IT as a Tool for Growth

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MEGATREND #4_IT As a Tool for Growth and Development

IN A "FLAT" WORLD, technology has the power to help people in developing nations leapfrog into new economic opportunities. But first, they must gain access to basic infrastructure, higher levels of education, and affordable technology tools. Numerous public/private partnerships are addressing the ways in which technology can become more accessible and affordable to impoverished people. And there is hope that the best solutions can be scaled to meet the enormous level of need.

But which technologies and regions offer the greatest opportunities? And are business and government doing enough to capture them? The expansion of technology into developing nations will also pose new challenges for businesses that are under pressure to become more global. For example, beyond the obvious challenges of adapting to new languages, cultures, and legal climates, businesses may be faced with markets characterized by low literacy rates and low disposable income.

The application of technologies developed for Western markets will undoubtedly fail in these environments. How do we adapt these technologies to address the needs of these new business climates? Are there new breakthrough technologies that need to be developed? How can we partner with local researchers and other local resources to develop these solutions?

Thinking beyond simply adapting products and technologies for these new markets, many business visionaries believe that the future of business innovation is in learning from local entrepreneurs in these regions. In his book "The Fortune at the Bottom of the Pyramid," C.K. Parahalad explains that in these economic climates where businesses have to produce quality products at extremely low prices, new business models are being developed that outperform traditional Western business processes. For example, Indian mobile service provider Mittal decided to eschew the Western model of building and maintaining a new cellular wireless network. Instead they outsourced the entire operation of their network to their suppliers and focused their resources on the marketing and customer service.

Over the past year Mittal has achieved the fastest subscriber growth in the history of India, and this innovative business model is being increasingly emulated outside of India. How can we apply such insights to our own vision of the future? Should we resist attempting to generalize these approaches, or will globalization make their spread inevitable in traditional markets?

THE ROLE OF TECHNOLOGY IN GLOBAL COMPETITIVENESS

Technology has erased the boundaries of place and time, giving everyone the theoretical ability to compete. India and China have famously taken advantage of this "flat" environment, leveraging their educated workforces, rapidly improving technological infrastructures, low wage scales, and even their time zones to become important players in the global economy. As this trend continues, work will flow freely to the place where it can be performed most efficiently and productively. And technology will continue to play a central role in the volume and level of work that can be performed on a distributed basis.

What can the technology industry do to further support global competitiveness? How does an organization become truly multinational and "virtual" while retaining its core structure and character? How can we help the poorest and most disenfranchised citizens become active participants in tomorrow´s economy?

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