CDI UK Feasibility Study 2009 - Digital Inclusion Research

Centre for Digital Inclusion
Transforming lives through technology, education and citizenship

UK Feasibility Study
Summary final report by Zeitgeist Advisors

August 2009

Introduction

  This presentation sets out the findings and recommendation about the feasibility for the
Centre for Digital Inclusion (CDI) to launch operations in the United Kingdom.

  Based on the initial feedback from digital inclusion players in the UK, CDI’s model of
combining ICT training of individuals with community problem solving and citizenship
empowerment had been identified as a potentially valuable contribution to the digital
inclusion landscape in the UK. The study aimed to verify this hypothesis and to define the
role CDI could play in the digital inclusion landscape in more detail .

  Zeitgeist Advisors (ZA) was contracted to assess UK market conditions, the value chain of
digital inclusion as well partnership and financing options for a pilot project.

  The project was completed between April and August 2009.

(cc) CDI Europe Ltd. Non‐commercial use only. 2

Methodology

  For the study more than 45 interviews were conducted with experts involved in the fields of
digital inclusion, youth, entrepreneurship, community & social media, community
development & regeneration, informal learning and citizenship education.

  ZA completed site visits to UK Online Centres and community organisations in London/
Hackney, Nottingham, Shipley, Manchester, Cambridgeshire, Black Country, Birmingham
and London/ Lambeth.

  ZA conducted two informal discussion groups with young people in Hackney (Pedro Club)
and Southampton (Fairbridge).

  For the project ZA attended four conferences: National Digital Inclusion Conference, Shine
‘09, Reboot Britain and Connected Generation ’09.

  An expert brainstorming session was hosted by CDI trustee Charles Leadbeater which
provided additional input into the project as did the information provided by CDI’s
operations and strategy teams in Rio de Janeiro.


Project Approach
During the 16-week project different key elements of feasibility were studied

3
Positioning in
digital
1 2 inclusion 5 6 7
Kick-off and process Pilot KPI definition & Final Report &
Digital & social
management exclusion programme operational Go/No-Go
arrangements landscape 4 options requirements Decision
Community
partnership
options


Executive Summary
Observations

  The technology, digital inclusion and education landscape in the UK is very different
from any other country CDI has been operating to date.

  The digital inclusion sector in the UK is well-developed, crowded and competitive.
There has been significant investment by the public, private and third sectors in the
field during the past 10 years.

  There are leading-edge technology and social enterprise initiatives especially in the
areas of social and digital media.

  Young people – traditionally CDI’s core target audience – have been exposed to a
wide range of technology through education and work. More than 97% of 16-24 year
olds are using the Internet.

  The average skill level in the UK is significantly higher than in any other country CDI
has been operating today, thus there is a larger premium on advanced knowledge-
based skills.


Executive Summary
Conclusions

  CDI’s traditional model of basic IT skills is not needed in the UK as there is a broad
range of players involved in that space.

  CDI needs to shift its model to new technology platforms that are attractive to young
people – primarily Internet and application enabled mobile phones like the iPhone.

  While keeping the spirit of CDI’s pedagogy it will need to shift from an action to a
critical-learning based approach to meet the requirements of advanced knowledge-
based economies like the UK.

  In order to achieve compelling outcomes CDI will have to have a bigger focus on
establishing a full eco-system of support for its course graduates.

  Testing this approach will need to involve a series of pilots; the learnings from which
will add value to the digital inclusion space, drive CDI brand recognition through
innovation and thought leadership, and create a range of fund-raising opportunities.

  The experience gained by CDI on smartphones in the UK will allow it to expand both
into other developed markets and developing countries with poor fixed Internet
infrastructure. The UK initiative is thus of high strategic importance for CDI globally.

Agenda

1 Digital and social exclusion landscape

2 Position in digital inclusion process

3 Pilot program options

4 Partnership analysis
5 Pilot design

6 Operations & financials

7 Conclusions & recommendations


Internet penetration benchmark
UK Internet adoption is amongst one of the leading worldwide. CDI has typically been
operating in much less mature technology markets.

Internet penetration (2008)
% of population
80% 74%
71%
70%
60% 51% 49%
50%
39%
40% 34%
32%
30% 26% 25% 23%
18%
20% 12%
9% 7%
10%
0%

Internet penetration Global average
* In progress + in planning ‘’ fundraising-only today

Source: Internet World Stats 2009


Internet usage UK
More than 97% of all young people are using the Internet, even more than 50% of
non-skilled adults use the Internet

% of AdultsGreat Britain never used Internet
adults, who have % of adults, Great Britain
Internet access & educational qualification
% of adults, Great Britain % of adults, Great Britain

100% 100% 93%
89%
90% 90% 86%
82%
80% 80% 74%
70% 70%
60% 60% 56%

50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2006 2007 2008 2008

all 16-24y 25-44y Degree level or higher
Higher educational qualification
45-54y 55-64y 65+ A Level
GCE/ GCSE (A-C grade)

Source: Office of National Statistics 2008


Timeline policy initiatives
During the last decade the UK government has had a strong focus on digital inclusion
2009
Informal Adult Learning
whitepaper (DIUS) & Informal
Learning Transformation Fund

