11
1.5 Does Innovation Only Pertain
to Profit-Seeking Organizations?
Most of the insight, experience, and literature relevant to innovation relates to forprofit efforts where companies and organizations innovate to remain in business.
They grow and adapt to the needs and desires of customers and markets along the
way. However, that does not mean that the natural domain of innovation is only
within profit-seeking organizations. Leewis and Aarts provide an updated perspective of innovation adoption in agriculture in Chap. 4 of this book.
Nonprofit organizations, regardless of their role, size or geographic footprint, are
also under increasing pressure to innovate. Their users and beneficiaries have needs
that continuously evolve. They must adapt to the needs and expectations of their
donors and funding agencies, as well as to the increasing scrutiny from governments, international bodies, and philanthropic organizations.
From this perspective, this chapter argues that nonprofit organizations already
run a business. They might not seek profits but, nonetheless, they remain a business
(Box 1.3). Regretfully, even today, the word “business” raises concerns, and it is not
taken well within some university and other knowledge-seeking organizations.
Are there good examples of an innovative nonprofit?
Several Boxes provided throughout this book describe successful nonprofit innovations. A further example of an innovative nonprofit model is the Innovation Lab
set up by Oxfam.
6
In a systematic way, it addresses core development challenges
that have potential for market systems solutions. Market-based ideas are analyzed,
and pilot projects are run to make the solutions better.
BlocRice is an innovative program launched by Oxfam in Cambodia aimed at
increasing rice farmers’ leverage to secure fairer prices. It is based on digital contracts established among rice agricultural cooperatives, exporters in Cambodia, and
6 https://www.oxfamamerica.org/explore/research-publications/oxfam-innovation-lab/ [verified on
October 11
th , 2019].
Box 1.3 The Actual Meaning of the Word Business
Often the word “business” encounters skepticism, diverse opposition, and even
a degree of disdain in academic and nonprofit organizations. This is unfortunate, as the actual meaning of this word has very little to do with corporate
greed or utter disregard for anything other than a ruthless pursuit of profits.
The word “business” is derived from the old English word bisignes, “attend
to, be concerned with, be diligent.” Its actual meaning is “moving towards a
goal, to be determined about serious action.” We advocate the use of this word
because it conveys a positive activity worth pursuing.
1 The Quest for Innovation: Addressing User Needs and Value Creation
1.5 Does Innovation Only Pertain
to Profit-Seeking Organizations?
Most of the insight, experience, and literature relevant to innovation relates to forprofit efforts where companies and organizations innovate to remain in business.
They grow and adapt to the needs and desires of customers and markets along the
way. However, that does not mean that the natural domain of innovation is only
within profit-seeking organizations. Leewis and Aarts provide an updated perspective of innovation adoption in agriculture in Chap. 4 of this book.
Nonprofit organizations, regardless of their role, size or geographic footprint, are
also under increasing pressure to innovate. Their users and beneficiaries have needs
that continuously evolve. They must adapt to the needs and expectations of their
donors and funding agencies, as well as to the increasing scrutiny from governments, international bodies, and philanthropic organizations.
From this perspective, this chapter argues that nonprofit organizations already
run a business. They might not seek profits but, nonetheless, they remain a business
(Box 1.3). Regretfully, even today, the word “business” raises concerns, and it is not
taken well within some university and other knowledge-seeking organizations.
Are there good examples of an innovative nonprofit?
Several Boxes provided throughout this book describe successful nonprofit innovations. A further example of an innovative nonprofit model is the Innovation Lab
set up by Oxfam.
6
In a systematic way, it addresses core development challenges
that have potential for market systems solutions. Market-based ideas are analyzed,
and pilot projects are run to make the solutions better.
BlocRice is an innovative program launched by Oxfam in Cambodia aimed at
increasing rice farmers’ leverage to secure fairer prices. It is based on digital contracts established among rice agricultural cooperatives, exporters in Cambodia, and
6 https://www.oxfamamerica.org/explore/research-publications/oxfam-innovation-lab/ [verified on
October 11
th , 2019].
Box 1.3 The Actual Meaning of the Word Business
Often the word “business” encounters skepticism, diverse opposition, and even
a degree of disdain in academic and nonprofit organizations. This is unfortunate, as the actual meaning of this word has very little to do with corporate
greed or utter disregard for anything other than a ruthless pursuit of profits.
The word “business” is derived from the old English word bisignes, “attend
to, be concerned with, be diligent.” Its actual meaning is “moving towards a
goal, to be determined about serious action.” We advocate the use of this word
because it conveys a positive activity worth pursuing.
1 The Quest for Innovation: Addressing User Needs and Value Creation