Meeting the Challenges of the Bottom of the Pyramid
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- Philomena Young
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1 Meeting the Challenges of the Bottom of the Pyramid Planting Seeds... Intel Applications Research and Strategy Lab 16 May, 2002 Colin M. Maclay Center for International Development Harvard University
2 Agenda The State of the World Today Why We Care and the Role of ICTs Challenges We Face Context Matters Ideas on Overcoming Them
3 State of the World Today Growing economic disparities 4b people off the network and out of the loop Massive service deficits (education, health, finance) Political and economic instability (ineffective gov t) Broad security concerns ICT products reaching stasis? Many groups trying to address digital divide some as a problem, others as part of solution
4 Why We Care and the Role of ICTs Moral/Social reasons Organizational interests Business (integrating markets, growth, innovation) Government (tranparency, efficiency, policy reform) Academia and NGOs (social compact, increase reach) ICTs as a common platform and source of economic competitiveness
5 Eggleston, Jensen, Zeckhauser (2002) The Digital Provide Economic Growth Income Gains Effective Markets Information for Economic Decisions Information Technology
6 Market Opportunities Small returns but large volume First mover leadership, new consumers, sustained growth Innovation in products and models Internal benefits employee satisfaction
7 Challenges We Face Context Matters Access information infrastructure and hardware, software and support Society learning, job opportunities, social capital Economy e-commerce, e-government, infrastructure Policy ICT policy environment, business and economic environment Not just technology, but people and institutions
8
9 Networked Readiness Index Global Information Technology Report United States Singapore Ireland Korea Israel Czech Republic Malaysia Brazil South Africa Thailand Bulgaria India Indonesia Russian Federation China Ranking (1 to 75) Score (1 to 7)
10 Information Infrastructure Global Information Technology Report Finland United States United Kingdom Singapore Korea Australia Ireland Chile Malaysia Indonesia South Africa China India Russian Federation Bangladesh Ranking (1 to 75) Score (1 to 7)
11 The Affordability Problem Estimated Internet users per 100 inhabitants SWE ISL NOR USA DNK NLDSGP FIN CAN AUS NZL KOR JPN CHEHKG GBR BEL TWN DEU AUT IRL EST PRT ITA ISR FRA MYS ESP URY SVK CHL SVN GRC CZE ARGMUS HUNPOL BRALVA CRI ZAF VEN TTO ROM TUR MEXBGR JAM PHL THA COL RUS CHN JOR PAN ECU BOL EGY SLV IDN LKA GTM HND IND PRY UKR DOM ZWE VNM NGA BGD Annual ISP cost for 20 hours of monthly use as % of GDP per capita
12 Hardware, Software and Support Global Information Technology Report United States United Kingdom Ireland Israel Singapore Hong Kong SAR Estonia South Africa Korea India Chile Brazil Philippines Malaysia Turkey Russian Federation China Ranking (1 to 75) Score (1 to 7)
13 Social Capital Global Information Technology Report Finland Slovak Republic Czech Republic Ireland United States Israel United Kingdom Singapore Russian Federation Thailand South Africa Turkey China Nicaragua India Nigeria Ranking (1 to 75) Score (1 to 7)
14 Quality of IT Training and Educaction Global Information Technology Report Finland United States Singapore Israel Canada India Ireland United Kingdom Estonia Korea Malaysia South Africa China Russian Federation Bangladesh Ranking (1 to 75) Your country's training and educational programs for IT (1= lag far behind most other countries, 7=are among the best in the world) Average Score (1 to 7)
15 Ideas on Overcoming Them Organizations need to adjust their mindset Collaboration across sectors is important Not clear exactly how to do it mixture of leadership and consensus Dialogue, incentives, experimentation and analysis are essential
16 Factors for Sustainability Some Goals for Collaboration Improving access for everyone Creating a supportive policy environment Building human capital and institutions Integrating ICT into the economy
17 Selected Learning Opportunities from the Developing World ICT Mobile SMS Pre-paid (fixed and mobile) Cable STD-PCO Other Industries HLL, Nirma,Amul Pizza
18 Priorities for Future Growth and Development with ICTs Enhance communication and coordination Leverage the Network Effect: 1 telephone is useless Research! Educate policymakers, business leaders, civil society Create incentives Leadership -- look for opportunity/take risks
19 Priorities for Future Growth and Development with ICTs Put your resources where your mouth (and the market) is Include a social mission, but do business Employ entrepreneurship and existing networks to meet market needs Use local context even though some may appear to be problems Remember that the greatest challenges are political, institutional and cultural change
20 Thank You More Information More on the Global Information Technology Report and ITG research at:
21 Smith s Cross Functionalism Philanthropy Worldcom Marco Polo Intel Teach to the Future Government Relations Verizon Literacy AT&T Learning Network Marketing Grameen Phone Microsoft Working Connections Cisco Networking Academy AOL Helping.org Human Resources HP e-inclusion Research IBM Reinventing Education Bertlsmann Foundation
22 GITR More Information Information Infrastructure micro-index = 5/9 Hard Data + 4/9 Survey Data Hard Data 2.1 Teledensity, Years to first adopt cellular telephony 2.3 Waiting list for telephone lines 2.4 Telecommunication staff per 1,000 mainlines 2.5 Telephone faults per 100 mainlines Survey Data 2.6 Availability of telephone lines for businesses 2.7 Perceptions of broadband Internet access 2.8 Price and quality of Internet connection 2.9 Availability and cost of mobile telephony
23 GITR More Information Hardware, Software and Support micro-index = 2/5 Hard Data + 3/5 Survey Data Hard Data 3.1 PCs per 100 Inhabitants 3.2 Software piracy Survey Data 3.3 Availability of specialized IT services 3.4 Software products fitting local needs 3.5 Competition in the domestic software market
24 GITR More Information Social Capital micro-index = 3/6 Hard Data + 3/6 Survey Data Hard Data 8.1 No schooling in the total population 8.2 Average years of schooling in the total population 8.3 Illiteracy Survey Data 8.4 Political Rights 8.5 Quality of public schools 8.6 Difference in quality of schooling for rich and poor children
25 Sustainable Access in Rural India Key Innovations Network effect not one or two, but one thousand Low cost under Rs per kiosk about Rs 115 daily income to break even Based on entrepreneurs (and leveraging SHGs) Multi-sectoral partnership (academia, private sector, NGO, help from gov t) Wide range of appropriate applications and content (voice and video mail, local egov services) Ongoing qualitative and quantitative research and feedback
26 Sustainable Access in Rural India Early Insights Capturing imagination is key Education and training are early leaders Cost and pricing scheme are utterly important Operator must be the ICT ambassador and champion Business must be designed for local context Figuring out killer aps takes time and experimentation Identifying effective indicators (and tracking them) and developing frameworks for understanding impact is hard
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