1999-2004 1998-2003 2004-2007 2007 2008 2009
Office of the e- Tools for schools & capital E-Government Unit Digital Challenge Minister for Digital Digital Britain
Envoy (Cabinet modernisation fund (Big Lottery) (Cabinet office) DC10+ Network Inclusion (Cabinet) report (BERR/
office) (CLG) DCMS)

2000 2000-2003 2005 2006 2008 2009
UK Online Centres Wired-up Inclusion though Digital Digital Inclusion Digital Champion
created (DfES) Communities (DfES) Innovation & Digital Inclusion Action Plan appointed
Computers Within Strategy Team Consultation (CLG)
Reach (Cabinet Office/ DTI)

2008 2009
Communities in Control Aspirations & attainment in
Whitepaper & Digital Mentors deprived communities
Programme (CLG) Whitepaper (CO, DCSF, CLG)

  £5 billion invested in formal and informal educational ICT infrastructure from 1997-2007
  School pupils per computer in 2007 -> 6:1 in primary and 3.6:1 in secondary education

Sources: Zeitgeist Advisors, Neil Selwyn (2008)

Digital inclusion – policy definition
Digital inclusion is a very broad and unfocused term in the UK policy debate.
Different players pursue different objectives.

  Digital Inclusion means different things to different people:

─  giving people the basic ICT skills to participate in the knowledge economy
─  closing the Digital Divide
─  making technology and electronic services accessible for the disabled and elderly
─  giving people broadband Internet access
─  preventing economic exclusion from electronic commercial and public services
─  preventing social exclusion from digitally connected communities
─  using any digital technology to tackle social exclusion
─  using any digital technology in communities to tackle area-based deprivation

  “The use of technology either directly or indirectly to improve the lives and life chances
of disadvantaged people and the places in which they live”
(Digital Inclusion Team)


E-society UK
Especially the group of e-marginalised people are of interest to CDI

Typology
  Not averse to the use of electronic technologies
  Lack the disposable income to equip
themselves with them
  Lack training and education to understand how
to make effective use of them

Personal characteristics
  Many unskilled young workers
  Many live in low rise council estates
  Many affected by high unemployment, low
incomes and reliant upon public services

Source: e-Society Profiler CASA/ Experian 2006 More information in Annex 2: Digital and social exclusion landscape

New technology trends
Mobile Internet and mobile application usage are major areas of growth

UK consumer-only smartphone sales

1,400 18%   Mobile broadband sales grew from
16%
16% 76,000 in 02/08 to 263,000 in 05/09
1,200
14%
1,000 12%   Q1 ’09: 8 million people accessed
12% the Internet via their mobile phones
800 9% 10% compared to 5.7 million in Q1 ’08
600 7% 1,230 8%
  Increasing take-up of smartphones
970 6%
400 4%
drives mobile Internet usage
560 4%
490
200
2%
  Smartphones defined by Ofcom as
170 handset running an full operating
0 0%
system (e.g. Symbian, Android,
Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009
iPhone)
Smartphone unit sales
Smartphone sales a % handset sales

Source: Ofcom The Communications Market Report 2009

PC vs. mobile broadband Internet
Ovum forecasts that more than 2 billion people will be using the mobile broadband
Internet by 2014. These are more users than the PC Internet today.

PC Internet growth 1995-2008 Broadband Internet forecast
Million users Million users
3,000 3,000
2,762

2,500 2,500
2,209

2,000 2,000
1,574 1,696

1,500 1,319 1,500 1,320
1,093
1,018 1,031
1,000 817 1,000
719 805
587 624
513
500 361 500
248
147
16 36 70
0 0

DSL Internet Cable modem Internet
Source: Internet World Stats, Ovum broadband forecasts 2009 Fixed other Internet Mobile Internet


Digital Inclusion Landscape – Summary
The UK landscape is a for shrinking and crowded market traditional digital inclusion

  Internet adoption: UK is a significantly more mature market and the digital divide is
smaller than in any other country in which CDI operates.

  Access: Computer access is already wide-spread due to heavy public and private
investment in the education and ICT sector.

  The E-marginalised are often young, unskilled or unemployed living in council housing

  Mobile Internet & smartphones: Smartphone market share and mobile usage have
grown rapidly in the last few years.

  Youth & mobile: Young people are much more likely than older people to use Internet
services on their mobile phones. More than half of 18-24 year olds are aware of what
an mobile application store is, compared to less than a quarter of the population as a
whole.

  Access to the Internet globally will be increasingly via handsets and the mobile
Internet
More information and statistics about the “Digital and social exclusion landscape” in Annex 2.

Agenda




5 Pilot design




Digital Inclusion value chain
During the last 10 years the value of different initiatives has shifted with players
adapting to changes and expanding into new areas

Computer recycling Safety & security
& procurement
Basic IT skills
IT outsourcing &
IT maintenance & data base design
Access to IT
support Programming &
Internet cafe advanced skills
& printing Website design
services & other services Digital media skills

High value 1999-2000 2001-2003 2003-2005 2006-2009
offer in UK

Examples of   Wired-up   UK Online Centres   Recycle IT   WiseKids
communities   Easy Internet   Cosmic in Devon   CHC BIT
initiatives
  Community cafes   4iP
networks   Talk About Local,
PVM

Current economic value

CDI focus vs. UK market focus
Most of CDI’s existing activities are no longer priority areas for the UK

