Wednesday 11 May 2011

Technology propagation from the developed to the developing world: How, What and When?


Technology is increasingly spreading into our lives, making our lives easier (I wish it was so simple). With technology propagation come concerns of security, privacy and usability. But that is another topic altogether and would require us to look at some of the more subjective aspects. What today we want to touch upon is technology propagation from the developed to the developing world: How, What and When?
The basic assumption in this article is that the technology is already present in the developed world. The technological developments listed here are the ones which either have been adopted in the developing countries or are in some stage of adoption.
Let’s take a few examples of differentiated technology propagation and why did it happen so

Example 1: Virtual Shopping
Amazon.com (and similar websites) has ALL it takes for you to shop, literally everything, so much so that you don’t need to go to the market for ANYTHING. This system has been in place for many years now.
Late adoption reason: The propagation of internet itself has been quite slow in developing countries like India, which is the backbone of this factor. The trust on payment gateways is still another factor which hampers scaling up of this factor.
The culture (Non-technology) factor: Also, here people want to look things in more physical form than see those virtually.

Example 2: Mobile related innovations
Mobile Number Portability (MNP) was implemented in the United States in 2003 and in India it was implemented in 2011.
Late adoption reason: Mobiles were hardly a reckoning force in 2003 in countries like India, so no one felt the reason for it.
The culture (Non-technology) factor: MNP implementation was further delayed by a couple of years due to politico-economic reasons.

Example 3: Transportation related innovations
GPS has been an integral part of every car in US since many years, in a country like India even the trains have recently got equipped with it
Late adoption reason: Infrastructure needed to make this happen has been very sluggish in India. Comprehensive maps are still being worked upon for Tier 1 and 2 cities.
The culture (Non-technology) factor: Indians are helpful and know every location in the town, so who needs to ‘spend’ on a GPS device?

Example 4: e-Corporate
Electronic documents are in use in US for practically everything, but you can’t imagine giving a digitally signed document to anyone (except lately in Income Tax office, which has started to accept online filing of IT returns couple of years back). Online bill payment has been around in US since ages, in India’s case due to technology backwardness and security concerns the propagation has been very low.
Late adoption reason: Very few people had a Computer, even lesser had internet and even the babus still in government offices never knew that world is experiencing a technology age.
The culture (Non-technology) factor: Indians treat hand written as the FINAL word and no compromises on this FULL STOP

Example 5: Online presence
In US people are connected not just from computers but also from their mobile handsets, US has three speed broadband plans, 10Mbps, 50Mbps & 100 mbps, here the most privileged ones are at 1 mbps.
Late adoption reason: Its mostly a catching up game in terms of technology, by the time we develop our infrastructure to enjoy kbps speeds and try to break even, the world is already shifted onto mbps
The culture (Non-technology) factor: We in the developing world are very patient and hence don’t mind if we have to travel miles to find internet or wait ½ a minutes for a single page of a site to load.

Example 6: Customized technology
Analytics is the buzz word in developed world right now, it is giving data & pointers on how to increase sales, how to do targeted advertising, study customer data to give better customer experience. Here we don’t have the basic office automation yet, so even talking about analytics will be a huge ask.
Late adoption reason: NA (we have yet not fully developed the precursors to these)
The culture (Non-technology) factor: In developing countries people come very cheap, so cheap that automation will be very costly and hence won’t yield you an ROI
What these examples show to us is that in order to lead from the technical front one needs a combination of 4Cs:
Congenial environment – everyone wants to lap up a new offering
Conviction – the system acceptability should be based on merit and no other factor
Confidence of the consumer – the system should be so fool proof that it even a new offering shouldn’t cause pain to the user
Culture – The culture of people in developing parts is richer and hence bringing about a change is tougher

And of-course even if these 4Cs are there, you might still fail in India if there is lack of Political WILL.

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