Strategic Positioning of the Digital Villages as a Centre for Rural Empowerment and Development

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    IBM Corporate Service Corps

    Kenya Team1

    Sub-Team 1:Strategic Positioning of the Digital Villages as a Centre for RuralEmpowerment and Development

    Final Report

    October 15, 2010

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    Table of Contents1 Executive Summary 12 Program Background 2

    2.1 IBM Corporate Service Corps 22.2 IBM CSC Kenya Team 1 22.3 Machakos, Kenya 32.4 IBM 32.5 Digital Opportunity Trust (DOT) 3

    3 Statement of Work 43.1 Key Objective 43.2 Approach 4

    4 Key Actors 55 Methodology 6

    5.1 Issue Based Consulting 65.2 Activities and Outcomes by Phase 75.3 Data Gathering Elements 7

    6 Assumptions, Hypotheses and Key Questions 86.1 Key Assumptions 86.2 Hypotheses and Key Questions 8

    7 Data Gathering, Analysis and Synthesis 107.1 Sources of Information 107.2 Data Gathering 107.3 Analysis and Synthesis 12

    8 Conclusions and Recommendations 139 Critical Success Factors 1910 Acknowledgement 20

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    1 Executive Summary

    IBM CSC Kenya Team 1 spent one month (mid September to mid October 2010)based in Machakos, Kenya focused on the Digital Village Project. The initiative is

    driven by the Kenyan Ministry of Information and Communications (MoIC) todevelop an enabling environment for the establishment of Digital Villages in therural areas throughout Kenya as centres for development.

    The project supports Kenyas Vision 2030 and addresses the disparity betweenurban and rural areas through:

    Government e-services delivery

    ICT training and enablement

    Job creation and revenue generation

    The team of 11 IBM employees was divided into three sub teams addressing:

    1. Strategic Positioning of Digital Villages as Centres for Rural

    Empowerment and Development2. Strategic Framework: Rural IT Enabled Services (ITES) for Digital

    Villages3. Vision for Empowering Entrepreneurs to Successfully Operate their

    Digital Villages

    This report covers the statement of work for sub team 1

    Overall, the Digital Village ecosystem includes various players including CBOs,NGOs, Telcos, churches, co-operatives, development partners, cyber-cafs, andPasha Centres. Pasha Centres are a critical subset of the Digital Village Projectand were chosen as the focus for this research to enable the MoIC to develop

    flagship Centres / Centres of Excellence for other Digital Villages to emulate.Additionally, the Pasha Centres can have a distinct and influential role in overallDigital Village strategy.

    Through numerous meetings, interviews, and research documents it is concludedthat focus is needed on three critical success factors to set the foundation for thesuccess of Pasha Centres:

    Affordable and reliable infrastructure (primarily, but not limited to, internetand power)

    Local content

    Communication plan

    Achieving the critical success factors will in turn enable the enhancementstowards the realisation of the Digital Village Project vision:

    IT Enablement Services (ITES)

    Entrepreneur training and enablement services

    Technologies and management tools to empower entrepreneurs

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    2 Program Background

    2.1 IBM Corporate Service Corps

    IBM Corporate Service Corps (CSC) is a global IBM initiative designed to providesmall businesses, educational institutions and non-profit organizations in growthmarkets with sophisticated business consulting and skills development to helpimprove local conditions and foster job creation. IBM deploys teams of topemployees from around the world representing IT, research, marketing, finance,and business development to growth markets for a period of one month. IBMprovides services pro bono under IBMs Corporate Social ResponsibilityProgramme and its employees work with local organizations and businesses onprojects that intersect business, technology and society.

    The Kenya initiative is part of a programme of African activity which began in2008 and during which IBM has so far deployed 24 teams of its employees toKenya, Tanzania, Nigeria, Ghana, South Africa and Egypt. By the end of 2010,IBM will have deployed almost 950 of its consultants, serving on 90 teams across18 different countries around the world. Projects vary from assisting networks ofentrepreneurs and small businesses to the utilization of information technology bycommunities left behind the "digital divide."

    2.2 IBM CSC Kenya Team 1

    IBM CSC Kenya Team 1 consists of 11 IBM employees with a diversity of skillsrepresenting 8 IBM offices from around the world. The team is working with theKenya ICT Board (KICTB), the Ministry of Information and Communications, andDigital Opportunity Trust (DOT).

