Fieldwork and Analogies In Emerging Markets Research Kentaro Toyama Microsoft Research India March 13, 2008.

Fieldwork and AnalogiesIn Emerging Markets Research

Kentaro ToyamaMicrosoft Research India

March 13, 2008

Outline

Introduction

Fieldwork to Resolve Contradictions

Analogies for Intuition

Multidisciplinary ResearchAishwarya Lakshmi Ratan

–Public Administration and International Development

Jonathan Donner

– Communications

Nimmi Rangaswamy

– Social Anthropology

Indrani Medhi– Design

Kentaro Toyama (Group Lead)

– Computer Science

Paul Javid– Computer Science

Society

Group

Technology

Individual

Society

Group

Technology

Individual

Innovation

Understanding

Impa

ct

Innovation

Understanding

Impa

ct

Rikin Gandhi– Astrophysics

Randy Wang

Computer Science –

Saurabh Panjwani– Computer Science

Computers in Agriculture

Rural Microfinance and IT Rural Kiosk Entrepreneurs

MultiPoint Digital Study Hall

IT and MicroentrepreneursGovernment and Kiosks

Udai Singh PawarAssistant Researcher

Randy WangResearcher

Jonathan DonnerResearcher

Aishwarya Lakshmi RatanAssociate Researcher

Nimmi RangaswamyAssociate Researcher

Rikin GandhiAssistant Researcher

Renee KuriyanResearch Intern

Information ecology of small businesses in developing markets

Multiple mice to multiply the value of PCs in schools.

DVD exchange over postal service and TVs as display for rural education

Study on the challenges and uniqueness of rural kiosk entrepreneurs

Experiments with computing and communication systems in agriculture

The state’s role in rural kiosk projects, with a focus on Kerala and Andhra

Text-Free UI

Indrani MedhiAssistant Researcher

UIs without text for users who are illliterate and may never have seen a computer before

Can computers help existing structures for rural microfinance?

Sample ProjectsMSR India: TEM

TEM Geography

- Projects studied

- TEM projects

Fieldwork to Resolve Contradictions

Resistance to Technology…Many factors inhibit use of

technology:

• High cost

• Reluctance to depart from habits and traditions

• Fear of breaking technology

• Lack of awareness of technology’s functional value

• Barriers of education or literacyA child trying to explain to

her mother what is on a laptop screen.

But, Computers have GlamourExamples of interest in computing

technology:

• Retention rates at schools rise when the school has PCs.

• Rural PC kiosk owners see a rise in their confidence and status in community.

• Office service staff eager to learn about PCs and how to use them.

These examples have little to do with computer function.

A kiosk operator running a near Tiruvallur, Tamil

Nadu

Poverty is Systemic…Stable system makes escape

difficult:

• Lack of money means lack of time to do anything other than survive.

• Lack of time means less time for education.

• Lack of education means fewer job opportunities.

• Lack of job opportunities means lack of money.

“Shocks” to household create downward spiral, and there are always shocks:

• Health problem requires loan• Loan incurs interest• Interest payments prevent capital

accumulation

A government-sponsored mid-day meal in a Tamil

Nadu school.

But, Households still Functional“Good enough” solutions exist:

• Credit: All kinds of loans available

• Healthcare: Traditional medicines, primary healthcare services

• Agriculture information: agriculture extension, word of mouth, salesmenA kiosk operator running

a near Tiruvallur, Tamil Nadu

11

Cheap Alternatives to PC Functionality

PC/Internet capability BOP Alternative BOP Cost (US$ per

hour)

Search for information Social networks Free

Health information Government health clinic FreeAgriculture information Government agricultural extension Free

Accounting Notebook and calculator 0.01

Data exchange Bicycle (local 10 kms, few hours) 0.10

Entertainment Movie in a theatre 0.10

Music CD player + buying pirated CDs (MP3) 0.12

News TV + cable 0.12

Education Private school in Bangalore 0.12

PC/internet access 1 hour in an Internet café 0.25

Voice communication Public pay/ mobile phone to mobile/landline 1.50

Figures are for typical costs in urban India.

(For total talk time, 0.10 -- 0.50?)

Persistent Lack of Money…

Bangalore guideline for 45 minutes of housework a day: Rs. 150 (US$3)… per month!

Typical daily wage for agricultural labor: Rs. 60 per day (US$1.33; Rs. 30 for women)

Public-school teacher’s salary varies from Rs. 3000 to Rs. 8000 (US$67-178) per month.

Teachers on a school trip in Karnataka

But, Willingness to SpendLuxury and aspirational

consumption not unusual:

• Weddings costing Rs. 1 lakh (US$2200) in rural villages not infrequent (cf., avg. per capita GDP of ~US$700)

• Mobile phone ring tones popular even at Rs. 10 (US$0.20) per song

• Photography services to “enhance” photos popular. Cost range from Rs. 100 to Rs. 600 (US$2-12)

A Photoshop’ed photo of a village bride (Maharashtra)

Information is Critical…General lack of information hampers

quality of life:

• Hygiene and healthcare knowledge shallow or superstitious

• Poor fundamental and vocational education impedes career growth

• Very practical knowledge not readily available:– Government schemes for the

poor– Job information– Value of savings and investment

A 12-year-old enrolled in typing lessons at a rural

PC kiosk

But, Information not the BottleneckAccess to information not the

problem:

• Physical transfer of goods/cash often required. Transport infrastructure is poor.

• Levels of formal education very low, even with literacy. Education required to distinguish good information from bad.

• Other factors…– No faith in information source– Lack of time or money– Rigid mindsets

A petty shop owner in Tamil Nadu

Computing Needs Minimal…

Information processing rarely required…

• Little use of documents, charts, spreadsheets.

• Paper , pen, and manual calculation difficult to out-do:– Low cost– Lightweight, durable– Additional training not required

But, Technology can Help!

To draw interest of community.

To process and analyze aggregate data.

To streamline or improve existing processes.

Focus group on a potential technology-for-agriculture

project

Fieldwork Resolves ContradictionsIssues that are contradictory in the abstract, often resolve up close:

• Resistance to new technology – But computers have glamour

• Poverty systemic and multi-dimensional– But households functional

• Stark lack of money– But willing to spend

• Information critical…– But rarely the bottleneck

• Computing needs are minimal– But there are opportunities!

Analogies for Intuition

For-Profit for Non-Profit?

Soup kitchens brand themselves another wayand serve a different kind of community.

Four-star restaurants brand themselves one way, and serve a particular clientele.

The importance of branding in serving food…

It’s difficult to serve both client groups in one physical location.

More Power Isn’t Always Better

Is a helicopter the best option for commuting to school?

– High up-front cost– High operating costs– Limited infrastructure – Requires training to operate– Requires professional

maintenance

Not necessarily, despite…

– Great PR: “Rural girl makes village proud by becoming a helicopter pilot.”

More Power Isn’t Always Better

Is a PC the best option for village information access?

– High up-front cost– High operating costs– Limited infrastructure – Requires training to operate– Requires professional

maintenance

Not necessarily, despite…

– Great PR: “Proud owner of village PC kiosk saves $3000 okra crop.”

<>

What’s “Good Enough”?

If you wanted this, at $20K but couldn’t afford it…

Would you buy this at $10K?

And, what about this, at $3K?

Summary

Introduction

Fieldwork to Resolve Contradictions

Analogies for Intuition

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