Computer recycling Safety & security CDI
Basic IT skills & procurement
IT outsourcing &   Focus on access, basic
data base design
Access to IT
IT maintenance & skills & recycling
support Programming &
Internet cafe advanced skills   Expansion into services,
Website design
& printing services
& other services Digital media skills maintenance & support

Computer recycling Safety & security UK market
Basic IT skills & procurement
IT outsourcing &   Focus on programming
IT maintenance & data base design
Access to IT
support
skills and digital media
Programming &
Internet cafe advanced skills   Decline of recycling,
& printing services Website design
& other services Digital media skills Internet cafes & support

Heavy focus
Medium focus
Low focus
Very low or no focus


The next bounce of the ball?
The digital inclusion value chain will expand further as new technologies will grow

Computer recycling Safety & security Universal
& procurement
Basic IT skills high-speed
IT outsourcing & broadband
Access to IT
Internet cafe
IT maintenance &
support
data base design
Programming &
advanced skills Mobile
?
& printing Website design Internet skills
services & other services Digital media skills

1999-2000 2001-2003 2003-2005 2006-2009 2010-?

Mobile Internet skills will be more important as mobile Internet and smartphone markets grow
Fixed broadband is likely to become seen as an essential utility with universal access


Competitive Map by Social Change Theory
No existing UK digital inclusion organisation offers a systematic social
entrepreneurship learning programme as part of its curriculum

Citizens Moving IT Talk
Forward We People’s About
Online
Share Voice Social Local
Stuff Media by
UK Online
Social
Centres
ELATT
Podnosh
CMA CDI
IT in
schools UK
Cambridge Villages
Archive
Network

No explicit social Document social Support social Learn social
focus issues entrepreneurs entrepreneurship

CDI’s 5-step pedagogy enables people to achieve social change in their communities is
unique in the UK and offers an opportunity


Technology & Social Change Matrix
Moving into the mobile Internet space addresses both a technology and social
change gap in the UK market

CDI
Handheld
Mobile Internet learning in Fix My Mobile
Street
skills schools

We People’s Talk
Share Voice About
Stuff Media Local
Social & digital Social CDI 2.0
media skills Podnosh by
CMA Social

Moving IT UK
IT in Forward Cambridge Villages
schools Archive
ELATT Network
IT & Internet CDI 1.0
Citizens UK Online
skills Online Centres

No explicit Document Support social Learn social
social focus social issues entrepreneurs entrepreneurship

CDI has the opportunity to become a market leader in the emerging mobile Internet space and
to expand the concept of digital inclusion further

Digital Inclusion Positioning – Summary
New technologies like mobile will drive value creation in the digital inclusion value
chain in the future

  Digital inclusion – a dynamic concept: The activities of UK digital inclusion players
have shifted during the last 10 years as markets have evolved

  Commoditisation of digital inclusion services: Initially high priority and high value
services become commoditised over time

  A mix of different value services: Long-term successful players have adapted to
changing market conditions and are offering a mix of higher and lower value services

  High competition for lower value services: There are many commercial, public and
third sector players involved in the provision of basic access and skills services

  Mobile Internet opportunity: CDI has an opportunity to be the first to develop a new
mobile Internet skills service, thus extending the concept of digital inclusion further

More information about the “Position in digital inclusion process” in Annex 3.

Agenda




5 Pilot design




Criteria for pilot program options
Based on the historical success of CDI’s model in Latin America there are four
criteria for pilot program options in the UK:

Valuable to
Income through
Technology pull community Up-to date skills
services
partners

  Technology   Clear benefits for   Offers students   Community
attractive to CDI partners to engage leading skills to partners and
students   Access to leap-frog into students have
  CDI’s core target expensive education, potential to earn
group: young technology employment, additional
people entrepreneurship income
  Contacts to
companies or new
resources

CDI’s successful model can only be replicated when all of these criteria are fulfilled


Pilot program options
Based on its existing model CDI has four different strategic options to positions itself
in the UK

  Advice and consult public and third sector organisations on CDI’s
Education only educational and distribution model
model   Advice the trainers or advice other network organisations

  Use CDI model to offer services to niche segments not yet digitally
Basic IT &
included and not covered by other service providers
Internet skills
model   Compete against digital inclusion providers based on more effective
educational model
  Expand into the field of social and digital media by partnering with
Social & digital existing basic digital inclusion players using CDI’s educational model
media model

  Expand into nascent mobile Internet and application segment by
Mobile Internet partnering with existing basic digital inclusion and social media players
model using CDI’s educational model


Evaluation of four pilot options
The mobile Internet today fulfils many of CDI’s historical success criteria

Valuable to Income
Technology Up-to date
community through
pull skills
partners services

Education No Theoretical No impact CDI only
technology not practical on skills
only model used value

Basic IT &
Internet skills Declining Only to Catching-up Shrinking
group of partners not with majority margins &
model non-users yet using IT services

Social & Gov & third Proven Social Advertising
digital media sector focus demand, media skills and advice
model but in demand
competitors

Attractive No other Mobile App store, but
Mobile Internet to young offering, apps skills unproven yet
model people but new in high
challenge demand

Fulﬁls criterion:    Fully    ParFally  Not at all 

Pilot Program Options – Summary
Mobile Internet as best option for UK pilots

  Historical success criteria: CDI’s historical success was based on a combination of
right market timing & attractive technology, clear value proposition to partners, up-to-
date technology skills and new income opportunities for CDI students & partners

  Mobile Internet pilots as a high-risk & high-reward options that has the potential to
fulfil historical success criteria

  Mind-share & youth opportunity since there is no other established player in the
market and young people are most aware of new mobile technologies

For detailed more information about the pilot option assessment see Annex 4.

