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Designing and Implementing Sustainable ICT ProjectsUSAID Regional ICT Innovations Workshop; June 6, 2012Lisa Kienzle
Grameen Foundation AppLab has a history ofscaling sustainable ICT solutions in East Africa Grameen    Village   Google    ...
AppLab’s approach to developing innovative social enterprises involves designing forsustainability – in both the programs ...
Sustainable ICT PROGRAMS                                             CKWs                      (Community Knowledge Workers)
The model: information delivery to rural farmers  Partners                       CKWs                         Farmers Publ...
The program was designed for sustainabilityform day 1     CKW Value Proposition:          Partner value proposition:      ...
After two years, we’ve achieved fast growth andachieved partial sustainability         799                                ...
An IFPRI study showed major strides for farmers who used CKWs versus those who did not          Farmer Knowledge          ...
Sustainable ICT PRODUCTS                              AppLab Money Incubator                     (mobile money product inn...
The problem: significant MM deployment     growth, but few have offered more than payments                                ...
So why aren’t we seeing more innovation?    Concerns                 Requires an institutional investment –   Resources   ...
Our solution addresses the challenges we see indriving sustainable MM product innovation    Concerns                      ...
We focused on designing an innovation processthat would produce sustainable products                        Product Develo...
A considerable part of product innovation is business model innovationIllustrativeBus Models                              ...
Sustainable ICT Projects                                 Learnings on Program and                           Product Design...
What it all means: Learnings from our work insustainable ICT• Think about sustainability from Day 1 – incorporate it in th...
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Designing and Implementing Sustainable ICT Projects

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Presented at USAID Regional ICT Innovations Workshop; June 6, 2012.

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Designing and Implementing Sustainable ICT Projects

  1. 1. Designing and Implementing Sustainable ICT ProjectsUSAID Regional ICT Innovations Workshop; June 6, 2012Lisa Kienzle
  2. 2. Grameen Foundation AppLab has a history ofscaling sustainable ICT solutions in East Africa Grameen Village Google AppLab CKW Phone Phone SMS Money
  3. 3. AppLab’s approach to developing innovative social enterprises involves designing forsustainability – in both the programs and also the products we develop
  4. 4. Sustainable ICT PROGRAMS CKWs (Community Knowledge Workers)
  5. 5. The model: information delivery to rural farmers Partners CKWs Farmers Public & Private Development Stakeholders CKWs use mobile phones to share Cross-subsidizationBetter serve our information with smallholders, and from data collectionpartners needs collect information via mobile allows farmer info surveys services to be free
  6. 6. The program was designed for sustainabilityform day 1 CKW Value Proposition: Partner value proposition: ‘Business in a Box’ B2B Services• Monthly mobile money payment • Information dissemination to rural for outbound info and inbound populations surveys • Data collection via mobile surveys• Mobile phone charging unit • Field force management & training• Marketing collateral • Custom application development
  7. 7. After two years, we’ve achieved fast growth andachieved partial sustainability 799 67,900 CKWs Farmers Registered9,000 Villages 30% Reached 19 Districts Female 38+7 Crops & 40% Animals Repeat Usage898,000 50% Total Sustainability Interactions
  8. 8. An IFPRI study showed major strides for farmers who used CKWs versus those who did not Farmer Knowledge Price Received for Maize 800 Parish without 95% 37% 700 CKW difference Parish 58% 600 with CKW 500 400 300 200 100 0 2009/10 2011/12 17% difference Propensity score matching shows that, as Results in Kapchorwa show a 37-percentagemeasured by 6 given questions, CKWs increase point difference in maize price increases received farmers’ knowledge by ~17% vs. non-CKW-served farmers
  9. 9. Sustainable ICT PRODUCTS AppLab Money Incubator (mobile money product innovation)
  10. 10. The problem: significant MM deployment growth, but few have offered more than payments ~100% offer standard payments 120 38% # providers offering the 100 provide other payment types 29% product type 80 enable interaction 60 with financial institutions 10% facilitate 40 loans 4% offer 20 insurance 0 Traditional Other Bank Credit Insuran Payments Payments Linkage ce (Transfer, Bill (G2P, salar Pay, Airtime) y) Payments Beyond PaymentsSource: GSMA deployment tracker, November 2011.
  11. 11. So why aren’t we seeing more innovation? Concerns Requires an institutional investment – Resources both financial and human capital Not a sudden “stroke of genius” – but Time the result of significant time and effort Risk Must be prepared to celebrate failure Must have capacity for R&D that R&D Processes involves a deep engagement with the consumer Need access to MNO to bring product MNO Partner to market
  12. 12. Our solution addresses the challenges we see indriving sustainable MM product innovation Concerns Our Answer Requires an institutional investment – ~$1M funding and Resources both financial and human capital diverse team Not a sudden “stroke of genius” – but 18 month time Time the result of significant time and effort horizon Risk Must be prepared to celebrate failure Fail early, often Must have capacity for R&D that Focused on the R&D Processes involves a deep engagement with the consumer innovation process Need access to MNO to bring product MNO Partner to market Strong partner
  13. 13. We focused on designing an innovation processthat would produce sustainable products Product Development Process 1 2 3 4 Idea Concept Prototype Product (50+ ideas) (8) (2-4) (1) • Intense • Ideas refined • Early version • Top prototypes consumer into concepts of product refined research to and filtered developed • Business identify user (scale and and tested models pain points impact) with finalized • Development • Business customers of long-list of models • Business ideas identified models tested
  14. 14. A considerable part of product innovation is business model innovationIllustrativeBus Models Potential Business Partners to Models to Test Test With Example Product: Developing a savings product that • What if customers paid a encourages many small fixed fee to use the service? Test with: deposits • Customer • What if a % of airtime was • MNO Challenge: deducted every time it was • Agents purchased, and that covered • Deposits cost for the the product costs? MNO, not customer • No transaction revenue as funds not • What if agents were not moving compensated by deposits?
  15. 15. Sustainable ICT Projects Learnings on Program and Product Design and Development
  16. 16. What it all means: Learnings from our work insustainable ICT• Think about sustainability from Day 1 – incorporate it in the mindset from the start• Solve the right problem• Think about the value proposition to all partners• Find the right partners• Monitor and evaluate performance, don’t be afraid to change approaches, or to fail

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