Designing and Implementing Sustainable ICT Projects
USAID Regional ICT Innovations Workshop; June 6, 2012
Lisa Kienzle
Grameen Foundation AppLab has a history of
scaling sustainable ICT solutions in East Africa




 Grameen    Village   Google              AppLab
                                 CKW
  Phone     Phone      SMS                Money
AppLab’s approach to developing innovative
 social enterprises involves designing for
sustainability – in both the programs and
       also the products we develop
Sustainable ICT PROGRAMS
                                             CKWs
                      (Community Knowledge Workers)
The model: information delivery to rural farmers
  Partners                       CKWs                         Farmers
 Public & Private
  Development
  Stakeholders




                     CKWs use mobile phones to share      Cross-subsidization
Better serve our    information with smallholders, and   from data collection
partners needs         collect information via mobile     allows farmer info
                                   surveys                services to be free
The program was designed for sustainability
form 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
After two years, we’ve achieved fast growth and
achieved partial sustainability
         799                                67,900
                CKWs                            Farmers Registered

9,000   Villages                                     30%
        Reached        19       Districts
                                                           Female

                                        38+7   Crops &
                40%                            Animals
                       Repeat
                       Usage

898,000                                         50%
            Total                                      Sustainability
        Interactions
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-percentage
measured by 6 given questions, CKWs increase   point difference in maize price increases received
       farmers’ knowledge by ~17%                         vs. non-CKW-served farmers
Sustainable ICT PRODUCTS
                              AppLab Money Incubator
                     (mobile money product innovation)
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
                                                                                            Payments
Source: GSMA deployment tracker, November 2011.
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
Our solution addresses the challenges we see in
driving 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
We focused on designing an innovation process
that 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
A considerable part of product innovation is
 business model innovation
Illustrative
Bus 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?
Sustainable ICT Projects
                                 Learnings on Program and
                           Product Design and Development
What it all means: Learnings from our work in
sustainable 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

Designing and Implementing Sustainable ICT Projects

  • 1.
    Designing and ImplementingSustainable ICT Projects USAID Regional ICT Innovations Workshop; June 6, 2012 Lisa Kienzle
  • 2.
    Grameen Foundation AppLabhas a history of scaling sustainable ICT solutions in East Africa Grameen Village Google AppLab CKW Phone Phone SMS Money
  • 3.
    AppLab’s approach todeveloping innovative social enterprises involves designing for sustainability – in both the programs and also the products we develop
  • 4.
    Sustainable ICT PROGRAMS CKWs (Community Knowledge Workers)
  • 5.
    The model: informationdelivery to rural farmers Partners CKWs Farmers Public & Private Development Stakeholders CKWs use mobile phones to share Cross-subsidization Better serve our information with smallholders, and from data collection partners needs collect information via mobile allows farmer info surveys services to be free
  • 6.
    The program wasdesigned for sustainability form 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.
    After two years,we’ve achieved fast growth and achieved partial sustainability 799 67,900 CKWs Farmers Registered 9,000 Villages 30% Reached 19 Districts Female 38+7 Crops & 40% Animals Repeat Usage 898,000 50% Total Sustainability Interactions
  • 8.
    An IFPRI studyshowed 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-percentage measured by 6 given questions, CKWs increase point difference in maize price increases received farmers’ knowledge by ~17% vs. non-CKW-served farmers
  • 9.
    Sustainable ICT PRODUCTS AppLab Money Incubator (mobile money product innovation)
  • 10.
    The problem: significantMM 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 Payments Source: GSMA deployment tracker, November 2011.
  • 11.
    So why aren’twe 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.
    Our solution addressesthe challenges we see in driving 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.
    We focused ondesigning an innovation process that 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.
    A considerable partof product innovation is business model innovation Illustrative Bus 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.
    Sustainable ICT Projects Learnings on Program and Product Design and Development
  • 16.
    What it allmeans: Learnings from our work in sustainable 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