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Human Factors in Emerging Markets

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Presentation on theme: "Human Factors in Emerging Markets"— Presentation transcript:

1 Human Factors in Emerging Markets
First World Solutions Addressing Third World Needs Per Helmersen Telenor R&D / Ghana Telecom

2 The UN Millennium Development Goals emphasize the need to make available “the benefits of new technologies - especially information and communication technologies - to developing nations.”

3 Community information centers in rural areas
Mpeseduadze, Ghana (Nov. 2005)

4 Trends in developing markets
Continued growth of Internet Café culture in most urban areas (driven primarily by need for communication services, e.g. , chat). Literate and semi-literate users. Rural access is a high priority. Rapid expansion of mobile services to rural regions. Regional ICT entrepreneurship is accelerating. Access to and ownership of mobile handsets is skyrocketing. Could this an alternative platform for “Internet” services for low income communities? Government agencies, NGO’s and regional development banks are increasingly targeting poverty, gender inequality, disease and illiteracy by means of, telemedicine, e-commerce, e-governance and e-learning services (e.g. “One Laptop per Child”)

5 One Laptop per Child (The $100 Laptop)
MIT Media Lab initiative. To “provide children around the world with new opportunities to explore, experiment, and express themselves.” Production starts when 5 – 10 million units have been ordered (Quanta Computer Inc., Taiwan).

6 HF challenges in developing markets
As a result of the extension of service into rural areas, an increasing number of illiterate customers is to be expected. Operators & service providers increasingly need to address the needs of numerous linguistic communities and subcultures within a single market. Development of financing and payment options that are sensitive to the social & financial circumstances of end user communities (e.g. Grameen Phone’s micro-entrepreneurship initiative and pre-payment options). Develop products & services that reflect the needs of intended users rather than uncritically and mechanically “porting” them from more developed markets. Acquiring and using knowledge about local culture and social context to leverage successful product development and deployment.

7 HF challenges in developing markets
Individual as a biological entity Individual as an information processing entity Social setting Cultural context As a result of the extension of service into rural areas, an increasing number of illiterate users is unavoidable. Operators & service providers increasingly need to address the needs of numerous linguistic communities and subcultures within a single market. Development of business models and payment options that are sensitive to the social & financial circumstances of end user communities (e.g. Grameen Phone’s micro-entrepreneurship initiative and pre-payment options). Develop products & services that reflect the needs of intended users rather than uncritically “porting” them from developed nations. Acquiring and using knowledge of local culture and social context to leverage successful product development and deployment.

8 The HF track record in emerging markets is disappointing (so far) due to:
Primary focus on individual user attributes rather than social setting and cultural context. Attraction to cutting-edge and “next generation” technologies & application areas. Hassles & hazards associated with research and collaborative design in remote and “uncivilized” areas. Attraction of jobs and money (research funding). Myths & orthodoxies surrounding the adoption and relevance of ICT in the Third World.

9 Myths (Prahalad & Hart)
Current cost structures make it difficult to compete profitably. The poor cannot afford and have no use for “Western” products and services. Only developed markets can appreciate & benefit from new technology. Aspiring poor are not important to the long-term viability of our business. Too “humanitarian” and CSR oriented. Doing “good” and doing “well” are not compatible. The Myth of Overriding Physiological Needs (Rangaswamy & Toyama)

10 Scope of HF in emerging telecom markets
Individual as a biological entity Individual as an information processing entity Social setting Cultural context

11 Thank you for your attention!


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