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  1. 1. Designing for Emerging Markets Design of Products and ServicesIndustrial Design Engineering
  2. 2. Designing for Emerging Markets Design of Products and ServicesEdited byPrabhu KandacharIlona de JonghJan Carel Diehl
  3. 3. Colophon Printed on recycled paper Editors: Prabhu Kandachar, Ilona de Jongh and Jan Carel Diehl Cover design: Ilona de Jongh Designing for Emerging Markets, Design of Products and Services IDE Master’s Projects - 3 Edition March 2009 ISBN 978-90-5155-052-8 © 2009 Delft University of Technology All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronically or mechanical, including photocopying, recording or by any other information storage and retrieval system without explicit written permission from the authors. Delft University of Technology Faculty of Industrial Design Engineering Landbergstraat 15 2628 CE DELFT Phone +31 (0) 15 278 3034 Fax +31 (0) 15 278 1839 E-mail 3
  4. 4. Project Focus EducationEach project in this booklet is performed with thought forall three pillars of responsible business: People, Planetand Profit. Sometimes however, a more nuanced focus isdistinguished. This distincton is indicated for each project Healthon the upper left side of the page, using the followingsymbols. People Food & Nutrition Planet Water € Profit EnergyLegend HousingOn the right side of the pages with project summaries, thespecific domain(s) of the project are indicated with use oficons. On the right side of this page all icons are shown withthe correspding domain in words. This can be used as a Materialsreference throughout this book, or as a search tool for casesin a specific domain. € Company Kamworks Graduation date December 14, 2007 Mobile Solar Kiosk for Micro-Entrepeneurs Connectivity Miriam Reitenbach Despite recent progress, the Cambodian economy still technical requirements. application of glass fibre reinforced plastic an attractive and has to reconstitute from the effects of the civil war. The Interviews with potential customers of the solar products eye-catching form of the carrier could be achieved. population often lacks education and productive skills, revealed that Cambodians were not yet familiar with solar In the context of a holistic approach this project did not which leads to a high unemployment rate, especially in energy in general and that the way of communicating and only focus on the design and construction of the kiosk, but the countryside. About 40% of the population lives below explaining products forms a major criterion for the success also presented recommendations on how to communicate poverty line and has to live of less than 1$ per day. As of the sales results. to the local customers in an effective and adequate way, 90% of the Cambodian population does not have access The outcomes of this research were translated into a final such as a LED display and posters explaining the benefits to a secure electricity infrastructure, economic and social concept that was refined by means of iteratively building and and cost savings of solar products. Additionally, a new Designing & Tools progress are slowed down as well. testing the prototype to guarantee not only the technical bilingual brand name and logo was created that made it These circumstances set the framework of Kamworks’ feasibility of the mobile store, but also acceptance among possible to communicate with Khmer customers as well as business idea: securing sophisticated energy and light the future users - the micro-entrepreneurs. Western stakeholders and contributes to a quality image of supply and creating new jobs for young Cambodians. As the mobile solar kiosk. Biking without pedaling the country receives approximately five full sun hours each The final design was a three-wheeled electric bicycle that Local Production and maintenance day, solar energy is one of the promising technologies. The can be recharged by solar energy. By making use of this When designing the mobile kiosk, only locally available objective of this graduation project was the design and renewable energy technology and being remarkably lighter materials and production techniques were considered in development of a mobile solar kiosk for Cambodian micro- than existing mobile stores, this vehicle is less polluting than order to generate local income, as local manufacturing was entrepreneurs, enabling the setup of a self-sustaining traditional motorised stores and can contribute to promote one of the greatest requirements for the design. These business by distributing solar products to the rural area of sustainable energy in an effective way. User tests showed manufacturing experts of the kiosk would also be able to Cambodia, in continuation of the intensive collaboration that an electric bike caught the attention of the customer take care of the maintenance and reparations, keeping all between Kamworks and Delft University of Technology, see immediately as most rural people never saw someone the work and the money local. In order to get an understanding on how the anticipated customer reacted page 116 . € on the mobile store, the Cambodian translator was asked to drive around driving on a bike without pedalling before. the rural areas to obtain feedback. In the first place he acted as micro- Extreme road conditions In order to cope with the bad road conditions a new Entrepreneurship entrepreneur who sells products, consequently he interviewed the potential Through intense user and context research in Cambodia, suspension system was developed that can damp the customers. technical and usability criteria were defined, as well as wheels individually which makes it much easier to drive and social and cultural influences. These formed the framework steer the vehicle, even on bumpy and unpaved roads. of this project. The first constraint was the underdeveloped In the front part of this mobile solar kiosk a yellow carrier road network and the extremely bad road conditions. Also, is mounted that serves not only to transport the solar with heavy rain seasons from May until October the road € products, but also as a store front when the lid is opened. conditions get even worse which poses a challenge to the Due to the, for the local context, innovative material The bilingual logo on the side of the glass fibre reinforced carrier. 56 57 4
  5. 5. Photo: Jimmy Ho5
  6. 6. Rice Fieldsnear CulikBali, Indonesia 6
