Online social entrepreneurship - Essay Example

Introduction 1 Overview The Eden project is a social enterprise and essentially a visitor attraction that is located in Cornwall, United Kingdom. The project is made of 3 artificial bio-domes in which there are plants collected from all around the world. The Eden project hosts numerous events throughout the year, some of them are related to art, music, and some related to education.The Eden projects target markets are mainly students from primary school all the way up to university. This is because of all the educational events they have hosted throughout the years in which students are able to participate and learn about the importance of the environment.

Eden project currently employs 650 people and offers 300 people the opportunity to volunteer for them. The Eden project works as a social enterprise as all the profits made are re-invested back into the project. The project itself works on behalf of a trust by Eden Project Limited; this trust is a wholly owned subsidiary of the Eden trust. The Eden project is also a registered charity in the UK (number 1093070). The largest funds which helped built the project came through The Millennium Commission which raised over £56 million adding on the EU and Southwest Regional Development Agency also raised approximately £50 million between them.

In the financial year 2012-2013 notable companies like Rio Tinto, MasterCard and EDF Energy helped donate funds that financed the Edens projects short-term and long-term costs. The project has helped build the local economy by contributing over £1 Billion since 2001. The overall cost of building the Eden project is £140 million. Research Objectives: 1. To analyse the current social value of The Eden Project.2. To investigate which online collaborations would give added social value.3. To examine the Crowd Sourcing framework in order to purpose an online collaboration.4. To evaluate the likely effectiveness of the social value of the new business model.

BackgroundDiscussion of the chosen social enterpriseAfter a lot of consideration as a group we decided to work on the Eden Project mainly because most of us had an interest towards the environment and had prior knowledge about different species of plants. We also believed the Eden project was very relevant towards us as the Eden project mainly targets students that want to explore and learn about the environment. Discussion of some of the issues it faces which are relevant to the analysisLiterature ReviewNowadays, social entrepreneurship is becoming more popular.

As a matter of fact, many theories have been written about social entrepreneurship and its shared values. Even though there is a wide selection of literature concerning these theories, the aim of this review will be focusing on three areas that appear often in the literature reviewed. The first area will be the nature of social entrepreneurship, then the online part of the social entrepreneurship and the enhancement of the social value throughout different frameworks. However, the literature reviewed make these concepts clear in different contexts that is why this literature review will focus essentially on the creation and enhancement of the social value the Eden Project is able to deliver through a systematic online collaboration.

The concept of social entrepreneurship is frequently linked with the term Innovation (Roger L.Martin& Sally Osberg, 2007). The field of social entrepreneurship has known an important and rapid growth and thus attracted attention from many sectors. Moreover, social entrepreneurship emphasizes on the “imperative to drive social change, and it is that potential payoff, with its lasting, transformational benefit to society, that sets the field and its practitioners apart”(Roger L.Martin& Sally Osberg, 2007).

However, social entrepreneurship does not have a clear definition and therefore the definition of the term differs slightly from one researcher to another. First, social entrepreneurship is seen as not for profit initiatives in search of alternative funding strategies, or management schemes to create social value (Austin, Stevenson &  Wei-Skiller, 2003). Second, Sagawa and Segal (2000) define the concept as “the socially responsible practice of commercial businesses engaged in cross-sector partnerships.

” Finally, social entrepreneurship is also recognized as a way to leverage social issues and activate social transformation (Alvord et al. 2004). We can notice here that all the aforementioned definitions have a point of connect which is; the main objective of social enterprises is the creation of shared value rather that being driven by maximizing profits and shareholders dividends (Marcus and Frank., 2010).Social enterprise is an innovative way of doing business that can transform communities.

As a consequence of an extremely quick technological development, social enterprises developed a new way of promoting their business. Communities observed this phenomenon with the creation of online social enterprises. Indeed, adopting the e-business strategy is a good move even for social enterprises as it is “a powerful set of tools that can be used, wisely or unwisely, in almost any industry” (Michael E.Porter, 2001).  Another benefit of going online is to reduce cost while increasing geographical coverage.

Scotland is a perfect example of this new concept of online social entrepreneurship. In fact, they have created a TV channel : Social Enterprise Scotland TV where people can promote their social enterprise (Social Enterprise Scotland, 2014).  Even the top UK leading journals have created websites especially dedicated for social enterprises such as The Guardian Social enterprise (The Guardian, 2014).However the majority of social enterprises are operating in countries where IT skills are not within the reach of everybody such as Africa or poor regions of Asia.

