CDI UK Feasibility Study 2009 - Digital Inclusion Research

Centre for Digital Inclusion Transforming lives through technology, education and citizenship

UK Feasibility Study Summary final report by Zeitgeist Advisors

August 2009

(cc)CDIEuropeLtd.Non‐commercialuseonly.2

  This presentation sets out the findings and recommendation about the feasibility for the Centre for Digital Inclusion (CDI) to launch operations in the United Kingdom.

  Based on the initial feedback from digital inclusion players in the UK, CDI’s model of combining ICT training of individuals with community problem solving and citizenship empowerment had been identified as a potentially valuable contribution to the digital inclusion landscape in the UK. The study aimed to verify this hypothesis and to define the role CDI could play in the digital inclusion landscape in more detail .

  Zeitgeist Advisors (ZA) was contracted to assess UK market conditions, the value chain of digital inclusion as well partnership and financing options for a pilot project.

  The project was completed between April and August 2009.

Introduction


  For the study more than 45 interviews were conducted with experts involved in the fields of digital inclusion, youth, entrepreneurship, community & social media, community development & regeneration, informal learning and citizenship education.

  ZA completed site visits to UK Online Centres and community organisations in London/ Hackney, Nottingham, Shipley, Manchester, Cambridgeshire, Black Country, Birmingham and London/ Lambeth.

  ZA conducted two informal discussion groups with young people in Hackney (Pedro Club) and Southampton (Fairbridge).

  For the project ZA attended four conferences: National Digital Inclusion Conference, Shine ‘09, Reboot Britain and Connected Generation ’09.

  An expert brainstorming session was hosted by CDI trustee Charles Leadbeater which provided additional input into the project as did the information provided by CDI’s operations and strategy teams in Rio de Janeiro.

Methodology


During the 16-week project different key elements of feasibility were studied

Project Approach

Kick-off and management arrangements

Community partnership

options

Final Report & Go/No-Go Decision

Digital & social exclusion landscape

Positioning in digital

inclusion process Pilot

programme options

KPI definition & operational

requirements

1 2

3

4

5 6 7


  The technology, digital inclusion and education landscape in the UK is very different from any other country CDI has been operating to date.

  The digital inclusion sector in the UK is well-developed, crowded and competitive. There has been significant investment by the public, private and third sectors in the field during the past 10 years.

  There are leading-edge technology and social enterprise initiatives especially in the areas of social and digital media.

  Young people – traditionally CDI’s core target audience – have been exposed to a wide range of technology through education and work. More than 97% of 16-24 year olds are using the Internet.

  The average skill level in the UK is significantly higher than in any other country CDI has been operating today, thus there is a larger premium on advanced knowledge-based skills.

Executive Summary

Observations


  CDI’s traditional model of basic IT skills is not needed in the UK as there is a broad range of players involved in that space.

  CDI needs to shift its model to new technology platforms that are attractive to young people – primarily Internet and application enabled mobile phones like the iPhone.

  While keeping the spirit of CDI’s pedagogy it will need to shift from an action to a critical-learning based approach to meet the requirements of advanced knowledge-based economies like the UK.

  In order to achieve compelling outcomes CDI will have to have a bigger focus on establishing a full eco-system of support for its course graduates.

  Testing this approach will need to involve a series of pilots; the learnings from which will add value to the digital inclusion space, drive CDI brand recognition through innovation and thought leadership, and create a range of fund-raising opportunities.

  The experience gained by CDI on smartphones in the UK will allow it to expand both into other developed markets and developing countries with poor fixed Internet infrastructure. The UK initiative is thus of high strategic importance for CDI globally.

Executive Summary

Conclusions


Agenda

3

1 Digital and social exclusion landscape

Position in digital inclusion process

Pilot program options

Partnership analysis

Pilot design

Operations & financials

Conclusions & recommendations

2

4

5

6

7


% of population

Source: Internet World Stats 2009

* In progress + in planning ‘’ fundraising-only today

Internet penetration (2008)

Internet penetration benchmark UK Internet adoption is amongst one of the leading worldwide. CDI has typically been

operating in much less mature technology markets.

74% 71%

51% 49%

39% 34% 32%

26% 25% 23% 18%

12% 9% 7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Internet penetration Global average


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

2006 2007 2008

all 16-24y 25-44y 45-54y 55-64y 65+

% of adults, Great Britain

Source: Office of National Statistics 2008

Adults who have never used Internet

93% 86% 89%

82% 74%

56%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

2008

Degree level or higher Higher educational qualification A Level GCE/ GCSE (A-C grade)

% of adults, Great Britain Internet access & educational qualification

Internet usage UK More than 97% of all young people are using the Internet, even more than 50% of

non-skilled adults use the Internet

% of adults, Great Britain % of adults, Great Britain


During the last decade the UK government has had a strong focus on digital inclusion

Timeline policy initiatives

2000 UK Online Centres

created (DfES)

1998-2003 Tools for schools & capital

modernisation fund (Big Lottery)

2000-2003 Wired-up

Communities (DfES) Computers Within

Reach

2005 Inclusion though

Innovation & Digital Strategy

(Cabinet Office/ DTI)

1999-2004 Office of the e-Envoy (Cabinet

office)

2004-2007 E-Government Unit

(Cabinet office)

2007 Digital Challenge DC10+ Network

(CLG)

2008 Digital Inclusion

Action Plan Consultation (CLG)

2008 Minister for Digital Inclusion (Cabinet)

2009 Digital Champion

appointed

2009 Digital Britain report (BERR/

DCMS)

2006 Digital

Inclusion Team

2009 Informal Adult Learning

whitepaper (DIUS) & Informal Learning Transformation Fund

2008 Communities in Control

Whitepaper & Digital Mentors Programme (CLG)

2009 Aspirations & attainment in

deprived communities Whitepaper (CO, DCSF, CLG)

  £5 billion invested in formal and informal educational ICT infrastructure from 1997-2007   School pupils per computer in 2007 -> 6:1 in primary and 3.6:1 in secondary education

Sources: Zeitgeist Advisors, Neil Selwyn (2008)


  Digital Inclusion means different things to different people:

─  giving people the basic ICT skills to participate in the knowledge economy ─  closing the Digital Divide ─  making technology and electronic services accessible for the disabled and elderly ─  giving people broadband Internet access ─  preventing economic exclusion from electronic commercial and public services ─  preventing social exclusion from digitally connected communities ─  using any digital technology to tackle social exclusion ─  using any digital technology in communities to tackle area-based deprivation

  “The use of technology either directly or indirectly to improve the lives and life chances of disadvantaged people and the places in which they live” (Digital Inclusion Team)

Digital inclusion – policy definition Digital inclusion is a very broad and unfocused term in the UK policy debate.

Different players pursue different objectives.


E-society UK

Especially the group of e-marginalised people are of interest to CDI

Typology   Not averse to the use of electronic technologies   Lack the disposable income to equip

themselves with them   Lack training and education to understand how

to make effective use of them

Personal characteristics   Many unskilled young workers   Many live in low rise council estates   Many affected by high unemployment, low

incomes and reliant upon public services

Source: e-Society Profiler CASA/ Experian 2006 More information in Annex 2: Digital and social exclusion landscape


UK consumer-only smartphone sales

New technology trends

Mobile Internet and mobile application usage are major areas of growth

170

490 560

970

1,230

4%

7%

9%

12%

16%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

200

400

600

800

1,000

1,200

1,400

Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009

Smartphone unit sales

Smartphone sales a % handset sales

  Mobile broadband sales grew from 76,000 in 02/08 to 263,000 in 05/09

  Q1 ’09: 8 million people accessed the Internet via their mobile phones compared to 5.7 million in Q1 ’08

  Increasing take-up of smartphones drives mobile Internet usage

  Smartphones defined by Ofcom as handset running an full operating system (e.g. Symbian, Android, iPhone)

Source: Ofcom The Communications Market Report 2009


16 36 70 147 248

361 513 587

719 817

1,018 1,093 1,319

1,574

0

500

1,000

1,500

2,000

2,500

3,000 Million users

PC Internet growth 1995-2008

0

500

1,000

1,500

2,000

2,500

3,000

DSL Internet Cable modem Internet

Fixed other Internet Mobile Internet

Million users Broadband Internet forecast

PC vs. mobile broadband Internet Ovum forecasts that more than 2 billion people will be using the mobile broadband

Internet by 2014. These are more users than the PC Internet today.

624 805

1,031

1,320

1,696

2,209

2,762

Source: Internet World Stats, Ovum broadband forecasts 2009


Digital Inclusion Landscape – Summary

The UK landscape is a for shrinking and crowded market traditional digital inclusion

  Internet adoption: UK is a significantly more mature market and the digital divide is smaller than in any other country in which CDI operates.

  Access: Computer access is already wide-spread due to heavy public and private investment in the education and ICT sector.

  The E-marginalised are often young, unskilled or unemployed living in council housing

  Mobile Internet & smartphones: Smartphone market share and mobile usage have grown rapidly in the last few years.

  Youth & mobile: Young people are much more likely than older people to use Internet services on their mobile phones. More than half of 18-24 year olds are aware of what an mobile application store is, compared to less than a quarter of the population as a whole.

  Access to the Internet globally will be increasingly via handsets and the mobile Internet

More information and statistics about the “Digital and social exclusion landscape” in Annex 2.


Agenda

3





Pilot design



2

4

5

6

7


During the last 10 years the value of different initiatives has shifted with players adapting to changes and expanding into new areas

Digital Inclusion value chain

  Wired-up communities

  Community networks

Examples of initiatives

Safety & security

IT outsourcing & data base design

Programming & advanced skills

Digital media skills

IT maintenance & support

Computer recycling & procurement Basic IT skills

Website design & other services

Internet cafe & printing services

Access to IT

High value offer in UK

1999-2000 2001-2003 2003-2005 2006-2009

  UK Online Centres   Easy Internet

cafes

  Recycle IT   Cosmic in Devon

  WiseKids   CHC BIT   4iP   Talk About Local,

PVM

Current economic value


Most of CDI’s existing activities are no longer priority areas for the UK

CDI focus vs. UK market focus

Safety & security








Access to IT

CDI   Focus on access, basic

skills & recycling   Expansion into services,

maintenance & support

Heavy focus

Medium focus

Low focus Very low or no focus

Safety & security








Access to IT

UK market   Focus on programming

skills and digital media   Decline of recycling,

Internet cafes & support


The digital inclusion value chain will expand further as new technologies will grow

The next bounce of the ball?

Safety & security








Access to IT

1999-2000 2001-2003 2003-2005 2006-2009 2010-?

Mobile Internet skills

?

Mobile Internet skills will be more important as mobile Internet and smartphone markets grow Fixed broadband is likely to become seen as an essential utility with universal access

Universal high-speed broadband


Competitive Map by Social Change Theory No existing UK digital inclusion organisation offers a systematic social

entrepreneurship learning programme as part of its curriculum

Learn social entrepreneurship

Support social entrepreneurs

No explicit social focus

Document social issues

Moving IT Forward

Talk About Local Social

by Social

IT in schools

Citizens Online People’s

Voice Media

We Share Stuff

UK Villages

CMA Podnosh ELATT

UK Online Centres

Cambridge Archive Network

CDI

CDI’s 5-step pedagogy enables people to achieve social change in their communities is unique in the UK and offers an opportunity


Moving into the mobile Internet space addresses both a technology and social change gap in the UK market

Technology & Social Change Matrix

Moving IT Forward

Mobile Internet skills

Social & digital media skills

IT & Internet skills




Learn social entrepreneurship

Talk About Local

Social by

Social

IT in schools

Citizens Online

People’s Voice Media

We Share Stuff

UK Villages

CMA Podnosh

Handheld learning in

schools Fix My Street

ELATT

UK Online Centres

CDI 1.0

CDI Mobile

CDI 2.0

Cambridge Archive Network

CDI has the opportunity to become a market leader in the emerging mobile Internet space and to expand the concept of digital inclusion further


Digital Inclusion Positioning – Summary New technologies like mobile will drive value creation in the digital inclusion value

chain in the future

  Digital inclusion – a dynamic concept: The activities of UK digital inclusion players have shifted during the last 10 years as markets have evolved

  Commoditisation of digital inclusion services: Initially high priority and high value services become commoditised over time

  A mix of different value services: Long-term successful players have adapted to changing market conditions and are offering a mix of higher and lower value services

  High competition for lower value services: There are many commercial, public and third sector players involved in the provision of basic access and skills services

  Mobile Internet opportunity: CDI has an opportunity to be the first to develop a new mobile Internet skills service, thus extending the concept of digital inclusion further

More information about the “Position in digital inclusion process” in Annex 3.


Agenda

3





Pilot design



2

4

5

6

7


Income through services Up-to date skills

Valuable to community

partners Technology pull

  Technology attractive to CDI students

  CDI’s core target group: young people

Criteria for pilot program options

  Clear benefits for partners to engage

  Access to expensive technology

  Contacts to companies or new resources

  Offers students leading skills to leap-frog into education, employment, entrepreneurship

  Community partners and students have potential to earn additional income

Based on the historical success of CDI’s model in Latin America there are four criteria for pilot program options in the UK:

CDI’s successful model can only be replicated when all of these criteria are fulfilled


Education only model

  Advice and consult public and third sector organisations on CDI’s educational and distribution model

  Advice the trainers or advice other network organisations

Basic IT & Internet skills model

Mobile Internet model

Social & digital media model

Pilot program options Based on its existing model CDI has four different strategic options to positions itself

in the UK

  Use CDI model to offer services to niche segments not yet digitally included and not covered by other service providers

  Compete against digital inclusion providers based on more effective educational model

  Expand into the field of social and digital media by partnering with existing basic digital inclusion players using CDI’s educational model

  Expand into nascent mobile Internet and application segment by partnering with existing basic digital inclusion and social media players using CDI’s educational model


The mobile Internet today fulfils many of CDI’s historical success criteria

Evaluation of four pilot options

Education only model

Basic IT & Internet skills model

Mobile Internet model

Social & digital media model

Income through services

CDI only

Shrinking margins & services

Advertising and advice

App store, but unproven yet

Valuable to community

partners

Theoretical not practical value

Only to partners not yet using IT

Proven demand, but competitors

No other offering, but new challenge

Up-to date skills

No impact on skills

Catching-up with majority

Social media skills in demand

Mobile apps skills in high demand

Technology pull

No technology used

Declining group of non-users

Gov & third sector focus

Attractive to young people

ParFallyFully NotatallFulfilscriterion:


Pilot Program Options – Summary

Mobile Internet as best option for UK pilots

  Historical success criteria: CDI’s historical success was based on a combination of right market timing & attractive technology, clear value proposition to partners, up-to-date technology skills and new income opportunities for CDI students & partners

  Mobile Internet pilots as a high-risk & high-reward options that has the potential to fulfil historical success criteria

  Mind-share & youth opportunity since there is no other established player in the market and young people are most aware of new mobile technologies

For detailed more information about the pilot option assessment see Annex 4.


Agenda

3





Pilot design



2

4

5

6

7


The core of CDI’s model is to work in partnership with local organisations

CDI Community Distribution Model

  CDI operates as a network of independent organisations based on a contractual relationship

  CDI provides technology, branding, access to learning know-how, corporate partners and network

  Local partners provide physical space, electricity, local marketing and support and staff to become educators

  Network approach is scalable and allows for local customisation

CDI operates as a wholesale organisation training local community organisations


  Physical space available   Level of security   Electric installations   Internet access

  Level of connections with local community

  Literacy level of population   Community development

expertise   Technology expertise

Community

  Interest and commitment   Successful local social

entrepreneur   Local staff available   Co-investment capacity/

financial resources   Opening hours

Infrastructure Sustainability

Community Partner Selection Criteria CDI operates a thorough system of due diligence and support for all local partners.

Each organisation is scored on a range of criteria

While some criteria will be irrelevant CDI’s model offers a good template for selecting well-run community-based organisations


Partnership Summary Community partners are a core part of CDI’s delivery model while there is no clear

model for collaboration with digital inclusion players

  Digital inclusion partners: There are no immediate synergies from partnering with existing digital inclusion players – and some even consider CDI’s traditional model as a threat

  Delivery model: CDI operates as an intermediary/ wholesale organisation which delegates delivery of its programmes to local community partner organisations

  Due diligence of community partners: CDI has developed a strong and successful due diligence process, but its detailed criteria will need to be adjusted to a UK context.

  Pilot partners: Several organisations have been identified as potential partners for the pilots. A full due diligence will need to be completed.