  7. 7. The number of student projects at the Faculty of IndustrialPreface Design Engineering relevant to the Base of the Pyramid (BoP) has increased enormously since 2002, when the course “Advanced Products” for Master’s students started a small experiment with projects focused on developing countires was started. The increase of projects is due to several reasons. Firstly, students of our Faculty have shown great interest and enthusiasm to design products and services to meet the needs of the citizens of the BoP. Secondly, the concept of BoP has attracted the attention of many Dutch and European entrepreneurs, leading to several assignments for Base of the Pyramid projects executed all over the world by students from our students, often in collaboration with people living at the Delft University of Technology, in the time period between 2004 and 2009. economic BoP. Thirdly, the supervising staff of our Faculty is equally active in supporting such initiatives. And lastly, more and more Non-Governmental Organizations (NGOs), both in the Netherlands and in some BoP countries, have been opening up their doors to such trials. But what is this BoP? Base of the Pyramid (or Bottom of the Pyramid, as it is sometimes termed) refers to the 4-billion plus poor mostly in non-western countries in Asia, Latin America, and Africa, living on incomes less than $32601 per year. Some parts of these geographical regions, such as China, India, Brazil, Russia, have markets experiencing phenomenal economic growth not unnoticed 1 Monica Touesnard, 7
  8. 8. by the affluent west. Millennium Development Goals Preface Although the BoP strategy to serve the underserved, The extensive response to these ideas is likely due to thenamely the poor in developing countries, has attracted the limited success of developmental assistance to alleviateattention of scientists and entrepreneurs worldwide, the poverty in the past 50 years. For more than 50 years, thescientific publications in this area until now are often from World Bank, donor nations, various aid agencies, nationalmanagement sciences, often extending the concepts of governments, and civil society organizations have all foughtcorporate social responsibility, sustainability, etc. the good fight, but have not been able to eradicate poverty The uniqueness of our Faculty of Industrial Design yet. The adoption of the Millennium Development GoalsEngineering lies in its human centered approach. Needs are (MDG) by the United Nations only underscores that reality.the central driving force uniting technology and business. Poverty has remained one of the world’s most dauntingBy tradition our Faculty has propagated the practice of problems even as we enter the 21st Century. Prahaladdesigning products and services to meet the human needs. advocates an alternative approach to help the poor.The BoP strategy has stimulated us to look also at the needs Science Spread over the Worldof the underserved, which represent a huge market and The projects described in this book are a result of severalwas hitherto unattended. students, entrepreneurs and academic staff stimulated by The foundation for the BoP strategy was laid by Prahalad this strategy. The BoP concept is spreading to all parts of the& Hart2, in their publication published in the first quarter world, both within the rich and in the poor countries. Thisof 2002, promising fortune for entrepreneurs and at the is also reflected by the geographical spread of the projectssame time offering perspectives to the poor world majority executed at our Faculty, as can be seen in the picture onto escape from the poverty. This caught public attention the opposite page.and unleashed an extensive response from academics, It can also be observed that the projects cover verybusinesses, NGOs and others. Prahalad’s book3 delves in diverse needs, from Water to Energy, from Healthcare todepth by proposing a framework for the active engagement Education, and more. These projects could not have beenof the private sector and suggesting a basis for a profitable executed without the involvement of students, companies,win-win engagement. This vision of untapped great wealth NGOs, and professors. Together they have set up a basein the world waiting to be explored & exploited by human to develop a new knowledge domain full of challenges andingenuity, by designing products and services to meet the opportunities. Thank you all!needs of the world’s poor, and then efficiently manufacturing& distributing by the capabilities of the modern corporation,Prahalad contends, needs innovations.2 The Fortune at the Bottom of the Pyramid, Strategy+business, Prabhu Kandachar issue 26, First quarter 2002, p. 1- 14 (Booz Allen Hamiliton) Faculty of Industrial Design Engineering3 The Fortune at the Bottom of the Pyramid: Eradicating Poverty Delft University of Technology Through Profits, ISBN-10: 0-13-146750-6; ISBN-13: 978-0-13- 146750-7 (Published 2004) Pages: 432. March 2009 8
  9. 9. Project Focus 2Table of Contents Preface 6 Introduction Prabhu Kandachar Challenges for Industrial Designers 10 Student Projects Inge van de Wouw Dec 8, 08 Lamp with insect repellent 26 Aparna Bhasker 2009 India Moves: Economic Empowerment of Rural Disabled 28 Ambika Samabasivan Oct 30, 08 Global Opportunities in Renewable Lighting 30 Lieke Pijpers Oct 24, 08 PRO-PORTION Affordable milk for kids 32 Sierk Hennes Sep 23, 08 Design a PSS for drinking water 34 Kirsten Rijke Aug 26, 08 Solar shop in rural Cambodia 38 Tom van Diessen Aug 22, 08 Solar Home System for rural Cambodia 40 Linda Schnieders Jul 28, 08 Redesign of a Smoke free Batana Extractor 42 Lumen Jun, 08 LUMEN light solution 44 Judith Goor Apr 04, 08 A battery charging system for youngsters 46 Jan Willem Findlater Feb 8, 08 Culturally appropriate coffins for Botswana 50 Water4Kenya Feb, 08 Water4Kenya 52 Alexander van der Kleij Feb 1, 08 Comparing Contexts; Solar Dew Technology 54 Miriam Reitenbach Dec 14, 07 Mobile Solar Kiosk for Micro-Entrepeneurs 56 Koos Munneke Oct 24, 07 Better Brace Project 58 Bernard Hulshof Oct 19, 07 Affordable Solar Lighting for rural Madagascar 62 Rutger Bonsel Oct 12, 07 Holy Cow or Cash Cow 64 Hoi-Kee Wong Aug 8, 07 Cooking in rural China 66 Fire4India May, 07 Fire4India 68 Yu-Kuan Chang Nov 27, 06 Knowledge Gaps in Product Development 70 Culture & Design Annemiek van Boeijen Design & culture in the BoP Domain 74 Annemarie Mink Nov 10, 06 Reeling Machine for Silk Yarn Producers 78 Marion de Groot Sep 21, 06 Support Tool for the Chinese Village Doctor 80 Cathelijne Huis in ‘t Veld Aug 31, 06 Design of a Malaria Diagnostics Device 82 Roelie Bottema Aug 4, 06 Personal Water Purifier 84 Mijntje de Caluwé Jul 29, 06 Knowledge Framework: Design4Billions 86 9