    The team is expected to tackle real societal, educational and economicchallenges, while at the same time experiencing a diverse cultural perspectiveand enhancing their skills and leadership competencies.

    The team responsible for Strategic Positioning of the Digital Villages as a Centrefor Rural Empowerment and Development includes:

    Table 1 Team Members

    Elaine Murphy,Marketing Manager,United Arab Emirates

    Kevin Schmerling,ManagingConsultant, USA

    Christiane Ris,InformationTechnology,

    Germany

    Hiroshi Yanagida,DevelopmentEngineer, Japan

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    2.3 Machakos, Kenya

    Machakos is a town 64 kilometres southeast of Nairobi. It is the capital of theMachakos District in Eastern Province of Kenya. Machakos Town is a major ruralcentre and a satellite town due to its proximity to Nairobi. Its population is rapidlygrowing with 192,117 citizens as of 2009. Machakos Town Constituency is anelectoral constituency in Kenya. It is one of six constituencies in MachakosDistrict. The constituency was established for the 1988 elections.

    Machakos was chosen for its proximity to Kangundo town, the first pilot DigitalVillage launched by the KICTB, which has been operational since July 2009.

    2.4 IBM

    IBM was incorporated in the United States of America in 1911. At the end of2009, IBM had more than 399,400 employees in over 200 countries with revenueof USD 95.8 billion.

    IBMers share a set of Values which helps guide our decisions, actions, andbehaviours and is at the core of our collective aspiration to be recognized as agreat company. These are:

    Dedication to every client's success.

    Innovation that matters - for our company and for the world.

    Trust and personal responsibility in all relationships.

    IBM is organized to address the realities of todays business and IT marketplace.Broadly speaking, business operations include: Services, Technology, Hardware,Software, Research, and Financing.

    IBM East Africa is a fully fledged subsidiary of IBM Corporation and comprisesKenya, Tanzania, Uganda, Ethiopia, Rwanda and Burundi. IBM Kenya is theregional hub with a full branch office.

    2.5 Digital Opportunity Trust (DOT)

    Digital Opportunity Trust (DOT) is a Canadian-based, international not-for-profitenterprise established to build human capacity and provide the tools to promotecommunity-based economic and social development. Combining the power ofpeople, technology, and innovative community solutions, DOT programsstimulate economic opportunity and technology as an enabler of learning inschools.

    DOT currently operates in 11 countries, including Kenya and has directlyimpacted nearly 200,000 people through micro-entrepreneurial development,technology, education and life skills and has trained over 2,000 young ICTleaders worldwide.

    In 2008, DOT was selected by IBM as Global Implementation Partner for theCorporate Service Corps program and is now working with IBM to implement theCSC program in Kenya, Turkey, China and Egypt. Expansion of the IBM-DOTCSC partnership is planned for 2011.

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    3 Statement of Work

    3.1 Key Objective

    This work effort is an initiative of the Ministry of Information and Communications(MoIC). The purpose is to establish a Digital Village in each constituency as acentre for rural empowerment and development. The work of the Kenya Team 1,Sub-Team 1 will support the MoIC efforts to define the strategy, the strategicpositioning, and address sustainability issues as part of the economic and socialdevelopment agenda at the local level.

    3.2 Approach

    The approach used includes field studies (on-site Pasha Centre and DigitalVillage visits), client interviews, internet investigations, analysis of existingdocumentation, and the teams collective industry experience and expertise to

    gain a solid understanding of the current situation for the Digital Villages. Themethodology applied throughout the project was Issue Based Consulting (IBC),a well proven consulting methodology that is widely used within IBM as well as bymany other organizations, which is explained in detail later in this document.

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    4 Key Actors

    Figure 1 explains the interaction between multiple actors managing, supportingand using Digital Villages. Each actor is explained in Table 2 below.

    Table 2 Description of Entities

    Actors Description

    Kenya ICT Board(KICTB)

    The Kenya ICT Board was established by the President, H.E. Mwai Kibaki,in February 2007. The activities of the Board are based on positioning andpromoting Kenya as an ICT destination both locally and internationally. TheKITCB reports directly to the MoIC.