Agenda

3





Pilot design



2

4

5

6

7


  Not phone specific, but more general   Hybrid with computers for social impact

Focus on smartphone technology

Critical pedagogy & learning

Realistic outcomes

Potential for scalability

Mobile Internet Pilot – Principles The design of the UK pilot program will need to take into account some core

principles:

  CDI 5-step methodology framework   UK education & learning environment specific

  Progression for CDI alumni   Ability of students to learn programming skills

  CDI distribution/ community partner model   Target groups of students

  Two different prototypes need to test key assumptions during the pilot programme:

─ Educational curriculum/ critical learning prototype

─ Technical prototype focused on mobile app development


Three elements will be required for CDI’ s new operating model in the UK

Operating approach

  People come to IT-experienced community partners in deprived areas

  Community orgs select CDI students

  CDI students get high-end mobile phones as part of the programme (monthly fee or volunteering)

  4-month CDI Mobile course working as a small team with educator on social issue while learning technology skills

  Mobile app for social change used, designed and developed

1

2

3


All CDI courses are structured along its 5-step methodology framework

CDI 5-step methodology framework

Community analysis

Problem definition

Solution design

Solution delivery

Impact assessment

Step 1 Step 2 Step 3 Step 4 Step 5

“Read the world” “Research data” “Plan action” “Take action” “Evaluate path taken”

  5-step methodology is a high-level framework, not a detailed course curriculum   Each course is in practice taught very differently in different CDI Communities, subject

to the local community and circumstances   “Action” has two different meanings in CDI context:

─ Practical action of using technology (during course) ─ Social action outside the CDI Community (short-term, mid-term, long-term)


Action-based learning Critical learning

Action-based learning vs. critical learning

CDI’s courses today constitute a combination of action-based & critical learning

Act/ apply

Evaluate Reflect

Theory/ frame-work

Act/ apply

Evaluate

Reflect

Due to the higher education & literacy levels in the UK compared with other CDI operations, there needs to be a strong emphasis on best-practice frameworks for action

For tertiary education enrolment benchmark see Annex 5.


CDI’s 5-step methodology can be linked to different key skills areas in a UK context

Skills Mapping to Original Structure

Community analysis

Problem definition

Solution design

Solution delivery

Impact assessment

Step 1 Step 2 Step 3

Step 4 Step 5

Creative & design, Planning skills

Analysis & research

skills

Technical skills (IT & mobile)

Communication & mobilisation skills

Evaluation skills

  Theoretical input in CDI’s courses in Latin America varies significantly between different types of courses

  CDI UK should engage with educational and business experts in order to develop the theory/ framework inputs for each course


Before launching a prototype CDI UK will need to develop a complete course design which can be tested and evaluated

High-level course flow

  Local partner will need to be actively involved with their local expertise

  CDI existing courses can function as a guide, but only limited practical materials are available to date


A fast prototype will test key assumptions while full pilots will test learning materials and outcomes

Pilot program flow

Develop critical learning course

Launch Refinement & technical prototype Critical learning prototype Months 1 2 3 4 5 6 7 8 9 10 11 12

Fast prototype

Evaluate prototype Critical learning course (full run)

Evaluate pilot

Develop mobile apps course Test mobile app course (full run)

Evaluate pilot

Launch course

Pilot 1: critical

learning

Pilot 2: mobile apps

Eco-system Test eco-system

Pilot eco-system partnerships


In Latin America CDI has a relatively weak, but growing focus on its eco-system

CDI’s traditional eco-system

CDI basic IT course

Employment Apprenticeships

CDI job hunting services

Enterprise Conexão

CDI seed finance

Educator CDI training

Education No links

Advanced courses

  CDI is working in partnership to deliver Conexão

  CDI had some smaller projects to put alumni into apprenticeships

  Becoming a CDI educator has been a core exit route for alumni

  Formal education and advanced skills has been less of importance in Latin America


Partnerships and a strong eco-system will be essential in the UK in order to achieve its ultimate outcomes and ensure students moving on successfully

UK outcomes & ecosystem

For detailed UK eco-system model see Annex 5.

Course Pre-Course

Employment

Education

Enterprise

Next step elements required

  Industry certification & accreditation of training programme

  Apprenticeship programme with companies

  Partnership with further education institutions

  Partnership with social enterprise seed funders & support e.g. UnLtd

  Partnership with commercial seed funders & support

Partners


High-level learning plan The pilots should be completed during a 12-month period including multiple

prototypes and refinements

Launch Refinement Prototypes

Timeline Month 1-6 Month 7-12 Month 12+

Course & Curriculum

  Translation   Initial materials   Skills theory

  Online learning   Evaluation   Full-run course   Marketing

  England launch   Advanced courses   Crowd-funding

Eco-system   Enthusiasts   Technical experts   Enterprises   Education

  Formal partnerships

Course type   1st run of short & fast prototype course (no app development)

  2nd run of no app dev course (by partner org only)   1st run of app dev course

  tbd

Size   5-15 students  1-2 educators  1 partner org

  15-30 students   5 educators   2-3 partners

  50-100 students   10-20 educators   8-10 partners


Pilot Design – Summary A successful pilot programme will require CDI to develop new educational and

technical organisational capabilities

  Technical & critical learning pilots: Two different prototypes should be developed to test key assumptions and speed-up the learning process

  Extending the 5-step methodology: CDI framework will still apply, but will need a stronger focus on skills and frameworks to take into account the UK economic context

  Strong eco-system focus: In order to optimised the outcomes for CDI alumni there is a need to build a strong supporting eco-system of next-step partners early on

  Launch to scale: After the completion CDI should be able to scale the programme very quickly


Agenda

3





Pilot design



2

4

5

6

7


  CDI existing corporate technology partners like Dell

  Mobile phone operators (O2, Vodafone, T-Mobile)

  Handset manufacturers (Apple, Research in Motion, Palm, Nokia)

  Other telecoms operators (Virgin Media, BT)

  Mobile operating system providers (Google/ Android, Microsoft Mobile, Symbian Foundation)

  Successful technology entrepreneurs & Prince’s Trust mentors

  Social business angel networks (VPF members, EquityPlus)

Individuals

  Nominet Trust   Media Trust – Digital Mentors   BIG Mediabox   Esmée Fairbairn Foundation –

