Submitted by Bal Joshi on December 1, 2007 - 11:00.

I love the line it’s not the Technology Stupid! That is a mantra IT companies need to embed in their head prior to delivering a value either in developing country or developed country. Bet it OLPC or just a simple shovel to dig a ditch..as long as there is no sound value proposition that makes a positive impact delivering social and an economic value, NO ONE WILL ADOPT IT! So the question is WHAT IS THE VALUE you are delivering to that market segment and HOW are you planning to deliver that value? Any business smart person would put this out as “What is the business model? Or in Silicon valley “what is the secret sauce?”

Irony in most of the talks around BOP issue is the market is always identified as a market of “POOR” people. Poor relates to a segment that can only sustain thru charity…if you want to do business with them treat them like a potential market who has 2 dollar a day budget…How or Can you reposition your product to deliver your product mix? Walmart the most successful retail chain in the Universe, never market it self as “Walmart! Saving money for the poor people”…They have identified an approach that caters to market that is price sensitive… I think the similar approach needs to be considered in rolling a product in BOP market.

Negroponte like many of the other folks who tried to approach these markets have failed horribly. The top down Techno-centric approach will NOT work. The responsibility for failure is due to approach (business model) than the market. I think world has to learn from the success of cell phones. Why in these emerging economies where their spending capacity is branded as economy earning $2/day is suddenly the fastest growing market for cell phones…. Dissect their success…you will find the right “Sauce Recipe”

 


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