    Digital Village (DV) MoIC launched the Digital Village Project in 2006 to exploit ICT for ruraldevelopment through access to government information, potentialoutsourcing of government services, and a host of applications. PashaCentres are to be the flagship/centre of excellence for other DVs to emulateand will have distinct and influential role in overall DV strategy.

    Entrepreneurs KICTB launched and trained 1061 potential entrepreneurs drawn from everyconstituency. A key focus of the training is entrepreneurship to enable thetrainee to develop a bankable business plan.

    Owners DVs differ from Pasha Centres as they are owned by a variety of institutionssuch as schools, telecoms, churches, and community based organizations,etc. and are not supported by KICTB.

    Digital Opportunity Trust(DOT)

    DOT is a not-for-profit organization focused on creating educational,economic, and entrepreneurial opportunity through the effective use of ICTs.

    IBM CSC Team IBM provided a group of top employees on a pro bono basis to providesupport to KICTB for the Digital Village Project.

    Intelecon Research andConsultancy, Ltd

    KICTB works with a consulting company Intelecon Research andConsultancy Ltd, to assess the DV business.

    Summit Strategies Ltd KICTB works with a consulting company, Summit Strategies Ltd, to helpdefine ICT strategies.

    Community

    Digital Village

    Kenya ICT Board

    Entrepreneurs

    Education

    Institutions

    Private Sector

    NGO

    Community BasedOrganisations

    Churches

    Digital Opportunity

    Trust

    Intelecon Research and

    Consultancy Ltd

    IBM CSC Team

    Summit Strategies Ltd

    Commercial

    Non Profit

    Manage

    Support

    Manage

    Use

    Consult

    Train & Support

    Support

    Owner

    Figure 1 Actors for Digital Villages

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    5 Methodology

    5.1 Issue Based Consulting

    The team applied Issue Based Consulting (IBC) methodology to establish theproject framework and approach. The project plan and supporting methodologywas designed to seek out the most critical issues and address them within thefour week project duration.

    IBC is an investigative technique that helps:

    Evaluate a clients complex problem

    Arrive at fact based conclusions

    Provide relevant recommendations

    Based on IBC the project will be conducted across four phases:

    1. Define / verify the scope and context of the engagement to level setexpectations

    2. Align the approach to critical issues and develop hypotheses and keyquestions

    3. Gather data and perform analysis4. Develop conclusions and provide recommendations

    Figure 2 Phases of Issue Based Consutling

    Scoping, ObjectiveSetting & Situation

    Assessment

    Identify Issues &Develop

    Hypotheses & KeyQuestions

    Data Gathering,Analysis &Synthesis

    Recommendations &Buy-in

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    5.2 Activities and Outcomes by Phase

    5.3 Data Gathering Elements

    A data matrix tool (see Figure 4 for an example) was utilized to organize thetypes of information, the sources, and the method by which the information wascollected. The cross-check column ensured that critical data was verified by morethan one source. The data collected was used to confirm, reject, or modifyhypotheses into conclusions and ultimately serve as the supporting detail for therecommendations.

    Figure 3 Activities and Outcomes

    Client: Ministry of Information and Communication (MoIC)

    Date: 9/17/2010

    Data Needs MoIC KICT Board Entrepreneurs Pilot DVs

    Telecentres

    & CBOs Intelecon External

    CrossCheck

    (Y/N)Confirm long term goals and strategies Interview

    Confirm long term goals and strategies Interview

    On-site visit /

    Observation

    How does DOT try to grow DVs? Its plan Interview Focus Group

    Shortages and benefits of Pasha, new ideas Observation Questionnaire

    What is the difference between starting business at DVs

    and any other place?

    Published

    Data /

    Business

    Models

    Internet,

    Industry

    Experts,

    Business

    Periodicals,

    etc.

    Sources of Information

    Hypothesis:

    Issue:

    Figure 4 Sample Data Matrix. Note: The data included in the table above is for example only

    Final Report &recommendations

    Documentation organizinginsights and conclusionsfrom synthesis of data

    Detailed work plan

    Framework forsynthesizing data that will becollected

    Updated data matrixreflecting types of data

    needed, sources to providedata, & method to collectdata.

    Clearly defined SOW withagreed upon objective &scope

    Documentation describingas-is situation (organization,culture, technology,

    equipment, managementtools, skills, etc. in DVs)

    Define guidelinesrecommended for nationalroll-out of DV in rural areas

    Create and present finalreport and recommendations

    Collect data throughvarious methods & sourcesi.e. interviews with client &entrepreneurs, on-site visits

    to DV, questionnaires, etc.

