Inclusive Technology Solutions And Challenges Examples from BIF and IAP

Transcription

1 Innovations Against Poverty Inclusive Technology Solutions And Challenges Examples from BIF and IAP IFC s Inclusive Business Leaders Forum September 22 nd, 2011 Inclusive Technology Solutions Contact: enquiries@buisnessinnovationfacility.org or info@innovationsagainstpoverty.org or visit:

2 Knowledge Exchange platform: the Practitioner Hub; BIF and IAP Program Countries of focus Business Innovation Facility (BIF) Operates in 5 pilot countries (India, Bangladesh, Zambia, Malawi and Nigeria) Innovations Against Poverty (IAP) Companies that operate in the least developed countries and low income countries Support provided Eligibilty Portfolio Advisory support and facilitation; signposting and knowledge exchange Commercial viability, innovation, development contribution, cost sharing commitments 18 projects approved so far, either operational or in contracting. Largest cluster: agribusiness Provides small (up to 20,000 Euros) and large grants (up to 200,000 Euros), on cost-sharing basis 8 eligibility criteria focused on commercial viability, innovativeness, development effects and cost sharing commitments 12 projects approved so far, 11 at final selection stage Largest cluster: clean energy

3 3 types of technology projects BOP products/services for mobile or webbased platforms 1 Farming support & gronomic info (India), weather forecast (Ghana), curriculum content (Zambia), Hardware; clean technology Other IB projects incorporating e-solutions for transacting data or money 2 3 Solar lantern with mobile charger (Zambia); efficient biofuel stove (India), affordable LPG stove (Nigeria), micro-hydro power (Malawi), water pump, water filter (tbc) Rural health services, ultrasound, water pump maintenance

4 BoP products using mobile data for transacting information or finance BOP products/services for mobile or webbased platforms Hardware; clean technology Paperwork, groundnut warehouse, Malawi Payment for water, Kenya But..are there sufficient resources and economies of scale to make the transition from paper to mobile viable? BIF and IAP are supporting projects particularly in health that are piloting e-approaches.

5 Hardware solutions Drivers/opportunities BOP products/services for mobile or webbased Technology is more affordable platforms Progress w innovative consumer finance: Hardware; eg micro-finance clean for solar lanterns technology & stoves. Carbon credits could transforms viability and market size. Challenges Upfront purchase cost still exclusionary for many Pricepoint is just the start: need high value to consumer. Need to out-perform competitors but also collaborate to extend the market eco-system Carbon credit needs scale and patience. BIF is helping Oando (Nigeria) to collaborate with other energy sector players, to sensitize consumers and develop the BoP market and eco-system for LPG stoves.

6 Mobile-based and web-based services to BoP mkrishi (BIF, India) Ignitia (IAP, Ghana) ischool (BIF Zambia) Personalised & interactive agronomic advice for (illiterate) farmers via mobile phones. Weather forecasting via mobile phones Internet-based school curriculum, laptops and teacher training Hardware; clean technology Other IB projects incorporating e-solutions for transacting data or money Opportunities/drivers Rapid growth of mobile phone usage Reach to rural and unbanked markets First-mover advantage Potential for productivity growth amongst users to leap-frog forwards

7 The challenges are not technical Will it reach viability and scale?? Hardware; clean technology How strong is the product? What distribution Other IB projects channel works incorporating e-solutions across the last for transacting data or mile money What will consumers value and pay? Will size of market match scale of investment; how long to reach the tipping point?

8 Considerations Stand-alone or bundled? Software & hardware? How different from the competition? Clear value Hardware; clean technology proposition? The product Consumer Willingness to pay? Need for consumer sensitisation? Need for training to use the product? Is the customer the user? Existing network? Village entrepreneur/fran chise? Own network? Distribution channel

9 Need to work through the options For example: assessing the distribution model for the last mile Will a franchise system work? Will the transaction costs and capital expenditure be too high to motivate franchisee? Will it be a major business (thus high risk) for the franchisee? Or minor add-on (so may be neglected). What Hardware; if product clean is seasonal but franchisee needs smooth income? Is technology there flexibility to add on complementary products in future? Is the model replicable to different places? Does the distributor need technical skills, training of customers or servicing products? How much investment is needed to set up the model, delaying time-tomarket? A number of BIF projects in India are receiving support to assess or re-assess their last mile distribution channels, so as to build viability.

10 Making it all add up for technology ibiz The key trade-off Development costs of technology, market network, and partnerships vs. Time to get product to market Time to get product to scale Various solutions Setting up systems with partners and distributors so each can balance risk, effort and reward. Multiple revenue sources: supplement B2C with B2B Capture payments if social benefits exceed commercial return: donor investment, impact investment, clean/green funds BIF support for ischool explored multiple sources of revenue, including from other countries, donors, and options for schools to self-finance via selling on internet access. IAP and BIF support are themselves a recognition by donors of the potential social benefits of these businesses. They can also help the company move on to leverage other concessional or green finance.

11 Thank you! Questions? Caroline Ashley, BIF and IAP Learning and Results Manager, Ellen Carey, BIF and IAP, Programme Manager, PwC, For the latest news on the Business Innovation Facility (BIF) and Innovations Against Poverty (IAP) and up-to-date information on inclusive business, join the Practitioner Hub at For BIF specific inquires and comments please contact: For IAP specific inquiries and comments please contact: