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2008 SemICT4SED*Disruptive TechnologiesU. B. Desai
SPANN Lab.Dept. of EEIIT-Bombaywww.ee.iitb.ac.in/~ubdesai
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2008 Sem*ICT4SEDWhat is disruptive technology?Working
Definition:Technology which creates a major (positive) disruption
in the way society functions Best explicated thru examples
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2008 Sem*ICT4SEDExamples of Disruptive Tech.Sun Microsystems
Workstations: disrupted the market for main frame computers. PCs
disrupted the market for workstationsXerox plain paper copier:
disrupted the market for offset printing.Cannons desktop
photocopiers: disrupted Xeroxs high speed photo copying market.
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2008 Sem*ICT4SEDHonda motorcycle of 60sJapanese cars of
70sKorean Cars of late 80sWireless telephony (GSM, CDMA): disrupted
the market for wire-line telephony.Nirma
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2008 Sem*ICT4SEDImpacting technologies are disruptiveDisruptive
innovations are products and services that initially aren't as good
as those that historically have been used by customers in
mainstream markets, and therefore can take root only in new or
less-demanding applications, amongst non-traditional customers
Stuart Hart and Clayton Christensen
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2008 Sem*ICT4SEDHistorically:Major waves of growththru forays at
the bottomof the developed markets(DM)DM
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2008 Sem*ICT4SEDThe World PyramidTier 1Tier 2 & 3Tier
4Population in millions~ 200 mil~ 800 mil~ 5000 milPurchasing Power
Parity (PPP)>$20,000$2000 to $20,000less than $2000
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2008 Sem*ICT4SEDThe PyramidExamples of Xerox, Cannon copiers,
PCs, Cell phones, etc. represent technologies developed for the
second Tier (to some extent Tier 3) To date most disruptive
technologies have been attacking Tier 2
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2008 Sem*ICT4SEDAdvocated by C. K. PrahaladAttack the bottom of
thepyramid. Likely to creategreater disruptionbottom ofthe
pyramid
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2008 Sem*ICT4SED
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2008 Sem*ICT4SEDPyramid for IndiaT1T2T3T4T6Population in
million10 mil50 mil150 mil200 mil550 milPurchasing Power> 5
lakhs3 to 5 lakhs1 to 3 lakhs50K to 1 lakhless than 50K
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2008 Sem*ICT4SEDOpportunities at the Bottom of the PyramidNearly
billion in India (4 to 5 billion world wide) at the bottom of the
pyramidNeed to develop new technologies for Tier T4 and T5New
business models are needed
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2008 Sem*ICT4SEDExamples of Attacking the Bottom of the
PyramidNew Business ModelsPCO-STD-ISD booths (Pitroda)Hindustan
Lever (Chache Story)Amul DairyGrameen Bank, SEWA Bank
(Micro-financing)Grameen Telecom (Bangladesh)Microfinance (Vikram
Akula)TechnologiesN-Logue (Village Internet Kiosk using CorDect
Wireless Tech.) TVS (Kirana Shop Computers)
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2008 Sem*ICT4SEDN-Logue: corDECT Village KioskConsists of
Wireless corDECT wall-set for Internet and telephone, PC, dot
matrix printer, battery back up, web-cam, speakers, microphone ---
for Rs.50KLocal entrepreneur operates the kiosk These kiosks
becoming community centersExpect cities to outsource their work to
villages (Indian villages could become back office to Indian urban
centers ~ a hyperbole)RTBI: Rural Technology Business Incubator
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2008 Sem*ICT4SEDTVS Kirana ComputersFor Kirana stores with sales
of Rs.100,000 per monthA rugged PC No out right purchase of
software or hardware: Pay Rs.2,500.00 per month.Software for
accounting, inventory, etc. In 180 days there was a 3.9% increase
in profit
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2008 Sem*ICT4SEDChange of Mindset ...(from C. K. Prahalad)Poor
as a Problem
Poor as Wards of StateOld Technologies Old Technologies Follow
the West
Resource Constraints
Poor as an opportunity Global Market of 4.5 billion? Poor as
Active Market Innovation and development of new technologies with
usefulness to the Poor
Imagination ConstraintInformation Access will be a great
asset
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2008 Sem*ICT4SEDThe Poor of India is anIntractableProblemChange
of Mindset (from CK Prahalad)The Poor of India is aPotential
MarketThe Poor of India can beA Source
ofInnovationPovertyAlleviation,SubsidiesCreating a New
Market,Innovation, Growth
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2008 Sem*ICT4SEDChallengesThe Market is Very Fragile:(Monsoons,
Subsidies,.)Middlemen and MoneylendersFragmented ExperimentsLack of
a Global databaseTraditional Ways of Thinking
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2008 Sem*ICT4SEDReferencesC. K. Prahalad and Allen Hammond,
Serving the Worlds Poor, Profitably, Harvard Business Review,
September 2002C K Prahlad, spoke about at the annual session of the
Confederation of Indian Industry, held recently in Bombay. Prahlad
said the Indian economy has the potential to grow 10 to 15%.
http://www.moneycontrol.com/promos/prahlad.html The Great Leap
Downward:
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=996849
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2008 Sem*ICT4SEDHome Work: QuestionsWhy is there so little
technological innovation and development, where the need is
maximum?Why has Fortune at the bottom of the Pyramid not taken
off?Is there something wrong with the theory?Think of three
disruptive technologies that can change the lives of poor in
India
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2008 Sem*ICT4SED
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