    Generate findings andconclusions based onsynthesis of data

    Review and confirmconclusions with client

    Focused review of keyengagement issues

    Develop hypotheses aboutissues

    Create key questions totest hypotheses

    Review and verify SOWand agree on appropriatescope with key stakeholders

    Analyze as-is situation

    Conduct on-site visits toDVs and research typicalenvironment

    Talk with entrepreneurs

    Final Report &recommendations

    Documentation organizinginsights and conclusionsfrom synthesis of data

    Detailed work plan

    Framework forsynthesizing data that will becollected

    Updated data matrixreflecting types of data

    needed, sources to providedata, & method to collectdata.

    Clearly defined SOW withagreed upon objective &scope

    Documentation describingas-is situation (organization,culture, technology,

    equipment, managementtools, skills, etc. in DVs)

    Define guidelinesrecommended for nationalroll-out of DV in rural areas

    Create and present finalreport and recommendations

    Collect data throughvarious methods & sourcesi.e. interviews with client &entrepreneurs, on-site visits

    to DV, questionnaires, etc.

    Generate findings andconclusions based onsynthesis of data

    Review and confirmconclusions with client

    Focused review of keyengagement issues

    Develop hypotheses aboutissues

    Create key questions totest hypotheses

    Review and verify SOWand agree on appropriatescope with key stakeholders

    Analyze as-is situation

    Conduct on-site visits toDVs and research typicalenvironment

    Talk with entrepreneurs

    Scoping,Objective Setting

    & Situation

    Assessment

    Identify Issues &Develop

    Hypotheses & Key

    Questions

    Recommendations& Buy-in

    Data Gathering,Analysis &

    Synthesis

    Outcomes

    Activities

    On-going client interaction and communication

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    6 Assumptions, Hypotheses and Key Questions

    6.1 Key Assumptions

    The following key assumptions about Pasha Centres have been established inorder to create a baseline for the hypotheses.

    Pasha centres will:

    Empower and develop rural areas from a economic, social, and politicalperspective

    Reduce marginalization of rural areas

    Stem the rural to urban migration

    6.2 Hypotheses and Key Questions

    Through the situation assessment phase a list of issues were identified. The team,along with the client, determined the set of high priority issues upon which toconduct and focus the in-depth analysis. In order to elaborate and investigatesignificant issues, six hypotheses were developed and associated key questionswere identified. The questions were used to collect relevant data to prove ordisprove each hypothesis. The following table shows all hypotheses and keyquestions.

    Table 3 Hypotheses and Key Questions

    Hypotheses Key Questions

    1. Pasha Centres will be theflagship for DVs within eachconstituency

    a. What do you think a Pasha Centre is?b. Do you want to upgrade your DV to a Pasha Centre? Why?c. What is needed to make a Pasha Centre successful?

    2. Pasha Centres will be profitableand sustainable providing jobswithin the centre and creatingspin-off jobs outside the centre

    a. What types of jobs have been created in the DV?b. Do you know of any jobs created around/because of the DV?c. What services do your customers like best and are you able

    to make money from those services?d. Can we see your business plan and how did you have to

    modify it?3. Pasha Centres will be the

    extension of centralisedgovernment services currentlyprovided out of Nairobi and delivergovernment e-services, including

    e-health, in each constituency

    a. Do you think that government e-services such as passportand birth certificates could be processed through a DV? -Explain

    b. What services are your customers asking for? Is thissomething you want to deliver? Why/why not?

    c. Do you think that health services such as malaria, HIV, TBinformation could be distributed through a DV? Explain

    4. Pasha Centres will provide ITEnablement Services (ITES),train-the-trainer training, ICTmaintenance and support withineach constituency

    a. What types of training are you delivering now?b. What types of training could be delivered through a DV?c. What is needed to deliver training?d. What type of training have you been provided to open a DV?

