Sunday, September 13, 2015

Low-cost and high ROI but readily accessible and accepted?



Many low-cost solutions to social problems and basic needs in sectors including education, information technology or humanitarian affairs, to a large extent, focus on human-centered design. A product may provide an intangible value of improving livelihoods in quantifiable ways such as the reduction in the spread of infectious diseases or higher literacy rates. Beyond the specifics of the innovative technology is the issue of cost. As described in the Guardian article on self-adjustable glasses to correct poor eyesight, the production costs of such an innovative intervention for school children in rural Africa still remain relatively prohibitive. While such a product is considered inexpensive in OECD nations, it may not record high sales in target emerging markets where it might be needed most.

In examining affordable social innovation, a key aspect is examining the context and implementation strategy. Many disruptive technology enablers for global development depend on internet connectivity and continuous access to electricity. Whether it’s the Khan Academy’s tutorials, the iCow app or mobile solutions for e-banking, a level of ICT penetration is required for maximum gain from the innovation. These add to the overall costs for a low-income customer. In many developing countries, initial costs for ICT are still higher while electric power remains sporadic. Naturally, there are other avenues to offset costs through philanthropy, usage of cheaper input material or even policy interventions.

A key takeaway is the power of human-centered design (HCD) thinking because the approach forces the innovator to fully understand the local culture and norms. Outside of costs, I think technological innovations like the energy-efficient stove (Berkeley-Darfur)[1] are immensely important because the duality of benefits in terms of less exposure to toxic smoke and lower rates of deforestation due to less dependency on wood. In addition, the innovation saves time by reducing the incidence of women walking long distances to gather firewood for cooking. The case of the cook stove reinforces the usefulness of HCD. The cost barrier in this case may be overcome through communal cooperatives, microfinance or local municipal funding.

For nations and regions with advanced ICT development (i.e. Western countries), the Khan Academy represents affordability and accessibility that comes with 21st century online education where students have the chance to study math, science, programming among other subjects without incurring huge expenses. In my opinion, this paradigm opens educational opportunities for all and also, highlights the effectiveness of HCD when coupled with the fact the Khan Academy has endorsements from globally-recognized brand names of uber-wealthy philanthropists.

Going forward, once the cost factor is dealt with, the rapid diffusion of human centered innovative technology may become more feasible especially in critical areas like water, health and energy. Will a high return on investment for entrepreneurs of technology enablers match the long-term impact in later decades? That remains to be seen.



[1] http://www.smithsonianmag.com/science-nature/five-innovative-technologies-that-bring-energy-to-the-developing-world-49271677/?no-ist

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