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Emerging Engagement Models -
Intersection of emerging technologies and
emerging economies

August 19, 2009
Silicon Valley Microfinance Network

Stephen Goodman
Head of Strategy & Research
Global Communications, Corporate Marketing
Sun Microsystems Inc.

+1.617.513.7343
goodmanse@gmail.com
stephen.goodman@sun.com


                                                  1
                              S. Goodman © 2009
A Growing Opportunity
 "The first reason that business needs to engage is
 that the world is changing -- and with it markets.
 Social entrepreneurs do not have all the answers,
 but they do see the world and markets differently,
 and the more innovative are experimenting with
 new business models that could potentially
 break out of their niches and help transform key
 elements of the global economy."
                                                    Skoll Foundation and SustainAbility
                    Growing Opportunity, Entrepreneurial Solutions to Insoluble Problems
                                                                          February 2008


                                                                                           2
                              S. Goodman © 2009
The bottom ~70% of the
    world’s population
 represents +$5 trillion
   in spending power.


                               3
           S. Goodman © 2009
The social utility
   of the internet
      will drive
technology business.


                             4
         S. Goodman © 2009
Understanding a Transformative Market:
“Emerging Communities”
   The convergence of business and ICT innovation has helped evolve
         donor-driven philanthropy into market-driven solutions
                                                    Fletcher-Sun
                                                    Collaboration
                            Prahalad & Hart
                                 WRI                                                        Market's
                                Cornell                                                      Future
          International                                                                     Definition
          Development
           Community                                                                     Connected
                                                                                         Communities




       1985     1990        1995      2000            2005 - - - - - - - - - - - - - - - - - 2025

                      Technology as a social utility over time
                                                                                                         5
                                              S. Goodman © 2009
What We Heard from the Market about Tech
   After interviewing dozens of global practitioners and experts,
                  the following themes emerged:

           The booming           People
              mobile           want Open.
         infrastructure is                                   Africa is the
                               Resources don’t                hotbed for
         lacking back-          constrain the
             end               entrepreneurial                ICT innovation
           support                  spirit


                  Competitors                      E-health and
                  are using the BoP
                   as a testing                    m-Banking are
                       and                           big and will
                   innovation                     explode within the
                                                   next 5-10 years
                     ground


                                                                               6
                                      S. Goodman © 2009
What We Heard from the Market about Business
     After interviewing dozens of global practitioners and experts,
                    the following themes emerged:


     Business                                                      Boot Strap
    models are           Trust by                 Early Stage      Economics
   undergoing a        participating in              Investment      Enabling
    meta-                   same                    has the most    connections
                        communities                    impact      results in new
  morphosis                                                           services




                  There is real long-term investment potential



                                                                                    7
                                          S. Goodman © 2009
Empower with Influencer Ecosystem
For a non-consumer enterprise, direct access to emerging communities is limited. It
 must connect to an influencer ecosystem of thought leaders, funders, companies,
            and innovators that support the base of economic activity,
                     delivering innovative new ICT solutions.




                                                                                8
                                       S. Goodman © 2009
New Influencers, Models and Technology

   “Innovators”        “Incubators”              “Connectors”

          New Set of Audiences for Engagement


 Micro-enterprise    Social-enterprise          Tech-enterprise
        Focus on New Models for Economic Success


 Data                Free and Open              Cloud Computing
 Management          Source Software
                                                                      9
            An Emerging Set of Technology Tools

                                                                  9
                            S. Goodman © 2009
Ingredients for Business Model Development

   “Innovators”        “Incubators”              “Connectors”

          New Set of Audiences for Engagement


 Micro-enterprise    Social-enterprise          Tech-enterprise
        Focus on New Models for Economic Success


 Data                Free and Open              Cloud Computing
 Management          Source Software
                                                                       10
            An Emerging Set of Technology Tools

                                                                  10
                            S. Goodman © 2009
More Accessible, Elastic and Scalable ICTs
       “Innovators”         “Incubators”            “Connectors”

              New Set of Audiences for Engagement


    Micro-enterprise      Social-enterprise     Tech-enterprise

           Focus on New Models for Economic Success



 Data                     Free and Open               Cloud Computing
 Management               Source Software
                                                                             11
             An Emerging Set of Technology Tools

           Recognize that technology is not an end-solution
              but that appropriate AND innovative tools                 11
     help boost social, economic and civic activity in positive ways.
Technology in the Eco-system

 Uses FOSS to work with
 government, civil society, rural   Mobile platform for pre-paid     Delivers connectivity to rural
 development initiatives            airtime popular w/               communities via Wi-fi
                                    remittances                      technology & digital storage


 Incubates mobile
 entrepreneurs, transforms          Develops tech solutions via      Delivers Internet, voice
 programming curricula w/           mobile devices for health,       service in underserved towns
 FOSS in African universities       government, enterprise for       via local kiosks & SMEs
                                    emerging communities


 Open source, world-class           Leading Kenyan telecom
 Microfinance-centric               rolled out M-pesa, the largest   Creates/sells affordable ICTs
 management information             mobile banking services in       for governments, NGOs and
 system                             Africa                           private enterprises to serve
                                                                     rural communities
 .
                    To truly be innovative, integration of new models                                 12

                          is necessary in emerging communities
Where in the World is
Free and Open Source
      Software?


