Innovation adoption in rural areas: mobile internet in dwindling information gap

How can innovation in information technology be extended to cover not only its richness but also its reach characteristic?
The key here is that the transformation of technology platform from:
1. Products that need significant amount of learning to product less need of learning
2. Product having ‘higher’ price to ‘lower’ price (massive scale of economies)
3. Product that can be economically attractive enough (through its installed and network based) for companies to extend

As an example is the spread use of internet through mobile phone. At a decade ago (i.e. 1990s and early 2000s), when the use of internet was solely mediated through PC/Laptop with cable from the network operator, the digital divide issue was coined intensively and efforts to dwindle such gap were concentrated on the enlargement of wiring network infrastructure. The dominant users of the internet were supposed to be those in the middle class income or those opportune enough to be provided such information at their office.

Nicholas Negroponte, seeing the impact of the digital device on the lag knowledge for those living in poor countries or rural areas, introduced the OLPC (one laptop per child) enabling the next generation to be familiar with the information technology start up kit.

The revolution of mobile phone penetrates not only on the way people connect to each other, but also on the provision of information. The price of mobile phones, first introduced with over $ 1,000 each, has rapidly plunged to a range of $ 30. This price is affordable for rural communities. Not only the price is reduced, but the service is extended to the provision of information such as via mobile internet, with a reasonable price. The extension benefits not only those who has the ability to pay for information access both through mobile and wiring technology, but also for people who never think about the internet, let alone to use it.

Why the mobile internet can become or will become even effective in dwindling the digital divide. By looking at the three factors above, it can be seen that in comparison with the PC or laptop, the mobile phone is relatively straightforward in its function. It is solely tailored for communication but also can be extended for accessing information. Because its function is simple yet flexible enough, a mass scale adoption could be spread for wide range of communities, at cities, urban and rural areas.

With such opportunity, telecom operator is encouraged to invest on larger network by installing Base Transmission Station (BTS) in urban and rural areas. This installed base platform convinces mobile phone makers to introduce low cost mobile phones that can be absorbed by communities in rural areas.

Innovation and Sustainability: Nissan attempts to promote electric vehicles

In the world where people are becoming aware of the impact of global warming, the demand on cleaner and environmental friendly products has pushed automakers to engage in research and development of greener vehicles.

The attempt is not baseless. Information on climate changes, global warming and pollution covered by the media have changed people’s attitude in perceiving environmental issues as crucial subjects even from now. Saving the planet earth is not only a matter of preserving the planet from further disasters but also as a cognizance in promoting social values and responsibilities.

With the price of oil hovering beyond the psychological barrier of 100 dollar per barrel, efforts in commercializing more energy efficient vehicles which do not rely on fossil fuels are emerging. Relying on fossil fuel as the energy sources will not ensure environmental sustainability even if new materials allowing a car to be lighter and has better fuel efficiency are discovered. Excessive demand as a result of improving income is the major reason that such effort will become useless in the future.

As these issues progress, companies are attempting to come up with better solutions to anticipate the possible enactment of environmental regulations. It is obvious that from several options, electric vehicle appears to be the prospective choice for automakers along with hybrid vehicle. Electric vehicle is considered to be the most feasible solution to reduce oil consumption for transportation usages. The vehicle can be plugged in for power. The owner does not have to go to the gas station to fuel the car. The environment will be cleaner since CO2 pollution is reduced. At the same time the business facts suggest on the cons side. While operating electric vehicle seems to be straightforward and economically viable, current sales of the electric vehicle do not seem to be promising. Lack of speed and lengthy time to fuel the car are the main reason hampering the adoption of electric vehicle. California is the only place where electric vehicles are becoming popular.

Zero emission cars, particularly electric vehicle, are perceived to be the trajectory of the car future by Nissan. The company believes that urban people as the major user of the car will shift their preferences to greener cars as the oil price becomes unpredictable. To anticipate this possibility, Nissan and Renault tied up together to develop their first electric car in Israel. It is anticipated that the product can be launched to the market by 2011.

On the other hand, hybrid car is believed to be the dominant platform of the future car. Unlike what Nissan and Renault do, Toyota conceives hybrid car as the future trajectory where the need of a car running at ‘normal’ speed combined with the necessity to preserve the environment intersects at a point called a greener car. Other companies such as Proton capture a different track by promoting biofuel car.

Different tracks on the development of zero emission vehicles make Nissan aware that innovation is currently under the transient phase. On this phase, different technologies exist and each of them is battling to become a dominant platform. While the electric car is the most prevalent prospect seen by Nissan, there is no guarantee that efforts in promoting electric vehicle will turn the competition into an electric vehicle platform. To tackle this issue, Carlos Ghosn, Nissan CEO, iterated that the company is pursuing different technologies to avoid abrupt changes in the trajectory.

Leveraging other technologies during the transient phase is essential to avoid the Not Invented Here (NIH) syndrome undertaken by companies thinking their technologies will become the dominant design. Once other tracks emerge and escalate, companies under NIH syndrome will not be prepared to deploy the emerging technology nor have sufficient time to catch up with those maturing in the trajectory.

Nissan has anticipated different routes in the transient phase to avoid the NIH problem. The company also expands it capabilities beyond electric vehicle to avoid the lock out problem. We will see whether the electric car will become a dominant design in the future. But at least we know that companies such as Nissan and Renault have prepared the capabilities ready to be deployed once different trajectories against their projection emerge.