    5. Pasha Centres will provide thegovernment with agriculture,health, and economic data withineach constituency and provide

    similar information to citizens

    a. Do you think that the government could collect informationsuch as maize harvest or water levels through DVs? Explain

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    6. Pasha Centres will havesufficient resources i.e. human,financial, infrastructure,willingness to set-up, run, andutilise the centres

    a. What has been the hardest part about setting up a DV?b. What is the hardest part about keeping it running?c. What would you differently?d. Would you open another centre?e. Why do people come here?f. What do people like the best?

    g. Who are your clients?h. Why did you select this area?i. What is the internet infrastructure/ network provider?j. Do you own this business, if not who is the owner? If so, how

    did you fund the operation?

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    7 Data Gathering, Analysis and Synthesis

    7.1 Sources of Information

    Throughout the Data Gathering phase several sources of information wereutilised. Findings were gained based on information gathered from:

    Meetings with: Permanent Secretary of the MoIC Kenya ICT Board KENET KDN Intelecon DOT

    On-site visits to existing Digital Villages and pilot Pasha Centres: KDN Digital Village, Excel Girls High School in Kitengera Pilot Pasha Centre in Nairobi, Mukuru Promotional Centre Pilot Pasha Centre in Nkubu (referred as Meru) Pilot Pasha Centre in Kangundo

    Reference material provided by: KICTB Intelecon Mediae Summit Strategies Ltd

    7.2 Data Gathering

    Evidence from each source was arranged in a data matrix according tohypothesis and key question.

    Figure 5 Data Gathering Phase

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    Figure 6 Data Gathered for Hypothesis 1 (Extract)

    Figure 7 Data Gathered for Hypothesis 2 (Extract)

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    Figure 8 Data Gathered for Hypothesis 4 (Extract)

    7.3 Analysis and Synthesis

    Evidence was evaluated, synthesized, and verified to derive conclusions anddevelop recommendations.

    The data matrix is available as a separate document as part of the prepareddeliverables.

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    8 Conclusions and Recommendations

    The following hypotheses are ordered by the most fundamental aspects of PashaCentres to achieving the long term vision.

    Hypothesis 6: Pasha Centres will have sufficient resources i.e. human, financial,infrastructure, willingness to set-up, run, and utilise the centres.

    Resources to enable Pasha Centres are currently insufficient primarily internetand power. For example, the cost to connect to the Internet is approximatelythree times higher in Kangundo than in Nairobi and contributes to the inconsistentprofitability among Pasha Centres. A comprehensive communication plan andICT education should be established to increase the awareness of ICT andpotential consumers of Pasha Centres.

    Table 4 Hypothesis 6: Conclusion and Recommendations

    Conclusions

    Infrastructure

    Internet connectivity is expensive in rural areas (e.g. approximately three times higher inKangundo than Nairobi)

    Power failures are regularWillingness of Entrepreneurs to Start-up and Operate a Pasha Centre

    Low business plan submission rate and viability post initial entrepreneurship training

    Profitability is inconsistent among pilot Pashas

    Gap between available funds and entrepreneurs awareness of program/funding

    Entrepreneurship training is effective, but more enablement services are needed. Reliable andsustainable enablement platform between entrepreneurs is needed

    Willingness of Consumers to Utilize Services ICT literacy rate is low (~30% of population). ICT literacy must be a priority to foster adoption

    and usage of DVs and ensure viability and success

    Computers are generally viewed by local constituents as tools only for the university educated

    Basic needs (food/water/shelter) must be met before introducing computers. ICT usage mustprovide a clear and present benefit to citizens in order to be adopted by the majority

    National level programs tend to have high awareness rate, but complete communication plansreaching to all citizens are lacking

    Recommendations

    Infrastructure

    Assess existing infrastructure to better understand affordability, reliability, speed and ServiceLevel Agreements in rural areas

    Re-evaluate contracts with ISPs and network providers with a goal of providing affordable andreliable service

    Willingness of Entrepreneurs to Start-up and Operate a Pasha Centre

    Create program to bridge available talent pool with available ICT jobs

    Disburse funds for 30 entrepreneurs in October 2010 as planned

    Implement mentor program between entrepreneurs and local banks

    Re-open the application process for KICTB Entrepreneurship Training and set a minimumlevel of ICT skill requirement in order to apply. This will help increase the number of viablebusiness plans submitted by potential entrepreneurs

    Willingness of Consumers to Utilize Services

    Identify ICT training programs separate from Pasha Centre entrepreneur training

    Incorporate ICT training into primary education curriculum Create local content development plan in support of local content needs

    Create comprehensive communication plan focused at reaching grass roots level

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    Hypothesis 5: Pasha Centres will provide the government with agriculture,health, and economic data within each constituency and provide similarinformation to citizens.

