The Semacraft Blog

Kibera is Kenya’s largest slum: informal settlement if we go by the more established euphemism in use today. The corrugated iron sheet roofs do not stand alone on this vast landscape but are interspersed by TV antennas, so many they seem to stand guard like an army watching over the roofs as far as the eye can see.  Should the residents of Kibera be spending their hard earned money on television sets? Shouldn’t they be fighting their way out of poverty? Saving for their future? Investing in better healthcare?

A section of Kibera. Image source: flickr user kyhm54

I hear these questions frequently enough from visitors from the West. Very valid questions which even middle class Africans ask of their lower-on-the-BoP ‘brethren’. I especially hear these questions asked by many involved in social enterprises with products that have obvious benefits to users rural, poor or both.

There exists a disconnect between these organizations’ aspirations (for instance: eliminate the use of kerosene) and their customer’s aspirations (for instance: be connected to electricity) introducing some interesting challenges for vendors. The focus by the vendor on building a product that eliminates harm and improves well being leads the business into a cul-de-sac where great products go to die. The same cul-de-sac where healthfood for the masses is to be found together with last year’s new year resolutions. The benefits of the product are undeniable and yet uptake remains poor. Sometimes the message behind the marketing communications destroys any chance a product has in the market. Especially when it asks customers to acknowledge, by purchasing the item, that they are financially unable to cope with the rising cost of living. An admission of defeat. The product does not provide a roadmap for advancement and by being an end in itself rather than a milestone on the journey to success catalyzes little hope for the future. No one wants to be hopeless, no matter how affordable it is.

Putting a great deal of thought into the design of a product comes easy for social entrepreneurs (at least it should) because they put impact before financial reward. However, the always very noble motivation of the service or product informs its positioning in the market. A market that also includes purely commercial players playing by a different rule book. This positioning sometimes aludes, through the products marketing message, to the hardship, poverty or level in society the user is most likely to be in. The poor (generally speaking) don’t wear the title with honor and pride. Reminding them that they are poor and disadvantaged at the point of purchase may only work as long as a competing product that tells them they can be superstars doesn’t exist. Here are two thoughts that are stirred in me whenever I travel to rural areas:

The customer social enterprises seek to convert may be in a disadvantaged situation or season in their life. If your messaging speaks to them as such, there will be a problem. Rural customers, especially those towards the bottom of the economic pyramid, don’t necessarily view themselves as poor. They make sophisticated financial planning decisions all the time trading-off performance against running cost and cost of acquisition against status quo. Speak to the job they are trying to get done and the aspirations they carry or your business will be on the wrong end of the trade-off.

Price isn’t everything in Africa. Ask Airtel, they have found out the hard way. Features you think matter to users may be of little consequence when held up against alternatives. Equity Bank grew rapidly as word of mouth spread about their easy-to-access credit and easy-to-open bank accounts resulting in acquisition of customers previously classified as ‘unbankable’; long queues in banking halls and at the ATMs notwithstanding. Spending a little time (at the very least) with customers and listening to their story may provide you with clues on what they need to get done and how pressing the need for a solution is. The intensity of your customer’s pain dictates the value trade-offs they are willing to make.

A customer only experiences pain because they are trying to get something done without the level of success they consider acceptable. Innovations that have succeeded in Africa have empowered customers not disempowered them. Our next posts will delve a little deeper into this.

Participants at our workshop at Strathmore University

This past week the Semacraft team was at Strathmore University holding a workshop for the MSc Telecommunications Innovation (Safaricom Academy) students on designing apps for the mass market in Africa. We are grateful to iLabAfrica for making the event possible.

It’s always great being at Strathmore University, the campus has a great sense of And the students have great energy. Our workshop was based on Semacraft’s basic innovation model called p5 which starts with people and keeps the user at the center of the innovation process throughout the service design lifecycle. A key part of the model requires the innovator to identify personas in their market who they would plan to address. It was impressive the number of personas the participants were able to come up with, some who are well represented throughout the planet’s growth markets. The potential for new disruptive ideas does lie among our young innovators. At Semacraft we look forward to being part of the process that brings to the surface the next generation of ideas that change the way people live and work in Africa.

