" for="input_806169bfb0d14f74a77d9ef39accae1f_3_1_choice_0" class="response-label field-label label-inline" aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_3_1"> Producing more mushroom leather in the same facility reduces overhead costs per yard of material.
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<input type="radio" name="input_806169bfb0d14f74a77d9ef39accae1f_3_1" id="input_806169bfb0d14f74a77d9ef39accae1f_3_1_choice_1" class="field-input input-radio" value="choice_1"/><label id="806169bfb0d14f74a77d9ef39accae1f_3_1-choice_1-label" for="input_806169bfb0d14f74a77d9ef39accae1f_3_1_choice_1" class="response-label field-label label-inline" aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_3_1"> Additional technology development will decrease the amount of mycellium required for the same leather strength.
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<input type="radio" name="input_806169bfb0d14f74a77d9ef39accae1f_3_1" id="input_806169bfb0d14f74a77d9ef39accae1f_3_1_choice_2" class="field-input input-radio" value="choice_2"/><label id="806169bfb0d14f74a77d9ef39accae1f_3_1-choice_2-label" for="input_806169bfb0d14f74a77d9ef39accae1f_3_1_choice_2" class="response-label field-label label-inline" aria-describedby="status_806169bfb0d14f74a77d9ef39accae1f_3_1"> New machinery for larger-scale production will reduce the staff time required per yard of material.
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<h2 class="hd hd-2 unit-title">Elpis Solar</h2>
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<p><img style="float: right;" src="/assets/courseware/v1/52e4231a1a69768c82a8657f09146be4/asset-v1:MITx+0.SolveX+2T2021+type@asset+block/Copy_of_Logo_17x50_Black_Vector.png" alt="Elpis Logo" width="400" height="122" />The 2019 Solver team Elpis Solar creates a hardware package that provides key services and opportunities to residents of refugee camps. Its multipurpose, off-the-grid devices offer customers water filtration, mobile charging, electricity, and even educational software. The organization has developed two solar charging systems, SolarHub and Swapcy. SolarHub can charge up to 120 phones per day and delivers more than 250 gigabytes of free medical, educational, literary, and entertaining digital content. Swapcy can charge 40 phones per day, can filter 300 liters of water and provide light. Because the hubs are managed by refugees, they also present entrepreneurial opportunities, aiming to transform unintended communities into places of opportunity and growth.</p>
<p style="padding-left: 30px;">After having obtained a proof-of-concept of our MVP empowering refugee communities in Rwanda with SolarHubs, we now aim to scale-up and replicate our approach to serving the needs of more people. This year we will invest in R&D to upgrade our SWAPCY unit to incorporate UV water-filtration, thereby significantly reducing the replacement costs for the multiple currently installed ultrafiltration membranes. We also aim to increase the filtration capacity to 600 liters per day. For the past 2 years during our initial ideation and prototyping stage we relied solely on philanthropy to fund our activities, however, we now aim to validate our business models and become a financially sustainable venture. After 6 months of research in the Swiss market, we have identified a key opportunity in a niche market, selling access to solar street lighting as a service. This will constitute our primary revenue stream, which we will use to fund R&D and further installations of our solar systems in refugee camps.</p>
<p>Notice that Elpis is in the process of shifting their revenue model. This is common as social enterprises validate their technology or approach, and better understand both the problem they are solving and any potential customers. In this case, Elpis is shifting to a common revenue model called a '<strong>subsidy model</strong>', where sales of one product – solar street lights – cover the low-or-no-cost installation of a different product, or of the same product to a different set of users – in this case, solar systems in refugee camps. </p>
<p><strong>Additional Reading:</strong></p>
<ul>
<li><a href="https://elpissolar.com/">Elpis's Website</a></li>
<li><a href="https://solve.mit.edu/challenges/community-driven-innovation/solutions/7247/application#solution-subnav-offset" target="_blank">Elpis's Application to Solve</a></li>
</ul>
<p><em>Logo (c) 2020 Elpis Solar. All Rights Reserved.</em></p>
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Plan to Scale
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<legend id="5283fd67b152447b9a0a2417e0706cb4_2_1-legend" class="response-fieldset-legend field-group-hd">How does Elpis plan to scale?</legend>
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<input type="radio" name="input_5283fd67b152447b9a0a2417e0706cb4_2_1" id="input_5283fd67b152447b9a0a2417e0706cb4_2_1_choice_0" class="field-input input-radio" value="choice_0"/><label id="5283fd67b152447b9a0a2417e0706cb4_2_1-choice_0-label" for="input_5283fd67b152447b9a0a2417e0706cb4_2_1_choice_0" class="response-label field-label label-inline" aria-describedby="status_5283fd67b152447b9a0a2417e0706cb4_2_1"> They plan to scale both horizontally and vertically by adding internet connectivity to their hubs, while also expanding to rural villages across East Africa in addition to refugee camps.