Agenda




5 Pilot design




CDI Community Distribution Model
The core of CDI’s model is to work in partnership with local organisations

  CDI operates as a network of independent
organisations based on a contractual
relationship

  CDI provides technology, branding, access to
learning know-how, corporate partners and
network

  Local partners provide physical space,
electricity, local marketing and support and
staff to become educators

  Network approach is scalable and allows for
local customisation

CDI operates as a wholesale organisation training local community organisations


Community Partner Selection Criteria
CDI operates a thorough system of due diligence and support for all local partners.
Each organisation is scored on a range of criteria

Sustainability Infrastructure Community

  Interest and commitment   Physical space available   Level of connections with
  Successful local social   Level of security local community
entrepreneur   Electric installations   Literacy level of population
  Local staff available   Internet access   Community development
  Co-investment capacity/ expertise
financial resources   Technology expertise
  Opening hours

While some criteria will be irrelevant CDI’s model offers a good template for selecting well-run
community-based organisations


Partnership Summary
Community partners are a core part of CDI’s delivery model while there is no clear
model for collaboration with digital inclusion players

  Digital inclusion partners: There are no immediate synergies from partnering with
existing digital inclusion players – and some even consider CDI’s traditional model as a
threat

  Delivery model: CDI operates as an intermediary/ wholesale organisation which
delegates delivery of its programmes to local community partner organisations

  Due diligence of community partners: CDI has developed a strong and successful due
diligence process, but its detailed criteria will need to be adjusted to a UK context.

  Pilot partners: Several organisations have been identified as potential partners for the
pilots. A full due diligence will need to be completed.


Agenda




5 Pilot design




Mobile Internet Pilot – Principles
The design of the UK pilot program will need to take into account some core
principles:

Focus on smartphone technology
  Not phone specific, but more general
  Hybrid with computers for social impact
  Two different prototypes need
Critical pedagogy & learning to test key assumptions during
the pilot programme:
  CDI 5-step methodology framework
  UK education & learning environment specific
─  Educational curriculum/
Realistic outcomes critical learning prototype
─  Technical prototype
  Progression for CDI alumni
  Ability of students to learn programming skills focused on mobile app
development
Potential for scalability
  CDI distribution/ community partner model
  Target groups of students


Operating approach
Three elements will be required for CDI’ s new operating model in the UK

1   People come to IT-experienced community
partners in deprived areas

  Community orgs select CDI students

2
  CDI students get high-end mobile phones as
part of the programme (monthly fee or
volunteering)

3
  4-month CDI Mobile course working as a small
team with educator on social issue while
learning technology skills

  Mobile app for social change used, designed
and developed


CDI 5-step methodology framework
All CDI courses are structured along its 5-step methodology framework

Step 1 Step 2 Step 3 Step 4 Step 5

Community Problem Solution Solution Impact
analysis definition design delivery assessment

“Read the world” “Research data” “Plan action” “Take action” “Evaluate path taken”

  5-step methodology is a high-level framework, not a detailed course curriculum
  Each course is in practice taught very differently in different CDI Communities, subject
to the local community and circumstances
  “Action” has two different meanings in CDI context:
─  Practical action of using technology (during course)
─  Social action outside the CDI Community (short-term, mid-term, long-term)


Action-based learning vs. critical learning
CDI’s courses today constitute a combination of action-based & critical learning

Action-based learning Critical learning

Theory/
frame-
Act/ work
apply

Act/
Reflect
apply

Reflect Evaluate
Evaluate

Due to the higher education & literacy levels in the UK compared with other CDI operations,
there needs to be a strong emphasis on best-practice frameworks for action
For tertiary education enrolment benchmark see Annex 5.

Skills Mapping to Original Structure
CDI’s 5-step methodology can be linked to different key skills areas in a UK context

Step 1 Step 2 Step 3
  Theoretical input in CDI’s
Community Problem Solution courses in Latin America
analysis definition design varies significantly
between different types of
courses
Analysis Creative & design, Technical skills
& research Planning skills (IT & mobile)   CDI UK should engage
skills with educational and
Step 5 Step 4 business experts in order
to develop the theory/
Impact Solution framework inputs for each
assessment delivery course

Evaluation skills Communication &
mobilisation skills


High-level course flow
Before launching a prototype CDI UK will need to develop a complete course design
which can be tested and evaluated

  Local partner will
need to be actively
involved with their
local expertise

  CDI existing courses
can function as a
guide, but only limited
practical materials
are available to date


Pilot program flow
A fast prototype will test key assumptions while full pilots will test learning materials
and outcomes

Critical learning prototype Refinement & technical prototype Launch
Months 1 2 3 4 5 6 7 8 9 10 11 12

Pilot 1: Develop critical Fast Evaluate Evaluate Launch
learning course prototype Critical learning course (full run) pilot
critical prototype course

learning

Pilot 2: Evaluate
Develop mobile apps
mobile course Test mobile app course (full run) pilot
apps

