Kentaro Toyama

1
Fieldwork and AnalogiesIn Emerging Markets
Research

• Kentaro Toyama
• Microsoft Research India
• March 13, 2008

2
Outline

• Introduction
• Fieldwork to Resolve Contradictions
• Analogies for Intuition

3
Multidisciplinary Research
Society
Society
Group
Group
Impact
Impact
Understanding
Understanding
Individual
Individual
Technology
Technology
Innovation
Innovation
4
Rural Microfinance and IT
Rural Kiosk Entrepreneurs
Sample Projects
Can computers help existing structures for rural
microfinance?
Study on the challenges and uniqueness of rural
kiosk entrepreneurs
MSR India TEM
Aishwarya Lakshmi Ratan Associate Researcher
Nimmi Rangaswamy Associate Researcher
MultiPoint
Computers in Agriculture
Digital Study Hall
Experiments with computing and communication
systems in agriculture
DVD exchange over postal service and TVs as
display for rural education
Multiple mice to multiply the value of PCs in
schools.
Udai Singh Pawar Assistant Researcher
Randy Wang Researcher
Rikin Gandhi Assistant Researcher
Text-Free UI
Government and Kiosks
IT and Microentrepreneurs
UIs without text for users who are illliterate
and may never have seen a computer before
The states role in rural kiosk projects, with a
focus on Kerala and Andhra
Information ecology of small businesses in
developing markets
Indrani Medhi Assistant Researcher
Jonathan Donner Researcher
Renee Kuriyan Research Intern
5
TEM Geography
- Projects studied
- TEM projects
6
Fieldwork to Resolve Contradictions
7
Resistance to Technology

• Many factors inhibit use of technology
• High cost
• Reluctance to depart from habits and traditions
• Fear of breaking technology
• Lack of awareness of technologys functional
  value
• Barriers of education or literacy

A child trying to explain to her mother what is
on a laptop screen.
8
But, Computers have Glamour

• Examples of interest in computing technology
• Retention rates at schools rise when the school
  has PCs.
• Rural PC kiosk owners see a rise in their
  confidence and status in community.
• Office service staff eager to learn about PCs and
  how to use them.
• These examples have little to do with computer
  function.

A kiosk operator running a near Tiruvallur, Tamil
Nadu
9
Poverty is Systemic

• Stable system makes escape difficult
• Lack of money means lack of time to do anything
  other than survive.
• Lack of time means less time for education.
• Lack of education means fewer job opportunities.
• Lack of job opportunities means lack of money.
• Shocks to household create downward spiral, and
  there are always shocks
• Health problem requires loan
• Loan incurs interest
• Interest payments prevent capital accumulation

A government-sponsored mid-day meal in a Tamil
Nadu school.
10
But, Households still Functional

• Good enough solutions exist
• Credit All kinds of loans available
• Healthcare Traditional medicines, primary
  healthcare services
• Agriculture information agriculture extension,
  word of mouth, salesmen

A kiosk operator running a near Tiruvallur, Tamil
Nadu
11
Cheap Alternatives to PC Functionality
PC/Internet capability BOP Alternative BOP Cost (US per hour)
Search for information Social networks Free
Health information Government health clinic Free
Agriculture information Government agricultural extension Free
Accounting Notebook and calculator 0.01
Data exchange Bicycle (local 10 kms, few hours) 0.10
Entertainment Movie in a theatre 0.10
Music CD player buying pirated CDs (MP3) 0.12
News TV cable 0.12
Education Private school in Bangalore 0.12
PC/internet access 1 hour in an Internet café 0.25
Voice communication Public pay/ mobile phone to mobile/landline 1.50
11
(For total talk time, 0.10 -- 0.50?)
Figures are for typical costs in urban India.
12
Persistent Lack of Money

• Bangalore guideline for 45 minutes of housework a
  day Rs. 150 (US3) per month!
• Typical daily wage for agricultural labor Rs. 60
  per day (US1.33 Rs. 30 for women)
• Public-school teachers salary varies from Rs.
  3000 to Rs. 8000 (US67-178) per month.

Teachers on a school trip in Karnataka
13
But, Willingness to Spend

• Luxury and aspirational consumption not unusual
• Weddings costing Rs. 1 lakh (US2200) in rural
  villages not infrequent (cf., avg. per capita GDP
  of US700)
• Mobile phone ring tones popular even at Rs. 10
  (US0.20) per song
• Photography services to enhance photos popular.
  Cost range from Rs. 100 to Rs. 600 (US2-12)

A Photoshoped photo of a village bride
(Maharashtra)
14
Information is Critical

• General lack of information hampers quality of
  life
• Hygiene and healthcare knowledge shallow or
  superstitious
• Poor fundamental and vocational education impedes
  career growth
• Very practical knowledge not readily available
• Government schemes for the poor
• Job information
• Value of savings and investment

A 12-year-old enrolled in typing lessons at a
rural PC kiosk
15
But, Information not the Bottleneck

• Access to information not the problem
• Physical transfer of goods/cash often required.
  Transport infrastructure is poor.
• Levels of formal education very low, even with
  literacy. Education required to distinguish good
  information from bad.
• Other factors
• No faith in information source
• Lack of time or money
• Rigid mindsets

A petty shop owner in Tamil Nadu
16
Computing Needs Minimal

• Information processing rarely required
• Little use of documents, charts, spreadsheets.
• Paper , pen, and manual calculation difficult to
  out-do
• Low cost
• Lightweight, durable
• Additional training not required

17
But, Technology can Help!

• To draw interest of community.
• To process and analyze aggregate data.
• To streamline or improve existing processes.

Focus group on a potential technology-for-agricult
ure project
18
Fieldwork Resolves Contradictions

• Issues that are contradictory in the abstract,
  often resolve up close
• Resistance to new technology
• But computers have glamour
• Poverty systemic and multi-dimensional
• But households functional
• Stark lack of money
• But willing to spend
• Information critical
• But rarely the bottleneck
• Computing needs are minimal
• But there are opportunities!

19
Analogies for Intuition
20
For-Profit for Non-Profit?
The importance of branding in serving food
Four-star restaurants brand themselves one way,
and serve a particular clientele.
Soup kitchens brand themselves another way and
serve a different kind of community.
Its difficult to serve both client groups in one
physical location.
21
More Power Isnt Always Better

• Is a helicopter the best option for commuting to
  school?
• High up-front cost
• High operating costs
• Limited infrastructure
• Requires training to operate
• Requires professional maintenance
• Not necessarily, despite
• Great PR Rural girl makes village proud by
  becoming a helicopter pilot.

22
More Power Isnt Always Better

• Is a PC the best option for village information
  access?
• High up-front cost
• High operating costs
• Limited infrastructure
• Requires training to operate
• Requires professional maintenance
• Not necessarily, despite
• Great PR Proud owner of village PC kiosk saves
  3000 okra crop.

ltgt
23
Whats Good Enough?
If you wanted this, at 20K but couldnt afford
it
Would you buy this at 10K?
And, what about this, at 3K?
24
Summary

• Introduction
• Fieldwork to Resolve Contradictions
• Analogies for Intuition

25

• Thanks!
• kentoy_at_microsoft.com