  10. 10. Elselien Epema Jul 7, 06 Product Service System for Plant Oil Stove 90 Table of ContentsGhanaMoves Jul-06 Tricycle for Disabled Entrepreneurs 92Willem Glasbergen Jun 21, 06 Human Powered Bamboo Splitting Tool 94Marike Bijtelaar Jun 16, 06 Improving the Climate of Cooking Areas 96Maria Nguyen Apr 28, 06 Safe Drinking Water 98Leonie Ideler Apr 4, 06 Adoptable Woodstove 102Fernando Del Caro Secomandi Apr, 06 Water Supply in Slums:P.I.P.A. System 104Jon Rodriguez Feb 3, 06 Contextualizing Products 106Cale Thompson Sep 14, 06 Online Microfinance: into(context) 108Jonathan Stranders Dec 23, 05 Creating Market Insight for Designers 110Suzanne Hendrikse Nov 11, 05 Device for Early Oral Cancer Detection 114Stephen Boom Oct 28, 05 Solar Lighting 116Roseliek van der Velden Oct 21, 05 Adoptability of the U-Specs 118Joan Boekhoven Oct 18, 05 Natural Fibres in Doors and Windows 120H.S. Smallenbroek 2004 Small scale cassava starch processing 122Epilogue J.C.Diehl The first learning experiences of Design for the BoP 126Acknowledgements 130About the Editors 131PhotosP.I.P.A. system Brazil Fernando Del Caro Secomandi CoverRice Fiels near Culik Bali, Indonesia Jimmy Ho 4Kids swimming and playing Jakarta, Indonesia Ilona de Jongh 24Girl Java, Indonesia Mirjam Lindgreen 36Man Fishing on Citarum River Java, Indonesia Kees van Gastel 48Man and horse at work Java, Indonesia Mirjam Lindgreen 60Market for Holi Colours India Prabhu Kandachar 72Boats Cambodia Stephen Boom 76Girl Getting Water in Favela Rio de Janeiro Ferry 88Girls in Favelas Rio de Janeiro Linda Schnieders 100Man at Home Chongming Island Jaap Daalhuizen 112Toilet in a Rural Village Chongming Island Jaap Daalhuizen 124 10
  11. 11. Introduction Challenges for Industrial Design Engineers Prabhu Kandachar About two thirds of the world’s population of 6 billion people spend their lives searching for food and shelter, fighting for physical survival, and fearing for the future. These are the individuals who earn less than three dollars per day: the people living at the economical Base of the Pyramid (BoP). This does not go unnoticed. Global poverty, its extent and distribution, is of daily news screaming for the attention of all world citizens. The challenge at world level is enormous. In Africa alone, poverty and hunger, unemployment, disease, malnutrition, lack of shelter, gender inequity and environmental deterioration are some of the main challenges in addressing poverty. Millennium Development Goals Millennium Development Goals Eight Millennium Development Goals, to be achieved in 2015. The developments in the last century have attracted the Goal 1: Eradicate extreme poverty attention of world leaders. At the Millennium Summit in and hunger September 2000 the largest gathering of world leaders in Goal 2: Achieve universal primary history adopted the UN Millennium Declaration, committing education their nations to a new global partnership to reduce extreme Goal 3: Promote gender equality poverty and set out a series of targets with a deadline and empower women of 2015, which have become known as the Millennium Development Goals1. The image on the left shows the eight Goal 4: Reduce child mortality goals. Goal 5: Improve maternal health The Millennium Development Goals (MDGs) are the world’s time-bound and quantified targets for addressing extreme Goal 6: Combat HIV/AIDS, malaria and other diseases poverty in its many dimensions - income poverty, hunger, disease, lack of adequate shelter, and exclusion - while Goal 7: Ensure environmental sustainability promoting gender equality, education, and environmental sustainability. Also included are basic human rights - the Goal 8: Develop a Global right of each person on the planet to health, shelter, and Partnership for Development 1 11
  12. 12. Introductionsecurity and there are specific aims at combating child beyond the immediate horizon and opportunities, and formortality, AIDS, Malaria and other diseases. having a voice in public decision making. A sustainable The MDGs are an agreed set of goals that can only be end to world poverty as we know it, as well as the path toachieved if all actors work together and do their part. Poor peace and security, requires that citizens in every countrycountries have pledged to govern better, and invest in their are empowered to make positive choices and provide forpeople through health care and education. Rich countries themselves and their families. This can only be achievedhave pledged to support them, through aid, debt relief, and if everyone is given a chance to learn in a high-qualityfairer trade. schooling environment at least through primary school. As an institution which is an expert in designing products At a country level, education is considered to be anand services to meet human needs, it could be that some important determinant of economic growth and is frequentlyof the needs of the population at the Base of the Pyramid hailed as one of the primary contributing factors to theare addressable by the expertise available at the Faculty dramatic economic growth in East Asia. Individuals with aof Industrial Design Engineering, Delft University of strong educational attainment also have good earnings. ATechnology. Most problems can be grouped in the domains greater access to good quality education is a key poverty-of education, healthcare, food & nutrition, water, energy, reduction strategy advocated throughout the developing world.housing, materials, connectivity, designing & tools, and More and more children, youth and adults have aentrepreneurship. Each of these domains will be discussed, chance to learn and the number of children in schoolgiving an overview of the needs and problems. The rest continues to grow. Today 680 million children are enrolledof the book presents student projects that aim at solving in primary schools around the world. Yet, a lot more stillproblems within one or more of these domains, with needs to be done. More than 100 million children, overtwo different chapters: on page 74, an insight is giving half of them girls, never get a chance to see the insideon “design and culture at the BoP”, and the epilogue on of a classroom. Furthermore, the poor quality of educationpage 126 reflects on the student projects and draws some provided, resulting from irrelevant and obsolete curricula,preliminary conclusions about the lessons learned. overcrowded classrooms, untrained teachers, etc., causesEducation high incompletion rates.An essential ingredient for the full realization of human Literacy empowers and nurtures inclusive societies andcapacity, education is considered to provide everyone the contributes to the fair implementation of human rights. Inopportunity to make a better life for themselves. Education the case of mothers, literacy leads to an enhanced qualityprovides the basis for making informed choices, for seeing of life for their families and improved education outcomes 12
