Kentaro Toyama Microsoft Research India March 13, 2008

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. Aishwarya Lakshmi Ratan – International Development Public Administration and Jonathan Donner – Communications Nimmi Rangaswamy – Social Anthropology Indrani Medhi – Design Kentaro Toyama (Group Lead) Computer Science – Randy Wang Computer Science – Paul Javid – Computer Science Saurabh Panjwani – Computer Science Rikin Gandhi – Astrophysics 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 Rikin Gandhi Assistant Researcher Randy Wang 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 state’s 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 technology’s 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 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 (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

13. 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 • Photography services to “enhance” photos popular. Cost range from Rs. 100 to Rs. 600 (US$2-12) A Photoshop’ed 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-agriculture 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. It’s difficult to serve both client groups in one physical location.

21. 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

22. 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.” More Power Isn’t Always Better <>

23. What’s “Good Enough”? If you wanted this, at $20K but couldn’t 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@microsoft.com