Eco- Pilot eco-system
Test eco-system partnerships
system


CDI’s traditional eco-system
In Latin America CDI has a relatively weak, but growing focus on its eco-system

Employment
Apprenticeships   CDI is working in
CDI job hunting services
partnership to deliver
Conexão

  CDI had some smaller
Advanced courses projects to put alumni into
apprenticeships
Enterprise
Education CDI basic
Conexão   Becoming a CDI educator
No links IT course
CDI seed finance
has been a core exit route
for alumni

  Formal education and
advanced skills has been
less of importance in Latin
Educator America
CDI training


UK outcomes & ecosystem
Partnerships and a strong eco-system will be essential in the UK in order to achieve
its ultimate outcomes and ensure students moving on successfully

Next step elements required

  Industry certification & accreditation
Employment
of training programme
P   Apprenticeship programme with
a companies
r
Pre- t   Partnership with further education
Course n Education
Course institutions
e
r   Partnership with social enterprise
s seed funders & support e.g. UnLtd

Enterprise   Partnership with commercial seed
funders & support

For detailed UK eco-system model see Annex 5.

High-level learning plan
The pilots should be completed during a 12-month period including multiple
prototypes and refinements

Prototypes Refinement Launch

Timeline Month 1-6 Month 7-12 Month 12+

Course &   Translation   Online learning   England launch
Curriculum   Initial materials   Evaluation   Advanced courses
  Skills theory   Full-run course   Crowd-funding
  Marketing

Eco-system   Enthusiasts   Technical experts   Formal partnerships
  Enterprises
  Education

Course type   1st run of short & fast   2nd run of no app dev   tbd
prototype course course (by partner org only)
(no app development)   1st run of app dev course

Size   5-15 students   15-30 students   50-100 students
 1-2 educators   5 educators   10-20 educators
 1 partner org   2-3 partners   8-10 partners


Pilot Design – Summary
A successful pilot programme will require CDI to develop new educational and
technical organisational capabilities

  Technical & critical learning pilots: Two different prototypes should be developed
to test key assumptions and speed-up the learning process

  Extending the 5-step methodology: CDI framework will still apply, but will need a
stronger focus on skills and frameworks to take into account the UK economic
context

  Strong eco-system focus: In order to optimised the outcomes for CDI alumni there
is a need to build a strong supporting eco-system of next-step partners early on

  Launch to scale: After the completion CDI should be able to scale the programme
very quickly


Agenda




5 Pilot design




Funding types & sources for pilot phase
There are a range of potential funders for the pilot projects which will require further
qualification and research

Foundations Corporate philanthropy Individuals

  Nominet Trust   CDI existing corporate   Successful technology
  Media Trust – Digital Mentors technology partners like Dell entrepreneurs & Prince’s Trust
  BIG Mediabox   Mobile phone operators (O2, mentors
Vodafone, T-Mobile)   Social business angel
  Esmée Fairbairn Foundation –
New Approaches to Learning   Handset manufacturers networks (VPF members,
(Apple, Research in Motion, EquityPlus)
  Nesta
Palm, Nokia)
  Young Foundation –
Learning Launchpad   Other telecoms operators
(Virgin Media, BT)
  MacArthur Foundation –
Digital Media and Learning   Mobile operating system
providers (Google/ Android,
Competition
Microsoft Mobile, Symbian
  4iP network partners Foundation)


Mid-term sustainability & services
CDI Mobile will need to find a sustainable business model that goes beyond a pure
fundraising model

  CDI will need to test
and explore new
business models in
the UK

  CDI 2.0 services are
unlikely to be
sufficient in a mature
UK market

  CDI could explore
equity-like
investments for
further expansion


Pilot project impact measurement
In order to create a robust impact measurement approach in the UK, CDI will be
beta-testing its new data management tool plus establish qualitative monitoring

Prototypes Refinement
  Number of course applications   Number of course applications
  Registration / baseline survey   Registration / baseline survey
Students
  Interim feedback & attendance   Interim feedback & attendance
  Exit interview/ completion survey   Exit interview/ completion survey

  Online platform
  6-month outcome survey
Alumni
  1.5 year outcome survey

  On-boarding interviews   Course refinement objectives
  Interim feedback loops   Additional feedback loops
Educators
  In-depth course end interview   In-depth course end interview
  Course adjustments

  Initial partnership launch with   Educator assessment & assessment
Community commitments & expectations of partnership and commitments
partners   Ongoing feedback on operational
challenges, educators performance


Operations & financials – Summary
Before launching pilots CDI will need to put certain elements in place:

  CDI Matriz & UK resources: CDI will need to carefully assess whether it will be able
to dedicate the necessary staff resources for strategic direction & knowledge-transfer
to a new strategic initiative, CDI Mobile

  Governance structure: CDI Mobile will require significant new development and as
such should be treated separately from existing desktop-based operations

  Enough investment to allow for closely monitored prototyping & testing: CDI
should raise enough seed money that will allow the pilot programme be run with
different prototypes and to allow for clearly monitored impact assessment

  Grant-funded seed investment: For the pilots loan or equity-like investment
vehicles will be inappropriate and fundraising should be focused on grant funders &
individuals as well mobile telecoms companies


