impact of technology at bottom of the pyramid
DESCRIPTION
Presentation done at Wireless World Research Forum, London, Nov 17th, 2010.TRANSCRIPT
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THE IMPACT OF TECHNOLOGY AND BEHAVIOUR PATTERNS AT BOPDr. Harsha Liyanage
ICT4D Activist (Sri Lanka),Consultant (UK)www.fusion.lk
email: [email protected]
eNovation
WWRF, 25th meeting,16-18 November 2010
London, UK organised by Kingston University
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REACHING OUT TO THE NEXT BILLION CUSTOMERS
The Next billion includes;Bottom of the Pyramid communities
eNovation
• Bottom of the pyrami
d communities
• Purchasing power (US$)
• $ 1,500 – $ 20,000
• $ 1,500
• < $ 1,500
• > $20,000
• Global population (mil)
• 75 - 100
• 1,500 – 1,750
• 4,000•}
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Why is it a challenge?• Complex eco-system
(culture, taboos, poverty)• Thin / limited resources• Latent (ill-defined) needs • Poor education• Politics and peer pressure
UNDERSTANDING BOP – THE CHALLENGE IS ESTABLISHING THE CUSTOMER PROFILE
Who they are?What their needs are?What their behaviour is?What their buying power is?Who and how they take decisions?Who pays and how much?
eNovation
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Idea Concept Prototype Market testing Launch
IN THE CONTEXT OF TARGETING BOP: IS THERE A NEED TO IMPROVE INNOVATION?
eNovation
Partial understanding ofBOP context would handicap each stage of the product / service innovation process.
?
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CAN TECHNOLOGY COME WITH A HUMAN FACE? WHAT ABOUT SOCIAL RESPONSIBILITY!
• gender neutrality - do they meet both men & women?
• income generation potential – would it enable local people to generate income for themselves and families?
• affordability - are they affordable to the poor?
• manageability and control – can it be designed, improved, managed & controlled by local people?
• application of local skills – would it use local skills & materials?
• environmental impact – what impact does it have on the local environment?
eNovationSource: E.F. Schumacher, 1973, Practical Action, 2010
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LESSONS CAN BE LEARNED FROM INTERNATIONAL DEVELOPMENT PROJECTS
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AN EXAMPLE: SARVODAYA-FUSION - SRI LANKA
A Social Enterprise (started in 2007, as a specialist program of Sarvodaya, 50 year old national NGO of Sri Lanka)
‘Fusion-Education’ - a product offered (ICT Education package, books & national examination)
End user – Rural student (mostly poor)
Business model – Dealership based, direct customer purchase, donor support eNovation
Social bottom line
Economic bottom line
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•Telecentres owned by local entrepreneurs, sponsored by Government, donors, community
Dealer
•Parents, •Village religious leaders
• Other adults
Decision maker
•Rural youth with high aspirations
•Age 13 - 25• Rural• Mostly <$1500 household income
End user
PRODUCT DELIVERY MODEL
In the context of BOP:• low or no infrastructure• thin / limited resources • poor decision making capacity• culture & peer pressure
eNovation
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THE CHALLENGE FOR SARVODAYA-FUSION WAS TO SATISFY THE DONOR (CUSTOMER) AND END USER
Strategic approach:1. Define both the customer and end-user 2. Develop appropriate models, to measure the impact
while illustrate the complexity and diversity of the end-user environment
3. Pilot test and prove theoretical and technical rigour
eNovation
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STRATEGIC TOOLS DEVELOPED AND PILOT TESTED
1. Map the value chain – ‘theory of change’2. Develop a methodology for measuring indicators3. Quantify the progress over time
eNovation
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COMPLEX VALUE CHAIN
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C
4
6
D,E
Students sit and pass DICA
exam
2
F
A,B
5
Students will have correct attitude and
self-discipline to continue DICA programme
Accessibility of ICT
facilities available
with minimum
restrictions
Students engaged in
self learning
7
Children & youth attend the classes regular basis
ICT training and exam facilities available at local Telecentres
G
Children and parents hear/learn about
programme
Fusion- Education service
1
Children received Scholarships
Children are interested about programme
Children received parental support and
encouragement 3
Students have developed their
marketable ICT skills
Skilled facilitators
would provide training
Increased access to appropriate information
eEmpowerment of Rural Children/ Youth
