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This article highlights the need for collaboration and technology in addressing global poverty. It discusses the impact of technology on programs, the substantial gap in IT resources, and the importance of collaborative efforts among nonprofits. The article also introduces NetHope, an IT collaboration program, and emphasizes the need for a new business model that prioritizes mission over competitive advantage.
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The Last 100 KilometersLeveraging ICT for Development September 23, 2008 Edward Granger-Happ CIO, Save the Children Chairman, NetHope Executive Fellow, Tuck/Dartmouth
Four take-aways • The Need and Opportunity are Huge • Technology matters • The Gap is Substantial • We must Collaborate or Perish
World population is growing Source: U.S. Census Bureau, International Data Base
Poverty is growing faster Source: The World Bank Group: World Development Indicators
In Africa it’s worse Source: U.S. Census Bureau and World Bank
Donations are growing but it’s not enough Source: The Chronicle of Philanthropy, Oct 26, 2006
A clear and compelling need for building capacity More Effective Impact At Greater Scale Effective, Efficient, Scalable Programs Hiring Training Partnering Processes Standards Advocacy Tools Systems Impact for Quantum Leaps Funding Support 8
Leveraging IT More Strategic Used by Beneficiaries USP Literacy Program; Bolivia Education Program 1. Strategic Applications 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
In US rural communities more children are reading at grade level Source: Save the Children
In Bangladesh PDAs are delivering capacity gains 192,000 Beneficiaries. Source: Save the Children
In Bolivia the gain is 57% Source: Save the Children 18,000 beneficiaries
Nonprofits get by with a fifth (or less) of corp. IT costs 5x 18x 4x 18
Key Conclusion Even if nonprofits tripled IT spending, they would still be playing catch-up for just keeping the lights on. 19
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...
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
NetHope – IT Collaboration that Works • The Power of Collaboration
Programs for Improving Humanitarian Productivity NetHope Program Goal Improve communications infrastructure that supports field workers and local communities Connectivity Improve emergency response by supporting cross-NGO relief communications and solutions Emergency Relief Services Improve skills and effectiveness of field workers Field Capacity Improve internal operations capabilities and efficiencies Shared Services Innovation for Development Improve program delivery of healthcare, education, agriculture and natural resource management
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.
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
A new business model Beneficiaries Emerging Entrepreneurial Communities Trust NGOs Corp’s Emerging Organizations Emerging Markets Trust
Four take-aways • The Need and Opportunity are Huge • Technology matters • The Gap is Substantial • We must Collaborate or Perish
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
Our business is delivering programs that have impact ClientsBeneficiaries How do we Grow impact? ResultsImpact ProductsPrograms DonorsRevenue 33
An interesting relationship between connectivity and poverty U.S. Census Bureau and Telegeography Global Bandwidth report
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.
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.
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.