For example, one third of young people in Sub-Saharan Africa fail to complete school and lack skills for work (United Nations, 2012). In this case, it can be argued that this lack of skills can be a barrier for social enterprises to adopt an e-model.The main objective of a social enterprise is to create a social value. Many theories are existing allowing these companies to create or enhance social value for the communities.Based on the “Innovating for shared value” framework, it is argued that social problems present both daunting constraints to their operations and a vast opportunity for growth (Marc Pfitzer, Valerie Bockstette& Mike Stamp; 2013).

This frameworks main idea is the definition of a social need; entrepreneurs must underlie social conditions and then think how best to change them.  “Creating shared value entails embedding a social mission in the corporate culture and channelling resources to the development of innovations that can help solve social problems (Marc Pfitzer, Valerie Bockstette& Mike Stamp; 2013). However this framework does not suit the Eden Project as the project is not linked to a social problem but more related to the use of a unique environment in order to create an added value to the population rather than solve a social problem.

With the Eden project we are more into developing a social value rather than creating one.Finally the “Crowd Sourcing” framework (Kevin Boudreau &KarimLakhani, 2013) is the one that suit the Eden Project the most. In fact the project needs more innovation in order to improve its social value and the “ Crowd Complementor” which is one of the four forms of crowd sourcing will help the Eden Project to deal with innovations problems. Moreover, the enterprise will be able to share data with external sources and also acquire new knowledge which can help improve innovation and therefore enhance social value.

Research MethodologyIn order to examine The Eden Project’s current need for development and decide upon an appropriate online collaboration for the social enterprise without bias, we looked at theoretical analysis of the following material:1. “Eight Ways to Build Collaborative Teams” framework by Lynda Gratton and Tamara Erickson (2007) aims to create a strong sense of community through sponsorship of events and activities.  Being involved in a social enterprise, you already work for the community,  there is no need to be taught community values.

Moreover, it is an expensive tool that will not necessarily increase The Eden Projects social value, better suited to bigger capitalist businesses. 2. “The Third Wave of Virtual Work” framework by Tammy Johns and Lynda Grattonthey (2013) describes the use of technology in order to promote virtual coworkers.  This framework does not apply to The Eden Project as workers/volunteers cannot be virtual using this would weaken the local connections and become increasingly untethered, reducing the social value of The Eden Project. 3. “Crowd Sourcing” - a follow of Kevin Boudreau and KarimLakhani’s (2013) framework “Crowd Sourcing” and its 4 forms through the researching journal article “Using the Crowd as an Innovation Partner” in Harvard Business Review.

Framework 3 ‘Crowd Sourcing’ is the most related to our study as it is a crowd-powered way of solving a problem that is not being resolved inside an organization and needs help from outside sources. The 4 forms of Crowd sourcing are “Contest, Collaborative Community, Crowd Complementor, or Labor Market”(Boudreau &Lakhani).  Each of these 4 distinct forms best suit different types of challenges organizations have, most relevant to The Eden Project is the third of the above list: Crowd Complementor.

Following this framework The Eden Project can smoothly integrate this use of crowd sourcing into its current operations. Currently, The Eden Project is lacking innovation in order to improve its social value to its customer segments and Boudreau and Lakhani (2013) state that crowd sourcing is “a way to deal with innovation problems”. Companies in order to “encourage innovation solution to users and to complement the core product” (Boudreau &Lakhani) use the ‘Crowd Complementor’ framework by sharing data with outside sources.

For example, companies are revolutionizing the way they do business by adding content software and tablet/mobile apps for users to download, providing access to their functions and also giving information about their core product/service. Boudreau &Lakhani (2013) say, “If you exclude crowd sourcing from your corporate innovation tool kit, you are losing an opportunity” and so The Eden Project should use this as an innovation model to add to the organisation. AnalysisThe Eden Project looks to modernize itself in order to capture a greater audience and propel its growth; the best approach to doing this is to enhance The Eden Projects products via innovative technological ways as appose to just visiting the attraction.

The Boudreau &Lakhani (2013) framework states that “Crowd powered innovation enables a market for goods to be built on your core product or technology, effectively transforming that product into a platform that generates complementary innovations”. To further its value propositions of knowledge and education The Eden Project should collaborate to build an ‘Eden Project Learning’ software that can be downloaded onto computers in schools all around the UK at a cost, transforming the fixed Eden Project location into a new platform.

The ‘Eden Project Learning’ (EPL) Software CollaborationTeaching and Learning through technology and enterprise software development will allow Eden Project to reach new customers, in new places, at new times and also retain its current relationships, “tools for development, design and collaboration have been radically transformed; they are getting more powerful and easier to use all the time” (Boudreau &Lakhani).  The enhancement of technology over the years has greatly increased, with this comes companies that are growing with the use of digital enhancements and advertisement through social media.

