Social Impact of ICT Innovations

By

Boniface NgahuSBO Research

May, 2016

• Distribution of wealth and the capacity to generate incomes in the world can be captured in the form of an economic pyramid

Economic Pyramid

Bottom of the Pyramid (BOP)4 billion people, earn less than 2$ a day

(Prahad 2006)

Lower- Middle income

Wealthy

Defining the BOP• Vijay Mahajan, Author of ‘Africa Rising’ divides Africa into 3 segments

Africa 2: Lower/Middle class 35%

(350 million)

Africa 1: Elite 15%

(150 million)

Africa 3: Bottom of pyramid 50%

(500 million)

Kenya has Approx. 28 million people in this segment

Kenyan Social Classes

4

Population by Social Class

E

C2C1

AB 4% 1.7m14% 6.2m

20% 8.8mD 28% 12.3m

34% 15.2m} Bottom of pyramid

Source: SBO Data 2014

Social Impacts of ICT Innovations

Improved Farm Yields & Practices

• ICTs have formed products and services adopted by agricultural practitioners – Resulting into better methods to improve their

yields and farming practices. • Using mobile phones and SMS, farmers

have been able to– Expand distribution channels to more remote

rural areas – Offer products and services to farmers that

were not available to them before Source: ICT Applications and Agricultural Input Supply Companies, USAID, 2013).

“Farmers Will Drive Ferraris”

These platforms communicate agricultural inputs such as product or input advertisements,

price fluctuations, breeding and extension services and advisory services among others

Kilimo Salama 41%

i-Cow 35%

SMSSokotext 16%

m-Farm 7%

Majority of Dairy farmers were found to use

at least one farming app in Limuru

Wanjohi, 2015

Kenyans Lead the World In technology Adoption

• This CA Consumer Trends survey by SBO Research characterized respondents into various categories in the product adoption curve mainly driven by digital migration

• Majority of consumers defined themselves as innovators

8

63%

26%

4% 7%InnovatorEarly adopterEarly majorityLate majority

Base = 4666

Innovators • Rapidly grasp products when first introduced• Are eager to try new ideas and product• Rely less on group norms and are more self-confident• Get their information more from scientific sources and experts

Role of social economic factors on use of ICT services

9

Factors that influence use /purchase of ICT services

• Price or the disposable income is the greatest influencer in purchase decisions for ICT products/ services followed by recommendation from friends/ relatives .Peer pressure has the least influence.

• Courier: - quality, speed, cost and geographical reach is key

• Mobile:- quality, cost and value added services are key

10

To what extent does each of the following factors influence your decision to purchase ICT products? Scale = 1- 3

Mean score %Price/ amount of money that I have 2.67 89%Recommendation by friends/ relatives 2.23 74%Peer pressure 1.85 62%

Base = 4666

Social economic effects of ICT Pros Cons

Broadcast services

• Imparting more knowledge/ consumer empowerment

• Employment creation • Transparency / freedom of expression • Appreciation of culture diversity

• Tribalism and hate speech due to the increased number of vernacular stations

• Exposure to inappropriate content (moral degradation)

• Relaying of conflicting information

Mobile phones

• Close of geographical divide (touch within despite time and space)

• Accelerated communication• Decreased frequency of travel to

deliver cash• Increased employment opportunities• Increased financial security • Improved saving culture• Increased culture of contributing to

charity

• Language alteration • More frequent than meaningful

communication (emotions cannot be expressed effectively using gadgets)

• Less personal (face to face) interactions

• Increased financial fraud

Internet • Close of geographical divide (people keep in touch despite time and space)

• Increased opportunities

• Moral degradation

• Increased financial fraud

Digital TV _ Challenges and Benefits

Access to electronic program guide

Increased access services /ease of integrating with other technology

Better picture quality

Access to a wide variety of channels

28%

45%

71%

82%

What are some of the benefits of using digital TV?

Base= 2339 Bad signals

Monthly charges for the set top boxes

High cost in acquiring set top boxes

Interrupted viewing during rainy periods

2%

53%

54%

59%

What challenges are you experiencing when using digital TV?

• Digital TV has facilitated access to a wide variety of channels and viewers get better picture quality

• Greatest challenge faced when using digital TV is interrupted viewing during rainy periods as well as cost of acquisition of digital set top boxes and monthly subscription charges

Base= 2339

Other Social Impacts

Sponsorships & Promotions

Health

Productivity

Social Security

Financial Inclusion

Betting

Cyber crime

Thank You

Thank you