Transcript The Last 100 Kilometers Leveraging ICT for Development September 23, 2008 Edward Granger-Happ CIO, Save the Children Chairman, NetHope Executive Fellow, Tuck/Dartmouth.

The Last 100 Kilometers
Leveraging ICT for Development
September 23, 2008
Edward Granger-Happ
CIO, Save the Children
Chairman, NetHope
Executive Fellow, Tuck/Dartmouth
Four take-aways
1.
2.
3.
4.
The Need and Opportunity are Huge
Technology matters
The Gap is Substantial
We must Collaborate or Perish
2
1. The need and the opportunity
3
World population is growing
World Population - 1990-2010
Average Grow th Rate Per Year: 1.3%
7,000,000,000
6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
0
90
9
1
92
9
1
94
9
1
96
9
1
Source: U.S. Census Bureau, International Data Base
98
9
1
00
0
2
02
0
2
04
0
2
06
0
2
08
0
2
10
0
2
4
Poverty is growing faster
People Living on Less than $2/day (millions)
Average Grow th Rate Per Three Years (Excluding China): 4.5%
3,000
2,500
2,000
1,500
1,000
500
0
1981
Total
1984
1987
1990
1993
Excluding China
Source: The World Bank Group: World Development Indicators
1996
1999
2001
Linear ( Excluding China
)
5
In Africa it’s worse
Sub-Saharan Africa-Population vs. Poverty (living
on less than $2/day) (in millions)
Average Population Grow th Per Three Years: 10.7%
Average Grow th in Poverty Rate Per Three Years: 8.7%
800
600
400
200
0
1981
Population
1984
1987
Poverty
Source: U.S. Census Bureau and World Bank
1990
1993
1996
Linear (Population)
1999
2001
Linear (Poverty)
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Donations are growing but it’s not enough
Total $$ Raised by the Philanthropy 400 Charities
(in billions)
$$ in billions
Average Grow th Rate Per Year: 7.3%
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$0.00
1997
1998
1999
2000
Source: The Chronicle of Philanthropy, Oct 26, 2006
2001
2002
2003
2004
2005
7
A clear and compelling need for building capacity
More Effective Impact
At Greater Scale
Standards
Processes
Tools
Advocacy
Partnering
Training
Hiring
Effective, Efficient, Scalable Programs
Systems Impact for Quantum Leaps
Funding Support
8
2. Technology Matters
9
More Strategic
Leveraging IT
1.
Strategic
Applications
Used by
Beneficiaries
USP Literacy
Program; Bolivia
Education Program
2. Program Delivery:
Work Flow Applications
SCM, GMS, GetActive, New RE, etc.
3. Revenue/Donation Delivery:
Work Flow Applications II
GMS, GetActive, DMS, etc.
4. Infrastructure:
“Keeping the Lights On”
Desktop PC’s, Email, Internet, Servers, Communications, NetHope
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In US rural communities more children are reading at grade level
Children Reading at Grade Level-% change
from Beginning to End of School Year
5.5%
6%
5%
5%
4%
4%
3%
2%
1%
0%
% change-2004
Source: Save the Children
% change-2005
% change-2006
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Jones Fork Elementary School Mousie, KY
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In Bangladesh PDAs are delivering capacity gains
Comparison of Three Processes
For Food Distribution
39% Efficiency gain from Manual to PDA Process
250
192,000
Beneficiaries.
200
200
150
164
144
100
50
0
Source: Save
the Children
Manual only process-8
hr day
Manual+laptop
process-8 hr day
PDA process-8 hr day
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Food distribution center in Bangladesh
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In Bolivia the gain is 57%
Minutes Expended for Transcription Per
Beneficiary Per Month
57% Efficiency Gain using PDAs
0.500
0.460
0.400
0.300
0.197
0.200
0.100
0.000
Manual
Source: Save
the Children
18,000 beneficiaries
PDA
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Bolivia Food Distribution Records
16
3. The Gap is Substantial
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Nonprofits get by with a fifth (or less) of corp. IT costs
Average IT Spend per Seat
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
5x
18x
4x
Small NGO
Large NGO NetHope
Members
Corporate No. America
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Key Conclusion
Even if nonprofits tripled IT spending, they
would still be playing catch-up for just
keeping the lights on.
