EECS 294-12 An Information and Communications Technology (ICT) Framework for Developing RegionsLogistics and Other Practical StuffValue Creation in Product DevelopmentSlide 4‘The Bottom of the Pyramid’The Bottom: A Brief DescriptionGrowth in Megacities—An Urban FutureExample: An Emerging Market—IndiaThe Bottom: Not the Same EverywhereExample: India—Many Price PointsExample: India—Digital Photography “Pyramid”PowerPoint PresentationICT4B—Hypothesis 1:ICT4B—Hypothesis 2:ICT4B—The Big PictureICT4B—Hypothesis 3:“The Digital Provide” Global Information Technology Report 2001-2002: Readiness for the Networked World (http://www.weforum.org)Tangible Economic Benefits of ICT4BEconomic Benefits and ApplicationsExample: ICT for Improving Market EfficienciesSlide 21ICT Empowers Women“The Digital Provide”Social Benefits and ApplicationsSlide 25Health Benefits and ApplicationsExample: Health benefits of ICT—River BlindnessBut ICT not just VOIP, Computers and Internet…ICT4B—We are Studying Five Main Application AreasICT4B—Hypothesis 4:Disruptive Business Models & ImplementationExample: Grameen Bank—BangladeshGrameen Telecom A Disruptive Societal-Scale Business ModelSlide 34So Why Now?ICT4B—Hypothesis 5:Novel TechnologyWhat’s the Right Physical Network Architecture?Three Layer Architecture VisionExploiting 802.11 and 802.16, and Perhaps other Wireless TechnologiesDevicesLow-cost InfrastructureNovel Deployment & SupportSummaryReading for Week 2EECS 294-12EECS 294-12An Information and Communications An Information and Communications Technology (ICT)Technology (ICT)Framework for Developing RegionsFramework for Developing Regions Berkeley:Berkeley:Professor Eric Brewer, EECSProfessor Eric Brewer, EECSTom Kalil, Special Assistant to the ChancellorTom Kalil, Special Assistant to the ChancellorProfessor Richard Newton, Dean of the College of EngineeringProfessor Richard Newton, Dean of the College of EngineeringCMU:CMU:Rahul Tongia, Institute For Software Research InternationalRahul Tongia, Institute For Software Research InternationalM. Bernardine Dias, Robotics InstituteM. Bernardine Dias, Robotics InstituteProf. Raj Reddy, Robotics Institute/Computer ScienceProf. Raj Reddy, Robotics Institute/Computer ScienceLogistics and Other Practical StuffLogistics and Other Practical StuffEECS 294-12 (will be cross-listed at Haas for business students), 3 EECS 294-12 (will be cross-listed at Haas for business students), 3 unitsunitsProject, 60%; Homework 20%; Class participation 20% of final Project, 60%; Homework 20%; Class participation 20% of final gradegradeWritten project with oral project review in last two weeks of semesterWritten project with oral project review in last two weeks of semesterTypical class format: 1 hr of lecture, 1 hr of discussion (3Typical class format: 1 hr of lecture, 1 hr of discussion (3rdrd hr hr reserved for use when needed)reserved for use when needed)All other details on the web site at:All other details on the web site at:http://courseweb.berkeley.edu/courseweb/pub/courses/2003/FL/COMPSCI/294/012http://courseweb.berkeley.edu/courseweb/pub/courses/2003/FL/COMPSCI/294/012 We will be using the Blackboard system at CMU for additional We will be using the Blackboard system at CMU for additional communications, etc.: communications, etc.: www.cmu.edu/blackboardwww.cmu.edu/blackboardValue Creation in Product Value Creation in Product DevelopmentDevelopmentMarkets TechnologiesProductProductDefinitionDefinitionFundamentalFundamentalTechnologiesTechnologiesProductProductImplementationImplementation... The Way It Used to Be... The Way It Used to Bee.g. IBM, Hitachi, Digital, Siemens, Fujitsu$ ROI$ ROISource: Stan Shih, Acer, 1992Source: Stan Shih, Acer, 199215nmValue Creation in Product Value Creation in Product DevelopmentDevelopmentProductDefinitionFundamentalTechnologiesProductImplementationMarkets Technologies... The Way It Is Todaye.g. Microsoft, Sony,e.g. Microsoft, Sony,Acer, Cisco, DellAcer, Cisco, Delle.ge.g. Xilinks,. Xilinks, Intel, 3MIntel, 3MDisruptiveTechnology$ ROI$ ROIDisruptiveBusiness ModelSource: Stan Shih, Acer, 1992Source: Stan Shih, Acer, 19924 Billion PeopleEarning less than $2,000/year< $2,000 4,000‘‘The Bottom of the Pyramid’The Bottom of the Pyramid’Middle Classin developingcountries$2,000—$20,000 2,000WealthyNationsAnnual Purchasing PowerParity (PPP) in $US> $20,000PopulationIn Millions 100Source: Prahalad & Hammond, Harvard Business Review, Vol. 80, Issue 9 (Sep. 2002), pp48-58emerging‘mass’ marketsadjacentmarketsWe Can Build Large and SustainableWe Can Build Large and SustainableBusinesses Based on These MarketsBusinesses Based on These MarketsThe Bottom: A Brief DescriptionThe Bottom: A Brief Description3-4 billion people with per-capita equivalent purchasing 3-4 billion people with per-capita equivalent purchasing power (PPP) less that US$2,000 per yearpower (PPP) less that US$2,000 per yearCould swell to 6-8 billion over the next 25 yearsCould swell to 6-8 billion over the next 25 yearsMost live in rural villages or urban slums and shanty Most live in rural villages or urban slums and shanty towns—movement towards urbanizationtowns—movement towards urbanizationEducation levels are low or no-existent (especially for Education levels are low or no-existent (especially for women)women)Markets are hard to reach, disorganized, and very local Markets are hard to reach, disorganized, and very local in naturein naturehttp://www.wri.org/meb/wrisummit/pdfs/hart.pdfGrowth in Megacities—An Urban FutureGrowth in Megacities—An Urban FutureConcentrated Population can be Addressed More EfficientlyExample:Example:An Emerging Market—IndiaAn Emerging Market—Indiahttp://www.wri.org/meb/wrisummit/pdfs/hart.pdfTraditional MNCBusiness ModelSome MNCs?Local FirmsFutureOpportunity?The Bottom: Not the Same EverywhereThe Bottom: Not the Same Everywherehttp://www.wri.org/meb/wrisummit/pdfs/hart.pdfMarch 1, 2003 Extent of benefit desiredDESTITUTEDESTITUTECONSUMING CLASSCONSUMING CLASSRICHRICHCARSCARSWASHERSWASHERSREFRIGERATORREFRIGERATORBICYCLESBICYCLESASPIRANTSASPIRANTSCLIMBERCLIMBERCOLOR TVCOLOR TVB&W TVB&W TVMIXERSMIXERSAUDIOAUDIOPrice able to payExample: India—Many Price PointsExample: India—Many Price PointsSource: NCAER, Millions of Households in 1999,and Rama BijapurkarSource: NCAER, Millions of Households in 1999,and Rama BijapurkarExample:
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