business solutions for a sustainable world Information and communication technology An enabler for inclusive business solutions Table of contents The growth story of ICT 2 The nexus between ICT and development 2 Examples of ICT-enabled solutions 3 Benefits and lessons learned 10 WBCSD Technology Enablers Initiative 11 Notes and references 12 The growth story of ICT Many factors are driving the rapid diffusion of ICT in emerging countries: the appetite of consumers, constant Not long ago access to information and communication innovation in the industry, increasing availability of networks, technology (ICT) was the privilege of a small minority of and decreasing costs of hardware and software. In fact, the world’s population. ICT has undoubtedly transformed prices for ICT services worldwide are falling while services are the way we live in the developed world: computers are growing, though at different rates: fixed broadband services now found on every office desk, and high-speed internet showed the largest price decline (42% between 2008 and and mobile phones have changed the way in which we 2009), followed by mobile cellular services (25%)4. That communicate, work, shop, and socialize. being said, people in developing countries still have to spend relatively more of their income (17.5%) on ICT services than Since the turn of the century, ICT has transformed the people in developed countries (1.5%)5. developing world, too. Whilst in 2000 more than half of mobile phone users were in the developed world, the balance started shifting around 2005, and in 2011 about The nexus between ICT and three in four users were based in the developing world (see development Figure 1). Today, the largest mobile phone company (by ICT can expand the breadth and depth of economic activity number of subscribers) is China Mobile, with over 600 million in developing economies and improve the delivery of a range customers. of essential public services. Governments of developing countries are therefore making significant investments in the However, not all technologies and services have developed at infrastructure supporting ICT services. For instance, three the same pace. Fixed-line telephony and broadband internet submarine data cables have been installed off the coast subscriptions, for example, have evolved more slowly than of Africa in 2011, a huge investment that has quadrupled mobile phone use in developing countries (see Figure 2). mobile data speeds and cut prices by 90% in connected Some concerns have also been raised that the poorest countries6. For its part, Kenya aims to accelerate socio- countries may be left behind and that a “digital divide” may economic development by becoming a global ICT hub7. be growing. Yet the latest figures from Africa, the world’s poorest continent, are encouraging, in particular with regard In some cases, ICT can help developing countries “leapfrog” to mobile phone connections, which reached over 620 traditional development stages. For example, the spread of million as of September 20111. mobile phones has allowed developing countries to rapidly build a modern communication infrastructure without the This is an important sign, as investment and innovation need to install vast grids of fixed phone lines. to boost mobile penetration have an impact on economic growth. For instance, Indian states with 10% higher mobile Investment in ICT alone is not enough, though. While there is phone penetration see annual growth rates of 1.2% higher a strong link between access to ICT and development, it is not than states with a lower mobile phone density2. a panacea, but rather a powerful tool to tackle development Available: www.itu.int/ITU-D/ict/statistics/ Last accessed 1 December 2011. www.itu.int/ITU-D/ict/statistics/ Available: Source: International Telecommunications Union (2011). ICT Data and Statistics. International Telecommunications 2000 2005 2011 Developing Developed Developing Developed Developed Developing Figure 1 Mobile-cellular Total 719 million subscriptions, by level of Total 2.2 billion development Total 6 billion 2 challenges. Both access to ICT and the way in which technology is used have an impact on development. Solutions must be adapted to the local context and support services available. For What is ICT? instance, providing computers to schools in remote areas does not necessarily foster education. Success depends on a broader Information and communication set of factors including reliable and affordable electricity power, technology (ICT) is an umbrella maintenance support, and teachers8. term and consists of all technical Examples of ICT-enabled solutions means used to handle information Market experience shows that access to technology drives and aid communication, including private sector activity and innovation by local entrepreneurs computer and network hardware, and SMEs. In turn, this opens up new market opportunities and helps to better fulfill the daily needs of customers. communication middleware as well Moreover, technology increases the potential for larger as necessary software. In other words, companies to connect with the poor by increasing the scale it encompasses radio, television, fixed and profitability of their investment. This creates opportunities not just for large technology service providers, but also for and cellular phones, computers and companies in other sectors that serve the poor as consumers, networks, satellite systems and so on, engage low-income entrepreneurs in their supply chains, or as well as the various services and work with governments or other institutions to deliver key public goods and services. applications associated with them. This definition informs our discussion For companies seeking to implement ICT-enabled in this report3. ventures, the key challenge they face is oftentimes not in the technology in itself, but in finding the appropriate commercial model, and ensuring that all participants derive clients and customers and on the supply side as employees, some value. This includes weighing the costs and benefits of producers, and business owners. different types of technologies, for example the use of smart phones versus more basic devices. Table 1 provides some examples of solutions across sectors and along the value chain. They are a mixture of commercial and In the following pages, we present a number of case studies more philanthropic activities using technology. The list should that highlight the power of ICT-enabled solutions. Many not be seen as exhaustive. As the sector develops further and of these exemplify inclusive business models, i.e. business new technologies and standards emerge, new opportunities to ventures that engage the poor on the demand side as leverage technology will become available. Global ICT developments, 2001-2011* 100 90 Mobile-cellular telephone subscriptions 80 Internet users Fixed telephone lines 70 Active mobile-broadband subscriptions Per 100 inhabitants Fixed (wired)-broadband subscriptions 60 50 40 30 Figure 2 20 Global ICT development, 2001-2011 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* International Telecommunications Union (2011). ICT Data and Statistics. International Telecommunications Available: www.itu.int/ITU-D/ict/statistics/ Last accessed 1 December 2011. www.itu.int/ITU-D/ict/statistics/ Available: Source: * estimate. 3 Table 1: Some examples of ICT-enabled solutions across sectors and along the value chain Government Emergency Water and Banking and services Agriculture Food Health Education response energy insurance & crowdvoicing Patient data, Criminal intelligence Seed distribution, Impact resulting Water quality, tree Remote data collection Food availability medical supply Market analysis data, population crop levels from emergency planting inventory surveys and ID Availability and Access to market Customer Arrival of Customer usage of online Awareness of local Education & awareness raising Medical reminders Population alerts prices, weather information emergency supplies information educational events/issues materials Alert and Communication and Teacher training, Field agents Coordination of Health worker coordination Customized ATM Election training Customer service online educational capacity distribution network capacity systems, online machines participation/ results communities (two-way dialogue) bulletin boards Hunger and Patient compliance Threat- and risk- Sustainability Mobile portfolio Security monitoring, Analysis and reporting Crop levels malnutrition analysis analysis mapping analysis analysis management trends analysis Disaster Tracking GPS data, plant Human diseases, Geospatial mapping Peace incidents, assessments, supply Geo-marketing diseases medicine delivery of water sources security monitoring (geographic information) chain management Supply chain management, tracking food Automatic detection vouchers Family reunification, Remote services, incl. last mile Mobile banking and e-government, of plant diseases, Patient diagnostic job opportunities, Metering payments m-government and security of information irrigation need fundraising 4 Government Emergency Water and Banking and services Agriculture Food Health Education response energy insurance & crowdvoicing Patient data, Criminal intelligence Seed distribution, Impact resulting Water quality, tree Remote data collection Food availability medical supply Market analysis data, population crop levels from emergency planting inventory surveys and ID Availability and Access to market Customer Arrival of Customer