Agenda




5 Pilot design




Recommended pilot option for CDI UK
The mobile Internet and CDI Mobile are the largest opportunity for CDI in the UK

CDI Mobile Why?
  Keep existing social change model,   5-step model works, but will require
Social change but add additional content on additional input to achieve full
model research & analysis, design skills as potential in a developed knowledge
relevant to UK context economy

  Use mobile Internet & smart phones   Desktop computers are no longer
Technology as key pull factor for young people, attractive in themselves
platform but use IT infrastructure as necessary   Existing IT infrastructure can be
utilised and leveraged for program

  CDI Mobile needs to be embedded in   CDI is late to market and initial
UK digital inclusion, social credibility will depend on partnerships
Eco-system entrepreneurship, community   Effectiveness of CDI depends on
development and youth eco-system frictionless connection with partners

  Different options for sustainable   Only nascent competition in that
income streams through mobile space from social action point of view
Sustainability Internet apps & mobile Internet   High and growing commercial
expertise for social change demand for mobile Internet skills


Possible risks for CDI Mobile success
As a new innovative programme CDI Mobile has a range of risks that require
mitigation

Risks Mitigation actions
  Funders & social investors not interested in   Mobilise CDI networks over short, but
CDI Mobile and pilot projects condensed period in order to assess interest
  Community partners have no space or ability to   Adjust due diligence criteria for mobile Internet
run CDI Mobile programme programme & sign clear partnership agreement
  CDI governance structure does not allow for   Adjust governance structure that allows for
fast and flexible decision making for the pilots entrepreneurial and flexible operation with

 
minimum bureaucracy

Eco-system
  CDI UK has neither educational nor technical   Ensure educational knowledge transfer through
skills internally to fully deliver programme LatAm educator & build network of sympathetic
developers
  Learning technical mobile app development   Turn mobile app development into advanced
skills takes longer than CDI basic course course or “outsource” development work to
technical volunteers until simple tools exist
  While testing with one type of smart phone
  Smart phones chosen by CDI are not attractive
design programme to be independent from
to young people
technology vendor/ operating system over time
  Low motivation of students & high-drop out
  Increase barriers to entry and charge monthly
rates
fee (or volunteering commitment) to students


For more information

Read the project and pilot blog: http://www.appsforgood.org
Visit CDI Europe website: http://www.cdieurope.eu
Visit CDI global website: http://www.cdiglobal.org

This report was produced by Zeitgeist Advisors Ltd.
Iris Lapinski
Director
Zeitgeist Advisors Ltd.
iris@zeitgeist-advisors.net


Annex


Annex 1
Interviewees & research reports


Interviews (1)
ZA conducted expert interviews with the following people:

Alice Goldie  Migrant Resource Centre, Online Centre Co‐ordinator 
Andrew EntecoR  Cambridge OnLine 
Andrew Purvis  Fairbridge, CEO 
Anne Faulkner  UK Online Centres 
Ben Metz  Ashoka, Director UK 
Carol  Pedro Club, Hackney 
Cassie Hague  Futurelab 
Damani Goldstein  Connected CommuniFes/ RSA Senior Researcher 
Dan McQuillan  Make Your Mark/ Social InnovaFon Camp 
David Wilcox  Social Reporter, Social by Social 
Davinder Kaur  SWEDA 
Deborah Carrington  Black Country ConsorFum Ltd, ExecuFve Director 
Don Macdonald  North West London Online 
Ellie Stoneley  DC10+ / UK Villages 
Essi Lindstedt  CiFzenship FoundaFon 
Gary Copitch  People's Voice Media 
Helen Milner  UK Online Centers CEO 
Imran Jamal  BRAC 
Jo Higgins‐Cezza  Becta, Head for Digital Inclusion 
John Bateman  Youth UK, CEO 
Kevin Harris  Community development and social media, ex‐ Community Development FoundaFon 
Kevin Russel  UK Online Centres 
Leon Cych  Learn4Life 
Margery Ellis  Shipley College 
Marilyn Burrill  Black Country ICT Gateway's Digital Inclusion Manager, Birmingham 
Michael Grimes  Birmingham Bloggers, CiFzenship FoundaFon 


Interviews (2)
ZA conducted expert interviews with the following people:

Mike Cushman  LSE, Researcher on Digital Inclusion 
Natasha Johnson‐Richards  Go Digit All 
Nick Booth  Podnosh 
Nick Dickens  Prisons ICT Academy 
Peter Bailey  Big LoRery Fund 
Simon Berry  ex‐RuralNet 
Simon Blake  New Philanthropy Capital 
Stephen Dodson  DC10+ 
Stephen Kearney  High Trees Community Development Trust, Lambeth 
Steve Alcock  NFTE 
Steve Capes  Cambridge Library Learning Services 
Steve Thompson  Digital Villages 
Stuart Parker  We share stuﬀ 
Tim Davies  Youth Engagement Online 
Tom Gaskin   CounFng Cows/ UK Youth Work 
Will Davies  Researcher on social capital ‐ digital inclusion/ Podnosh 
Will Perrin  Talk About Local 
William Hoyle  Charity Technology Trust 
Yasrab Sharif  Moving IT Forward 


Feedback by young people
What technology inspires you?