Using social media as an advertising tool The Eden Project can develop further its online presence, resulting in a greater reach of audience.Primary school children are often taught different languages and subjects through computer learning and developing this online application can enhance their knowledge of the environment, climate, recycling etc. completing The Eden Projects core value of educating the public. “The variety of complementary goods does more than generate revenue. It can expand demand for the product itself, by making it more useful”(Boudreau &Lakhani).

Not only will children, teachers and others be made more aware of The Eden Project but also they will be more likely to visit the attraction; gaining The Eden Project higher revenue, higher demand and propelling its growth. Following the ‘Crowd Sourcing’ framework The Eden Project will be using the crowd of schools as an innovative partner in its quest to increase its social value via growth of audience as “crowds, research shows, are energized by intrinsic motivations – such as the desire to learn” (Boudreau &Lakhani).

Through ‘Crowd Complementors’ a software development and higher social media presence “innovation will create more demand and value for its products”(Boudreau &Lakhani).  This increase in demand that the social enterprise will see will allow it to increase further into developments such as social media games/quizzes and the potential to build a tablet/mobile application for children and families to download to further their learning at home. Boudreau &Lakhani, (2013) states, “Increased demand, in turn, can prompt an increase in the supply of complementary innovations”.

The Eden Project will soon have a network of different platforms and set of enhancers of its core product. ‘Crowd Complementors’ framework helps for The Eden Project’s ability to encroach into other markets, developing the Eden Project Learning Software processes the entry of the social enterprise into the school academic materials market. As mentioned above, once positive results have been seen from this venture further markets can be implemented such as mobile/tablet learning apps and education through social media and online.

A challenge to using this framework is “providing access to functions and information in the core product” (Boudreau &Lakhani) to not only the software developers but also the public via online as appose to encouraging the customers to visit to get this information. However, The Eden Project is an open social enterprise in which its data feed and information/knowledge is greatly shared with the community and customers in order to reach a higher gaining social value. To accomplish this “technological interfaces or hooks that enable external developers to create complementary innovations” (Boudreau &Lakhani) can be used and so customers of the software will still encompass the desire to visit the attraction.

A further challenge seen in the framework is “cases in which Complementors have to dial into core product features and build on them” (Boudreau &Lakhani), for example the knowledge, facts and information The Eden Project can provide will need to be made into a fun, interactive, user and child friendly way through quizzes and games all related to The Eden Project. In this case 3rd party developers will need to be sourced who are specialized in this activity. The application and use of the crowd to enhance a company and/or solve a problem is still relatively new, however advantages to assembling ‘Crowd Complementors’ framework to The Eden Project is that technology has “turbocharged crowd sourcing’s potency” (Boudreau &Lakhani) and in order to reach The Eden Projects objections of propelling growth to extend and greaten its social value, ‘Crowd Complementors’ framework “operates in a model that stimulates adoption on both the Complementor and customer sides to kick-start positive interactions and initiate growth” (Boudreau &Lakhani) and in so proving to be a great fit for The Eden Project.

The Eden Project Business Models:1. Existing Business Model (See Appendix 1)1.1 - Customer Segments - The UK public and also tourists visiting Cornwall and Devon. Primary Schools is a top segment along with families, and attraction visitors who may be environmental enthusiasts. 1.2 - Customer Relationships - Personal as customers go to be educated one on one or in a group, it relies heavily on the Cornwall community relationship.1.3 - Channels - Awareness is brought through schools, websites such as trip advisor and other tourism outlets.

Feedback is generated through visits and school and purchases through online, in attraction or via school trips. After the visit there is a gift shop and online store. 1.4 - Value Propositions - Providing valuable research into the environment, recycling, endangered plants and species. It delivers a memorable learning experience and visit to the attraction. 1.5 - Revenue Streams - Entry tickets via channels and donations that can be monthly or one off. Memberships are available, as are offers and bundles.

Extras and added values are cafe, gift shop, wedding venue, on site camping and music and art events. 1.6 - Key Activities - To attract visitors to the site, promote all current and up and coming projects, school visits and online website.  1.7 - Key Resources - Physical resources such as supplies, materials, gardens. The location is fixed and human workers needed. 1.8 - Key Partners - Energy companies such as EGS energy, trip advisor, schools, travel and tourism agencies and celebrity endorsements through the music and art events. 1.9 - Cost Structure - Maintenance of the Eden Project site is the main proportion of costs along with site bills, supplies and materials.