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IMPACT MAPPING TO UNDERSTAND THE COMPLEX CHAIN
C
4
6
D,E
2
F
A,B
5
Students will have correct attitude and
self-discipline to continue
programme Accessibility
of ICT facilities available
with minimum
restrictions
Students engaged in
self learning
7
Children & youth attend the classes regular basis
ICT training and exam facilities available at local Telecentres
G
Children and parents hear/learn about
programme
1
Children received Scholarships
Children are interested about programme
Children received parental support and
encouragement 3
Students have developed their
marketable ICT skills
Skilled facilitators
would provide training
Increased access to appropriate information
eEmpowerment of Rural Children/ Youth
Students sit and pass DICA
exam
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Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
INDICATORS TO MEASURE THE IMPACT
eNovation
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Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
First time exposure to computers, and familiarization with ICTs (seeing & touching)
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Generate interest to learn, interact, use or develop application skills
Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
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Develop application skills with the assistance of trained staff
Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
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Further self learning (added skills) without assistance (or limited assistance)
Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
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Exploring beyond basic computer skills to internet, email, web development, database development, social net working, teaching to others, etc.
Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
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Systematic application of computers/ internet for self or others benefits (teaching, database development etc.)
Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
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Acquiring qualifications
Self learning
Exploration
Application
Exposure
Motivation
Skill development
Qualification
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PILOT TEST IS BEING CARRIED OUT IN TWO REGIONS: POST WAR COMMUNITIES (NORTH) AND SEMI-URBAN COMMUNITIES (SOUTH)
eNovation
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0
50
100exposure
END USER IN POST WAR COMMUNITIES DEMONSTRATED THE LEAST EXPOSURE & MOTIVATION (BASE LINE)
Time 0
*Student name: Sujamila Sriskantharasa, Age,18, Female
motivation
Skill development
Self learningExploration
Qualification
Application
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PROGRESS AFTER THREE MONTHS (END USER IN POST WAR COMMUNITIES)
0
50
100exposure
Time 0 3 months
motivation
Skill development
Self learningExploration
Qualification
Application
*Student name: Sujamila Sriskantharasa, Age,18, Female
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0
50
100
Male
0
50
100
Male
0
50
100
Female
0
50
100
Female
PATTERNS OF END USERS EXPOSURE AND MOTIVATION TO ICT EDUCATION IN POST WAR COMMUNITIES (BASE LINE)
Time 0
*Student Age,16 - 18, Jaffna district
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INDIVIDUAL USERS AT SEMI-URBAN COMMUNITIES (SOUTH) (BASE LINE)
0
50
100
0
50
100
0
50
100
0
50
100
Time 0
*Student Age,16 - 18, Moratuwa
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0
50
100
0.00
50.00
100.00
Post war communityCOMPARISON OF AVERAGE EXPOSURE & MOTIVATION BETWEEN TWO COMMUNITIES
Time 0
Semi urban community
Average of 15 students
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PROGRESS OBSERVED AFTER 3 MONTHS: BOTH COMMUNITIES PRESENT NEARLY IDENTICAL PROGRESS
Time 0 3 months
Average of 15 students
Exposure
Motivation
Skill-Dev.
Self learnExploration
Application
Qualification
0
50
100
Exposure
Motivation
Skill-Dev.
Self learnExploration
Application
Qualification
0
50
100
Semi-urban community
Post war community
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KEY LESSONS
Mapping exercise, Indicators and Star charts, collectively provide a set of tools that enables reasonable understanding about the complex and diverse outcomes at the end-user.
eNovation
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WHERE COULD THIS BE APPLIED?
To understand the customer profile & value chain in complex BOP environments
Support the product / service innovation process targeting BOP
Improve the social responsibility at innovation targeted at BOP customers and clients
eNovation