  Young people living in deprived areas in Sandwell, Hackney & Southampton:
─  Mobile phones: iPhone, Blackberry Storm, etc.
─  GPS systems
─  iPod and music players
─  Gaming consoles: PSP, Xbox360, Wii


Academic reports & research
There are a few thinkers criticising the current debate around digital inclusion

  The Internet in Britain: 2007. Oxford Internet Institute. Bi-annual report that monitors
Internet usage patterns and reasons for not getting online

  A review of the current landscape of adult informal learning using digital technologies:
2009. Futurelab. Very recent overview of different initiatives and activities of informal
adult learning with technology in the UK

  Digital Divide: 2007. Futurelab. Focussing on the social dimensions of the digital divide
and the avoidance of technical solutions.

  Realising the potential of new technology? Assessing the legacy of New Labour’s ICT
agenda 1997-2007: 2008. Neil Selwyn. Oxford Review of Education

  Penceil project papers 2005-2006. Mike Cushman. London School of Economics.

  Aspiration and attainment amongst young people in deprived communities. Discussion
paper: 2008. Cabinet Office Social Exclusion Taskforce.


Key policy reports
There are two recent government reports that have received widespread attention in
the area of digital inclusion

Digital Britain Report (Lord Carter) Digital Inclusion Action Plan (2009)
  Interim report Jan ‘09, final report to published June ’09   Consultation report published in 2008, final report to be
driven by BERR and DCMS published mid- 2009
  Covers a broad range of topics including:
─  Next generation access networks   Driven by digital Inclusion Minister, but located
primarily in DCLG
─  Digital content and rights
─  Universal service obligation for broadband   More a thought piece about an extremely broad
─  Digital skills and media literacy definition of digital inclusion and less about actual
  Most of the political debate is around the first 3 areas action points or investment commitments
especially:
─  market-led approach in NGA infrastructure   Lists the range of initiatives that are already happening
investment and the role for operators, especially the Building Democracy Innovation Fund
and its investment in MySociety projects
─  digital TV and radio switch-over
─  creation of a new Rights Agency to protect
  Digital Champion, Charter for Digital Inclusion, expert
copyright online taskforce and cross-government coordination team
─  merger of public service broadcasters suggested
─  2 Mb/s universal service commitment
  Digital Inclusion and literacy play a smaller role:
─  digital life, work and economy skills
─  National Media Literacy Plan


Research by UK Online Centres
UK Online Centres has been publishing a range of externally commissioned research
to make the case for its effectiveness and ongoing funding

  Reply to DIUS informal learning consultation 2008 especially annexes. Maps the
experiences and learning journeys of different UK Online Centre users, but highlights the
challenge for funding.

  Digital inclusion, social impact: a research study. 2008 by Ipsos Mori. Analysis of the 20
Social Impact Demonstrator projects across different type of Centres.

  Does the Internet improve lives? 2009. Research report based on focus groups of Internet
users and non-users. Non-users split equally in Digitally Excluded and Rejectors.
Rejectors tend to be better integrated into their local communities than Excluded.


Evaluation of UK Online Centres
Evaluation shows that community and voluntary organisations are the most effective
UK Online Centres, but public e-service delivery is increasingly demanded

  Connecting the Countryside: An evaluation of Capital Modernisation Funded UK online
centres in rural areas: 2004. Recommends decentralised approach to rural centres and
highlighted innovative approaches to revenue generation.

  Evaluation of CMF funded UK online centres - final report: 2003. Hall Aitken. Overall
report assessing UK Online Centres that concluded that community and voluntary sector
UK Online Centres (45% of all UK Online Centers) are more effective in addressing the
most excluded groups.

  The future of community-based UK online centres – Discussion paper to DfES. Direct
Support: 2002. Focussed on the strength of community based UK Online Centres.

  Service transformation - a better service for citizens and businesses, a better deal for
taxpayers. 2006 by Sir David Varney. Focussed attention on public service delivery
through UK Online Centers.

  Government on the Internet: progress in delivering information and services online. 2007
National Audit Office. Recommends to use UK Online Centres more directly for the
delivery of an e-government agenda.

Annex 2
Digital and social exclusion landscape


Internet access UK
More than 2/3 of households are accessing the Internet at home. There is a
significant difference between different regions

Households with Internet access Households with Internet access by region
%, Great Britain %, Great Britain
74% 73%
70% 65% 70%
61% 70% 67% 67%
60% 57% 62% 61% 61% 61%
55%
50% 51% 60% 56% 56%
54%
50% 46%
50%
40%
40%
30% 30%
20% 20%

10% 10%

0% 0%
2002 2003 2004 2005 2006 2007 2008 2008

South East London East of England
South West Wales Yorks & Humber
East Midlands West Midlands Scotland
Source: Office of National Statistics 2008 North West NI North East


Internet non-usage
Lack of interest and no need are becoming more important factors for non-Internet
usage which lack of skills are less important

Reasons of household for no Internet
% of non-Internet users

Access to Internet elsewhere

Access costs too high   Internet adoption is
flattening out and
Lack of skills non-users are late or
Equipment costs too high
non-adopters

Don't want Internet

Don't need Internet

0% 5% 10% 15% 20% 25% 30% 35% 40%

2006 2008



Place of Internet access
Only a small minority access the Internet through public access spaces like Internet
cafes and libraries

