Fieldwork and Analogies In Emerging Markets Research Kentaro

Fieldwork and Analogies In Emerging Markets Research Kentaro Toyama Microsoft Research India March 13, 2008

Outline Introduction Fieldwork to Resolve Contradictions Analogies for Intuition

Multidisciplinary Research Aishwarya Lakshmi Ratan – Society Jonathan Donner – Communications Nimmi Rangaswamy Impact Understanding Group International Development Public Administration and – Social Anthropology Indrani Medhi – Design Kentaro Toyama (Group Lead) Individual – Computer Science Randy Wang – Technology Computer Science Paul Javid – Innovation Computer Science Saurabh Panjwani – Computer Science Rikin Gandhi – Astrophysics

Sample Projects Rural Microfinance and IT Can computers help existing structures for rural microfinance? MSR India: TEM Computers in Agriculture Rural Kiosk Entrepreneurs Study on the challenges and uniqueness of rural kiosk entrepreneurs Aishwarya Lakshmi Ratan Associate Researcher Nimmi Rangaswamy Associate Researcher Multi. Point 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. Rikin Gandhi Assistant Researcher Udai Singh Pawar Assistant Researcher Randy Wang Researcher Government and Kiosks Text-Free UI IT and Microentrepreneurs The state’s role in rural kiosk projects, with a focus on Kerala and Andhra Renee Kuriyan Research Intern UIs without text for users who are illliterate and may never have seen a computer before Indrani Medhi Assistant Researcher Information ecology of small businesses in developing markets Jonathan Donner Researcher

TEM Geography - Projects studied - TEM projects

Fieldwork to Resolve Contradictions

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 technology’s functional value • Barriers of education or literacy A child trying to explain to her mother what is on a laptop screen.

But, Computers have Glamour Examples of interest in computing technology: A kiosk operator running a near Tiruvallur, Tamil Nadu • 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.

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 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.

But, Households still Functional “Good enough” solutions exist: • Credit: All kinds of loans available • Healthcare: Traditional medicines, primary healthcare services A kiosk operator running a near Tiruvallur, Tamil Nadu • Agriculture information: agriculture extension, word of mouth, salesmen

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 (MP 3) 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. 5011 (For total talk time, 0. 10 -- 0. 50? ) Figures are for typical costs in urban India.

Persistent Lack of Money… Bangalore guideline for 45 minutes of housework a day: Rs. 150 (US$3)… per month! Typical daily wage for agricultural labor: Rs. 60 per day (US$1. 33; Rs. 30 for women) Public-school teacher’s salary varies from Rs. 3000 to Rs. 8000 (US$67 -178) per month. Teachers on a school trip in Karnataka

But, Willingness to Spend Luxury and aspirational consumption not unusual: • Weddings costing Rs. 1 lakh (US$2200) in rural villages not infrequent (cf. , avg. per capita GDP of ~US$700) • Mobile phone ring tones popular even at Rs. 10 (US$0. 20) per song A Photoshop’ed photo of a village bride (Maharashtra) • Photography services to “enhance” photos popular. Cost range from Rs. 100 to Rs. 600 (US$2 -12)

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

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… A petty shop owner in Tamil Nadu – No faith in information source – Lack of time or money – Rigid mindsets

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

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-agriculture project

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!

Analogies for Intuition

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. It’s difficult to serve both client groups in one physical location.

More Power Isn’t 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. ”

More Power Isn’t 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. ”

What’s “Good Enough”? If you wanted this, at $20 K but couldn’t afford it… Would you buy this at $10 K? And, what about this, at $3 K?

Summary Introduction Fieldwork to Resolve Contradictions Analogies for Intuition

Thanks! kentoy@microsoft. com