This workshop was the first in a series designed to equip developers with better skills in business design and improve the quality of ideas launched by young tech innovators in East Africa. The workshop series will culminate in the launch of a handbook later in the year. The next workshop will also be at a Kenyan university later this month. Follow us on Twitter to stay updated.

Kenya's open data portal at opendata.go.ke

In the early days of the Obama administration, the idea of open data was transitioned from lofty ideal to a reality pushing huge amounts of government-held data onto public portals. What started in the US, however, became a global process. Many governments have since committed themselves to provide data to their citizens through similar portals and to abide by the principles of open government.

This coming June, Kenya will celebrate one year of open data and a portal that has grown to over 220 datasets and a total of 500 data elements (datasets, documents, charts etc). A number of interesting mobile and web apps have been created that utilize the data such as MedAfrica. Although there have been signs of some cool apps, the number of apps I expected one year on haven’t quite materialized. However, 12 months is a short time and the next couple of years could very well see the rise of novel applications and highly innovative ways of communicating public data to citizens or using it to add value to commercial apps.

Now that the government is publishing data online and will continue to do so as legislation is enacted to further reinforce this, what’s next? I say MORE DATA. Not just government data. It’s time for corporate big data to join the party. The private sector has a wealth of data gathered everyday from citizens around the country. The level of intelligence contained in corporate data is so vast, fresh and detailed I’m certain the staff at the national bureau of statistics salivate at the thought of getting their hands on it. So do local small businesses and start-ups. Although the data held by a single corporate entity on its customers may be detailed and extremely valuable, it becomes even more valuable when taken together with data from other corporate entities. Taken together with public open data, this data is priceless.

Corporate open data could have immense impact on consumer/citizen facing organizations in both for-profit and non-profit sectors. Here are some possibilities that come to mind

1. Banking data e.g. insights into average deposit size by county, number of business accounts, penetration of banking services by geographic location and population (percentage of population with bank accounts).
2. Consumer goods sales e.g data on consumption of goods by location, trends, average price of most popular product type.
3. Telecommunications e.g. Airtime sales by location, average size of airtime purchase, average call length by location, average number of text messages per person by location, number of subscribers accessing the internet via mobile or via other devices etc
4. Disease prevalence e.g. data from private healthcare facilities could provide additional information on number of cases diagnosed by disease, location and trends beyond the diseases that are most commonly observed at public facilities.

In an age where information is king, helping communities empower themselves and turn their fortunes around requires access to the right information. Information that allows them to understand why their counties attract low investment, or whether they have the infrastructure to leverage for economic development, or what their political leaders can do to improve their quality of life. The answers to these and many other questions lie not just in government data but in corporate data as well.

Empowering citizens to become more active in their own governance is a key principle of open government and one which open data reinforces well. Empowered citizens make empowered customers and (I’m pretty certain) makes for good business somehow. It is possible that corporate social responsibility on this side of the industrial age may include providing data to the public that could help them change their world. Isn’t that a possibility East African businesses should consider investing in just as their governments are doing?

Sindo District Hospital in Western Kenya. source: Flickr - DFID-UK

There’s a health center in my village. I don’t know how many health care workers have been assigned to it, how much money it was allocated in the last fiscal year, how many people it serves or who’s in charge. I don’t know what the mortality rate is in my county or how we measure up when compared to the neighboring counties. If nothing changes, I probably never will.

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PIVOT25 - Nairobi, Kenya. 14 - 15th June, 2011

PIVOT25 is East Africa’s first mobile developer challenge and conference. Happening on the 14 & 15th of June, 2011 the event enjoys the support of Nokia, the World Bank’s infoDev, Google, DEMO and Equity Bank among others. The winner of the challenge will get an opportunity to pitch at DEMO in September 2011. See the press release here.

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