  13. 13. for their children. Parents’ education, and particularly mothers’ education, is seen to result in lower fertility, lower maternal mortality, and better child health and nutrition status. It is also suggested that individuals with at least World Income Distribution 2000 some education respond better to HIV/AIDS prevention messages. Nevertheless literacy remains a low priority for national governments and the donor community. Worldwide, 781 million adults are illiterate (as of April 2006) and about 100 million children are out of school. A large number of those who enrol drop out before attaining literacy skills and some of those who complete primary education remain illiterate. Literacy is an indispensable means for effective social and economic participation, contributing to human development and poverty reduction. Goal 2 of the Millennium Development Goals has set out by the year 2015 to ensure that all boys and girls complete a full course of primary schooling. The use of information and communication technologies (ICT) in and for education is rapidly expanding in many countries, and is now seen worldwide as both a necessity and an opportunity. In different countries policies and strategies to integrate information and communication technologies in education are being developed. While ICT use in education in developing countries is relatively recent, it has nevertheless made an impact on the education system. It has generated a wealth of experience, good practices and lessons for the benefit of countries where ICT application and integration in education are being established2. 2 Everyone knows the resources in the world are not divided evenly over theentire population. This inequal distribution of money and power needs action.13
  14. 14. Healthcare the challenge of providing access to sustainable healthcare Differences in health standards between rich & poor in developing countries. Money is the single biggest barriercountries are very high. Life expectancy varies between to improving healthcare in the developing world. In many36 and 85 years. A child born in a rich country receives countries people do not have enough food or access to avaccinations, adequate nutrition and good schooling. When clean water supply, no hospital or clinic in which to receivea girl becomes a mother she will benefit from high-quality treatment and few healthcare professionals to care for them.maternity care. Growing older, she may eventually develop Often the governments of these countries simply do notchronic diseases, but excellent treatment and rehabilitation have the resources needed to address the healthcare needsservices will be available. On the other hand, a child born in of their people. The World Bank estimates that an annuala poor country has little chance of receiving immunizations healthcare expenditure of $14 per person is the minimumand a high probability of being underweight throughout needed to provide the most fundamental services. Yet thechildhood. She will probably marry early and give birth average expenditure in sub-Saharan Africa, for example, isto many children without the assistance of a trained birth currently only $63.attendant. One or more of her babies will die in infancy, and Food and Nutritionshe herself will be at high risk of death during childbirth. Food security and insecurity are terms used to describeIf she survives middle age she, too, will develop chronic people’s access to sufficient quality and quantity of food.diseases but, without access to adequate treatment, she will They are affected by factors such as poverty, health, fooddie prematurely. production, political stability, infrastructure, access to markets, This illustrates what medicine and public health can and natural hazards. Improved food security is important forachieve, and shows unmet needs in a world of vast and global reduction of hunger and poverty, and for economicgrowing health inequalities. The key task of the global development. One aim of the Millennium Developmenthealth community is therefore to close the gap between Goals (MDG) is to eradicate poverty and hunger, includingsuch contrasting lives. Real progress in health depends “to reduce by half the proportion of people who suffer fromvitally on stronger health systems based on primary health hunger” between 1990 and 2015. However, by 2003 thecare. Attention is needed across all levels of the health care proportion of world population that was undernourishedsystem to integrate health promotion and disease prevention had only decreased from 20% to 17% (823 to 820 millionon the one hand and treatment for acute illness and chronic people). It is predicted that many regions will not reachcare on the other. their MDG targets, particularly sub-Saharan Africa where Experiences from past decades, fighting against diseases a third of the population is food insecure and there is anacross the world, show that there are no easy solutions to 3 The World Health Report 2006, 14
  15. 15. actual increase (through population growth) in the number of hungry people. Southern Asia is also not expected to meet its goal, with increasing numbers of undernourished people in countries such as Bangladesh and Nepal. The factors affecting this problem include: (1) availability of food, or the amount of food that actually exists (local production and other sources) (2) people’s physical, economic and social access to food (3) the quality or nutritional adequacy of that food; and (4) people’s ability to utilize this food, including the patterns of control over who eats what and the physical ability to absorb nutrients (affected by health status factors such as intestinal parasites). Malnutrition, a widespread problem, is caused by deficiencies or imbalances in energy, protein and/or other nutrients. Signs include wasting (thinness), stunting Shortage of Health Service Providers (shortness), or being underweight (low weight for age due to wasting/stunting). Protein-energy deficiency is a leading cause of child death in developing countries. Deficiencies in micro nutrients (vitamins and minerals) can also affect mental and physical health. Micronutrient malnutrition is a major global public health problem affecting more than a third of the world population. Consequences of this malnutrition are widespread and severe. For example iron deficiency anaemia remains a major health problem and can negatively impact on health, life expectancy, work productivity and economies. It has been estimated that iron deficiency impairs the mental development of 40 to 60% of children in developing countries. Also, vitamin A deficiency Countries with a critical shortage of health service providers (doctors, nurses and midwives) are coloured dark. [World Health Organization, Global Atlas of affects 40% of children, and is a factor in 1 million child the Health Workforce] deaths per year. Thirdly, iodine deficiency during pregnancy15