New Approaches to Learning   Nesta   Young Foundation –

Learning Launchpad   MacArthur Foundation –

Digital Media and Learning Competition

  4iP network partners

Corporate philanthropy Foundations

Funding types & sources for pilot phase There are a range of potential funders for the pilot projects which will require further

qualification and research


CDI Mobile will need to find a sustainable business model that goes beyond a pure fundraising model

Mid-term sustainability & services

  CDI will need to test and explore new business models in the UK

  CDI 2.0 services are unlikely to be sufficient in a mature UK market

  CDI could explore equity-like investments for further expansion


  Number of course applications   Registration / baseline survey   Interim feedback & attendance   Exit interview/ completion survey

Prototypes Refinement   Number of course applications   Registration / baseline survey   Interim feedback & attendance   Exit interview/ completion survey

Students

Alumni

Community partners

Educators

Pilot project impact measurement In order to create a robust impact measurement approach in the UK, CDI will be

beta-testing its new data management tool plus establish qualitative monitoring

  Online platform   6-month outcome survey   1.5 year outcome survey

  On-boarding interviews   Interim feedback loops   In-depth course end interview   Course adjustments

  Course refinement objectives   Additional feedback loops   In-depth course end interview

  Initial partnership launch with commitments & expectations

  Ongoing feedback on operational challenges, educators performance

  Educator assessment & assessment of partnership and commitments


Operations & financials – Summary

Before launching pilots CDI will need to put certain elements in place:

  CDI Matriz & UK resources: CDI will need to carefully assess whether it will be able to dedicate the necessary staff resources for strategic direction & knowledge-transfer to a new strategic initiative, CDI Mobile

  Governance structure: CDI Mobile will require significant new development and as such should be treated separately from existing desktop-based operations

  Enough investment to allow for closely monitored prototyping & testing: CDI should raise enough seed money that will allow the pilot programme be run with different prototypes and to allow for clearly monitored impact assessment

  Grant-funded seed investment: For the pilots loan or equity-like investment vehicles will be inappropriate and fundraising should be focused on grant funders & individuals as well mobile telecoms companies


Agenda

3





Pilot design



2

4

5

6

7


  Keep existing social change model, but add additional content on research & analysis, design skills as relevant to UK context

CDI Mobile Why?   5-step model works, but will require

additional input to achieve full potential in a developed knowledge economy

Social change model

Technology platform

Sustainability

Eco-system

Recommended pilot option for CDI UK

The mobile Internet and CDI Mobile are the largest opportunity for CDI in the UK

  Use mobile Internet & smart phones as key pull factor for young people, but use IT infrastructure as necessary

  Desktop computers are no longer attractive in themselves

  Existing IT infrastructure can be utilised and leveraged for program

  CDI Mobile needs to be embedded in UK digital inclusion, social entrepreneurship, community development and youth eco-system

  CDI is late to market and initial credibility will depend on partnerships

  Effectiveness of CDI depends on frictionless connection with partners

  Different options for sustainable income streams through mobile Internet apps & mobile Internet expertise for social change

  Only nascent competition in that space from social action point of view

  High and growing commercial demand for mobile Internet skills


  Funders & social investors not interested in CDI Mobile and pilot projects

  Community partners have no space or ability to run CDI Mobile programme

  CDI governance structure does not allow for fast and flexible decision making for the pilots

  CDI UK has neither educational nor technical skills internally to fully deliver programme

  Learning technical mobile app development skills takes longer than CDI basic course

  Smart phones chosen by CDI are not attractive to young people

  Low motivation of students & high-drop out rates

Risks

 E

co-system

Mitigation actions   Mobilise CDI networks over short, but

condensed period in order to assess interest   Adjust due diligence criteria for mobile Internet

programme & sign clear partnership agreement   Adjust governance structure that allows for

entrepreneurial and flexible operation with minimum bureaucracy

  Ensure educational knowledge transfer through LatAm educator & build network of sympathetic developers

  Turn mobile app development into advanced course or “outsource” development work to technical volunteers until simple tools exist

  While testing with one type of smart phone design programme to be independent from technology vendor/ operating system over time

  Increase barriers to entry and charge monthly fee (or volunteering commitment) to students

Possible risks for CDI Mobile success As a new innovative programme CDI Mobile has a range of risks that require

mitigation


For more information

Read the project and pilot blog: http://www.appsforgood.org Visit CDI Europe website: http://www.cdieurope.eu Visit CDI global website: http://www.cdiglobal.org

This report was produced by Zeitgeist Advisors Ltd. Iris Lapinski Director Zeitgeist Advisors Ltd. [email protected]


Annex


Annex 1 Interviewees & research reports


ZA conducted expert interviews with the following people:

Interviews (1)

AliceGoldie MigrantResourceCentre,OnlineCentreCo‐ordinatorAndrewEntecoR CambridgeOnLineAndrewPurvis Fairbridge,CEOAnneFaulkner UKOnlineCentresBenMetz Ashoka,DirectorUKCarol PedroClub,HackneyCassieHague FuturelabDamaniGoldstein ConnectedCommuniFes/RSASeniorResearcherDanMcQuillan MakeYourMark/SocialInnovaFonCampDavidWilcox SocialReporter,SocialbySocialDavinderKaur SWEDADeborahCarrington BlackCountryConsorFumLtd,ExecuFveDirectorDonMacdonald NorthWestLondonOnlineEllieStoneley DC10+/UKVillagesEssiLindstedt CiFzenshipFoundaFonGaryCopitch People'sVoiceMediaHelenMilner UKOnlineCentersCEOImranJamal BRACJoHiggins‐Cezza Becta,HeadforDigitalInclusionJohnBateman YouthUK,CEOKevinHarris Communitydevelopmentandsocialmedia,ex‐CommunityDevelopmentFoundaFonKevinRussel UKOnlineCentresLeonCych Learn4LifeMargeryEllis ShipleyCollegeMarilynBurrill BlackCountryICTGateway'sDigitalInclusionManager,BirminghamMichaelGrimes BirminghamBloggers,CiFzenshipFoundaFon


