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Hybrid delivery models apply the distinctive competences of one type of organisation in an adjacent value chain or sector. The muchcelebrated M-PESA mobile phone-based banking and money transfer product saw a mobile operator, Safaricom, enter the financial services sector in Kenya as a technology-enabled market opportunity that has had a massive impact on financial inclusion in Kenya. M-PESA captured 6.5 million subscribers by May 2009 and manages 2 million daily transactions in Kenya alone.
Implications
It is clear that the interests of the development agencies and businesses are converging, with implications for all. For business, cross-sector convergence means looking at emerging markets more holistically, not only as new customers or sources of raw materials, but as societies to strengthenand thus serveas future sustainable markets for goods, services and talent in the long term. For development funding agencies, it suggests being softer on inputs and intermediaries and harder on outcomes and impactand funding non-traditional entities or initiatives that go against the prevailing orthodoxy. For NGOs and other implementing organisations, it suggests looking to partner more strategically with business to achieve scalable and sustainable long-term solutions, not just as sources of funding for short-term projects. It could even mean a degree of reinvention in parts of their traditional value chain to embrace new hybrid models of delivery or funding. And for all, Accenture Development Partnerships believes cross-sector convergence can be a positive force for changea force for achieving the MDGs in a way which harnesses and aligns the distinct capabilitiesand distinct interests of each sector to deliver high performance.
Gib Bulloch
Executive Director Accenture Development Partnerships September 2010
To learn more about Accenture Development Partnerships, and our views on Cross-sector convergence visit accenture.com/adp
Accenture Development Partnerships is a group within Accenture designed to operate on a not for profit basis to channel Accenture's strategic business, technology and project management expertise to nonprofit organisations, NGOs, foundation and donor organisations operating in the development sectorhelping these organizations achieve their social and economic development goals. Accenture Development Partnerships started as a corporate social enterprise in 2003 and has to date completed 330 projects for 74 non-profit clients, working across 58 developing countries, and deploying more than 700 Accenture employees.