  16. 16. causes mental impairment in 18 million babies born every Households (%) That Lackyear. Several strategies have been proposed to address In-House Improvedthese problems. They include food fortification, dietary Connection to Drinking Improveddiversification, dietary supplementation, nutrition education, Water Water Sanitationand public health measures to control intestinal parasites China 41 23 56and other infectious diseases. Also, when people do have Russia 19 4 13access to food, more efficient and healthy food preparation Mexico 11 9 23methods and tools can address the problem of unhealthy Colombia 15 8 14preparation. Peru 28 19 28Water In China two-fifth of the households lack an in-house connection to water,The most common substance on earth is water. Ninety- almost a quarter lacks improved drinking water and more than half of allseven percent of it is seawater, unfit for human use. Of Chinese lack improved sanitation [United Nations Habitat].the remaining 3%, two-thirds is locked up in glaciers or iceand snow around the poles. Only 1% of the entire world’swater is available for human consumption. Even this smallpercentage should be enough for all, water being infinitelyrenewable. However, water is not distributed evenly. Canada, The Global Water ChallengeAustria and Ireland, have more water than they can possiblyuse; Australia, northern China and the Middle East, have toolittle. In India and Bangladesh, rainfall is highly seasonal:almost all the years supply may arrive within a few months.Water is also heavy, which makes it costly to transport overlong distances. In many countries, millions of poor people(usually women) must walk for several hours a day to getwater; or they pay exorbitant prices to private water vendors.And often water quality is poor. Inadequate sanitation makesmatters worse. As much as 60% of the worlds illness iswater-related. Water shortage is expected all over the world In developing countries, less than 10% of the naturally available waterin the coming 20 years as shown in the figure on the right4. is withdrawn [Adapted from Grey and Sadoff, 2006, The Global Water4 Water Scenarios in 2025, WBCSD, August 2006, Challenge]. 16
  17. 17. One of the millennium targets requires that an additional 1.5 billion people gain access to some form of improved water supply by 2015, which is 100 million people each year (or 274,000 people each day). Energy Energy is required for most of the human activities. In 2003, no less than 80% of the worlds energy consumption came from fossil fuels. The extensive use of energy technologies, especially when utilizing fossil energy resources, has also generated undesirable by-products, wastes and pollution Worldwide Energy Consumption that threaten human health, climate and ecosystems. The extraction, conversion to useful energy (such as electricity for a home or gasoline for a car), and combustion of fuels like oil, coal, natural gas, etc, releases into the atmosphere approximately 80% of human-induced (termed anthropogenic) greenhouse gas emissions. The environmental consequences are causing concern firstly from the reliance on natural resources, and secondly from the damage to global, regional, and local environments from emissions. The global requirements for energy are increasing rapidly as the global population increases and the under-developed nations become more advanced. Nearly two billion people in our world of rapidly approaching six billion people currently do not have access to commercial energy services. Understanding and assisting in putting to use the laws of nature for the transition towards a sustainable energy system is the fundamental challenge of today’s and tomorrow’s scientists & engineers. One of the greatest challenges ahead Prognosis after 2000 assumes a global economic growth of 3% and a globalpopulation of 9 billion people by 2050 [Deutsche Shell, is to connect the 1.6 billion people in developing countries international/spiegel/0,1518,grossbild-685811-429968,00.html]. currently without access to modern energy services in an17
  18. 18. environmentally benign manner. Other challenges include the Housing and Urbanizationongoing urbanization throughout the world creating higher Some 1.2 billion people worldwide live on the equivalentand higher energy demand densities, increasing demand for of less than one dollar per day. The United Nations Centremobility, especially in developing countries, and additional for Human Settlements (UNCHS) has estimated that 1.1energy needs for new processes such as desalination. billion people are living in inadequate housing conditions inClearly, meeting such a challenge requires a proactive & a urban areas alone, and that figure is expected to double byco-operative contribution from all involved. 2030. UNCHS has also estimated that some approximately In Africa, for instance, overcoming energy poverty is one of 35 million new housing units are required each year inthe main challenges. The majority of Africans currently have developing countries to accommodate growth in the numberno access to modern energy services and technologies. of households during the period between 2000 and 2010 This has wide-ranging social and environmental period. The bulk of these, some 21 million units, are requiredconsequences. Lack of access to electricity means no to cater for the needs of the increasing number of households.refrigeration for medicines or food, limits on what type of The rest is needed to meet the requirements of people whobusinesses can be developed, as well as no effective lighting. are currently homeless or living in inadequate housing. InAs a result, children cannot easily study in the evenings. other words, some 95,000 new urban housing units have toMost Africans, even in urban areas, still use firewood, crop be constructed each day in developing countries to improveresidues or charcoal for cooking and cook on inefficient housing conditions to acceptable