Reasons of household for no Internet
% of non-Internet users, multiple answers allowed

Home
Place of work
  Individual access
Another person's home
continues to grow in
Place of education importance
Public library
Internet cafe
Hotspot (wifi)
At another place

0% 20% 40% 60% 80% 100%

2006 2007 2008



Technology adoption curve
The UK has only few late adopters left

Technology adoption

Cumula&ve    Adoption of new technologies typically
Adop&ons 
takes time and follows the shape of an
m 
S-curve
UK Internet adoption   Ceiling penetration is defined by
addressable market (m) estimate,
considering, affordability analysis and
Brazil Internet adoption covered population
  Adoption curve based on coefficient of
innovation and imitation

Time 


Mapping digital exclusion
There are a few academic and commercial institutions that have developed maps for
different levels of e-inclusion

  University College London - e-society profiler based on 2007 Experian data:
─  E-unengaged
─  E-marginalised
─  Becoming Engaged
─  Entertainment and Shopping
─  E-independents
─  Instrumental E-users
─  E-business users
─  E-experts

  UCL – London profiler for social and digital exclusion in London
  “Social and Digital Geographies of Great Britain” by the Digiteam at the Department
of Communities and Local Government

For reference see links on blog: http://cdiukfeasibility.wordpress.com/2009/06/16/e-society-maps/


E-society maps Group A: E-unengaged
Parallel to the age structure of different regions the E-unengaged are located
primarily in the North of England

  The ‘E – unengaged’ are typically groups that do
not have access to electronic communications or
technologies. Most are too old, too poor or too
poorly educated to be able to access them, and
instead traditionally rely upon personal contacts
they trust for advice. Within this Group there are
low levels of literacy and many people do not
feel that their life outcomes are much subject to
their own decisions.

  Members of this Group tend to live in the poorer
areas of traditional mining and manufacturing
towns and to have conservative social attitudes.
A high proportion of the Group is made up of
elderly people, many of whom live in social
housing or sheltered accommodation.

Source: e-Society Profiler CASA/ Experian 2006

E-society maps Group B: E-marginalised
E-marginalised groups tend to be younger, but very much concentrated in urban and
per-urban contexts

  The ‘E – marginalised’ are not necessarily
averse to the use of electronic technologies but
often lack the disposable income to equip
themselves with them, or the training and
education needed to understand how to make
effective use of them.

  Many members of this Group are relatively
unskilled young workers, many of whom are in
manual occupations. Many also live in low rise
council estates, in areas of high unemployment,
low incomes and where people are reliant upon
public services.

Source: e‐Society Proﬁler CASA/ Experian 2006 

E-society maps Other groups
E-experts tend to be concentrated in the South-East

Group C:  Group D:   Group E:                       
Group F:  Group F:   Group H:  
Becoming  E for  E‐independents  Instrumental E‐ E‐business users  E‐experts 
engaged  entertainment  users 
and shopping 

Source: e‐Society Proﬁler CASA/ Experian 2006 
For more information see links on blog: http://cdiukfeasibility.wordpress.com/2009/06/16/e-society-maps/

E-society maps London
Marginalised and expert users are living very close to each other in London

  There is not one
concentrated
geographical area in
London, where people
are systematically
digitally excluded

Source: London Proﬁler 2008/9 

Index of Multiple Deprivation London
Areas of deprivation are larger than areas of e-marginalised groups

  There are geographical
areas in the South, East
and West of London
which support from
multiple deprivation

Source: London Proﬁler 2008/9 


Mobile broadband & mobile apps
New mobile technologies are most used and known by the well-off and young

UK Take-up of mobile broadband Q1 ‘09 Public awareness mobile app stores
% %
30% 60%
52%
25% 50%
45%

20% 19% 40%

30%
15% 30%
12%

10% 20% 18%
8% 8%

5% 10%

0% 0%
AB C1 C2 DE Aged 18-24 Aged 25-34 Aged 35-44 Aged 45-54
Socio-economic group
app stores all

Source: Ofcom The Communications Market Report 2009

Annex 3
Position in digital inclusion process


Mapping players & activities
In order to get a full picture of organisations competing in the area different sectors
and activities need to be taken into consideration

Sector type CDI Community domains
  Public sector   Access to technology
─  local authorities, government ─  new or refurbished computers
departments, QUANGOs) ─  connectivity & support
  Third sector/ social enterprises ─  special access equipment
─  charities, community interest   IT skills & training
companies, community initiatives ─  Face-to-face or remote courses
  Private sector
─  Formal & informal learning
─  SMEs or large for-profit companies
  Community development & social focus
─  Using technology for a social aim
  Entrepreneurship
─  Support to set-up own initiatives

A market map needs to take into account CDI’s approach to citizenship and technology
education which broadens the competitive space even further


Digital inclusion players by sector
There is a wide range of different players working on the topic of digital inclusion

  Third sector and
government initiatives
dominate the digital
inclusion sector
Digital    Academics often play a key
Unite  
role in action research as
well as social media
BECTA  initiatives
Cisco    Social media and
Fujitsu 
Services   
community reporting are
BT 
growing
Microsoi Digital 
Literacy curriculum 


CDI UK Feasibility Study 2009 - Digital Inclusion Research

CDI UK Feasibility Study 2009 - Digital Inclusion Research

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