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Non Profit IT Departments Can’t Play the Odds
IF
• 57% of ERP projects don't realize their
ROI (Nucleus Research)
• 66% IT projects fail (Standish Chaos DB)
• NGOs spend a 18th what corporations do
(Tuck survey)
• And we are spending donors’ dollars
THEN
• We must find a better way...
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4. Collaborate or Perish
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What else is possible for nonprofits?
• Collaborate or Perish (a small NGO list)
– Shared consulting/support
– Shared web/file server hosting & backup
– Shared fundraising systems guru
– Shared technology procurement
– Shared technology training
The operative word here is Shared
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NetHope – IT Collaboration that Works
23
•
The Power of Collaboration
Programs for Improving Humanitarian Productivity
NetHope Program
Goal
Connectivity
Improve communications infrastructure
that supports field workers and local
communities
Emergency Relief
Services
Improve emergency response by
supporting cross-NGO relief
communications and solutions
Field Capacity
Improve skills and effectiveness of field
workers
Shared Services
Improve internal operations capabilities and
efficiencies
Innovation for
Development
Improve program delivery of healthcare,
education, agriculture and natural resource
management
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What do we need from our partners?
• The leading corporations get the idea that
emerging markets need a new, non-western
business model.
• The big idea is to now apply this same radical
thinking to nonprofits.
• Nonprofits are the local emerging country
• To leverage our expertise, we need to stop
thinking of NGOs as a corporation
• We are about mission, not competitive advantage.
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The ADP Business Model
• Employee contributes 50% of salary for six
months
• Nonprofit pays 25 cents on the dollar for
consulting projects
• Accenture makes up the difference
• Everybody has skin in the game, and it’s a
sustainable economic model, not a hand-out
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A new business model
Beneficiaries
Emerging
Entrepreneurial
Communities
Trust
NGOs
Emerging
Organizations
Corp’s
Trust
Emerging
Markets
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Four take-aways
1.
2.
3.
4.
The Need and Opportunity are Huge
Technology matters
The Gap is Substantial
We must Collaborate or Perish
28
Questions?
Appendices
30
A story from Zaire
“The tree the tempest
with a crash of wood
Throws down in front of
us is not to bar
Our passage to our
journey's end for good,
But just to ask us who
we think we are.”
–Robert Frost
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A Bias for Action
32
Our business is delivering programs that have impact
Clients
How do we
Grow
impact?
Beneficiaries
Results
Products
Impact
Programs
Donors
Revenue
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An interesting relationship between connectivity and poverty
For Most Regions Increasing Bandwidth
120
100
80
60
40
20
0
Bandwidth
1,200
1,000
800
600
400
200
0
So
ut
h
U.S. Census Bureau
and Telegeography
Global Bandwidth
report
Su
As
bia
Sa
ha
ra
n
La
Af
tin
ric
Am
a
er
ica
&
Ca
Eu
rib
ro
b.
..
pe
&
Ce
nt
ra
lA
si
a
Popluation < $2/day
is correlated with decreasing poverty
2001 Population
GBPS
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Connectivity is Foundational
•
•
•
Network infrastructure: NetHope
Connecting the field workers (inward)
Connecting the poor (outward)
–
–
Bangladesh - pay cell phone cottage
industry that Muhammad Yunus’
Grameen Bank has incubated among
poor women
Costa Rica - elimination of fraud by
connecting farmers to the on-line port of
export prices.
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Conclusion
Technology is a key capacity building
service for effective communications,
operations and strategic impact on poverty
in the world as it moves the last 100
kilometers, from organization facing to
beneficiary facing applications.
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What can we do?
• There is a clear and compelling need for
greater effectiveness, efficiency, and
capacity building.
• Scaling up: what capacity building do we
need to overcome poverty growth?
• Technology is required for these quantum
leaps in impact.
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