levels. Some 14 millionstoves, resulting in a high incidence of respiratory diseases additional units would be required each year for the nextbecause of smoke. Many women and girls have to spend 20 years if the current housing deficit were to be replacedhours collecting firewood, and cutting trees contributes to by 2020. Among an estimated 100 million homeless peopledeforestation. around the world, available data suggest that increasing There are also opportunities. A recent study5, by the proportions are women and children.German Aerospace Center and Ecofys in The Netherlands, But the main event of the demographic change is in thecommissioned by Greenpeace and Europes Renewable cities of the developing world — and most of it in squatterEnergy Council. claims that half of the worlds energy needs cities, the teeming slums of the uninvited. A billion peoplein 2050 could be met by renewable energy and by improved live in squatter cities now. Two billion more are expected byefficiency. According to this study, alternative energy sources, 2050. Squatters are nearly one-sixth of all humans now, one-such as wind and solar, could provide nearly 70% of the fourth to one-third in the nearby electricity demand and 65% of global heat demand. Historically, cities have been the driving force in economic and social development. At present approximately 307 million5 Report: Energy Revolution, Jan 2007 18
  19. 19. Indians (31% of the population) live in nearly 3700 towns and cities spread across the country. This is in sharp contrast to only 60 million (15%) who lived in urban areas in 1947 when the country became independent. During the last fifty years the population of India has grown two and half times, but Urban India has grown by nearly five times. In numerical terms, Indias urban population is second largest in the world after China, and is higher than the total urban population of all countries put together barring China, USA and Russia. Facilities in houses are also of big challenge. Less than 20% of households in Africa are connected to piped water, and only 40% have piped water within 200 meters of their home. In the developing world, 29% of cities have areas considered as "inaccessible" or "dangerous" to the police. In Latin America and the Caribbean, this figure is 48%. Less than 35% of cities in the developing world have their wastewater treated. In countries with economies in transition, 75% of solid wastes are disposed of in open dumps. Housing problems have far-reaching consequences. The high cost of housing leaves low-income families little money for other basic necessities like food, clothing or health care. Substandard housing can endanger the health and safety of its occupants, erode their hope and self-worth, and impair their childrens ability to succeed in school. Materials and Resources Developing countries are concerned with promoting technological advancement as a means of economic development, which in turn contributes to social development. Raw materials and local resources provide basic building blocks for such developments. Developed countries are much19
  20. 20. further in application of material and resources by means contribute significantly to the income and food securityof industrial production wherein energy and raw materials of poor farmers and workers in fibre industries. For someare fed continuously into the production process, resulting developing countries natural fibres are of major economicin useful products as well as waste or other by-products. importance, for example, cotton in some West AfricanIncreasing concern worldwide for environmental protection countries, jute in Bangladesh and sisal in Tanzania. In otherand growing economical constraints have led to development cases these fibres are of less significance at the national leveland utilization of new materials based on renewable but are of major local importance, as in the case of jute inresources such as natural fibres and plant materials, as well West Bengal (India) and sisal in northeast recycling of industrial by-products. Challenges in this area include attaining economic growth Developing countries have often abundant local renewable by designing and commercializing products based on suchmaterials and basic expertise. For instance natural fibres local renewable natural resources without raising theproduced from animals or plants are plentifully available in ecological pressure on the planet.developing countries. Animal fibres are derived from sources Connectivitysuch as sheep, goats and rabbits, and the cocoon of the Communications in the richer part of the world by meanssilkworm. Vegetable fibres are derived from the stem, leaf or of newspapers, radio, TV, telephones are self-evident. Theseed of various plants. Close to 30 million tonnes of natural latest technology, mobile phones, has become indispensablefibres are produced annually in the world, of which cotton is in the rich world. But they are even more useful in thedominant with 20 million tonnes, wool and jute each around developing world, where the availability of other forms2 to 3 million tonnes followed by a number of others. of communication—roads, postal systems or fixed-line Natural fibres form an important component of clothing, phones—is often limited. Even though there is a substantialupholstery and other textiles for consumers, and many of subscriber growth in much of the developing world, onlythem also have industrial uses in packaging, papermaking a small proportion of people (affordability is the “biggestand in composite materials with many uses, including obstacle” to broader adoption) —around 5% in both Indiaautomobiles. and sub-Saharan Africa—have their own mobile phones.Apart from their importance to the consumer and in their Using cell phones, fishermen and farmers check prices invarious industrial uses, natural fibres are an important different markets before selling produce. Cell phones alsosource of income for the farmers who produce them. In help people to find work, allow quick and easy transferssome cases they are produced on large farms in developed of funds and boost entrepreneurship. A village can sharecountries, but in many developing and least developed phones and prepaid calling plans reduce the need for a bankcountries proceeds from the sale and export of natural fibres account or credit check. 20