ZA conducted expert interviews with the following people:

Interviews (2)

MikeCushman LSE,ResearcheronDigitalInclusionNatashaJohnson‐Richards GoDigitAllNickBooth PodnoshNickDickens PrisonsICTAcademyPeterBailey BigLoReryFundSimonBerry ex‐RuralNetSimonBlake NewPhilanthropyCapitalStephenDodson DC10+StephenKearney HighTreesCommunityDevelopmentTrust,LambethSteveAlcock NFTESteveCapes CambridgeLibraryLearningServicesSteveThompson DigitalVillagesStuartParker WesharestuffTimDavies YouthEngagementOnlineTomGaskin CounFngCows/UKYouthWorkWillDavies Researcheronsocialcapital‐digitalinclusion/PodnoshWillPerrin TalkAboutLocalWilliamHoyle CharityTechnologyTrustYasrabSharif MovingITForward


  Young people living in deprived areas in Sandwell, Hackney & Southampton: ─  Mobile phones: iPhone, Blackberry Storm, etc. ─  GPS systems ─  iPod and music players ─  Gaming consoles: PSP, Xbox360, Wii

Feedback by young people

What technology inspires you?


  The Internet in Britain: 2007. Oxford Internet Institute. Bi-annual report that monitors Internet usage patterns and reasons for not getting online

  A review of the current landscape of adult informal learning using digital technologies: 2009. Futurelab. Very recent overview of different initiatives and activities of informal adult learning with technology in the UK

  Digital Divide: 2007. Futurelab. Focussing on the social dimensions of the digital divide and the avoidance of technical solutions.

  Realising the potential of new technology? Assessing the legacy of New Labour’s ICT agenda 1997-2007: 2008. Neil Selwyn. Oxford Review of Education

  Penceil project papers 2005-2006. Mike Cushman. London School of Economics.

  Aspiration and attainment amongst young people in deprived communities. Discussion paper: 2008. Cabinet Office Social Exclusion Taskforce.

Academic reports & research

There are a few thinkers criticising the current debate around digital inclusion


  Interim report Jan ‘09, final report to published June ’09 driven by BERR and DCMS

  Covers a broad range of topics including: ─  Next generation access networks ─  Digital content and rights ─  Universal service obligation for broadband ─  Digital skills and media literacy

  Most of the political debate is around the first 3 areas especially:

─  market-led approach in NGA infrastructure investment and the role for operators,

─  digital TV and radio switch-over ─  creation of a new Rights Agency to protect

copyright online ─  merger of public service broadcasters ─  2 Mb/s universal service commitment

  Digital Inclusion and literacy play a smaller role: ─  digital life, work and economy skills ─  National Media Literacy Plan

Digital Britain Report (Lord Carter) Digital Inclusion Action Plan (2009)   Consultation report published in 2008, final report to be

published mid- 2009

  Driven by digital Inclusion Minister, but located primarily in DCLG

  More a thought piece about an extremely broad definition of digital inclusion and less about actual action points or investment commitments

  Lists the range of initiatives that are already happening especially the Building Democracy Innovation Fund and its investment in MySociety projects

  Digital Champion, Charter for Digital Inclusion, expert taskforce and cross-government coordination team suggested

Key policy reports There are two recent government reports that have received widespread attention in

the area of digital inclusion


  Reply to DIUS informal learning consultation 2008 especially annexes. Maps the experiences and learning journeys of different UK Online Centre users, but highlights the challenge for funding.

  Digital inclusion, social impact: a research study. 2008 by Ipsos Mori. Analysis of the 20 Social Impact Demonstrator projects across different type of Centres.

  Does the Internet improve lives? 2009. Research report based on focus groups of Internet users and non-users. Non-users split equally in Digitally Excluded and Rejectors. Rejectors tend to be better integrated into their local communities than Excluded.

Research by UK Online Centres UK Online Centres has been publishing a range of externally commissioned research

to make the case for its effectiveness and ongoing funding


  Connecting the Countryside: An evaluation of Capital Modernisation Funded UK online centres in rural areas: 2004. Recommends decentralised approach to rural centres and highlighted innovative approaches to revenue generation.

  Evaluation of CMF funded UK online centres - final report: 2003. Hall Aitken. Overall report assessing UK Online Centres that concluded that community and voluntary sector UK Online Centres (45% of all UK Online Centers) are more effective in addressing the most excluded groups.

  The future of community-based UK online centres – Discussion paper to DfES. Direct Support: 2002. Focussed on the strength of community based UK Online Centres.

  Service transformation - a better service for citizens and businesses, a better deal for taxpayers. 2006 by Sir David Varney. Focussed attention on public service delivery through UK Online Centers.

  Government on the Internet: progress in delivering information and services online. 2007 National Audit Office. Recommends to use UK Online Centres more directly for the delivery of an e-government agenda.

