Finally! Relief for Hungry Farm Dogs

Last summer, Google introduced its developmental drone delivery system, "Project Wing," with a video showing a dog food air drop to a farmer in the Australian outback. This was at the height of the Ebola outbreak in West Africa, and just a few weeks after deadly mudslides in Afghanistan and India, and a severe earthquake in Ludian, China. Instead of highlighting the disaster relief potential for drone delivery, or demonstrating that drones have uses beyond spying and launching missiles, Google's marketing department promised help for rural dog owners hoping to avoid a long drive into town. And this spectacular marketing miss has since been repeated by other leading tech innovators. The slick videos, launch parties, and press releases for Tesla's home battery, Apple's HealthKit, and Microsoft's HoloLens all suggest there is no world beyond North American and Europe.

These innovations would be a slight convenience or a cool new gadget for developed-country users, but a valuable necessity in developing countries, where systems of house numbering, street naming, postal delivery, grid power, data collection, job training, and healthcare are all lacking. Few will blame tech giants for focusing mainly on lucrative consumer, gaming, and medical markets in developed countries; that's where their marketing and distribution channels exist. And of course there are considerable challenges to launching and scaling in developing countries. But the principle of user-centered design begins with the idea that users really need what you're building. Do doctors in a remote relief center in Nepal need antibiotics delivered by drone? Yes, they do - much more than an Aussie farmer needs a bag of kibble. They also need to report and track cholera outbreaks. And they might also have to walk a scared, inexperienced health worker in another town through an amputation - both wearing a HoloLens connected to a Tesla Powerwall.

The use cases for these innovations in emerging markets are plentiful, and the utility is far more convincing than it is in most mature-market contexts. Tech innovators would certainly claim that developing-country consumers are free to buy and use their new products and services, but they are being priced too high for most people, and there has been no appreciable effort to market or distribute them in developing countries. (Elon Musk claims the Powerwall would be great for "people in remote parts of the world," but China is the only developing country for which Tesla's website has been adapted.) Tech companies that ignore emerging markets are leaving the doors of opportunity open to low-cost imitators and counterfeiters. Instead, they should be developing tailored, affordable versions of these solutions for specific geographies and use cases. They could also pair these new products (through partnership or acquisition) with enabling innovations in payment and delivery so they can market, sell, and distribute them anywhere in the world. Apple will make a quarter of their income - more than $60 billion - in China this year, up from less than $1 billion in 2009. Are tech companies doing what it takes to realize this kind of growth in emerging markets when today's innovations are as common as a second-hand iPhone?

Misgivings and Missed Opportunities

Let's face it. For all the success stories, the uplifting anecdotes about plucky women making a living with their mobile phones, or farmers realizing greater profits by checking prices on the Internet, there are still many in the development community who are deeply ambivalent about the value and impact of technology. Yes, anyone who spends 10 minutes in Nairobi or Kuching can see the ubiquity of the mobile phone, and it's clear that clever, resourceful people are wringing value out of the devices far beyond simple phone calls and text messages. But a longer, deeper look at the impact of technology on society can be troubling. Social norms and traditions are disrupted by material acquisition. Kids who used to kick a ball of woven cloth now play video games. And in the most desperately needy corners of the world, clean water, food, shelter, education and medical care are higher priorities than phones and Internet access.

Within every philanthropic organization, regardless of its mission, there are opportunities to mitigate the negative effects of technology and maximize the positive ones - for individuals, societies, or the organization itself. In past Nuggets, we've considered how to extend mobile broadband and create an environment conducive to mobile-based health, finance, governance, commerce, and education. But what about smaller, local NGOs that aren't actively involved in this space? Or what if Internet access might help your programs, but isn't necessarily your core focus?