Recruitment, training and salaries are a cost along with distribution of suppliers and marketing of the attraction. 2. Purposed Business Model (See Appendix 2)1.1 - Customer Segments - Schools become an increased segment as school children will be learning through the software and visits. 1.2 - Customer Relationships -Community of not only Cornwall but also the government and primary and secondary schools 1.3 - Channels - Further channels reached through the software of school contracts, knowledge learnt throughout and a ‘Visit Us’ option. 1.4 - Value Propositions - Innovative learning through the software provides interactivity for children making the teaching experience fun fulfilling the need to learn. 1.5 - Revenue Streams - Schools purchase of software complimenting the visits.

There is also the proposed potential of further clients purchasing the software and ability to expand into mobile/tablet software app download revenue. 1.6 - Key Activities - Eden Projects database of knowledge for the software and to further the social media presence.1.7 - Key Resources - Intellectual is added as databases and software copyright will be needed for the software. 1.8 - Key Partners - The crowd and an innovative partner means schools can offer the software and government funding organisations to support the software. 1.9 - Cost Structure - Software development and creation of the Eden Project Learning (EPL) software will be a large up front cost.

Also, advertising and selling of the software and further potential for costs during mobile app development and social media marketing recruitment. Discussion of FindingsAs mentioned, with the pace of the development of technology, social media and other online software and applications are now more widely used in different circumstances and for different purposes, for instance, educational uses. Since the Eden Project is “an educational charity” (Eden Project), the online software and applications can be a good tool for them to raise the awareness from their target audience and expand the range of services they provide to the community.

Launching the ‘Eden Project Learning’ software will bring a positive effect to the Eden Project. With the help of their innovative partner, such as schools and other educational institutions, their organisation and the idea of learning can reach more students in school than before. As Boudreau &Lakhani (2013) stated and as mentioned in the previous section, “innovation will bring positives impact to the organisation”, no matter in terms of business or in this case, in terms of the social value and the ideas and beliefs behind.

Moreover, the Eden Project is always aiming to provide opportunities for people to explore, have fun, and learn things from different angle and inspire people. With the traditional ways of learning, i.e. learning from textbooks, it might not be as exciting as to learning things interactively; where the ‘Eden Project Learning’ software can provide a chance for students to experience and to explore their horizons in a more vivid and interesting way. In fact, educational software is gradually becoming a common tool for teachers in schools (Niederhauser and Stoddart, 2001), that means this ‘Eden Project Learning’ software is realistic and the possibility of this proposed software being welcome by the market are high and really likely to succeed.

No matter how likely this ‘Eden Project Learning’ software seems to be successful, a proposed project could never be guaranteed without a reliable market research. The analysis and points made above are based on the secondary research that has been done and with reference of the literature that have been read. That is, the analysis is inconclusive and should be modified. Therefore, in order to assure the possibility of success of the ‘Eden Project Learning’ software, primary research such as survey, interview or focus group should be done.

Moreover, some of the literatures used in the above research are more than ten years ago, with the rapid development of technology and globalisation, it is believed that the degree of acceptance of technology or online software and application, and be more specific, on using educational software have certainly changed over years. For that reason, the analysis and discussion are not as accurate as it could be and the assumption will thus be not as realistic to a certain extent. Conclusion & RecommendationsConclusion Technology and enterprise software development for the Eden Project enhances collaboration through radical transformation of digital and social media tools.

Such collaboration enables the Eden Project to increase its online presence reach more audience, and children to learn about the environment and climate. The crowd sourcing framework will be used to allow crowd of schools and enhance the growth of audience. The software development and social media presence also increases demand for the products of the Eden Project. Eden project is an open social enterprise that entails sharing of data feed and information with communities and customers in order to reach higher social value.

This paper contributes to the literature in the field of online social enterprise. It creates a theoretical and practical platform upon which communities and schools may use to enhance their understanding about collaboration and social media enterprise. Businesses may also develop their own sourcing framework based on the findings of this study. The business model of the Eden Project comprising of customer relations, customer segments, channels, value propositions, revenue streams and key activities can be used as an example for future projects in order to enhance improved audience, increased earnings and higher collaboration among various stakeholders.

RecommendationsOne recommendation for further research in the area is that primary research should be improved to cover the trends of social media use in order to determine the most desired aspects of the social media by its users. This will enable the project to advertise its business appropriately by targeting social media needs of the target customers. This may include a survey of social media users to determine their preferred collaboration tools and how they would like such collaboration tools to be improved.

This enables projects to understand their customers and address their needs. The management of the social enterprise involved should also train its employees, especially in the IT department in order to enhance effective innovation and technological advancement in the social enterprise. Training enables the software developers to innovate successful software that will be widely accepted and demanded by various schools. The Eden Project managers should also discuss with the schools before developing the learning software in order to determine whether they will be willing to use the software.

This should require a team of experts from the social enterprise management to go to the schools and explain to them about the benefits and costs of the project, and then ask them whether they are willing to purchase the software.