Evaluation of UK Online Centres Evaluation shows that community and voluntary organisations are the most effective

UK Online Centres, but public e-service delivery is increasingly demanded


Annex 2 Digital and social exclusion landscape


%, Great Britain Households with Internet access

%, Great Britain Households with Internet access by region

Internet access UK

46% 50% 51%

55% 57% 61%

65%

0%

10%

20%

30%

40%

50%

60%

70%

2002 2003 2004 2005 2006 2007 2008

74% 73% 70%

67% 67% 62% 61% 61% 61%

56% 56% 54%

0%

10%

20%

30%

40%

50%

60%

70%

2008

South East London East of England

South West Wales Yorks & Humber

East Midlands West Midlands Scotland

North West NI North East

More than 2/3 of households are accessing the Internet at home. There is a significant difference between different regions



0% 5% 10% 15% 20% 25% 30% 35% 40%

Don't need Internet

Don't want Internet

Equipment costs too high

Lack of skills

Access costs too high

Access to Internet elsewhere

2006 2008

% of non-Internet users Reasons of household for no Internet

Internet non-usage Lack of interest and no need are becoming more important factors for non-Internet

usage which lack of skills are less important


  Internet adoption is flattening out and non-users are late or non-adopters


0% 20% 40% 60% 80% 100%

At another place

Hotspot (wifi)

Internet cafe

Public library

Place of education

Another person's home

Place of work

Home

2006 2007 2008

% of non-Internet users, multiple answers allowed Reasons of household for no Internet

Place of Internet access Only a small minority access the Internet through public access spaces like Internet

cafes and libraries


  Individual access continues to grow in importance


Technology adoption

Technology adoption curve

The UK has only few late adopters left

Cumula&veAdop&ons

Time

m

  Adoption of new technologies typically takes time and follows the shape of an S-curve

  Ceiling penetration is defined by addressable market (m) estimate, considering, affordability analysis and covered population

  Adoption curve based on coefficient of innovation and imitation

Brazil Internet adoption

UK Internet adoption


  University College London - e-society profiler based on 2007 Experian data: ─  E-unengaged ─  E-marginalised ─  Becoming Engaged ─  Entertainment and Shopping ─  E-independents ─  Instrumental E-users ─  E-business users ─  E-experts

  UCL – London profiler for social and digital exclusion in London   “Social and Digital Geographies of Great Britain” by the Digiteam at the Department

of Communities and Local Government

Mapping digital exclusion There are a few academic and commercial institutions that have developed maps for

different levels of e-inclusion

For reference see links on blog: http://cdiukfeasibility.wordpress.com/2009/06/16/e-society-maps/


Parallel to the age structure of different regions the E-unengaged are located primarily in the North of England

E-society maps Group A: E-unengaged

  The ‘E – unengaged’ are typically groups that do not have access to electronic communications or technologies. Most are too old, too poor or too poorly educated to be able to access them, and instead traditionally rely upon personal contacts they trust for advice. Within this Group there are low levels of literacy and many people do not feel that their life outcomes are much subject to their own decisions.

  Members of this Group tend to live in the poorer areas of traditional mining and manufacturing towns and to have conservative social attitudes. A high proportion of the Group is made up of elderly people, many of whom live in social housing or sheltered accommodation.

Source: e-Society Profiler CASA/ Experian 2006


E-marginalised groups tend to be younger, but very much concentrated in urban and per-urban contexts

E-society maps Group B: E-marginalised

  The ‘E – marginalised’ are not necessarily averse to the use of electronic technologies but often lack the disposable income to equip themselves with them, or the training and education needed to understand how to make effective use of them.

  Many members of this Group are relatively unskilled young workers, many of whom are in manual occupations. Many also live in low rise council estates, in areas of high unemployment, low incomes and where people are reliant upon public services.

Source:e‐SocietyProfilerCASA/Experian2006


E-experts tend to be concentrated in the South-East

E-society maps Other groups

GroupC:Becomingengaged

GroupD:Efor

entertainmentandshopping

GroupE:E‐independents

GroupF:InstrumentalE‐

users

GroupF:E‐businessusers

GroupH:E‐experts

Source:e‐SocietyProfilerCASA/Experian2006For more information see links on blog: http://cdiukfeasibility.wordpress.com/2009/06/16/e-society-maps/


Marginalised and expert users are living very close to each other in London

E-society maps London

Source:LondonProfiler2008/9

  There is not one concentrated geographical area in London, where people are systematically digitally excluded


Areas of deprivation are larger than areas of e-marginalised groups

Index of Multiple Deprivation London

Source:LondonProfiler2008/9

  There are geographical areas in the South, East and West of London which support from multiple deprivation


% UK Take-up of mobile broadband Q1 ‘09

Mobile broadband & mobile apps

New mobile technologies are most used and known by the well-off and young

19%

12%

8% 8%

0%

5%

10%

15%

20%

25%

30%

AB C1 C2 DE Socio-economic group

52%

45%

30%

18%

0%

10%

20%

30%

40%

50%

60%

Aged 18-24 Aged 25-34 Aged 35-44 Aged 45-54

app stores all

% Public awareness mobile app stores

Source: Ofcom The Communications Market Report 2009


Annex 3 Position in digital inclusion process


  Public sector ─  local authorities, government

departments, QUANGOs)   Third sector/ social enterprises

─  charities, community interest companies, community initiatives

  Private sector ─  SMEs or large for-profit companies

Sector type CDI Community domains   Access to technology

─  new or refurbished computers ─  connectivity & support ─  special access equipment

  IT skills & training ─  Face-to-face or remote courses ─  Formal & informal learning

  Community development & social focus ─  Using technology for a social aim

  Entrepreneurship ─  Support to set-up own initiatives

Mapping players & activities In order to get a full picture of organisations competing in the area different sectors

and activities need to be taken into consideration

A market map needs to take into account CDI’s approach to citizenship and technology education which broadens the competitive space even further


There is a wide range of different players working on the topic of digital inclusion

Digital inclusion players by sector

BECTA

DigitalUnite

MicrosoiDigitalLiteracycurriculum

FujitsuServices

Cisco

BT

  Third sector and government initiatives dominate the digital inclusion sector

  Academics often play a key role in action research as well as social media initiatives

  Social media and community reporting are growing


No player offers the same combination of training elements, but there are players in each of CDI’s domains

Digital inclusion players by CDI domains

MakeyourMark

  Access to technology is a very crowded sector with significant public sector investment in the past

  IT skills and learning through technology has been mainstreamed into education

  Citizenship education is a dedicated subject in schools

  Social media initiatives are growing fast.

