BUSINESS - Technology and Social Innovation

Social innovation is where Millennials are putting their energy and their money, and the sharing economy is growing.

These two concurrent areas of growth intersect and influence each other, especially since they both rely so heavily on social media and connected devices.

What this means is commerce is becoming more ‘social,’ in every meaning of the word.

More conscious of social responsibility, more enmeshed with socially networked daily lives, and engaged in more and more instances of “sharing” or “gig” economies.

Although this is disruptive to existing business frameworks, it’s also the way forward.

Both social innovation and the sharing economy have been heralded as the solution to a struggling global capitalism.

People are working together for social good, connecting over social media to discuss this and to find brands and services, and using apps and the Internet of Things to connect with on-demand services.

Integration and connection are key focuses. Integration extends beyond using digital tools to facilitate engagement.

Social innovators are blending social responsibility with economic viability in a way that previous generations didn’t.

The binary between non-profit organizations focused on social change, and for-profit organizations focused on the bottom line is getting fuzzy, as more and more entrepreneurs bring their commitment to social responsibility into their business endeavours.

Technology enables this blending.

One recent study by the Joint Research Centre (JRC) found that “the success of [social innovation] initiatives relies on the catalytic effect of technology.”

Social media and the web allow “participation of the public sector at different levels” and the ability to create partnerships across platforms has changed how services are provided.

The sharing economy, which intersects with social innovation in ways that are sometimes symbiotic and sometimes antagonistic, is an example of how technology is changing service industries.

The sharing, or gig, economy means that individuals, like Uber drivers, have access to your information and your personal space.

Trust is a major issue, and not only for workers in the sharing economy, who might drive consumers around, do their shopping, walk their dogs, or clean their homes.

Trust is also an issue for any tech company, according to Ryan Ozonian, the CEO of Dust, a non-permanent messaging system that allows instant communication without a permanently stored record. And, as the JRC study highlights, social innovation companies are, overwhelmingly, tech companies.

“Citizen science” is another example of technology intersecting with social innovation.

In 2011, crowdsourcing allowed the gaming community to solve the issue of accurately modeling a particular molecule to further HIV research, which had stumped HIV scientists for 10 years.

Social entrepreneurs are experts at taking existing technology and putting it to a new use – such as HIV researchers utilizing the existing base of gamers already playing on FoldIt, or organizations like Kiva using existing mobile technology.

Other examples are e-readers being used to increase global literacy, or solar technology being scaled down to make it more affordable and accessible.

Young innovators, a generation of Millennials who are focused on social responsibility paired with economic sustainability, are making waves.

They’re already experts at adopting and adapting technology to their needs, and as they create businesses focused on social innovation, the technology will continue to be an integral part of their work.

By Tiffany Sostar

Tiffany is a writer, editor, academic, and animal lover who came late to her appreciation of pets. At 18, a rescue pup named Tasha saved her from a depression and she hasn't looked back. She has worked as the canine behaviour program coordinator for the Calgary Humane Society, and was a dog trainer specializing in working with fearful and reactive dogs for many years. She doesn't have any pets right now, but makes up for it by giving her petsitting clients (and any dogs she comes across on her frequent coffee shop adventures) extra snuggles.

BUSINESS - Successful Business Models for Social Innovation

Millennials and other young entrepreneurs are linking their business with their politics through social innovation.

Forbes says that “sixty-one percent of millennials are concerned about the state of the world and feel personally responsible to make a difference.”

Despite this generational drive towards social innovation, there has historically been resistance to social entrepreneurship.

Businesses that seek to bridge the divide between non-profit and for-profit business models generate both social change and revenue face particular challenges.

Despite these challenges, many young entrepreneurs are developing successful social innovation business models.

They’re responding to a growing awareness among consumers of the impact of consumption, both locally and globally.

Social media and the proliferation of information mean that consumers can check up on how a business treats its staff, and whether its products are sourced ethically.

These questions are becoming more important, especially to younger consumers.

Focusing on social impact makes sense for new businesses, and will increasingly become important for established businesses.

Three key points identified by entrepreneurs at the Under 30 Summit 2016 are to establish yourself as an expert, give back to your community, and participate in both sides of the mentorship equation.

Each of these three strategies for success as a social innovator make specific demands on an entrepreneur’s emotional energy.

Although establishing yourself as an expert, or your brand as exceptional, has always been important for entrepreneurs and businesses, giving back and actively engaging in mentorship require resilience and emotional investment.

This is a significant shift within the social innovation business model, and it’s one that social innovators should be consciously aware of.

Businesses like Sweetgreen understand that their consumers want both “that deep connection to [the product] while holding onto the on-demand convenience of the Uber era.”

The salad chain focuses on sourcing as locally as possible, and offering their consumers transparency in where the food comes from and who is growing it.