  21. 21. Grameen Bank, a pioneer in the practice of micro-credit lending, has created a cell phone company to bring cell phones into the villages of Bangladesh. The bank gave loans to the borrowers to buy a cell phone and start selling phone services. It became a growing business, especially with women entrepreneurs. They never saw a telephone in their life before, but they have accepted it as a business idea, and more than 100,000 telephone ladies all over Bangladesh are doing good business while connecting Bangladesh with the rest of the world. A recent study has shown that, in a typical developing country, a rise of ten mobile phones per 100 people boosts GDP growth by 0.6 percentage points. Mobile phones are, Number of People Without Electricity in short, a classic example of technology that helps people 1979-2030, by region help themselves. Nevertheless, the absorption of digital technologies throughout the world has not been uniform, such that the concept of digital divide has emerged. The digital divide is the gap between those with regular, effective access to digital technologies and those who do not have that option. Also, the divide refers to those who can benefit from those digital technologies and those who do not. Countries with a wide availability of internet access can advance the economics of that country on a local and global scale. In todays society, internet is becoming increasingly important influencing jobs and education. In countries where the internet and other technologies are not accessible, education is getting affected, and uneducated people cannot compete in our In the sub-saharian Africa and South Asia, it is projected that people are global economy. The digital divide is also a term used to increasingly living without electricity [IEA 2002b]. refer to the gap between people who have access to the21
  22. 22. internet (the information haves) and those that do not (the Entrepreneurshipinformation have-nots). It can also refer to the skills people Entrepreneurs are regarded as bearers of risk, agents thathave – the gap between people who are at ease using digital bring together the factors of production, or organizers oftechnology to access and analyse information and those who innovation. Entrepreneurship is essential in developingare not. countries, as it has played an important role in economic The digital divide is just as much a gap in understanding as growth, innovation, and competitiveness, and it may alsoit is a gap in connectivity. There are often clear fundamental play a role over time in poverty alleviation.differences between what is proposed by technology Over 400 million individuals in developing countriesvisionaries, many of whom have never even seen a village, are owners or managers of new firms. Of these, over 200and what is actually needed by end-users, many of whom million are found in China and India alone, compared with just 18 million entrepreneurs in the United States. Yet, inhave never used a telephone or a computer. one of the best general books on the state of research on A number of ICT initiatives offer a promise of closing the entrepreneurship, China is mentioned on two pages andgap that separates the some four billion people living in rural India is not mentioned at all6.communities from a future with greater literacy, productivity, Entrepreneurs in developing countries face a differentand quality of life. While the end goal is clear – broadband set of circumstances than their counterparts in developedconnectivity everywhere – many ICT initiatives have faltered economies. These differences are rooted in the underlyingdue to a lack of a well-adapted, step-by-step approach that economies in which they operate. Emerging markets lack aconsiders social factors and the staging of capital investments stable or mature market and the consistency that such marketsas well as technology. offer. Consequently, the opportunity for entrepreneurship in Wireless technology has not only revolutionized the way emerging markets is pervasive. While Western entrepreneursthe developed world communicated; it also offers developing operate at the fringes of the economy, emerging marketcountries an opportunity to “leap-frog” over wire line entrepreneurs operate closer to the core – the needs andinfrastructures to the forefront of communications. However, opportunities are more widespread. Another difference lies insince many different types of wireless technologies exist, it the access to financial resources. Internal finance comprisesis important to choose the technology that best matches the the majority of financing for small and medium enterprisesneeds of these new markets. While some wireless techniques in most developing countries. Another major difference lieshave been very successful in urban areas, the rural ICT market in the access to technological advances which are largelyhas its own set of unique requirements, including: low-cost, 6 Amar Bhidé, The Origin and Evolution of New Businesses, New York: Oxfordlow-power, scalability, robustness, and ease of use. University, 2000, ISBN-13: 978-0195131444 22
  23. 23. developed and held by developed countries. Entrepreneurs are a crucial link in implementing designs of products and services developed specifically to meet the needs of the BoP markets. They are the motors of economic growth and poverty reduction. Small, micro and medium- sized enterprises (SMMEs) are often the backbone of the private sector in the developing world, creating jobs and providing a tax base for local government. And frequently SMMEs offer the only employment available to millions of Focus of Base of the Pyramid Research poor people. Faculty of Industrial Design Engineering Design and Research Delft University of Technology Back in 2002, an experiment was conducted to design a A model for design processes for the Base of the Pyramid product to serve rural healthcare needs of China, specifically [Prabhu Kandachar, Jan 2008]. diabetes mellitus. In this project, students and staff of the Faculty of Industrial Design Engineering collaborated with staff from a Multinational Corporation. Almost at the same time the first paper expounding the Base of the Pyramid strategy by Prahalad & Hart appeared, promising fortune for entrepreneurs and at the same time offering perspectives for the poor world7 majority to escape from poverty. Needs of human beings are the central driving force uniting technology and business, resulting in products and services. By tradition Delft has 7 Strategy + Business, Issue 26, pdf/bottompyramid.pdf, first quarter 2002.23