Prince’sTrust


Mediatrust

Most players are focusing on access and skills, but more are pushing into the community development space with a social focus

Competitive map of UK landscape

Community Media

Association

Wired-up communities

Community & youth centres

MovingIT

Sect

or ty

pe

CDI Community domains

Access to technology IT skills & training Community dev.ment & social focus Entrepreneurship

Publ

ic

Third

/soc

ial

ente

rpris

es

Priv

ate

UK Online Centres

Citizens Online

Tools for Schools

RecycleIT Make Your Mark

Fix my street Talk About

Local

Microsoft Digital

Literacy

BT

ELATT

Fujitsu Services Cisco

Eco Computer

Connexions

Home access

Becta

Digital Unite

LSC

People’s Voice Media

Learndirect

Ruralnet

NFTE

Podnosh

Prince’s Trust


Digital inclusion & Social Change Theory

There are different theories of social change used in the digital inclusion space

  None   Sole focus on

learning technical skills

  “Give people a voice”   Train people to

express their thoughts and to document their life realities

  Identify people who are already involved in community

  Teach them to use technology, so they can be more effective

  Structured process to make people conscious of their environment

  Train people in social mobilisation

Activities

Theory of social change   None   Only individual

  New voices will attract attention and other people will act

  Existing community activists achieve more social change

  New networks are created in community and people become social entrepreneurs

Teach social entrepreneurship




Issues

  No social change   Unclear link between voice and action

  No new people   Small target market

  People might not want to become active in community


Annex 4 Pilot program options


Strengths

  Low investment costs   Potentially large impact on other

organisations and public sector

Opportunities

Weaknesses

Threats

Education only model – SWOT

  Shifting UK learning discourse towards Paulo Freire inspired education model

  Creating network of partners aligned with CDI’s educational model

  Educational expertise based in LatAm, not UK

  Low credibility in UK without operations   Lack of detailed knowledge of UK

education and political advice system   Very slow up-take of advice

  CDI brand discredited due to lack of local education practice and frameworks

  Rejection of advice due to emerging economy background

  Theory not practice-based approach in dissonance with education model

The education only model is potentially a cost-effective way to spread CDI’s expertise but it lacks brand and operational credibility in the UK


Strengths

  Core area of CDI expertise   Proven operating model   Pedagogic material like to require only

translation and small adaptations   Fast roll-out possible

Opportunities

Weaknesses

Threats

Basic IT & Internet skills model – SWOT

  Partnering with UK Online Centres to fill small gaps in provisioning

  Highly competitive with many incumbents   Not formally accredited course   Only attractive to declining niche market   Unlikely to attract attention or support   Computer refurbishing model dying in UK

  Hostility by UK digital inclusion players   CDI school-like model not attractive to

education-distant non-users   Severe limitations to future growth in UK

CDI could deploy traditional basic skills model fast, but growth will be limited to declining niche market


Strengths

  Significant attention & hype in public & 3rd sector

  Large target market of people unfamiliar with social media

Opportunities

Weaknesses

Threats

Social & digital media model – SWOT

  Employment market for social media skills growing

  Partnerships with basic IT skills organisations like Citizens Online

  UK-native initiatives already operate & dominate mindshare

  CDI has limited expertise with social media (blogs only)

  Middle aged, not young target audience

  CDI unable to catch-up with UK social media initiatives

  Number of digital inclusion players involved growing very fast

  High competition for resources in the sector

Social media is currently the “hottest” market for citizenship journalism, but CDI has limited experience lagging behind UK initiatives


Strengths

  No other digital inclusion players involved   Attractive to young people   Very leading edge skills   Access to technology still an issue

Opportunities

Weaknesses

Threats

Mobile Internet model – SWOT

  First market entrant   Attract public attention & support   Prove CDI ability to innovate   Partner with broad range of players   High growth potential   Take model back to developing countries

  Not traditional digital inclusion focus   High (but falling) cost of smartphones   Nascent market   New mobile focused curriculum required   No technical expertise inside CDI on

handheld learning

  Immature market   Growth slower than predicted   Prices do not fall, scaling too expensive   Handheld learning model to different   Funders cannot see value of new

proposition

Moving into the mobile Internet space is a high-risk, but potentially high reward strategy


Examples of civic-minded iPhone apps While still a nascent market US and UK developers have started to turn their

attention to civic challenges:

  FixMyStreet iPhone app developed by MySociety/ UK: -  Report local problems (graffiti, broken street lightning) -  Record problems with iPhone, using camera and GPS

& submit to local council -  Create network of citizens interested in community

problems

  iPhone Apps for Citizen Engagement by Apps for Democracy/ Washington D.C.: -  47 web, iPhone and Facebook apps developed by

volunteers in 30 days -  $2,300,000 value to D.C. city council at a cost of

$50,000 in prize money

  iPhone app iBurgh/ Pittsburgh: -  Allows residents of Pittsburgh to take pictures of civic

embarrassments and hazards and upload them directly to municipal public administration


Annex 5 Pilot design


Gross enrolment ratio (%)

Source: Unesco 2009

* In progress + in planning ‘’ fundraising-only today

Enrolment in tertiary education (2006)

Tertiary enrolment benchmark Tertiary enrolment in the UK is higher than in most other markets CDI has been

operating to date.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

n/a


Working effectively with partners and ensuring a smooth transition in and out of the program for students will be essential for CDI’s success & reputation in the UK

UK learning & technology ecosystem

  The UK eco-system is morecomplex with different actors

  The range of different outcome levels is likely to be broader in the UK

  Formal education & accreditation play an important role in the UK

  Different organisations and intermediaries will enhance or hinder CDI’s outcomes

CDI UK Feasibility Study 2009 - Digital Inclusion Research

Education

digital inclusion cdi

digital inclusion landscape

digital inclusion players

digital inclusion space

fields of digital inclusion

digital inclusion sector

digital media

agenda1 digital