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<input type="radio" name="input_5283fd67b152447b9a0a2417e0706cb4_2_1" id="input_5283fd67b152447b9a0a2417e0706cb4_2_1_choice_1" class="field-input input-radio" value="choice_1"/><label id="5283fd67b152447b9a0a2417e0706cb4_2_1-choice_1-label" for="input_5283fd67b152447b9a0a2417e0706cb4_2_1_choice_1" class="response-label field-label label-inline" aria-describedby="status_5283fd67b152447b9a0a2417e0706cb4_2_1"> They plan to scale vertically by adding new features to their products through research and development before deploying in to more communities.
</label>
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<input type="radio" name="input_5283fd67b152447b9a0a2417e0706cb4_2_1" id="input_5283fd67b152447b9a0a2417e0706cb4_2_1_choice_2" class="field-input input-radio" value="choice_2"/><label id="5283fd67b152447b9a0a2417e0706cb4_2_1-choice_2-label" for="input_5283fd67b152447b9a0a2417e0706cb4_2_1_choice_2" class="response-label field-label label-inline" aria-describedby="status_5283fd67b152447b9a0a2417e0706cb4_2_1"> They plan to scale horizontally by installing their devices to as many refugee camps as possible.
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<legend id="5283fd67b152447b9a0a2417e0706cb4_3_1-legend" class="response-fieldset-legend field-group-hd">What is Elpis' revenue model?</legend>
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<input type="radio" name="input_5283fd67b152447b9a0a2417e0706cb4_3_1" id="input_5283fd67b152447b9a0a2417e0706cb4_3_1_choice_0" class="field-input input-radio" value="choice_0"/><label id="5283fd67b152447b9a0a2417e0706cb4_3_1-choice_0-label" for="input_5283fd67b152447b9a0a2417e0706cb4_3_1_choice_0" class="response-label field-label label-inline" aria-describedby="status_5283fd67b152447b9a0a2417e0706cb4_3_1"> They will continue to seek funding from grants and other outside contributions.
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<input type="radio" name="input_5283fd67b152447b9a0a2417e0706cb4_3_1" id="input_5283fd67b152447b9a0a2417e0706cb4_3_1_choice_1" class="field-input input-radio" value="choice_1"/><label id="5283fd67b152447b9a0a2417e0706cb4_3_1-choice_1-label" for="input_5283fd67b152447b9a0a2417e0706cb4_3_1_choice_1" class="response-label field-label label-inline" aria-describedby="status_5283fd67b152447b9a0a2417e0706cb4_3_1"> They are currently reliant on grants and donations but plan to shift to a subsidy model for future deployments.
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<input type="radio" name="input_5283fd67b152447b9a0a2417e0706cb4_3_1" id="input_5283fd67b152447b9a0a2417e0706cb4_3_1_choice_2" class="field-input input-radio" value="choice_2"/><label id="5283fd67b152447b9a0a2417e0706cb4_3_1-choice_2-label" for="input_5283fd67b152447b9a0a2417e0706cb4_3_1_choice_2" class="response-label field-label label-inline" aria-describedby="status_5283fd67b152447b9a0a2417e0706cb4_3_1"> Shortly, they will be fully self-sustaining through sales of solar lighting.
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