    The objective of providing e-government services and private sector portals

    through Pasha Centres is important for the empowerment and development ofrural areas. The ability for the government to gather data from rural areas willprovide faster and a more targeted response to crises and enable thegovernment to make decisions based on facts. This is viewed as a medium tolong term goal as there is a dependency for the government to first implementpolicy and structure changes due to the new Constitution. As these changes arein process, preliminary discussions and plans around data modelling shouldbegin.

    Table 5 Hypothesis 5: Conclusion and Recommendations

    Conclusions

    Data gathering will directly benefit local community and enable government to make fact baseddecisions

    Willingness appears to exist but need to assess how data will be collected and analyzedconsistently

    Data modelling needs to be considered

    This is a longer term vision as it is dependent upon government changes resulting from newConstitution

    Recommendations

    Create processes and model for data gathering and analysis

    Establish data collection priorities for various elements. For example: maize harvest, water levels,cattle, health (first response), education

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    Hypothesis 4: Pasha Centres will provide IT Enabled Services (ITES), train-the-trainer training, ICT maintenance and support within each constituency.

    There is a strong need to increase the ICT literacy rate especially among the ruralpopulation to help increase the likelihood of ICT adoption. This can be achieved

    by developing more consistent training programs led by qualified instructors andoffering degrees or certifications upon completion.

    Table 6 Hypothesis 4: Conclusion and Recommendations

    Conclusions

    Various forms and levels of ICT training are currently provided

    Lacks consistency on types of training and education curriculum / content

    Most training / education services offered do not provide a certification / diploma upon completion

    Entrepreneurship training is effective but more enablement services are needed

    Local ICT maintenance and support within constituencies is mostly unknown

    Recommendations

    Develop train-the-trainer course material to enable consistency across learning material andincrease the number of qualified/certified instructors

    Mandate training to be delivered by qualified/certified instructors

    Create standard education and training programs that provide certification by an accreditedinstitution

    Provide entrepreneur with list of required training offerings including core curriculum andcertification process (further detail in Pasha Centre Start-Up Kit)

    Certification program will further encourage participation, be an effective incentive for people topay-for training, and help graduating students become more marketable for employment

    Enable Pasha Centre entrepreneurs to provide maintenance and support to local governmentagencies, schools, churches, businesses, etc.

    Fully utilize available training funds by conducting analysis of funding sources and tie to mostcritical needs

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    Hypothesis 3: Pasha Centres will be the extension of centralised governmentservices currently provided out of Nairobi and deliver government e-services,including e-health, in each constituency

    A communication roadmap and rollout strategy for the rural areas is needed and

    must be deployed through appropriate means and with advocacy of local leaders.

    Table 7 Hypothesis 3: Conclusion and Recommendations

    Conclusions

    Currently, Pasha Centres are not currently operating as a true extension of government services.Examples of current service offerings include tax filings and national ID cards

    Existing Pasha Centre owners have a strong desire to offer e-government services, but require themeans to deliver these services

    Communication plan is required to inform citizens, in particular to reach rural areas, about e-government services and the direct benefits consumers will gain by utilizing these types ofservices

    Recommendations

    Create an e-government services roadmap and rollout strategy, which will be dependant upongovernment policy changes resulting from the new Constitution

    Engage local ICT advocates to promote DVs at grass roots level. Do not rely solely on standardmedia channels

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    Hypothesis 2: Pasha Centres will be profitable and sustainable providing jobswithin the centre and creating spin-off jobs outside the centre.

    Profitability is heavily dependent upon ICT infrastructure. Pasha Centre growthand sustainability must be supported by mentoring, information sharing and

    collaboration. Value to the customers will be provided through education, trainingand e-government services, and most importantly, local content.

