Impact of Technology at Bottom of the Pyramid

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

REACHING OUT TO THE NEXT BILLION CUSTOMERS

The Next billion includes;Bottom of the Pyramid communities

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• 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•}

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?

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Idea Concept Prototype Market testing Launch

IN THE CONTEXT OF TARGETING BOP: IS THERE A NEED TO IMPROVE INNOVATION?

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Partial understanding ofBOP context would handicap each stage of the product / service innovation process.

?

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

LESSONS CAN BE LEARNED FROM INTERNATIONAL DEVELOPMENT PROJECTS

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

•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

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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

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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

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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

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

Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

INDICATORS TO MEASURE THE IMPACT

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Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

First time exposure to computers, and familiarization with ICTs (seeing & touching)

Generate interest to learn, interact, use or develop application skills

Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

Develop application skills with the assistance of trained staff

Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

Further self learning (added skills) without assistance (or limited assistance)

Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

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

Systematic application of computers/ internet for self or others benefits (teaching, database development etc.)

Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

Acquiring qualifications

Self learning

Exploration

Application

Exposure

Motivation

Skill development

Qualification

PILOT TEST IS BEING CARRIED OUT IN TWO REGIONS: POST WAR COMMUNITIES (NORTH) AND SEMI-URBAN COMMUNITIES (SOUTH)

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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

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

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

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

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

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

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.

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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

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THANK YOU!

Dr. Harsha Liyanagewww.fusion.lk

email: [email protected] eNovation