Sweetgreen focuses on “intimacy at scale” – meaning that they want connection to their customers, and to provide their customers with a sense of connection to the food.

This allows the company to “give back” by supporting local farmers and suppliers, and facilitates the consumer also feeling like they are giving back.

Warby Parker is another company focused both on social change and corporate profit.

The company is currently valued at $1.2 billion, and has distributed more than 2 million pairs of glasses to people around the world.

They focused their early business model on providing online-only sales, and have since expanded to 38 physical locations.

They’re an example of a business that maintains a focus on social impact while also adapting quickly and efficiently to the contemporary consumer’s demand for accessible, on-demand products.

And, echoing the idea that one successful business model is to “be an expert,” they stay focused on eyewear rather than expanding too quickly into other wearables.

Building successful and sustainable businesses that offer investors and entrepreneurs social and financial rewards is challenging, but it’s a way forward for global capitalism.

Giving back, staying focused, excelling in your area, and providing sustainable mentorship chains will have long-term payoffs for economic, social, and environmental sustainability.

By Tiffany Sostar

Tiffany is a writer, editor, academic, and animal lover who came late to her appreciation of pets. At 18, a rescue pup named Tasha saved her from a depression and she hasn't looked back. She has worked as the canine behaviour program coordinator for the Calgary Humane Society, and was a dog trainer specializing in working with fearful and reactive dogs for many years. She doesn't have any pets right now, but makes up for it by giving her petsitting clients (and any dogs she comes across on her frequent coffee shop adventures) extra snuggles.

BUSINESS - Keeping Up With a Generation of Social Innovators

Many young innovators and entrepreneurs, such as those at the Under 30 Summit 2016, are concerned about issues of racial justice, feminism, gender equality and representation, Muslim representation, and human rights.

They are a generation of social innovators, blending politics with business in intentional, meaningful ways, and although they face significant pushback (as any glance into the comments section attests), this generation of social innovators isn’t about to drop their politics.

Why is social innovation, which, according to the Standford Graduate School of Business, “focuses attention on the ideas and solutions that create social value,” driving “the exchange of ideas and values, shifts in roles and relationships, and the integration of private capital with public and philanthropic support” such a big deal for these young entrepreneurs?

Why is social value, specifically, gaining such traction and shifting the focus away from purely financial or economic value?

Because it is impossible to ignore the impact of representation on the lives and interests of people growing up in a media-saturated, highly connected world.

Technology has changed everything about how people engage with brands and issues. Humans are social animals, and given new avenues of connection, humans will build new paths to each other.

Amani Al-Khatahtbeh, founder of MuslimGirl.net, says, “Growing up with a name as foreign sounding as mine was, through puberty, not really just an issue of branding, it was predominantly an issue of identity. Thus began a lifelong navigation of who I was and what name I would claim. I did what any Millennial would do – I started my own group. [It was a way] to eliminate stereotypes and to help in a very accessible and unintimidating way.”

MuslimGirl now has unprecedented mainstream media presence, with regular columns focusing on the Muslim experience in Forbes, Fortune Magazine, Refinery29, TeenVogue, and others.

Al-Khatahtbeh has also published a book, claiming the name that caused her so much alienation and pain as a child.

This is the personal motivation behind young entrepreneurs bringing their politics into their businesses.

What does this mean for marketers and businesses that are trying to keep up with the social innovation generation?

It means being aware of the diversity of your market base.

Recognizing traditional marketing, which doesn’t take into account the presence of women, LGBTQI, people of colour, and other marginalized groups, will no longer get the same traction.

It means placing value on values as much as revenue and profits - like the recent purchase of Allpaws by PetSmart where the value is pet adoption.

Consumers want social responsibility, and companies that meet this need will be able to find long-term customers despite this generation’s fickle consumer habits.

The integration of private enterprise with issues of social justice – whether along lines of racial, gender, class, or ability difference – is driving social innovation.

It’s political, and it brings personal politics into businesses and boardrooms in a much more visible, challenging way.

Keeping up with social innovation, and embracing the diversity that these young innovators are demanding, will open up pathways for marketers and businesses to access consumers who were previously alienated and ignored and consumers who share their values.

Social innovation is good for society, but it’s also good for business.

The next articles in this series will look at the technological advances that are making social innovation possible, and the business models that make them financially viable.

By Tiffany Sostar

Tiffany is a writer, editor, academic, and animal lover who came late to her appreciation of pets. At 18, a rescue pup named Tasha saved her from a depression and she hasn't looked back. She has worked as the canine behaviour program coordinator for the Calgary Humane Society, and was a dog trainer specializing in working with fearful and reactive dogs for many years. She doesn't have any pets right now, but makes up for it by giving her petsitting clients (and any dogs she comes across on her frequent coffee shop adventures) extra snuggles.