Mobile Apps for Development

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Presentation at the Business Growth Initiative on the potential of mobile apps as a micro-enterprise tool.

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Mobile Apps for Development

  1. 1. mApps4D: Harnessingthe Smartphonefor Development<br />Discussion @ Business Growth Initiative3 June 2010<br />Steve Schmida: SSG Advisors<br />Darrell Owen: Owen&Owen<br />
  2. 2. mApps4D: Challenge & Opportunity<br /><ul><li>Mobile Sector Market Dynamics
  3. 3. The Mobile Apps Entrepreneur
  4. 4. Public Private Alliances
  5. 5. Open Discussion </li></li></ul><li>mApps4D: Questions for the Morning<br /><ul><li>To what extent is USAID utilizing mobile applications in any of its SME development programs already? Are there countries or regions where a mobile apps-driven strategy makes more sense?
  6. 6. What types of mobile applications might be most in demand in the markets where USAID is promoting entrepreneurship?
  7. 7. What are the additional pitfalls and risks of a mobile applications SME/Micro-enterprise strategy (IPR, lack of collateral for loans, payment risk, etc)?</li></li></ul><li>mApps4D: Challenge & Opportunity<br /><ul><li>Mobile Sector Market Dynamics
  8. 8. The Mobile Apps Entrepreneur
  9. 9. Public Private Alliances
  10. 10. Open Discussion </li></li></ul><li>mApps4D: Telecom Market Dynamics<br />WB’s ICT4D – Extending Reach & Increasing Impact <br />ITU’s Measuring the Information Society 2010<br />
  11. 11. mApps4D: Fixed & Mobile Internet<br />http://www.itu.int/ITU-D/ict/publications/idi/2010/Material/EMBARGO2%20couv%20ICT%20dev%20index2009%20sans%20sap.pdf<br />
  12. 12. mApps4D: Accelerated Adoption<br />Source: Morgan Stanley - 12 Apr 2010 – Mary Meeker, Scott Devitt & Liang Wu<br />
  13. 13. mApps4D: Reaching 3G Tipping Point<br />
  14. 14. mApps4D: It’s about the Apps!<br />
  15. 15. mApps4D: mApps Content/Use<br />
  16. 16. mApps4D: Social Networking<br />
  17. 17. Mobile Apps: An Exploding Opportunity<br /><ul><li>Smart phones now marketed in 96 countries (50 million devices)
  18. 18. More than 200k apps available
  19. 19. iPhone leads, but Android closing fast
  20. 20. Average app sales: 100k in 260 days*
  21. 21. Median sales price: .99
  22. 22. Average Development Cost: $6400
  23. 23. Substantial ROI</li></ul>Source: Techcrunch.com<br />
  24. 24. Why Smartphones are poised to take off in developing countries<br />Handset unit prices expected to drop to $50 in 2010<br />Payments system already in place (pre-paid, post-paid)<br />Smartphones will be the sign of middle class attainment for the next decade.<br />3G experiencing high double and triple digit growth in Rwanda, Cambodia, Philippines, Vietnam (gigaom.com).<br />http://papr.intel-research.net/intel-papr-reassessing-ictd.pdf<br />
  25. 25. mApps4D: Challenge & Opportunity<br /><ul><li>Mobile Sector Market Dynamics
  26. 26. The Mobile App Entrepreneur
  27. 27. Exploring the Feasibility
  28. 28. Open Discussion </li></li></ul><li>Typical Challenges Facing an Entrepreneur<br /><ul><li>Access to Capital
  29. 29. Marketing
  30. 30. Distribution
  31. 31. Difficulty Getting Paid
  32. 32. Low growth prospects</li></ul>The Promiseof Mobile Apps<br /><ul><li>High growth potential
  33. 33. low technical barriers to entry
  34. 34. Instant market access
  35. 35. Existing payments infrastructure
  36. 36. Recurring revenue stream
  37. 37. Global Tech, Local Markets</li></ul>Entrepreneur: Challenges & Opportunities<br />
  38. 38. Input Requirements<br /><ul><li>Trained IT entrepreneur
  39. 39. 1 Net Top PC and Printer with Broadband
  40. 40. 2 3G smart phones
  41. 41. Work space with electricity
  42. 42. Access to Apps Store Environment</li></ul>Operating Assumptions<br /><ul><li>Entrepreneur produces 6 apps/year
  43. 43. Average 220 sales/app/month for 8 months
  44. 44. Gross from each sale $.31 (factors in apps store take)
  45. 45. Entrepreneur takes $800 loan @25% for 24 months for both cap ex and working capital</li></ul>Apps Entrepreneur: Requirements-Assumptions<br />
  46. 46. Back-of-the-Napkin Numbers<br /><ul><li>Cash flow positive by month 5
  47. 47. Net income of $200/month by month 10
  48. 48. Break even in less than 2 years
  49. 49. Does not include additional benefits of 3G and Broadband access</li></li></ul><li>18<br />End Users<br />Banks/ MFIs<br />Investors<br />Apps <br />Entrepreneur<br />Handset OEMs<br />Mobile Carriers<br />(MTN, Vodacom)<br />Diaspora<br />OS Firms (Google, MS)<br />Donors<br />Government<br />Retail<br />Think Tanks<br />Mobile Apps Entrepreneur Cluster <br />Training Institutions<br />
  50. 50. mApps4D: Challenge & Opportunity<br /><ul><li>Mobile Sector Market Dynamics
  51. 51. The Mobile Apps Entrepreneur
  52. 52. Public Private Alliances
  53. 53. Open Discussion </li></li></ul><li>Alliances: Shared Interests<br />Shared Interest:<br />Rapid growth of mobile applications developer firms servicing local, regional and national markets.<br />Industry business objective:<br />Increased 3G handset and connectivity sales.<br />Donor/Host Country Objective:<br />Increased employment and income through Micro/SME Development<br />Graphic courtesy USAID’s ODP/PSA<br />
  54. 54. Alliances: Resources<br />Thousands of new entrepreneurs producing content/services and generating income over 3G networks<br />Industry<br />IT Training<br />SDK<br />Apps Store<br />Marketing<br />Discounts<br />Donor/H-C Government<br />Access to finance<br />BDS<br />Content<br />Network investment<br />
  55. 55. mApps4D: Questions for the Morning<br /><ul><li>To what extent is USAID utilizing mobile applications in any of its SME development programs already? Are there countries or regions where a mobile apps-driven strategy makes more sense?
  56. 56. What types of mobile applications might be most in demand in the markets where USAID is promoting entrepreneurship?
  57. 57. What are the additional pitfalls and risks of a mobile applications SME/Micro-enterprise strategy (IPR, lack of collateral for loans, payment risk, etc)?</li></li></ul><li>mApps4D: Pursuing the Opportunities<br />Comments-Discussion<br />
  58. 58. mApps4D: Backup Slides<br />
  59. 59. mApps4D: Mobile & Internet<br />
  60. 60. mApps4D: Fixed & Mobile Internet<br />
  61. 61. mApps4D: Accelerated Adoption<br />
  62. 62. mApps4D: Handsets and OpSystem<br />
  63. 63. mApps4D: mApps Content/Use<br />
  64. 64. mApps4D: mApps & Cloud Computing<br />
  65. 65. mApps4D: Types-Numbers of mApps<br />
  66. 66. mApps4D: Really…it’s the Apps!<br />
  67. 67. mApps4D: Social Networking is Global <br />

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