  24. 24. propagated the practise of designing products and servicesto meet human needs. Even though it is set up in an engineering environment,such an activity needs an integrative approach from severalsciences: technical, social, management sciences, andworking together with entrepreneurs. Although several earlieractivities at Delft had been carried out in poor countries,they were almost always within the context of developmentalassistance. The Base of the Pyramid strategy has stimulatedthis Faculty to look also at the needs of the underserved,which represent a huge market and was hitherto unattended.It provides an opportunity to apply the well tried out modelat Delft (see figure at the left) for poor countries, but thistime within the context of alleviating poverty by means ofbusiness endeavours. 24
  25. 25. Photo: Ilona de Jongh25
  26. 26. Kids swimmingand playing inflooded roadsJakarta, Indonesia 26
  27. 27. Insect Repellent Lamp € Company Philips Consumer Lifestyle Graduation date December 8, 2008 for the Indian Market Inge van de Wouw Insect bites are an unpleasant fact of life in most parts of the world. In addition to severe nuisance, mosquitoes can also spread diseases such as Malaria, Dengue, Filariasis,Two user researches in India (48 families in 2.5 months) provided very useful Japanese Encephalitis and Chikungunya. Malaria alone insights for the improvement and further development of the IRL. causes an estimated 1.3 million deaths and 400 million cases worldwide, and around 20,000 deaths and 15 million cases in India, each year. Liquid repellent Philips Research Asia in Bangalore has developed the initial product idea of an Insect Repellent Lamp (IRL) to provide insect free environments for families in the Middle & Base of the Pyramid of both urban and rural India. The proposed lamp integrates an insect repellent ability with the normal household light bulb, by using the waste-heat dissipated by the lighting device to vaporize the liquid based mosquito repellent. The aim of this project was to assess if, and how, the idea could really become a successful and profitable product for Philips. The project started with a thorough analysis phase in the Netherlands to explore the mosquito problem, current insect repellents in India and the target group. Also the working principle and characteristics of the Insect Repellent Lamp were investigated and effectiveness tests were done. After the analysis phase a field test was conducted in India with the initial Philips prototype and two competitive IRLs. In India, insights were gained on the magnitude of the insect problem, current use of insect repellents, expenditure, preferences regarding the three IRLs, local culture and traditions, the actual target group and the context of use.27
  28. 28. & portabilityWith the obtained information, several suggestions forimprovements were given. First of all, a compact fluorescentlamp (CFL) should be used as light source instead of a lightbulb. Regarding the repellent, it should be vaporized at thecorrect temperature of the wick and bottled liquids shouldbe used. The lamp itself should provide more flexibility; thehanging type of lamp should be changed into a portablelamp. Lastly, instead of only in the evening, people shouldalso be able to use the repellent at night together with anight light. The input from the field test was translated into a redesignof the IRL. The redesign of the IRL is portable with 3m ofwire, uses a 14W CFL and bottled liquids, has two switchesto use the lamp and repellent separately or together (day,evening and night mode) and has an additional blue nightlight that is lit together with the repellent. A preliminarycost price estimation showed that a selling price of Rs. 500 Two switches(€7.50) can be possible. make it possible to use the lampFirst reactions and repellentWith the manufactured 13 prototypes a second field test separately orwas conducted in India. The response of the target group together (day, evening and nighton the improved IRL was very positive and it seemed that mode).The bluethe insect repellent functionalities, the energy saving lamp, night light thatthe portability and the two switches (different modes is lit when the repellent is active.possible) provided very useful benefits for them. Currently, different departments of Philips have showninterest in the IRL and possibilities are explored to bring theproduct to the market. 28
  29. 29. IndiaMoves; exploratory € Company Movendi Foundation Graduation date 2009 research study Aparna Bhaskar Movendi foundation strives to improve the quality of life for Cooka et al: A product-service system (PSS), also known as a function- physically disabled people. The foundation’s primary focus oriented business model, is a business model, developed in academia, is on developing countries and communities with a great that is aimed at providing sustainability of both consumption and need for expertise in the field of movement technology and production1. physical therapy. The goals are achieved through start-ups 1. M.B. Cooka, T.A. Bhamrab and M. Lemonc (2006). “The transfer and and coaching projects using local knowledge and skills to application of Product Service Systems: from academia to UK manu- arrive at creative solutions for different problems faced by facturing firms”. Journal of Cleaner Production (Elsevier Ltd) 14 (17): the physically disabled. Movendi is also involved in setting 1455–1465. doi:10.1016/j.jclepro.2006.01.018. up rehabilitation workshops and training of local therapists and technicians. GhanaMoves Movendi has previously worked in a business development project for disabled people in Ghana. The project aimed to improve the lives of the disabled by providing them with a means to support themselves, see page 92. Four students investigated the business opportunities for the disabled and they came up with a hand-driven tricycle with which the disabled could sell ice-cream on the streets of Madina- Accra. The tricycles were manufactured at a local workshop, MAK-D, which profited as well from the business by selling tricycles, the ice-cream was supplied by Fanmilk, Ghana’s largest dairy producer and the disabled were able to obtain a small credit (micro-credit) from a local bank at a very reasonable interest rate. For more detailed information a summary of the project is enclosed. Taking GhanaMoves as a starting point and as an inspiration, seeing the benefits it Concept areas; a market analysis of these individual concept areas and new generated for disabled persons, Movendi wished to initiate business opportunities and product service systems for self employment of a similar venture in India. This project is an exploratory first rural disabled within these areas are part of the results. step in that direction, identifying strategies and business29