                              13
          S. Goodman © 2009
Questions & Comments

 “Most companies continue to mistakenly assume that
 poor markets possess no value opportunities and have
 yet to try to understand the possibilities of serving the
 markets they’re used to ignoring. Firms that do take the
 time appear to recognize that those at the base of the
 pyramid lack attention and capital, not ingenuity and
 aspiration. Thus, these firms have the potential to
 unlock future markets of immense scale and
 scope.”
                                                                 Stuart L. Hart
                                                Capitalism at the Crossroads

                                                                                  16
                            S. Goodman © 2009

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Emerging Tech and Emerging Economies -- 2009.08.19 Stephen Goodman Presentation at SVMN

  • 1. Emerging Engagement Models - Intersection of emerging technologies and emerging economies August 19, 2009 Silicon Valley Microfinance Network Stephen Goodman Head of Strategy & Research Global Communications, Corporate Marketing Sun Microsystems Inc. +1.617.513.7343 goodmanse@gmail.com stephen.goodman@sun.com 1 S. Goodman © 2009
  • 2. A Growing Opportunity "The first reason that business needs to engage is that the world is changing -- and with it markets. Social entrepreneurs do not have all the answers, but they do see the world and markets differently, and the more innovative are experimenting with new business models that could potentially break out of their niches and help transform key elements of the global economy." Skoll Foundation and SustainAbility Growing Opportunity, Entrepreneurial Solutions to Insoluble Problems February 2008 2 S. Goodman © 2009
  • 3. The bottom ~70% of the world’s population represents +$5 trillion in spending power. 3 S. Goodman © 2009
  • 4. The social utility of the internet will drive technology business. 4 S. Goodman © 2009
  • 5. Understanding a Transformative Market: “Emerging Communities” The convergence of business and ICT innovation has helped evolve donor-driven philanthropy into market-driven solutions Fletcher-Sun Collaboration Prahalad & Hart WRI Market's Cornell Future International Definition Development Community Connected Communities 1985 1990 1995 2000 2005 - - - - - - - - - - - - - - - - - 2025 Technology as a social utility over time 5 S. Goodman © 2009
  • 6. What We Heard from the Market about Tech After interviewing dozens of global practitioners and experts, the following themes emerged: The booming People mobile want Open. infrastructure is Africa is the Resources don’t hotbed for lacking back- constrain the end entrepreneurial ICT innovation support spirit Competitors E-health and are using the BoP as a testing m-Banking are and big and will innovation explode within the next 5-10 years ground 6 S. Goodman © 2009
  • 7. What We Heard from the Market about Business After interviewing dozens of global practitioners and experts, the following themes emerged: Business Boot Strap models are Trust by Early Stage Economics undergoing a participating in Investment Enabling meta- same has the most connections communities impact results in new morphosis services There is real long-term investment potential 7 S. Goodman © 2009
  • 8. Empower with Influencer Ecosystem For a non-consumer enterprise, direct access to emerging communities is limited. It must connect to an influencer ecosystem of thought leaders, funders, companies, and innovators that support the base of economic activity, delivering innovative new ICT solutions. 8 S. Goodman © 2009
  • 9. New Influencers, Models and Technology “Innovators” “Incubators” “Connectors” New Set of Audiences for Engagement Micro-enterprise Social-enterprise Tech-enterprise Focus on New Models for Economic Success Data Free and Open Cloud Computing Management Source Software 9 An Emerging Set of Technology Tools 9 S. Goodman © 2009
  • 10. Ingredients for Business Model Development “Innovators” “Incubators” “Connectors” New Set of Audiences for Engagement Micro-enterprise Social-enterprise Tech-enterprise Focus on New Models for Economic Success Data Free and Open Cloud Computing Management Source Software 10 An Emerging Set of Technology Tools 10 S. Goodman © 2009
  • 11. More Accessible, Elastic and Scalable ICTs “Innovators” “Incubators” “Connectors” New Set of Audiences for Engagement Micro-enterprise Social-enterprise Tech-enterprise Focus on New Models for Economic Success Data Free and Open Cloud Computing Management Source Software 11 An Emerging Set of Technology Tools Recognize that technology is not an end-solution but that appropriate AND innovative tools 11 help boost social, economic and civic activity in positive ways.
  • 12. Technology in the Eco-system Uses FOSS to work with government, civil society, rural Mobile platform for pre-paid Delivers connectivity to rural development initiatives airtime popular w/ communities via Wi-fi remittances technology & digital storage Incubates mobile entrepreneurs, transforms Develops tech solutions via Delivers Internet, voice programming curricula w/ mobile devices for health, service in underserved towns FOSS in African universities government, enterprise for via local kiosks & SMEs emerging communities Open source, world-class Leading Kenyan telecom Microfinance-centric rolled out M-pesa, the largest Creates/sells affordable ICTs management information mobile banking services in for governments, NGOs and system Africa private enterprises to serve rural communities . To truly be innovative, integration of new models 12 is necessary in emerging communities
  • 13. Where in the World is Free and Open Source Software? 13 S. Goodman © 2009
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  • 16. Questions & Comments “Most companies continue to mistakenly assume that poor markets possess no value opportunities and have yet to try to understand the possibilities of serving the markets they’re used to ignoring. Firms that do take the time appear to recognize that those at the base of the pyramid lack attention and capital, not ingenuity and aspiration. Thus, these firms have the potential to unlock future markets of immense scale and scope.” Stuart L. Hart Capitalism at the Crossroads 16 S. Goodman © 2009