Phoenix Forum: Aravind Eye Care System

Kevin Teo

November 24, 2009

Thulasiraj Ravilla, Executive Director, Lions Aravind Institute of Community Ophthalmology

Aravind Eye Care System, India

Aravind Eye Care is the largest and most productive eye care facility in the world. Using a hybrid business model, they treat over 1.4 million patients a year, two-thirds of them for free.

Q.1: Do you agree that a new economic order will rise from the ashes of the old—and, if so, what do you see as some of its key characteristics?

I certainly believe that a new economic order will rise out of the current melt down. In my perspective the melt down was fuelled by factors that were not sustainable. The drivers of the economy included over-consumption or wastage, greed and lack of regulation, while the overriding paradigm seems to have been based on exploitation. Another aspect of the paradigm was that demand is limitless and hence all companies had to gear up for this limitless growth in every sphere.

The new economic order will (need to) focus on becoming inclusive in the market place—i.e. ensuring that people in all economic strata who could potentially benefit from a product or service get access to it.

The new economic order will aim to create a win-win paradigm where both the customers and the seller stand to gain. The new economy will founded on old fashioned values such as transparency, trust and inclusiveness. Though this may sound idealistic, it makes a lot of business sense and would certainly be sustainable.

As part of this process one could also see a change in a mix of product or service offerings. The focus will need to shift from ownership to giving the functionality; the solutions will need to be local while the strategies could be global; the price points and payment mechanisms will need to be sensitive to cashflow realities.

Q.2: What is needed in your market/industry to accelerate change? What barriers would you like to see removed and what partnerships would you like to develop?

While middlemen are necessary to bring efficiency into a whole industry, care should be taken to ensure that they don’t become the “Berlin Wall” between producer and the end consumer. Today we see this happening in terms of extreme excess, whether in Healthcare or in many other industries. This barrier must be broken down to allow for closer interaction. One can already see this happening in industries like the airline industry. Each industry must learn to focus on the ‘Non Market’ that is the customer with the need or potential—but without the ability to express that need or potential as a consumer. The industry will have to learn to become customer-centric, including such ‘Non Market’ customers as well.

Key industries will need to find new partners that can help them redefine their strategies for market access, production and distribution. Industry will need to find ways to understand the needs of people directly—and learn how to build bridges for this through people-based organizations.

Q.3: Any other comments?

The current scenario offers phenomenal opportunities for innovation to build a more stable economy and a sustainable ecosystem.

For further information, www.aravind.org