The truth is, mobile and broadband adoption is continuing apace. In Africa, which had less than 1% mobile penetration at the turn of the century, 60-80% of all adults will own a mobile phone by the end of this year. This means beneficiaries who once stood in line for a cash-based training per diem can now catch the bush taxi home and receive a mobile payment on the way. With the torrid pace of mobile and broadband adoption, local NGOs can now achieve far more than the obvious improvements in communication and reduced travel costs. This includes potential co-funding through partnerships, alignment with corporate or government priorities, better operational efficiency, and the opportunity to steer responsible, sustainable technology usage while it's still in its infancy. Local NGOs can also support local innovation and technological independence by delivering on-the-ground training programs and capacity support. Many development organizations have benefited from stepping back to re-assess their mission and program portfolios. A comprehensive review of programs and a reallocation of resources to maximize the benefits of the new tech reality would be both healthy and timely, even for the deeply ambivalent.

From Design to Market: Commercializing Innovations for Emerging Markets

Sometimes, the most elegant solutions to a problem are also the simplest. Last week, Tapan Parikh from the University of Washington was named Innovator of the Year by MIT’s Technology Review for his small-business software applications designed for mobile phones. Parikh's solutions help farmers and women's self-help groups capture and store information, manage their finances and communicate with lenders.

Parikh's simple, easy-to-use applications buck the trend of faster, more powerful technology for an increasingly sophisticated world. Many leading multinational companies have invested heavily to establish research and development centers in emerging markets, but then question whether the investment is paying off. But perhaps the problem is closer to home than in far-off R&D labs. Advance word from the researchers and developers attending this week's Home-Oriented IT (HOIT) conference in Chennai, India is that developing technology for local markets is sometimes easier than convincing corporate business managers to commercialize them.

Overseas labs frequently produce solutions that, like Parikh’s, receive positive press coverage, awards, and broad recognition for their relevance and quality. Nevertheless, they are often released only regionally and reach a fraction of their potential market. Why? In part, because emerging-market solutions are often simpler and cheaper – giving mature-market business managers visions of declining margins and cannibalization of existing products.

Companies like Microsoft, Intel and Nokia (among others) have developed various strategies for ensuring that emerging-market solutions do not cannibalize existing product lines. And the fact is, many products conceived in overseas labs, or by entrepreneurs, would not find a ready market in North America or Europe anyway. Researchers who assess and articulate the financial and operational opportunities posed by their innovations are better equipped to validate or dissipate the fears of business managers. With accurate assessment of the market opportunity and a realistic view of threats to their existing products, companies will better capitalize on emerging-market trends that are essential to maintaining global market share.

Also in the news:

• The iPhone in developing markets?
• Nokia uses anthropologists to design low-end handsets
• Nigeria replacing South Africa as Africa's economic engine

Cisco Invests in Designing for Local Markets

In today’s business climate, it is common for technology companies to be bullish on India, but Cisco is taking action by hunting for acquisition targets among Indian companies that design new technologies specifically for developing countries. Vital Wave Consulting closely follows the evolution of multinational corporate activity in developing countries. After decades of outsourcing to reduce labor costs, companies are now adding the creation of learning and innovation centers to their emerging-market strategies.

Outsourcing research and development (R&D) is not new to corporations; around 300 multinationals, including the majority of leading IT and telecommunications companies, have R&D centers in China. But creating innovation centers in developing countries for the purpose of designing products explicitly for those markets is still an anomaly. HP led the way with its i-Community initiative in South Africa and India in 2000. Intel followed with its Platform Definition Centers, and now Cisco is following a similar strategy through acquisition.

Cisco and its predecessors have realized that a growing consumer base in rapidly-developing economies is evolving into a profitable market with distinct technology needs and preferences. Companies can no longer recycle developed-world technology in emerging markets and hope to win a leadership position. To be successful, products must be developed with the needs of these markets in mind. And to truly understand these needs, it benefits companies to invest in on-the-ground learning laboratories in the heart of these emerging mass markets.

Also in the news:

• HP launches computer lab at Chinese University
• Hugo Chavez puts his personal stamp on the emerging-market PC race
• Vodafone and other mobile operators focus on emerging markets