    Table 8 Hypothesis 2: Conclusion and Recommendations

    Conclusions

    Pasha Centres Profitability

    Profitability varies depending on location, demographics, proximity to main fibre optic cable,competition, and customer service

    Pasha Centres are dependent upon affordable and reliable infrastructure to be viable

    Understanding and ability to reinvest in the Pasha Centre is essential- Existing facilities need updating- Existing software is outdated and hardware is both outdated and not energy efficient- Need to remain current with new technologies

    As Pasha Centres continue to grow, expand service offerings, and increase profit margins, it isexpected that jobs within the Centre will be created

    Local Content and External Job Impact

    Local content is critical and can help to support regional small businesses to grow and increasewealth in the region (e.g. farmers marketplace)

    As training & education increases among local constituents, they will become empowered tocreate or expand their own business and generate the need for new jobs

    Recommendations

    Pasha Centres Profitability

    Negotiate with more ISPs to help increase competition, drive down costs, and force ISPs toadhere to a stricter Service Level Agreement (SLA) (i.e. reliability of internet service, responsetime to resolve slow speed or outages, etc.)

    Follow recommended Pasha Centre guidelines provided to KICTB pertaining to layout, serviceofferings, and minimum set of requirements depending on size and demographics ofcommunity

    Create implementation guide for business start-up

    Complete and implement IT support and mentoring plan

    Establish quarterly newsletter providing information about new technologies & reinvestment ofprofits, applications, services, funding opportunities, etc.

    Conduct assessment of next 30 Pasha Centres. Apply lessons learned towards improvingexisting Pasha Centres as well as future Pashas

    Local Content and External Job Impact

    Create strategy and timeline and assist with providing relevant local content and a phasedimplementation approach for e-government services

    Utilize Pasha Centres to serve as the central information hub, including: training centres, microfinancing, office services, meeting space, retail services, etc.

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    Hypothesis 1: Pasha Centres will be the flagship for Digital Villages within eachconstituency.

    Pasha Centres are not yet fully delivering the vision for Digital Villages. To enablethe vision to be fully realised focus is needed on the three following critical

    success factors. These factors will set the foundation for the continued growthand enhanced services for Pasha Centres:

    Affordable and reliable infrastructure (primarily, but not limited to, internetand power)

    Local content

    Communication plan

    Table 9 Hypothesis 1: Conclusion and Recommendations

    Conclusions

    Pilot Pasha Centres are not fully delivering the vision outlined by the Permanent Secretary ofMoIC. Focus is needed on key success factors

    Pasha Centre brand is not well recognized in rural areas Funds have not been disbursed to existing Pasha Centres for enhancements

    Services being offered only moderately differentiate Pasha Centres from other DVs

    Recommendations

    Establish three teams focused on:- Affordable and reliable infrastructure- Local content- Communication planThe above three pillars serve as the foundational requirement for success and are the buildingblocks needed in order to meet the full vision of the DV Program

    Identify barriers preventing disbursement of funds. Implement plans and processes to disburse

    funds and communicate to entrepreneurs and general population Each flagship Pasha Centre must possess a business model, services, and processes that are

    obtainable, repeatable, and sustainable in order to serve as a Centre of Excellence by whichDigital Villages can emulate and leverage best practices

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    9 Critical Success Factors

    It is concluded that focus is needed on three critical success factors to set thefoundation for success for Pasha Centres:

    Affordable and reliable infrastructure (primarily, but not limited to, internetand power)

    Local content

    Communication plan

    Achieving the critical success factors will in turn enable the enhancementstowards the realisation of the Digital Village Project vision:

    IT Enablement Services (ITES)

    Entrepreneur training and enablement services

    Technologies and management tools to empower entrepreneurs

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    10 Acknowledgement

    We would like to sincerely thank and acknowledge the valuable assistance andsupport from our client, MoIC and KICTB. In addition, we would like to extend a

    special thank you to IBMs global implementation partner, DOT and to the IBMEast Africa Office.

    As our assignment nears an end our team had an opportunity to reflect on ourpre-work and in-country experiences through out this assignment. The mostcommon theme amongst the team was how much we all have grown on both aprofessional and personal level.

    From professional standpoint, our team has come away from this assignmentwith enhanced leadership skills and a stronger understanding and appreciationfor cultural adaptability while conducting business in a growth market and what ittakes to be a globally integrated enterprise.

    From a personal perspective, we have all learned first hand what an amazingcountry Kenya is and the very bright future it holds. Furthermore, we havethoroughly enjoyed the wonderful welcoming attitude and friendliness of theKenyan people. We will hold a special place in our hearts for Kenya and all hopeto visit Kenya in the future.

    Asante Sana and Kwaheri